-CITE-

22 USC CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

-HEAD-

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

-MISC1-

SUBCHAPTER I - EXCHANGE RATES AND INTERNATIONAL ECONOMIC POLICY

COORDINATION

Sec.

5301. Short title.

5302. Findings.

5303. Statement of policy.

5304. International negotiations on exchange rate and

economic policies.

(a) Multilateral negotiations.

(b) Bilateral negotiations.

5305. Reporting requirements.

(a) Reports required.

(b) Contents of report.

5306. Definitions.

SUBCHAPTER II - INTERNATIONAL DEBT

PART A - FINDINGS, PURPOSES, AND STATEMENT OF POLICY

5321. Short title.

5322. Findings.

5323. Purposes.

5324. Statement of policy.

PART B - INTERNATIONAL DEBT MANAGEMENT AUTHORITY

5331. International initiative.

(a) Directive.

(b) Objectives.

(c) Interim reports.

(d) Final report.

5332. Actions to facilitate creation of Authority.

(a) In general.

(b) Construction of section.

5333. IMF-World Bank review.

(a) IMF review.

(b) World Bank review.

SUBCHAPTER III - PRIMARY DEALERS

5341. Short title.

5342. Requirement of national treatment in underwriting

government debt instruments.

(a) Findings.

(b) Designation of certain persons as primary

dealers prohibited.

(c) Exception for countries having or negotiating

bilateral agreements with United States.

(d) "Persons of a foreign country" defined.

(e) Effective date.

SUBCHAPTER IV - FINANCIAL REPORTS

5351. Short title.

5352. Quadrennial reports on foreign treatment of United

States financial institutions.

5353. Fair trade in financial services.

(a) Discussions.

(b) Consultation before discussions.

(c) Recommendations.

(d) Construction of section.

5354. Banks loan loss reserves.

-End-

-CITE-

22 USC SUBCHAPTER I - EXCHANGE RATES AND INTERNATIONAL

ECONOMIC POLICY COORDINATION 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER I - EXCHANGE RATES AND INTERNATIONAL ECONOMIC POLICY

COORDINATION

-HEAD-

SUBCHAPTER I - EXCHANGE RATES AND INTERNATIONAL ECONOMIC POLICY

COORDINATION

-End-

-CITE-

22 USC Sec. 5301 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER I - EXCHANGE RATES AND INTERNATIONAL ECONOMIC POLICY

COORDINATION

-HEAD-

Sec. 5301. Short title

-STATUTE-

This subchapter may be cited as the "Exchange Rates and

International Economic Policy Coordination Act of 1988".

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3001, Aug. 23, 1988, 102 Stat.

1372.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original "this

subtitle", meaning subtitle A (Secs. 3001-3006) of title III of

Pub. L. 100-418, which enacted this subchapter and amended section

225a of Title 12, Banks and Banking. For complete classification of

subtitle A to the Code, see Tables.

-End-

-CITE-

22 USC Sec. 5302 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER I - EXCHANGE RATES AND INTERNATIONAL ECONOMIC POLICY

COORDINATION

-HEAD-

Sec. 5302. Findings

-STATUTE-

The Congress finds that -

(1) the macroeconomic policies, including the exchange rate

policies, of the leading industrialized nations require improved

coordination and are not consistent with long-term economic

growth and financial stability;

(2) currency values have a major role in determining the

patterns of production and trade in the world economy;

(3) the rise in the value of the dollar in the early 1980's

contributed substantially to our current trade deficit;

(4) exchange rates among major trading nations have become

increasingly volatile and a pattern of exchange rates has at

times developed which contribute to substantial and persistent

imbalances in the flow of goods and services between nations,

imposing serious strains on the world trading system and

frustrating both business and government planning;

(5) capital flows between nations have become very large

compared to trade flows, respond at times quickly and

dramatically to policy and economic changes, and, for these

reasons, contribute significantly to uncertainty in financial

markets, the volatility of exchange rates, and the development of

exchange rates which produce imbalances in the flow of goods and

services between nations;

