Prohibited Export-import Bank Programs in United States

Prohibited Export-import Bank Programs in the History of U.S. Economic Sanctions Imposed against China

Note: the status of this economic sanction is: Superseded

Date of the sanction(s): JANUARY 6, 1964

The Foreign Assistance Appropriation Act of 1964 prohibited the Export-Import Bank from engaging in financing transactions with those communist countries listed in section 620(f) of the Foreign Assistance Act of 1961, as amended (including China and Tibet), unless the President determined that it was in the national interest and reported so to Congress. The prohibition was reenacted annually in subsequent foreign aid appropriation legislation.

Some Observations

In 1968, the Export-Import Bank Act of 1945 was amended to make the ban and Presidential waiver authority permanent law. A special waiver is required for any transaction of $50 million or more.

Developments

In October 1986, section 2(b)(2) of the Export-Import Bank Act of 1945 was amended and restated to prohibit Export-Import Bank guarantees, insurance, or credits for any purchase by Marxist-Leninist countries. The People’s Republic of China was on the list of countries identified as being Marxist-Leninist. In addition, Tibet, occupied by Chinese troops since 1952, was on the list.

Sanctions by Authority:

Title III of the Foreign Assistance Appropriation Act of 1964 [P.L. 88-258]; Title III of the Foreign Assistance and Related Agencies Appropriation Act, 1965 [P.L. 88-634]; Title III of the Foreign Assistance and Related Agencies Appropriation Act, 1966 [P.L. 89-273]; Title III of the Foreign Assistance and Related Agencies Appropriation Act, 1967 [P.L. 89-691]; Sec. 2(b)(2) of the Export- Import Bank Act of 1945 [P.L. 79-173; 12 U.S.C. 635(b)(2)]; as amended and restated by Sec. 8 of the Export-Import Bank Act Amendments of 1986 [P.L. 99- 472]

Occasion(s) Detailed

See April 2, 1980, for waiver of sanction ; see also October 15, 1986, for continuation of sanction ; see also September 4, 1981, March 7, 1988, September 29, 1988, September 30, 1994, April 21, 1995, and April 21, 1995, for one-time waivers, where amount exceeds $50 million ; see also February 28, 1996, for modification of sanction

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

Resources

See Also