not exceed $400,000,000 of contingent liability for loan principal during fiscal year 1987.165

(f) To the extent that any of the funds made available pursuant to subsection (d) are paid out for a claim arising out of liabilities guaranteed under subsection (a), amounts received after the date of such payment, with respect to such claim, shall be credited to the reserve fund referred to in subsection (b), shall be merged with the funds in such reserve, and shall be available for the purpose of payments by the Agency to the Bank for guarantees under subsection (a).

(g) Beginning on a date six months after the date of enactment of this section, and at intervals of six months thereafter, the administrator of the agency primarily responsible for administering part I of this Act and the President of the Export-Import Bank of the United States shall prepare and transmit to the Speaker of the House of Representatives and the Chairman of the Committee on Foreign Relations of the Senate a report on the amount and extension of credits during the preceding six-month period.

(h) The Export-Import Bank shall provide without reimbursement such administrative and technical assistance to the Agency as the Bank and the Agency deem appropriate to assist the Agency in carrying out this section.

Sec. 225.166 Trade Credit Insurance Program for Poland. (a) GENERAL AUTHORITY.

(1) ASSURANCE TO EXPORT-IMPORT BANK OF REPAYMENT.—The President is authorized to provide guarantees to the Bank for liabilities described in paragraph (2) in order to satisfy the requirement of section 2(b)(1)(B) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(B)) that the Bank have reasonable assurance of repayment.

(2) LIABILITIES WHICH MAY BE GUARANTEED.-The liabilities that may be guaranteed under paragraph (1) are liabilities incurred by the Bank in connection with guarantees or insurance provided under the Export-Import Bank Act of 1945 for financing for transactions involving the export of goods and services for the use of the private sector in Poland.

(b) GUARANTEES AVAILABLE ONLY FOR SHORT-TERM GUARANTEES AND INSURANCE.-Guarantees provided under subsection (a) shall be for short-term guarantees and insurance extended by the Bank which shall be repayable within a period not to exceed one year from the date of arrival at the port of importation of the goods and services covered by such guarantees or insurance.

(c) AGREEMENT ON CRITERIA AND PROCEDURES.-Guarantees or insurance extended by the Bank and guaranteed pursuant to subsection (a) shall be provided by the Bank in accordance with criteria and procedures agreed to by the Administrator and the Bank.

(d) RESERVE FUND.-The agreement referred to in subsection (c) shall also provide for the establishment of a reserve fund by the administering agency, with such funds made available to the re

165 Sec. 314 of the International Security and Development Cooperation Act of 1985 substituted the text following the word "Acts," in lieu of the words "not to exceed $300,000,000 in the fiscal year 1985.".

166 22 U.S.C. 2185. Section 304 of the Support for East European Democracy (SEED) Act of 1989 (Public Law 101-179; 103 Stat. 1312) added sec. 225.

serve as the Administrator deems necessary to discharge liabilities under guarantees provided under subsection (a).

(e) DISCHARGE OF LIABILITIES.—

(1) FUNDS WHICH MAY BE USED.-Such amounts of the funds made available to carry out chapter 4 of part II of this Act (relating to the economic support fund) as the President determines are necessary may be made available to discharge liabilities under guarantees entered into under subsection (a).

(2) CREDITING OF SUBSEQUENT PAYMENTS.-To the extent that any of the funds made available pursuant to paragraph (1) are paid out for a claim arising out of liabilities guaranteed under subsection (a), amounts received after the date of such payment, with respect to such claim, shall be credited to the reserve fund established pursuant to subsection (d), shall be merged with the funds in such reserve, and shall be available for the purpose of payments by the Administrator to the Bank for guarantees under subsection (a).

(f) APPROPRIATIONS ACTION REQUIRED.-Commitments to guarantee under subsection (a) are authorized only to the extent and in the amounts provided in advance in appropriations Acts.

(g) LIMITATION ON OUTSTANDING COMMITMENTS.-The aggregate amount of outstanding commitments under subsection (a) may not exceed $200,000,000 of contingent liability for loan principal during any fiscal year.

(h) BIANNUAL REPORTS TO CONGRESS.-Every 6 months, the Administrator and the President of the Bank shall prepare and transmit to the Speaker of the House of Representatives and the Chairman of the Committee on Foreign Relations of the Senate a report on the amount and extension of guarantees and insurance provided by the Bank and guaranteed under this section during the preceding 6-month period.

(i) ADMINISTRATIVE AND TECHNICAL ASSISTANCE.-The Bank shall provide, without reimbursement, such administrative and technical assistance to the administering agency as the Bank and the Administrator determine appropriate to assist the administering agency in carrying out this section.

(j) FEES AND PREMIUMS.-The Bank is authorized to charge fees and premiums, in connection with guarantees or insurance guaranteed by the administering agency under subsection (a), that are commensurate (in the judgment of the Bank) with the Bank's administrative costs and the risks covered by the agency's guarantees. Any amounts received by the Bank in excess of the estimated costs incurred by the Bank in administering such guarantees or in

surance

(1) shall be credited to the reserve fund established pursuant to subsection (d),

(2) shall be merged with the funds in such reserve, and

(3) shall be available for the purpose of payments by the administering agency to the Bank for guarantees under subsection (a).