(6) policy initiatives by some major trading nations that

manipulate the value of their currencies in relation to the

United States dollar to gain competitive advantage continue to

create serious competitive problems for United States industries;

(7) a more stable exchange rate for the dollar at a level

consistent with a more appropriate and sustainable balance in the

United States current account should be a major focus of national

economic policy;

(8) procedures for improving the coordination of macroeconomic

policy need to be strengthened considerably; and

(9) under appropriate circumstances, intervention by the United

States in foreign exchange markets as part of a coordinated

international strategic intervention effort could produce more

orderly adjustment of foreign exchange markets and, in

combination with necessary macroeconomic policy changes, assist

adjustment toward a more appropriate and sustainable balance in

current accounts.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3002, Aug. 23, 1988, 102 Stat.

1372.)

-End-

-CITE-

22 USC Sec. 5303 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER I - EXCHANGE RATES AND INTERNATIONAL ECONOMIC POLICY

COORDINATION

-HEAD-

Sec. 5303. Statement of policy

-STATUTE-

It is the policy of the United States that -

(1) the United States and the other major industrialized

countries should take steps to continue the process of

coordinating monetary, fiscal, and structural policies initiated

in the Plaza Agreement of September 1985;

(2) the goal of the United States in international economic

negotiations should be to achieve macroeconomic policies and

exchange rates consistent with more appropriate and sustainable

balances in trade and capital flows and to foster price stability

in conjunction with economic growth;

(3) the United States, in close coordination with the other

major industrialized countries should, where appropriate,

participate in international currency markets with the objective

of producing more orderly adjustment of foreign exchange markets

and, in combination with necessary macroeconomic policy changes,

assisting adjustment toward a more appropriate and sustainable

balance in current accounts; and

(4) the accountability of the President for the impact of

economic policies and exchange rates on trade competitiveness

should be increased.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3003, Aug. 23, 1988, 102 Stat.

1373.)

-End-

-CITE-

22 USC Sec. 5304 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER I - EXCHANGE RATES AND INTERNATIONAL ECONOMIC POLICY

COORDINATION

-HEAD-

Sec. 5304. International negotiations on exchange rate and economic

policies

-STATUTE-

(a) Multilateral negotiations

The President shall seek to confer and negotiate with other

countries -

(1) to achieve -

(A) better coordination of macroeconomic policies of the

major industrialized nations; and

(B) more appropriate and sustainable levels of trade and

current account balances, and exchange rates of the dollar and

other currencies consistent with such balances; and

(2) to develop a program for improving existing mechanisms for

coordination and improving the functioning of the exchange rate

system to provide for long-term exchange rate stability

consistent with more appropriate and sustainable current account

balances.

(b) Bilateral negotiations

The Secretary of the Treasury shall analyze on an annual basis

the exchange rate policies of foreign countries, in consultation

with the International Monetary Fund, and consider whether

countries manipulate the rate of exchange between their currency

and the United States dollar for purposes of preventing effective

balance of payments adjustments or gaining unfair competitive

advantage in international trade. If the Secretary considers that

such manipulation is occurring with respect to countries that (1)

have material global current account surpluses; and (2) have

significant bilateral trade surpluses with the United States, the

Secretary of the Treasury shall take action to initiate

negotiations with such foreign countries on an expedited basis, in

the International Monetary Fund or bilaterally, for the purpose of

ensuring that such countries regularly and promptly adjust the rate

of exchange between their currencies and the United States dollar

to permit effective balance of payments adjustments and to

eliminate the unfair advantage. The Secretary shall not be required

to initiate negotiations in cases where such negotiations would

have a serious detrimental impact on vital national economic and

security interests; in such cases, the Secretary shall inform the

chairman and the ranking minority member of the Committee on

Banking, Housing, and Urban Affairs of the Senate and of the

Committee on Banking, Finance and Urban Affairs of the House of

Representatives of his determination.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3004, Aug. 23, 1988, 102 Stat.

1373.)

