S.Amdt. 5404

1. Adds SEC. 1208. SUPPORT FOR AN IRAQ OIL TRUST on page 342, between lines 10 and 11

   Adds a sectionPrinted page

   Inserted: SEC. 1208. SUPPORT FOR AN IRAQ OIL TRUST.

   Inserted: (a) Statement of Policy.--It is the policy of the United States that--

   Inserted: (1) the people of Iraq should benefit directly from a share of the revenues generated by the hydrocarbon resources of their country; and

   Inserted: (2) the United States Government should present a plan and provide capacity and economic assistance for the implementation of an Iraq oil trust.

   Inserted: (b) Sense of Congress.--It is the sense of Congress that--

   Inserted: (1) the future of Iraq's oil reserves remains at the heart of political reconciliation in Iraq;

   Inserted: (2) ensuring that individual Iraqis benefit directly from hydrocarbon revenues is critical to promoting reconciliation and facilitating sustainable stability in Iraq;

   Inserted: (3) the development and implementation of an oil trust could provide significant benefits to Iraq and its citizens, including by--

   Inserted: (A) helping to demonstrate the values at the heart of democratic governance by giving Iraqi citizens a direct stake in the responsible and transparent management of the hydrocarbon resources of Iraq and the use and distribution of hydrocarbon revenues;

   Inserted: (B) helping to diffuse the degree and concentration of control of the revenues generated from hydrocarbon resources, thereby reducing the opportunity for and magnitude of corruption;

   Inserted: (C) facilitating "bottom-up" private sector development, which will be critical to Iraq's future prosperity and economic diversity, by putting revenues from the oil resources of Iraq directly in the hands of its citizens;

   Inserted: (D) helping to alleviate the incentive for smuggling or sabotage by providing individual citizens a direct stake in the amount of Iraqi oil that is legally produced and sold;

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   Inserted: (E) contributing to sustainable security by providing individuals monetary-resource alternatives to cooperating with militias, extremists, and other extra-legal entities;

   Inserted: (F) providing additional income directly to individual citizens, thereby stimulating entrepreneurship and reducing the reliance on the ability of the central and provincial governments to deliver basic services and execute their budgets; and

   Inserted: (G) serving as a model for revenue distribution to other resource-rich countries in the Middle East; and

   Inserted: (4) the United States should provide assistance to Iraq for implementation of an oil trust.

   Inserted: (c) United States Assistance to Iraq.--

   Inserted: (1) Purpose.--The purpose of this subsection is to stipulate limitations on United States assistance to Iraq for reconstruction purposes.

   Inserted: (2) Limitation.--

   Inserted: (A) In general.--Unless the Secretary of State submits to the appropriate congressional committees the certification described in subsection (d) within 90 days after the date of the enactment of this Act, 10 percent of United States assistance described in subparagraph (D) that is otherwise available to Iraq through the Economic Support Fund shall be withheld.

   Inserted: (B) Additional withholding of funds.--An additional 10 percent of United States assistance described in subparagraph (D) that is otherwise available to Iraq through the Economic Support Fund shall be withheld for each additional 30 days after funds are withheld under subparagraph (A) until the Secretary of State makes the certification described in subsection (d).

   Inserted: (C) Release of withheld funds.--Any funds withheld under subparagraphs (A) and (B) shall be made available upon submission by the Secretary of State of the certification described in subsection (d).

   Inserted: (D) Covered assistance.--The assistance referred to in subparagraphs (A) and (B) are the following funds:

   Inserted: (i) Provincial Reconstruction Development Council Funds.

   Inserted: (ii) Operations and Maintenance Sustainment.

   Inserted: (iii) Targeted Development Program.

   Inserted: (d) Certification.--The certification referred to in subsection (c) is a certification submitted by the Secretary of State to the appropriate congressional committees that--

   Inserted: (1) certifies that representatives of the United States Government have presented to Government of Iraq representatives an oil trust plan that includes--

   Inserted: (A) background on oil trusts, including those currently used by sovereign nations or territories and states within nations; and

   Inserted: (B) options for different types of oil trusts that could be implemented in Iraq; and

   Inserted: (2) includes a discussion on the steps necessary to implement an oil trust.

   Inserted: (e) Appropriate Congressional Committees Defined.--In this section, the term "appropriate congressional committees" means--

   Inserted: (1) the Committee on Armed Services, the Committee on Foreign Relations, and the Committee on Appropriations of the Senate; and

   Inserted: (2) the Committee on Armed Services, the Committee on Foreign Affairs, and the Committee on Appropriations of the House of Representatives.

   Original wording

   On page 342, between lines 10 and 11, insert the following:

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As printed