U.S. Sen says Congress to support Brazil aid plan
Reuters, Tuesday, November 10, 1998 at 22:15
By Phil Stewart
BRASILIA, Nov 10 (Reuters) - U.S. contributions to a
multibillion-dollar rescue package for crisis-torn Brazil
should win support in the U.S. Congress, a senior U.S.
Democratic senator said on Tuesday.
Sen. Joseph Lieberman, on a two-day visit to Brazil, told
reporters that President Bill Clinton was ready to loan Brazil
sorely needed funds to help keep its economy afloat and prevent
a global financial slowdown.
"There are two places in the world where we want to kind of
draw the line, one of them is Japan and the other is here," he
said.
The Connecticut lawmaker said that Congress would respect
the Clinton administration's plans to dip into a special
Treasury-controlled fund called the Exchange Stabilization Fund
to help pay its share of the Brazilian aid package.
Use of the fund, which can be tapped by the administration
without Congressional approval, was sharply criticized by
lawmakers when it was employed to orchestrate Mexico's bailout
package some three years ago.
"It was quite controversial then, there was a lot of
criticism from Congress," Lieberman said, referring to the
Mexican bailout.
"But because of both the confidence in the leadership here
in Brazil and also because we saw how well it worked in
Mexico... this is different."
Brazil is expected hammer out a loan agreement this week
with the International Monetary Fund, which should pull
together between $30 billion and $45 billion in loans from
global lending agencies and the world's industrial nations.
Lieberman, who referred to the "imminence" of the loan
agreement, said he was encouraged by Brazil's commitment to
swallow harsh fiscal reforms during his his meetings with
Brazilian President Fernando Henrique Cardoso and his top
cabinet officials.
"These are a very able, committed people," he said.
"I have great confidence (Brazil's) Congress will
understand the seriousness of the situation and that the IMF
support, in that sense, might never have to be used and would
work as a kind of psychological insurance policy."
The Democratic lawmaker also said Brazil's ongoing
financial turmoil may actually boost support in Congress to
give President Clinton "fast-track" trade negotiating
authority, which is seen as crucial for the U.S. to strengthen
trade ties with Latin America.
"It may be that one of the positive results of the economic
troubles here now is that there will be a greater appreciation
of the importance of our relationship with Brazil and that it
has to grow," he said.
Lieberman, who was scheduled to leave Brazil late Tuesday
to attend a climate-change summit in Argentina, said the
Clinton administration would likely present its case for
fast-track to Congress early next year.
"It's not going to be easy, but I believe that we're going
to pass it," he said.
The U.S. currently sends 20 percent of its exports to Latin
America and holds $37 billion in foreign direct investment in
Brazil.
Copyright 1998, Reuters News Service |