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee on Banking and

Financial Services of House of Representatives by section 1(a) of

Pub. L. 104-14, set out as a note preceding section 21 of Title 2,

The Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-MISC1-

NEGOTIATIONS ON CURRENCY EXCHANGE RATES

Section 1124 of Pub. L. 100-418 provided that:

"(a) Findings. - The Congress finds that -

"(1) the benefit of trade concessions can be adversely affected

by misalignments in currency, and

"(2) misalignments in currency caused by government policies

intended to maintain an unfair trade advantage tend to nullify

and impair trade concessions.

"(b) Negotiations. - Whenever, in the course of negotiating a

trade agreement under this subtitle [subtitle A (Secs. 1101 to

1125) of title I of Pub. L. 100-418, see Tables for

classification], the President is advised by the Secretary of the

Treasury that a foreign country that is a party to the negotiations

satisfies the criteria for initiating bilateral currency

negotiations listed in section 3004(b) of this Act [22 U.S.C.

5304(b)], the Secretary of the Treasury shall take action to

initiate bilateral currency negotiations on an expedited basis with

such foreign country."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5305 of this title.

-End-

-CITE-

22 USC Sec. 5305 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER I - EXCHANGE RATES AND INTERNATIONAL ECONOMIC POLICY

COORDINATION

-HEAD-

Sec. 5305. Reporting requirements

-STATUTE-

(a) Reports required

In furtherance of the purpose of this chapter, the Secretary,

after consultation with the Chairman of the Board, shall submit to

the Committee on Banking, Finance and Urban Affairs of the House of

Representatives and the Committee on Banking, Housing, and Urban

Affairs of the Senate, on or before October 15 of each year, a

written report on international economic policy, including exchange

rate policy. The Secretary shall provide a written update of

developments six months after the initial report. In addition, the

Secretary shall appear, if requested, before both committees to

provide testimony on these reports.

(b) Contents of report

Each report submitted under subsection (a) of this section shall

contain -

(1) an analysis of currency market developments and the

relationship between the United States dollar and the currencies

of our major trade competitors;

(2) an evaluation of the factors in the United States and other

economies that underlie conditions in the currency markets,

including developments in bilateral trade and capital flows;

(3) a description of currency intervention or other actions

undertaken to adjust the actual exchange rate of the dollar;

(4) an assessment of the impact of the exchange rate of the

United States dollar on -

(A) the ability of the United States to maintain a more

appropriate and sustainable balance in its current account and

merchandise trade account;

(B) production, employment, and noninflationary growth in the

United States;

(C) the international competitive performance of United

States industries and the external indebtedness of the United

States;

(5) recommendations for any changes necessary in United States

economic policy to attain a more appropriate and sustainable

balance in the current account;

(6) the results of negotiations conducted pursuant to section

5304 of this title;

(7) key issues in United States policies arising from the most

recent consultation requested by the International Monetary Fund

under article IV of the Fund's Articles of Agreement; and

(8) a report on the size and composition of international

capital flows, and the factors contributing to such flows,

including, where possible, an assessment of the impact of such

flows on exchange rates and trade flows.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3005(a), (b), Aug. 23, 1988, 102

Stat. 1374.)

-REFTEXT-

REFERENCES IN TEXT

This chapter, referred to in subsec. (a), was in the original

"this title", meaning title III of Pub. L. 100-418, Aug. 23, 1988,

102 Stat. 1372, which enacted this chapter and section 262q of this

title, amended sections 225a, 635, 635i-3, 1843, and 3912, of Title

12, Banks and Banking, and enacted provisions set out as notes

under section 262q of this title and sections 635, 635i-3, and 1841

of Title 12. For complete classification of title III to the Code,

see Tables.

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee on Banking and

Financial Services of House of Representatives by section 1(a) of

Pub. L. 104-14, set out as a note preceding section 21 of Title 2,

The Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-End-

-CITE-

22 USC Sec. 5306 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER I - EXCHANGE RATES AND INTERNATIONAL ECONOMIC POLICY

COORDINATION

-HEAD-

Sec. 5306. Definitions

-STATUTE-

As used in this subchapter:

(1) Secretary

The term "Secretary" means the Secretary of the Treasury.

