I

106TH CONGRESS

1ST SESSION H. R. 984

To provide additional trade benefits to certain beneficiary countries in the

Caribbean, to provide assistance to the countries in Central America

and the Caribbean affected by Hurricane Mitch and Hurricane Georges,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 4, 1999

Mr. CRANE (for himself, Mr. KOLBE, Mr. RANGEL, and Mr. MATSUI) introduced the following bill; which was referred to the Committee on Ways

and Means, and in addition to the Committees on International Relations,

Banking and Financial Services, the Judiciary, and Armed Services, for

a period to be subsequently determined by the Speaker, in each case for

consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To provide additional trade benefits to certain beneficiary

countries in the Caribbean, to provide assistance to the

countries in Central America and the Caribbean affected

by Hurricane Mitch and Hurricane Georges, and for

other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Caribbean and Central America Relief and Economic

4 Stabilization Act’’.

5 (b) TABLE OF CONTENTS.—The table of contents for

6 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Definitions.

TITLE I—UNITED STATES-CARIBBEAN TRADE PARTNERSHIP

Sec. 101. Short title.

Sec. 102. Policy.

Sec. 103. Definitions.

Sec. 104. Temporary provisions to provide NAFTA parity to partnership countries.

Sec. 105. Effect of NAFTA on sugar imports from beneficiary countries.

Sec. 106. Duty-free treatment for certain beverages made with Caribbean rum.

Sec. 107. Meetings of trade ministers and USTR.

Sec. 108. Report on economic development and market oriented reforms in the

Caribbean.

TITLE II—FOREIGN ASSISTANCE FOR CENTRAL AMERICA AND

THE CARIBBEAN

Subtitle A—Microcredit and Agricultural Assistance

Sec. 201. Declaration of policy.

Sec. 202. Microenterprise assistance.

Sec. 203. Support for producer-owned cooperative marketing associations.

Sec. 204. Agricultural research and extension activities.

Sec. 205. Nonemergency food assistance programs.

Subtitle B—Overseas Private Investment Corporation

Sec. 211. Private sector development activities of OPIC.

Subtitle C—Economic Support Fund Assistance

Sec. 221. Economic support fund assistance.

Sec. 222. Reimbursement of international disaster account.

Sec. 223. Rule of construction; availability of amounts.

TITLE III—DEPARTMENT OF DEFENSE

Sec. 301. Replacement of funds used for disaster relief and reconstruction.

TITLE IV—IMMIGRATION AND NATURALIZATION SERVICE

Sec. 401. Detention facilities.
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TITLE V—DEBT RESCHEDULING AND REDUCTION FOR HONDURAS AND NICARAGUA; FUNDING FOR THE CENTRAL AMERICAN EMERGENCY TRUST FUND OF THE INTERNATIONAL

BANK FOR RECONSTRUCTION AND DEVELOPMENT

Subtitle A—Debt Rescheduling and Reduction for Honduras and Nicaragua

Sec. 501. Rescheduling of interest payments owed by Honduras and Nicaragua.

Sec. 502. Reduction of debt owed by Honduras.

Subtitle B—Authorization of Funding for the Central American Emergency

Trust Fund of the International Bank for Reconstruction and Development

Sec. 511. Authorization of funding.

1 SEC. 2. FINDINGS.

2 Congress makes the following findings:

3 (1) In October of 1998, Hurricane Mitch dev4 astated areas of the Caribbean and Central America.

5 The National Hurricane Center has called this storm

6 ‘‘the most deadly hurricane in the Atlantic in over

7 200 years’’. Hurricane Mitch killed 9,860 people and

8 left approximately 3,000,000 people homeless in the

9 region.

10 (2) Hurricane Georges hit the Florida Keys, the

11 islands of the Caribbean, and the Gulf coast of the

12 United States in September of 1998, causing more

13 than $1,000,000,000 in damage. The storm killed

14 250 people.

15 (3) The total direct economic impact of Hurri16 cane Mitch and Hurricane Georges on Honduras,

17 Nicaragua, the Dominican Republic, El Salvador

18 and Guatemala amounts to $4,200,000,000. Hon19 duras’ losses represent more than 50 percent of its
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1 gross domestic product and Nicaragua lost a quarter

2 of its gross domestic product.

3 (4) The United States must continue to play a

4 leading role in responding to the disaster and en5 courage others to contribute to the recovery effort.

6 For example, Taiwan has contributed $50,800,000

7 in assistance for the construction of roads and hous8 ing, the rehabilitation of agricultural production,

9 and the distribution of supplies. Sweden, Spain, and

10 France have sent engineering teams to the region to

11 assess damage to roads, and Japan and the Euro12 pean Union have pledged millions of dollars in as13 sistance. The United States praises the efforts of

14 these and other nations in assisting with the reha15 bilitation of the region.

16 (5) Approximately 356 bridges were destroyed

17 in the region, and 57 percent of the region’s roads

18 were impacted. The United States equivalent of this

19 would be the destruction of 3,900,000 miles of high20 way. These roads must be reconstructed quickly so

21 that farmers can transport their goods to market

22 and much-needed medical supplies can reach rural

23 areas.

24 (6) Hurricane Mitch devastated the agricultural

25 sector in the affected areas of Central America and
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1 the Caribbean, particularly the countries of Hon2 duras and Guatemala. An estimated 70 percent of

3 Honduras’ crops were destroyed by Hurricane

4 Mitch, including 90 percent of the country’s banana

5 and grain crops. In Guatemala, an estimated 95 per6 cent of the nation’s banana crop was damaged, 25-

7 60 percent of the corn, bean, coffee, and sugar crops

8 were destroyed, and 30 percent of the cattle was

9 lost.

10 (7) Approximately 50 percent of Central Amer11 ica and the Caribbean’s workforce is employed in ag12 riculture. The devastation to the agriculture sector

13 by Hurricane Mitch has resulted in a widespread

14 shortage of food which is likely to continue in the

15 long term unless the region’s agricultural sector is

16 rehabilitated.

17 (8) Significant numbers of displaced Central

18 Americans are moving north to the United States in

19 the wake of Hurricane Mitch’s devastation. Border

20 Patrol agents in Brownsville, Texas, report that ap21 prehensions of Hondurans alone increased by 61

22 percent in the last three months of 1998. The mas23 sive influx of immigrants places severe pressures

24 upon the ability of the Immigration and Naturaliza25 tion Service (INS) to detain and remove non-crimi-
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1 nal illegal immigrants. At current funding levels, the

2 INS does not have the resources to detain illegal

3 non-criminal border crossers from Central America.

4 If this situation continues, the INS is concerned that

5 many more people will attempt to illegally cross the

6 border.

7 (9) Partially in an effort to alleviate these pres8 sures, the Attorney General provided temporary pro9 tected status to aliens from Honduras and Nica10 ragua on December 30, 1998 for a period of 18

11 months. No such status was provided to immigrants

12 from El Salvador and Guatemala.

13 (10) Agricultural assistance and training and

14 microcredit assistance will provide much needed aid

15 to the affected areas of Central America and the

16 Caribbean as the areas rebuild their agriculture sec17 tors. The immediate distribution of food aid is im18 portant in the short term, but it is essential that the

19 region be able to return to self-sufficiency in food

20 production so the citizens of Central America and

21 the Caribbean will be able to feed themselves once

22 again.

