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Although the Administration appreciates the Financial Services
Committee's support of U.S. participation in the new replenishments
of the Asian Development Fund and the International Fund for
Agricultural Development, the Administration objects to various
other provisions in H.R. 2604, and therefore opposes passage
of the bill in its current form.
In particular, the Administration opposes those provisions
which purport to direct the Secretary of the Treasury to issue
specified policy instructions to the U.S. Executive Directors
at international financial institutions (IFIs). These provisions
would unconstitutionally infringe upon the power of the President
to represent the United States in its relations with other
nations. While the Administration agrees with some of the
policies outlined in the bill, not least the objective of
greater IFI accountability and transparency, such mandated
voting requirements actually minimize U.S. effectiveness with
IFI managements and undermine support from other shareholders
in our efforts to advance U.S. policy objectives at the institutions.
Finally, H.R. 2604 establishes new burdensome, time consuming
reporting requirements, which the Administration opposes.
The Administration would hope to work cooperatively with Congress
to formulate authorizing legislation that does not intrude
on Executive Branch prerogatives, is more tailored, but acknowledges
Congressional international financial policy concerns.
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