IB

104TH CONGRESS

2D SESSION H. R. 3540

IN THE HOUSE OF REPRESENTATIVES

JULY 26, 1996

Ordered to be printed with the amendments of the Senate numbered

AN ACT

Making appropriations for foreign operations, export financing, and related programs for the fiscal year ending

September 30, 1997, 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,

3 Ω1æThat the following sums are appropriated, out of any

4 money in the Treasury not otherwise appropriated, for the

5 fiscal year ending September 30, 1997, and for other pur6 poses, namely:

7 TITLE I—EXPORT AND INVESTMENT

8 ASSISTANCE

9 EXPORT-IMPORT BANK OF THE UNITED STATES

10 The Export-Import Bank of the United States is au11 thorized to make such expenditures within the limits of

12 funds and borrowing authority available to such corpora-
2

HR 3540 PP

1 tion, and in accordance with law, and to make such con2 tracts and commitments without regard to fiscal year limi3 tations, as provided by section 104 of the Government

4 Corporation Control Act, as may be necessary in carrying

5 out the program for the current fiscal year for such cor6 poration: Provided, That none of the funds available dur7 ing the current fiscal year may be used to make expendi8 tures, contracts, or commitments for the export of nuclear

9 equipment, fuel, or technology to any country other than

10 a nuclear-weapon State as defined in Article IX of the

11 Treaty on the Non-Proliferation of Nuclear Weapons eligi12 ble to receive economic or military assistance under this

13 Act that has detonated a nuclear explosive after the date

14 of enactment of this Act.

15 SUBSIDY APPROPRIATION

16 For the cost of direct loans, loan guarantees, insur17 ance, and tied-aid grants as authorized by section 10 of

18 the Export-Import Bank Act of 1945, as amended,

19 $726,000,000 to remain available until September 30,

20 1998: Provided, That such costs, including the cost of

21 modifying such loans, shall be as defined in section 502

22 of the Congressional Budget Act of 1974: Provided fur23 ther, That such sums shall remain available until 2012 for

24 the disbursement of direct loans, loan guarantees, insur25 ance and tied-aid grants obligated in fiscal years 1997 and

26 1998: Provided further, That up to $50,000,000 of funds
3

HR 3540 PP

1 appropriated by this paragraph shall remain available

2 until expended and may be used for tied-aid grant pur3 poses: Provided further, That none of the funds appro4 priated by this paragraph may be used for tied-aid credits

5 or grants except through the regular notification proce6 dures of the Committees on Appropriations: Provided fur7 ther, That funds appropriated by this paragraph are made

8 available notwithstanding section 2(b)(2) of the Export9 Import Bank Act of 1945, in connection with the purchase

10 or lease of any product by any East European country,

11 any Baltic State, or any agency or national thereof.

12 ADMINISTRATIVE EXPENSES

13 For administrative expenses to carry out the direct

14 and guaranteed loan and insurance programs (to be com15 puted on an accrual basis), including hire of passenger

16 motor vehicles and services as authorized by 5 U.S.C.

17 3109, and not to exceed $20,000 for official reception and

18 representation expenses for members of the Board of Di19 rectors, $47,614,000 (reduced by $1,000,000): Provided,

20 That necessary expenses (including special services per21 formed on a contract or fee basis, but not including other

22 personal services) in connection with the collection of mon23 eys owed the Export-Import Bank, repossession or sale of

24 pledged collateral or other assets acquired by the Export25 Import Bank in satisfaction of moneys owed the Export26 Import Bank, or the investigation or appraisal of any
4

HR 3540 PP

1 property, or the evaluation of the legal or technical aspects

2 of any transaction for which an application for a loan,

3 guarantee or insurance commitment has been made, shall

4 be considered nonadministrative expenses for the purposes

5 of this heading: Provided further, That, notwithstanding

6 subsection (b) of section 117 of the Export Enhancement

7 Act of 1992, subsection (a) thereof shall remain in effect

8 until October 1, 1997.

9 OVERSEAS PRIVATE INVESTMENT CORPORATION

10 NONCREDIT ACCOUNT

11 The Overseas Private Investment Corporation is au12 thorized to make, without regard to fiscal year limitations,

13 as provided by 31 U.S.C. 9104, such expenditures and

14 commitments within the limits of funds available to it and

15 in accordance with law as may be necessary: Provided,

16 That the amount available for administrative expenses to

17 carry out the credit and insurance programs (including an

18 amount for official reception and representation expenses

19 which shall not exceed $35,000) shall not exceed

20 $30,000,000: Provided further, That project-specific trans21 action costs, including direct and indirect costs incurred

22 in claims settlements, and other direct costs associated

23 with services provided to specific investors or potential in24 vestors pursuant to section 234 of the Foreign Assistance

25 Act of 1961, shall not be considered administrative ex26 penses for the purposes of this heading.
5

HR 3540 PP

1 PROGRAM ACCOUNT

2 For the cost of direct and guaranteed loans,

3 $72,000,000, as authorized by section 234 of the Foreign

4 Assistance Act of 1961: Provided, That such costs, includ5 ing the cost of modifying such loans, shall be as defined

6 in section 502 of the Congressional Budget Act of 1974:

7 Provided further, That such sums shall be available for di8 rect loan obligations and loan guaranty commitments in9 curred or made during fiscal years 1997 and 1998: Pro10 vided further, That such sums shall remain available

11 through fiscal year 2005 for the disbursement of direct

12 and guaranteed loans obligated in fiscal year 1997, and

13 through fiscal year 2006 for the disbursement of direct

14 and guaranteed loans obligated in fiscal year 1998. In ad15 dition, such sums as may be necessary for administrative

16 expenses to carry out the credit program may be derived

17 from amounts available for administrative expenses to

18 carry out the credit and insurance programs in the Over19 seas Private Investment Corporation Noncredit Account

20 and merged with said account.

21 FUNDS APPROPRIATED TO THE PRESIDENT

22 TRADE AND DEVELOPMENT AGENCY

23 For necessary expenses to carry out the provisions

24 of section 661 of the Foreign Assistance Act of 1961,

25 $38,000,000, to remain available for obligation until Sep-
6

HR 3540 PP

1 tember 30, 1998: Provided, That the Trade and Develop2 ment Agency may receive reimbursements from corpora3 tions and other entities for the costs of grants for feasibil4 ity studies and other project planning services, to be de5 posited as an offsetting collection to this account and to

6 be available for obligation until September 30, 1998, for

7 necessary expenses under this paragraph: Provided fur8 ther, That such reimbursements shall not cover, or be allo9 cated against, direct or indirect administrative costs of the

10 agency.

11 TITLE II—BILATERAL ECONOMIC ASSISTANCE

12 FUNDS APPROPRIATED TO THE PRESIDENT

13 For expenses necessary to enable the President to

14 carry out the provisions of the Foreign Assistance Act of

15 1961, and for other purposes, to remain available until

16 September 30, 1997, unless otherwise specified herein, as

17 follows:

18 AGENCY FOR INTERNATIONAL DEVELOPMENT

19 CHILD SURVIVAL AND DISEASE PROGRAMS FUND

20 For necessary expenses to carry out the provisions

21 of part I and chapter 4 of part II of the Foreign Assist22 ance Act of 1961, for child survival, basic education, as23 sistance to combat tropical and other diseases, and related

24 activities, in addition to funds otherwise available for such

25 purposes, $600,000,000, to remain available until ex26 pended: Provided, That this amount shall be made avail-
7

HR 3540 PP

1 able for such activities as (1) immunization programs, (2)

2 oral rehydration programs, (3) health and nutrition pro3 grams, and related education programs, which address the

4 needs of mothers and children, (4) water and sanitation

5 programs, (5) assistance for displaced and orphaned chil6 dren, (6) programs for the prevention, treatment, and con7 trol of, and research on, tuberculosis, HIV/AIDS, polio,

8 malaria and other diseases, (7) not to exceed $98,000,000

9 for basic education programs for children, and (8) a con10 tribution on a grant basis to the United Nations Chil11 dren’s Fund (UNICEF) pursuant to section 301 of the

12 Foreign Assistance Act of 1961.

13 DEVELOPMENT ASSISTANCE

14 (INCLUDING TRANSFER OF FUNDS)

15 For necessary expenses to carry out the provisions

16 of sections 103 through 106 and chapter 10 of part I of

17 the Foreign Assistance Act of 1961, $1,150,000,000, to

18 remain available until September 30, 1998: Provided,

19 That none of the funds made available in this Act nor

20 any unobligated balances from prior appropriations may

21 be made available to any organization or program which,

22 as determined by the President of the United States, sup23 ports or participates in the management of a program of

24 coercive abortion or involuntary sterilization: Provided fur25 ther, That none of the funds made available under this

26 heading may be used to pay for the performance of abor-
8

HR 3540 PP

1 tion as a method of family planning or to motivate or co2 erce any person to practice abortions; and that in order

3 to reduce reliance on abortion in developing nations, funds

4 shall be available only to voluntary family planning

5 projects which offer, either directly or through referral to,

6 or information about access to, a broad range of family

7 planning methods and services: Provided further, That in

8 awarding grants for natural family planning under section

9 104 of the Foreign Assistance Act of 1961 no applicant

10 shall be discriminated against because of such applicant’s

11 religious or conscientious commitment to offer only natu12 ral family planning; and, additionally, all such applicants

13 shall comply with the requirements of the previous proviso:

14 Provided further, That for purposes of this or any other

15 Act authorizing or appropriating funds for foreign oper16 ations, export financing, and related programs, the term

17 ‘‘motivate’’, as it relates to family planning assistance,

18 shall not be construed to prohibit the provision, consistent

19 with local law, of information or counseling about all preg20 nancy options: Provided further, That nothing in this para21 graph shall be construed to alter any existing statutory

22 prohibitions against abortion under section 104 of the

23 Foreign Assistance Act of 1961: Provided further, That

24 the total amount of funds appropriated under this heading

25 and under the heading ‘‘Child Survival and Disease Pro-
9

HR 3540 PP

1 grams Fund’’ should be made available for each of the

2 sub-Saharan Africa and Latin America and Caribbean re3 gions in at least the same proportion as the total amount

4 identified in the fiscal year 1997 draft congressional pres5 entation document for development assistance for each

6 such region is to the total amount requested for develop7 ment assistance for such fiscal year.

8 PRIVATE AND VOLUNTARY ORGANIZATIONS

9 None of the funds appropriated or otherwise made

10 available by this Act for development assistance may be

11 made available to any United States private and voluntary

12 organization, except any cooperative development organi13 zation, which obtains less than 20 per centum of its total

14 annual funding for international activities from sources

15 other than the United States Government: Provided, That

16 the requirements of the provisions of section 123(g) of the

17 Foreign Assistance Act of 1961 and the provisions on pri18 vate and voluntary organizations in title II of the ‘‘Foreign

19 Assistance and Related Programs Appropriations Act,

20 1985’’ (as enacted in Public Law 98–473) shall be super21 seded by the provisions of this section, except that the au22 thority contained in the last sentence of section 123(g)

23 may be exercised by the Administrator with regard to the

24 requirements of this paragraph.

25 Funds appropriated or otherwise made available

26 under title II of this Act should be made available to pri-
10

HR 3540 PP

1 vate and voluntary organizations at a level which is equiv2 alent to the level provided in fiscal year 1995. Such private

3 and voluntary organizations shall include those which op4 erate on a not-for-profit basis, receive contributions from

5 private sources, receive voluntary support from the public

6 and are deemed to be among the most cost-effective and

7 successful providers of development assistance.

8 INTERNATIONAL DISASTER ASSISTANCE

9 For necessary expenses for international disaster re10 lief, rehabilitation, and reconstruction assistance pursuant

11 to section 491 of the Foreign Assistance Act of 1961, as

12 amended, $190,000,000, to remain available until ex13 pended.

14 DEBT RESTRUCTURING

15 For the cost, as defined in section 502 of the Con16 gressional Budget Act of 1974, of modifying direct loans

17 and loan guarantees, as the President may determine, for

18 which funds have been appropriated or otherwise made

19 available for programs within the International Affairs

20 Budget Function 150, including the cost of selling, reduc21 ing, or canceling amounts, through debt buybacks and

22 swaps, owed to the United States as a result of

23 concessional loans made to eligible Latin American and

24 Caribbean countries, pursuant to part IV of the Foreign

25 Assistance Act of 1961, $10,000,000, to remain available

26 until expended: Provided, That none of the funds appro-
11

HR 3540 PP

1 priated under this heading shall be obligated or expended

2 except as provided through the regular notification proce3 dures of the Committees on Appropriations.

4 MICRO AND SMALL ENTERPRISE DEVELOPMENT PROGRAM

5 ACCOUNT

6 For the cost of direct loans and loan guarantees,

7 $1,500,000, as authorized by section 108 of the Foreign

8 Assistance Act of 1961, as amended: Provided, That such

9 costs shall be as defined in section 502 of the Congres10 sional Budget Act of 1974: Provided further, That guaran11 tees of loans made under this heading in support of micro12 enterprise activities may guarantee up to 70 percent of

13 the principal amount of any such loans notwithstanding

14 section 108 of the Foreign Assistance Act of 1961. In ad15 dition, for administrative expenses to carry out programs

16 under this heading, $500,000, all of which may be trans17 ferred to and merged with the appropriation for Operating

18 Expenses of the Agency for International Development:

19 Provided further, That funds made available under this

20 heading shall remain available until September 30, 1998.

21 HOUSING GUARANTY PROGRAM ACCOUNT

22 For the cost, as defined in section 502 of the Con23 gressional Budget Act of 1974, of guaranteed loans au24 thorized by sections 221 and 222 of the Foreign Assist25 ance Act of 1961, $500,000, to remain available until Sep26 tember 30, 1998: Provided, That these funds are available
12

HR 3540 PP

1 to subsidize loan principal, 100 percent of which shall be

2 guaranteed, pursuant to the authority of such sections. In

3 addition, for administrative expenses to carry out guaran4 teed loan programs, $6,000,000, all of which may be

5 transferred to and merged with the appropriation for Op6 erating Expenses of the Agency for International Develop7 ment: Provided further, That commitments to guarantee

8 loans under this heading may be entered into notwith9 standing the second and third sentences of section 222(a)

10 and, with regard to programs for the benefit of South Af11 ricans disadvantaged by apartheid, section 223(j) of the

12 Foreign Assistance Act of 1961: Provided further, That

13 funds appropriated under this heading for the cost of

14 guaranteed loans may be made available for obligation

15 only for activities in South Africa.

16 PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND

17 DISABILITY FUND

18 For payment to the ‘‘Foreign Service Retirement and

19 Disability Fund’’, as authorized by the Foreign Service

20 Act of 1980, $43,826,000.

21 OPERATING EXPENSES OF THE AGENCY FOR

22 INTERNATIONAL DEVELOPMENT

23 For necessary expenses to carry out the provisions

24 of section 667, $465,750,000: Provided, That of this

25 amount not more than $1,475,000 may be made available

26 to pay for printing costs: Provided further, That none of
13

HR 3540 PP

1 the funds appropriated by this Act for programs adminis2 tered by the Agency for International Development (AID)

3 may be used to finance printing costs of any report or

4 study (except feasibility, design, or evaluation reports or

5 studies) in excess of $25,000 without the approval of the

6 Administrator of the Agency or the Administrator’s des7 ignee.

8 OPERATING EXPENSES OF THE AGENCY FOR INTER9 NATIONAL DEVELOPMENT OFFICE OF INSPECTOR

10 GENERAL

11 For necessary expenses to carry out the provisions

12 of section 667, $30,000,000, to remain available until Sep13 tember 30, 1998, which sum shall be available for the Of14 fice of the Inspector General of the Agency for Inter15 national Development.

16 OTHER BILATERAL ECONOMIC ASSISTANCE

17 ECONOMIC SUPPORT FUND

18 For necessary expenses to carry out the provisions

19 of chapter 4 of part II, $2,336,000,000, to remain avail20 able until September 30, 1998: Provided, That any funds

21 appropriated under this heading that are made available

22 for Israel shall be available on a grant basis as a cash

23 transfer and shall be disbursed within thirty days of enact24 ment of this Act or by October 31, 1996, whichever is

25 later: Provided further, That none of the funds appro-
14

HR 3540 PP

1 priated under this heading shall be made available for

2 Zaire.

3 INTERNATIONAL FUND FOR IRELAND

4 For necessary expenses to carry out the provisions

5 of chapter 4 of part II of the Foreign Assistance Act of

6 1961, $19,600,000, which shall be available for the United

7 States contribution to the International Fund for Ireland

8 and shall be made available in accordance with the provi9 sions of the Anglo-Irish Agreement Support Act of 1986

10 (Public Law 99–415): Provided, That such amount shall

11 be expended at the minimum rate necessary to make time12 ly payment for projects and activities: Provided further,

13 That funds made available under this heading shall re14 main available until September 30, 1998.

15 ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC

16 STATES

17 (a) For necessary expenses to carry out the provisions

18 of the Foreign Assistance Act of 1961 and the Support

19 for East European Democracy (SEED) Act of 1989,

20 $475,000,000, to remain available until September 30,

21 1998, which shall be available, notwithstanding any other

22 provision of law, for economic assistance and for related

23 programs for Eastern Europe and the Baltic States.

24 (b) Funds appropriated under this heading or in prior

25 appropriations Acts that are or have been made available

26 for an Enterprise Fund may be deposited by such Fund
15

HR 3540 PP

1 in interest-bearing accounts prior to the Fund’s disburse2 ment of such funds for program purposes. The Fund may

3 retain for such program purposes any interest earned on

4 such deposits without returning such interest to the Treas5 ury of the United States and without further appropria6 tion by the Congress. Funds made available for Enterprise

7 Funds shall be expended at the minimum rate necessary

8 to make timely payment for projects and activities.

9 (c) Funds appropriated under this heading shall be

10 considered to be economic assistance under the Foreign

11 Assistance Act of 1961 for purposes of making available

12 the administrative authorities contained in that Act for

13 the use of economic assistance.

14 (d) None of the funds appropriated under this head15 ing may be made available for new housing construction

16 or repair or reconstruction of existing housing in Bosnia

17 and Herzegovina unless directly related to the efforts of

18 United States troops to promote peace in said country.

19 (e) With regard to funds appropriated or otherwise

20 made available under this heading for the economic revi21 talization program in Bosnia and Herzegovina, and local

22 currencies generated by such funds (including the conver23 sion of funds appropriated under this heading into cur24 rency used by Bosnia and Herzegovina as local currency
16

HR 3540 PP

1 and local currency returned or repaid under such pro2 gram)—

3 (1) the Administrator of the Agency for Inter4 national Development shall provide written approval

5 for grants and loans prior to the obligation and ex6 penditure of funds for such purposes, and prior to

7 the use of funds that have been returned or repaid

8 to any lending facility or grantee; and

9 (2) the provisions of section 531 of this Act

10 shall apply.

11 ASSISTANCE FOR THE NEW INDEPENDENT STATES OF

12 THE FORMER SOVIET UNION

13 (a) For necessary expenses to carry out the provisions

14 of chapter 11 of part I of the Foreign Assistance Act of

15 1961 and the FREEDOM Support Act, for assistance for

16 the new independent states of the former Soviet Union

17 and for related programs, $590,000,000, to remain avail18 able until September 30, 1998: Provided, That the provi19 sions of section 498B(j) of the Foreign Assistance Act of

20 1961 shall apply to funds appropriated by this paragraph.

21 (b) None of the funds appropriated under this head22 ing shall be transferred to the Government of Russia—

23 (1) unless that Government is making progress

24 in implementing comprehensive economic reforms

25 based on market principles, private ownership, nego26 tiating repayment of commercial debt, respect for
17

HR 3540 PP

1 commercial contracts, and equitable treatment of

2 foreign private investment; and

3 (2) if that Government applies or transfers

4 United States assistance to any entity for the pur5 pose of expropriating or seizing ownership or control

6 of assets, investments, or ventures.

7 (c) Funds may be furnished without regard to sub8 section (b) if the President determines that to do so is

9 in the national interest.

10 (d) None of the funds appropriated under this head11 ing shall be made available to any government of the new

12 independent states of the former Soviet Union if that gov13 ernment directs any action in violation of the territorial

14 integrity or national sovereignty of any other new inde15 pendent state, such as those violations included in the Hel16 sinki Final Act: Provided, That such funds may be made

17 available without regard to the restriction in this sub18 section if the President determines and reports to the

19 Committees on Appropriations that to do so is in the na20 tional security interest of the United States: Provided fur21 ther, That the restriction of this subsection shall not apply

22 to the use of such funds for the provision of assistance

23 for purposes of humanitarian, disaster and refugee relief.

24 (e) None of the funds appropriated under this head25 ing for the new independent states of the former Soviet
18

HR 3540 PP

1 Union shall be made available for any state to enhance

2 its military capability: Provided, That this restriction does

3 not apply to demilitarization or nonproliferation programs.

4 (f) Funds appropriated under this heading shall be

5 subject to the regular notification procedures of the Com6 mittees on Appropriations.

7 (g) Funds made available in this Act for assistance

8 to the new independent states of the former Soviet Union

9 shall be subject to the provisions of section 117 (relating

10 to environment and natural resources) of the Foreign As11 sistance Act of 1961.

12 (h) Funds appropriated under this heading may be

13 made available for assistance for Mongolia.

14 (i) Funds made available in this Act for assistance

15 to the New Independent States of the former Soviet Union

16 shall be provided to the maximum extent feasible through

17 the private sector, including small- and medium-size busi18 nesses, entrepreneurs, and others with indigenous private

19 enterprises in the region, intermediary development orga20 nizations committed to private enterprise, and private vol21 untary organizations: Provided, That grantees and con22 tractors should, to the maximum extent possible, place in

23 key staff positions specialists with prior on the ground ex24 pertise in the region of activity and fluency in one of the

25 local languages.
19

HR 3540 PP

1 (j) In issuing new task orders, entering into con2 tracts, or making grants, with funds appropriated under

3 this heading or in prior appropriations Acts, for projects

4 or activities that have as one of their primary purposes

5 the fostering of private sector development, the Coordina6 tor for United States Assistance to the New Independent

7 States and the implementing agency shall encourage the

8 participation of and give significant weight to contractors

9 and grantees who propose investing a significant amount

10 of their own resources (including volunteer services and

11 in-kind contributions) in such projects and activities.

12 (k)(1) None of the funds appropriated under this

13 heading may be made available for Russia unless the

14 President determines and certifies in writing to the Com15 mittees on Appropriations that the Government of Russia

16 has terminated implementation of arrangements to pro17 vide Iran with technical expertise, training, technology, or

18 equipment necessary to develop a nuclear reactor or relat19 ed nuclear research facilities or programs.

20 (2) Subparagraph (1) shall not apply if the President

21 determines and reports to the Committees on Appropria22 tions that making such funds available is important to the

23 national security interest of the United States. Any such

24 determination shall cease to be effective six months after

25 being made unless the President determines that its con-
20

HR 3540 PP

1 tinuation is important to the national security interest of

2 the United States.

3 (l) Funds appropriated under this heading or in prior

4 appropriations Acts that are or have been made available

5 for an Enterprise Fund may be deposited by such Fund

6 in interest-bearing accounts prior to the disbursement of

7 such funds by the Fund for program purposes. The Fund

8 may retain for such program purposes any interest earned

9 on such deposits without returning such interest to the

10 Treasury of the United States and without further appro11 priation by the Congress. Funds made available for Enter12 prise Funds shall be expended at the minimum rate nec13 essary to make timely payment for projects and activities.

14 (m)(1) Notwithstanding section 907 of the FREE15 DOM Support Act or any other provision of law, non16 governmental organizations and private voluntary organi17 zations shall not be precluded from using facilities or vehi18 cles of the Government of Azerbaijan to provide humani19 tarian assistance to refugees and internally displaced per20 sons in Azerbaijan with funds made available under this

21 heading, or from using such assistance to make necessary

22 repairs to such facilities (such as health clinics and hous23 ing) or vehicles that are used to provide the assistance.

24 (2) Humanitarian assistance may be provided with

25 funds made available under this heading to refugees and
21

HR 3540 PP

1 internally displaced persons in Azerbaijan only if humani2 tarian assistance is also provided to refugees and inter3 nally displaced persons in Nagorno-Karabagh with funds

4 made available under this heading, in accordance with

5 paragraph (3).

6 (3) Humanitarian assistance may be provided with

7 funds made available under this heading to refugees and

8 internally displaced persons in Azerbaijan and Nagorno9 Karabagh only in the proportion that the number of refu10 gees and internally displaced persons in Azerbaijan and

11 Nagorno-Karabagh, respectively, bears to the total num12 ber of refugees and internally displaced persons in both

13 Azerbaijan and Nagorno-Karabagh, but in no case more

14 than $7 to Azerbaijan for every dollar to Nagorno15 Karabagh.

16 INDEPENDENT AGENCIES

17 AFRICAN DEVELOPMENT FOUNDATION

18 For necessary expenses to carry out the provisions

19 of title V of the International Security and Development

20 Cooperation Act of 1980, Public Law 96–533, and to

21 make such contracts and commitments without regard to

22 fiscal year limitations, as provided by 31 U.S.C. 9104,

23 $11,500,000: Provided, That when, with the permission

24 of the President of the Foundation, funds made available

25 to a grantee are invested pending disbursement, the re-
22

HR 3540 PP

1 sulting interest is not required to be deposited in the Unit2 ed States Treasury if the grantee uses the resulting inter3 est for the purpose for which the grant was made: Pro4 vided further, That this provision applies with respect to

5 both interest earned before and interest earned after the

6 enactment of this provision: Provided further, That not7 withstanding section 505(a)(2) of the African Develop8 ment Foundation Act, in exceptional circumstances the

9 board of directors of the Foundation may waive the

10 $250,000 limitation contained in that section with respect

11 to a project: Provided further, That the Foundation shall

12 provide a report to the Committees on Appropriations

13 after each time such waiver authority is exercised.

14 INTER-AMERICAN FOUNDATION

15 For expenses necessary to carry out the functions of

16 the Inter-American Foundation in accordance with the

17 provisions of section 401 of the Foreign Assistance Act

18 of 1969, and to make such contracts and commitments

19 without regard to fiscal year limitations, as provided by

20 31 U.S.C. 9104, $20,000,000.

21 PEACE CORPS

22 For expenses necessary to carry out the provisions

23 of the Peace Corps Act (75 Stat. 612), $212,000,000, in24 cluding the purchase of not to exceed five passenger motor

25 vehicles for administrative purposes for use outside of the

26 United States: Provided, That none of the funds appro-
23

HR 3540 PP

1 priated under this heading shall be used to pay for abor2 tions: Provided further, That funds appropriated under

3 this heading shall remain available until September 30,

4 1998.

