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that MDBs, thus far, seem responsive to concerns raised early in

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Secretary of the Treasury to instruct U.S. Executive Directors of

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begin discussions with other donor nations to seek practical ways

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It should be noted that many Banks and donor nations believe

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equal

status

to

other

Bank

divisions.

many countries

Thus,

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00

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We

are

by donor country decision-makers in reviewing loans. participating in this exercise along with Treasury, State, and

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environmental issues.

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Here in the United States we have sought to achieve over the

past 18 years the goals of the National Environmental Policy Act.

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review process which has proved to be a useful tool in agency

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is that, done properly, the NEPA process does not dictate results

but rather assures full consideration of environmental issues and

alternatives at

a stage of decision-making early enough to be of

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resources

as

impacts, such the Federal Highway. Administration, the Forest Service, and the Army Corps of Engineers, have fully

institutionalized

the

environmental

impact assessment

process

into their project development and decision-making processes.

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environmental impacts is a needed part of the MDB decision-making process.

However, we question whether NEPA, specifically, is

adaptable to the MDB process or, if it is, whether the U.S. can,

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is the most comprehensive of these laws, although it is but one

example,

Therefore, while we view aspects of NEPA

as desirable for

MDB decision-making, we suggest a pilot program rather than any

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The ultimate U.S. objective is to ensure that MDBs implement

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staffs in MDBS--providing advice, technical assistance, training,

and education on

the conduct of environmental analyses; and by

example, cooperatively conduct specific analyses similar to those

done by Federal agencies under NEPA, but without certain NEPA

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Such a plan would offer environmental analyses to inform MDB

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We stress that the suggested program will be an ineffective,

one-sided effort without coordination and a continuation of on

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environmental review, but rather to promote the goal we all agree

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factors as the MDB considers whether to finance a project.

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under section 309 of the clean Air Act we are required to review

all major Federal actions--be they regulatory legislative, or

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That concludes my prepared statement, Mr. Chairman.

I would

be pleased to answer any questions the Subcommittee may have.

* * *

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