(1) 183 to decline to issue any contract of insurance or reinsurance, or any guaranty, or to enter into any agreement to provide financing for an eligible investor's proposed investment if the Corporation determines that such investment is likely to cause a significant reduction in the number of employees in the United States;

(m) 184 to refuse to insure, reinsure, or finance any investment subject to performance requirements which would reduce substantially the positive trade benefits likely to accrue to the United States from the investment; and

(n) 185 to refuse to insure, reinsure, guarantee, or finance any investment in connection with a project which the Corporation determines will pose an unreasonable or major environmental, health, or safety hazard, or will result in the significant degradation of national parks or similar protected areas. Sec. 231A.186 Additional Requirements. (a) WORKER

RIGHTS.

(1) LIMITATION ON OPIC ACTIVITIES.-The Corporation may insure, reinsure, guarantee, or finance a project only if the country in which the project is to be undertaken is taking steps to adopt and implement laws that extend internationally recognized worker rights, as defined in section 502(a)(4) of the Trade Act of 1974 (19 U.S.C. 2462(a)(4)), to workers in that country (including any designated zone in that country). The Corporation shall also include the following language, in substantially the following form, in all contracts which the Corporation enters into with eligible investors to provide financial support under this title: 187

"The investor agrees not to take actions to prevent employees of the foreign enterprise from lawfully exercising their right of association and their right to organize and bargain collectively. The investor further agrees to observe applicable laws relating to a minimum age for employment of children, acceptable conditions of work with respect to minimum wages, hours of work, and occupational health and safety, and not to use forced labor. The investor is not responsible under this paragraph for the actions of a foreign government."

(2) USE OF ANNUAL REPORTS ON WORKERS RIGHTS.-The Corporation shall, in making its determinations under paragraph (1), use the reports submitted to the Congress pursuant to section 505(c) of the Trade Act of 1974 (19 U.S.C. 2465(c)). The restriction set forth in paragraph (1) shall not apply until the first such report is submitted to the Congress.

183 This subsection was added as subsec. (n) by sec. 2(4) of Public Law 95-268 (92 Stat. 213), and redesignated as subsec. (1) by sec. 2(5) of the same Act.

184 Subsec. (m) was added by sec. 2(3XC) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021).

185 Sec. 4(aX4) of the OPIC Amendments Act of 1985 (Public Law 99-204; 99 Stat. 1669) added subsec. (n).

186 22 U.S.C. 2191a. Sec. 231A was added by sec. 5(a) of the OPIC Amendments Act of 1985 (Public Law 99-204; 99 Stat. 1670). Sec. 5(b) of the Act provides that sec. 231A(a) "shall not apply to projects insured, reinsured, guaranteed, or financed before the date of the enactment of this Act.".

187 Sec. 102(a) of the Jobs Through Exports Act of 1992 (Public Law 102-549; 106 Stat. 3651) added the last sentence, including the language required in contracts, to sec. 231A(aX1).

(3) WAIVER.-Paragraph (1) shall not prohibit the Corporation from providing any insurance, reinsurance, guaranty, or financing with respect to a country if the President determines that such activities by the Corporation would be in the national economic interests of the United States. Any such determination shall be reported in writing to the Congress, together with the reasons for the determination. 188

(4) 189 In making a determination under this section for the People's Republic of China, the Corporation shall discuss fully and completely the justification for making such determination with respect to each item set forth in subparagraphs (A) through (E) of section 502(a)(4) of the Trade Act of 1974.

(b) PUBLIC HEARINGS.-The Board shall hold at least one public hearing each year in order to afford an opportunity for any person to present views as to whether the Corporation is carrying out its activities in accordance with section 231 and this section or whether any investment in a particular country should have been or should be extended insurance, reinsurance, guarantees, or financing under this title.

Sec. 232.190 Capital of the Corporation.-The President is authorized to pay in as capital of the Corporation, out of dollar receipts made available through the appropriation process from loans made pursuant to this part and from loans made under the Mutual Security Act of 1954, as amended, for the fiscal year 1970 not to exceed $20,000,000 and for the fiscal year 1971 not to exceed $20,000,000. Upon the payment of such capital by the President, the Corporation shall issue an equivalent amount of capital stock to the Secretary of the Treasury.

Sec. 233.191 Organization and Management. (a) STRUCTURE OF THE CORPORATION.-The Corporation shall have a Board of Directors, a President, an Executive Vice President, and such other officers and staff as the Board of Directors may determine.

(b) BOARD OF DIRECTORS.-All powers of the Corporation shall vest in and be exercised by or under the authority of its Board of Directors ("the Board") which shall consist of fifteen Directors, 192 including the Chairman, with eight Directors 193 constituting a quorum for the transaction of business. The Administrator of the Agency for International Development shall be the Chairman of the Board, ex officio. 194 The United States Trade Representative shall

188 The President determined "that the waiver of section 231A(aX1) with respect to Nicaragua, permitting the Overseas Private Investment Corporation to insure, reinsure, guaranty, and fi nance projects in Nicaragua, is in the national economic interests of the United States." (Presidential Determination 90-24 of June 21, 1990; 55 F.R. 27631).