23 (11) The goal of United States assistance to

24 the region should focus on, in addition to the short25 term disaster assistance, long-term solutions for a
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1 successful economic recovery of Central America and

2 the Caribbean. Successful economic recovery lies in

3 the region’s ability to expand its international trade

4 with important trading partners such as the United

5 States.

6 (12) Since 1983, the Caribbean Basin Eco7 nomic Recovery Act has represented a permanent

8 and successful commitment by the United States to

9 encourage the development of strong democratic gov10 ernments and revitalized economies in neighboring

11 countries in the Caribbean Basin.

12 (13) Thirty-four democratically elected leaders

13 agreed at the 1994 Summit of the Americas to con14 clude negotiation of a Free Trade Area of the Amer15 icas (referred to in this Act as ‘‘FTAA’’) by the year

16 2005.

17 (14) The economic security of the countries in

18 the Caribbean Basin will be enhanced by the comple19 tion of the FTAA.

20 (15) Offering temporary benefits to Caribbean

21 Basin countries on the 30 percent of imports from

22 the region that are not currently duty-free under the

23 Caribbean Basin Economic Recovery Act and other

24 trade programs, will promote the growth of free en25 terprise and economic opportunity in these neighbor-
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1 ing countries and thereby enhance the national secu2 rity interests of the United States.

3 (16) Given the greater propensity of countries

4 located in the Western Hemisphere to use United

5 States components and to purchase United States

6 products compared to other countries, increased

7 trade and economic activity between the United

8 States and countries in the Western Hemisphere will

9 create new jobs in the United States as a result of

10 expanding export opportunities.

11 SEC. 3. DEFINITIONS.

12 In this Act:

13 (1) ADMINISTRATOR.—The term ‘‘Adminis14 trator’’ means the Administrator of the United

15 States Agency for International Development.

16 (2) AFFECTED AREAS OF CENTRAL AMERICA

17 AND THE CARIBBEAN.—The term ‘‘affected areas of

18 Central America and the Caribbean’’ means areas in

19 the Central American countries and the Caribbean

20 countries that incurred damage from Hurricane

21 Georges in September of 1998 and Hurricane Mitch

22 in October of 1998.

23 (3) CARIBBEAN COUNTRIES.—The term ‘‘Carib24 bean countries’’ means any country listed in section

25 212(b) of the Caribbean Basin Economic Recovery
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1 Act (19 U.S.C. 2702(b)) (other than Central Amer2 ican countries).

3 (4) CENTRAL AMERICAN COUNTRIES.—The

4 term ‘‘Central American countries’’ means Belize,

5 Costa Rica, El Salvador, Guatemala, Honduras,

6 Nicaragua, and Panama.

7 (5) OPIC.—The term ‘‘OPIC’’ means the Over8 seas Private Investment Corporation.

9 TITLE I—UNITED STATES-CARIB10 BEAN TRADE PARTNERSHIP

11 SEC. 101. SHORT TITLE.

12 This title may be cited as the ‘‘United States-Carib13 bean Trade Partnership Act’’.

14 SEC. 102. POLICY.

15 It is the policy of the United States to offer to the

16 products of Caribbean Basin partnership countries tariffs

17 and quota treatment equivalent to that accorded to certain

18 products of countries that are parties to the NAFTA, and

19 to seek the accession of these partnership countries to the

20 NAFTA or a free trade agreement comparable to the

21 NAFTA at the earliest possible date, with the goal of

22 achieving full participation in the NAFTA or in a free

23 trade agreement comparable to the NAFTA by all part24 nership countries by not later than January 1, 2005.
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1 SEC. 103. DEFINITIONS.

2 As used in this title:

3 (1) PARTNERSHIP COUNTRY.—The term ‘‘part4 nership country’’ means a beneficiary country as de5 fined in section 212(a)(1)(A) of the Caribbean Basin

6 Economic Recovery Act (19 U.S.C. 2702(a)(1)(A)).

7 (2) NAFTA.—The term ‘‘NAFTA’’ means the

8 North American Free Trade Agreement entered into

9 between the United States, Mexico, and Canada on

10 December 17, 1992.

11 (3) TRADE REPRESENTATIVE.—The term

12 ‘‘Trade Representative’’ means the United States

13 Trade Representative.

14 (4) WTO AND WTO MEMBER.—The terms

15 ‘‘WTO’’ and ‘‘WTO member’’ have the meanings

16 given those terms in section 2 of the Uruguay

17 Round Agreements Act (19 U.S.C. 3501).

18 SEC. 104. TEMPORARY PROVISIONS TO PROVIDE NAFTA

19 PARITY TO PARTNERSHIP COUNTRIES.

20 (a) TEMPORARY PROVISIONS.—Section 213(b) of the

21 Caribbean Basin Economic Recovery Act (19 U.S.C.

22 2703(b)) is amended to read as follows:

23 ‘‘(b) IMPORT-SENSITIVE ARTICLES.—

24 ‘‘(1) IN GENERAL.—Subject to paragraphs (2)

25 through (5), the duty-free treatment provided under

26 this title does not apply to—
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1 ‘‘(A) textile and apparel articles which

2 were not eligible articles for purposes of this

3 title on January 1, 1994, as this title was in ef4 fect on that date;

5 ‘‘(B) footwear not designated at the time

6 of the effective date of this title as eligible arti7 cles for the purpose of the generalized system

8 of preferences under title V of the Trade Act of

9 1974;

10 ‘‘(C) tuna, prepared or preserved in any

11 manner, in airtight containers;

12 ‘‘(D) petroleum, or any product derived

13 from petroleum, provided for in headings 2709

14 and 2710 of the HTS;

15 ‘‘(E) watches and watch parts (including

16 cases, bracelets and straps), of whatever type

17 including, but not limited to, mechanical, quartz

18 digital, or quartz analog, if such watches or

19 watch parts contain any material which is the

20 product of any country with respect to which

21 HTS column 2 rates of duty apply; or

22 ‘‘(F) articles to which reduced rates of

23 duty apply under subsection (h).