(2) Board

The term "Board" means the Board of Governors of the Federal

Reserve System.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3006, Aug. 23, 1988, 102 Stat.

1375.)

-End-

-CITE-

22 USC SUBCHAPTER II - INTERNATIONAL DEBT 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER II - INTERNATIONAL DEBT

-HEAD-

SUBCHAPTER II - INTERNATIONAL DEBT

-End-

-CITE-

22 USC Part A - Findings, Purposes, and Statement of

Policy 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER II - INTERNATIONAL DEBT

Part A - Findings, Purposes, and Statement of Policy

-HEAD-

PART A - FINDINGS, PURPOSES, AND STATEMENT OF POLICY

-End-

-CITE-

22 USC Sec. 5321 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER II - INTERNATIONAL DEBT

Part A - Findings, Purposes, and Statement of Policy

-HEAD-

Sec. 5321. Short title

-STATUTE-

This subchapter may be cited as the "International Debt

Management Act of 1988".

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3101, Aug. 23, 1988, 102 Stat.

1375.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original "this

subtitle", meaning subtitle B (Secs. 3101-3123) of title III of

Pub. L. 100-418, which enacted this subchapter and amended section

3912 of Title 12, Banks and Banking. For complete classification of

subtitle B to the Code, see Tables.

-End-

-CITE-

22 USC Sec. 5322 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER II - INTERNATIONAL DEBT

Part A - Findings, Purposes, and Statement of Policy

-HEAD-

Sec. 5322. Findings

-STATUTE-

The Congress finds that -

(1) the international debt problem threatens the safety and

soundness of the international financial system, the stability of

the international trading system, and the economic development of

the debtor countries;

(2) orderly reduction of international trade imbalances

requires very substantial growth in all parts of the world

economy, particularly in the developing countries;

(3) growth in developing countries with substantial external

debts has been significantly constrained over the last several

years by a combination of high debt service obligations and

insufficient new flows of financial resources to these countries;

(4) substantial interest payment outflows from debtor

countries, combined with inadequate net new capital inflows, have

produced a significant net transfer of financial resources from

debtor to creditor countries;

(5) negative resource transfers at present levels severely

depress both investment and growth in the debtor countries, and

force debtor countries to reduce imports and expand exports in

order to meet their debt service obligations;

(6) current adjustment policies in debtor countries, which

depress domestic demand and increase production for export, help

to depress world commodity prices and limit the growth of export

markets for United States industries;

(7) the United States has borne a disproportionate share of the

burden of absorbing increased exports from debtor countries,

while other industrialized countries have increased their imports

from developing countries only slightly;

(8) current approaches to the debt problem should not rely

solely on new lending as a solution to the debt problem, and

should focus on other financing alternatives including a

reduction in current debt service obligations;

(9) new international mechanisms to improve the management of

the debt problem and to expand the range of financing options

available to developing countries should be explored; and

(10) industrial countries with strong current account surpluses

have a disproportionate share of the world's capital resources,

and bear an additional responsibility for contributing to a

viable long-term solution to the debt problem.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3102, Aug. 23, 1988, 102 Stat.

1375.)

-End-

-CITE-

22 USC Sec. 5323 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER II - INTERNATIONAL DEBT

Part A - Findings, Purposes, and Statement of Policy

-HEAD-

Sec. 5323. Purposes

-STATUTE-

The purposes of this subchapter are -

(1) to expand the world trading system and raise the level of

exports from the United States to the developing countries in

order to reduce the United States trade deficit and foster

economic expansion and an increase in the standard of living

throughout the world;

(2) to alleviate the current international debt problem in

order to make the debt situation of developing countries more

manageable and permit the resumption of sustained growth in those

countries; and

(3) to increase the stability of the world financial system and

ensure the safety and soundness of United States depository

institutions.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3103, Aug. 23, 1988, 102 Stat.

1376.)

