Congressional Statements
Engel asks Pres. Clinton to exercise
his waiver authority and support International Financial Institution loans
to India
Letter to President Clinton
November 12, 1999
The President
The White House
Washington, DC 20500
Dear Mr. President:
Recently, you signed into law the Fiscal Year 2000 Defense Appropriations
Act which contained waiver authority allowing you to lift certain commercial
and financial restrictions against India, I was pleased to see that shortly
after signing the bill you invoked its waiver authority and lifted limitations
on certain financial support and commercial loans to India. It is my understanding,
however, that the waiver did not cover World Bank loans for India which
would be used for non-basic human needs. I write to ask you to waive the
restrictions relating to these types of loans.
Currently, there are $1.233 billion worth of loans for India held up
at the World Bank due to U.S. opposition. Two of them are state highway
projects; two of them are state power projects. While under traditional
criteria one could debate whether the loans are for basic human needs,
it is important to emphasize that the beneficiaries of this assistance
would be the least developed areas of India. In fact, the loans are targeted
to infrastructure improvement in rural areas in which the poorest Indian
citizens live.
Furthermore, under India's constitution, these projects fall under the
purview of state governments, not the federal government. Any difference
we may have with India are with its national policies, not provincial
authorities. I do not believe that such differences are effectively addressed
by denying India's states loans for development.
Finally, you have already issued a similar waiver for Pakistan. By not
Issuing the appropriate waiver for India, our country is placed in the
awkward position of supporting World Bank loans for a nation that has
overthrown its duly elected government, while opposing the same loans
for a nation that recently conducted a peaceful, free and fair national
election.
I, therefore, urge you to allow these loans to India to proceed by exercising
the authority provided in the Defense Appropriations Act and waiving U.S.
Opposition to international financial institution loans to India.
Sincerely,
Eliot Engel
Member of Congress
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