[Federal Register Volume 61, Number 228 (Monday, November 25, 1996)]
[Notices]
[Pages 59923-59927]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29970]
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DEPARTMENT OF THE TREASURY
[Treasury Directive 27-04]
Organization and Functions of the Office of the Under Secretary
(International Affairs)
November 17, 1996.
1. Purpose. This Directive describes the organization and functions
of the Office of the Under Secretary (International Affairs).
2. The Under Secretary (International Affairs) advises and assists
the Secretary and Deputy Secretary in the formulation and execution of
U.S. international policy. These responsibilities include the
development of policies and guidance of the Department's activities in
the areas of international financial, economic and monetary affairs,
trade and investment policy, international debt, environmental and
energy policy, and U.S. participation in international financial
institutions. The Under Secretary helps coordinate United States
economic policies with finance ministries of the other G-7 industrial
nations (France, Germany, Japan, United Kingdom, Canada, and Italy) and
participates in preparing the President for annual G-7 economic
summits. Reporting to the Under Secretary is the Assistant Secretary,
including all of the functions of that office.
3. The Assistant Secretary (International Affairs) reports to the
Secretary through the Under Secretary (International Affairs) and the
Deputy Secretary. The incumbent is a principal adviser to the
Secretary, Deputy Secretary, and Under Secretary (International
Affairs) in their exercise of international financial, economic,
monetary, trade, investment, environmental and energy policies and
programs.
4. Organization Structure. The Assistant Secretary (International
Affairs) supervises the Office of Program Services, the Counselor for
Middle East Affairs, and six Deputy Assistant Secretaries:
International Monetary and Financial Policy; Asia, the Americas and
Africa; International Development, Debt and Environmental Policy; Trade
and Investment Policy; Eurasia and the Middle East; and Technical
Assistance Policy. The functions and responsibilities of the Deputy
Assistant Secretaries are defined by the Assistant Secretary. The
Deputy Assistant Secretaries serve under the policy guidance of the
Assistant Secretary. Each Deputy Assistant Secretary supervises a
number of offices managed by Directors. See the attached organization
chart.
5. The Deputy Assistant Secretary (International Monetary and
Financial Policy) supervises: the Office of International Banking and
Securities Markets; the Office of International Monetary Policy; the
Office of Foreign Exchange Operations; and the Office of Industrial
Nations and Global Analyses. The incumbent serves as a policy adviser
to the Assistant Secretary (International Affairs) and is responsible
for the following functions.
a. Formulates and implements Treasury policies concerning:
(1) maintenance and operation of a smoothly functioning
international monetary system;
(2) coordination of economic policy among industrial nations
through bilateral relationships, the Economic
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Summit/G-7 process, the G-10 finance ministries and central banks, and
the Organization for Economic Cooperation and Development (OECD)
framework;
(3) development and conduct of U.S. monetary and financial
relations with other nations;
(4) U.S. participation in the International Monetary Fund (IMF);
(5) foreign exchange operations and management of U.S. reserve
assets; and
(6) international capital markets.
b. Provides analyses and forecasts of economic, monetary and
financial developments in, and the policies of, the major industrial
nations and maintains representatives at U.S. embassies in key
industrial countries and at the OECD.
c. Analyzes and forecasts regional and global payment patterns and
their implications for the functioning of the monetary system and the
international economy.
d. Analyzes and assembles information relating to international
banking, portfolio investment and insurance matters and the
international practices of U.S. and foreign banks, their regulatory
authorities, and the impact of their activities on the operation of the
international monetary system.
e. Provides analyses relating to the formulation of coordinated
international economic policies among major industrial nations.
f. Prepares analyses and reports on current developments and near-
term prospects for the U.S. current-account balance and capital flows.
g. Develops analytic techniques for the study of current
international economic issues, uses macroeconomic models as tools for
analysis of issues, and provides econometrics modeling assistance to
other offices.
h. Provides direction to the Federal Reserve Bank of New York
concerning Exchange Stabilization Fund (ESF) operations under the
authority of the Secretary of the Treasury and other Treasury officials
who are delegated such authority to assure that operations of the
Federal Reserve System concerning the ESF are coordinated. In this
regard, the incumbent intensively monitors foreign exchange markets and
maintains continuing monitoring of gold markets and related
developments.