(k) RESTRICTIONS NOT APPLICABLE.-Prohibitions on the use of foreign assistance funds for assistance for Poland shall not apply with respect to the funds made available to carry out this section.

(1) EXPIRATION OF AUTHORITY.-The President may not enter into any commitments to guarantee under subsection (a) after September 30, 1992.

(m) DEFINITIONS.-For purposes of this section—

(1) the term "administering agency" means the Agency for International Development;

(2) the term "Administrator" means the Administrator of the Agency for International Development; and

(3) the term "Bank" means the Export-Import Bank of the United States.

Title IV-Overseas Private Investment Corporation 167

Sec. 231.168 Creation, Purpose and Policy. To mobilize and facilitate the participation of United States private capital and skills in the economic and social development 169 of less developed friendly countries and areas, thereby complementing the development assistance objectives of the United States, there is hereby created the Overseas Private Investment Corporation (hereinafter called the "Corporation"), which shall be an agency of the United States under the policy guidance of the Secretary of State.

The 170 Corporation, in determining whether to provide insurance, financing, or reinsurance for a project, shall especially

(1) be guided by the economic and social development impact and benefits of such a project and the ways in which such a project complements, or is compatible with, other development assistance programs or projects of the United States or other donors;

(2) give preferential consideration to investment projects in less developed countries that have per capita incomes of $984 or less in 1986 United States dollars, and restrict its activities with respect to investment projects in less developed countries that have per capita incomes of $4,269 or more in 1986 United States dollars (other than countries designated as beneficiary

167 A new title IV was added by sec. 105 of the FA Act of 1969. Prior to this, title IV had been titled "Surveys of Investment Opportunities." For Executive Order concerning OPIC, see page 1028.

Title IV was amended extensively by title I of S. 2757 and title I of H.R. 5263, both enacted by reference in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989 (Public Law 100-461; 102 Stat. 2268):

"SEC. 555. ・・・ Provided further, That title I of H.R. 5263 as passed by the House of Representatives on September 20, 1988, is hereby enacted into law: Provided further, That purchases, investments or other acquisitions of equity by the fund created by section 104 of H.R. 5263 as hereby enacted are limited to such amounts as may be provided in advance in appropriations Acts: Provided further, That notwithstanding any other provision of this Act, titles I and III of S. 2757 as reported by the Senate Committee on Foreign Relations on September 7, 1988, are hereby enacted into law: Provided further, That purchases, investments or other acquisitions of equity by the fund created by section 104 of S. 2757 as hereby enacted are limited to such amounts as may be provided in advance in appropriations Acts:

Except in two instances, title I, S. 2757 and title I, H.R. 5263 are identical. Sec. 106 in each title amended sec. 235(a)(2) of the FA Act of 1961. Sec. 235(a)2) was previously amended by Public Law 100-418, sec. 2203(b)(1)(A); H.R. 5263 took this into account. See page 90. Public Law 100-418, sec. 2203(b)(1)(B) redesignated sec. 235(a)(5) of the FA Act of 1961 as sec. 235(a)(6). Sec. 107 in S. 2757 and H.R. 5263 amended this section, but H.R. 5263 took into account the redesignation by Public Law 100-418. See page 91. Title III of S. 2757, which addresses the implementation of certain USIA Exchange Visitor Programs, is in Legislation on Foreign Relations Through 1991, vol. II, page 849.

168 22 U.S.C. 2191. Sec. 231 was added by sec. 105 of the FA Act of 1969.

169 Sec. 2(1)(A) of the OPIC Amendments Act of 1974 (Public Law 93-390; 83 Stat. 809) substituted "development" in lieu of "progress".

170 This paragraph was added by sec. 2(1) of Public Law 95-268 (92 Stat. 213).

countries under section 212 of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2702)); and 171

(3) 172 ensures that the project is consistent with the provisions of section 117 172 (as so redesignated by the Special Foreign Assistance Act of 1986), section 118, and section 119 of this Act relating to the environment and natural resources of, and tropical forests and endangered species 172 in, developing countries, and consistent with the intent of regulations issued pursuant to sections 118 and 119 of this Act.