5 DEPARTMENT OF STATE

6 INTERNATIONAL NARCOTICS CONTROL

7 For necessary expenses to carry out section 481 of

8 the Foreign Assistance Act of 1961, $150,000,000: Pro9 vided, That during fiscal year 1997, the Department of

10 State may also use the authority of section 608 of the

11 Act, without regard to its restrictions, to receive non-lethal

12 excess property from an agency of the United States Gov13 ernment for the purpose of providing it to a foreign coun14 try under chapter 8 of part I of that Act subject to the

15 regular notification procedures of the Committees on Ap16 propriations.

17 MIGRATION AND REFUGEE ASSISTANCE

18 For expenses, not otherwise provided for, necessary

19 to enable the Secretary of State to provide, as authorized

20 by law, a contribution to the International Committee of

21 the Red Cross, assistance to refugees, including contribu22 tions to the International Organization for Migration and

23 the United Nations High Commissioner for Refugees, and

24 other activities to meet refugee and migration needs; sala25 ries and expenses of personnel and dependents as author26 ized by the Foreign Service Act of 1980; allowances as
24

HR 3540 PP

1 authorized by sections 5921 through 5925 of title 5, Unit2 ed States Code; purchase and hire of passenger motor ve3 hicles; and services as authorized by section 3109 of title

4 5, United States Code, $650,000,000: Provided, That not

5 more than $12,000,000 shall be available for administra6 tive expenses: Provided further, That obligations of funds

7 to the United Nations High Commissioner for Refugees

8 for support of refugees from Rwanda shall be subject to

9 the regular notification procedures of the Committees on

10 Appropriations.

11 REFUGEE RESETTLEMENT ASSISTANCE

12 For necessary expenses for the targeted assistance

13 program authorized by title IV of the Immigration and

14 Nationality Act and section 501 of the Refugee Education

15 Assistance Act of 1980 and administered by the Office of

16 Refugee Resettlement of the Department of Health and

17 Human Services, in addition to amounts otherwise avail18 able for such purposes, $5,000,000.

19 UNITED STATES EMERGENCY REFUGEE AND MIGRATION

20 ASSISTANCE FUND

21 For necessary expenses to carry out the provisions

22 of section 2(c) of the Migration and Refugee Assistance

23 Act of 1962, as amended (22 U.S.C. 260(c)),

24 $50,000,000, to remain available until expended: Pro25 vided, That the funds made available under this heading

26 are appropriated notwithstanding the provisions contained
25

HR 3540 PP

1 in section 2(c)(2) of the Act which would limit the amount

2 of funds which could be appropriated for this purpose.

3 NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND

4 RELATED PROGRAMS

5 For necessary expenses for nonproliferation, anti-ter6 rorism and related programs and activities, $135,000,000,

7 to carry out the provisions of chapter 8 of part II of the

8 Foreign Assistance Act of 1961 for anti-terrorism assist9 ance, section 504 of the FREEDOM Support Act for the

10 Nonproliferation and Disarmanent Fund, section 23 of the

11 Arms Export Control Act for demining activities, notwith12 standing any other provision of law, including activities

13 implemented through nongovernmental and international

14 organizations, section 301 of the Foreign Assistance Act

15 of 1961 for a voluntary contribution to the International

16 Atomic Energy Agency (IAEA) and a voluntary contribu17 tion to the Korean Peninsula Energy Development Orga18 nization (KEDO), and for the acquisition and provision

19 of goods and services, or for grants to Israel necessary

20 to support the eradication of terrorism in and around Is21 rael: Provided, That of this amount not to exceed

22 $15,000,000, to remain available until expended, may be

23 made available for the Nonproliferation and Disarmament

24 Fund, notwithstanding any other provision of law, to pro25 mote bilateral and multilateral activities relating to non26 proliferation and disarmament: Provided further, That
26

HR 3540 PP

1 such funds may also be used for such countries other than

2 the new independent states of the former Soviet Union

3 and international organizations when it is in the national

4 security interest of the United States to do so: Provided

5 further, That such funds shall be subject to the regular

6 notification procedures of the Committees on Appropria7 tions: Provided further, That funds appropriated under

8 this heading may be made available for the International

9 Atomic Energy Agency only if the Secretary of State de10 termines (and so reports to the Congress) that Israel is

11 not being denied its right to participate in the activities

12 of that Agency: Provided further, That not to exceed

13 $13,000,000 may be made available to the Korean Penin14 sula Energy Development Organization (KEDO) only for

15 administrative expenses and heavy fuel oil costs associated

16 with the Agreed Framework: Provided further, That such

17 funds shall be subject to the regular notification proce18 dures of the Committees on Appropriations.

19 TITLE III—MILITARY ASSISTANCE

20 FUNDS APPROPRIATED TO THE PRESIDENT

21 INTERNATIONAL MILITARY EDUCATION AND TRAINING

22 For necessary expenses to carry out the provisions

23 of section 541 of the Foreign Assistance Act of 1961,

24 $45,000,000 (reduced by $1,525,000): Provided, That

25 none of the funds appropriated under this heading shall
27

HR 3540 PP

1 be available for Zaire and Guatemala: Provided further,

2 That funds appropriated under this heading for grant fi3 nanced military education and training for Indonesia may

4 only be available for expanded international military edu5 cation and training.

6 FOREIGN MILITARY FINANCING PROGRAM

7 For expenses necessary for grants to enable the

8 President to carry out the provisions of section 23 of the

9 Arms Export Control Act, $3,222,250,000: Provided, That

10 funds appropriated by this paragraph that are made avail11 able for Israel and Egypt shall be made available only as

12 grants: Provided further, That the funds appropriated by

13 this paragraph that are made available for Israel shall be

14 disbursed within thirty days of enactment of this Act or

15 by October 31, 1996, whichever is later: Provided further,

16 That to the extent that the Government of Israel requests

17 that funds be used for such purposes, grants made avail18 able for Israel by this paragraph shall, as agreed by Israel

19 and the United States, be available for advanced weapons

20 systems, of which not less than $475,000,000 shall be

21 available for the procurement in Israel of defense articles

22 and defense services, including research and development:

23 Provided further, That funds made available under this

24 paragraph shall be nonrepayable notwithstanding any re25 quirement in section 23 of the Arms Export Control Act:

26 Provided further, That none of the funds made available
28

HR 3540 PP

1 under this heading shall be available for any non-NATO

2 country participating in the Partnership for Peace Pro3 gram except through the regular notification procedures

4 of the Committees on Appropriations.

5 For the cost, as defined in section 502 of the Con6 gressional Budget Act of 1974, of direct loans authorized

7 by section 23 of the Arms Export Control Act as follows:

8 cost of direct loans, $35,000,000: Provided, That these

9 funds are available to subsidize gross obligations for the

10 principal amount of direct loans of not to exceed

11 $323,815,000: Provided further, That the rate of interest

12 charged on such loans shall be not less than the current

13 average market yield on outstanding marketable obliga14 tions of the United States of comparable maturities: Pro15 vided further, That funds appropriated under this heading

16 shall be made available for Greece and Turkey only on

17 a loan basis, and the principal amount of direct loans for

18 each country shall not exceed the following: $103,471,000

19 only for Greece and $147,816,000 only for Turkey.

20 None of the funds made available under this heading

21 shall be available to finance the procurement of defense

22 articles, defense services, or design and construction serv23 ices that are not sold by the United States Government

24 under the Arms Export Control Act unless the foreign

25 country proposing to make such procurements has first
29

HR 3540 PP

1 signed an agreement with the United States Government

2 specifying the conditions under which such procurements

3 may be financed with such funds: Provided, That all coun4 try and funding level increases in allocations shall be sub5 mitted through the regular notification procedures of sec6 tion 515 of this Act: Provided further, That funds made

7 available under this heading shall be obligated upon appor8 tionment in accordance with paragraph (5)(C) of title 31,

9 United States Code, section 1501(a): Provided further,

10 That none of the funds appropriated under this heading

11 shall be available for Zaire, Sudan, Liberia, and Guate12 mala: Provided further, That only those countries for

13 which assistance was justified for the ‘‘Foreign Military

14 Sales Financing Program’’ in the fiscal year 1989 con15 gressional presentation for security assistance programs

16 may utilize funds made available under this heading for

17 procurement of defense articles, defense services or design

18 and construction services that are not sold by the United

19 States Government under the Arms Export Control Act:

20 Provided further, That, subject to the regular notification

21 procedures of the Committees on Appropriations, funds

22 made available under this heading for the cost of direct

23 loans may also be used to supplement the funds available

24 under this heading for grants, and funds made available

25 under this heading for grants may also be used to supple-
30

HR 3540 PP

1 ment the funds available under this heading for the cost

2 of direct loans: Provided further, That funds appropriated

3 under this heading shall be expended at the minimum rate

4 necessary to make timely payment for defense articles and

5 services: Provided further, That not more than

6 $23,250,000 of the funds appropriated under this heading

7 may be obligated for necessary expenses, including the

8 purchase of passenger motor vehicles for replacement only

9 for use outside of the United States, for the general costs

10 of administering military assistance and sales: Provided

11 further, That not more than $355,000,000 of funds real12 ized pursuant to section 21(e)(1)(A) of the Arms Export

13 Control Act may be obligated for expenses incurred by the

14 Department of Defense during fiscal year 1997 pursuant

15 to section 43(b) of the Arms Export Control Act, except

16 that this limitation may be exceeded only through the reg17 ular notification procedures of the Committees on Appro18 priations.

19 PEACEKEEPING OPERATIONS

20 For necessary expenses to carry out the provisions

21 of section 551 of the Foreign Assistance Act of 1961,

22 $65,000,000: Provided, That none of the funds appro23 priated under this paragraph shall be obligated or ex24 pended except as provided through the regular notification

25 procedures of the Committees on Appropriations.
31

HR 3540 PP

1 TITLE IV—MULTILATERAL ECONOMIC

2 ASSISTANCE

3 FUNDS APPROPRIATED TO THE PRESIDENT

4 INTERNATIONAL FINANCIAL INSTITUTIONS

5 CONTRIBUTION TO THE INTERNATIONAL BANK FOR

6 RECONSTRUCTION AND DEVELOPMENT

7 For payment to the International Bank for Recon8 struction and Development by the Secretary of the Treas9 ury, for the United States contribution to the Global Envi10 ronment Facility (GEF), $30,000,000, to remain available

11 until September 30, 1998.

12 CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT

13 ASSOCIATION

14 For payment to the International Development Asso15 ciation by the Secretary of the Treasury, $525,000,000,

16 for the United States contribution to the tenth replenish17 ment, to remain available until expended: Provided, That

18 none of the funds made available for the International De19 velopment Association may be obligated until the Sec20 retary of the Treasury submits a report to the Committees

21 on Appropriations detailing the efforts made by United

22 States officials, during discussions leading to an agree23 ment to undertake the eleventh replenishment of the Asso24 ciation, to oppose the formation of an Interim Trust Fund,

25 and fully describing the adverse impacts to the United

26 States resulting from the Interim Trust Fund and other
32

HR 3540 PP

1 potential alternative funding structures for the Association

2 during 1996 and 1997.

3 CONTRIBUTION TO THE INTERNATIONAL FINANCE

4 CORPORATION

5 For payment to the International Finance Corpora6 tion by the Secretary of the Treasury, $6,656,000, for the

7 United States share of the increase in subscriptions to

8 capital stock, to remain available until expended.

9 CONTRIBUTION TO THE INTER-AMERICAN DEVELOPMENT

10 BANK

11 For payment to the Inter-American Development

12 Bank by the Secretary of the Treasury, for the United

13 States share of the paid-in share portion of the increase

14 in capital stock, $25,610,667, and for the United States

15 share of the increase in the resources of the Fund for Spe16 cial Operations, $10,000,000, to remain available until ex17 pended.

18 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

19 The United States Governor of the Inter-American

20 Development Bank may subscribe without fiscal year limi21 tation to the callable capital portion of the United States

22 share of such capital stock in an amount not to exceed

23 $1,503,718,910.
33

HR 3540 PP

1 CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS

2 MULTILATERAL INVESTMENT FUND

3 For payment to the Enterprise for the Americas Mul4 tilateral Investment Fund by the Secretary of the Treas5 ury, for the United States contribution to the Fund to

6 be administered by the Inter-American Development

7 Bank, $27,500,000 to remain available until expended.

8 CONTRIBUTION TO THE ASIAN DEVELOPMENT BANK

9 For payment to the Asian Development Bank by the

10 Secretary of the Treasury for the United States share of

11 the paid-in portion of the increase in capital stock,

12 $13,221,596, to remain available until expended.

13 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

14 The United States Governor of the Asian Develop15 ment Bank may subscribe without fiscal year limitation

16 to the callable capital portion of the United States share

17 of such capital stock in an amount not to exceed

18 $647,858,204.

19 CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND

20 For the United States contribution by the Secretary

21 of the Treasury to the increases in resources of the Asian

22 Development Fund, as authorized by the Asian Develop23 ment Bank Act, as amended (Public Law 89–369),

24 $100,000,000, to remain available until expended.
34

HR 3540 PP

1 CONTRIBUTION TO THE EUROPEAN BANK FOR

2 RECONSTRUCTION AND DEVELOPMENT

3 For payment to the European Bank for Reconstruc4 tion and Development by the Secretary of the Treasury,

5 $11,916,447, for the United States share of the paid-in

6 share portion of the initial capital subscription, to remain

7 available until expended.

8 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

9 The United States Governor of the European Bank

10 for Reconstruction and Development may subscribe with11 out fiscal year limitation to the callable capital portion of

12 the United States share of such capital stock in an amount

13 not to exceed $27,805,043.

14 NORTH AMERICAN DEVELOPMENT BANK

15 For payment to the North American Development

16 Bank by the Secretary of the Treasury, for the United

17 States share of the paid-in portion of the capital stock,

18 $50,625,000, to remain available until expended.

19 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

20 The United States Governor of the North American

21 Development Bank may subscribe without fiscal year limi22 tation to the callable capital portion of the United States

23 share of the capital stock of the North American Develop24 ment Bank in an amount not to exceed $318,750,000.
35

HR 3540 PP

1 INTERNATIONAL ORGANIZATIONS AND PROGRAMS

2 For necessary expenses to carry out the provisions

3 of section 301 of the Foreign Assistance Act of 1961, and

4 of section 2 of the United Nations Environment Program

5 Participation Act of 1973, $136,000,000: Provided, That

6 none of the funds appropriated under this heading shall

7 be made available for the United Nations Fund for

8 Science and Technology: Provided further, That none of

9 the funds appropriated under this heading that are made

10 available to the United Nations Population Fund

11 (UNFPA) shall be made available for activities in the Peo12 ple’s Republic of China: Provided further, That not more

13 than $25,000,000 of the funds appropriated under this

14 heading may be made available to the UNFPA: Provided

15 further, That none of the funds appropriated under this

16 heading shall be made available to the UNFPA unless the

17 Secretary of State determines and reports to the Congress

18 that UNFPA programs in the People’s Republic of China

19 have ended and the United States has received assurances

20 that the UNFPA will not resume such programs during

21 fiscal year 1997: Provided further, That none of the funds

22 appropriated under this heading may be made available

23 to the Korean Peninsula Energy Development Organiza24 tion (KEDO).
36

HR 3540 PP

1 TITLE V—GENERAL PROVISIONS

2 OBLIGATIONS DURING LAST MONTH OF AVAILABILITY

3 SEC. 501. Except for the appropriations entitled

4 ‘‘International Disaster Assistance’’, and ‘‘United States

5 Emergency Refugee and Migration Assistance Fund’’, not

6 more than 15 per centum of any appropriation item made

7 available by this Act shall be obligated during the last

8 month of availability.

9 PROHIBITION OF BILATERAL FUNDING FOR

10 INTERNATIONAL FINANCIAL INSTITUTIONS

11 SEC. 502. None of the funds contained in title II of

12 this Act may be used to carry out the provisions of section

13 209(d) of the Foreign Assistance Act of 1961.

14 LIMITATION ON RESIDENCE EXPENSES

15 SEC. 503. Of the funds appropriated or made avail16 able pursuant to this Act, not to exceed $126,500 shall

17 be for official residence expenses of the Agency for Inter18 national Development during the current fiscal year: Pro19 vided, That appropriate steps shall be taken to assure

20 that, to the maximum extent possible, United States21 owned foreign currencies are utilized in lieu of dollars.

22 LIMITATION ON EXPENSES

23 SEC. 504. Of the funds appropriated or made avail24 able pursuant to this Act, not to exceed $5,000 shall be

25 for entertainment expenses of the Agency for International

26 Development during the current fiscal year.
37

HR 3540 PP

1 LIMITATION ON REPRESENTATIONAL ALLOWANCES

2 SEC. 505. Of the funds appropriated or made avail3 able pursuant to this Act, not to exceed $95,000 shall be

4 available for representation allowances for the Agency for

5 International Development during the current fiscal year:

6 Provided, That appropriate steps shall be taken to assure

7 that, to the maximum extent possible, United States8 owned foreign currencies are utilized in lieu of dollars:

9 Provided further, That of the funds made available by this

10 Act for general costs of administering military assistance

11 and sales under the heading ‘‘Foreign Military Financing

12 Program’’, not to exceed $2,000 shall be available for en13 tertainment expenses and not to exceed $50,000 shall be

14 available for representation allowances: Provided further,

15 That of the funds made available by this Act under the

16 heading ‘‘International Military Education and Training’’,

17 not to exceed $50,000 shall be available for entertainment

18 allowances: Provided further, That of the funds made

19 available by this Act for the Inter-American Foundation,

20 not to exceed $2,000 shall be available for entertainment

21 and representation allowances: Provided further, That of

22 the funds made available by this Act for the Peace Corps,

23 not to exceed a total of $4,000 shall be available for enter24 tainment expenses: Provided further, That of the funds

25 made available by this Act under the heading ‘‘Trade and
38

HR 3540 PP

1 Development Agency’’, not to exceed $2,000 shall be avail2 able for representation and entertainment allowances.

3 PROHIBITION ON FINANCING NUCLEAR GOODS

4 SEC. 506. None of the funds appropriated or made

5 available (other than funds for ‘‘Nonproliferation, Anti6 terrorism, Demining and Related Programs’’) pursuant to

7 this Act, for carrying out the Foreign Assistance Act of

8 1961, may be used, except for purposes of nuclear safety,

9 to finance the export of nuclear equipment, fuel, or tech10 nology.

11 PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN

12 COUNTRIES

13 SEC. 507. None of the funds appropriated or other14 wise made available pursuant to this Act shall be obligated

15 or expended to finance directly any assistance or repara16 tions to Cuba, Iraq, Libya, North Korea, Iran, Sudan, or

17 Syria: Provided, That for purposes of this section, the pro18 hibition on obligations or expenditures shall include direct

19 loans, credits, insurance and guarantees of the Export-Im20 port Bank or its agents.

21 MILITARY COUPS

22 SEC. 508. None of the funds appropriated or other23 wise made available pursuant to this Act shall be obligated

24 or expended to finance directly any assistance to any coun25 try whose duly elected Head of Government is deposed by

26 military coup or decree: Provided, That assistance may be
39

HR 3540 PP

1 resumed to such country if the President determines and

2 reports to the Committees on Appropriations that subse3 quent to the termination of assistance a democratically

4 elected government has taken office.

5 TRANSFERS BETWEEN ACCOUNTS

6 SEC. 509. None of the funds made available by this

7 Act may be obligated under an appropriation account to

8 which they were not appropriated, except for transfers

9 specifically provided for in this Act, unless the President,

10 prior to the exercise of any authority contained in the For11 eign Assistance Act of 1961 to transfer funds, consults

12 with and provides a written policy justification to the

13 Committees on Appropriations of the House of Represent14 atives and the Senate.

15 DEOBLIGATION/REOBLIGATION AUTHORITY

16 SEC. 510. (a) Amounts certified pursuant to section

17 1311 of the Supplemental Appropriations Act, 1955, as

18 having been obligated against appropriations heretofore

19 made under the authority of the Foreign Assistance Act

20 of 1961 for the same general purpose as any of the head21 ings under title II of this Act are, if deobligated, hereby

22 continued available for the same period as the respective

23 appropriations under such headings or until September

24 30, 1997, whichever is later, and for the same general pur25 pose, and for countries within the same region as origi26 nally obligated: Provided, That the Appropriations Com-
40

HR 3540 PP

1 mittees of both Houses of the Congress are notified fifteen

2 days in advance of the reobligation of such funds in ac3 cordance with regular notification procedures of the Com4 mittees on Appropriations.

5 (b) Obligated balances of funds appropriated to carry

6 out section 23 of the Arms Export Control Act as of the

7 end of the fiscal year immediately preceding the current

8 fiscal year are, if deobligated, hereby continued available

9 during the current fiscal year for the same purpose under

10 any authority applicable to such appropriations under this

11 Act: Provided, That the authority of this subsection may

12 not be used in fiscal year 1997.

13 AVAILABILITY OF FUNDS

14 SEC. 511. No part of any appropriation contained in

15 this Act shall remain available for obligation after the ex16 piration of the current fiscal year unless expressly so pro17 vided in this Act: Provided, That funds appropriated for

18 the purposes of chapters 1, 8, and 11 of part I, section

19 667, and chapter 4 of part II of the Foreign Assistance

20 Act of 1961, as amended, and funds provided under the

21 heading ‘‘Assistance for Eastern Europe and the Baltic

22 States’’, shall remain available until expended if such

23 funds are initially obligated before the expiration of their

24 respective periods of availability contained in this Act:

25 Provided further, That, notwithstanding any other provi26 sion of this Act, any funds made available for the purposes
41

HR 3540 PP

1 of chapter 1 of part I and chapter 4 of part II of the

2 Foreign Assistance Act of 1961 which are allocated for

3 cash disbursements in order to address balance of pay4 ments or economic policy reform objectives, shall remain

5 available until expended: Provided further, That the report

6 required by section 653(a) of the Foreign Assistance Act

7 of 1961 shall designate for each country, to the extent

8 known at the time of submission of such report, those

9 funds allocated for cash disbursement for balance of pay10 ment and economic policy reform purposes.

11 LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT

12 SEC. 512. No part of any appropriation contained in

13 this Act shall be used to furnish assistance to any country

14 which is in default during a period in excess of one cal15 endar year in payment to the United States of principal

16 or interest on any loan made to such country by the Unit17 ed States pursuant to a program for which funds are ap18 propriated under this Act: Provided, That this section and

19 section 620(q) of the Foreign Assistance Act of 1961 shall

20 not apply to funds made available in this Act or during

21 the current fiscal year for Nicaragua, and for any narcot22 ics-related assistance for Colombia, Bolivia, and Peru au23 thorized by the Foreign Assistance Act of 1961 or the

24 Arms Export Control Act.
42

HR 3540 PP

1 COMMERCE AND TRADE

2 SEC. 513. (a) None of the funds appropriated or

3 made available pursuant to this Act for direct assistance

4 and none of the funds otherwise made available pursuant

5 to this Act to the Export-Import Bank and the Overseas

6 Private Investment Corporation shall be obligated or ex7 pended to finance any loan, any assistance or any other

8 financial commitments for establishing or expanding pro9 duction of any commodity for export by any country other

10 than the United States, if the commodity is likely to be

11 in surplus on world markets at the time the resulting pro12 ductive capacity is expected to become operative and if the

13 assistance will cause substantial injury to United States

14 producers of the same, similar, or competing commodity:

15 Provided, That such prohibition shall not apply to the Ex16 port-Import Bank if in the judgment of its Board of Direc17 tors the benefits to industry and employment in the Unit18 ed States are likely to outweigh the injury to United

19 States producers of the same, similar, or competing com20 modity, and the Chairman of the Board so notifies the

21 Committees on Appropriations.

22 (b) None of the funds appropriated by this or any

23 other Act to carry out chapter 1 of part I of the Foreign

24 Assistance Act of 1961 shall be available for any testing

25 or breeding feasibility study, variety improvement or intro-
43

HR 3540 PP

1 duction, consultancy, publication, conference, or training

2 in connection with the growth or production in a foreign

3 country of an agricultural commodity for export which

4 would compete with a similar commodity grown or pro5 duced in the United States: Provided, That this subsection

6 shall not prohibit—

7 (1) activities designed to increase food security

8 in developing countries where such activities will not

9 have a significant impact in the export of agricul10 tural commodities of the United States; or

11 (2) research activities intended primarily to

12 benefit American producers.

13 SURPLUS COMMODITIES

14 SEC. 514. The Secretary of the Treasury shall in15 struct the United States Executive Directors of the Inter16 national Bank for Reconstruction and Development, the

17 International Development Association, the International

18 Finance Corporation, the Inter-American Development

19 Bank, the International Monetary Fund, the Asian Devel20 opment Bank, the Inter-American Investment Corpora21 tion, the North American Development Bank, the Euro22 pean Bank for Reconstruction and Development, the Afri23 can Development Bank, and the African Development

24 Fund to use the voice and vote of the United States to

25 oppose any assistance by these institutions, using funds

26 appropriated or made available pursuant to this Act, for
44

HR 3540 PP

1 the production or extraction of any commodity or mineral

2 for export, if it is in surplus on world markets and if the

3 assistance will cause substantial injury to United States

4 producers of the same, similar, or competing commodity.

5 NOTIFICATION REQUIREMENTS

6 SEC. 515. For the purposes of providing the Execu7 tive Branch with the necessary administrative flexibility,

8 none of the funds made available under this Act for ‘‘Child

9 Survival and Disease Programs Fund’’, ‘‘Development As10 sistance’’, ‘‘Debt restructuring’’, ‘‘International organiza11 tions and programs’’, ‘‘Trade and Development Agency’’,

12 ‘‘International narcotics control’’, ‘‘Assistance for Eastern

13 Europe and the Baltic States’’, ‘‘Assistance for the New

14 Independent States of the Former Soviet Union’’, ‘‘Eco15 nomic Support Fund’’, ‘‘Peacekeeping operations’’, ‘‘Oper16 ating expenses of the Agency for International Develop17 ment’’, ‘‘Operating expenses of the Agency for Inter18 national Development Office of Inspector General’’, ‘‘Non19 proliferation, anti-terrorism, demining and related pro20 grams’’, ‘‘Foreign Military Financing Program’’, ‘‘Inter21 national military education and training’’, ‘‘Inter-Amer22 ican Foundation’’, ‘‘African Development Foundation’’,

23 ‘‘Peace Corps’’, ‘‘Migration and refugee assistance’’, shall

24 be available for obligation for activities, programs,

25 projects, type of materiel assistance, countries, or other

26 operations not justified or in excess of the amount justi-
45

HR 3540 PP

1 fied to the Appropriations Committees for obligation

2 under any of these specific headings unless the Appropria3 tions Committees of both Houses of Congress are pre4 viously notified fifteen days in advance: Provided, That the

5 President shall not enter into any commitment of funds

6 appropriated for the purposes of section 23 of the Arms

7 Export Control Act for the provision of major defense

8 equipment, other than conventional ammunition, or other

9 major defense items defined to be aircraft, ships, missiles,

10 or combat vehicles, not previously justified to Congress or

11 20 per centum in excess of the quantities justified to Con12 gress unless the Committees on Appropriations are noti13 fied fifteen days in advance of such commitment: Provided

14 further, That this section shall not apply to any re15 programming for an activity, program, or project under

16 chapter 1 of part I of the Foreign Assistance Act of 1961

17 of less than 10 per centum of the amount previously justi18 fied to the Congress for obligation for such activity, pro19 gram, or project for the current fiscal year: Provided fur20 ther, That the requirements of this section or any similar

21 provision of this Act or any other Act, including any prior

22 Act requiring notification in accordance with the regular

23 notification procedures of the Committees on Appropria24 tions, may be waived if failure to do so would pose a sub25 stantial risk to human health or welfare: Provided further,
46

HR 3540 PP

1 That in case of any such waiver, notification to the Con2 gress, or the appropriate congressional committees, shall

3 be provided as early as practicable, but in no event later

4 than three days after taking the action to which such noti5 fication requirement was applicable, in the context of the

6 circumstances necessitating such waiver: Provided further,

7 That any notification provided pursuant to such a waiver

8 shall contain an explanation of the emergency cir9 cumstances.