6. The Deputy Assistant Secretary (Asia, the Americas and Africa)
supervises: the Office of East and South Asian Nations; the Office of
African Nations; the Office of Latin American and Caribbean Nations;
and the Mexico Task Force. The incumbent serves as a policy adviser to
the Assistant Secretary (International Affairs) and is responsible for
the following functions.
a. Formulates, evaluates, and implements Treasury policy and
positions in the areas of international economics and finance dealing
with the developing and emerging market countries of Asia, the
Americas, and sub-Saharan Africa, and bilateral financial and economic
assistance policies concerning these countries.
b. Monitors the relations of individual developing and emerging
market countries of Asia, the Americas, and sub-Saharan Africa with the
international financial institutions (IFIs) and IFI programs in those
countries; reviews and evaluates relations with, and programs developed
by, the IFIs involving these developing and emerging market countries.
c. Formulates U.S. foreign economic policies and programs
concerning developing and emerging market countries of Asia, the
Americas, and sub-Saharan Africa as they relate to international
monetary stability and U.S. economic policy.
d. Develops, and monitors closely, policy recommendations regarding
U.S. financial relations with the developing and emerging market
countries of Asia, the Americas, and sub-Saharan Africa, including
overseeing compliance with the U.S.-Mexico financial agreements of
1995, timely payment of principal and interest due from Mexico and debt
repayment by other countries, rescheduling and other financial and
economic policy issues.
e. Analyzes financial sector liberalization programs and foreign
exchange systems in the developing and emerging market countries of
Asia, the Americas, and sub-Saharan Africa and, as delegated by the
Assistant Secretary, negotiates with various countries to encourage
greater openness in their financial sectors and market-oriented
exchange regimes.
f. Maintains acute awareness of financial and economic policies of
these developing and emerging market countries, including stationing of
Treasury representatives in key countries.
g. Assists senior Administration officials by identifying and
evaluating existing programs, issues and projects and by developing new
and viable approaches, techniques, and alternatives for programs
involving such considerations as:
(1) liberalization of capital markets;
(2) more effective utilization of bilateral and development funds
in the developing and emerging market countries of Asia, the Americas,
and sub-Saharan Africa;
(3) greater integration of these developing and emerging market
countries into the international financial and economic system;
(4) more effective utilization of multilateral channels for
assistance;
(5) development of stable fiscal and monetary practices as well as
a commitment to economic reform and adjustment in developing and
emerging market countries of Asia, the Americas, and sub-Saharan
Africa; and
(6) protection of the U.S. balance of payments and similar
international monetary matters affecting the finances of the developing
and emerging market countries of Asia, the Americas, and sub-Saharan
Africa.
7. The Deputy Assistant Secretary (International Development, Debt
and Environmental Policy) supervises: the Office of Multilateral
Development Banks (MDBs); and the Office of International Debt Policy.
The incumbent serves as a policy adviser to the Assistant Secretary
(International Affairs) and is responsible for the following functions.
a. Formulates, evaluates, and implements Treasury policy and
positions on a wide range of economic, financial, and environmental
issues pertaining to U.S. participation in the MDBs and international
debt policy. This includes continuing liaison with nongovernmental
organizations; foreign governments and international organizations;
other Federal agencies; and academic and research institutions.
b. Advises the Assistant Secretary (International Affairs) on
matters that concern:
(1) MDB financial, lending, and governance policies;
(2) MDB environmental policies and procedures;
(3) U.S. business and export opportunities through MDB lending;
(4) Treasury positions on specific MDB loans and technical
assistance proposals; and
(5) economic and financial issues pertaining to U.S. international
debt policy.