In carrying out its purpose, the Corporation, utilizing broad criteria, shall undertake

(a) 173 to conduct financing, insurance, and reinsurance operations on a self-sustaining basis, taking into account in its financing operations the economic and financial soundness of projects;

(b) to utilize private credit and investment institutions and the Corporation's guaranty authority as the principal means of mobilizing capital investment funds;

(c) to broaden private participation and revolve its funds through selling its direct investments to private investors whenever it can appropriately do so on satisfactory terms;

(d) to conduct its insurance operations with due regard to principles of risk management including 174 efforts to share its insurance risks and reinsurance 175 risks;

(e) 176 to the maximum degree possible consistent with its purposes

(1) to give preferential consideration in its investment insurance, reinsurance, and guaranty activities to investment projects sponsored by or involving United States small business; and

(2) to increase the proportion of projects sponsored by or significantly involving United States small business to at

171 The per capita income levels were increased from $896 and $3,887 in 1983 U.S. dollars by sec. 102, of the ÒPIC Amendments Act of 1988, S. 2757, enacted into law by reference in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989 (Public Law 100-461; 102 Stat. 2268). Sec. 102 also added "(other than countries designated as beneficiary countries under section 212 of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2702))". Previously the per capita income levels were increased from $680 and $2,950 in 1979 U.S. dollars to $896 and $3,887 in 1983 U.S. dollars by sec. 3 of the OPIC Amendments Act of 1985 (Public Law 99-204; 99 Stat. 1669), and from $520 and $1,000 in 1975 U.S. dollars to $680 and $2,950 in 1979 U.S. dollars, respectively, by sec. 2(1) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021).

172 Par. (3) was added by sec. 4(aX1XC) of the OPIC Amendments Act of 1985 (Public Law 99204; 99 Stat. 1669). The OPIC Amendments Act of 1988, S. 2757, enacted into law by reference in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989 (Public Law 100-461; 102 Stat. 2268), made a correction to include section 117. S. 2757 also struck out "biological diversity" and inserted in lieu thereof "tropical forests and endangered species".

173 Subsec. (a) was amended by sec. 2(1)(B) of the OPIC Amendments Act of 1974 (Public Law 93-390; 83 Stat. 809). It formerly read as follows: "(a) to conduct financial soundness of projects and the availability of financing from other sources on appropriate terms;".

174 Sec. 2(1)(C) of the OPIC Amendments Act of 1974 (Public Law 93-390) struck the words, "when appropriate," which appeared at this point.

175 Sec. 2(1XC) of the OPIC Amendments Act of 1974 (Public Law 93-390) added the words "and reinsurance".

176 Subsec. (e), as amended by Public Law 93-390, was amended and restated by sec. 2(2) of Public Law 95-268 (92 Stat. 213). It formerly read as follows:

"(e) to give preferential consideration in its investment insurance, financing, and reinsurance activities (to the maximum extent practicable consistent with the Corporation's purposes) to investment projects involving businesses of not more than $2,500,000 net worth or with not more than $7,500,000 in total assets;".

least 30 percent of all projects insured, reinsured, or guaranteed by the Corporation;

(f) 177 to consider in the conduct of its operations the extent to which less developed country governments are receptive to private enterprise, domestic and foreign, and their willingness and ability to maintain conditions which enable private enterprise to make its full contribution to the development process; (g) 177 to foster private initiative and competition and discourage monopolistic practices;

(h) 177 to further to the greatest degree possible, in a manner consistent with its goals, the balance-of-payments and employment 178 objectives of the United States;

(i) 177 to conduct its activities in consonance with the activities of the agency primarily responsible for administering part I and the international trade, investment, and financial policies of the United States Government, and to seek to support those developmental projects having positive trade benefits for the United States; 179

(j) 177 to advise and assist, within its field of competence, interested agencies of the United States and other organizations, both public and private, national and international, with respect to projects and programs relating to the development of private enterprise in less developed countries and areas;

(k) 180 (1) 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 such investor (or the sponsor of an investment project in which such investor is involved) significantly to reduce the number of his employees in the United States because he is replacing his United States production with production from such investment which involves substantially the same product for substantially the same market as his United States production; and (2) to monitor conformance with the representations of the investor on which the Corporation relied in making the determination required by clause (1);

(1) 181 to decline to issue any contract of insurance or reinsurance, or any guaranty, or to enter into any agreement to

177 Sec. 2(5) of Public Law 95-268 (92 Stat. 214) struck subsecs. (f) and (1) and redesignated subsecs. (g) through (n) as (f) through (1), respectively. Subsecs. (f) and (1) formerly read as follows:

"(f) to encourage and support only those private investments in less developed friendly countries and areas which are sensitive and responsive to the special needs and requirements of their economies, and which contribute to the social and economic development of their people;" "(1) to the maximum extent practicable, to give preferential consideration in the Corporation's investment insurance, financing, and reinsurance activities to investment projects in the less developed friendly countries which have per capita incomes of $450 or less in 1973 United States dollars; and".

178 Sec. 2(1)(E) of the OPIC Amendments Act of 1974 (Public Law 93-390) added the words "and employment". 179 The words and to seek to support those developmental projects having positive trade benefits for the United States" were added by sec. 2(2) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021).

180 This subsection was originally added as subsec. (m) by sec. 2(1)(H) of the OPIC Amendments Act of 1974 (Public Law 93-390). It was redesignated as subsec. (k) by sec. 2(5) of Public Law 95-268; 92 Stat. 214.

181 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.