APR 28 '88 12:22 WHENWE SERVICES

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I would also like to confirm that we would be grateful for your help, if we so require it, in obtaining financial and/or technical assistance for projects and programmes under our own auspices or under Non Government auspices. Such assistance may well be requested in relation to the National Conservation Strategy, where we will be specifically interested in promoting conservation; diversifying rural employment; developing tourism; planning good urban environments; utilising wildlife; and promoting sustainable livestock development, amongst other things.

I do hope you find these points a satisfactory basis on which we can build mutual cooperation and benefit. We certainly enjoyed your visit and the chance it provided to have valuable discussions and to show you something of Botswana. We look forward to continuing the dialogue.

Yours sincerely,

Bas

P.K. Falogi
HONOURABLE MINISTER

P.3

100TH CONGRESS 1ST SESSION

H. R. 3750

To provide for further participation by the United States in the International
Development Association, the Asian Development Fund, and the African
Development Bank, for membership for the United States in the Multilateral
Investment Guarantee Agency, for United States acceptance of the merger
of the capital resources of the Inter-American Development Bank, for United
States approval and acceptance of a proposed amendment to the Articles of
Agreement of the International Bank for Reconstruction and Development,
and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

DECEMBER 11, 1987

Mr. McHugi introduced the following hill; which was referred to the Committee
on Banking, Finance and Urban Affairs

A BILL

To provide for further participation by the United States in the
International Development Association, the Asian Develop-
ment Fund, and the African Development Bank, for mem-
bership for the United States in the Multilateral Investment
Guarantee Agency, for United States acceptance of the
merger of the capital resources of the Inter-American De-
velopment Bank, for United States approval and acceptance

of a proposed amendment to the Articles of Agreement of
the International Bank for Reconstruction and Develop-
ment, and for other purposes.

"SEC. 1301. The Congress finds that

"(1) United States assistance to the multilateral
development banks should promote sustainable use of
natural resources and the protection of the environ-
ment, public health, and the status of indigenous peo-
ples in developing countries;

"(2) multilateral development bank projects, poli-
cies, and loans have failed in some cases to provide
adequate safeguards for the environment, public health,
natural resources, and indigenous peoples;

"(3) many development efforts of the multilateral
development banks are more enduring and less costly
based on consultations with directly affected population
groups and communities;

"(4) developing country governments sometimes
do not ensure that appropriate policies and procedures
are in place to use natural resources sustainably or
consult with affected population groups and communi-
ties, where costs could be reduced or benefits made
more enduring; and

"(5) in general, the multilateral development
banks do not yet provide systematic and adequate is
sistance to their borrowers to encourage sustainable re-
Source use and consultation with offerte com

13

where costs could be reduced or benefits made more

enduring.

3

"SEC. 1302. The Secretary of the Treasury and the
+ Secretary of State, in cooperation with the Administrator of
5 the Agency for International Development, shall vigorously
6 promote mechanisms to strengthen the environmental per-
7 formance of these banks. These mechanisms shall include
8 strengthening organizational, administrative, and procedural
9 arrangements within the banks which will substantially im-
10 prove management of assistance programs necessary to
11 ensure the sustainable use of natural resources and the
12 protection of indigenous peoples.

13

"SEC. 1303. (a)(1) In the course of reviewing assistance
14 proposals of the multilateral development banks, the Admin-
15 istrator of the Agency for International Development, in con-
16 sultation with the Secretary of the Treasury and the Secre-
17 tary of State, shall ensure that other agencies and appropri-
18 ate United States embassies and overseas missions of the
19 Agency for International Development are instructed to ana-
20 yze, where feasible, the environmental impacts of multilater-
21 al development loans well in advance of such loans' approval
22 by the relevant institutions to determine whether the propos-
23 als will contribute the sustainable development of the bor-
21rowing country.

1

2

14

1

"(2) To the extent possible, such reviews shall address 2 the economic viability of the project, adverse impacts on the 3 environment, natural resources, public health, and indigenous

6

4 peoples, and recommendations as to measures, including al-
5 ternatives, that could eliminate or mitigate adverse impacts.
"(3) If there is reason to believe that any such loan is
7 particularly likely to have substantial adverse impacts, the
8 Administrator of the Agency for International Development,
9 in consultation with the Secretary of the Treasury and the
10 Secretary of State, shall ensure that an affirmative investiga-
11 tion of such impacts is undertaken in consultation with rele-
12 vant Federal agencies. If not classified under the national
13 security system of classification, the information collected
14 pursuant to this paragraph shall be made available to the
15 public.