c. Develops and presents Treasury positions for Federal interagency
and international discussions concerning formulation of negotiating
objectives, strategies, and tactics, as well as implementation of MDB
replenishment, lending, and borrowing practices, programs, and
objectives.
d. Coordinates, within Treasury and with other agencies,
implementation of the Enterprise for the Americas Initiative including,
among other things, working with Congress to gain needed authorization
and appropriations, leading negotiations on bilateral debt reduction,
and carrying out Treasury's
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role as Chair of the President's Enterprise for the Americas Board.
e. Develops, evaluates and implements Treasury policies, positions,
and initiatives concerning commercial bank debt, capital market
developments, official bilateral debt, and U.S. Government bilateral
debt.
f. Reviews policies of international and interagency bodies
involved in development financing, such as the Development Assistance
Committee of the OECD, the United Nations (UN) Conference on Trade and
Development and other UN organizations, the Interagency Country Risk
Assessment System, the Overseas Private Investment Corporation, and the
National Advisory Council on International Monetary and Financial
Policies.
g. Provides technical advice on issues involved in international
debt management and policies.
h. Prepares policy guidance for U.S. participation in the Boards of
Directors of the MDBs and for use by the Secretary of the Treasury in
that official's role as U.S. Governor of the MDBs.
8. The Deputy Assistant Secretary (Trade and Investment Policy)
supervises: the Office of International Trade; the Office of
International Investment; the Office of Trade Finance; and the Office
of Financial Services Negotiations. The incumbent serves as a policy
adviser to the Assistant Secretary (International Affairs) and is
responsible for the following functions.
a. Formulates, evaluates, and implements Treasury positions on:
(1) U.S. trade and commercial policy in general;
(2) multilateral and bilateral trade negotiations;
(3) financial services negotiations, concerning such matters as the
General Agreement on Trade in Services;
(4) trade finance matters with respect to the Export-Import Bank,
the Commodity Credit Corporation, and international organizations, such
as the OECD;
(5) U.S. military sales abroad;
(6) trade programs, such as the General System of Preferences and
textile regimes;
(7) direct investment issues, including matters pertaining to
national security implications of mergers and acquisitions of U.S.-
based firms by foreign entities, expropriation, the Oversees Private
Investment Corporation, and bilateral investment treaties; and
(8) basic natural resources which are not energy-related, in
particular, non-fuel minerals and agricultural commodities.
b. Provides the staff chair of the interagency Committee on Foreign
Investment in the United States established by Executive Order 11858,
as amended, and chaired by Treasury.
c. Coordinates investigations under the Exon-Florio amendment
(section 5021 of Public Law 100-418) to the Defense Production Act to
determine the effects on national security of foreign acquisitions,
mergers, or takeovers of U.S. companies.
d. Drafts recommendations to the President on whether to prohibit
or suspend transactions which are investigated under Exon-Florio, and
drafts, in cooperation with the Office of the General Counsel,
regulations issued pursuant to Exon-Florio.
e. Develops and implements Treasury policies within the incumbent's
areas of responsibility which arise in such international fora as the
World Trade Organization (WTO), the IMF, the International Bank for
Reconstruction and Development, and various committees of the OECD.
f. Develops trade finance policy and provides the lead U.S.
Government negotiator on OECD Export Credit Arrangement issues; and
leads and coordinates interagency, U.S. Government implementation of
Arrangement policies and agreements.
g. Develops negotiating objectives and strategy, and provides the
lead U.S. negotiator on financial services, excluding insurance
matters, in the WTO.
