Page:United States Statutes at Large Volume 100 Part 2.djvu/104

 100 STAT. 1206

PUBLIC LAW 99-472—OCT. 15, 1986 "(3) these practices undermine market mechanisms that would otherwise result in export purchase decisions made on the basis of price, quality, delivery, and other factors directly related to the export, where official financing is not subsidized and would be a neutral factor in the transaction; "(4) support of commercial exports by donor countries with tied aid and partially untied aid credits impedes the growth of developing countries because it diverts development assistance funds from essential developmental purposes; and "(5) there should be established in the Bank a temporary tied aid program to target the export markets of those countries which make extensive use of tied aid or partially untied aid credits for commercial advantage for the purpose of facilitating the negotiation of a comprehensive international arrangement restricting the use of tied aid and partially untied aid credits for commercial purposes, and such program should be aggressively used until such an arrangement is established. "(b) ESTABLISHMENT OF TiED AlD CREDIT PROGRAM.— "(1) IN GENERAL.—For the purpose of facilitating the negotiation of a comprehensive international arrangement restricting the use of tied aid and partially untied aid credits for commercial purposes, the Bank shall establish a tied aid credit program under which grants shall be made from funds available in the Tied Aid Credit Fund established under subsection (c)— "(A) to supplement the financing of a United States export when there is a reasonable expectation that predacious financing will be provided by another country for a sale by a competitor of the United States exporter with respect to such export; "(B) to supplement the financing of United States exports to foreign markets which are actual or potential export markets for any country which the Bank determines— "(i) engages in predacious official export financing through the use of tied aid or partially untied aid credits; and "(ii) impedes negotiations to eliminate the use of such credits for commercial purposes; or "(C) to supplement the financing of United States exports under such other circumstances as the Bank may determine to be appropriate for carrying out the purposes of this section. "(2) ADMINISTRATION OF PROGRAM.—The tied aid credit program shall be administered by the Bank— "(A) in consultation with the Secretary of the Treasury and in accordance with the Secretary's recommendations on how such credits could be used most effectively and efficiently to promote the negotiation of a comprehensive international arrangement restricting the use of tied aid and partially untied aid credits for commercial purposes; "(B) in cooperation with private financial institutions or entities, as appropriate; and "(C) in consultation with the National Advisory (Douncil on International Monetary and Financial Policies. "(3) COORDINATION WITH OTHER EXPORT FINANCING.—Under

the tied aid credit program, the Bank may combine grants from the Tied Aid Credit Fund with—

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