189 Sec. 231A(aX4) was added by sec. 2203(c) of Public Law 100-418 (102 Stat. 1328). Sec. 902(aX1) of the Foreign Relations Authorization Act, Fiscal Years 1990 and 1991 (Public Law 101-246; 104 Stat. 83) continued a suspension of OPIC's issuing new insurance, reinsurance, guarantees, financing, or other financial support to the People's Republic of China until the President reported to the Congress under subsec. (b) of that sec. that China had made certain political reforms, or that such assistance was in the national interest of the United States. For text of sec. 902, see Legislation on Foreign Relations Through 1994, vol. II, sec. D. 190 22 U.S.C. 2192. Sec. 232 was added by sec. 105 of the FA Act of 1969. 19122 U.S.C. 2193. Sec. 233 was added by sec. 105 of the FA Act of 1969.

192 The number of Directors was increased from 11 to 15 by sec. 3(aX1) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021), effective Oct. 1, 1981.

193 The number of Directors was increased from six to eight by sec. 3(a) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021), effective Oct. 1, 1981.

194 This function of the Administrator was transferred to the Director of IDCA, pursuant to sec. 6 of Reorganization Plan No. 2 of 1979 (establishing IDCA).

be the Vice Chairman of the Board, ex officio, except that the United States Trade Representative may designate the Deputy United States Trade Representative to serve as Vice Chairman of the Board in place of the United States Trade Representative. 195 Eight Directors 193 (other than the President of the Corporation, appointed pursuant to subsection (c) who shall serve as a Director ex officio) 196 shall be appointed by the President of the United States, by and with the advice and consent of the Senate, and shall not be officials or employees of the Government of the United States. At least two of the eight Directors 197 appointed under the preceding sentence shall be experienced in small business, one in organized labor, and one in cooperatives. Each such Director shall be appointed for a term of no more than three years. The terms of no more than three such Directors 198 shall expire in any one year. Such Directors shall serve until their successors are appointed and qualified and may be reappointed.

The other Directors shall be officials of the Government of the United States, including an official of the Department of Labor, 199 designated by and serving at the pleasure of the President of the United States.

All Directors who are not officers of the Corporation or officials of the Government of the United States shall be compensated at a rate equivalent to that of level IV of the Executive Schedule (5 U.S.C. 5315) 200 when actually engaged in the business of the Corporation and may be paid per diem in lieu of subsistence at the applicable rate prescribed in the standardized Government travel regulations, as amended, from time to time, while away from their homes or usual places of business.

(c) PRESIDENT OF THE CORPORATION.-The President of the Corporation shall be appointed by the President of the United States, by and with the advice and consent of the Senate, and shall serve at the pleasure of the President. In making such appointment, the President shall take into account private business experience of the appointee. The President of the Corporation shall be its Chief Executive Officer and responsible for the operations and management of the Corporation, subject to bylaws and policies established by the Board.

(d) OFFICERS AND STAFF.-The Executive Vice President of the Corporation shall be appointed by the President of the United States, by and with the advice and consent of the Senate, and shall serve at the pleasure of the President. Other officers, attorneys, employees, and agents shall be selected and appointed by the Corporation, and shall be vested with such powers and duties as the Corporation may determine. Of such persons employed by the Cor

196 This sentence was added by sec. 3(aX2) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021), effective Oct. 1, 1981.

196 The words "ex officio" were added by sec. 3(a)5) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1022), effective Oct. 1, 1981.

197 The number of Directors was increased from one of the six to two of the eight by sec. 3(a) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1022), effective Oct. 1, 1981. 198 The number of Directors was increased from two to three by sec. 3(a)(3) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1022), effective Oct. 1, 1981.

199 The reference to an official of the Department of Labor was added by sec. 3(b) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1022), effective Oct. 1, 1981.

200 The current rate of compensation at level IV of the Executive Schedule is $115,700 per annum (Executive Order 12826, 57 F.R. 62909, December 31, 1992).

poration, not to exceed twenty may be appointed, compensated, or removed without regard to the civil service laws and regulations: Provided, That under such regulations as the President of the United States may prescribe, officers and employees of the United States Government who are appointed to any of the above positions may be entitled, upon removal from such position, except for cause, to reinstatement to the position occupied at the time of appointment or to a position of comparable grade and salary. Such positions shall be in addition to those otherwise authorized by law, including those authorized by section 5108 of title 5 of the United States Code. Sec. 234.201 Investment Insurance and Other Programs.202_The Corporation is hereby authorized to do the follow

ing:

(a) 2 203 INVESTMENT INSURANCE. (1) To issue insurance, upon such terms and conditions as the Corporation may determine, to eligible investors assuring protection in whole or in part against any or all of the following risks with respect to projects which the Corporation has approved

(A) inability to convert into United States dollars other currencies, or credits in such currencies, received as earnings or profits from the approved project, as repayment or return of the investment therein, in whole or in part, or as compensation for the sale or disposition of all or any part thereof;

(B) loss of investment, in whole or in part, in the approved project due to expropriation or confiscation by action of a foreign government;

(C) loss due to war, revolution, insurrection or civil strife; and 204

(D) 205 loss due to business interruption caused by any of the risks set forth in subparagraphs (A), (B), and (C).