9. The Deputy Assistant Secretary (Eurasia and the Middle East)
supervises: the Office of Central and Eastern European Nations; and the
Office of Middle Eastern and Central Asian Nations. The incumbent
serves as a policy adviser to the Assistant Secretary (International
Affairs) and is responsible for the following functions.
a. Formulates, evaluates, and implements Treasury policies and
positions in the areas of international economics and finance dealing
with countries in Central and Eastern Europe, the Middle East, North
Africa, and Central Asia, and bilateral financial and economic
assistance policies concerning these countries.
b. Advises the Assistant Secretary (International Affairs) on the
implications of financial and economic developments in these areas.
c. Develops U.S. foreign economic policies and programs with
respect to Central and Eastern Europe, the Middle East, North Africa,
and Central Asia as they relate to international monetary stability and
U.S. economic policy.
d. Formulates, and monitors closely, policy recommendations
regarding U.S. financial relations with Central and Eastern Europe, the
Middle East, North Africa, and Central Asia, including debt repayment
and rescheduling and other financial and economic policy issues.
e. Reviews and evaluates the relations with and programs developed
by IFIs and other Federal agencies involving countries of Central and
Eastern Europe, the Middle East, North Africa, and Central Asia.
f. Maintains acute awareness of financial and economic policy of
these countries including stationing of Treasury representatives in key
countries.
g. Identifies and evaluates existing projects, programs and issues,
and develops new and viable approaches, techniques, and alternatives to
assist Treasury officials in developing policies regarding Central and
Eastern Europe, the Middle East, North Africa, and Central Asia
involving such considerations as:
(1) more effective utilization of development funds;
(2) greater integration of countries of Central and Eastern Europe,
the Middle East, North Africa, and Central Asia into the international
financial and economic system;
(3) more effective utilization of multilateral channels for
assistance;
(4) development of stable fiscal and monetary practices and a
commitment to economic reform and adjustment; and
(5) protection of the U.S. balance of payments and similar
international monetary matters affecting the finances of countries of
Central and Eastern Europe, the Middle East, North Africa, and Central
Asia.
10. The Deputy Assistant Secretary (Technical Assistance Policy)
supervises the following offices: the Office of Technical Assistance
and the U.S.-Saudi Arabian Joint Commission Program Office. The
incumbent serves as a policy adviser to the Assistant Secretary
(International Affairs) on economic and financial technical assistance
and is responsible for the following functions.
a. Develops, evaluates and implements Treasury policies and
positions on economic and financial technical assistance to
transitional and developing countries including Eastern Europe and the
former Soviet Union.
b. Serves as U.S. coordinator of the U.S.-Saudi Arabian Joint
Commission on Economic Cooperation and chairs its Interagency Advisory
Policy Group.
c. Serves as principal Treasury representative in interagency
meetings and international negotiations concerning the provision of
economic and financial technical assistance to foreign countries.
[[Page 59926]]
d. Maintains close contact with the various IFIs and other
international organizations to monitor their technical assistance
efforts and coordinate U.S. bilateral financial and economic technical
assistance in order to maximize program effectiveness and optimize
program efficiency.
e. Provides timely and pertinent policy advice to senior Treasury
officials, including legislative proposals and administrative actions
that relate to technical assistance.
f. Manages multi-million dollar interagency allocation agreements
which provide bilateral economic and financial technical assistance to
foreign countries.
g. Provides oversight of all administrative and operational
functions of Treasury economic and financial technical assistance
programs, including authority to approve interagency and international
agreements for conducting technical assistance.
11. Counselor for Middle East Affairs serves as a policy adviser to
the Assistant Secretary (International Affairs) for specialized
financial and economic policy issues on the Middle East including
multilateral development, selected regional macroeconomic issues,
energy policy issues, and the financial interrelationship of the
various Middle East countries.
12 The Office of Program Services is responsible for performing
various management and administrative functions, such as personnel,
travel, budget, information technology, security, correspondence
control, distribution of reports, and responses to Freedom of
Information Act and General Accounting Office requests.
13. Cancellation. Treasury Directive 27-04, ``Organization and
Responsibilities of the Office of the Assistant Secretary
(International Affairs),'' dated November 19, 1986, is superseded.
14. Expiration Date. This Directive expires three years after the
date of issuance unless cancelled or superseded prior to that date.
15. Office of Primary Interest. The Office of the Under Secretary
(International Affairs).
Jeffrey R. Shafer,
Under Secretary (International Affairs).
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[FR Doc. 96-29970 Filed 11-22-96; 8:45 am]
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