East Timor Transition to Independence Act of 2000

Summary: Sets forth requirements with respect to the provision to East Timor of bilateral assistance, multilateral assistance, Peace Corps assistance, certain trade and investment assistance, scholarships for East Timorese students, and security assistance.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``East Timor Transition to 
Independence Act of 2000''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) On August 30, 1999, the East Timorese people voted 
        overwhelmingly in favor of independence from Indonesia in 
        elections organized by the United Nations Assistance Mission in 
        East Timor (UNAMET). Pro-integration militias, with the support 
        of the Indonesian military, attempted to prevent then 
        retaliated against this vote by launching a campaign of terror 
        and violence. As a result, over 500,000 people, or 
        approximately \2/3\ of the population, were displaced. Hundreds 
        were murdered, and many were raped.
            (2) The violent campaign devastated East Timor's 
        infrastructure, including its schools, water and power 
        supplies, and transportation and communications systems. The 
        militias destroyed or severely damaged 60 to 80 percent of 
        public and private property across East Timor. Virtually all 
        vestiges of government, public services (including sanitation), 
        and public security in East Timor also collapsed.
            (3) The International Force for East Timor (INTERFET) 
        entered East Timor in September 1999 and successfully restored 
        order. INTERFET was organized and led by Australia, with the 
        active participation of the Philippines, South Korea, New 
        Zealand, and Thailand.
            (4) On October 25, 1999, the United Nations Security 
        Council established a new mandate for its operations in East 
        Timor. The United Nations Transitional Administration for East 
        Timor (UNTAET), which replaced UNAMET, was directed to provide 
        overall administration of East Timor, guide the people of East 
        Timor in the establishment of a new democratic government, and 
        maintain security and order.
            (5) The leadership of UNTAET and the East Timorese 
        leadership currently anticipate that East Timor will become an 
        independent nation in mid- to late-2001.
            (6) East Timor is one of the poorest places in Asia. A 
        large percentage of the population live below the poverty line, 
        only 20 percent of East Timor's population is literate, most of 
        East Timor's people remain unemployed, the annual per capita 
        Gross National Product is $340, and life expectancy is only 56 
        years.
            (7) The World Bank and the United Nations have estimated 
        that it will require $300,000,000 in development assistance 
        over the next three years in order to meet East Timor's basic 
        development needs. Donor countries, including the United 
        States, have pledged a total of $173,000,000 to the Trust Fund 
        established by the World Bank to manage the distribution of 
        donor funds in East Timor, and $37,000,000 to the Trust Fund of 
        UNTAET.
            (8) The United States has been a leading contributor to the 
        development of East Timor since 1994. As a result of the United 
        States Agency for International Development's funding a 
        successful coffee cooperative project, small farmers have been 
        able to enter the cash economy and to increase the amount of 
        money earned from the coffee they grow.
            (9) The Foreign Operations, Export Financing, and Related 
        Programs Appropriations Act, 2000, provided $25,000,000 for 
        East Timor. Utilizing these funds, the United States Agency for 
        International Development has helped to restart the coffee 
        cooperative project after it ceased to operate during the 
        militia rampage, funded job creation programs for East 
        Timorese, contributed to UNTAET and to the World Bank Trust 
        Fund for East Timor, supported community organizations, and 
        funded forensics, human rights, independent media, and judicial 
        development projects.

SEC. 3. SENSE OF CONGRESS RELATING TO SUPPORT FOR EAST TIMOR.

    It is the sense of Congress that the United States--
            (1) should support formation of broad-based democracy in 
        East Timor, and help lay the groundwork for East Timor's 
        economic recovery, the strengthening of East Timor's security, 
        and the promotion of East Timor's ability to play a positive 
        role in the Asia-Pacific region and in international 
        organizations.
            (2) should continue to support the provision of bilateral 
        and multilateral assistance to East Timor, with such assistance 
        targeted to creation of jobs, promotion of civil society, 
        preparation for East Timor's first elections, development of 
        East Timor's educational and health care systems, and support 
        for East Timor's judicial system and the truth and 
        reconciliation process;
            (3) should begin to lay the groundwork, prior to East 
        Timor's independence, for an equitable future trade and 
        investment relationship with East Timor, including trade and 
        investment promotion activities to be carried out by the 
        Overseas Private Investment Corporation, the Trade and 
        Development Agency, and the Export-Import Bank of the United 
        States;
            (4) should officially open a diplomatic mission in East 
        Timor as soon as possible to ensure that the United States can 
        continue to play a leadership role in building East Timor's 
political and economic future; and
            (5) should support the efforts by the United Nations to 
        ensure justice and accountability related to past atrocities in 
        East Timor through United Nations investigations, United 
        Nations support for the development of East Timor's judicial 
        system, and the possible establishment of an international 
        tribunal for East Timor.