24 ‘‘(2) TRANSITION PERIOD TREATMENT OF CER25 TAIN TEXTILE AND APPAREL ARTICLES.—
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1 ‘‘(A) EQUIVALENT TARIFF AND QUOTA

2 TREATMENT.—During the transition period—

3 ‘‘(i) the tariff treatment accorded at

4 any time to any textile or apparel article

5 that originates in the territory of a part6 nership country shall be identical to the

7 tariff treatment that is accorded at such

8 time under section 2 of the Annex to an

9 article described in the same 8-digit sub10 heading of the HTS that is a good of Mex11 ico and is imported into the United States;

12 ‘‘(ii) duty-free treatment under this

13 title shall apply to any textile or apparel

14 article that is imported into the United

15 States from a partnership country and

16 that—

17 ‘‘(I) is assembled in a partner18 ship country, from fabrics wholly

19 formed and cut in the United States

20 from yarns formed in the United

21 States, and is entered—

22 ‘‘(aa) under subheading

23 9802.00.80 of the HTS; or

24 ‘‘(bb) under chapter 61, 62,

25 or 63 of the HTS if, after such
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1 assembly, the article would have

2 qualified for treatment under

3 subheading 9802.00.80 of the

4 HTS, but for the fact the article

5 was subjected to bleaching, gar6 ments dyeing, stone-washing, en7 zyme-washing, acid-washing,

8 perma-pressing, oven-baking, or

9 embroidery;

10 ‘‘(II) is knit-to-shape in a part11 nership country from yarns wholly

12 formed in the United States;

13 ‘‘(III) is made in a partnership

14 country from fabric knit in a partner15 ship country from yarns wholly

16 formed in the United States;

17 ‘‘(IV) is cut and assembled in a

18 partnership country from fabrics

19 wholly formed in the United States

20 from yarns wholly formed in the

21 United States; or

22 ‘‘(V) is identified under subpara23 graph (C) as a handloomed, hand24 made, or folklore article of a partner25 ship country and is certified as such
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1 by the competent authority of such

2 country; and

3 ‘‘(iii) no quantitative restriction or

4 consultation level may be applied to the

5 importation into the United States of any

6 textile or apparel article that—

7 ‘‘(I) originates in the territory of

8 a partnership country, or

9 ‘‘(II) qualifies for duty-free treat10 ment under subclause (I), (II), (III),

11 (IV), or (V) of clause (ii).

12 ‘‘(B) TRANSITION PERIOD TREATMENT OF

13 OTHER NONORIGINATING TEXTILE AND AP14 PAREL ARTICLES.—

15 ‘‘(i) PREFERENTIAL TARIFF TREAT16 MENT.—Subject to clause (ii), the Presi17 dent may place in effect at any time dur18 ing the transition period with respect to

19 any textile or apparel article that—

20 ‘‘(I) is a product of a partnership

21 country, but

22 ‘‘(II) does not qualify as a good

23 that originates in the territory of a

24 partnership country or is eligible for

25 benefits under subparagraph (A)(ii),
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1 tariff treatment that is identical to the in2 preference-level tariff treatment accorded

3 at such time under Appendix 6.B of the

4 Annex to an article described in the same

5 8-digit subheading of the HTS that is a

6 product of Mexico and is imported into the

7 United States. For purposes of this clause,

8 the ‘in-preference-level tariff treatment’ ac9 corded to an article that is a product of

10 Mexico is the rate of duty applied to that

11 article when imported in quantities less

12 than or equal to the quantities specified in

13 Schedule 6.B.1, 6.B.2., or 6.B.3. of the

14 Annex for imports of that article from

15 Mexico into the United States.

16 ‘‘(ii) LIMITATIONS ON ALL ARTI17 CLES.—(I) Tariff treatment under clause

18 (i) may be extended, during any calendar

19 year, to not more than 45,000,000 square

20 meter equivalents of cotton or man-made

21 fiber apparel, to not more than 1,500,000

22 square meter equivalents of wool apparel,

23 and to not more than 25,000,000 square

24 meter equivalents of goods entered under

25 subheading 9802.00.80 of the HTS.
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1 ‘‘(II) Except as provided in subclause

2 (III), the amounts set forth in subclause

3 (I) shall be allocated among the 7 partner4 ship countries with the largest volume of

5 exports to the United States of textile and

6 apparel goods in calendar year 1997, based

7 upon a pro rata share of the volume of tex8 tile and apparel goods of each of those 7

9 countries that entered the United States

10 under subheading 9802.00.80 of the HTS

11 during the first 12 months of the 14-

12 month period ending on the date of the en13 actment of the United States-Caribbean

14 Trade Partnership Act.

15 ‘‘(III) Five percent of the amounts set

16 forth in subclause (I) shall be allocated

17 among the partnership countries, other

18 than those to which subclause (II) applies,

19 based upon a pro rata share of the exports

20 to the United States of textile and apparel

21 goods of each of those countries during the

22 first 12 months of the 14-month period

23 ending on the date of the enactment of the

24 United States-Caribbean Trade Partner25 ship Act.
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1 ‘‘(iii) PRIOR CONSULTATION.—The

2 President may implement the preferential

3 tariff treatment described in clause (i) only

4 after consultation with representatives of

5 the United States textile and apparel in6 dustry and other interested parties

7 regarding—

8 ‘‘(I) the specific articles to which

9 such treatment will be extended,

10 ‘‘(II) the annual quantities of

11 such articles that may be imported at

12 the preferential duty rates described

13 in clause (i), and

14 ‘‘(III) the allocation of such an15 nual quantities among partnership

16 countries.

17 ‘‘(C) HANDLOOMED, HANDMADE, AND

18 FOLKLORE ARTICLES.—For purposes of sub19 paragraph (A)(ii)(V), the Trade Representative

20 shall consult with representatives of a partner21 ship country for the purpose of identifying par22 ticular textile and apparel goods that are mutu23 ally agreed upon as being handloomed, hand24 made, or folklore goods of a kind described in
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1 section 2.3 (a), (b), or (c) or Appendix 3.1.B.11

2 of the Annex.

3 ‘‘(D) BILATERAL EMERGENCY ACTIONS.—

4 (i) The President may take—

5 ‘‘(I) bilateral emergency tariff actions

6 of a kind described in section 4 of the

7 Annex with respect to any textile or ap8 parel article imported from a partnership

9 country if the application of tariff treat10 ment under subparagraph (A) to such arti11 cle results in conditions that would be

12 cause for the taking of such actions under

13 such section 4 with respect to an article

14 described in the same 8-digit subheading

15 of the HTS that is imported from Mexico;

16 or

17 ‘‘(II) bilateral emergency quantitative

18 restriction actions of a kind described in

19 section 5 of the Annex with respect to im20 ports of any textile or apparel article de21 scribed in subparagraphs (B)(i) (I) and

22 (II) if the importation of such article into

23 the United States results in conditions that

24 would be cause for the taking of such ac-
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1 tions under such section 5 with respect to

2 a like article that is a product of Mexico.

3 ‘‘(ii) The requirement in paragraph (5) of

4 section 4 of the Annex (relating to providing

5 compensation) shall not be deemed to apply to

6 a bilateral emergency action taken under this

7 subparagraph.

8 ‘‘(iii) For purposes of applying bilateral

9 emergency action under this subparagraph—

10 ‘‘(I) the term ‘transition period’ in

11 sections 4 and 5 of the Annex shall be

12 deemed to be the period defined in para13 graph (5)(E); and

14 ‘‘(II) any requirements to consult

15 specified in section 4 or 5 of the Annex are

16 deemed to be satisfied if the President re17 quests consultations with the partnership

18 country in question and the country does

19 not agree to consult within the time period

20 specified under such section 4 or 5, which21 ever is applicable.

22 ‘‘(3) NAFTA TRANSITION PERIOD TREATMENT

23 OF CERTAIN OTHER ARTICLES ORIGINATING IN BEN24 EFICIARY COUNTRIES.—

25 ‘‘(A) EQUIVALENT TARIFF TREATMENT.—
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1 ‘‘(i) IN GENERAL.—Subject to clause

2 (ii), the tariff treatment accorded at any

3 time during the transition period to any

4 article referred to in any of subparagraphs

5 (B) through (F) of paragraph (1) that

6 originates in the territory of a partnership

7 country shall be identical to the tariff

8 treatment that is accorded at such time

9 under Annex 302.2 of the NAFTA to an

10 article described in the same 8-digit sub11 heading of the HTS that is a good of Mex12 ico and is imported into the United States.

