Congressional Statements

McCarthy requests waiver of restrictions on World Bank 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 bill that contained waiver authority lifting certain commercial and financial restrictions against India. Subsequently, you invoked a limited waiver. I understand the waiver did not cover the provisioning of World Bank loans for India's nonbasic human needs. I ask you to waive these restrictions.

Currently, $1.235 billion worth of loans for India are frozen at the World Bank due to U.S. opposition. Of those, almost of half is for transportation-specific projects. Since both access to electricity and the ability to travel by car are basic human needs, it is hard to see how we can oppose them.

Even if there is debate whether the loans are for basic human needs, there are several reasons to waive the restrictions. First, the loans are for infrastructure projects and will benefit India's poorest of the poor. Once completed, they will improve India's economic conditions, and will help the poor of India lead a better life.

Second, according to India's constitution, these projects are under state government purview, not the federal government. Our policy differences are with the federal government -- denying India's states these funds will not lessen the differences we have with its federal government.

Finally, you have already issued a similar waiver for Pakistan. By not issuing the appropriate waiver authority for India, we are placed in the untenable 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 has peacefully reaffirmed the continuity of its government through free and fair elections. Such a stance is not, I believe, in the national interest of the United States.

I do believe it is in the national interest of the United States to allow these loans to proceed which will require you to exercise the authority Congress has granted and waive U.S. Opposition to World Bank loans for India. I urge you to do so.

Sincerely,
CAROLYN McCARTHY
Member of Congress