-End-

-CITE-

22 USC Sec. 5324 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER II - INTERNATIONAL DEBT

Part A - Findings, Purposes, and Statement of Policy

-HEAD-

Sec. 5324. Statement of policy

-STATUTE-

It is the policy of the United States that -

(1) increasing growth in the developing world is a major goal

of international economic policy;

(2) it is necessary to broaden the range of options in dealing

with the debt problem to include improved mechanisms to

restructure existing debt;

(3) active consideration of a new multilateral authority to

improve the management of the debt problem and to share the

burdens of adjustment more equitably must be undertaken; and

(4) countries with strong current account surpluses bear a

major responsibility for providing the financial resources needed

for growth in the developing world.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3104, Aug. 23, 1988, 102 Stat.

1376.)

-End-

-CITE-

22 USC Part B - International Debt Management Authority 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER II - INTERNATIONAL DEBT

Part B - International Debt Management Authority

-HEAD-

PART B - INTERNATIONAL DEBT MANAGEMENT AUTHORITY

-End-

-CITE-

22 USC Sec. 5331 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER II - INTERNATIONAL DEBT

Part B - International Debt Management Authority

-HEAD-

Sec. 5331. International initiative

-STATUTE-

(a) Directive

(1) Study

The Secretary of the Treasury shall study the feasibility and

advisability of establishing the International Debt Management

Authority described in this section.

(2) Explanation of determinations

If the Secretary of the Treasury determines that initiation of

international discussions with regard to such authority would (A)

result in material increase in the discount at which sovereign

debt is sold, (B) materially increase the probability of default

on such debt, or (C) materially enhance the likelihood of debt

service failure or disruption, the Secretary shall include in his

interim reports to the Congress an explanation in detail of the

reasons for such determination.

(3) Initiation of discussions

Unless such a determination is made, the Secretary of the

Treasury shall initiate discussions with such industrialized and

developing countries as the Secretary may determine to be

appropriate with the intent to negotiate the establishment of the

International Debt Management Authority, which would undertake to

-

(A) purchase sovereign debt of less developed countries from

private creditors at an appropriate discount;

(B) enter into negotiations with the debtor countries for the

purpose of restructuring the debt in order to -

(i) ease the current debt service burden on the debtor

countries; and

(ii) provide additional opportunities for economic growth

in both debtor and industrialized countries; and

(C) assist the creditor banks in the voluntary disposition of

their Third World loan portfolio.

(b) Objectives

In any discussions initiated under subsection (a) of this

section, the Secretary should include the following specific

proposals:

(1) That any loan restructuring assistance provided by such an

authority to any debtor nation should involve substantial

commitments by the debtor to (A) economic policies designed to

improve resource utilization and minimize capital flight, and (B)

preparation of an economic management plan calculated to provide

sustained economic growth and to allow the debtor to meet its

restructured debt obligations.

(2) That support for such an authority should come from

industrialized countries, and that greater support should be

expected from countries with strong current account surpluses.

(3) That such an authority should have a clearly defined close

working relationship with the International Monetary Fund and the

International Bank for Reconstruction and Development and the

various regional development banks.

(4) That such an authority should be designed to operate as a

self-supporting entity, requiring no routine appropriation of

resources from any member government, and to function subject to

the prohibitions contained in the first sentence of section

5332(a) of this title.

(5) That such an authority should have a defined termination

date and a clear proposal for the restoration of creditworthiness

to debtor countries within this timeframe.

(c) Interim reports

At the end of the 6-month period beginning on August 23, 1988,

and at the end of the 12-month period beginning on August 23, 1988,

the Secretary of the Treasury shall submit a report on the progress

being made on the study or in discussions described in subsection

(a) of this section to the Committee on Banking, Finance and Urban

Affairs of the House of Representatives and the Committee on

Banking, Housing, and Urban Affairs and the Committee on Foreign

Relations of the Senate, and shall consult with such committees

after submitting each such report.