13 ‘‘(ii) EXCEPTION.—Clause (i) does not

14 apply to any article accorded duty-free

15 treatment under U.S. Note 2(b) to sub16 chapter II of chapter 98 of the HTS.

17 ‘‘(B) RELATIONSHIP TO SUBSECTION (h)

18 DUTY REDUCTIONS.—If at any time during the

19 transition period the rate of duty that would

20 (but for action taken under subparagraph (A)(i)

21 in regard to such period) apply with respect to

22 any article under subsection (h) is a rate of

23 duty that is lower than the rate of duty result24 ing from such action, then such lower rate of
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1 duty shall be applied for the purposes of imple2 menting such action.

3 ‘‘(4) CUSTOMS PROCEDURES.—

4 ‘‘(A) IN GENERAL.—

5 ‘‘(i) REGULATIONS.—Any importer

6 that claims preferential tariff treatment

7 under paragraph (2) or (3) shall comply

8 with customs procedures similar in all ma9 terial respects to the requirements of Arti10 cle 502(1) of the NAFTA as implemented

11 pursuant to United States law, in accord12 ance with regulations promulgated by the

13 Secretary of the Treasury.

14 ‘‘(ii) DETERMINATION.—In order to

15 qualify for such preferential tariff treat16 ment and for a Certificate of Origin to be

17 valid with respect to any article for which

18 such treatment is claimed, there shall be in

19 effect a determination by the President

20 that—

21 ‘‘(I) the partnership country

22 from which the article is exported,

23 and

24 ‘‘(II) each partnership country in

25 which materials used in the produc-
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1 tion of the article originate or undergo

2 production that contributes to a claim

3 that the article qualifies for such pref4 erential tariff treatment,

5 has implemented and follows, or is making

6 substantial progress toward implementing

7 and following, procedures and require8 ments similar in all material respects to

9 the relevant procedures and requirements

10 under chapter 5 of the NAFTA.

11 ‘‘(B) CERTIFICATE OF ORIGIN.—The Cer12 tificate of Origin that otherwise would be re13 quired pursuant to the provisions of subpara14 graph (A) shall not be required in the case of

15 an article imported under paragraph (2) or (3)

16 if such Certificate of Origin would not be re17 quired under Article 503 of the NAFTA (as im18 plemented pursuant to United States law), if

19 the article were imported from Mexico.

20 ‘‘(C) PENALTIES FOR TRANSSHIPMENTS.—

21 If the President determines, based on sufficient

22 evidence, that an exporter has engaged in will23 ful illegal transshipment or willful customs

24 fraud with respect to textile or apparel articles

25 for which preferential tariff treatment under
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1 subparagraph (A) or (B) of paragraph (2) is

2 claimed, then the President shall deny all bene3 fits under this title to such exporter, and any

4 successors of such exporter, for a period of 2

5 years.

6 ‘‘(D) REPORT BY USTR ON COOPERATION

7 OF OTHER COUNTRIES CONCERNING CIR8 CUMVENTION.—The United States Commis9 sioner of Customs shall conduct a study analyz10 ing the extent to which each partnership

11 country—

12 ‘‘(i) has cooperated fully with the

13 United States, consistent with its domestic

14 laws and procedures, in instances of cir15 cumvention or alleged circumvention of ex16 isting quotas on imports of textile and ap17 parel goods, to establish necessary relevant

18 facts in the places of import, export, and,

19 where applicable, transshipment, including

20 investigation of circumvention practices,

21 exchanges of documents, correspondence,

22 reports, and other relevant information, to

23 the extent such information is available;

24 ‘‘(ii) has taken appropriate measures,

25 consistent with its domestic laws and pro-
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1 cedures, against exporters and importers

2 involved in instances of false declaration

3 concerning fiber content, quantities, de4 scription, classification, or origin of textile

5 and apparel goods; and

6 ‘‘(iii) has penalized the individuals

7 and entities involved in any such cir8 cumvention, consistent with its domestic

9 laws and procedures, and has worked

10 closely to seek the cooperation of any third

11 country to prevent such circumvention

12 from taking place in that third country.

13 The Trade Representative shall submit to the

14 Congress, not later than October 1, 1999, a re15 port on the study conducted under this sub16 paragraph.

17 ‘‘(5) DEFINITIONS.—For purposes of this

18 subsection—

19 ‘‘(A) The term ‘the Annex’ means Annex

20 300–B of the NAFTA.

21 ‘‘(B) The term ‘NAFTA’ means the North

22 American Free Trade Agreement entered into

23 between the United States, Mexico, and Canada

24 on December 17, 1992.
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1 ‘‘(C) The term ‘partnership country’

2 means a beneficiary country.

3 ‘‘(D) The term ‘textile or apparel article’

4 means any article referred to in paragraph

5 (1)(A) that is a good listed in Appendix 1.1 of

6 the Annex.

7 ‘‘(E) The term ‘transition period’ means,

8 with respect to a partnership country, the pe9 riod that begins on the date of the enactment

10 of the United States-Caribbean Trade Partner11 ship Act and ends on the earlier of—

12 ‘‘(i) the date that is 5 years after such

13 date of enactment; or

14 ‘‘(ii) the date on which—

15 ‘‘(I) the United States first ap16 plies the NAFTA to the partnership

17 country upon its accession to the

18 NAFTA, or

19 ‘‘(II) there enters into force with

20 respect to the United States and the

21 partnership country a free trade

22 agreement comparable to the NAFTA

23 that makes substantial progress in

24 achieving the negotiating objectives

25 set forth in section 108(b)(5) of the
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1 North American Free Trade Agree2 ment Implementation Act (19 U.S.C.

3 3317(b)(5)).

4 ‘‘(F) An article shall be deemed as origi5 nating in the territory of a partnership country

6 if the article meets the rules of origin for a

7 good set forth in chapter 4 of the NAFTA, and,

8 in the case of an article described in Appendix

9 6.A of the Annex, the requirements stated in

10 such Appendix 6.A for such article to be treated

11 as if it were an originating good. In applying

12 such chapter 4 or Appendix 6.A with respect to

13 a partnership country for purposes of this

14 subsection—

15 ‘‘(i) no countries other than the

16 United States and partnership countries

17 may be treated as being Parties to the

18 NAFTA,

19 ‘‘(ii) references to trade between the

20 United States and Mexico shall be deemed

21 to refer to trade between the United States

22 and partnership countries, and

23 ‘‘(iii) references to a Party shall be

24 deemed to refer to the United States or a

25 partnership country, and references to the
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1 Parties shall be deemed to refer to any

2 combination of partnership countries and

3 the United States.’’.