16 "(b) The Secretary of the Treasury shall instruct the
17 Executive Directors representing the United States at the
18 International Bank for Reconstruction and Development, the
19 Inter-American Development Bank, the Asian Development
20 Bank, and the African Development Bank to urge the man-
21 agement and other directors of each such bank, to provide
22 sufficient time between the circulation of assistance proposals
23 and bank action on those proposals, in order to permit their
24 evaluation by major shareholder governments.

15

1

"(c) Based on the information obtained during the eval-
2 uation referred to in subsection (a) and other available infor-
3 mation, the Administrator of the Agency for International
+ Development, in consultation with the Secretary of the
5 Treasury and the Secretary of State, shall identify those as-
6 sistance proposals likely to have adverse impacts on the envi-
7 ronment, natural resources, public health, or indigenous peo-
8 ples. The proposals so identified shall be transmitted to the
9 Committee on Appropriations and the Committee on Bank-
10 ing, Finance and Urban Affairs of the House of Representa-
11 tives and the Committee on Appropriations and the Com-
12 mittee on Foreign Relations of the Senate, not later than
13 June 30 and December 31 of each year following the date of
14 enactment of this title.

15

20

"(d) The Secretary of the Treasury shall forward reports
16 concerning information received under subsection (a) to the
17 Executive Director representing the United States in the ap-
18 propriate bank with instructions to seek to eliminate or miti-
19 gate adverse impacts which may result from the proposal.
"SEC. 1304. The Secretary of the Treasury, in consul-
21 tation with the Secretary of State and the Administrator of
22 the Agency for International Development, shall create a
23 system for cooperative exchange of information with other
24 interested member countries on assistance proposals of the
25 inultilateral developinent banks.

16

1

"SEC. 1305. The Secretary of the Treasury shall in

2 struct the United States Executive Directors of the multilat

3 eral development banks to support the strengthening of edu-
4 cational programs within each multilateral development bank

5 to improve the capacity of mid-level managers to initiate and

6

manage environmental aspects of development activities, and
7 to train officials of borrowing countries in the conduct of en-
8 vironmental analyses.

9

"SEC. 1306. (a) The Secretary of the Treasury shall
10 instruct the United States Executive Director of each multi-
11 lateral development bank to vigorously and continuously urge
12 that each bank identify and develop methods and procedures
13 to insure that in addition to economic and technical consider-
14 ations, unquantified environmental values be given appropri
15 ate consideration in decisionmaking, and include in the docu-
10 ments circulated to the Board of Executive Directors con-

17 cerning each assistance proposal a detailed statement, to in-
18 clude assessment of the benefits and costs of environmental
19 impacts and possible mitigating measures, on the environ-
20 mental impact of the proposed action, any adverse environ-
21 mental effects which cannot be avoided if the proposal is im-
22 plemented, and alternatives to the proposed action.

23 "th) The Secretary of the Treasury shall instruct the
21 United States Excentive Director of each multilateral devel-
25 opinent lank to vigorously and continuously promote —

17

"(1) increases in the proportion of loans support

ing environmentally beneficial policies, projects, and

project components;

"(2) the establishment of environmental programs

in appropriate policy-based loans for the purpose of im

proving natural resource management, environmental

quality, and protection of biological diversity;

"(3) increases in the proportion of staff with pro-
fessional training and experience in ecology and related
areas and in the areas of anthropological and sociologi-
cal impact analysis to ensure systematic appraisal and
monitoring of environmental and sociocultural impacts
of projects and policies;

"(4) active and systematic encouragement of par-
ticipation by borrowing countries nongovernmental en-
vironmental, community and indigenous peoples' orga-
nizations at all stages of preparations for country lend-
ing strategies, policy based loans, and loans that may
have adverse environmental or sociocultural impacts;

and

1

2

of design and potential environmental and sociocultural

impacts of proposed loans.

3

"SEC. 1307. Not later than January 15 of each year
4 beginning after the date of the enactment of this title, the

5 Secretary of the Treasury, in consultation with the Secretary
6 of State and the Administrator of the Agency for the Interna-
7 tional Development, shall submit an annual report on the
8 progress being made to implement the objectives of this title
9 to the Committee on Appropriations and the Committee on
10 Banking, Finance and Urban Affairs of the House of Repre-
11 sentatives and to the Committee on Appropriations and the
12 Committee on Foreign Relations of the Senate.

13 "TITLE XIV-AGRICULTURAL AND COMMODITY

14

15

18

PRODUCTION

"SEC. 1401. The Congress hereby finds the following:
"(1) The financing of certain programs and
projects by multilateral development banks has been of
great concern insofar as the prograins and projects
have been detrimental to the interests of American
farmers and the agribusiness sector.

"(2) An increase in rural income in developing
countries will generally result in an increase in exports
of United States agricultural and food products.

"SEC. 1402. The Secretary of the Treasury, after com

25 sultations with the Secretary of Agriculture and

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