Mdb Loans in United States

Modified: Suspension on Mdb Loans in the History of U.S. Economic Sanctions Imposed against China

Note: the date of this economic sanction is: JANUARY 1990

President Bush reported to Congress that in “January 1990, the Administration modified its position for humanitarian reasons and decided that the United States would support a limited number of World Bank loans to China that [met] basic human needs.” The United States supported a $30 million IDA credit for earthquake reconstruction in February, and supported additional credit from IDA for agricultural development in February and for education in March [32]. On May 29, 1990, the World Bank approved a $300 million IDA loan for China. The new loan was for planting trees and fell within the category of addressing basic human needs, a condition attached after the June 1989 deferment on new loans. Two other IDA loans for agricultural development projects, totalling $214 million, were made that summer with United States support [33].

Some Observations

In subsequent years, the United States has supported numerous MDB loans to China, considering them as meeting basic human needs. In 1992, the United States supported $377 million in World Bank loans and $103.6 million in Asian Development Bank/Asian Development Fund (ADB/ADF) loans to China. In 1993, the United States supported $805 million in World Bank loans and $140 million in ADB/ADF loans. In 1994, the United States supported $1.62 billion in World Bank loans and $318.45 million in ADB/ADF loans. In the first three quarters of 1995, the United States supported $274.5 million in World Bank loans and $167 million in ADB/ADF loans to China [34].

Occasion(s) Detailed

See June 20, 1989, for original sanction ; see also Table I (p. 38), for record of U.S. abstentions or “no” votes on MDB loans to China

Note: Based on the China: U.S. Economic Sanctions Report.

Resources

Notes and References

1. 32 U.S. Congress. House. “Message From the President Transmitting a Report on Economic Sanctions Against China,” 101st Cong., 2d Sess. House Doc. 101-192. 1990. p. 18.

   33 “World Bank Clears Loan for China.” Washington Post, May 30, 1990. p. A17.

   34 Compiled from reports the Department of the Treasury filed quarterly, as required by Section 701 of the International Financial Institutions Act, with the Senate Committee on Foreign Relations and the House Committee on Banking and Financial Services.