SEC. 4. BILATERAL ASSISTANCE.

    (a) Authorization.--The President, acting through the Administrator 
of the United States Agency for International Development, is 
authorized and encouraged to provide assistance under the Foreign 
Assistance Act of 1961 (22 U.S.C. 2151 et seq.) and other applicable 
laws to support the transition to democracy and self-government in East 
Timor.
    (b) Additional Requirements.--Assistance provided pursuant to 
subsection (a)--
            (1) shall support the development of civil society, 
        including nongovernmental organizations in East Timor;
            (2) shall promote the development of an independent news 
        media;
            (3) shall support job creation and economic development in 
        East Timor, including support for microenterprise programs and 
        technical education, as well as environmental protection and 
        education programs;
            (4) shall fund efforts to promote reconciliation, conflict 
        resolution, and prevention of further conflict with respect to 
        East Timor, including establishing accountability for past 
        gross human rights violations;
            (5) shall support the repatriation and reintegration of 
        refugees into East Timor; and
            (6) shall support political party development, voter 
        education, voter registration and other activities in support 
        of free and fair elections in East Timor.
    (c) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section $25,000,000 for each of the fiscal years 
        2001, 2002, and 2003.
            (2) Availability.--Amounts appropriated pursuant to the 
        authorization of appropriations under paragraph (1) are 
        authorized to remain available until expended.

SEC. 5. MULTILATERAL ASSISTANCE.

    The President shall instruct the United States executive director 
at each international financial institution to which the United States 
is a member, in particular the International Bank for Reconstruction 
and Development and the Asian Development Bank, to use the voice, vote, 
and influence of the United States to ensure that the institution 
provides timely and appropriate resources to help East Timor to 
continue to develop its economy, meet basic human needs, and evolve 
toward economic self-sufficiency, pluralism, and democracy.

SEC. 6. PEACE CORPS ASSISTANCE.

    (a) Authorization.--The President, acting through the Director of 
the Peace Corps, is authorized to carry out a program in East Timor 
under the Peace Corps Act (22 U.S.C. 2501 et seq.) which shall include 
the use of Peace Corps volunteers--
            (1) to provide English language and other technical 
        training for individuals in East Timor as well as other 
        activities which promote education, economic development, and 
        economic self-sufficiency; and
            (2) to quickly address immediate assistance needs in East 
        Timor using the Peace Corps Crisis Corps, to the extent 
        practicable.
    (b) Authorization of Appropriations.--
            (1) In general.--In addition to amounts otherwise available 
        to carry out subsection (a), there are authorized to be 
        appropriated $2,000,000 for each of the fiscal years 2001, 
        2002, and 2003 to carry out such subsection.
            (2) Availability.--Amounts appropriated pursuant to the 
        authorization of appropriations under paragraph (1) are 
        authorized to remain available until expended.

SEC. 7. TRADE AND INVESTMENT ASSISTANCE.

    (a) OPIC.--Beginning on the date of the enactment of this Act, the 
President shall initiate negotiations with the United Nations 
Transitional Administration for East Timor (UNTAET), the National 
Council of East Timor, and the government of East Timor (after 
independence for East Timor)--
            (1) to apply to East Timor the existing agreement between 
        the Overseas Private Investment Corporation and Indonesia, or
            (2) to enter into a new agreement authorizing the Overseas 
        Private Investment Corporation to carry out programs with 
        respect to East Timor,
in order to expand United States investment in East Timor.
    (b) Trade and Development Agency.--
            (1) In general.--The Director of the Trade and Development 
        Agency is authorized to carry out projects in East Timor under 
        section 661 of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2421).
            (2) Authorization of appropriations.--
                    (A) In general.--There are authorized to be 
                appropriated to carry out this subsection $1,000,000 
                for each of the fiscal years 2001, 2002, and 2003.
                    (B) Availability.--Amounts appropriated pursuant to 
                the authorization of appropriations under subparagraph 
                (A) are authorized to remain available until expended.
    (c) Export-Import Bank.--The Export-Import Bank of the United 
States shall expand its activities in connection with exports to East 
Timor.

SEC. 8. GENERALIZED SYSTEM OF PREFERENCES.

    (a) Sense of Congress.--It is the sense of Congress that the 
President should encourage the United Nations Transitional 
Administration for East Timor (UNTAET), in close consultation with the 
National Council of East Timor, to seek to become eligible for duty-
free treatment under title V of the Trade Act of 1974 (19 U.S.C. 2461 
et seq.; relating to generalized system of preferences).
    (b) Technical Assistance.--The United States Trade Representative 
and the Commissioner of the United States Customs Service are 
authorized to provide technical assistance to UNTAET, the National 
Council of East Timor, and the government of East Timor (after 
independence for East Timor) in order to assist East Timor to become 
eligible for duty-free treatment under title V of the Trade Act of 
1974.

