House Refuses to OK $18 Billion for IMF

In another rebuke to President Clinton’s foreign policy, the House refused Thursday to approve the administration’s request for a new $18-billion contribution to help the International Monetary Fund cope with the global economic crisis.

The action, taken without a vote on a parliamentary point-of-order, left unchanged the House Appropriations Committee’s decision to provide only a truncated $3.4-billion U.S. payment to the IMF.

However, Secretary of State Madeleine Albright said the administration remained hopeful that a Senate-House conference committee will relent and approve all or most of the request. The Senate earlier voted to appropriate the full $18 billion.

Rep. Nancy Pelosi (D-San Francisco), primary sponsor of the amendment that would have restored the full payment, said the Appropriations Committee’s version failed to meet “the global challenge.”

Pelosi’s proposal was ruled out of order because the IMF money had not been authorized, the first step in the cumbersome congressional budget procedure. She argued that the House often ignores the authorization requirement, noting that the $3.4 billion approved by the Appropriations Committee had not been authorized either.

But the House Republican leadership insisted on keeping the issue alive as a possible end-of-session bargaining chip. Some GOP lawmakers suggested that they might go along with the full $18 billion if it were approved by the conference committee.

Albright, in a speech delivered just hours before the House began consideration of the legislation containing IMF funds, said the $18 billion was crucial if the United States and its allies hope to alleviate the economic crises in Asia, Russia and Latin America.

“I will not argue that the IMF’s response to the crisis has been perfect, but it has stood between us and deeper problems, and it has helped keep smaller economies from being destroyed,” Albright said.

“If we want countries under threat to have a source of assistance other than ourselves, and if we want a strong voice in any reforms that are made, we must maintain our influence by paying our share,” she said. “At a time when our businesspeople, investors, farmers and workers are looking to Washington for leadership in calming a jittery world economy, it’s, frankly, hard for me to understand why the leadership of the House of Representatives--the people’s House--would fail to support IMF funding to the utmost.”

The IMF funds were contained in legislation that also provides $12.4 billion in foreign aid money. The action on Pelosi’s amendment came as the House was nearing final action on the aid bill.