10 Drawdowns made pursuant to section 506(a) (2) of

11 the Foreign Assistance Act of 1961 shall be subject to the

12 regular notification procedures of the Committees on Ap13 propriations.

14 LIMITATION ON AVAILABILITY OF FUNDS FOR

15 INTERNATIONAL ORGANIZATIONS AND PROGRAMS

16 SEC. 516. Notwithstanding any other provision of law

17 or of this Act, none of the funds provided for ‘‘Inter18 national Organizations and Programs’’ shall be available

19 for the United States proportionate share, in accordance

20 with section 307(c) of the Foreign Assistance Act of 1961,

21 for any programs identified in section 307, or for Libya,

22 Iran, or, at the discretion of the President, Communist

23 countries listed in section 620(f) of the Foreign Assistance

24 Act of 1961, as amended: Provided, That, subject to the

25 regular notification procedures of the Committees on Ap26 propriations, funds appropriated under this Act or any
47

HR 3540 PP

1 previously enacted Act making appropriations for foreign

2 operations, export financing, and related programs, which

3 are returned or not made available for organizations and

4 programs because of the implementation of this section

5 or any similar provision of law, shall remain available for

6 obligation through September 30, 1998.

7 ECONOMIC SUPPORT FUND ASSISTANCE FOR ISRAEL

8 SEC. 517. The Congress finds that progress on the

9 peace process in the Middle East is vitally important to

10 United States security interests in the region. The Con11 gress recognizes that, in fulfilling its obligations under the

12 Treaty of Peace Between the Arab Republic of Egypt and

13 the State of Israel, done at Washington on March 26,

14 1979, Israel incurred severe economic burdens. Further15 more, the Congress recognizes that an economically and

16 militarily secure Israel serves the security interests of the

17 United States, for a secure Israel is an Israel which has

18 the incentive and confidence to continue pursuing the

19 peace process. Therefore, the Congress declares that, sub20 ject to the availability of appropriations, it is the policy

21 and the intention of the United States that the funds pro22 vided in annual appropriations for the Economic Support

23 Fund which are allocated to Israel shall not be less than

24 the annual debt repayment (interest and principal) from

25 Israel to the United States Government in recognition that
48

HR 3540 PP

1 such a principle serves United States interests in the re2 gion.

3 PROHIBITION ON FUNDING FOR ABORTIONS AND

4 INVOLUNTARY STERILIZATION

5 SEC. 518. None of the funds made available to carry

6 out part I of the Foreign Assistance Act of 1961, as

7 amended, may be used to pay for the performance of abor8 tions as a method of family planning or to motivate or

9 coerce any person to practice abortions. None of the funds

10 made available to carry out part I of the Foreign Assist11 ance Act of 1961, as amended, may be used to pay for

12 the performance of involuntary sterilization as a method

13 of family planning or to coerce or provide any financial

14 incentive to any person to undergo sterilizations. None of

15 the funds made available to carry out part I of the Foreign

16 Assistance Act of 1961, as amended, may be used to pay

17 for any biomedical research which relates in whole or in

18 part, to methods of, or the performance of, abortions or

19 involuntary sterilization as a means of family planning.

20 None of the funds made available to carry out part I of

21 the Foreign Assistance Act of 1961, as amended, may be

22 obligated or expended for any country or organization if

23 the President certifies that the use of these funds by any

24 such country or organization would violate any of the

25 above provisions related to abortions and involuntary steri26 lizations: Provided, That none of the funds made available
49

HR 3540 PP

1 under this Act may be used to lobby for or against abor2 tion.

3 POPULATION ASSISTANCE FUNDING LIMITATIONS

4 SEC. 518A. (a) IN GENERAL.—

5 (1) Notwithstanding any other provision of this

6 Act, funds appropriated by this Act for population

7 assistance activities may be made available for a for8 eign private or nongovernmental organization only if

9 the organization certifies that it will not during the

10 period for which the funds are made available, per11 form abortions in any foreign country, except where

12 the life of the mother would be endangered if the

13 fetus were carried to term or in cases of forcible

14 rape or incest.

15 (2) Paragraph (1) may not be construed to

16 apply to the treatment of injuries or illnesses caused

17 by legal or illegal abortions or to assistance provided

18 directly to the government of a country.

19 (b) LOBBYING ACTIVITIES.—

20 (1) None of the funds made available under this

21 Act may be used to lobby for or against abortion,

22 and, notwithstanding any other provision of this Act

23 or other law, none of the funds appropriated by this

24 Act for population assistance activities may be made

25 available for any foreign private or nongovernmental

26 organization until the organization certifies that it
50

HR 3540 PP

1 will not during the period for which the funds are

2 made available, violate the laws of any foreign coun3 try concerning the circumstances under which abor4 tion is permitted, regulated, or prohibited, or engage

5 in any activity or effort in a foreign country to alter

6 the laws or governmental policies of any foreign

7 country concerning the circumstances under which

8 abortion is permitted, regulated, or prohibited.

9 (2) Notwithstanding any other provision of this

10 Act, paragraph (1) shall not apply to activities in

11 opposition to coercive abortion or involuntary steri12 lization.

13 (c) Notwithstanding subsections (a)(1) and (b)(1), a

14 foreign private or nongovernmental organization may re15 ceive funds appropriated by this Act for population assist16 ance activities in the absence of the certifications required

17 in said subsections, but funds made available for each such

18 organization by this Act shall not exceed 50 percent of

19 the funds made available to the organization during fiscal

20 year 1995. Funds for population assistance activities may

21 not be made available for any foreign private or non22 governmental organization that did not receive such funds

23 during fiscal year 1995 unless the organization meets the

24 certification requirements of subsections (a)(1) and (b)(1).
51

HR 3540 PP

1 (d) Funds made available pursuant to subsection (c)

2 shall be apportioned on a monthly basis for the first four

3 months of fiscal year 1997 only, and monthly disburse4 ments during such period to each organization covered by

5 said subsection may not exceed 8.34 percent of the total

6 each such organization could receive pursuant to said sub7 section.

8 (e) Subsections (a), (b) and (c) apply to funds made

9 available for a foreign organization either directly or as

10 a subcontractor or sub-grantee, and the required certifi11 cations apply to activities in which the organization en12 gages either directly or through a subcontractor or sub13 grantee.

14 (f) Funds appropriated or otherwise made available

15 in title II of this Act for population planning activities or

16 other population assistance may be made available for ob17 ligation and expenditure in an amount not to exceed 65

18 percent of the total amount appropriated or otherwise

19 made available by Public Law 103–306 and Public Law

20 104–19 for such activities for fiscal year 1995.

21 REPORTING REQUIREMENT

22 SEC. 519. The President shall submit to the Commit23 tees on Appropriations the reports required by section

24 25(a)(1) of the Arms Export Control Act.
52

HR 3540 PP

1 SPECIAL NOTIFICATION REQUIREMENTS

2 SEC. 520. None of the funds appropriated in this Act

3 shall be obligated or expended for Colombia, Dominican

4 Republic, Haiti, Liberia, Pakistan, Peru, Russia, Serbia,

5 South Africa, Sudan, or Zaire except as provided through

6 the regular notification procedures of the Committees on

7 Appropriations.

8 DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

9 SEC. 521. For the purpose of this Act, ‘‘program,

10 project, and activity’’ shall be defined at the Appropria11 tions Act account level and shall include all Appropriations

12 and Authorizations Acts earmarks, ceilings, and limita13 tions with the exception that for the following accounts:

14 Economic Support Fund and Foreign Military Financing

15 Program, ‘‘program, project, and activity’’ shall also be

16 considered to include country, regional, and central pro17 gram level funding within each such account; for the devel18 opment assistance accounts of the Agency for Inter19 national Development ‘‘program, project, and activity’’

20 shall also be considered to include central program level

21 funding, either as (1) justified to the Congress, or (2) allo22 cated by the executive branch in accordance with a report,

23 to be provided to the Committees on Appropriations within

24 thirty days of enactment of this Act, as required by section

25 653(a) of the Foreign Assistance Act of 1961.
53

HR 3540 PP

1 CHILD SURVIVAL AND AIDS ACTIVITIES

2 SEC. 522. Up to $8,000,000 of the funds made avail3 able by this Act for assistance for family planning, health,

4 child survival, and AIDS, may be used to reimburse Unit5 ed States Government agencies, agencies of State govern6 ments, institutions of higher learning, and private and vol7 untary organizations for the full cost of individuals (in8 cluding for the personal services of such individuals) de9 tailed or assigned to, or contracted by, as the case may

10 be, the Agency for International Development for the pur11 pose of carrying out family planning activities, child sur12 vival activities and activities relating to research on, and

13 the treatment and control of acquired immune deficiency

14 syndrome in developing countries: Provided, That funds

15 appropriated by this Act that are made available for child

16 survival activities or activities relating to research on, and

17 the treatment and control of, acquired immune deficiency

18 syndrome may be made available notwithstanding any pro19 vision of law that restricts assistance to foreign countries:

20 Provided further, That funds appropriated by this Act that

21 are made available for family planning activities may be

22 made available notwithstanding section 512 of this Act

23 and section 620(q) of the Foreign Assistance Act of 1961.
54

HR 3540 PP

1 PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN

2 COUNTRIES

3 SEC. 523. None of the funds appropriated or other4 wise made available pursuant to this Act shall be obligated

5 to finance indirectly any assistance or reparations to

6 Cuba, Iraq, Libya, Iran, Syria, North Korea, or the Peo7 ple’s Republic of China, unless the President of the United

8 States certifies that the withholding of these funds is con9 trary to the national interest of the United States.

10 RECIPROCAL LEASING

11 SEC. 524. Section 61(a) of the Arms Export Control

12 Act is amended by striking out ‘‘1996’’ and inserting in

13 lieu thereof ‘‘1997’’.

14 NOTIFICATION ON EXCESS DEFENSE EQUIPMENT

15 SEC. 525. Prior to providing excess Department of

16 Defense articles in accordance with section 516(a) of the

17 Foreign Assistance Act of 1961, the Department of De18 fense shall notify the Committees on Appropriations to the

19 same extent and under the same conditions as are other

20 committees pursuant to subsection (c) of that section: Pro21 vided, That before issuing a letter of offer to sell excess

22 defense articles under the Arms Export Control Act, the

23 Department of Defense shall notify the Committees on

24 Appropriations in accordance with the regular notification

25 procedures of such Committees: Provided further, That
55

HR 3540 PP

1 such Committees shall also be informed of the original ac2 quisition cost of such defense articles.

3 AUTHORIZATION REQUIREMENT

4 SEC. 526. Funds appropriated by this Act may be

5 obligated and expended notwithstanding section 10 of

6 Public Law 91–672 and section 15 of the State Depart7 ment Basic Authorities Act of 1956.

8 PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST

9 COUNTRIES

10 SEC. 527. (a) Funds appropriated for bilateral assist11 ance under any heading of this Act and funds appro12 priated under any such heading in a provision of law en13 acted prior to enactment of this Act, shall not be made

14 available to any country which the President determines—

15 (1) grants sanctuary from prosecution to any

16 individual or group which has committed an act of

17 international terrorism, or

18 (2) otherwise supports international terrorism.

19 (b) The President may waive the application of sub20 section (a) to a country if the President determines that

21 national security or humanitarian reasons justify such

22 waiver. The President shall publish each waiver in the

23 Federal Register and, at least fifteen days before the waiv24 er takes effect, shall notify the Committees on Appropria25 tions of the waiver (including the justification for the waiv-
56

HR 3540 PP

1 er) in accordance with the regular notification procedures

2 of the Committees on Appropriations.

3 COMMERCIAL LEASING OF DEFENSE ARTICLES

4 SEC. 528. Notwithstanding any other provision of

5 law, and subject to the regular notification procedures of

6 the Committees on Appropriations, the authority of sec7 tion 23(a) of the Arms Export Control Act may be used

8 to provide financing to Israel, Egypt and NATO and

9 major non-NATO allies for the procurement by leasing

10 (including leasing with an option to purchase) of defense

11 articles from United States commercial suppliers, not in12 cluding Major Defense Equipment (other than helicopters

13 and other types of aircraft having possible civilian applica14 tion), if the President determines that there are compel15 ling foreign policy or national security reasons for those

16 defense articles being provided by commercial lease rather

17 than by government-to-government sale under such Act.

18 COMPETITIVE INSURANCE

19 SEC. 528A. All Agency for International Development

20 contracts and solicitations, and subcontracts entered into

21 under such contracts, shall include a clause requiring that

22 United States insurance companies have a fair oppor23 tunity to bid for insurance when such insurance is nec24 essary or appropriate.
57

HR 3540 PP

1 STINGERS IN THE PERSIAN GULF REGION

2 SEC. 529. Except as provided in section 581 of the

3 Foreign Operations, Export Financing, and Related Pro4 grams Appropriations Act, 1990, the United States may

5 not sell or otherwise make available any Stingers to any

6 country bordering the Persian Gulf under the Arms Ex7 port Control Act or chapter 2 of part II of the Foreign

8 Assistance Act of 1961.

9 DEBT-FOR-DEVELOPMENT

10 SEC. 530. In order to enhance the continued partici11 pation of nongovernmental organizations in economic as12 sistance activities under the Foreign Assistance Act of

13 1961, including endowments, debt-for-development and

14 debt-for-nature exchanges, a nongovernmental organiza15 tion which is a grantee or contractor of the Agency for

16 International Development may place in interest bearing

17 accounts funds made available under this Act or prior Acts

18 or local currencies which accrue to that organization as

19 a result of economic assistance provided under title II of

20 this Act and any interest earned on such investment shall

21 be used for the purpose for which the assistance was pro22 vided to that organization.

23 SEPARATE ACCOUNTS

24 SEC. 531. (a) SEPARATE ACCOUNTS FOR LOCAL

25 CURRENCIES.—(1) If assistance is furnished to the gov26 ernment of a foreign country under chapters 1 and 10 of
58

HR 3540 PP

1 part I or chapter 4 of part II of the Foreign Assistance

2 Act of 1961 under agreements which result in the genera3 tion of local currencies of that country, the Administrator

4 of the Agency for International Development shall—

5 (A) require that local currencies be deposited in

6 a separate account established by that government;

7 (B) enter into an agreement with that govern8 ment which sets forth—

9 (i) the amount of the local currencies to be

10 generated, and

11 (ii) the terms and conditions under which

12 the currencies so deposited may be utilized, con13 sistent with this section; and

14 (C) establish by agreement with that govern15 ment the responsibilities of the Agency for Inter16 national Development and that government to mon17 itor and account for deposits into and disbursements

18 from the separate account.

19 (2) USES OF LOCAL CURRENCIES.—As may be

20 agreed upon with the foreign government, local currencies

21 deposited in a separate account pursuant to subsection

22 (a), or an equivalent amount of local currencies, shall be

23 used only—
59

HR 3540 PP

1 (A) to carry out chapters 1 or 10 of part I or

2 chapter 4 of part II (as the case may be), for such

3 purposes as—

4 (i) project and sector assistance activities,

5 or

6 (ii) debt and deficit financing; or

7 (B) for the administrative requirements of the

8 United States Government.

9 (3) PROGRAMMING ACCOUNTABILITY.—The Agency

10 for International Development shall take all necessary

11 steps to ensure that the equivalent of the local currencies

12 disbursed pursuant to subsection (a)(2)(A) from the sepa13 rate account established pursuant to subsection (a)(1) are

14 used for the purposes agreed upon pursuant to subsection

15 (a)(2).

16 (4) TERMINATION OF ASSISTANCE PROGRAMS.—

17 Upon termination of assistance to a country under chap18 ters 1 or 10 of part I or chapter 4 of part II (as the case

19 may be), any unencumbered balances of funds which re20 main in a separate account established pursuant to sub21 section (a) shall be disposed of for such purposes as may

22 be agreed to by the government of that country and the

23 United States Government.

24 (5) CONFORMING AMENDMENTS.—The provisions of

25 this subsection shall supersede the tenth and eleventh pro-
60

HR 3540 PP

1 visos contained under the heading ‘‘Sub-Saharan Africa,

2 Development Assistance’’ as included in the Foreign Oper3 ations, Export Financing, and Related Programs Appro4 priations Act, 1989 and sections 531(d) and 609 of the

5 Foreign Assistance Act of 1961.

6 (6) REPORTING REQUIREMENT.—The Administrator

7 of the Agency for International Development shall report

8 on an annual basis as part of the justification documents

9 submitted to the Committees on Appropriations on the use

10 of local currencies for the administrative requirements of

11 the United States Government as authorized in subsection

12 (a)(2)(B), and such report shall include the amount of

13 local currency (and United States dollar equivalent) used

14 and/or to be used for such purpose in each applicable

15 country.

16 (b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—

17 (1) If assistance is made available to the government of

18 a foreign country, under chapters 1 or 10 of part I or

19 chapter 4 of part II of the Foreign Assistance Act of 1961,

20 as cash transfer assistance or as nonproject sector assist21 ance, that country shall be required to maintain such

22 funds in a separate account and not commingle them with

23 any other funds.

24 (2) APPLICABILITY OF OTHER PROVISIONS OF

25 LAW.—Such funds may be obligated and expended not-
61

HR 3540 PP

1 withstanding provisions of law which are inconsistent with

2 the nature of this assistance including provisions which

3 are referenced in the Joint Explanatory Statement of the

4 Committee of Conference accompanying House Joint Res5 olution 648 (H. Report No. 98–1159).

6 (3) NOTIFICATION.—At least fifteen days prior to ob7 ligating any such cash transfer or nonproject sector assist8 ance, the President shall submit a notification through the

9 regular notification procedures of the Committees on Ap10 propriations, which shall include a detailed description of

11 how the funds proposed to be made available will be used,

12 with a discussion of the United States interests that will

13 be served by the assistance (including, as appropriate, a

14 description of the economic policy reforms that will be pro15 moted by such assistance).

16 (4) EXEMPTION.—Nonproject sector assistance funds

17 may be exempt from the requirements of subsection (b)

18 (1) only through the notification procedures of the Com19 mittees on Appropriations.

20 COMPENSATION FOR UNITED STATES EXECUTIVE DIREC21 TORS TO INTERNATIONAL FINANCING INSTITUTIONS

22 SEC. 532. (a) No funds appropriated by this Act may

23 be made as payment to any international financial institu24 tion while the United States Executive Director to such

25 institution is compensated by the institution at a rate

26 which, together with whatever compensation such Director
62

HR 3540 PP

1 receives from the United States, is in excess of the rate

2 provided for an individual occupying a position at level IV

3 of the Executive Schedule under section 5315 of title 5,

4 United States Code, or while any alternate United States

5 Director to such institution is compensated by the institu6 tion at a rate in excess of the rate provided for an individ7 ual occupying a position at level V of the Executive Sched8 ule under section 5316 of title 5, United States Code.

9 (b) For purposes of this section, ‘‘international finan10 cial institutions’’ are: the International Bank for Recon11 struction and Development, the Inter-American Develop12 ment Bank, the Asian Development Bank, the Asian De13 velopment Fund, the African Development Bank, the Afri14 can Development Fund, the International Monetary Fund,

15 the North American Development Bank, and the Euro16 pean Bank for Reconstruction and Development.

17 COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST

18 IRAQ

19 SEC. 533. (a) DENIAL OF ASSISTANCE.—None of the

20 funds appropriated or otherwise made available pursuant

21 to this Act to carry out the Foreign Assistance Act of

22 1961 (including title IV of chapter 2 of part I, relating

23 to the Overseas Private Investment Corporation) or the

24 Arms Export Control Act may be used to provide assist25 ance to any country that is not in compliance with the

26 United Nations Security Council sanctions against Iraq,
63

HR 3540 PP

1 Serbia or Montenegro unless the President determines and

2 so certifies to the Congress that—

3 (1) such assistance is in the national interest of

4 the United States;

5 (2) such assistance will directly benefit the

6 needy people in that country; or

7 (3) the assistance to be provided will be human8 itarian assistance for foreign nationals who have fled

9 Iraq and Kuwait.

10 (b) IMPORT SANCTIONS.—If the President considers

11 that the taking of such action would promote the effective12 ness of the economic sanctions of the United Nations and

13 the United States imposed with respect to Iraq, Serbia,

14 or Montenegro, as the case may be, and is consistent with

15 the national interest, the President may prohibit, for such

16 a period of time as he considers appropriate, the importa17 tion into the United States of any or all products of any

18 foreign country that has not prohibited—

19 (1) the importation of products of Iraq, Serbia,

20 or Montenegro into its customs territory, and

21 (2) the export of its products to Iraq, Serbia,

22 or Montenegro, as the case may be.

23 POW/MIA MILITARY DRAWDOWN

24 SEC. 534. (a) Notwithstanding any other provision

25 of law, the President may direct the drawdown, without

26 reimbursement by the recipient, of defense articles from
64

HR 3540 PP

1 the stocks of the Department of Defense, defense services

2 of the Department of Defense, and military education and

3 training, of an aggregate value not to exceed $15,000,000

4 in fiscal year 1997, as may be necessary to carry out sub5 section (b).

6 (b) Such defense articles, services and training may

7 be provided to Vietnam, Cambodia and Laos, under sub8 section (a) as the President determines are necessary to

9 support efforts to locate and repatriate members of the

10 United States Armed Forces and civilians employed di11 rectly or indirectly by the United States Government who

12 remain unaccounted for from the Vietnam War, and to

13 ensure the safety of United States Government personnel

14 engaged in such cooperative efforts and to support United

15 States Department of Defense-sponsored humanitarian

16 projects associated with the POW/MIA efforts. Any air17 craft shall be provided under this section only to Laos and

18 only on a lease or loan basis, but may be provided at no

19 cost notwithstanding section 61 of the Arms Export Con20 trol Act and may be maintained with defense articles, serv21 ices and training provided under this section.

22 (c) The President shall, within sixty days of the end

23 of any fiscal year in which the authority of subsection (a)

24 is exercised, submit a report to the Congress which identi-
65

HR 3540 PP

1 fies the articles, services, and training drawn down under

2 this section.

3 MEDITERRANEAN EXCESS DEFENSE ARTICLES

4 SEC. 535. For the four-year period beginning on Oc5 tober 1, 1996, the President shall ensure that excess de6 fense articles will be made available under section 516 and

7 519 of the Foreign Assistance Act of 1961 consistent with

8 the manner in which the President made available excess

9 defense articles under those sections during the four-year

10 period that began on October 1, 1992, pursuant to section

11 573(e) of the Foreign Operations, Export Financing, Re12 lated Programs Appropriations Act, 1990.

13 CASH FLOW FINANCING

14 SEC. 536. For each country that has been approved

15 for cash flow financing (as defined in section 25(d) of the

16 Arms Export Control Act, as added by section 112(b) of

17 Public Law 99–83) under the Foreign Military Financing

18 Program, any Letter of Offer and Acceptance or other

19 purchase agreement, or any amendment thereto, for a pro20 curement in excess of $100,000,000 that is to be financed

21 in whole or in part with funds made available under this

22 Act shall be submitted through the regular notification

23 procedures to the Committees on Appropriations.
66

HR 3540 PP

1 AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMER2 ICAN FOUNDATION AND THE AFRICAN DEVELOP3 MENT FOUNDATION

4 SEC. 537. Unless expressly provided to the contrary,

5 provisions of this or any other Act, including provisions

6 contained in prior Acts authorizing or making appropria7 tions for foreign operations, export financing, and related

8 programs, shall not be construed to prohibit activities au9 thorized by or conducted under the Peace Corps Act, the

10 Inter-American Foundation Act, or the African Develop11 ment Foundation Act. The appropriate agency shall

12 promptly report to the Committees on Appropriations

13 whenever it is conducting activities or is proposing to con14 duct activities in a country for which assistance is prohib15 ited.

16 IMPACT ON JOBS IN THE UNITED STATES

17 SEC. 538. None of the funds appropriated by this Act

18 may be obligated or expended to provide—

19 (a) any financial incentive to a business enter20 prise currently located in the United States for the

21 purpose of inducing such an enterprise to relocate

22 outside the United States if such incentive or in23 ducement is likely to reduce the number of employ24 ees of such business enterprise in the United States

25 because United States production is being replaced

26 by such enterprise outside the United States;
67

HR 3540 PP

1 (b) assistance for the purpose of establishing or

2 developing in a foreign country any export process3 ing zone or designated area in which the tax, tariff,

4 labor, environment, and safety laws of that country

5 do not apply, in part or in whole, to activities car6 ried out within that zone or area, unless the Presi7 dent determines and certifies that such assistance is

8 not likely to cause a loss of jobs within the United

9 States; or

10 (c) assistance for any project or activity that

11 contributes to the violation of internationally recog12 nized workers rights, as defined in section 502(a)(4)

13 of the Trade Act of 1974, of workers in the recipient

14 country, including any designated zone or area in

15 that country: Provided, That in recognition that the

16 application of this subsection should be commensu17 rate with the level of development of the recipient

18 country and sector, the provisions of this subsection

19 shall not preclude assistance for the informal sector

20 in such country, micro and small-scale enterprise,

21 and smallholder agriculture.

22 AUTHORITY TO ASSIST BOSNIA AND HERZEGOVINA

23 SEC. 539. (a) The President is authorized to direct

24 the transfer, subject to notification of the Committees on

25 Appropriations, to the government of Bosnia and

26 Herzegovina, without reimbursement, of defense articles
68

HR 3540 PP

1 from the stocks of the Department of Defense and defense

2 services of the Department of Defense, of an aggregate

3 value that equals the difference between $100,000,000

4 and the aggregate value of any such articles and services

5 that were transferred under the authority of Section 540

6 of Public Law 104–107, the Foreign Operations, Export

7 Financing, and Related Programs Appropriations Act,

8 1996: Provided, That the President certifies in a timely

9 fashion to the Congress that the transfer of such defense

10 articles would assist that nation in self-defense and there11 by promote the security and stability of the region.