(d) Final report

On the conclusion of the study or of discussions described in

subsection (a) of this section, the Secretary shall transmit a

report containing a detailed description thereof to the Committee

on Banking, Finance and Urban Affairs of the House of

Representatives and the Committee on Banking, Housing, and Urban

Affairs and the Committee on Foreign Relations of the Senate,

together with such recommendations for legislation which the

Secretary may determine to be necessary or appropriate for the

establishment of the International Debt Management Authority.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3111, Aug. 23, 1988, 102 Stat.

1376.)

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee on Banking and

Financial Services of House of Representatives by section 1(a) of

Pub. L. 104-14, set out as a note preceding section 21 of Title 2,

The Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5332, 5333 of this title.

-End-

-CITE-

22 USC Sec. 5332 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER II - INTERNATIONAL DEBT

Part B - International Debt Management Authority

-HEAD-

Sec. 5332. Actions to facilitate creation of Authority

-STATUTE-

(a) In general

No funds, appropriations, contributions, callable capital,

financial guarantee, or any other financial support or obligation

or contingent support or obligation on the part of the United

States Government may be used for the creation, operation, or

support of the International Debt Management Authority specified in

section 5331 of this title, without the express approval of the

Congress through subsequent law, nor shall any expenses associated

with such authority, either directly or indirectly, accrue to any

United States person without the consent of such person. Except as

restricted in the preceding sentence, the Secretary of the Treasury

shall review all potential resources available to the multilateral

financial institutions which could be used to support the creation

of the International Debt Management Authority. In the course of

this review, the Secretary shall direct -

(1) the United States Executive Director of the International

Monetary Fund to determine the amount of, and alternative methods

by which, gold stock of the Fund which, subject to action by its

Board of Governors, could be pledged as collateral to obtain

financing for the activities of the authority specified in

section 5331 of this title; and

(2) the United States Executive Director to the International

Bank for Reconstruction and Development to determine the amount

of, and alternative methods by which, liquid assets controlled by

such Bank and not currently committed to any loan program which,

subject to action by its Board of Governors, could be pledged as

collateral for obtaining financing for the activities of the

authority specified in section 5331 of this title.

The Secretary of the Treasury shall include a report on the results

of the review in the first report submitted under section 5331(c)

of this title.

(b) Construction of section

Subsection (a) of this section shall not be construed to affect

any provision of the Articles of Agreement of the International

Monetary Fund or of the International Bank for Reconstruction and

Development or any agreement entered into under either of such

Agreements.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3112, Aug. 23, 1988, 102 Stat.

1378.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5331 of this title.

-End-

-CITE-

22 USC Sec. 5333 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER II - INTERNATIONAL DEBT

Part B - International Debt Management Authority

-HEAD-

Sec. 5333. IMF-World Bank review

-STATUTE-

(a) IMF review

The United States Executive Director of the International

Monetary Fund shall request the management of the International

Monetary Fund to prepare a review and analysis of the debt burden

of the developing countries, with particular attention to

alternatives for dealing with the debt problem including new

lending instruments, rescheduling and refinancing of existing debt,

securitization and debt conversion techniques, discounted debt

repurchases, and the International Debt Management Authority

described in section 5331 of this title no later than 1 year after

August 23, 1988.

(b) World Bank review

The United States Executive Director to the International Bank

for Reconstruction and Development shall request the management of

the International Bank for Reconstruction and Development to

prepare a review and analysis of the debt burden of the developing

countries, with particular attention to alternatives for dealing

with the debt problem including new lending instruments,

rescheduling and refinancing of existing debt, securitization and

debt conversion techniques, discounted debt repurchases, and the

International Debt Management Authority described in section 5331

of this title no later than 1 year after August 23, 1988.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3113, Aug. 23, 1988, 102 Stat.

1378.)

-End-

-CITE-

22 USC SUBCHAPTER III - PRIMARY DEALERS 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER III - PRIMARY DEALERS

-HEAD-

SUBCHAPTER III - PRIMARY DEALERS

-End-

-CITE-

22 USC Sec. 5341 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER III - PRIMARY DEALERS

-HEAD-

Sec. 5341. Short title

-STATUTE-

This subchapter may be cited as the "Primary Dealers Act of

1988".

