Congressional Statements

McDermott urges Clinton to free up World Bank loans to India

Letter to President Clinton
November 12, 1999

The Honorable William Jefferson Clinton
President of the United States
The White House
Washington, DC 20500

Dear Mr. President:

I would like to applaud your recent decision to invoke the waiver authority contained in this year's Defense Appropriations bill regarding to commercial and financial sanctions against India. I firmly believe that our nation's continuing prosperity is linked to nations such as India. I am troubled however that the United States continues to oppose World Bank loans to India. I hope that you will exercise your authority and free up these loans as you have other sanctions.

Currently, there are $1.235 billion worth of World Bank loans earmarked for India that are held up due to American opposition. Primarily, these loans would fund state highway and power projects. Since in this modern age, cheap and easy access to electricity and mobility are basic human needs, it is hard to see how we can sustain an opposition to these loans.

Beyond the humanitarian concerns, I hope that you would consider two other points. The first is that these loans would go directly to state governments, rather than the central government. Our policy disputes are with the central government, and denying India's states funds, we are not having the maximum impact on the people who we have the disagreements with. We are delaying much needed public works projects with very little diplomatic results to show for our efforts. The second point that I would ask you to consider is that most of these loans would fund projects that American companies would be involved in. For instance, the Enron Corporation is in a very good position to take a major role in building up India's power capacity from its abysmally low levels. The Caterpillar Company is likewise in an excellent position to complete a large portion of the transportation upgrades that India will need. By freeing up these loans, our economy and our relations with India can only benefit.

I do not believe it is in the national or commercial interests of the United States to deny these loans. I hope that you will fully exercise the Congressional authority that you have and drop U.S. opposition to the World Bank loans for India. I appreciate your consideration of this issue, and hope that you will contact me if you have any questions or concerns. I look forward to your upcoming visit to India, and know that it will be a resounding success and can only strengthen ties between our country and theirs.

Sincerely,
Jim McDermott
Member of Congress