12 (b) Within 60 days of any transfer under the author13 ity provided in subsection (b), and every 60 days there14 after, the President shall report in writing to the Speaker

15 of the House of Representatives and the President pro

16 tempore of the Senate concerning the articles transferred

17 and the disposition thereof.

18 (c) There are authorized to be appropriated to the

19 President such sums as may be necessary to reimburse

20 the applicable appropriation, fund, or account for defense

21 articles provided under this section.

22 RESTRICTIONS ON THE TERMINATION OF SANCTIONS

23 AGAINST SERBIA AND MONTENEGRO

24 SEC. 540. (a) RESTRICTIONS.—Notwithstanding any

25 other provision of law, no sanction, prohibition, or require26 ment described in section 1511 of the National Defense
69

HR 3540 PP

1 Authorization Act for Fiscal Year 1994 (Public Law 103–

2 160), with respect to Serbia or Montenegro, may cease

3 to be effective, unless—

4 (1) the President first submits to the Congress

5 a certification described in subsection (b); and

6 (2) the requirements of section 1511 of that

7 Act are met.

8 (b) CERTIFICATION.—A certification described in this

9 subsection is a certification that—

10 (1) there is substantial progress toward—

11 (A) the realization of a separate identity

12 for Kosova and the right of the people of

13 Kosova to govern themselves; or

14 (B) the creation of an international protec15 torate for Kosova;

16 (2) there is substantial improvement in the

17 human rights situation in Kosova;

18 (3) international human rights observers are al19 lowed to return to Kosova; and

20 (4) the elected government of Kosova is per21 mitted to meet and carry out its legitimate mandate

22 as elected representatives of the people of Kosova.

23 (c) WAIVER AUTHORITY.—The President may waive

24 the application in whole or in part, of subsection (a) if

25 the President certifies to the Congress that the President
70

HR 3540 PP

1 has determined that the waiver is necessary to meet emer2 gency humanitarian needs or to achieve a negotiated set3 tlement of the conflict in Bosnia and Herzegovina that is

4 acceptable to the parties.

5 SPECIAL AUTHORITIES

6 SEC. 541. (a) Funds appropriated in title II of this

7 Act that are made available for Afghanistan, Lebanon,

8 and Cambodia, and for victims of war, displaced children,

9 displaced Burmese, humanitarian assistance for Romania,

10 and humanitarian assistance for the peoples of Bosnia and

11 Herzegovina, Croatia, and Kosova, may be made available

12 notwithstanding any other provision of law: Provided,

13 That any such funds that are made available for Cam14 bodia shall be subject to the provisions of section 531(e)

15 of the Foreign Assistance Act of 1961 and section 906

16 of the International Security and Development Coopera17 tion Act of 1985: Provided further, That the President

18 shall terminate assistance to any country or organization

19 that he determines is cooperating, tactically or strategi20 cally, with the Khmer Rouge in their military operations,

21 or to the military of any country which the President de22 termines is not taking steps to prevent a pattern or prac23 tice of commercial relations between its members and the

24 Khmer Rouge.

25 (b) Funds appropriated by this Act to carry out the

26 provisions of sections 103 through 106 of the Foreign As-
71

HR 3540 PP

1 sistance Act of 1961 may be used, notwithstanding any

2 other provision of law, for the purpose of supporting tropi3 cal forestry and energy programs aimed at reducing emis4 sions of greenhouse gases, and for the purpose of support5 ing biodiversity conservation activities: Provided, That

6 such assistance shall be subject to sections 116, 502B, and

7 620A of the Foreign Assistance Act of 1961.

8 (c) During fiscal year 1997, the President may use

9 up to $50,000,000 under the authority of section 451 of

10 the Foreign Assistance Act of 1961, notwithstanding the

11 funding ceiling contained in subsection (a) of that section.

12 (d) The Agency for International Development may

13 employ personal services contractors, notwithstanding any

14 other provision of law, for the purpose of administering

15 programs for the West Bank and Gaza.

16 POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT

17 OF ISRAEL

18 SEC. 542. It is the sense of the Congress that—

19 (1) the Arab League countries should imme20 diately and publicly renounce the primary boycott of

21 Israel and the secondary and tertiary boycott of

22 American firms that have commercial ties with Is23 rael; and

24 (2) the President should—

25 (A) take more concrete steps to encourage

26 vigorously Arab League countries to renounce
72

HR 3540 PP

1 publicly the primary boycotts of Israel and the

2 secondary and tertiary boycotts of American

3 firms that have commercial relations with Israel

4 as a confidence-building measure;

5 (B) take into consideration the participa6 tion of any recipient country in the primary

7 boycott of Israel and the secondary and tertiary

8 boycotts of American firms that have commer9 cial relations with Israel when determining

10 whether to sell weapons to said country;

11 (C) report to Congress on the specific

12 steps being taken by the President to bring

13 about a public renunciation of the Arab primary

14 boycott of Israel and the secondary and tertiary

15 boycotts of American firms that have commer16 cial relations with Israel; and

17 (D) encourage the allies and trading part18 ners of the United States to enact laws prohib19 iting businesses from complying with the boy20 cott and penalizing businesses that do comply.

21 ANTI-NARCOTICS ACTIVITIES

22 SEC. 543. (a) Of the funds appropriated or otherwise

23 made available by this Act for ‘‘Economic Support Fund’’,

24 assistance may be provided to strengthen the administra25 tion of justice in countries in Latin America and the Car26 ibbean and in other regions consistent with the provisions
73

HR 3540 PP

1 of section 534(b) of the Foreign Assistance Act of 1961,

2 except that programs to enhance protection of participants

3 in judicial cases may be conducted notwithstanding section

4 660 of that Act.

5 (b) Funds made available pursuant to this section

6 may be made available notwithstanding section 534(c) and

7 the second and third sentences of section 534(e) of the

8 Foreign Assistance Act of 1961. Funds made available

9 pursuant to subsection (a) for Bolivia, Colombia and Peru

10 may be made available notwithstanding section 534(c) and

11 the second sentence of section 534(e) of the Foreign As12 sistance Act of 1961.

13 ELIGIBILITY FOR ASSISTANCE

14 SEC. 544. (a) ASSISTANCE THROUGH NONGOVERN15 MENTAL ORGANIZATIONS.—Restrictions contained in this

16 or any other Act with respect to assistance for a country

17 shall not be construed to restrict assistance in support of

18 programs of nongovernmental organizations from funds

19 appropriated by this Act to carry out the provisions of

20 chapters 1 and 10 of part I of the Foreign Assistance Act

21 of 1961: Provided, That the President shall take into con22 sideration, in any case in which a restriction on assistance

23 would be applicable but for this subsection, whether assist24 ance in support of programs of nongovernmental organiza25 tions is in the national interest of the United States: Pro26 vided further, That before using the authority of this sub-
74

HR 3540 PP

1 section to furnish assistance in support of programs of

2 nongovernmental organizations, the President shall notify

3 the Committees on Appropriations under the regular noti4 fication procedures of those committees, including a de5 scription of the program to be assisted, the assistance to

6 be provided, and the reasons for furnishing such assist7 ance: Provided further, That nothing in this subsection

8 shall be construed to alter any existing statutory prohibi9 tions against abortion or involuntary sterilizations con10 tained in this or any other Act.

11 (b) PUBLIC LAW 480.—During fiscal year 1997, re12 strictions contained in this or any other Act with respect

13 to assistance for a country shall not be construed to re14 strict assistance under the Agricultural Trade Develop15 ment and Assistance Act of 1954: Provided, That none

16 of the funds appropriated to carry out title I of such Act

17 and made available pursuant to this subsection may be

18 obligated or expended except as provided through the reg19 ular notification procedures of the Committees on Appro20 priations.

21 (c) EXCEPTION.—This section shall not apply—

22 (1) with respect to section 620A of the Foreign

23 Assistance Act or any comparable provision of law

24 prohibiting assistance to countries that support

25 international terrorism; or
75

HR 3540 PP

1 (2) with respect to section 116 of the Foreign

2 Assistance Act of 1961 or any comparable provision

3 of law prohibiting assistance to countries that violate

4 internationally recognized human rights.

5 EARMARKS

6 SEC. 544A. (a) Funds appropriated by this Act which

7 are earmarked may be reprogrammed for other programs

8 within the same account notwithstanding the earmark if

9 compliance with the earmark is made impossible by oper10 ation of any provision of this or any other Act or, with

11 respect to a country with which the United States has an

12 agreement providing the United States with base rights

13 or base access in that country, if the President determines

14 that the recipient for which funds are earmarked has sig15 nificantly reduced its military or economic cooperation

16 with the United States since enactment of the Foreign Op17 erations, Export Financing, and Related Programs Appro18 priations Act, 1991; however, before exercising the author19 ity of this subsection with regard to a base rights or base

20 access country which has significantly reduced its military

21 or economic cooperation with the United States, the Presi22 dent shall consult with, and shall provide a written policy

23 justification to the Committees on Appropriations: Pro24 vided, That any such reprogramming shall be subject to

25 the regular notification procedures of the Committees on

26 Appropriations: Provided further, That assistance that is
76

HR 3540 PP

1 reprogrammed pursuant to this subsection shall be made

2 available under the same terms and conditions as origi3 nally provided.

4 (b) In addition to the authority contained in sub5 section (a), the original period of availability of funds ap6 propriated by this Act and administered by the Agency

7 for International Development that are earmarked for par8 ticular programs or activities by this or any other Act shall

9 be extended for an additional fiscal year if the Adminis10 trator of such agency determines and reports promptly to

11 the Committees on Appropriations that the termination of

12 assistance to a country or a significant change in cir13 cumstances makes it unlikely that such earmarked funds

14 can be obligated during the original period of availability:

15 Provided, That such earmarked funds that are continued

16 available for an additional fiscal year shall be obligated

17 only for the purpose of such earmark.

18 CEILINGS AND EARMARKS

19 SEC. 545. Ceilings and earmarks contained in this

20 Act shall not be applicable to funds or authorities appro21 priated or otherwise made available by any subsequent Act

22 unless such Act specifically so directs.

23 PROHIBITION ON PUBLICITY OR PROPAGANDA

24 SEC. 546. No part of any appropriation contained in

25 this Act shall be used for publicity or propaganda purposes

26 within the United States not authorized before the date
77

HR 3540 PP

1 of enactment of this Act by the Congress: Provided, That

2 not to exceed $750,000 may be made available to carry

3 out the provisions of section 316 of Public Law 96–533.

4 USE OF AMERICAN RESOURCES

5 SEC. 547. To the maximum extent possible, assist6 ance provided under this Act should make full use of

7 American resources, including commodities, products, and

8 services.

9 PROHIBITION OF PAYMENTS TO UNITED NATIONS

10 MEMBERS

11 SEC. 548. None of the funds appropriated or made

12 available pursuant to this Act for carrying out the Foreign

13 Assistance Act of 1961, may be used to pay in whole or

14 in part any assessments, arrearages, or dues of any mem15 ber of the United Nations.

16 CONSULTING SERVICES

17 SEC. 549. The expenditure of any appropriation

18 under this Act for any consulting service through procure19 ment contract, pursuant to section 3109 of title 5, United

20 States Code, shall be limited to those contracts where such

21 expenditures are a matter of public record and available

22 for public inspection, except where otherwise provided

23 under existing law, or under existing Executive order pur24 suant to existing law.
78

HR 3540 PP

1 PRIVATE VOLUNTARY ORGANIZATIONS—DOCUMENTATION

2 SEC. 550. None of the funds appropriated or made

3 available pursuant to this Act shall be available to a pri4 vate voluntary organization which fails to provide upon

5 timely request any document, file, or record necessary to

6 the auditing requirements of the Agency for International

7 Development.

8 PROHIBITION ON ASSISTANCE TO FOREIGN GOVERN9 MENTS THAT EXPORT LETHAL MILITARY EQUIP10 MENT TO COUNTRIES SUPPORTING INTERNATIONAL

11 TERRORISM

12 SEC. 551. (a) None of the funds appropriated or oth13 erwise made available by this Act may be available to any

14 foreign government which provides lethal military equip15 ment to a country the government of which the Secretary

16 of State has determined is a terrorist government for pur17 poses of section 40(d) of the Arms Export Control Act.

18 The prohibition under this section with respect to a for19 eign government shall terminate 12 months after that gov20 ernment ceases to provide such military equipment. This

21 section applies with respect to lethal military equipment

22 provided under a contract entered into after the date of

23 enactment of this Act.

24 (b) Assistance restricted by subsection (a) or any

25 other similar provision of law, may be furnished if the
79

HR 3540 PP

1 President determines that furnishing such assistance is

2 important to the national interests of the United States.

3 (c) Whenever the waiver of subsection (b) is exer4 cised, the President shall submit to the appropriate con5 gressional committees a report with respect to the furnish6 ing of such assistance. Any such report shall include a de7 tailed explanation of the assistance to be provided, includ8 ing the estimated dollar amount of such assistance, and

9 an explanation of how the assistance furthers United

10 States national interests.

11 WITHHOLDING OF ASSISTANCE FOR PARKING FINES

12 OWED BY FOREIGN COUNTRIES

13 SEC. 552. (a) IN GENERAL.—Of the funds made

14 available for a foreign country under part I of the Foreign

15 Assistance Act of 1961, an amount equivalent to 110 per16 cent of the total unpaid fully adjudicated parking fines

17 and penalties owed to the District of Columbia by such

18 country as of the date of enactment of this Act shall be

19 withheld from obligation for such country until the Sec20 retary of State certifies and reports in writing to the ap21 propriate congressional committees that such fines and

22 penalties are fully paid to the government of the District

23 of Columbia.

24 (b) DEFINITION.—For purposes of this section, the

25 term ‘‘appropriate congressional committees’’ means the

26 Committee on Foreign Relations and the Committee on
80

HR 3540 PP

1 Appropriations of the Senate and the Committee on Inter2 national Relations and the Committee on Appropriations

3 of the House of Representatives.

4 LIMITATION ON ASSISTANCE FOR THE PLO FOR THE

5 WEST BANK AND GAZA

6 SEC. 553. None of the funds appropriated by this Act

7 may be obligated for assistance for the Palestine Libera8 tion Organization for the West Bank and Gaza unless the

9 President has exercised the authority under section 604(a)

10 of the Middle East Peace Facilitation Act of 1995 (title

11 VI of Public Law 104–107) or any other legislation to sus12 pend or make inapplicable section 307 of the Foreign As13 sistance Act of 1961 and that suspension is still in effect:

14 Provided, That if the President fails to make the certifi15 cation under section 604(b)(2) of the Middle East Peace

16 Facilitation Act of 1995 or to suspend the prohibition

17 under other legislation, funds appropriated by this Act

18 may not be obligated for assistance for the Palestine Lib19 eration Organization for the West Bank and Gaza.

20 EXPORT FINANCING TRANSFER AUTHORITIES

21 SEC. 554. Not to exceed 5 percent of any appropria22 tion other than for administrative expenses made available

23 for fiscal year 1997 for programs under title I of this Act

24 may be transferred between such appropriations for use

25 for any of the purposes, programs and activities for which

26 the funds in such receiving account may be used, but no
81

HR 3540 PP

1 such appropriation, except as otherwise specifically pro2 vided, shall be increased by more than 25 percent by any

3 such transfer: Provided, That the exercise of such author4 ity shall be subject to the regular notification procedures

5 of the Committees on Appropriations.

6 WAR CRIMES TRIBUNALS

7 SEC. 555. If the President determines that doing so

8 will contribute to a just resolution of charges regarding

9 genocide or other violations of international humanitarian

10 law, the President may direct a drawdown pursuant to sec11 tion 552(c) of the Foreign Assistance Act of 1961, as

12 amended, of up to $50,000,000 of commodities and serv13 ices for the United Nations War Crimes Tribunal estab14 lished with regard to the former Yugoslavia by the United

15 Nations Security Council or such other tribunals or com16 missions as the Council may establish to deal with such

17 violations, without regard to the ceiling limitation con18 tained in paragraph (2) thereof: Provided, That the deter19 mination required under this section shall be in lieu of

20 any determinations otherwise required under section

21 552(c): Provided further, That 60 days after the date of

22 enactment of this Act, and every 180 days thereafter, the

23 Secretary of State shall submit a report to the Committees

24 on Appropriations describing the steps the United States

25 Government is taking to collect information regarding alle26 gations of genocide or other violations of international law
82

HR 3540 PP

1 in the former Yugoslavia and to furnish that information

2 to the United Nations War Crimes Tribunal for the former

3 Yugoslavia.

4 LANDMINES

5 SEC. 556. Notwithstanding any other provision of

6 law, demining equipment available to any department or

7 agency and used in support of the clearing of landmines

8 for humanitarian purposes may be disposed of on a grant

9 basis in foreign countries, subject to such terms and condi10 tions as the President may prescribe.

11 RESTRICTIONS CONCERNING THE PALESTINIAN

12 AUTHORITY

13 SEC. 557. None of the funds appropriated by this Act

14 may be obligated or expended to create in any part of Je15 rusalem a new office of any department or agency of the

16 United States Government for the purpose of conducting

17 official United States Government business with the Pal18 estinian Authority over Gaza and Jericho or any successor

19 Palestinian governing entity provided for in the Israel20 PLO Declaration of Principles: Provided, That this re21 striction shall not apply to the acquisition of additional

22 space for the existing Consulate General in Jerusalem:

23 Provided further, That meetings between officers and em24 ployees of the United States and officials of the Palestin25 ian Authority, or any successor Palestinian governing en26 tity provided for in the Israel-PLO Declaration of Prin-
83

HR 3540 PP

1 ciples, for the purpose of conducting official United States

2 Government business with such authority should continue

3 to take place in locations other than Jerusalem. As has

4 been true in the past, officers and employees of the United

5 States Government may continue to meet in Jerusalem on

6 other subjects with Palestinians (including those who now

7 occupy positions in the Palestinian Authority), have social

8 contacts, and have incidental discussions.

9 PROHIBITION OF PAYMENT OF CERTAIN EXPENSES

10 SEC. 558. None of the funds appropriated or other11 wise made available by this Act under the heading

12 ‘‘INTERNATIONAL MILITARY EDUCATION AND TRAINING’’

13 or ‘‘FOREIGN MILITARY FINANCING PROGRAM’’ for Infor14 mational Program activities may be obligated or expended

15 to pay for—

16 (1) alcoholic beverages;

17 (2) food (other than food provided at a military

18 installation) not provided in conjunction with Infor19 mational Program trips where students do not stay

20 at a military installation; or

21 (3) entertainment expenses for activities that

22 are substantially of a recreational character, includ23 ing entrance fees at sporting events and amusement

24 parks.
84

HR 3540 PP

1 HUMANITARIAN ASSISTANCE

2 SEC. 559. (a) IN GENERAL.—None of the funds

3 made available in this Act may be used for assistance in

4 support of any country when it is made known to the

5 President that the government of such country prohibits

6 or otherwise restricts, directly or indirectly, the transport

7 or delivery of United States humanitarian assistance.

8 (b) EXCEPTION.—Funds (other than funds appro9 priated in this Act under the heading ‘‘Economic Support

10 Fund’’) may be made available without regard to the re11 striction in subsection (a) if the President determines that

12 to do so is in the national security interest of the United

13 States.

14 WITHHOLDING OF ASSISTANCE TO COUNTRIES

15 SUPPORTING NUCLEAR PLANT IN CUBA

16 SEC. 560. (a) WITHHOLDING.—The President shall

17 withhold from assistance made available with funds appro18 priated or made available pursuant to this Act an amount

19 equal to the sum of assistance and credits, if any, provided

20 on or after the date of the enactment of this Act by that

21 country, or any entity in that country, in support of the

22 completion of the Cuban nuclear facility at Juragua, near

23 Cienfuegos, Cuba.

24 (b) EXCEPTIONS.—The requirement of subsection (a)

25 to withhold assistance shall not apply with respect to—
85

HR 3540 PP

1 (1) assistance to meet urgent humanitarian

2 needs including disaster and refugee relief;

3 (2) democratic political reform and rule of law

4 activities;

5 (3) support for private sector and nongovern6 mental organizations that are independent of govern7 ment control;

8 (4) the development of a free market economic

9 system; and

10 (5) assistance for the purposes described in the

11 Cooperative Threat Reduction Act of 1993 (title XII

12 of Public Law 103–160).

13 EQUITABLE ALLOCATION OF FUNDS

14 SEC. 561. Not more than 20 percent of the funds

15 appropriated by this Act to carry out the provisions of sec16 tions 103 through 106 and chapter 4 of part II of the

17 Foreign Assistance Act of 1961, that are made available

18 for Latin America and the Caribbean region may be made

19 available, through bilateral and Latin America and the

20 Caribbean regional programs, to provide assistance for

21 any country in such region.

22 PURCHASE OF AMERICAN-MADE EQUIPMENT AND

23 PRODUCTS

24 SEC. 562. (a) SENSE OF CONGRESS.—It is the sense

25 of the Congress that, to the greatest extent practicable,
86

HR 3540 PP

1 all equipment and products purchased with funds made

2 available in this Act should be American-made.

3 (b) NOTICE REQUIREMENT.—In providing financial

4 assistance to, or entering into any contract with, any en5 tity using funds made available in this Act, the head of

6 each Federal agency, to the greatest extent practicable,

7 shall provide to such entity a notice describing the state8 ment made in subsection (a) by the Congress.

9 LIMITATION OF FUNDS FOR NORTH AMERICAN

10 DEVELOPMENT BANK

11 SEC. 563. None of the funds appropriated in this Act

12 under the heading ‘‘North American Development Bank’’

13 and made available for the Community Adjustment and

14 Investment Program shall be used for purposes other than

15 those set out in the binational agreement establishing the

16 Bank.

17 INTERNATIONAL DEVELOPMENT ASSOCIATION

18 SEC. 564. In order to pay for the United States con19 tribution to the tenth replenishment of the resources of

20 the International Development Association authorized in

21 section 526 of Public Law 103–87, there is authorized to

22 be appropriated, without fiscal year limitation,

23 $525,000,000 for payment by the Secretary of the Treas24 ury.
87

HR 3540 PP

1 SPECIAL DEBT RELIEF FOR THE POOREST

2 SEC. 565. (a) AUTHORITY TO REDUCE DEBT.—The

3 President may reduce amounts owed to the United States

4 (or any agency of the United States) by an eligible country

5 as a result of—

6 (1) guarantees issued under sections 221 and

7 222 of the Foreign Assistance Act of 1961; or

8 (2) credits extended or guarantees issued under

9 the Arms Export Control Act.

10 (b) LIMITATIONS.—

11 (1) The authority provided by subsection (a)

12 may be exercised only to implement multilateral offi13 cial debt relief and referendum agreements, com14 monly referred to as ‘‘Paris Club Agreed Minutes’’.

15 (2) The authority provided by subsection (a)

16 may be exercised only in such amounts or to such

17 extent as is provided in advance by appropriations

18 Acts.

19 (3) The authority provided by subsection (a)

20 may be exercised only with respect to countries with

21 heavy debt burdens that are eligible to borrow from

22 the International Development Association, but not

23 from the International Bank for Reconstruction and

24 Development, commonly referred to as ‘‘IDA-only’’

25 countries.
88

HR 3540 PP

1 (c) CONDITIONS.—The authority provided by sub2 section (a) may be exercised only with respect to a country

3 whose government—

4 (1) does not have an excessive level of military

5 expenditures;

6 (2) has not repeatedly provided support for acts

7 of international terrorism;

8 (3) is not failing to cooperate on international

9 narcotics control matters;

10 (4) (including its military or other security

11 forces) does not engage in a consistent pattern of

12 gross violations of internationally recognized human

13 rights; and

14 (5) is not ineligible for assistance because of the

15 application of section 527 of the Foreign Relations

16 Authorization Act, fiscal years 1994 and 1995.

17 (d) AVAILABILITY OF FUNDS.—The authority pro18 vided by subsection (a) may be used only with regard to

19 funds appropriated by this Act under the heading ‘‘Debt

20 restructuring’’.

21 (e) CERTAIN PROHIBITIONS INAPPLICABLE.—A re22 duction of debt pursuant to subsection (a) shall not be

23 considered assistance for purposes of any provision of law

24 limiting assistance to a country. The authority provided
89

HR 3540 PP

1 by subsection (a) may be exercised notwithstanding sec2 tion 620(r) of the Foreign Assistance Act of 1961.

3 AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES

4 SEC. 566. (a) LOANS ELIGIBLE FOR SALE, REDUC5 TION, OR CANCELLATION.—

6 (1) AUTHORITY TO SELL, REDUCE, OR CANCEL

7 CERTAIN LOANS.—Notwithstanding any other provi8 sion of law, the President may, in accordance with

9 this section, sell to any eligible purchaser any

10 concessional loan or portion thereof made before

11 January 1, 1995, pursuant to the Foreign Assist12 ance Act of 1961, to the government of any eligible

13 country as defined in section 702(6) of that Act or

14 on receipt of payment from an eligible purchaser, re15 duce or cancel such loan or portion thereof, only for

16 the purpose of facilitating—

17 (A) debt-for-equity swaps, debt-for-develop18 ment swaps, or debt-for-nature swaps; or

19 (B) a debt buyback by an eligible country

20 of its own qualified debt, only if the eligible

21 country uses an additional amount of the local

22 currency of the eligible country, equal to not

23 less than 40 percent of the price paid for such

24 debt by such eligible country, or the difference

25 between the price paid for such debt and the

26 face value of such debt, to support activities
90

HR 3540 PP

1 that link conservation and sustainable use of

2 natural resources with local community develop3 ment, and child survival and other child devel4 opment, in a manner consistent with sections

5 707 through 710 of the Foreign Assistance Act

6 of 1961, if the sale, reduction, or cancellation

7 would not contravene any term or condition of

8 any prior agreement relating to such loan.

9 (2) TERMS AND CONDITIONS.—Notwithstanding

10 any other provision of law, the President shall, in ac11 cordance with this section, establish the terms and

12 conditions under which loans may be sold, reduced,

13 or canceled pursuant to this section.

14 (3) ADMINISTRATION.—The Facility, as defined

15 in section 702(8) of the Foreign Assistance Act of

16 1961, shall notify the administrator of the agency

17 primarily responsible for administering part I of the

18 Foreign Assistance Act of 1961 of purchasers that

19 the President has determined to be eligible, and

20 shall direct such agency to carry out the sale, reduc21 tion, or cancellation of a loan pursuant to this sec22 tion. Such agency shall make an adjustment in its

23 accounts to reflect the sale, reduction, or cancella24 tion.
91

HR 3540 PP

1 (4) LIMITATION.—The authorities of this sub2 section shall be available only to the extent that ap3 propriations for the cost of the modification, as de4 fined in section 502 of the Congressional Budget Act

5 of 1974, are made in advance.