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3501, Aug. 23, 1988, 102 Stat.

1386.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original "this

subtitle", meaning subtitle F (Secs. 3501, 3502) of title III of

Pub. L. 100-418, which enacted this subchapter.

-End-

-CITE-

22 USC Sec. 5342 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER III - PRIMARY DEALERS

-HEAD-

Sec. 5342. Requirement of national treatment in underwriting

government debt instruments

-STATUTE-

(a) Findings

The Congress finds that -

(1) United States companies can successfully compete in foreign

markets if they are given fair access to such markets;

(2) a trade surplus in services could offset the deficit in

manufactured goods and help lower the overall trade deficit

significantly;

(3) in contrast to the barriers faced by United States firms in

Japan, Japanese firms generally have enjoyed access to United

States financial markets on the same terms as United States

firms; and

(4) United States firms seeking to compete in Japan face or

have faced a variety of discriminatory barriers effectively

precluding such firms from fairly competing for Japanese

business, including -

(A) limitations on membership on the Tokyo Stock Exchange;

(B) high fixed commission rates (ranging as high as 80

percent) which must be paid to members of the exchange by

nonmembers for executing trades;

(C) unequal opportunities to participate in and act as lead

manager for equity and bond underwritings;

(D) restrictions on access to automated teller machines;

(E) arbitrarily applied employment requirements for opening

branch offices;

(F) long delays in processing applications and granting

approvals for licenses to operate; and

(G) restrictions on foreign institutions' participation in

Ministry of Finance policy advisory councils.

(b) Designation of certain persons as primary dealers prohibited

(1) General rule

Neither the Board of Governors of the Federal Reserve System

nor the Federal Reserve Bank of New York may designate, or permit

the continuation of any prior designation of, any person of a

foreign country as a primary dealer in government debt

instruments if such foreign country does not accord to United

States companies the same competitive opportunities in the

underwriting and distribution of government debt instruments

issued by such country as such country accords to domestic

companies of such country.

(2) Certain prior acquisitions excepted

Paragraph (1) shall not apply to the continuation of the prior

designation of a company as a primary dealer in government debt

instruments if -

(A) such designation occurred before July 31, 1987; and

(B) before July 31, 1987 -

(i) control of such company was acquired from a person

(other than a person of a foreign country) by a person of a

foreign country; or

(ii) in conjunction with a person of a foreign country,

such company informed the Federal Reserve Bank of New York of

the intention of such person to acquire control of such

company.

(c) Exception for countries having or negotiating bilateral

agreements with United States

Subsection (b) of this section shall not apply to any person of a

foreign country if -

(1) that country, as of January 1, 1987, was negotiating a

bilateral agreement with the United States under the authority of

section 2112(b)(4)(A) of title 19; or

(2) that country has a bilateral free trade area agreement with

the United States which entered into force before January 1,

1987.

(d) "Person of a foreign country" defined

For purposes of this section, a person is a "person of a foreign

country" if that person, or any other person which directly or

indirectly owns or controls that person, is a resident of that

country, is organized under the laws of that country, or has its

principal place of business in that country.

(e) Effective date

This section shall take effect 12 months after August 23, 1988.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3502, Aug. 23, 1988, 102 Stat.

1386.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 10 section 2500.

-End-

-CITE-

22 USC SUBCHAPTER IV - FINANCIAL REPORTS 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER IV - FINANCIAL REPORTS

-HEAD-

SUBCHAPTER IV - FINANCIAL REPORTS

-End-

-CITE-

22 USC Sec. 5351 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER IV - FINANCIAL REPORTS

-HEAD-

Sec. 5351. Short title

-STATUTE-

This subchapter may be cited as the "Financial Reports Act of

1988".

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3601, Aug. 23, 1988, 102 Stat.

1387.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original "this

subtitle", meaning subtitle G (Secs. 3601-3604) of title III of

Pub. L. 100-418, which enacted this subchapter.