(2) 206 Recognizing that major private investments in less developed friendly countries or areas are often made by enterprises in which there is multinational participation, including significant United States private participation, the Corporation may make arrangements with foreign governments (including agencies, instru

20122 U.S.C. 2194. Sec. 234 was added by sec. 105 of the FA Act of 1969.

202 Sec. 2(2XA) of the OPIC Amendments Act of 1974 (Public Law 93-390) inserted section title "Investment Insurance and Other Programs" in lieu of "Investment Incentive Programs". 203 Sec. 5(bX2) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1023) provided:

"(2) The authority of the Overseas Private Investment Corporation to enter into contracts under section 234(a) of the Foreign Assistance Act of 1961 shall be effective for any fiscal year beginning after September 30, 1981, only to such extent or in such amounts as are provided in appropriation Acts.".

204 The reference to civil strife was added by sec. 4(aX1) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1022).

205 Sec. 6(aX1XD) of the OPIC Amendments Act of 1985 (Public Law 99-204; 99 Stat. 1671) added subpar. (D)

206 Subsec. (aX2) was amended by sec. 2(2XB) of the OPIC Amendments Act of 1974 (Public Law 93-390). It formerly read as follows: "(2) Recognizing that major private investments in less developed friendly countries in areas are often made by enterprises in which there is multinational participation, including significant United States private participation, the Corporation may make such arrangements with foreign governments (including agencies, instrumentalities, or political subdivisions thereof) or with multilateral organizations for sharing liabilities assumed under investment insurance for such investments and may in connection therewith issue insurance to investors not otherwise eligible hereunder: Provided, however, That liabilities assumed by the Corporation under the authority of this subsection shall be consistent with the purposes of this title and that the maximum share of liabilities so assumed shall not exceed the proportionate participation by eligible investors in the total project financing.".

mentalities, or political subdivisions thereof) or with multilateral organizations and institutions for sharing liabilities assumed under investment insurance for such investments and may in connection therewith issue insurance to investors not otherwise eligible hereunder, except that liabilities assumed by the Corporation under the authority of this subsection shall be consistent with the purposes of this title and that the maximum share of liabilities so assumed shall not exceed the proportionate participation by eligible investors in the project.207

(3) Not more than 10 per centum of the maximum contingent liability 208 of investment insurance which the Corporation is permitted to have outstanding under section 235(a)(1) 209 shall be issued to a single investor.

(4) 210 Before issuing insurance for the first time for loss due to business interruption, and in each subsequent instance in which a significant expansion is proposed in the type of risk to be insured under the definition of "civil strife" or "business interruption", the Corporation shall, at least sixty days before such insurance is issued, submit to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives a report with respect to such insurance, including a thorough analysis of the risks to be covered, anticipated losses, and proposed rates and reserves and, in the case of insurance for loss due to business interruption, an explanation of the underwriting basis upon which the insurance is to be offered. Any such report with respect to insurance for loss due to business interruption shall be considered in accordance with the procedures applicable to reprogramming notifications pursuant to section 634A of this Act. 211

(b) INVESTMENT GUARANTIES.-To issue to eligible investors guaranties of loans and other investments made by such investors assuring against loss due to such risks and upon such terms and conditions as the Corporation may determine: Provided, however, That such guaranties on other than loan investments shall not exceed 75 per centum of such investment: Provided further, That except for loan investments for credit unions made by eligible credit unions or credit union associations, the aggregate amount of investment (exclusive of interest and earnings) so guaranteed with respect to

207 The words "total" and "financing", which previously appeared immediately before and after the word "project", were deleted by sec. 4(aX2) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1022).

Sec. 3(1) of Public Law 95-268 (92 Stat. 214) struck out the following words that previously appeared at this point: "and that the maximum share of liabilities so assumed under paragraph (1) (A) and (B) of paragraph (1XC) shall not exceed the Corporation's proportional share of such liabilities as specified in paragraph (4) or (5) of this subsection.".

208 The words "maximum contingent liability" were substituted in lieu of "total face amount" by sec. 3(2) of Public Law 95-268 (92 Stat. 214).

208 The words "permitted to have outstanding under sec. 235(aX1)" were inserted in lieu of the words "authorized to issue under this subsection" by sec. 4(a)(3) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1022).

210 Pars. (4) through (7), which had been added by the OPIC Amendments Act of 1974 (Public Law 93-390) and had appeared at this point, were struck by sec. 3(3) of Public Law 95-268 (92 Stat. 214). This new par. (4) was added by sec. 4(aX4) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1022). Subsequently, sec. 6(aX2XA) and (B) of the OPIC Amendments Act of 1985 (Public Law 99-204; 99 Stat. 1671) inserted "insurance for the first time loss due to business interruption" in lieu of "civil strife insurance for the first time" and replaced "definition of civil strife" with "definition of 'civil strife' or business interruption".

211 Sec. 6(aX2) (C) and (D) of the OPIC Amendments Act of 1985 (Public Law 99-204; 99 Stat. 1671) added the text from the word "reserves" to the end of para. (4).