6 (b) DEPOSIT OF PROCEEDS.—The proceeds from the

7 sale, reduction, or cancellation of any loan sold, reduced,

8 or canceled pursuant to this section shall be deposited in

9 the United States Government account or accounts estab10 lished for the repayment of such loan.

11 (c) ELIGIBLE PURCHASERS.—A loan may be sold

12 pursuant to subsection (a)(1)(A) only to a purchaser who

13 presents plans satisfactory to the President for using the

14 loan for the purpose of engaging in debt-for-equity swaps,

15 debt-for-development swaps, or debt-for-nature swaps.

16 (d) DEBTOR CONSULTATIONS.—Before the sale to

17 any eligible purchaser, or any reduction or cancellation

18 pursuant to this section, of any loan made to an eligible

19 country, the President should consult with the country

20 concerning the amount of loans to be sold, reduced, or

21 canceled and their uses for debt-for-equity swaps, debt22 for-development swaps, or debt-for-nature swaps.

23 (e) AVAILABILITY OF FUNDS.—The authority pro24 vided by subsection (a) may be used only with regard to
92

HR 3540 PP

1 funds appropriated by this Act under the heading ‘‘Debt

2 restructuring’’.

3 LIBERIA

4 SEC. 567. Funds appropriated by this Act may be

5 made available for assistance for Liberia notwithstanding

6 section 620(q) of the Foreign Assistance Act of 1961 and

7 section 512 of this Act.

8 GUATEMALA

9 SEC. 568. (a) Funds provided in this Act may be

10 made available for the Guatemalan military forces, and

11 the restrictions on Guatemala under the headings ‘‘Inter12 national Military Education and Training’’ and ‘‘Foreign

13 Military Financing Program’’ shall not apply, only if the

14 President determines and certifies to the Congress that

15 the Guatemalan military is cooperating with efforts to re16 solve human rights abuses which elements of the Guate17 malan military forces are alleged to have committed, or18 dered or attempted to thwart the investigation of.

19 (b) The prohibition contained in subsection (a) shall

20 not apply to funds made available to implement a ceasefire

21 or peace agreement.

22 (c) Any funds made available pursuant to subsections

23 (a) or (b) shall be subject to the regular notification proce24 dures of the Committees on Appropriations.

25 (d) Any funds made available pursuant to subsections

26 (a) and (b) for international military education and train-
93

HR 3540 PP

1 ing may only be for expanded international military edu2 cation and training.

3 SANCTIONS AGAINST COUNTRIES HARBORING WAR

4 CRIMINALS

5 SEC. 569. (a) BILATERAL ASSISTANCE.—The Presi6 dent is authorized to withhold funds appropriated by this

7 Act under the Foreign Assistance Act of 1961 or the Arms

8 Export Control Act for any country described in sub9 section (c).

10 (b) MULTILATERAL ASSISTANCE.—The Secretary of

11 the Treasury should instruct the United States executive

12 directors of the international financial institutions to work

13 in opposition to, and vote against, any extension by such

14 institutions of financing or financial or technical assist15 ance to any country described in subsection (c).

16 (c) SANCTIONED COUNTRIES.—A country described

17 in this subsection is a country the government of which

18 knowingly grants sanctuary to persons in its territory for

19 the purpose of evading prosecution, where such persons—

20 (1) have been indicted by the International

21 Criminal Tribunal for the former Yugoslavia, the

22 International Criminal Tribunal for Rwanda, or any

23 other international tribunal with similar standing

24 under international law, or

25 (2) have been indicted for war crimes or crimes

26 against humanity committed during the period be-
94

HR 3540 PP

1 ginning March 23, 1933 and ending on May 8, 1945

2 under the direction of, or in association with—

3 (A) the Nazi government of Germany;

4 (B) any government in any area occupied

5 by the military forces of the Nazi government

6 of Germany;

7 (C) any government which was established

8 with the assistance or cooperation of the Nazi

9 government; or

10 (D) any government which was an ally of

11 the Nazi government of Germany.

12 LIMITATION ON ASSISTANCE FOR HAITI

13 SEC. 570. (a) LIMITATION.—None of the funds ap14 propriated or otherwise made available by this Act, may

15 be provided to the Government of Haiti until the President

16 reports to Congress that—

17 (1) the Government is conducting thorough in18 vestigations of extrajudicial and political killings, in19 cluding the murders of Mireille Bertin, Michel Gon20 zalez, and Jean Hubert Feuille; and

21 (2) the Government is cooperating with United

22 States authorities in the investigations of political

23 and extrajudicial killings.

24 (b) Nothing in this section shall be construed to re25 strict the provision of humanitarian or electoral assist26 ance.
95

HR 3540 PP

1 (c) The President may waive the requirements of this

2 section on a quarterly basis if he determines and certifies

3 to the appropriate committees of Congress that it is in

4 the national interest of the United States.

5 (d) The authority contained in the previous sub6 section to make such a determination may be exercised

7 by the President only and may not be delegated.

8 LIMITATION OF ASSISTANCE TO TURKEY

9 SEC. 571. Not more than $25,000,000 of the funds

10 appropriated in this Act under the heading ‘‘Economic

11 Support Fund’’ may be made available to the Government

12 of Turkey.

13 REPORTS REGARDING HONG KONG

14 SEC. 572. (a) Section 301 of the United States-Hong

15 Kong Policy Act of 1992 (22 U.S.C. 5731) is amended

16 in the text above paragraph (1) by inserting ‘‘March 31,

17 1997,’’ after ‘‘March 31, 1996,’’.

18 (b) In light of the deficiencies in reports submitted

19 to the Congress pursuant to section 301 of the United

20 States-Hong Kong Policy Act (22 U.S.C. 5731), the Con21 gress directs that the additional report required to be sub22 mitted under such section by subsection (a) of this section

23 include detailed information on the status of, and other

24 developments affecting, implementation of the Sino-Brit25 ish Joint Declaration on the Question of Hong Kong, in26 cluding—
96

HR 3540 PP

1 (1) the Basic Law and its consistency with the

2 Joint Declaration;

3 (2) Beijing’s plans to replace the elected legisla4 ture with an appointed body;

5 (3) the openness and fairness of the election of

6 the chief executive and the executive’s accountability

7 to the legislature;

8 (4) the treatment of political parties;

9 (5) the independence of the Judiciary and its

10 ability to exercise the power of final judgment over

11 Hong Kong law; and

12 (6) the Bill of Rights.

13 LIMITATION ON USE OF FUNDS FOR PURCHASE OF

14 PRODUCTS NOT MADE IN AMERICA

15 SEC. 573. None of the funds appropriated in this Act

16 may be made available to the government of any foreign

17 country when it is made known to the Federal official hav18 ing authority to obligate or expend such funds that—

19 (1) the funds are to be used to purchase any

20 equipment or product made in a country other than

21 such foreign country or the United States; and

22 (2) substantially similar equipment or products

23 are made in the United States and available for pur24 chase at a price that is not more than 10 percent

25 higher.
97

HR 3540 PP

1 LIMITATION ON ASSISTANCE TO TURKEY

2 SEC. 574. Not more than $22,000,000 of the funds

3 appropriated in this Act under the heading ‘‘Economic

4 Support Fund’’ may be made available to the Government

5 of Turkey, except when it is made known to the Federal

6 official having authority to obligate or expend such funds

7 that the Government of Turkey has (1) joined the United

8 States in acknowledging the atrocity committed against

9 the Armenian population of the Ottoman Empire from

10 1915 to 1923; and (2) taken all appropriate steps to honor

11 the memory of the victims of the Armenian genocide.

12 LIMITATION ON FOREIGN MILITARY FINANCING

13 SEC. 575. None of the funds made available under

14 the heading ‘‘Foreign Military Financing Program’’ may

15 be made available for any country when it is made known

16 to the President that the government of such country has

17 not agreed to the Department of Defense conducting dur18 ing the current fiscal year nonreimbursable audits of pri19 vate firms whose contracts are made directly with foreign

20 governments and are financed with funds made available

21 under this heading (as well as subcontractors thereunder)

22 as requested by the Defense Security Assistance Agency.

23 LIMITATION UNDER ARMS EXPORT CONTROL ACT

24 SEC. 576. Not more than $100,000,000 of the funds

25 made available under the heading ‘‘Foreign Military Fi26 nancing Program’’ may be made available for use in fi-
98

HR 3540 PP

1 nancing the procurement of defense articles, defense serv2 ices, or design and construction services that are not sold

3 by the United States Government under the Arms Export

4 Control Act to countries other than Israel and Egypt.

5 LIMITATION ON ASSISTANCE TO MEXICO

6 SEC. 577. None of the funds appropriated or other7 wise made available by this Act may be obligated or ex8 pended for the Government of Mexico, except if it is made

9 known to the Federal entity or official to which funds are

10 appropriated under this Act that—

11 (1) the Government of Mexico is taking actions

12 to reduce the amount of illegal drugs entering the

13 United States from Mexico; and

14 (2) the Government of Mexico—

15 (A) is taking effective actions to apply vig16 orously all law enforcement resources to inves17 tigate, track, capture, incarcerate, and pros18 ecute individuals controlling, supervising, or

19 managing international narcotics cartels or

20 other similar entities and the accomplices of

21 such individuals, individuals responsible for, or

22 otherwise involved in, corruption, and individ23 uals involved in money-laundering;

24 (B) is pursuing international anti-drug

25 trafficking initiatives;
99

HR 3540 PP

1 (C) is cooperating fully with international

2 efforts at narcotics interdiction; and

3 (D) is cooperating fully with requests by

4 the United States for assistance in investiga5 tions of money-laundering violations and is

6 making progress toward implementation of ef7 fective laws to prohibit money-laundering.

8 That the following sums are appropriated, out of any

9 money in the Treasury not otherwise appropriated, for the

10 fiscal year ending September 30, 1997, and for other pur11 poses, namely:

12 TITLE I—EXPORT AND INVESTMENT ASSISTANCE

13 EXPORT-IMPORT BANK OF THE UNITED STATES

14 The Export-Import Bank of the United States is au15 thorized to make such expenditures within the limits of

16 funds and borrowing authority available to such corpora17 tion, and in accordance with law, and to make such con18 tracts and commitments without regard to fiscal year limi19 tations, as provided by section 104 of the Government Cor20 poration Control Act, as may be necessary in carrying out

21 the program for the current fiscal year for such corporation:

22 Provided, That none of the funds available during the cur23 rent fiscal year may be used to make expenditures, con24 tracts, or commitments for the export of nuclear equipment,

25 fuel, or technology to any country other than a nuclear-
100

HR 3540 PP

1 weapon State as defined in Article IX of the Treaty on the

2 Non-Proliferation of Nuclear Weapons eligible to receive

3 economic or military assistance under this Act that has det4 onated a nuclear explosive after the date of enactment of

5 this Act.

6 SUBSIDY APPROPRIATION

7 For the cost of direct loans, loan guarantees, insurance,

8 and tied-aid grants as authorized by section 10 of the Ex9 port-Import Bank Act of 1945, as amended, $730,000,000

10 to remain available until September 30, 1998: Provided,

11 That such costs, including the cost of modifying such loans,

12 shall be as defined in section 502 of the Congressional Budg13 et Act of 1974: Provided further, That such sums shall re14 main available until 2012 for the disbursement of direct

15 loans, loan guarantees, insurance and tied-aid grants obli16 gated in fiscal years 1997 and 1998: Provided further, That

17 up to $50,000,000 of funds appropriated by this paragraph

18 shall remain available until expended and may be used for

19 tied-aid grant purposes: Provided further, That none of the

20 funds appropriated by this paragraph may be used for tied21 aid credits or grants except through the regular notification

22 procedures of the Committees on Appropriations: Provided

23 further, That funds appropriated by this paragraph are

24 made available notwithstanding section 2(b)(2) of the Ex25 port-Import Bank Act of 1945, in connection with the pur-
101

HR 3540 PP

1 chase or lease of any product by any East European coun2 try, any Baltic State, or any agency or national thereof.

3 ADMINISTRATIVE EXPENSES

4 For administrative expenses to carry out the direct

5 and guaranteed loan and insurance programs (to be com6 puted on an accrual basis), including hire of passenger

7 motor vehicles and services as authorized by 5 U.S.C. 3109,

8 and not to exceed $20,000 for official reception and rep9 resentation expenses for members of the Board of Directors,

10 $40,000,000: Provided, That necessary expenses (including

11 special services performed on a contract or fee basis, but

12 not including other personal services) in connection with

13 the collection of moneys owed the Export-Import Bank, re14 possession or sale of pledged collateral or other assets ac15 quired by the Export-Import Bank in satisfaction of mon16 eys owed the Export-Import Bank, or the investigation or

17 appraisal of any property, or the evaluation of the legal

18 or technical aspects of any transaction for which an appli19 cation for a loan, guarantee or insurance commitment has

20 been made, shall be considered nonadministrative expenses

21 for the purposes of this heading: Provided further, That,

22 none of the funds made available by this or any other Act

23 may be made available to pay the salary and any other

24 expenses of the incumbent Chairman and President of the

25 Export-Import Bank unless and until he has been con26 firmed by the United States Senate: Provided further, That,
102

HR 3540 PP

1 notwithstanding subsection (b) of section 117 of the Export

2 Enhancement Act of 1992, subsection (a) thereof shall re3 main in effect until October 1, 1997.

4 OVERSEAS PRIVATE INVESTMENT CORPORATION

5 NONCREDIT ACCOUNT

6 The Overseas Private Investment Corporation is au7 thorized to make, without regard to fiscal year limitations,

8 as provided by 31 U.S.C. 9104, such expenditures and com9 mitments within the limits of funds available to it and in

10 accordance with law as may be necessary: Provided, That

11 the amount available for administrative expenses to carry

12 out the credit and insurance programs (including an

13 amount for official reception and representation expenses

14 which shall not exceed $35,000) shall not exceed

15 $32,000,000: Provided further, That project-specific trans16 action costs, including direct and indirect costs incurred

17 in claims settlements, and other direct costs associated with

18 services provided to specific investors or potential investors

19 pursuant to section 234 of the Foreign Assistance Act of

20 1961, shall not be considered administrative expenses for

21 the purposes of this heading.

22 PROGRAM ACCOUNT

23 For the cost of direct and guaranteed loans,

24 $72,000,000, as authorized by section 234 of the Foreign

25 Assistance Act of 1961, to be derived by transfer from the

26 Overseas Private Investment Corporation Noncredit Ac-
103

HR 3540 PP

1 count: Provided, That such costs, including the cost of modi2 fying such loans, shall be as defined in section 502 of the

3 Congressional Budget Act of 1974: Provided further, That

4 such sums shall be available for direct loan obligations and

5 loan guaranty commitments incurred or made during fiscal

6 years 1997 and 1998: Provided further, That such sums

7 shall remain available through fiscal year 2005 for the dis8 bursement of direct and guaranteed loans obligated in fiscal

9 year 1997, and through fiscal year 2006 for the disburse10 ment of direct and guaranteed loans obligated in fiscal year

11 1998. In addition, such sums as may be necessary for ad12 ministrative expenses to carry out the credit program may

13 be derived from amounts available for administrative ex14 penses to carry out the credit and insurance programs in

15 the Overseas Private Investment Corporation Noncredit Ac16 count and merged with said account.

17 FUNDS APPROPRIATED TO THE PRESIDENT

18 TRADE AND DEVELOPMENT AGENCY

19 For necessary expenses to carry out the provisions of

20 section 661 of the Foreign Assistance Act of 1961,

21 $40,000,000: Provided, That the Trade and Development

22 Agency may receive reimbursements from corporations and

23 other entities for the costs of grants for feasibility studies

24 and other project planning services, to be deposited as an

25 offsetting collection to this account and to be available for
104

HR 3540 PP

1 obligation until September 30, 1997, for necessary expenses

2 under this paragraph: Provided further, That such reim3 bursements shall not cover, or be allocated against, direct

4 or indirect administrative costs of the agency.

5 TITLE II—BILATERAL ECONOMIC ASSISTANCE

6 FUNDS APPROPRIATED TO THE PRESIDENT

7 For expenses necessary to enable the President to carry

8 out the provisions of the Foreign Assistance Act of 1961,

9 and for other purposes, to remain available until September

10 30, 1997, unless otherwise specified herein, as follows:

11 AGENCY FOR INTERNATIONAL DEVELOPMENT

12 DEVELOPMENT ASSISTANCE

13 (INCLUDING TRANSFER OF FUNDS)

14 For necessary expenses to carry out the provisions of

15 sections 103 through 106 and chapter 10 of part I of the

16 Foreign Assistance Act of 1961, title V of the International

17 Security and Development Cooperation Act of 1980 (Public

18 Law 96–533) and the provisions of section 401 of the For19 eign Assistance Act of 1969, $1,262,000,000, to remain

20 available until September 30, 1998: Provided, That of the

21 amount appropriated under this heading, up to

22 $18,000,000 may be made available for the Inter-American

23 Foundation and shall be apportioned directly to that agen24 cy: Provided further, That of the amount appropriated

25 under this heading, up to $10,500,000 may be made avail26 able for the African Development Foundation and shall be
105

HR 3540 PP

1 apportioned directly to that agency: Provided further, That

2 of the funds appropriated under title II of this Act that

3 are administered by the Agency for International Develop4 ment and made available for family planning assistance,

5 not less than 65 percent shall be made available directly

6 to the agency’s central Office of Population and shall be

7 programmed by that office for family planning activities:

8 Provided further, That of the funds appropriated under this

9 heading and under the heading ‘‘Population, Development

10 Assistance’’ that are made available by the Agency for

11 International Development for development assistance ac12 tivities, the amount made available to carry out chapter

13 10 of part I of the Foreign Assistance Act of 1961 (relating

14 to the Development Fund for Africa) shall be in at least

15 the same proportion as the amount identified in the fiscal

16 year 1997 draft congressional presentation document for de17 velopment assistance for sub-Saharan Africa is to the total

18 amount requested for development assistance for such fiscal

19 year: Provided further, That funds appropriated under this

20 heading shall be made available, notwithstanding any other

21 provision of law, to assist Vietnam to refom its trade regime

22 through, among other things, reform of its commercial and

23 investment legal codes: Provided further, That up to

24 $5,000,000 of the funds appropriated under this heading

25 may be made available for necessary expenses to carry out
106

HR 3540 PP

1 the provisions of section 667 of the Foreign Assistance Act

2 of 1961: Provided further, That none of the funds made

3 available in this Act nor any unobligated balances from

4 prior appropriations may be made available to any organi5 zation or program which, as determined by the President

6 of the United States, supports or participates in the man7 agement of a program of coercive abortion or involuntary

8 sterilization: Provided further, That none of the funds made

9 available under this heading or under the heading ‘‘Popu10 lation, Development Assistance’’, may be used to pay for

11 the performance of abortion as a method of family planning

12 or to motivate or coerce any person to practice abortions;

13 and that in order to reduce reliance on abortion in develop14 ing nations, funds shall be available only to voluntary fam15 ily planning projects which offer, either directly or through

16 referral to, or information about access to, a broad range

17 of family planning methods and services: Provided further,

18 That in awarding grants for natural family planning

19 under section 104 of the Foreign Assistance Act of 1961 no

20 applicant shall be discriminated against because of such ap21 plicant’s religious or conscientious commitment to offer

22 only natural family planning; and, additionally, all such

23 applicants shall comply with the requirements of the pre24 vious proviso: Provided further, That for purposes of this

25 or any other Act authorizing or appropriating funds for
107

HR 3540 PP

1 foreign operations, export financing, and related programs,

2 the term ‘‘motivate’’, as it relates to family planning assist3 ance, shall not be construed to prohibit the provision, con4 sistent with local law, of information or counseling about

5 all pregnancy options: Provided further, That nothing in

6 this paragraph shall be construed to alter any existing stat7 utory prohibitions against abortion under section 104 of the

8 Foreign Assistance Act of 1961: Provided further, That, not9 withstanding section 109 of the Foreign Assistance Act of

10 1961, of the funds appropriated under this heading in this

11 Act, and of the unobligated balances of funds previously ap12 propriated under this heading, $17,500,000 shall be trans13 ferred to ‘‘International Organizations and Programs’’ for

14 a contribution to the International Fund for Agricultural

15 Development (IFAD), and that any such transfer of funds

16 shall be subject to the regular notification procedures of the

17 Committees on Appropriations: Provided further, That of

18 the funds appropriated under this heading that are made

19 available for assistance programs for displaced and or20 phaned children and victims of war, not to exceed $25,000,

21 in addition to funds otherwise available for such purposes,

22 may be used to monitor and provide oversight of such pro23 grams: Provided further, That not less than $650,000 of the

24 funds made available under this heading shall be available

25 only for support of the United States Telecommunications
108

HR 3540 PP

1 Training Institute: Provided further, That of the amount

2 appropriated under this heading, not less than $15,000,000

3 shall be available only for the American Schools and Hos4 pitals Abroad program under section 214 of the Foreign

5 Assistance Act of 1961.

6 POPULATION, DEVELOPMENT ASSISTANCE

7 For necessary expenses to carry out the provisions of

8 section 104(b) of the Foreign Assistance Act of 1961,

9 $410,000,000, to remain available until September 30,

10 1998.

11 CYPRUS

12 Of the funds appropriated under the headings ‘‘Devel13 opment Assistance’’ and ‘‘Economic Support Fund’’, not

14 less than $15,000,000 shall be made available for Cyprus

15 to be used only for scholarships, administrative support of

16 the scholarship program, bicommunal projects, and meas17 ures aimed at reunification of the island and designed to

18 reduce tensions and promote peace and cooperation between

19 the two communities on Cyprus.

20 BURMA

21 Of the funds appropriated by this Act to carry out the

22 provisions of chapter 8 of part I and chapter 4 of part II

23 of the Foreign Assistance Act of 1961, not less than

24 $2,500,000 shall be made available to support activities in

25 Burma, along the Burma-Thailand border, and for activi26 ties of Burmese student groups and other organizations lo-
109

HR 3540 PP

1 cated outside Burma, for the purposes of fostering democ2 racy in Burma, supporting the provision of medical sup3 plies and other humanitarian assistance to Burmese located

4 in Burma or displaced Burmese along the borders, and for

5 other purposes: Provided, That of this amount, not less than

6 $200,000 shall be made available to support newspapers,

7 publications, and other media activities promoting democ8 racy inside Burma: Provided further, That funds made

9 available under this heading may be made available not10 withstanding any other provision of law: Provided further,

11 That provision of such funds shall be made available subject

12 to the regular notification procedures of the Committees on

13 Appropriations.

14 PRIVATE AND VOLUNTARY ORGANIZATIONS

15 None of the funds appropriated or otherwise made

16 available by this Act for development assistance may be

17 made available to any United States private and voluntary

18 organization, except any cooperative development organiza19 tion, which obtains less than 20 per centum of its total an20 nual funding for international activities from sources other

21 than the United States Government: Provided, That the re22 quirements of the provisions of section 123(g) of the Foreign

23 Assistance Act of 1961 and the provisions on private and

24 voluntary organizations in title II of the ‘‘Foreign Assist25 ance and Related Programs Appropriations Act, 1985’’ (as

26 enacted in Public Law 98–473) shall be superseded by the
110

HR 3540 PP

1 provisions of this section, except that the authority con2 tained in the last sentence of section 123(g) may be exer3 cised by the Administrator with regard to the requirements

4 of this paragraph.

5 Funds appropriated or otherwise made available

6 under title II of this Act should be made available to private

7 and voluntary organizations at a level which is equivalent

8 to the level provided in fiscal year 1995. Such private and

9 voluntary organizations shall include those which operate

10 on a not-for-profit basis, receive contributions from private

11 sources, receive voluntary support from the public and are

12 deemed to be among the most cost-effective and successful

13 providers of development assistance.

14 INTERNATIONAL DISASTER ASSISTANCE

15 For necessary expenses for international disaster relief,

16 rehabilitation, and reconstruction assistance pursuant to

17 section 491 of the Foreign Assistance Act of 1961, as amend18 ed, $190,000,000, to remain available until expended.

19 DEBT RESTRUCTURING

20 For the cost, as defined in section 502 of the Congres21 sional Budget Act of 1974, of modifying direct loans and

22 loan guarantees, as the President may determine, for which

23 funds have been appropriated or otherwise made available

24 for programs within the International Affairs Budget Func25 tion 150, including the cost of selling, reducing, or canceling

26 amounts, through debt buybacks and swaps, owed to the
111

HR 3540 PP

1 United States as a result of concessional loans made to eli2 gible Latin American and Caribbean countries, pursuant

3 to part IV of the Foreign Assistance Act of 1961; of modify4 ing direct loans extended to least developed countries, as

5 authorized under title I of the Agricultural Trade Develop6 ment and Assistance Act of 1954, as amended; and of modi7 fying concessional loans authorized under title I of the Agri8 cultural Trade Development and Assistance Act of 1954, as

9 amended, as authorized under subsection (a) under the

10 heading ‘‘Debt Reduction for Jordan’’ in title VI of Public

11 Law 103–306, $27,000,000, to remain available until ex12 pended: Provided, That none of the funds appropriated

13 under this heading shall be obligated except through the reg14 ular notification procedures of the Committee on Appro15 priations.

16 MICRO AND SMALL ENTERPRISE DEVELOPMENT PROGRAM

17 ACCOUNT

18 For the subsidy cost of direct loans and loan guaran19 tees, $1,500,000, as authorized by section 108 of the Foreign

20 Assistance Act of 1961, as amended: Provided, That such

21 costs shall be as defined in section 502 of the Congressional

22 Budget Act of 1974: Provided further, That guarantees of

23 loans made under this heading in support of microenter24 prise activities may guarantee up to 70 percent of the prin25 cipal amount of any such loans notwithstanding section

26 108 of the Foreign Assistance Act of 1961. In addition, for
112

HR 3540 PP

1 administrative expenses to carry out programs under this

2 heading, $500,000, all of which may be transferred to and

3 merged with the appropriation for Operating Expenses of

4 the Agency for International Development: Provided fur5 ther, That funds made available under this heading shall

6 remain available until September 30, 1998.

7 HOUSING GUARANTY PROGRAM ACCOUNT

8 For the cost, as defined in section 502 of the Congres9 sional Budget Act of 1974, of guaranteed loans authorized

10 by sections 221 and 222 of the Foreign Assistance Act of

11 1961, $4,000,000, to remain available until September 30,

12 1998: Provided, That these funds are available to subsidize

13 loan principal, 100 percent of which shall be guaranteed,

14 pursuant to the authority of such sections. In addition, for

15 administrative expenses to carry out guaranteed loan pro16 grams, $6,000,000, all of which may be transferred to and

17 merged with the appropriation for Operating Expenses of

18 the Agency for International Development: Provided fur19 ther, That commitments to guarantee loans under this head20 ing may be entered into notwithstanding the second and

21 third sentences of section 222(a) and, with regard to pro22 grams for central and Eastern Europe and programs for

23 the benefit of South Africans disadvantaged by apartheid,

24 section 223(j) of the Foreign Assistance Act of 1961.
113

HR 3540 PP

1 PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND

2 DISABILITY FUND

3 For payment to the ‘‘Foreign Service Retirement and

4 Disability Fund’’, as authorized by the Foreign Service Act

5 of 1980, $43,826,000.