-End-

-CITE-

22 USC Sec. 5352 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER IV - FINANCIAL REPORTS

-HEAD-

Sec. 5352. Quadrennial reports on foreign treatment of United

States financial institutions

-STATUTE-

Not less frequently than every 4 years, beginning December 1,

1990, the Secretary of the Treasury, in conjunction with the

Secretary of State, the Board of Governors of the Federal Reserve

System, the Comptroller of the Currency, the Federal Deposit

Insurance Corporation, the Securities and Exchange Commission, and

the Department of Commerce, shall report to the Congress on (1) the

foreign countries from which foreign financial services

institutions have entered into the business of providing financial

services in the United States, (2) the kinds of financial services

which are being offered, (3) the extent to which foreign countries

deny national treatment to United States banking organizations and

securities companies, and (4) the efforts undertaken by the United

States to eliminate such discrimination. The report shall focus on

those countries in which there are significant denials of national

treatment which impact United States financial firms. The report

shall also describe the progress of discussions pursuant to section

5353 of this title.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3602, Aug. 23, 1988, 102 Stat.

1387.)

-End-

-CITE-

22 USC Sec. 5353 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER IV - FINANCIAL REPORTS

-HEAD-

Sec. 5353. Fair trade in financial services

-STATUTE-

(a) Discussions

When advantageous the President or his designee shall conduct

discussions with the governments of countries that are major

financial centers, aimed at:

(1) ensuring that United States banking organizations and

securities companies have access to foreign markets and receive

national treatment in those markets;

(2) reducing or eliminating barriers to, and other distortions

of, international trade in financial services;

(3) achieving reasonable comparability in the types of

financial services permissible for financial service companies;

and

(4) developing uniform supervisory standards for banking

organizations and securities companies, including uniform capital

standards.

(b) Consultation before discussions

Before entering into those discussions, the President or his

designee shall consult with the committees of jurisdiction in the

Senate and the House of Representatives.

(c) Recommendations

After completing those discussions and after consultation with

the committees of jurisdiction, the President shall transmit to the

Congress any recommendations that have emerged from those

discussions. Any recommendations for changes in United States

financial laws or practices shall be accompanied by a description

of the changes in foreign financial laws or practices that would

accompany action by the Congress, and by an explanation of the

benefits that would accrue to the United States from adoption of

the recommendations.

(d) Construction of section

Nothing in this section may be construed as prior approval of any

legislation which may be necessary to implement any recommendations

resulting from discussions under this section.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3603, Aug. 23, 1988, 102 Stat.

1387.)

-TRANS-

DELEGATION OF FUNCTIONS

Functions of President under this section delegated to Secretary

of the Treasury by section 1 of Ex. Ord. No. 12781, Nov. 20, 1991,

56 F.R. 59203, set out as a note under section 301 of Title 3, The

President.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 5352 of this title.

-End-

-CITE-

22 USC Sec. 5354 01/06/03

-EXPCITE-

TITLE 22 - FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 62 - INTERNATIONAL FINANCIAL POLICY

SUBCHAPTER IV - FINANCIAL REPORTS

-HEAD-

Sec. 5354. Banks loan loss reserves

-STATUTE-

The Federal Reserve Board shall submit to the Committee on

Banking, Housing, and Urban Affairs of the Senate and the Committee

on Banking, Finance and Urban Affairs of the House of

Representatives a report on the issues raised by including loan

loss reserves as part of banks' primary capital for regulatory

purposes by March 31, 1989. Such report shall include a review of

the treatment of loan loss reserves and the composition of primary

capital of banks in other major industrialized countries, and shall

include an analysis as to whether loan loss reserves should

continue to be counted as primary capital for regulatory purposes.

-SOURCE-

(Pub. L. 100-418, title III, Sec. 3604, Aug. 23, 1988, 102 Stat.

1388.)

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee on Banking and

Financial Services of House of Representatives by section 1(a) of

Pub. L. 104-14, set out as a note preceding section 21 of Title 2,

The Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-End-