4 (b) DETERMINATION REGARDING RETENTION OF

5 DESIGNATION.—Section 212(e)(1) of the Caribbean Basin

6 Economic Recovery Act (19 U.S.C. 2702(e)) is amended—

7 (1) by inserting ‘‘(A)’’ after ‘‘(1)’’;

8 (2) by redesignating subparagraphs (A) and

9 (B) as clauses (i) and (ii), respectively;

10 (3) by adding at the end the following:

11 ‘‘(B)(i) Based on the President’s review and

12 analysis described in subsection (f), the President

13 may determine if the preferential treatment under

14 section 213(b)(2) and (3) should be withdrawn, sus15 pended, or limited with respect to any article of a

16 partnership country. Such determination shall be in17 cluded in the report required by subsection (f).

18 ‘‘(ii) Withdrawal, suspension, or limitation of

19 the preferential treatment under section 213(b)(2)

20 and (3) with respect to a partnership country shall

21 be taken only after the requirements of subsection

22 (a)(2) and paragraph (2) of this subsection have

23 been met.’’.
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1 (c) REPORTING REQUIREMENTS.—Section 212(f) of

2 the Caribbean Basin Economic Recovery Act (19 U.S.C.

3 2702(f)) is amended to read as follows:

4 ‘‘(f) REPORTING REQUIREMENTS.—Not later than 1

5 year after the date of the enactment of the United States6 Caribbean Trade Partnership Act and at the close of each

7 3-year period thereafter, the President shall submit to the

8 Congress a complete report regarding the operation of this

9 title, including—

10 ‘‘(1) with respect to subsections (b) and (c) of

11 this section, the results of a general review of bene12 ficiary countries based on the considerations de13 scribed in such subsections;

14 ‘‘(2) with respect to subsection (c)(4), the de15 gree to which a country follows accepted rules of

16 international trade provided for under the WTO

17 Agreement and the multilateral trade agreements

18 (as such terms are defined in paragraphs (9) and

19 (4), respectively, of section 2 of the Uruguay Round

20 Agreements Act);

21 ‘‘(3) with respect to subsection (c)(9), the ex22 tent to which beneficiary countries are providing or

23 taking steps to provide protection of intellectual

24 property rights comparable to the protection pro-
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1 vided to the United States in bilateral intellectual

2 property rights agreements;

3 ‘‘(4) with respect to subsection (b)(2) and sub4 section (c)(5), the extent that beneficiary countries

5 are providing or taking steps to provide protection of

6 investment and investors comparable to the protec7 tion provided to the United States in bilateral in8 vestment treaties;

9 ‘‘(5) with respect to subsection (c)(3), the ex10 tent that beneficiary countries are providing the

11 United States and other WTO members (as such

12 term is defined in section 2(10) of the Uruguay

13 Round Agreements Act (19 U.S.C. 3501(10)) with

14 equitable and reasonable market access in the prod15 uct sectors for which benefits are provided under

16 this title;

17 ‘‘(6) with respect to subsection (c)(11), the ex18 tent that beneficiary countries are cooperating with

19 the United States in administering the provisions of

20 section 213(b); and

21 ‘‘(7) with respect to subsection (c)(8), the ex22 tent that beneficiary countries are meeting the inter23 nationally recognized worker rights criteria under

24 such subsection.
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1 In the first report under this subsection, the President

2 shall include a review of the implementation of section

3 213(b), and his analysis of whether the benefits under

4 paragraphs (2) and (3) of such section further the objec5 tives of this title.’’.

6 (d) CONFORMING AMENDMENT.—Section 213(a)(1)

7 of the Caribbean Basin Economic Recovery Act is amend8 ed by inserting ‘‘and except as provided in section

9 213(b)(2) and (3),’’ after ‘‘Tax Reform Act of 1986,’’.

10 SEC. 105. EFFECT OF NAFTA ON SUGAR IMPORTS FROM

11 BENEFICIARY COUNTRIES.

12 The President shall monitor the effects, if any, that

13 the implementation of the NAFTA has on the access of

14 beneficiary countries under the Caribbean Basin Economic

15 Recovery Act to the United States market for sugars, syr16 ups, and molasses. If the President considers that the im17 plementation of the NAFTA is affecting, or will likely af18 fect, in an adverse manner the access of such countries

19 to the United States market, the President shall

20 promptly—

21 (1) take such actions, after consulting with in22 terested parties and with the appropriate committees

23 of the House of Representatives and the Senate, or

24 (2) propose to the Congress such legislative ac25 tions,
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1 as may be necessary or appropriate to ameliorate such ad2 verse effect.

3 SEC. 106. DUTY-FREE TREATMENT FOR CERTAIN BEV4 ERAGES MADE WITH CARIBBEAN RUM.

5 Section 213(a) of the Caribbean Basin Economic Re6 covery Act (19 U.S.C. 2703(a)) is amended—

7 (1) in paragraph (5), by striking ‘‘chapter’’ and

8 inserting ‘‘title’’; and

9 (2) by adding at the end the following new

10 paragraph:

11 ‘‘(6) Notwithstanding paragraph (1), the duty-free

12 treatment provided under this title shall apply to liqueurs

13 and spirituous beverages produced in the territory of Can14 ada from rum if—

15 ‘‘(A) such rum is the growth, product, or manu16 facture of a beneficiary country or of the Virgin Is17 lands of the United States;

18 ‘‘(B) such rum is imported directly from a ben19 eficiary country or the Virgin Islands of the United

20 States into the territory of Canada, and such li21 queurs and spirituous beverages are imported di22 rectly from the territory of Canada into the customs

23 territory of the United States;

24 ‘‘(C) when imported into the customs territory

25 of the United States, such liqueurs and spirituous
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1 beverages are classified in subheading 2208.90 or

2 2208.40 of the HTS; and

3 ‘‘(D) such rum accounts for at least 90 percent

4 by volume of the alcoholic content of such liqueurs

5 and spiritous beverages.’’.

6 SEC. 107. MEETINGS OF TRADE MINISTERS AND USTR.

7 (a) SCHEDULE OF MEETINGS.—The President shall

8 take the necessary steps to convene a meeting with the

9 trade ministers of the partnership countries in order to

10 establish a schedule of regular meetings, to commence as

11 soon as is practicable, of the trade ministers and the

12 Trade Representative, for the purpose set forth in sub13 section (b).

14 (b) PURPOSE.—The purpose of the meetings sched15 uled under subsection (a) is to reach agreement between

16 the United States and partnership countries on the likely

17 timing and procedures for initiating negotiations for part18 nership countries to accede to the NAFTA, or to enter

19 into mutually advantageous free trade agreements with

20 the United States that contain provisions comparable to

21 those in the NAFTA and would make substantial progress

22 in achieving the negotiating objectives set forth in section

23 108(b)(5) of the North American Free Trade Agreement

24 Implementation Act (19 U.S.C. 3317(b)(5)).
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1 SEC. 108. REPORT ON ECONOMIC DEVELOPMENT AND MAR2 KET ORIENTED REFORMS IN THE CARIB3 BEAN.