6 OPERATING EXPENSES OF THE AGENCY FOR

7 INTERNATIONAL DEVELOPMENT

8 For necessary expenses to carry out the provisions of

9 section 667, $495,000,000: Provided, That notwithstanding

10 any other provision of law, none of the funds appropriated

11 or otherwise made available by this Act may be made avail12 able for expenses necessary to relocate the Agency for Inter13 national Development, or any part of that agency, to the

14 building at the Federal Triangle in Washington, District

15 of Columbia.

16 OPERATING EXPENSES OF THE AGENCY FOR INTER17 NATIONAL DEVELOPMENT OFFICE OF INSPECTOR GEN18 ERAL

19 For necessary expenses to carry out the provisions of

20 section 667, $28,000,000, to remain available until ex21 pended, which sum shall be available for the Office of the

22 Inspector General of the Agency for International Develop23 ment.
114

HR 3540 PP

1 OTHER BILATERAL ECONOMIC ASSISTANCE

2 ECONOMIC SUPPORT FUND

3 For necessary expenses to carry out the provisions of

4 chapter 4 of part II, $2,340,000,000, to remain available

5 until September 30, 1998: Provided, That of the funds ap6 propriated under this heading, not less than $1,200,000,000

7 shall be available only for Israel, which sum shall be avail8 able on a grant basis as a cash transfer and shall be dis9 bursed within thirty days of enactment of this Act or by

10 October 31, 1996, whichever is later: Provided further, That

11 not less than $815,000,000 shall be available only for

12 Egypt, which sum shall be provided on a grant basis, and

13 of which sum cash transfer assistance may be provided,

14 with the understanding that Egypt will undertake signifi15 cant economic reforms which are additional to those which

16 were undertaken in previous fiscal years, and of which not

17 less than $200,000,000 shall be provided as Commodity Im18 port Program assistance: Provided further, That in exercis19 ing the authority to provide cash transfer assistance for Is20 rael and Egypt, the President shall ensure that the level

21 of such assistance does not cause an adverse impact on the

22 total level of non-military exports from the United States

23 to each such country: Provided further, That it is the sense

24 of the Congress that the recommended levels of assistance

25 for Egypt and Israel are based in great measure upon their
115

HR 3540 PP

1 continued participation in the Camp David Accords and

2 upon the Egyptian-Israeli peace treaty: Provided further,

3 That of the funds appropriated under this heading,

4 $3,000,000 shall be made available to establish an inde5 pendent radio broadcasting service to Iran: Provided fur6 ther, That none of the funds appropriated under this head7 ing shall be made available for Zaire: Provided further,

8 That of the funds appropriated under this heading by prior

9 appropriations Acts, $36,000,000 of unobligated and

10 unearmarked funds shall be transferred to and consolidated

11 with funds appropriated by this Act under the heading

12 ‘‘International Organizations and Programs’’.

13 ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC

14 STATES

15 (a) For necessary expenses to carry out the provisions

16 of the Foreign Assistance Act of 1961 and the Support for

17 East European Democracy (SEED) Act of 1989,

18 $475,000,000, to remain available until September 30,

19 1998, which shall be available, notwithstanding any other

20 provision of law, for economic assistance and for related

21 programs for Central and Eastern Europe and the Baltic

22 States.

23 (b) Funds appropriated under this heading or in prior

24 appropriations Acts that are or have been made available

25 for an Enterprise Fund may be deposited by such Fund

26 in interest-bearing accounts prior to the Fund’s disburse-
116

HR 3540 PP

1 ment of such funds for program purposes. The Fund may

2 retain for such program purposes any interest earned on

3 such deposits without returning such interest to the Treas4 ury of the United States and without further appropriation

5 by the Congress. Funds made available for Enterprise

6 Funds shall be expended at the minimum rate necessary

7 to make timely payment for projects and activities.

8 (c) Funds appropriated under this heading shall be

9 considered to be economic assistance under the Foreign As10 sistance Act of 1961 for purposes of making available the

11 administrative authorities contained in that Act for the use

12 of economic assistance.

13 (d) With regard to funds appropriated or otherwise

14 made available under this heading for the economic revital15 ization program in Bosnia and Herzegovina, and local cur16 rencies generated by such funds (including the conversion

17 of funds appropriated under this heading into currency

18 used by Bosnia and Herzegovina as local currency and local

19 currency returned or repaid under such program)—

20 (1) the Administrator of the Agency for Inter21 national Development shall provide written approval

22 for grants and loans prior to the obligation and ex23 penditure of funds for such purposes, and prior to the

24 use of funds that have been returned or repaid to any

25 lending facility or grantee; and
117

HR 3540 PP

1 (2) the provisions of section 534 of this Act shall

2 apply.

3 (e) With regard to funds appropriated under this head4 ing that are made available for economic revitalization pro5 grams in Bosnia and Hercegovina, 50 percent of such funds

6 shall not be available for obligation unless the President de7 termines and certifies to the Committees on Appropriations

8 that the Federation of Bosnia and Hercegovina has com9 plied with article III of annex 1–A of the General Frame10 work Agreement for Peace in Bosnia and Hercegovina con11 cerning the withdrawal of foreign forces, and that intel12 ligence cooperation on training, investigations, and related

13 activities between Iranian officials and Bosnian officials

14 has been terminated.

15 ASSISTANCE FOR THE NEW INDEPENDENT STATES OF THE

16 FORMER SOVIET UNION

17 (a) For necessary expenses to carry out the provisions

18 of chapter 11 of part I of the Foreign Assistance Act of 1961

19 and the FREEDOM Support Act, for assistance for the new

20 independent states of the former Soviet Union and for relat21 ed programs, $640,000,000, to remain available until Sep22 tember 30, 1998: Provided, That the provisions of such

23 chapter shall apply to funds appropriated by this para24 graph: Provided further, That of the funds appropriated

25 under this heading $25,000,000 shall be available for the

26 legal restructuring necessary to support a decentralized
118

HR 3540 PP

1 market-oriented economic system, including enactment of

2 necessary substantive commercial law, implementation of

3 reforms necessary to establish an independent judiciary and

4 bar, legal education for judges, attorneys, and law students,

5 and education of the public designed to promote under6 standing of a law-based economy.

7 (b) None of the funds appropriated under this heading

8 shall be transferred to the Government of Russia—

9 (1) unless that Government is making progress

10 in implementing comprehensive economic reforms

11 based on market principles, private ownership, nego12 tiating repayment of commercial debt, respect for

13 commercial contracts, and equitable treatment of for14 eign private investment; and

15 (2) if that Government applies or transfers Unit16 ed States assistance to any entity for the purpose of

17 expropriating or seizing ownership or control of as18 sets, investments, or ventures.

19 (c) Funds may be furnished without regard to sub20 section (b) if the President determines that to do so is in

21 the national interest.

22 (d) None of the funds appropriated under this heading

23 shall be made available to any government of the new inde24 pendent states of the former Soviet Union if that govern25 ment directs any action in violation of the territorial integ-
119

HR 3540 PP

1 rity or national sovereignty of any other new independent

2 state, such as those violations included in the Helsinki

3 Final Act: Provided, That such funds may be made avail4 able without regard to the restriction in this subsection if

5 the President determines that to do so is in the national

6 security interest of the United States: Provided further,

7 That the restriction of this subsection shall not apply to

8 the use of such funds for the provision of assistance for pur9 poses of humanitarian, disaster and refugee relief.

10 (e) None of the funds appropriated under this heading

11 for the new independent states of the former Soviet Union

12 shall be made available for any state to enhance its military

13 capability: Provided, That this restriction does not apply

14 to demilitarization or nonproliferation programs.

15 (f) Funds appropriated under this heading shall be

16 subject to the regular notification procedures of the Commit17 tees on Appropriations.

18 (g) Funds made available in this Act for assistance

19 to the new independent states of the former Soviet Union

20 shall be subject to the provisions of section 117 (relating

21 to environment and natural resources) of the Foreign As22 sistance Act of 1961.

23 (h)(1) Of the funds appropriated under title II of this

24 Act, including funds appropriated under this heading, not

25 less than $11,000,000 shall be available only for assistance
120

HR 3540 PP

1 for Mongolia, of which amount not less than $6,000,000

2 shall be available only for the Mongolian energy sector.

3 (2) Funds made available for assistance for Mongolia

4 shall be made available in accordance with the purposes

5 and utilizing the authorities provided in chapter 11 of part

6 I of the Foreign Assistance Act of 1961.

7 (i) Funds made available in this Act for assistance to

8 the New Independent States of the former Soviet Union

9 shall be provided to the maximum extent feasible through

10 the private sector, including small- and medium-size busi11 nesses, entrepreneurs, and others with indigenous private

12 enterprises in the region, intermediary development organi13 zations committed to private enterprise, and private vol14 untary organizations: Provided, That grantees and contrac15 tors should, to the maximum extent possible, place in key

16 staff positions specialists with prior on the ground expertise

17 in the region of activity and fluency in one of the local

18 languages.

19 (j) In issuing new task orders, entering into contracts,

20 or making grants, with funds appropriated under this

21 heading or in prior appropriations Acts, for projects or ac22 tivities that have as one of their primary purposes the fos23 tering of private sector development, the Coordinator for

24 United States Assistance to the New Independent States

25 and the implementing agency shall encourage the participa-
121

HR 3540 PP

1 tion of and give significant weight to contractors and grant2 ees who propose investing a significant amount of their own

3 resources (including volunteer services and in-kind con4 tributions) in such projects and activities.

5 (k) Of the funds made available under this heading,

6 not less than $225,000,000 shall be made available for

7 Ukraine, of which funds not less than $25,000,000 shall be

8 made available to carry out United States decommissioning

9 obligations regarding the Chornobyl plant made in the

10 Memorandum of Understanding between the Government of

11 Ukraine and the G–7 Group: Provided, That not less than

12 $35,000,000 shall be made available for agricultural

13 projects, including those undertaken through the Food Sys14 tems Restructuring Program, which leverage private sector

15 resources with United States Government assistance: Pro16 vided further, That $5,000,000 shall be available for a small

17 business incubator project: Provided further, That

18 $5,000,000 shall be made available for screening and treat19 ment of childhood mental and physical illnesses related to

20 Chornobyl radiation: Provided further, That of the amount

21 appropriated under this heading, $5,000,000 shall be avail22 able only for a land and resource management institute to

23 identify nuclear contamination at Chornobyl..

24 (l) Of the funds made available for Ukraine, under this

25 Act or any other Act, not less than $50,000,000 shall be
122

HR 3540 PP

1 made available to improve safety at nuclear reactors: Pro2 vided, That of this amount $20,000,000 shall be provided

3 for the purchase and installation of, and training for, safety

4 parameter display or control systems at all operational nu5 clear reactors: Provided further, That of this amount,

6 $20,000,000 shall be made available for the purchase, con7 struction, installation and training for Full Scope and An8 alytical/Engineering simulators: Provided further, That of

9 this amount such funds as may be necessary shall be made

10 available to conduct Safety Analysis Reports at all oper11 ational nuclear reactors.

12 (m) Of the funds made available by this Act, not less

13 than $95,000,000 shall be made available for Armenia.

14 (n) Of the funds made available by this or any other

15 Act, $25,000,000 shall be made available for Georgia.

16 (o) None of the funds appropriated under this heading

17 may be made available for Russia unless the President de18 termines and certifies in writing to the Committees on Ap19 propriations that the Government of Russia has terminated

20 implementation of arrangements to provide Iran with tech21 nical expertise, training, technology, or equipment nec22 essary to develop a nuclear reactor or related nuclear re23 search facilities or programs.

24 (p) Of the funds appropriated under this heading,

25 $15,000,000 shall be provided for hospital partnership pro-
123

HR 3540 PP

1 grams, medical assistance to directly reduce the incidence

2 of infectious diseases such as diphtheria or tuberculosis, and

3 a program to reduce the adverse impact of contaminated

4 drinking water.

5 (q) Of the funds appropriated under this heading and

6 under the heading ‘‘Assistance for Eastern Europe and the

7 Baltic States’’, not less than $12,000,000 shall be made

8 available for law enforcement training and exchanges, and

9 investigative and technical assistance activities related to

10 international criminal activities: Provided, That of this

11 amount, not less than $1,000,000 shall be made available

12 for training and exchanges in Russia to combat violence

13 against women.

14 (r) Of the funds appropriated under this heading, not

15 less than $50,000,000 should be provided to the Western NIS

16 and Central Asian Enterprise Funds: Provided, That obli17 gation of these funds shall be consistent with sound business

18 practices.

19 (s) Of the funds made available under this heading,

20 not less than $10,000,000 shall be made available for a

21 United States contribution to the Trans-Caucasus Enter22 prise Fund.

23 (t) Funds appropriated under this heading or in prior

24 appropriations Acts that are or have been made available

25 for an Enterprise Fund may be deposited by such Fund
124

HR 3540 PP

1 in interest-bearing accounts prior to the disbursement of

2 such funds by the Fund for program purposes. The Fund

3 may retain for such program proposes any interest earned

4 on such deposits without returning such interest to the

5 Treasury of the United States and without further appro6 priation by the Congress. Funds made available for Enter7 prise Funds shall be expended at the minimum rate nec8 essary to make timely payment for projects and activities.

9 (u) Funds appropriated under this heading may not

10 be made available for the Government of Ukraine if the

11 President determines and reports to the Committees on Ap12 propriations that the Government of Ukraine is engaged in

13 military cooperation with the Government of Libya.

14 (v) Of the funds appropriated under this heading, not

15 less than $15,000,000 shall be available only for a family

16 planning program for the New Independent States of the

17 former Soviet Union comparable to the family planning

18 program currently administered by the Agency for Inter19 national Development in the Central Asian Republics and

20 focusing on population assistance which provides an alter21 native to abortion.

22 (w) Funds made available under this Act or any other

23 Act (other than assistance under title V of the FREEDOM

24 Support Act) may not be provided to the Government of

25 Azerbaijan until the President determines, and so reports
125

HR 3540 PP

1 to the Congress, that the Government of Azerbaijan is taking

2 demonstrable steps to cease all blockades and other offensive

3 uses of force against Armenia and Nagorno-Karabakh.

4 (x) Of the funds appropriated under this heading, not

5 less than $2,500,000 shall be made available for the Amer6 ican-Russian Center.

7 INDEPENDENT AGENCY

8 PEACE CORPS

9 For expenses necessary to carry out the provisions of

10 the Peace Corps Act (75 Stat. 612), $205,000,000, including

11 the purchase of not to exceed five passenger motor vehicles

12 for administrative purposes for use outside of the United

13 States: Provided, That none of the funds appropriated

14 under this heading shall be used to pay for abortions: Pro15 vided further, That funds appropriated under this heading

16 shall remain available until September 30, 1998.

17 DEPARTMENT OF STATE

18 INTERNATIONAL NARCOTICS CONTROL

19 For necessary expenses to carry out the provisions of

20 section 481 of the Foreign Assistance Act of 1961,

21 $213,000,000: Provided, That during fiscal year 1997, the

22 Department of State may also use the authority of section

23 608 of the Foreign Assistance Act of 1961, without regard

24 to its restrictions, to receive non-lethal excess property from

25 an agency of the United States Government for the purpose
126

HR 3540 PP

1 of providing it to a foreign country under chapter 8 of part

2 I of that Act subject to the regular notification procedures

3 of the Committees on Appropriations: Provided, That, of

4 the funds appropriated under this heading, $2,000,000 shall

5 be available only for demining operations in Afghanistan.

6 MIGRATION AND REFUGEE ASSISTANCE

7 For expenses, not otherwise provided for, necessary to

8 enable the Secretary of State to provide, as authorized by

9 law, a contribution to the International Committee of the

10 Red Cross, assistance to refugees, including contributions

11 to the International Organization for Migration and the

12 United Nations High Commissioner for Refugees, and other

13 activities to meet refugee and migration needs; salaries and

14 expenses of personnel and dependents as authorized by the

15 Foreign Service Act of 1980; allowances as authorized by

16 sections 5921 through 5925 of title 5, United States Code;

17 purchase and hire of passenger motor vehicles; and services

18 as authorized by section 3109 of title 5, United States Code,

19 $650,000,000: Provided, That not more than $12,000,000

20 shall be available for administrative expenses: Provided fur21 ther, That not less than $80,000,000 shall be made available

22 for refugees from the former Soviet Union and Eastern Eu23 rope and other refugees resettling in Israel.
127

HR 3540 PP

1 UNITED STATES EMERGENCY REFUGEE AND MIGRATION

2 ASSISTANCE FUND

3 For necessary expenses to carry out the provisions of

4 section 2(c) of the Migration and Refugee Assistance Act

5 of 1962, as amended (22 U.S.C. 260(c)), $50,000,000, to

6 remain available until expended: Provided, That the funds

7 made available under this heading are appropriated not8 withstanding the provisions contained in section 2(c)(2) of

9 the Migration and Refugee Assistance Act of 1962 which

10 would limit the amount of funds which could be appro11 priated for this purpose.

12 NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND

13 RELATED PROGRAMS

14 (INCLUDING TRANSFERS OF FUNDS)

15 For necessary expenses for nonproliferation, anti-ter16 rorism and related programs and activities, $140,000,000

17 to carry out the provisions of chapter 8 of part II of the

18 Foreign Assistance Act of 1961 for anti-terrorism assist19 ance, section 504 of the FREEDOM Support Act for the

20 Nonproliferation and Disarmament Fund, section 23 of the

21 Arms Export Control Act for demining activities, notwith22 standing any other provision of law, including activities

23 implemented through nongovernmental and international

24 organizations, section 301 of the Foreign Assistance Act of

25 1961 for a voluntary contribution to the International

26 Atomic Energy Agency (IAEA) and a voluntary contribu-
128

HR 3540 PP

1 tion to the Korean Peninsula Energy Development Organi2 zation (KEDO), and for the acquisition and provision of

3 goods and services, or for grants to Israel necessary to sup4 port the eradication of terrorism in and around Israel: Pro5 vided, That of this amount not to exceed $15,000,000, to

6 remain available until expended, may be made available

7 for the Nonproliferation and Disarmament Fund, notwith8 standing any other provision of law, to promote bilateral

9 and multilateral activities relating to nonproliferation and

10 disarmament: Provided further, That such funds may also

11 be used for such countries other than the new independent

12 states of the former Soviet Union and international organi13 zations when it is in the national security interest of the

14 United States to do so: Provided further, That such funds

15 shall be subject to the regular notification procedures of the

16 Committees on Appropriations: Provided further, That

17 funds appropriated under this heading may be made avail18 able for the International Atomic Energy Agency only if

19 the Secretary of State determines (and so reports to the

20 Congress) that Israel is not being denied its right to partici21 pate in the activities of that Agency: Provided further, That,

22 notwithstanding any prohibitions in this or any other Act

23 on direct or indirect assistance to North Korea, not more

24 than $25,000,000 may be made available to the Korean Pe25 ninsula Energy Development Organization (KEDO) only
129

HR 3540 PP

1 for heavy fuel oil costs and other expenses associated with

2 the Agreed Framework, of which $13,000,000 shall be from

3 funds appropriated under this heading and $12,000,000

4 may be transferred from funds appropriated by this Act

5 under the headings ‘‘International Organization and Pro6 grams’’, ‘‘Foreign Military Financing Program’’, and

7 ‘‘Economic Support Fund’’: Provided further, That such

8 funds may be obligated to KEDO only if, prior to such obli9 gation of funds, the President certifies and so reports to

10 Congress that (1)(A) the United States is taking steps to

11 assure that progress is made on the implementation of the

12 January 1, 1992, Joint Declaration on the

13 Denuclearization of the Korean Peninsula and the imple14 mentation of the North-South dialogue, and (B) North

15 Korea is complying with the other provisions of the Agreed

16 Framework between North Korea and the United States and

17 with the Confidential Minute; (2) North Korea is cooperat18 ing fully in the canning and safe storage of all spent fuel

19 from its graphite-moderated nuclear reactors and that such

20 canning and safe storage is scheduled to be completed by

21 the end of fiscal year 1997; and (3) North Korea has not

22 significantly diverted assistance provided by the United

23 States for purposes for which such assistance was not in24 tended: Provided further, That the President may waive the

25 certification requirements of the preceding proviso if the
130

HR 3540 PP

1 President deems it necessary in the vital national security

2 interests of the United States: Provided further, That no

3 funds may be obligated for KEDO until 30 calendar days

4 after the submission to Congress of the waiver permitted

5 under the preceding proviso: Provided further, That before

6 obligating any funds for KEDO, the President shall report

7 to Congress on (1) the cooperation of North Korea in the

8 process of returning to the United States the remains of

9 United States military personnel who are listed as missing

10 in action as a result of the Korean conflict (including con11 ducting joint field activities with the United States); (2)

12 violations of the military armistice agreement of 1953; (3)

13 the actions which the United States is taking and plans

14 to take to assure that North Korea is consistently taking

15 steps to implement the Joint Declaration on

16 Denuclearization of the Korean Peninsula and engage in

17 North-South dialogue; and (4) all instances of non-compli18 ance with the agreed framework between North Korea and

19 the United States and the Confidential Minute, including

20 diversion of heating fuel oil: Provided further, That the obli21 gation of such funds shall be subject to the regular notifica22 tion procedures of the Committees on Appropriations.
131

HR 3540 PP

1 TITLE III—MILITARY ASSISTANCE

2 FUNDS APPROPRIATED TO THE PRESIDENT

3 INTERNATIONAL MILITARY EDUCATION AND TRAINING

4 For necessary expenses to carry out the provisions of

5 section 541 of the Foreign Assistance Act of 1961,

6 $40,000,000: Provided, That up to $100,000 of the funds

7 appropriated under this heading may be made available for

8 grant financed military education and training for any

9 high income country on the condition that that country

10 agrees to fund from its own resources the transportation

11 cost and living allowances of its students: Provided further,

12 That the civilian personnel for whom military education

13 and training may be provided under this heading may also

14 include members of national legislatures who are respon15 sible for the oversight and management of the military, and

16 may also include individuals who are not members of a

17 government: Provided further, That none of the funds ap18 propriated under this heading shall be available for Zaire

19 and Guatemala: Provided further, That funds appropriated

20 under this heading for grant financed military education

21 and training for Indonesia may only be available for ex22 panded military education and training.

23 FOREIGN MILITARY FINANCING PROGRAM

24 (INCLUDING TRANSFERS OF FUNDS)

25 For expenses necessary for grants to enable the Presi26 dent to carry out the provisions of section 23 of the Arms
132

HR 3540 PP

1 Export Control Act, $3,224,000,000: Provided, That of the

2 funds appropriated by this paragraph not less than

3 $1,800,000,000 shall be available for grants only for Israel,

4 and not less than $1,300,000,000 shall be available for

5 grants only for Egypt: Provided further, That the funds ap6 propriated by this paragraph for Israel shall be disbursed

7 within thirty days of enactment of this Act or by October

8 31, 1996, whichever is later: Provided further, That to the

9 extent that the Government of Israel requests that funds be

10 used for such purposes, grants made available for Israel by

11 this paragraph shall, as agreed by Israel and the United

12 States, be available for advanced weapons systems, of which

13 not less than $475,000,000 shall be available for the pro14 curement in Israel of defense articles and defense services,

15 including research and development: Provided further, That

16 Poland, Hungary, and the Czech Republic shall be des17 ignated as eligible for the program established under section

18 203(a) of the NATO Participation Act of 1994: Provided

19 further, That of the funds made available under this para20 graph, $30,000,000 shall be available for assistance on a

21 grant basis for Poland, Hungary, and the Czech Republic

22 to carry out title II of Public Law 103–477 and section

23 585 of Public Law 104–107: Provided further, That funds

24 made available under this paragraph shall be nonrepayable

25 notwithstanding any requirement in section 23 of the Arms
133

HR 3540 PP

1 Export Control Act: Provided further, That, for the purpose

2 only of providing support for NATO expansion and the

3 Warsaw Initiative Program, of the funds appropriated by

4 this Act under the headings ‘‘Assistance for Eastern Europe

5 and the Baltic States’’ and ‘‘Assistance for the New Inde6 pendent States of the Former Soviet Union’’, up to a total

7 of $20,000,000 may be transferred, notwithstanding any

8 other provision of law, to the funds appropriated under this

9 paragraph: Provided further, That none of the funds made

10 available under this heading shall be available for any non11 NATO country participating in the Partnership for Peace

12 Program except through the regular notification procedures

13 of the Committees on Appropriations.

