5, and on March 16, 1999, the 
        House of Representatives adopted House Concurrent Resolution 
        24, both of which resolved that: ``any attempt to establish 
        Palestinian statehood outside the negotiating process will 
        invoke the strongest congressional opposition.''.
            (4) On July 25, 2000, Palestinian Chairman Arafat and 
        Israeli Prime Minister Barak issued a joint statement agreeing 
        that the ``two sides understand the importance of avoiding 
        unilateral actions that prejudice the outcome of negotiations 
        and that their differences will be resolved in good-faith 
        negotiations''.

SEC. 3. POLICY OF THE UNITED STATES.

    It shall be the policy of the United States to oppose the 
unilateral declaration of a Palestinian state, to withhold diplomatic 
recognition of any Palestinian state that is unilaterally declared, and 
to encourage other countries and international organizations to 
withhold diplomatic recognition of any Palestinian state that is 
unilaterally declared.

SEC. 4. MEASURES TO BE APPLIED IF A PALESTINIAN STATE IS UNILATERALLY 
              DECLARED.

    (a) Measures.--Notwithstanding any other provision of law, 
beginning on the date that a Palestinian state is unilaterally declared 
and ending on the date such unilateral declaration is rescinded or on 
the date the President notifies the Committee on International 
Relations of the House of Representatives and the Committee on Foreign 
Relations of the Senate that an agreement between Israel and the 
Palestinian Authority regarding the establishment of a Palestinian 
state has been concluded, the following measures shall be applied:
            (1) Downgrade in status of palestinian office in the united 
        states.--
                    (A) Notwithstanding any other provision of law, it 
                shall be unlawful for the government of any 
                unilaterally declared Palestinian state, the 
                Palestinian Authority, the Palestine Liberation 
                Organization, any of its constituent groups, or any 
                successors thereof, to establish or maintain an office, 
                headquarters, premises, or other facilities or 
                establishments within the jurisdiction of the United 
                States.
                    (B) Nothing in this paragraph shall be construed to 
                preclude--
                            (i) the establishment or maintenance of a 
                        Palestinian information office in the United 
                        States, operating under the same terms and 
                        conditions as the Palestinian information 
                        office that existed prior to the Oslo Accords; 
                        or
                            (ii) diplomatic contacts between 
                        Palestinian officials and United States 
                        counterparts.
            (2) Prohibition on united states assistance to a 
        unilaterally declared palestinian state.--United States 
        assistance may not be provided to the government of a 
        unilaterally declared Palestinian state, the Palestinian 
        Authority, or to any successor or related entity.
            (3) Prohibition on united states assistance to the west 
        bank and gaza.--United States assistance (except humanitarian 
        assistance) may not be provided to programs or projects in the 
        West Bank or Gaza.
            (4) Authority to withhold payment of united states 
        contributions to international organizations that recognize a 
        unilaterally declared palestinian state.--The President is 
        authorized to--
                    (A) withhold up to 10 percent of the United States 
                assessed contribution to any international organization 
                that recognizes a unilaterally declared Palestinian 
                state; and
                    (B) reduce the United States voluntary contribution 
                to any international organization that recognizes a 
                unilaterally declared Palestinian state up to 10 
                percent below the level of the United States voluntary 
                contribution to such organization in the fiscal year 
                prior to the fiscal year in which such organization 
                recognized a unilaterally declared Palestinian state.
            (5) Opposition to lending by international financial 
        institutions.--The Secretary of the Treasury shall instruct the 
        United States Executive Director at each international 
        financial institution (as defined in section 1701(c)(2) of the 
        International Financial Institutions Act) to use the voice, 
        vote, and influence of the United States to oppose--
                    (A) membership for a unilaterally declared 
                Palestinian state in such institution, or other 
                recognition of a unilaterally declared Palestinian 
                state by such institution; and
                    (B) the extension by such institution to a 
                unilaterally declared Palestinian state of any loan or 
                other financial or technical assistance.
            (6) Limitation on use of funds to extend united states 
        recognition.--No funds available under any provision of law may 
        be used to extend United States recognition to a unilaterally 
        declared Palestinian state, including, but not limited to, 
        funds for the payment of the salary of any ambassador, consul, 
        or other diplomatic personnel to such a unilaterally declared 
        state, or for the cost of establishing, operating, or 
        maintaining an embassy, consulate, or other diplomatic facility 
        in such a unilaterally declared state.
    (b) Suspension of Measures.--
            (1) In general.--The President may suspend the application 
        of any of paragraphs (3) through (5) of subsection (a) for a 
        period of not more than one year if, with respect to the 
        suspension of the application of any such paragraph, the 
        President determines and certifies to the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Foreign Relations of the Senate that--
                    (A) such suspension is in the national security 
                interest of the United States; or
                    (B) the application of such paragraph or paragraphs 
                would significantly hinder the prospects for a 
                negotiated peace agreement in the Middle East.
        Such certification shall be accompanied by a justification for 
        the basis of the determination.
            (2) Renewal.--The President may renew the suspension of the 
        application of any of paragraphs (3) through (5) of subsection 
        (a) for a successive period or periods of not more than one 
        year if, before each such period, the President makes a 
        determination and transmits a certification in accordance with 
        paragraph (1).
            (3) Additional requirement.--A suspension of the 
        application of any of paragraphs (3) through (5) of subsection 
        (a) under paragraph (1) or paragraph (2) shall cease to be 
        effective after one year or at such earlier date as the 
        President may specify.
    (c) Definition.--For purposes of paragraphs (2) and (3) of 
subsection (a), the term ``United States assistance''--
            (1) means--
                    (A) assistance under the Foreign Assistance Act of 
                1961 (22 U.S.C. 2151 et seq.), except--
                            (i) assistance under chapter 8 of part I of 
                        such Act (relating to international narcotics 
                        control assistance);
                            (ii) assistance under chapter 9 of part I 
                        of such Act (relating to international disaster 
                        assistance); and
                            (iii) assistance under chapter 6 of part II 
                        of such Act (relating to assistance for 
                        peacekeeping operations);
                    (B) assistance under the Arms Export Control Act 
                (22 U.S.C. 2751 et seq.), including the license or 
                approval for export of defense articles and defense 
                services under section 38 of that Act; and
                    (C) assistance under the Export-Import Bank Act of 
                1945; and
            (2) does not include counter-terrorism assistance.
Sets forth certain measures that shall be applied in the event that a Palestinian state is unilaterally declared, including: (1) to make it unlawful for the government of any unilaterally declared Palestinian state, the Palestinian Authority, the Palestine Liberation Organization (PLO), or any successor entities to establish an office in the United States; (2) to bar of U.S. assistance to the government of any unilaterally declared Palestinian state, the Palestinian Authority (or to any successor entity), and any programs or projects in the West Bank or Gaza (except humanitarian assistance); (3) to withhold a specified percentage of the U.S. contribution to any international organization that recognizes a unilaterally declared Palestinian state; and (4) to oppose such state's membership in any international financial institution or the extension by such institution of any loan or other financial assistance to it.
Authorizes the President to suspend, for one year, the application of a specified number of such measures provided he determines and certifies to specified congressional committees that such suspensions are in the national security interests of the United States or the application of such measures would significantly hinder the prospects for a negotiated peace agreement in the Middle East.
Peace Through Negotiations Act of 2000