4 (a) IN GENERAL.—The Trade Representative shall

5 make an assessment of the economic development efforts

6 and market oriented reforms in each partnership country

7 and the ability of each such country, on the basis of such

8 efforts and reforms, to undertake the obligations of the

9 NAFTA. The Trade Representative shall, not later than

10 2 years after the date of the enactment of this Act, submit

11 to the President and to the Committee on Finance of the

12 Senate and the Committee on Ways and Means of the

13 House of Representatives a report on that assessment.

14 (b) ACCESSION TO NAFTA.—

15 (1) ABILITY OF COUNTRIES TO IMPLEMENT

16 NAFTA.—The Trade Representative shall include in

17 the report under subsection (a) a discussion of pos18 sible timetables and procedures pursuant to which

19 partnership countries can complete the economic re20 forms necessary to enable them to negotiate acces21 sion to the NAFTA. The Trade Representative shall

22 also include an assessment of the potential phase-in

23 periods that may be necessary for those partnership

24 countries with less developed economies to imple25 ment the obligations of the NAFTA.
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1 (2) FACTORS IN ASSESSING ABILITY TO IMPLE2 MENT NAFTA.—In assessing the ability of each part3 nership country to undertake the obligations of the

4 NAFTA, the Trade Representative should consider,

5 among other factors—

6 (A) whether the country has joined the

7 WTO;

8 (B) the extent to which the country pro9 vides equitable access to the markets of that

10 country;

11 (C) the degree to which the country uses

12 export subsidies or imposes export performance

13 requirements or local content requirements;

14 (D) macroeconomic reforms in the country

15 such as the abolition of price controls on traded

16 goods and fiscal discipline;

17 (E) progress the country has made in the

18 protection of intellectual property rights;

19 (F) progress the country has made in the

20 elimination of barriers to trade in services;

21 (G) whether the country provides national

22 treatment to foreign direct investment;

23 (H) the level of tariffs bound by the coun24 try under the WTO (if the country is a WTO

25 member);
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1 (I) the extent to which the country has

2 taken other trade liberalization measures; and

3 (J) the extent which the country works to

4 accommodate market access objectives of the

5 United States.

6 (c) PARITY REVIEW IN THE EVENT A NEW COUNTRY

7 ACCEDES TO NAFTA.—If—

8 (1) a country or group of countries accedes to

9 the NAFTA, or

10 (2) the United States negotiates a comparable

11 free trade agreement with another country or group

12 of countries,

13 the Trade Representative shall provide to the committees

14 referred to in subsection (a) a separate report on the eco15 nomic impact of the new trade relationship on partnership

16 countries. The report shall include any measures the

17 Trade Representative proposes to minimize the potential

18 for the diversion of investment from partnership countries

19 to the new NAFTA member or free trade agreement part20 ner.
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1 TITLE II—FOREIGN ASSISTANCE

2 FOR CENTRAL AMERICA AND

3 THE CARIBBEAN

4 Subtitle A—Microcredit and

5 Agricultural Assistance

6 SEC. 201. DECLARATION OF POLICY.

7 It is the policy of the United States, consistent with

8 title XII of chapter 2 of part I of the Foreign Assistance

9 Act of 1961 (22 U.S.C. 2220a), to support the govern10 ments of Central American countries and Caribbean coun11 tries, United States and nongovernmental organizations,

12 universities, businesses, and international organizations,

13 to help ensure the availability of basic nutrition and eco14 nomic opportunities for individuals in the affected areas

15 of Central America and the Caribbean, through sustain16 able agriculture and rural development.

17 SEC. 202. MICROENTERPRISE ASSISTANCE.

18 (a) BILATERAL ASSISTANCE.—In providing disaster

19 assistance in the aftermath of Hurricane Georges and

20 Hurricane Mitch, the Administrator of the United States

21 Agency for International Development shall, to the extent

22 practicable, use credit and microcredit assistance to reha23 bilitate agriculture production in the affected areas of

24 Central America and the Caribbean. In providing such as25 sistance, the Administrator should use the applied re-
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•HR 984 IH

1 search and technical assistance capabilities of United

2 States land-grant universities.

3 (b) MULTILATERAL ASSISTANCE.—The Adminis4 trator shall continue to work with other countries, inter5 national organizations (including multilateral development

6 institutions), and entities assisting microenterprises and

7 shall develop a comprehensive and coordinated strategy for

8 providing microenterprise assistance for Central America

9 and the Caribbean.

10 SEC. 203. SUPPORT FOR PRODUCER-OWNED COOPERATIVE

11 MARKETING ASSOCIATIONS.

12 (a) PURPOSES.—The purposes of this section are—

13 (1) to support producer-owned cooperative pur14 chasing and marketing associations in Central

15 America and the Caribbean;

16 (2) to strengthen the capacity of farmers in

17 Central America and the Caribbean to participate in

18 national and international private markets and to

19 promote rural development in the region;

20 (3) to encourage the efforts of farmers in Cen21 tral America and the Caribbean to increase their

22 productivity and income through improved access to

23 farm supplies, seasonal credit, technical expertise;

24 and
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1 (4) to support small businesses in Central

2 America and the Caribbean as such businesses grow

3 beyond microenterprises.

4 (b) SUPPORT FOR PRODUCER-OWNED COOPERATIVE

5 MARKETING ASSOCIATIONS.—

6 (1) ACTIVITIES.—The Administrator of the

7 United States Agency for International Development

8 is authorized to utilize relevant foreign assistance

9 programs and initiatives for the Central America

10 and the Caribbean region to support private pro11 ducer-owned cooperative marketing associations in

12 the region, including rural business associations that

13 are owned and controlled by farmer shareholders.

14 (2) OTHER ACTIVITIES.—In addition to carry15 ing out paragraph (1), the Administrator is

16 encouraged—

17 (A) to cooperate with governments of for18 eign countries, including governments of politi19 cal subdivisions of such countries, their agricul20 tural research universities, and particularly with

21 United States nongovernmental organizations

22 and United States land-grant universities, that

23 have demonstrated expertise in the development

24 and promotion of successful private producer25 owned cooperative marketing associations; and
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•HR 984 IH

1 (B) to facilitate partnerships between

2 United States and Central America and the

3 Caribbean cooperatives and private businesses

4 to enhance the capacity and technical and mar5 keting expertise of business associations in the

6 Central America and the Caribbean region.

7 SEC. 204. AGRICULTURAL RESEARCH AND EXTENSION AC8 TIVITIES.

9 (a) DEVELOPMENT OF PLAN.—The Administrator of

10 the United States Agency for International Development,

11 in consultation with the Secretary of Agriculture and ap12 propriate other officials in the Department of Agriculture,

13 especially the head of the Cooperative State, Research,

14 Education and Extension Service (CSREES), shall de15 velop a comprehensive plan to coordinate and build on the

16 research and extension activities of United States land17 grant universities, international agricultural research cen18 ters, and national agricultural research and extension cen19 ters in Central America and the Caribbean.

20 (b) ADDITIONAL REQUIREMENTS.—The plan de21 scribed in subsection (a) shall seek to ensure that—

22 (1) research and extension activities respond to

23 the needs of the agriculture sectors devastated by

24 Hurricane Georges and Hurricane Mitch while devel25 oping the potential and skills of researchers, exten-
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1 sion agents, farmers, and agribusiness persons in

2 the region; and

3 (2) sustainable agricultural methods of farming

4 will be considered together with new technologies in

5 rehabilitating agricultural production in the region.