14 For the cost, as defined in section 502 of the Congres15 sional Budget Act of 1974, of direct loans authorized by

16 section 23 of the Arms Export Control Act as follows: cost

17 of direct loans, $60,000,000: Provided, That these funds are

18 available to subsidize gross obligations for the principal

19 amount of direct loans of not to exceed $540,000,000: Pro20 vided further, That the rate of interest charged on such

21 loans shall be not less than the current average market yield

22 on outstanding marketable obligations of the United States

23 of comparable maturities: Provided further, That of the

24 funds appropriated under this paragraph $20,000,000 shall

25 be made available to Poland, Hungary, and the Czech Re-
134

HR 3540 PP

1 public: Provided further, That funds appropriated under

2 this heading shall be made available for Greece and Turkey

3 only on a loan basis, and the principal amount of direct

4 loans for each country shall not exceed the following:

5 $122,500,000 only for Greece and $175,000,000 only for

6 Turkey.

7 None of the funds made available under this heading

8 shall be available to finance the procurement of defense arti9 cles, defense services, or design and construction services

10 that are not sold by the United States Government under

11 the Arms Export Control Act unless the foreign country pro12 posing to make such procurements has first signed an agree13 ment with the United States Government specifying the

14 conditions under which such procurements may be financed

15 with such funds: Provided, That all country and funding

16 level increases in allocations shall be submitted through the

17 regular notification procedures of section 515 of this Act:

18 Provided further, That funds made available under this

19 heading shall be obligated upon apportionment in accord20 ance with paragraph (5)(C) of title 31, United States Code,

21 section 1501(a): Provided further, That none of the funds

22 appropriated under this heading shall be available for

23 Zaire, Sudan, Peru, Liberia, and Guatemala: Provided fur24 ther, That none of the funds appropriated or otherwise

25 made available for use under this heading may be made
135

HR 3540 PP

1 available for Colombia or Bolivia until the Secretary of

2 State certifies that such funds will be used by such country

3 primarily for counternarcotics activities: Provided further,

4 That funds made available under this heading may be used,

5 notwithstanding any other provision of law, for activities

6 related to the clearance of landmines and unexploded ord7 nance, and may include activities implemented through

8 nongovernmental and international organizations: Pro9 vided further, That not more than $100,000,000 of the funds

10 made available under this heading shall be available for use

11 in financing the procurement of defense articles, defense

12 services, or design and construction services that are not

13 sold by the United States Government under the Arms Ex14 port Control Act to countries other than Israel and Egypt:

15 Provided further, That only those countries for which assist16 ance was justified for the ‘‘Foreign Military Sales Financ17 ing Program’’ in the fiscal year 1989 congressional presen18 tation for security assistance programs may utilize funds

19 made available under this heading for procurement of de20 fense articles, defense services or design and construction

21 services that are not sold by the United States Government

22 under the Arms Export Control Act: Provided further, That,

23 subject to the regular notification procedures of the Commit24 tees on Appropriations, funds made available under this

25 heading for the cost of direct loans may also be used to sup-
136

HR 3540 PP

1 plement the funds available under this heading for grants,

2 and funds made available under this heading for grants

3 may also be used to supplement the funds available under

4 this heading for the cost of direct loans: Provided further,

5 That funds appropriated under this heading shall be ex6 pended at the minimum rate necessary to make timely pay7 ment for defense articles and services: Provided further,

8 That the Department of Defense shall conduct during the

9 current fiscal year nonreimbursable audits of private firms

10 whose contracts are made directly with foreign governments

11 and are financed with funds made available under this

12 heading (as well as subcontractors thereunder) as requested

13 by the Defense Security Assistance Agency: Provided fur14 ther, That not more than $23,250,000 of the funds appro15 priated under this heading may be obligated for necessary

16 expenses, including the purchase of passenger motor vehicles

17 for replacement only for use outside of the United States,

18 for the general costs of administering military assistance

19 and sales: Provided further, That not more than

20 $355,000,000 of funds realized pursuant to section

21 21(e)(1)(A) of the Arms Export Control Act may be obli22 gated for expenses incurred by the Department of Defense

23 during fiscal year 1997 pursuant to section 43(b) of the

24 Arms Export Control Act, except that this limitation may
137

HR 3540 PP

1 be exceeded only through the regular notification procedures

2 of the Committees on Appropriations.

3 PEACEKEEPING OPERATIONS

4 For necessary expenses to carry out the provisions of

5 section 551 of the Foreign Assistance Act of 1961,

6 $65,000,000: Provided, That none of the funds appropriated

7 under this paragraph shall be obligated or expended except

8 as provided through the regular notification procedures of

9 the Committees on Appropriations.

10 TITLE IV—MULTILATERAL ECONOMIC

11 ASSISTANCE

12 FUNDS APPROPRIATED TO THE PRESIDENT

13 INTERNATIONAL FINANCIAL INSTITUTIONS

14 CONTRIBUTION TO THE GLOBAL ENVIRONMENT FACILITY

15 For payment to the International Bank for Recon16 struction and Development by the Secretary of the Treas17 ury, for the United States contribution to the Global Envi18 ronment Facility (GEF), $35,000,000, to remain available

19 until September 30, 1998.

20 CONTRIBUTION TO THE INTERIM TRUST FUND AT THE

21 INTERNATIONAL DEVELOPMENT ASSOCIATION

22 For payment to the Interim Trust Fund administered

23 by the International Development Association by the Sec24 retary of the Treasury, $700,000,000, to remain available

25 until expended.
138

HR 3540 PP

1 CONTRIBUTION TO THE INTERNATIONAL FINANCE

2 CORPORATION

3 For payment to the International Finance Corpora4 tion by the Secretary of the Treasury, $6,656,000, for the

5 United States share of the increase in subscriptions to cap6 ital stock, to remain available until expended.

7 CONTRIBUTION TO THE INTER-AMERICAN DEVELOPMENT

8 BANK

9 For payment to the Inter-American Development Bank

10 by the Secretary of the Treasury, for the United States

11 share of the paid-in share portion of the increase in capital

12 stock, $25,610,667, and for the United States share of the

13 increase in the resources of the Fund for Special Oper14 ations, $10,000,000, to remain available until expended.

15 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

16 The United States Governor of the Inter-American De17 velopment Bank may subscribe without fiscal year limita18 tion to the callable capital portion of the United States

19 share of such capital stock in an amount not to exceed

20 $1,503,718,910.

21 CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS

22 MULTILATERAL INVESTMENT FUND

23 For payment to the Enterprise for the Americas Multi24 lateral Investment Fund by the Secretary of the Treasury,

25 for the United States contribution to the Fund to be admin-
139

HR 3540 PP

1 istered by the Inter-American Development Bank,

2 $27,500,000 to remain available until expended.

3 CONTRIBUTION TO THE ASIAN DEVELOPMENT BANK

4 For payment to the Asian Development Bank by the

5 Secretary of the Treasury for the United States share of

6 the paid-in portion of the increase in capital stock,

7 $13,221,596, to remain available until expended.

8 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

9 The United States Governor of the Asian Development

10 Bank may subscribe without fiscal year limitation to the

11 callable capital portion of the United States share of such

12 capital stock in an amount not to exceed $647,858,204.

13 CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND

14 For the United States contribution by the Secretary

15 of the Treasury to the increases in resources of the Asian

16 Development Fund, as authorized by the Asian Develop17 ment Bank Act, as amended (Public Law 89–369),

18 $100,000,000, to remain available until expended.

19 CONTRIBUTION TO THE EUROPEAN BANK FOR

20 RECONSTRUCTION AND DEVELOPMENT

21 For payment to the European Bank for Reconstruction

22 and Development by the Secretary of the Treasury,

23 $11,916,447, for the United States share of the paid-in

24 share portion of the initial capital subscription, to remain

25 available until expended.
140

HR 3540 PP

1 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

2 The United States Governor of the European Bank for

3 Reconstruction and Development may subscribe without fis4 cal year limitation to the callable capital portion of the

5 United States share of such capital stock in an amount not

6 to exceed $27,805,043.

7 NORTH AMERICAN DEVELOPMENT BANK

8 For payment to the North American Development

9 Bank by the Secretary of the Treasury, for the United

10 States share of the paid-in portion of the capital stock,

11 $56,250,000, to remain available until expended.

12 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

13 The United States Governor of the North American De14 velopment Bank may subscribe without fiscal year limita15 tion to the callable capital portion of the United States

16 share of the capital stock of the North American Develop17 ment Bank in an amount not to exceed $318,750,000.

18 INTERNATIONAL ORGANIZATIONS AND PROGRAMS

19 For necessary expenses to carry out the provisions of

20 section 301 of the Foreign Assistance Act of 1961, and of

21 section 2 of the United Nations Environment Program Par22 ticipation Act of 1973, $270,000,000: Provided, That none

23 of the funds appropriated under this heading shall be made

24 available for the United Nations Fund for Science and

25 Technology: Provided further, That not less than $3,000,000

26 of the funds appropriated under this heading shall be made
141

HR 3540 PP

1 available for the World Food Program: Provided further,

2 That none of the funds appropriated under this heading

3 may be made available to the International Atomic Energy

4 Agency (IAEA): Provided further, That none of the funds

5 appropriated under this heading that are made available

6 to the United Nations Population Fund (UNFPA) shall be

7 made available for activities in the People’s Republic of

8 China: Provided further, That not more than $35,000,000

9 of the funds appropriated under this heading may be made

10 available to the UNFPA: Provided further, That not more

11 than one-half of this amount may be provided to UNFPA

12 before March 1, 1997, and that no later than February 15,

13 1997, the Secretary of State shall submit a report to the

14 Committees on Appropriations indicating the amount

15 UNFPA is budgeting for the People’s Republic of China in

16 1997: Provided further, That any amount UNFPA plans

17 to spend in the People’s Republic of China in 1997 shall

18 be deducted from the amount of funds provided to UNFPA

19 after March 1, 1997 pursuant to the previous provisos: Pro20 vided further, That with respect to any funds appropriated

21 under this heading that are made available to UNFPA,

22 UNFPA shall be required to maintain such funds in a sepa23 rate account and not commingle them with any other funds.
142

HR 3540 PP

1 TITLE V—GENERAL PROVISIONS

2 OBLIGATIONS DURING LAST MONTH OF AVAILABILITY

3 SEC. 501. Except for the appropriations entitled

4 ‘‘International Disaster Assistance’’, and ‘‘United States

5 Emergency Refugee and Migration Assistance Fund’’, not

6 more than 15 per centum of any appropriation item made

7 available by this Act shall be obligated during the last

8 month of availability.

9 PROHIBITION OF BILATERAL FUNDING FOR INTERNATIONAL

10 FINANCIAL INSTITUTIONS

11 SEC. 502. None of the funds contained in title II of

12 this Act may be used to carry out the provisions of section

13 209(d) of the Foreign Assistance Act of 1961.

14 LIMITATION ON RESIDENCE EXPENSES

15 SEC. 503. Of the funds appropriated or made available

16 pursuant to this Act, not to exceed $126,500 shall be for

17 official residence expenses of the Agency for International

18 Development during the current fiscal year: Provided, That

19 appropriate steps shall be taken to assure that, to the maxi20 mum extent possible, United States-owned foreign cur21 rencies are utilized in lieu of dollars.

22 LIMITATION ON EXPENSES

23 SEC. 504. Of the funds appropriated or made available

24 pursuant to this Act, not to exceed $5,000 shall be for enter25 tainment expenses of the Agency for International Develop26 ment during the current fiscal year.
143

HR 3540 PP

1 LIMITATION ON REPRESENTATIONAL ALLOWANCES

2 SEC. 505. Of the funds appropriated or made available

3 pursuant to this Act, not to exceed $95,000 shall be avail4 able for representation allowances for the Agency for Inter5 national Development during the current fiscal year: Pro6 vided, That appropriate steps shall be taken to assure that,

7 to the maximum extent possible, United States-owned for8 eign currencies are utilized in lieu of dollars: Provided fur9 ther, That of the funds made available by this Act for gen10 eral costs of administering military assistance and sales

11 under the heading ‘‘Foreign Military Financing Program’’,

12 not to exceed $2,000 shall be available for entertainment

13 expenses and not to exceed $50,000 shall be available for

14 representation allowances: Provided further, That of the

15 funds made available by this Act under the heading ‘‘Inter16 national Military Education and Training’’, not to exceed

17 $50,000 shall be available for entertainment allowances:

18 Provided further, That of the funds made available by this

19 Act for the Inter-American Foundation, not to exceed

20 $2,000 shall be available for entertainment and representa21 tion allowances: Provided further, That of the funds made

22 available by this Act for the Peace Corps, not to exceed a

23 total of $4,000 shall be available for entertainment expenses:

24 Provided further, That of the funds made available by this

25 Act under the heading ‘‘Trade and Development Agency’’,
144

HR 3540 PP

1 not to exceed $2,000 shall be available for representation

2 and entertainment allowances.

3 PROHIBITION ON FINANCING NUCLEAR GOODS

4 SEC. 506. None of the funds appropriated or made

5 available (other than funds for ‘‘Nonproliferation, Anti-ter6 rorism, Demining and Related Programs’’) pursuant to this

7 Act, for carrying out the Foreign Assistance Act of 1961,

8 may be used, except for purposes of nuclear safety, to fi9 nance the export of nuclear equipment, fuel, or technology.

10 PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN

11 COUNTRIES

12 SEC. 507. None of the funds appropriated or otherwise

13 made available pursuant to this Act shall be obligated or

14 expended to finance directly any assistance or reparations

15 to Cuba, Iraq, Libya, North Korea, Iran, Serbia, Sudan,

16 or Syria: Provided, That for purposes of this section, the

17 prohibition on obligations or expenditures shall include di18 rect loans, credits, insurance and guarantees of the Export19 Import Bank or its agents.

20 MILITARY COUPS

21 SEC. 508. None of the funds appropriated or otherwise

22 made available pursuant to this Act shall be obligated or

23 expended to finance directly any assistance to any country

24 whose duly elected Head of Government is deposed by mili25 tary coup or decree: Provided, That assistance may be re26 sumed to such country if the President determines and re-
145

HR 3540 PP

1 ports to the Committees on Appropriations that subsequent

2 to the termination of assistance a democratically elected

3 government has taken office.

4 TRANSFERS BETWEEN ACCOUNTS

5 SEC. 509. None of the funds made available by this

6 Act may be obligated under an appropriation account to

7 which they were not appropriated, except for transfers spe8 cifically provided for in this Act, unless the President, prior

9 to the exercise of any authority contained in the Foreign

10 Assistance Act of 1961 to transfer funds, consults with and

11 provides a written policy justification to the Committees

12 on Appropriations of the House of Representatives and the

13 Senate: Provided, That the exercise of such authority shall

14 be subject to the regular notification procedures of the Com15 mittees on Appropriations, except for transfers specifically

16 referred to in this Act.

17 DEOBLIGATION/REOBLIGATION AUTHORITY

18 SEC. 510. (a) Amounts certified pursuant to section

19 1311 of the Supplemental Appropriations Act, 1955, as

20 having been obligated against appropriations heretofore

21 made under the authority of the Foreign Assistance Act of

22 1961 for the same general purpose as any of the headings

23 under title II of this Act are, if deobligated, hereby contin24 ued available for the same period as the respective appro25 priations under such headings or until September 30, 1997,

26 whichever is later, and for the same general purpose, and
146

HR 3540 PP

1 for countries within the same region as originally obligated:

2 Provided, That the Appropriations Committees of both

3 Houses of the Congress are notified fifteen days in advance

4 of the deobligation and reobligation of such funds in accord5 ance with regular notification procedures of the Committees

6 on Appropriations.

7 (b) Obligated balances of funds appropriated to carry

8 out section 23 of the Arms Export Control Act as of the

9 end of the fiscal year immediately preceding the current

10 fiscal year are, if deobligated, hereby continued available

11 during the current fiscal year for the same purpose under

12 any authority applicable to such appropriations under this

13 Act: Provided, That the authority of this subsection may

14 not be used in fiscal year 1997.

15 AVAILABILITY OF FUNDS

16 SEC. 511. No part of any appropriation contained in

17 this Act shall remain available for obligation after the expi18 ration of the current fiscal year unless expressly so provided

19 in this Act: Provided, That funds appropriated for the pur20 poses of chapters 1, 8 and 11 of part I, section 667, and

21 chapter 4 of part II of the Foreign Assistance Act of 1961,

22 as amended, and funds provided under the heading ‘‘Assist23 ance for Eastern Europe and the Baltic States’’, shall re24 main available until expended if such funds are initially

25 obligated before the expiration of their respective periods of

26 availability contained in this Act: Provided further, That,
147

HR 3540 PP

1 notwithstanding any other provision of this Act, any funds

2 made available for the purposes of chapter 1 of part I and

3 chapter 4 of part II of the Foreign Assistance Act of 1961

4 which are allocated or obligated for cash disbursements in

5 order to address balance of payments or economic policy

6 reform objectives, shall remain available until expended:

7 Provided further, That the report required by section 653(a)

8 of the Foreign Assistance Act of 1961 shall designate for

9 each country, to the extent known at the time of submission

10 of such report, those funds allocated for cash disbursement

11 for balance of payment and economic policy reform pur12 poses.

13 LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT

14 SEC. 512. No part of any appropriation contained in

15 this Act shall be used to furnish assistance to any country

16 which is in default during a period in excess of one calendar

17 year in payment to the United States of principal or inter18 est on any loan made to such country by the United States

19 pursuant to a program for which funds are appropriated

20 under this Act: Provided, That this section and section

21 620(q) of the Foreign Assistance Act of 1961 shall not apply

22 to funds made available in this Act or during the current

23 fiscal year for Nicaragua, and for any narcotics-related as24 sistance for Colombia, Bolivia, and Peru authorized by the

25 Foreign Assistance Act of 1961 or the Arms Export Control

26 Act.
148

HR 3540 PP

1 COMMERCE AND TRADE

2 SEC. 513. (a) None of the funds appropriated or made

3 available pursuant to this Act for direct assistance and

4 none of the funds otherwise made available pursuant to this

5 Act to the Export-Import Bank and the Overseas Private

6 Investment Corporation shall be obligated or expended to

7 finance any loan, any assistance or any other financial

8 commitments for establishing or expanding production of

9 any commodity for export by any country other than the

10 United States, if the commodity is likely to be in surplus

11 on world markets at the time the resulting productive ca12 pacity is expected to become operative and if the assistance

13 will cause substantial injury to United States producers of

14 the same, similar, or competing commodity.

15 (b) None of the funds appropriated by this or any other

16 Act to carry out chapter 1 of part I of the Foreign Assist17 ance Act of 1961 shall be available for any testing or breed18 ing feasibility study, variety improvement or introduction,

19 consultancy, publication, conference, or training in connec20 tion with the growth or production in a foreign country

21 of an agricultural commodity for export which would com22 pete with a similar commodity grown or produced in the

23 United States: Provided, That this subsection shall not pro24 hibit—
149

HR 3540 PP

1 (1) activities designed to increase food security

2 in developing countries where such activities will not

3 have a significant impact in the export of agricul4 tural commodities of the United States; or

5 (2) research activities intended primarily to ben6 efit American producers.

7 SURPLUS COMMODITIES

8 SEC. 514. The Secretary of the Treasury shall instruct

9 the United States Executive Directors of the International

10 Bank for Reconstruction and Development, the Inter11 national Development Association, the International Fi12 nance Corporation, the Inter-American Development Bank,

13 the International Monetary Fund, the Asian Development

14 Bank, the Inter-American Investment Corporation, the

15 North American Development Bank, the European Bank for

16 Reconstruction and Development, the African Development

17 Bank, and the African Development Fund to use the voice

18 and vote of the United States to oppose any assistance by

19 these institutions, using funds appropriated or made avail20 able pursuant to this Act, for the production or extraction

21 of any commodity or mineral for export, if it is in surplus

22 on world markets and if the assistance will cause substan23 tial injury to United States producers of the same, similar,

24 or competing commodity.
150

HR 3540 PP

1 NOTIFICATION REQUIREMENTS

2 SEC. 515. For the purposes of providing the Executive

3 Branch with the necessary administrative flexibility, none

4 of the funds made available under this Act for ‘‘Develop5 ment Assistance’’, ‘‘Population, Development Assistance’’,

6 ‘‘International organizations and programs’’, ‘‘Trade and

7 Development Agency’’, ‘‘International narcotics control’’,

8 ‘‘Assistance for Eastern Europe and the Baltic States’’,

9 ‘‘Assistance for the New Independent States of the Former

10 Soviet Union’’, ‘‘Economic Support Fund’’, ‘‘Peacekeeping

11 operations’’, ‘‘Operating expenses of the Agency for Inter12 national Development’’, ‘‘Operating expenses of the Agency

13 for International Development Office of Inspector General’’,

14 ‘‘Nonproliferation, Anti-terrorism, Demining and Related

15 Programs’’, ‘‘Export-Import Bank of the United States’’,

16 ‘‘Foreign Military Financing Program’’, ‘‘International

17 military education and training’’, ‘‘Peace Corps’’, ‘‘Migra18 tion and refugee assistance’’, and for the ‘‘Inter-American

19 Foundation’’ and the ‘‘African Development Foundation’’,

20 shall be available for obligation for activities, programs,

21 projects, type of materiel assistance, countries, or other op22 erations not justified or in excess of the amount justified

23 to the Appropriations Committees for obligation under any

24 of these specific headings unless the Appropriations Com25 mittees of both Houses of Congress are previously notified
151

HR 3540 PP

1 fifteen days in advance: Provided, That the President shall

2 not enter into any commitment of funds appropriated for

3 the purposes of section 23 of the Arms Export Control Act

4 for the provision of major defense equipment, other than

5 conventional ammunition, or other major defense items de6 fined to be aircraft, ships, missiles, or combat vehicles, not

7 previously justified to Congress or 20 per centum in excess

8 of the quantities justified to Congress unless the Committees

9 on Appropriations are notified fifteen days in advance of

10 such commitment: Provided further, That this section shall

11 not apply to any reprogramming for an activity, program,

12 or project under chapter 1 of part I of the Foreign Assist13 ance Act of 1961 of less than 10 per centum of the amount

14 previously justified to the Congress for obligation for such

15 activity, program, or project for the current fiscal year:

16 Provided further, That the requirements of this section or

17 any similar provision of this Act or any other Act, includ18 ing any prior Act requiring notification in accordance with

19 the regular notification procedures of the Committees on

20 Appropriations, may be waived if failure to do so would

21 pose a substantial risk to human health or welfare: Provided

22 further, That in case of any such waiver, notification to

23 the Congress, or the appropriate congressional committees,

24 shall be provided as early as practicable, but in no event

25 later than three days after taking the action to which such
152

HR 3540 PP

1 notification requirement was applicable, in the context of

2 the circumstances necessitating such waiver: Provided fur3 ther, That any notification provided pursuant to such a

4 waiver shall contain an explanation of the emergency cir5 cumstances.

6 Drawdowns made pursuant to section 506(a)(2) of the

7 Foreign Assistance Act of 1961 shall be subject to the regu8 lar notification procedures of the Committees on Appropria9 tions.

10 LIMITATION ON AVAILABILITY OF FUNDS FOR

11 INTERNATIONAL ORGANIZATIONS AND PROGRAMS

12 SEC. 516. Notwithstanding any other provision of law

13 or of this Act, none of the funds provided for ‘‘International

14 Organizations and Programs’’ shall be available for the

15 United States proportionate share, in accordance with sec16 tion 307(c) of the Foreign Assistance Act of 1961, for any

17 programs identified in section 307, or for Libya, Iran, or,

18 at the discretion of the President, Communist countries list19 ed in section 620(f) of the Foreign Assistance Act of 1961,

20 as amended: Provided, That, subject to the regular notifica21 tion procedures of the Committees on Appropriations, funds

22 appropriated under this Act or any previously enacted Act

23 making appropriations for foreign operations, export fi24 nancing, and related programs, which are returned or not

25 made available for organizations and programs because of

26 the implementation of this section or any similar provision
153

HR 3540 PP

1 of law, shall remain available for obligation through Sep2 tember 30, 1997.

3 ECONOMIC SUPPORT FUND ASSISTANCE FOR ISRAEL

4 SEC. 517. The Congress finds that progress on the

5 peace process in the Middle East is vitally important to

6 United States security interests in the region. The Congress

7 recognizes that, in fulfilling its obligations under the Treaty

8 of Peace Between the Arab Republic of Egypt and the State

9 of Israel, done at Washington on March 26, 1979, Israel

10 incurred severe economic burdens. Furthermore, the Con11 gress recognizes that an economically and militarily secure

12 Israel serves the security interests of the United States, for

13 a secure Israel is an Israel which has the incentive and

14 confidence to continue pursuing the peace process. There15 fore, the Congress declares that, subject to the availability

16 of appropriations, it is the policy and the intention of the

17 United States that the funds provided in annual appropria18 tions for the Economic Support Fund which are allocated

19 to Israel shall not be less than the annual debt repayment

20 (interest and principal) from Israel to the United States

21 Government in recognition that such a principle serves

22 United States interests in the region.

23 PROHIBITION ON FUNDING FOR ABORTIONS AND

24 INVOLUNTARY STERILIZATION

25 SEC. 518. None of the funds made available to carry

26 out part I of the Foreign Assistance Act of 1961, as amend-
154

HR 3540 PP

1 ed, may be used to pay for the performance of abortions

2 as a method of family planning or to motivate or coerce

3 any person to practice abortions. None of the funds made

4 available to carry out part I of the Foreign Assistance Act

5 of 1961, as amended, may be used to pay for the perform6 ance of involuntary sterilization as a method of family

7 planning or to coerce or provide any financial incentive

8 to any person to undergo sterilizations. None of the funds

9 made available to carry out part I of the Foreign Assistance

10 Act of 1961, as amended, may be used to pay for any bio11 medical research which relates in whole or in part, to meth12 ods of, or the performance of, abortions or involuntary steri13 lization as a means of family planning. None of the funds

14 made available to carry out part I of the Foreign Assistance

15 Act of 1961, as amended, may be obligated or expended for

16 any country or organization if the President certifies that

17 the use of these funds by any such country or organization

18 would violate any of the above provisions related to abor19 tions and involuntary sterilizations: Provided, That none

20 of the funds made available under this Act may be used

21 to lobby for or against abortion.

22 POPULATION PLANNING ASSISTANCE LIMITATIONS

23 SEC. 519. (a) PROHIBITION ON ABORTION FUNDING.—

24 None of the funds made available under this Act may be

25 used to pay for the performance of abortion as a method
155

HR 3540 PP

1 of family planning, or to coerce or motivate any person to

2 practice abortions.

3 (b) PROHIBITION ON ABORTION LOBBYING.—None of

4 the funds made available under this Act may be used to

5 lobby for or against abortion.

6 (c) ELIGIBILITY.—In determining eligibility for assist7 ance from funds appropriated to carry out section 104 of

8 the Foreign Assistance Act of 1961, nongovernmental and

9 multilateral organizations shall not be subjected to require10 ments more restrictive than the requirements applicable to

11 foreign governments for such assistance.

12 REPORTING REQUIREMENT

13 SEC. 520. The President shall submit to the Commit14 tees on Appropriations the reports required by section

15 25(a)(1) of the Arms Export Control Act.

16 SPECIAL NOTIFICATION REQUIREMENTS

17 SEC. 521. None of the funds appropriated in this Act

18 shall be obligated or expended for Colombia, Guatemala,

19 Haiti, Liberia, Pakistan, Sudan, or Zaire except as pro20 vided through the regular notification procedures of the

21 Committees on Appropriations.

22 DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

23 SEC. 522. For the purpose of this Act, ‘‘program,

24 project, and activity’’ shall be defined at the Appropriations

25 Act account level and shall include all Appropriations and

26 Authorizations Acts earmarks, ceilings, and limitations
156

HR 3540 PP

1 with the exception that for the following accounts: Economic

2 Support Fund and Foreign Military Financing Program,

3 ‘‘program, project, and activity’’ shall also be considered

4 to include country, regional, and central program level

5 funding within each such account; for the development as6 sistance accounts of the Agency for International Develop7 ment ‘‘program, project, and activity’’ shall also be consid8 ered to include central program level funding, either as (1)

9 justified to the Congress, or (2) allocated by the executive

10 branch in accordance with a report, to be provided to the

11 Committees on Appropriations within thirty days of enact12 ment of this Act, as required by section 653(a) of the For13 eign Assistance Act of 1961.

