IMF, U.N. Funding Approved by U.S. House Panel (fwd)

[Robert Weissman <rob@essential.org>]

Tuesday March 24 2:06 PM EST

IMF, U.N. Funding Approved by U.S. House Panel

WASHINGTON (Reuters) - The U.S. House Appropriations Committee approved 
legislation Tuesday to pay U.S. bills to the
International Monetary Fund and a portion of Washington's arrears to the 
United Nations.

But lawmakers said the bill's future was in doubt because Republicans 
planned to add controversial anti-abortion measures to the
funding package and the Clinton administration voiced its own concerns about 
the bill.

The committee approved $18 billion for the IMF and $505 million for the 
United Nations by voice vote after two hours of debate.

In addition to providing the money, the legislation will impose tough reform 
conditions on the IMF, some of which drew renewed
criticism from Treasury Secretary Robert Rubin.

"I ask that you consider several very serious concerns with some of the 
provisions," Rubin said in a letter to House Appropriations
Committee Chairman Bob Livingston.

"Unfortunately, the bill's proposed language is still very problematic and, 
in the end, we believe it would be unworkable," Rubin said
in the letter, dated March 24 and released by the committee.

One provision in the bill would require the IMF to ensure that countries 
comply with international trade agreements and treat foreign
and domestic creditors equally. If the IMF does not comply, U.S. funding may 
be cut off.

Another provision would require the IMF to release edited minutes from 
executive board meetings along with internal reports on loan
programs.

The legislation will also urge the IMF to focus more on workers' rights, 
encourage countries to reduce trade barriers, and urge Japan
to boost domestic demand-led growth.

The bill now advances to the full House, where a vote is expected as early 
as next week. House Republican leaders have vowed to
attach anti-abortion provisions to the package.

The abortion issue killed funding for the IMF and United Nations last 
November and could derail the package again this year because
it would drive away Democrats and invite a presidential veto.