6 SEC. 205. NONEMERGENCY FOOD ASSISTANCE PROGRAMS.

7 (a) IN GENERAL.—In providing nonemergency assist8 ance under title II of the Agricultural Trade Development

9 and Assistance Act of 1954 (7 U.S.C. 1721 et seq.), the

10 Administrator of the United States Agency for Inter11 national Development shall ensure that—

12 (1) in planning, decisionmaking, and providing

13 assistance, the Administrator takes into consider14 ation local input and participation directly and

15 through United States and indigenous private and

16 voluntary organizations;

17 (2) each of the nonemergency activities de18 scribed in paragraphs (2) through (6) of section 201

19 of such Act (7 U.S.C. 1721), including programs

20 that provide assistance to people of any age group

21 who are otherwise unable to meet their basic food

22 needs (including feeding programs for the disabled,

23 orphaned, elderly, sick and dying), are carried out;

24 and
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1 (3) greater flexibility is provided for program

2 and evaluation plans so that such assistance may be

3 developed to meet local needs, as provided for in sec4 tion 202(f) of such Act (7 U.S.C. 1722(f)).

5 (b) OTHER REQUIREMENTS.—In providing assist6 ance under the Agriculture Trade Development and As7 sistance Act of 1954, the Secretary of Agriculture and the

8 Administrator shall ensure that commodities are provided

9 in a manner that is consistent with subsections (a) and

10 (b) of section 403 of such Act (7 U.S.C. 1733(a) and (b)).

11 Subtitle B—Overseas Private

12 Investment Corporation

13 SEC. 211. PRIVATE SECTOR DEVELOPMENT ACTIVITIES OF

14 OPIC.

15 (a) PURPOSE.—The purpose of this section is to com16 mend OPIC for its recent initiative to provide financing

17 and insurance to an investment facility in partnership with

18 Citibank and to encourage OPIC to continue to work with

19 United States businesses and other United States entities

20 to invest in the affected areas of Central America and the

21 Caribbean, particularly in ways that will help promote sus22 tainable development.

23 (b) SENSE OF CONGRESS.—It is the sense of the

24 Congress that OPIC should, in accordance with its man25 date to foster private investment and enhance the ability
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1 of private enterprise to make its full contribution to the

2 development process, exercise the authorities it has to fur3 ther increase efforts to promote and support United States

4 sponsored private investment in the affected areas of Cen5 tral America and the Caribbean, including—

6 (1) issuing loans, guaranties, and insurance, to

7 support infrastructure, agriculture, small business,

8 tourism, and other projects as appropriate; and

9 (2) undertaking a special initiative that

10 includes—

11 (A) sending a needs assessment team to

12 the affected areas of Central America and the

13 Caribbean to determine ways in which OPIC

14 can best support the essential investment re15 quired to restore infrastructure and other criti16 cal services in those affected areas;

17 (B) engaging in an exhaustive outreach

18 program to involve United States companies in

19 the recovery process and exploring potential

20 new projects which will assist those affected

21 areas;

22 (C) consulting and coordinating with host

23 country governments to promote private invest24 ment in priority sectors; and
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1 (D) utilizing existing equity funds to sup2 port developmental private sector projects.

3 (c) TECHNICAL AMENDMENTS.—Section 234 of the

4 Foreign Assistance Act of 1961 (22 U.S.C. 2194) is

5 amended—

6 (1) by redesignating subsection (c) (the second

7 place it appears) as paragraph (5);

8 (2) by amending the heading of paragraph (5),

9 as redesignated by paragraph (1) of this subsection,

10 to read as follows:

11 ‘‘(5) CREATION OF FUND FOR ACQUISITION OF

12 EQUITY.—’’; and

13 (3) by indenting paragraph (5), as redesignated

14 by paragraph (1) of this subsection, one full meas15 ure.

16 Subtitle C—Economic Support

17 Fund Assistance

18 SEC. 221. ECONOMIC SUPPORT FUND ASSISTANCE.

19 (a) AUTHORIZATION OF APPROPRIATIONS.—There is

20 authorized to be appropriated to the President for fiscal

21 year 1999 $611,000,000 to carry out chapter 4 of part

22 II of the Foreign Assistance Act of 1961 (22 U.S.C. 2346

23 et seq.) for reconstruction and disaster mitigation assist24 ance for affected areas of Central America and the Carib25 bean.
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1 (b) USE OF AMOUNTS.—Of the amount appropriated

2 under subsection (a), the President shall reserve the fol3 lowing amounts for the following purposes:

4 (1) AGRICULTURE AND RURAL RECONSTRUC5 TION.—$283,000,000 for the construction and re6 pair of rural roads, the provision of micro-enterprise

7 loans, the provision of tools, seed, and fertilizer, and

8 for assistance for rural farmers to adopt sustainable

9 production techniques.

10 (2) DISEASE CONTROL, SURVEILLANCE, AND

11 PREVENTION.—$136,000,000 for the reconstruction

12 and rehabilitation of health posts and clinics, the

13 provision of water and sanitation services, and dis14 ease control, surveillance, and prevention.

15 (3) EDUCATION AND HOUSING.—$55,000,000

16 for construction, repair, and re-equipment of edu17 cational facilities, including the provision of school

18 supplies, and the re-equipment of new housing units.

19 (4) ENVIRONMENTAL MANAGEMENT AND DISAS20 TER MITIGATION.—$64,000,000 for environmental

21 management and disaster mitigation, including land

22 use planning and resources management.

23 (5) ANTI-CORRUPTION ACTIVITIES.—

24 $22,000,000 for the efficient management of local

25 reconstruction assistance, including anti-corruption
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1 training for municipal governments, nongovern2 mental organizations, and law enforcement.

3 (6) ASSISTANCE FOR THE DOMINICAN REPUB4 LIC AND OTHER CARIBBEAN COUNTRIES AFFECTED

5 BY HURRICANE GEORGES.—$42,000,000 for recon6 struction assistance related to health, economic revi7 talization, and housing for the Dominican Republic

8 and other Caribbean countries affected by Hurricane

9 Georges.

10 (c) ADMINISTRATIVE EXPENSES.—Of the amount

11 authorized to be appropriated under subsection (a), the

12 President shall reserve $6,000,000 for the operating ex13 penses of the United States Agency for International De14 velopment incurred in connection with assistance provided

15 under this Act.

16 SEC. 222. REIMBURSEMENT OF INTERNATIONAL DISASTER

17 ACCOUNT.

18 There is authorized to be appropriated to the Presi19 dent for fiscal year 1999 $25,000,000 to reimburse the

20 international disaster assistance account for expenses in21 curred with respect to international disaster assistance

22 provided for affected areas of Central America and the

23 Caribbean under chapter 9 of part I of the Foreign Assist24 ance Act of 1961 (22 U.S.C. 2292 et seq.) for recovery

25 from Hurricane Georges and Hurricane Mitch.
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1 SEC. 223. RULE OF CONSTRUCTION; AVAILABILITY OF

2 AMOUNTS.

3 (a) RULE OF CONSTRUCTION.—Amounts authorized

4 to be appropriated under this subtitle are in addition to

5 amounts otherwise available for the purposes described in

6 the section of this subtitle involved.

7 (b) AVAILABILITY OF AMOUNTS.—Amounts author8 ized to be appropriated under this subtitle are authorized

9 to remain available until expended.