SEC. 9. BILATERAL INVESTMENT TREATY.

    It is the sense of the Congress that the President should seek to 
enter into a bilateral investment treaty with the United Nations 
Transitional Administration for East Timor (UNTAET), in close 
consultation with the National Council of East Timor, in order to 
establish a more stable legal framework for United States investment in 
East Timor.

SEC. 10. SCHOLARSHIPS FOR EAST TIMORESE STUDENTS.

    There are authorized to be appropriated to the Department of State, 
$1,000,000 for the fiscal year 2002 and $1,000,000 for the fiscal year 
2003 to carry out an East Timorese scholarship program under the 
authorities of the United States Information and Educational Exchange 
Act of 1948, the Mutual Educational and Cultural Exchange Act of 1961, 
Reorganization Plan Number 2 of 1977, and the National Endowment for 
Democracy Act. The Department of State shall make every effort to 
identify and provide scholarships and other support to East Timorese 
students interested in pursuing undergraduate and graduate studies at 
institutions of higher education in the United States.

SEC. 11. PLAN FOR ESTABLISHMENT OF DIPLOMATIC FACILITIES IN EAST TIMOR.

    The Secretary of State shall develop a detailed plan for the 
official establishment of a diplomatic mission in Dili, East Timor.

SEC. 12. SECURITY ASSISTANCE FOR EAST TIMOR.

    (a) Authorization.--Beginning on and after the date on which the 
President transmits to the Congress a certification described in 
subsection (b), the President is authorized--
            (1) to transfer excess defense articles under section 516 
        of such Act (22 U.S.C. 2321j) to East Timor in accordance with 
        such section; and
            (2) to provide military education and training under 
        chapter 5 of part II of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2347 et seq.) for the armed forces of East Timor in 
        accordance with such chapter.
    (b) Certification.--A certification described in this subsection is 
a certification that--
            (1) East Timor has established an independent armed forces; 
        and
            (2) the assistance proposed to be provided pursuant to 
        subsection (a)--
                    (A) is in the national security interests of the 
                United States; and
                    (B) will promote both human rights in East Timor 
                and the professionalization of the armed forces of East 
                Timor.

SEC. 13. REPORTING REQUIREMENT.

    (a) In General.--Not later than three months after the date of the 
enactment of this Act, and every six months thereafter until January 1, 
2004, the Secretary of State, in coordination with the Administrator of 
the United States Agency for International Development, the Secretary 
of the Treasury, the United States Trade Representative, the Secretary 
of Commerce, the Overseas Private Investment Corporation, the Director 
of the Trade and Development Agency, the President of the Export-Import 
Bank of the United States, and the Director of the Peace Corps, shall 
prepare and transmit to the Committee on International Relations of the 
House of Representatives and the Committee on Foreign Relations of the 
Senate a report that contains the information described in subsection 
(b).
    (b) Information.--The report shall include--
            (1) significant developments in United States relations 
        with East Timor;
            (2) developments in East Timor's political and economic 
        situation in the period covered by the report, including an 
        evaluation of any elections occurring in East Timor during this 
        period and the refugee reintegration process in East Timor;
            (3) activities undertaken in East Timor by the 
        International Bank for Reconstruction and Development and the 
        Asian Development Bank, and an evaluation of the effectiveness 
        of these activities;
            (4) the status of United States trade and investment 
        relations with East Timor, including a detailed analysis of any 
        trade and investment-related activity supported by the Overseas 
        Private Investment Corporation, the Export-Import Bank of the 
        United States, and the Trade and Development Agency during the 
        period of time since the previous report and the status of any 
        negotiations with the United Nations Transitional 
        Administration for East Timor (UNTAET) or East Timor to 
        facilitate the operation of the United States trade agencies in 
        East Timor;
            (5) the nature and extent of United States-East Timor 
        cultural, education, scientific, and academic exchanges, both 
        official and unofficial, and any Peace Corps activities;
            (6) with respect to the first report, a detailed plan for 
        the establishment of diplomatic facilities in East Timor in 
        accordance with section 11, which may be submitted in 
        classified or unclassified form, and including a timetable for 
        the official opening of a facility in Dili, the personnel 
        requirements for the mission, the estimated costs for 
        establishing the facility, and its security requirements; and
            (7) with respect to the first report, a 3-year plan for 
        United States foreign assistance to East Timor in accordance 
        with section 4, prepared by the Administrator of the United 
        States Agency for International Development, which outlines the 
        goals for United States foreign assistance to East Timor during 
        this 3-year period, and in subsequent reports, describes in 
        detail the expenditure of United States bilateral foreign 
        assistance during the period covered by the report.