"White House, Lawmakers Reach Accord on IMF Bill" (fwd)

[Robert Weissman <rob@essential.org>]

White House, Lawmakers Reach Accord on IMF Bill
Funding Legislation Gains Stronger Wording on Workers' Rights, Other Issues

By Paul Blustein
Washington Post Staff Writer
Thursday, March 5, 1998; Page A11

The Clinton administration reached agreement yesterday with leading members 
of the House banking committee on legislation providing $18 billion to the 
International Monetary Fund, giving an important boost to the 
administration's effort to replenish the IMF's depleted coffers.

The compromise bill gained the support of liberals who had previously 
indicated their opposition to IMF funding, including House Minority Whip 
David E. Bonior (D-Mich.) and Rep. Barney Frank (D-Mass.), a ranking member 
of the Banking and Financial Services Committee. They backed the proposal 
after the Treasury Department agreed to strengthened language calling on the 
United States to use its influence at the IMF to secure greater attention 
for workers' rights and other issues in countries receiving IMF bailouts.

The bill is expected to win panel approval easily this morning, committee 
staffers said, clearing its first major hurdle.

"This strengthens the administration's position substantially, because it's 
going to show very widespread Democratic support, and coupled with the 
commitment of some of the Republicans, that's quite good news," said Daniel 
Tarullo, President Clinton's assistant for international economic affairs.

But IMF funding still faces serious obstacles, especially among conservative 
members of the Republican majority who are insisting on attaching 
antiabortion language that the White House has threatened to veto. GOP 
leaders in both the House and Senate have warned in recent days that to 
secure passage of the IMF bill, Clinton will have to negotiate on a 
provision that would restrict U.S. financial support for international 
organizations that promote or provide abortions.

Treasury Secretary Robert E. Rubin, his deputy Lawrence H. Summers, and 
Federal Reserve Board Chairman Alan Greenspan have been exhorting Congress 
repeatedly in recent days to pass an IMF funding bill as soon as possible, 
because the 182-nation organization has committed all but about $40 billion 
of its usable resources in international rescues of Thailand, Indonesia and 
South Korea.

Committee Chairman Jim Leach (R-Iowa) agreed with the panel's Democrats on 
provisions instructing the U.S. representative on the IMF board to press the 
fund for changes in policy. The United States would encourage the fund to 
foster collective bargaining rights in countries it aids, for example.

The bill also includes provisions to promote greater "transparency" in IMF 
operations, particularly by making public the agreements the IMF strikes 
with borrowing countries. The bill also calls for a business-labor advisory 
committee to oversee progress toward reform at the IMF.

"The deal's on," said Frank, who called the bill a step toward "fundamental 
improvements in the way we deal with international finance."


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