10 TITLE III—DEPARTMENT OF

11 DEFENSE

12 SEC. 301. REPLACEMENT OF FUNDS USED FOR DISASTER

13 RELIEF AND RECONSTRUCTION.

14 In addition to amounts authorized to be appropriated

15 under any other law for the Department of Defense for

16 fiscal year 1999, funds are hereby authorized to be appro17 priated for the use of the Armed Forces and other activi18 ties and agencies of the Department of Defense for ex19 penses, not otherwise provided for, for operation and

20 maintenance, in amounts as follows:

21 (1) For replenishment of Department of De22 fense accounts used in providing disaster relief and

23 reconstruction to affected areas of Central America

24 and the Caribbean, $135,200,000, of which—
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1 (A) $75,000,000 may be used for replen2 ishment of operation and maintenance and mili3 tary personal accounts;

4 (B) $37,500,000 may be used for replen5 ishment of the Overseas Humanitarian Disaster

6 and Civic Aid account (including demining ini7 tiatives); and

8 (C) $20,000,000 may be used for replen9 ishment of the Commanders in Chief (CINC)

10 Initiative Fund.

11 (2) For the New Horizons Program,

12 $56,000,000 for expanded National Guard and Re13 serve exercises in Central American countries and

14 the Dominican Republic.

15 TITLE IV—IMMIGRATION AND

16 NATURALIZATION SERVICE

17 SEC. 401. DETENTION FACILITIES.

18 There is authorized to be appropriated to the Presi19 dent $80,000,000 to be used for Enforcement and Border

20 Affairs within the Immigration and Naturalization Service

21 (INS) to support increased detention requirements for

22 Central American criminal aliens held in detention by the

23 Immigration and Naturalization Service and to address an

24 expected influx of illegal immigrants from Central Amer25 ica.
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1 TITLE V—DEBT RESCHEDULING

2 AND REDUCTION FOR HON3 DURAS AND NICARAGUA;

4 FUNDING FOR THE CENTRAL

5 AMERICAN EMERGENCY

6 TRUST FUND OF THE INTER7 NATIONAL BANK FOR RECON8 STRUCTION AND DEVELOP9 MENT

10 Subtitle A—Debt Rescheduling and

11 Reduction for Honduras and

12 Nicaragua

13 SEC. 501. RESCHEDULING OF INTEREST PAYMENTS OWED

14 BY HONDURAS AND NICARAGUA.

15 The President is authorized to reschedule the repay16 ment of interest owed to the United States (or any agency

17 of the United States) in fiscal years 1999 and 2000 by

18 the Governments of Honduras and Nicaragua on debt

19 owed by such Governments to the United States that is

20 outstanding as of October 1, 1998.

21 SEC. 502. REDUCTION OF DEBT OWED BY HONDURAS.

22 (a) AUTHORITY.—

23 (1) IN GENERAL.—The President shall reduce

24 the amount owed to the United States (or any agen25 cy of the United States) by the Government of Hon-
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1 duras that is outstanding as of October 1, 1998, as

2 a result of concessional loans made to Honduras by

3 the United States under part I or chapter 4 of part

4 II of the Foreign Assistance Act of 1961, or prede5 cessor foreign economic assistance legislation.

6 (2) APPROPRIATIONS REQUIREMENT.—The au7 thority provided by this section may be exercised

8 only in such amounts or to such extent as is pro9 vided in advance by appropriations Acts.

10 (3) CERTAIN PROHIBITIONS INAPPLICABLE.—

11 (A) A reduction of debt pursuant to this section

12 shall not be considered assistance for purposes of

13 any provision of law limiting assistance to a country.

14 (B) The authority of this section may be exer15 cised notwithstanding section 620(r) of the Foreign

16 Assistance Act of 1961 or section 321 of the Inter17 national Development and Food Assistance Act of

18 1975.

19 (b) IMPLEMENTATION OF DEBT REDUCTION.—

20 (1) IN GENERAL.—The debt reduction pursuant

21 to subsection (a) shall be accomplished by the ex22 change of a new obligation for obligations outstand23 ing as of the date specified in subsection (a)(1).

24 (2) EXCHANGE OF OBLIGATIONS.—The Presi25 dent shall notify the agency primarily responsible for
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1 administering part I of the Foreign Assistance Act

2 of 1961 of the agreement with Honduras to ex3 change a new obligation for outstanding obligations

4 pursuant to this subsection. At the direction of the

5 President, the old obligations shall be canceled and

6 a new debt obligation for the country shall be estab7 lished, and such agency shall make an adjustment in

8 its accounts to reflect the debt reduction.

9 (c) CURRENCY OF PAYMENT.—The principal amount

10 of each new obligation issued pursuant to subsection (b)

11 shall be repaid in United States dollars.

12 (d) DEPOSIT OF PAYMENTS.—Principal repayments

13 of new obligations shall be deposited in the United States

14 Government account established for principal repayments

15 of the obligations for which those obligations were ex16 changed.

17 (e) RATE OF INTEREST.—New obligations issued by

18 a beneficiary country pursuant to subsection (b) shall bear

19 interest at concessional rates.

20 (f) AUTHORIZATION OF APPROPRIATIONS.—

21 (1) IN GENERAL.—There is authorized to be

22 appropriated for fiscal year 2000 $16,000,000 to

23 carry out this section.
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1 (2) AVAILABILITY.—Amounts authorized to be

2 appropriated under paragraph (1) are authorized to

3 remain available until expended.

4 Subtitle B—Authorization of Fund5 ing for the Central American

6 Emergency Trust Fund of the

7 International Bank for Recon8 struction and Development

9 SEC. 511. AUTHORIZATION OF FUNDING.

10 The Bretton Woods Agreements Act (22 U.S.C. 286–

11 286nn) is amended by adding at the end the following:

12 ‘‘SEC. 62. SUPPLEMENTAL FUNDING FOR THE CENTRAL

13 AMERICAN EMERGENCY TRUST FUND OF THE

14 INTERNATIONAL BANK FOR RECONSTRUC15 TION AND DEVELOPMENT.

16 ‘‘(a) CONTRIBUTION AUTHORITY.—

17 ‘‘(1) IN GENERAL.—The United States Gov18 ernor of the Bank may, on behalf of the United

19 States, contribute $25,000,000 to the Central Amer20 ican Emergency Trust Fund of the Bank.

21 ‘‘(2) SUBJECT TO APPROPRIATIONS.—The au22 thority provided by paragraph (1) shall be effective

23 only to such extent or in such amounts as are pro24 vided in advance in appropriations Acts.
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1 ‘‘(b) LIMITATIONS ON AUTHORIZATION OF APPRO2 PRIATIONS.—

3 ‘‘(1) IN GENERAL.—For the contribution pro4 vided for in subsection (a), there are authorized to

5 be appropriated not more than $25,000,000 for fis6 cal year 1999, for payment by the President of the

7 United States.

8 ‘‘(2) RULE OF CONSTRUCTION.—The authority

9 provided by paragraph (1) is in addition to any ap10 propriations authority otherwise provided by law.

11 ‘‘(c) AVAILABILITY.—Amounts appropriated under

12 subsection (b) are authorized to remain available until ex13 pended.’’.

Æ