14 CHILD SURVIVAL AND AIDS ACTIVITIES

15 SEC. 523. Up to $8,000,000 of the funds made avail16 able by this Act for assistance for family planning, health,

17 child survival, and AIDS, may be used to reimburse United

18 States Government agencies, agencies of State governments,

19 institutions of higher learning, and private and voluntary

20 organizations for the full cost of individuals (including for

21 the personal services of such individuals) detailed or as22 signed to, or contracted by, as the case may be, the Agency

23 for International Development for the purpose of carrying

24 out family planning activities, child survival activities and

25 activities relating to research on, and the treatment and

26 control of, acquired immune deficiency syndrome in devel-
157

HR 3540 PP

1 oping countries: Provided, That funds appropriated by this

2 Act that are made available for child survival activities or

3 activities relating to research on, and the treatment and

4 control of, acquired immune deficiency syndrome may be

5 made available notwithstanding any provision of law that

6 restricts assistance to foreign countries: Provided further,

7 That funds appropriated by this Act that are made avail8 able for family planning activities may be made available

9 notwithstanding section 512 of this Act and section 620(q)

10 of the Foreign Assistance Act of 1961.

11 PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN

12 COUNTRIES

13 SEC. 524. None of the funds appropriated or otherwise

14 made available pursuant to this Act shall be obligated to

15 finance indirectly any assistance or reparations to Cuba,

16 Iraq, Libya, Iran, Syria, North Korea, or the People’s Re17 public of China, unless the President of the United States

18 certifies that the withholding of these funds is contrary to

19 the national interest of the United States.

20 RECIPROCAL LEASING

21 SEC. 525. Section 61(a) of the Arms Export Control

22 Act is amended by striking out ‘‘1996’’ and inserting in

23 lieu thereof ‘‘1997’’.

24 NOTIFICATION ON EXCESS DEFENSE EQUIPMENT

25 SEC. 526. Prior to providing excess Department of De26 fense articles in accordance with section 516(a) of the For-
158

HR 3540 PP

1 eign Assistance Act of 1961, the Department of Defense shall

2 notify the Committees on Appropriations to the same extent

3 and under the same conditions as are other committees pur4 suant to subsection (c) of that section: Provided, That before

5 issuing a letter of offer to sell excess defense articles under

6 the Arms Export Control Act, the Department of Defense

7 shall notify the Committees on Appropriations in accord8 ance with the regular notification procedures of such Com9 mittees: Provided further, That such Committees shall also

10 be informed of the original acquisition cost of such defense

11 articles.

12 AUTHORIZATION REQUIREMENT

13 SEC. 527. Funds appropriated by this Act may be obli14 gated and expended notwithstanding section 10 of Public

15 Law 91–672 and section 15 of the State Department Basic

16 Authorities Act of 1956.

17 PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST

18 COUNTRIES

19 SEC. 528. (a) Notwithstanding any other provision of

20 law, funds appropriated for bilateral assistance under any

21 heading of this Act and funds appropriated under any such

22 heading in a provision of law enacted prior to enactment

23 of this Act, shall not be made available to any country

24 which the President determines—
159

HR 3540 PP

1 (1) grants sanctuary from prosecution to any in2 dividual or group which has committed an act of

3 international terrorism, or

4 (2) otherwise supports international terrorism.

5 (b) The President may waive the application of sub6 section (a) to a country if the President determines that

7 national security or humanitarian reasons justify such

8 waiver. The President shall publish each waiver in the Fed9 eral Register and, at least fifteen days before the waiver

10 takes effect, shall notify the Committees on Appropriations

11 of the waiver (including the justification for the waiver)

12 in accordance with the regular notification procedures of

13 the Committees on Appropriations.

14 COMMERCIAL LEASING OF DEFENSE ARTICLES

15 SEC. 529. Notwithstanding any other provision of law,

16 and subject to the regular notification procedures of the

17 Committees on Appropriations, the authority of section

18 23(a) of the Arms Export Control Act may be used to pro19 vide financing to Israel, Egypt and NATO and major non20 NATO allies for the procurement by leasing (including leas21 ing with an option to purchase) of defense articles from

22 United States commercial suppliers, not including Major

23 Defense Equipment (other than helicopters and other types

24 of aircraft having possible civilian application), if the

25 President determines that there are compelling foreign pol26 icy or national security reasons for those defense articles
160

HR 3540 PP

1 being provided by commercial lease rather than by govern2 ment-to-government sale under such Act.

3 COMPETITIVE INSURANCE

4 SEC. 530. All Agency for International Development

5 contracts and solicitations, and subcontracts entered into

6 under such contracts, shall include a clause requiring that

7 United States insurance companies have a fair opportunity

8 to bid for insurance when such insurance is necessary or

9 appropriate.

10 STINGERS IN THE PERSIAN GULF REGION

11 SEC. 531. Except as provided in section 581 of the For12 eign Operations, Export Financing, and Related Programs

13 Appropriations Act, 1990, the United States may not sell

14 or otherwise make available any Stingers to any country

15 bordering the Persian Gulf under the Arms Export Control

16 Act or chapter 2 of part II of the Foreign Assistance Act

17 of 1961.

18 DEBT-FOR-DEVELOPMENT

19 SEC. 532. In order to enhance the continued participa20 tion of nongovernmental organizations in economic assist21 ance activities under the Foreign Assistance Act of 1961,

22 including endowments, debt-for-development and debt-for23 nature exchanges, a nongovernmental organization which

24 is a grantee or contractor of the Agency for International

25 Development may place in interest bearing accounts funds

26 made available under this Act or prior Acts or local cur-
161

HR 3540 PP

1 rencies which accrue to that organization as a result of eco2 nomic assistance provided under title II of this Act and

3 any interest earned on such investment may be used for

4 the purpose for which the assistance was provided to that

5 organization.

6 COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES

7 SEC. 533. Direct costs associated with meeting a for8 eign customer’s additional or unique requirements will con9 tinue to be allowable under contracts under section 22(d)

10 of the Arms Export Control Act. Loadings applicable to

11 such direct costs shall be permitted at the same rates appli12 cable to procurement of like items purchased by the Depart13 ment of Defense for its own use.

14 SEPARATE ACCOUNTS

15 SEC. 534. (a) SEPARATE ACCOUNTS FOR LOCAL CUR16 RENCIES.—(1) If assistance is furnished to the government

17 of a foreign country under chapters 1 and 10 of part I or

18 chapter 4 of part II of the Foreign Assistance Act of 1961

19 under agreements which result in the generation of local

20 currencies of that country, the Administrator of the Agency

21 for International Development shall—

22 (A) require that local currencies be deposited in

23 a separate account established by that government;

24 (B) enter into an agreement with that govern25 ment which sets forth—
162

HR 3540 PP

1 (i) the amount of the local currencies to be

2 generated, and

3 (ii) the terms and conditions under which

4 the currencies so deposited may be utilized, con5 sistent with this section; and

6 (C) establish by agreement with that government

7 the responsibilities of the Agency for International

8 Development and that government to monitor and ac9 count for deposits into and disbursements from the

10 separate account.

11 (2) USES OF LOCAL CURRENCIES.—As may be agreed

12 upon with the foreign government, local currencies depos13 ited in a separate account pursuant to subsection (a), or

14 an equivalent amount of local currencies, shall be used

15 only—

16 (A) to carry out chapters 1 or 10 of part I or

17 chapter 4 of part II (as the case may be), for such

18 purposes as—

19 (i) project and sector assistance activities,

20 or

21 (ii) debt and deficit financing; or

22 (B) for the administrative requirements of the

23 United States Government.

24 (3) PROGRAMMING ACCOUNTABILITY.—The Agency for

25 International Development shall take all appropriate steps
163

HR 3540 PP

1 to ensure that the equivalent of the local currencies dis2 bursed pursuant to subsection (a)(2)(A) from the separate

3 account established pursuant to subsection (a)(1) are used

4 for the purposes agreed upon pursuant to subsection (a)(2).

5 (4) TERMINATION OF ASSISTANCE PROGRAMS.—Upon

6 termination of assistance to a country under chapters 1 or

7 10 of part I or chapter 4 of part II (as the case may be),

8 any unencumbered balances of funds which remain in a

9 separate account established pursuant to subsection (a)

10 shall be disposed of for such purposes as may be agreed to

11 by the government of that country and the United States

12 Government.

13 (5) CONFORMING AMENDMENTS.—The provisions of

14 this subsection shall supersede the tenth and eleventh provi15 sos contained under the heading ‘‘Sub-Saharan Africa, De16 velopment Assistance’’ as included in the Foreign Oper17 ations, Export Financing, and Related Programs Appro18 priations Act, 1989 and sections 531(d) and 609 of the For19 eign Assistance Act of 1961.

20 (b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—(1)

21 If assistance is made available to the government of a for22 eign country, under chapters 1 or 10 of part I or chapter

23 4 of part II of the Foreign Assistance Act of 1961, as cash

24 transfer assistance or as nonproject sector assistance, that
164

HR 3540 PP

1 country shall be required to maintain such funds in a sepa2 rate account and not commingle them with any other funds.

3 (2) APPLICABILITY OF OTHER PROVISIONS OF LAW.—

4 Such funds may be obligated and expended notwithstanding

5 provisions of law which are inconsistent with the nature

6 of this assistance including provisions which are referenced

7 in the Joint Explanatory Statement of the Committee of

8 Conference accompanying House Joint Resolution 648 (H.

9 Report No. 98–1159).

10 (3) NOTIFICATION.—At least fifteen days prior to obli11 gating any such cash transfer or nonproject sector assist12 ance, the President shall submit a notification through the

13 regular notification procedures of the Committees on Appro14 priations, which shall include a detailed description of how

15 the funds proposed to be made available will be used, with

16 a discussion of the United States interests that will be

17 served by the assistance (including, as appropriate, a de18 scription of the economic policy reforms that will be pro19 moted by such assistance).

20 (4) EXEMPTION.—Nonproject sector assistance funds

21 may be exempt from the requirements of subsection (b)(1)

22 only through the notification procedures of the Committees

23 on Appropriations.
165

HR 3540 PP

1 COMPENSATION FOR UNITED STATES EXECUTIVE

2 DIRECTORS TO INTERNATIONAL FINANCIAL INSTITUTIONS

3 SEC. 535. (a) No funds appropriated by this Act may

4 be made as payment to any international financial institu5 tion while the United States Executive Director to such in6 stitution is compensated by the institution at a rate which,

7 together with whatever compensation such Director receives

8 from the United States, is in excess of the rate provided

9 for an individual occupying a position at level IV of the

10 Executive Schedule under section 5315 of title 5, United

11 States Code, or while any alternate United States Director

12 to such institution is compensated by the institution at a

13 rate in excess of the rate provided for an individual occupy14 ing a position at level V of the Executive Schedule under

15 section 5316 of title 5, United States Code.

16 (b) For purposes of this section, ‘‘international finan17 cial institutions’’ are: the International Bank for Recon18 struction and Development, the Inter-American Develop19 ment Bank, the Asian Development Bank, the Asian Devel20 opment Fund, the African Development Bank, the African

21 Development Fund, the International Monetary Fund, the

22 North American Development Bank, and the European

23 Bank for Reconstruction and Development.
166

HR 3540 PP

1 COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST

2 IRAQ

3 SEC. 536. (a) DENIAL OF ASSISTANCE.—None of the

4 funds appropriated or otherwise made available pursuant

5 to this Act to carry out the Foreign Assistance Act of 1961

6 (including title IV of chapter 2 of part I, relating to the

7 Overseas Private Investment Corporation) or the Arms Ex8 port Control Act may be used to provide assistance to any

9 country that is not in compliance with the United Nations

10 Security Council sanctions against Iraq, Serbia or

11 Montenegro unless the President determines and so certifies

12 to the Congress that—

13 (1) such assistance is in the national interest of

14 the United States;

15 (2) such assistance will directly benefit the needy

16 people in that country; or

17 (3) the assistance to be provided will be humani18 tarian assistance for foreign nationals who have fled

19 Iraq and Kuwait.

20 (b) IMPORT SANCTIONS.—If the President considers

21 that the taking of such action would promote the effective22 ness of the economic sanctions of the United Nations and

23 the United States imposed with respect to Iraq, Serbia, or

24 Montenegro, as the case may be, and is consistent with the

25 national interest, the President may prohibit, for such a
167

HR 3540 PP

1 period of time as he considers appropriate, the importation

2 into the United States of any or all products of any foreign

3 country that has not prohibited—

4 (1) the importation of products of Iraq, Serbia,

5 or Montenegro into its customs territory, and

6 (2) the export of its products to Iraq, Serbia, or

7 Montenegro, as the case may be.

8 POW/MIA MILITARY DRAWDOWN

9 SEC. 537. (a) Notwithstanding any other provision of

10 law, the President may direct the drawdown, without reim11 bursement by the recipient, of defense articles from the

12 stocks of the Department of Defense, defense services of the

13 Department of Defense, and military education and train14 ing, of an aggregate value not to exceed $15,000,000 in fis15 cal year 1997, as may be necessary to carry out subsection

16 (b).

17 (b) Such defense articles, services and training may

18 be provided to Vietnam, Cambodia and Laos, under sub19 section (a) as the President determines are necessary to sup20 port efforts to locate and repatriate members of the United

21 States Armed Forces and civilians employed directly or in22 directly by the United States Government who remain un23 accounted for from the Vietnam War, and to ensure the safe24 ty of United States Government personnel engaged in such

25 cooperative efforts and to support United States Depart26 ment of Defense-sponsored humanitarian projects associated
168

HR 3540 PP

1 with the POW/MIA efforts. Any aircraft shall be provided

2 under this section only to Laos and only on a lease or loan

3 basis, but may be provided at no cost notwithstanding sec4 tion 61 of the Arms Export Control Act and may be main5 tained with defense articles, services and training provided

6 under this section.

7 (c) The President shall, within sixty days of the end

8 of any fiscal year in which the authority of subsection (a)

9 is exercised, submit a report to the Congress which identifies

10 the articles, services, and training drawn down under this

11 section.

12 MEDITERRANEAN EXCESS DEFENSE ARTICLES

13 SEC. 538. For the four year period beginning on Octo14 ber 1, 1996, the President shall ensure that excess defense

15 articles will be made available under section 516 and 519

16 of the Foreign Assistance Act of 1961 consistent with the

17 manner in which the President made available excess de18 fense articles under those sections during the four year pe19 riod that began on October 1, 1992, pursuant to section

20 573(e) of the Foreign Operations, Export Financing, Relat21 ed Programs Appropriations Act, 1990.

22 CASH FLOW FINANCING

23 SEC. 539. For each country that has been approved

24 for cash flow financing (as defined in section 25(d) of the

25 Arms Export Control Act, as added by section 112(b) of

26 Public Law 99–83) under the Foreign Military Financing
169

HR 3540 PP

1 Program, any Letter of Offer and Acceptance or other pur2 chase agreement, or any amendment thereto, for a procure3 ment in excess of $100,000,000 that is to be financed in

4 whole or in part with funds made available under this Act

5 shall be submitted through the regular notification proce6 dures to the Committees on Appropriations.

7 AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMER8 ICAN FOUNDATION AND THE AFRICAN DEVELOPMENT

9 FOUNDATION

10 SEC. 540. Unless expressly provided to the contrary,

11 provisions of this or any other Act, including provisions

12 contained in prior Acts authorizing or making appropria13 tions for foreign operations, export financing, and related

14 programs, shall not be construed to prohibit activities au15 thorized by or conducted under the Peace Corps Act, the

16 Inter-American Foundation Act, or the African Develop17 ment Foundation Act. The appropriate agency shall

18 promptly report to the Committees on Appropriations

19 whenever it is conducting activities or is proposing to con20 duct activities in a country for which assistance is prohib21 ited.

22 IMPACT ON JOBS IN THE UNITED STATES

23 SEC. 541. None of the funds appropriated by this Act

24 may be obligated or expended to provide—

25 (a) any financial incentive to a business enter26 prise currently located in the United States for the
170

HR 3540 PP

1 purpose of inducing such an enterprise to relocate

2 outside the United States if such incentive or induce3 ment is likely to reduce the number of employees of

4 such business enterprise in the United States because

5 United States production is being replaced by such

6 enterprise outside the United States;

7 (b) assistance for the purpose of establishing or

8 developing in a foreign country any export processing

9 zone or designated area in which the tax, tariff, labor,

10 environment, and safety laws of that country do not

11 apply, in part or in whole, to activities carried out

12 within that zone or area, unless the President deter13 mines and certifies that such assistance is not likely

14 to cause a loss of jobs within the United States; or

15 (c) assistance for any project or activity that

16 contributes to the violation of internationally recog17 nized workers rights, as defined in section 502(a)(4)

18 of the Trade Act of 1974, of workers in the recipient

19 country, including any designated zone or area in

20 that country: Provided, That in recognition that the

21 application of this subsection should be commensurate

22 with the level of development of the recipient country

23 and sector, the provisions of this subsection shall not

24 preclude assistance for the informal sector in such
171

HR 3540 PP

1 country, micro and small-scale enterprise, and

2 smallholder agriculture.

3 AUTHORITY TO ASSIST BOSNIA AND HERZEGOVINA

4 SEC. 542. (a) The President is authorized to direct the

5 transfer, subject to prior notification of the Committees on

6 Appropriations, to the government of Bosnia and

7 Herzegovina, without reimbursement, of defense articles

8 from the stocks of the Department of Defense and defense

9 services of the Department of Defense of an aggregate value

10 of not to exceed $100,000,000 in fiscal years 1996 and 1997:

11 Provided, That the President certifies in a timely fashion

12 to the Congress that the transfer of such articles would assist

13 that nation in self-defense and thereby promote the security

14 and stability of the region.

15 (b) Within 60 days of any transfer under the authority

16 provided in subsection (a), and every 60 days thereafter,

17 the President shall report in writing to the Speaker of the

18 House of Representatives and the President pro tempore of

19 the Senate concerning the articles transferred and the dis20 position thereof.

21 (c) There are authorized to be appropriated to the

22 President such sums as may be necessary to reimburse the

23 applicable appropriation, fund, or account for defense arti24 cles provided under this section.
172

HR 3540 PP

1 RESTRICTIONS ON THE TERMINATION OF SANCTIONS

2 AGAINST SERBIA AND MONTENEGRO

3 SEC. 543. (a) RESTRICTIONS.—Notwithstanding any

4 other provision of law, no sanction, prohibition, or require5 ment described in section 1511 of the National Defense Au6 thorization Act for Fiscal Year 1994 (Public Law 103–160),

7 with respect to Serbia or Montenegro, may cease to be effec8 tive, unless—

9 (1) the President first submits to the Congress a

10 certification described in subsection (b); and

11 (2) the requirements of section 1511 of that Act

12 are met.

13 (b) CERTIFICATION.—A certification described in this

14 subsection is a certification that—

15 (1) there is substantial progress toward—

16 (A) the realization of a separate identity for

17 Kosova and the right of the people of Kosova to

18 govern themselves; or

19 (B) the creation of an international protec20 torate for Kosova;

21 (2) there is substantial improvement in the

22 human rights situation in Kosova;

23 (3) international human rights observers are al24 lowed to return to Kosova; and
173

HR 3540 PP

1 (4) the elected government of Kosova is permitted

2 to meet and carry out its legitimate mandate as elect3 ed representatives of the people of Kosova.

4 (c) WAIVER AUTHORITY.—The President may waive

5 the application in whole or in part, of subsection (a) if the

6 President certifies to the Congress that the President has

7 determined that the waiver is necessary to meet emergency

8 humanitarian needs or to achieve a negotiated settlement

9 of the conflict in Bosnia-Herzegovina that is acceptable to

10 the parties.

11 SPECIAL AUTHORITIES

12 SEC. 544. (a) Funds appropriated in title II of this

13 Act that are made available for Afghanistan, Lebanon, and

14 Cambodia, and for victims of war, displaced children, dis15 placed Burmese, humanitarian assistance for Romania,

16 and humanitarian assistance for the peoples of Bosnia and

17 Herzegovina, Croatia, and Kosova, may be made available

18 notwithstanding any other provision of law: Provided, That

19 any such funds that are made available for Cambodia shall

20 be subject to the provisions of section 531(e) of the Foreign

21 Assistance Act of 1961 and section 906 of the International

22 Security and Development Cooperation Act of 1985: Pro23 vided further, That none of the funds appropriated by this

24 Act may be made available, and funds previously obligated

25 may not be expended, for assistance for any country or or-
174

HR 3540 PP

1 ganization that the Secretary of State determines is cooper2 ating, tactically or strategically, with the Khmer Rouge in

3 their military operations, or to the military of any country

4 that is not acting vigorously to prevent its members from

5 facilitating the export of timber from Cambodia by the

6 Khmer Rouge: Provided further, That the Secretary of State

7 shall submit reports to the Committees on Appropriations

8 on February 15, 1997 and September 15, 1997, on whether

9 there are any countries, organizations, or militaries for

10 which assistance is prohibited under the previous proviso,

11 the basis for such conclusions and, if appropriate, the steps

12 being taken to terminate assistance.

13 (b) Funds appropriated by this Act to carry out the

14 provisions of sections 103 through 106 of the Foreign Assist15 ance Act of 1961 may be used, notwithstanding any other

16 provision of law, for the purpose of supporting tropical for17 estry and energy programs aimed at reducing emissions of

18 greenhouse gases, and for the purpose of supporting bio19 diversity conservation activities: Provided, That such as20 sistance shall be subject to sections 116, 502B, and 620A

21 of the Foreign Assistance Act of 1961.

22 (c) During fiscal year 1997, the President may use up

23 to $40,000,000 under the authority of section 451 of the

24 Foreign Assistance Act of 1961, notwithstanding the fund25 ing ceiling contained in subsection (a) of that section.
175

HR 3540 PP

1 (d) The Agency for International Development may

2 employ personal services contractors, notwithstanding any

3 other provision of law, for the purpose of administering pro4 grams for the West Bank and Gaza.

5 POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT OF

6 ISRAEL

7 SEC. 545. It is the sense of the Congress that—

8 (1) the Arab League countries should imme9 diately and publicly renounce the primary boycott of

10 Israel and the secondary and tertiary boycott of

11 American firms that have commercial ties with Israel;

12 and

13 (2) the President should—

14 (A) take more concrete steps to encourage

15 vigorously Arab League countries to renounce

16 publicly the primary boycotts of Israel and the

17 secondary and tertiary boycotts of American

18 firms that have commercial relations with Israel

19 as a confidence-building measure;

20 (B) take into consideration the participa21 tion of any recipient country in the primary

22 boycott of Israel and the secondary and tertiary

23 boycotts of American firms that have commercial

24 relations with Israel when determining whether

25 to sell weapons to said country;
176

HR 3540 PP

1 (C) report to Congress on the specific steps

2 being taken by the President to bring about a

3 public renunciation of the Arab primary boycott

4 of Israel and the secondary and tertiary boycotts

5 of American firms that have commercial rela6 tions with Israel; and

7 (D) encourage the allies and trading part8 ners of the United States to enact laws prohibit9 ing businesses from complying with the boycott

10 and penalizing businesses that do comply.

11 ANTI-NARCOTICS ACTIVITIES

12 SEC. 546. (a) Of the funds appropriated or otherwise

13 made available by this Act for ‘‘Economic Support Fund’’,

14 assistance may be provided to strengthen the administra15 tion of justice in countries in Latin America and the Carib16 bean in accordance with the provisions of section 534 of

17 the Foreign Assistance Act of 1961, except that programs

18 to enhance protection of participants in judicial cases may

19 be conducted notwithstanding section 660 of that Act.

20 (b) Funds made available pursuant to this section may

21 be made available notwithstanding the third sentence of sec22 tion 534(e) of the Foreign Assistance Act of 1961. Funds

23 made available pursuant to subsection (a) for Bolivia, Co24 lombia and Peru may be made available notwithstanding

25 section 534(c) and the second sentence of section 534(e) of

26 the Foreign Assistance Act of 1961.
177

HR 3540 PP

1 ELIGIBILITY FOR ASSISTANCE

2 SEC. 547. (a) ASSISTANCE THROUGH NONGOVERN3 MENTAL ORGANIZATIONS.—Restrictions contained in this

4 or any other Act with respect to assistance for a country

5 shall not be construed to restrict assistance in support of

6 programs of nongovernmental organizations from funds ap7 propriated by this Act to carry out the provisions of chap8 ters 1 and 10 of part I of the Foreign Assistance Act of

9 1961: Provided, That the President shall take into consider10 ation, in any case in which a restriction on assistance

11 would be applicable but for this subsection, whether assist12 ance in support of programs of nongovernmental organiza13 tions is in the national interest of the United States: Pro14 vided further, That before using the authority of this sub15 section to furnish assistance in support of programs of non16 governmental organizations, the President shall notify the

17 Committees on Appropriations under the regular notifica18 tion procedures of those committees, including a description

19 of the program to be assisted, the assistance to be provided,

20 and the reasons for furnishing such assistance: Provided

21 further, That nothing in this subsection shall be construed

22 to alter any existing statutory prohibitions against abortion

23 or involuntary sterilizations contained in this or any other

24 Act.
178

HR 3540 PP

1 (b) PUBLIC LAW 480.—During fiscal year 1997, re2 strictions contained in this or any other Act with respect

3 to assistance for a country shall not be construed to restrict

4 assistance under the Agricultural Trade Development and

5 Assistance Act of 1954: Provided, That none of the funds

6 appropriated to carry out title I of such Act and made

7 available pursuant to this subsection may be obligated or

8 expended except as provided through the regular notifica9 tion procedures of the Committees on Appropriations.

10 (c) EXCEPTION.—This section shall not apply—

11 (1) with respect to section 620A of the Foreign

12 Assistance Act or any comparable provision of law

13 prohibiting assistance to countries that support inter14 national terrorism; or

15 (2) with respect to section 116 of the Foreign As16 sistance Act of 1961 or any comparable provision of

17 law prohibiting assistance to countries that violate

18 internationally recognized human rights.

19 EARMARKS

20 SEC. 548. (a) Funds appropriated by this Act which

21 are earmarked may be reprogrammed for other programs

22 within the same account notwithstanding the earmark if

23 compliance with the earmark is made impossible by oper24 ation of any provision of this or any other Act or, with

25 respect to a country with which the United States has an

26 agreement providing the United States with base rights or
179

HR 3540 PP

1 base access in that country, if the President determines that

2 the recipient for which funds are earmarked has signifi3 cantly reduced its military or economic cooperation with

4 the United States since enactment of the Foreign Oper5 ations, Export Financing, and Related Programs Appro6 priations Act, 1991; however, before exercising the authority

7 of this subsection with regard to a base rights or base access

8 country which has significantly reduced its military or eco9 nomic cooperation with the United States, the President

10 shall consult with, and shall provide a written policy jus11 tification to the Committees on Appropriations: Provided,

12 That any such reprogramming shall be subject to the regu13 lar notification procedures of the Committees on Appropria14 tions: Provided further, That assistance that is repro15 grammed pursuant to this subsection shall be made avail16 able under the same terms and conditions as originally pro17 vided.

18 (b) In addition to the authority contained in sub19 section (a), the original period of availability of funds ap20 propriated by this Act and administered by the Agency for

21 International Development that are earmarked for particu22 lar programs or activities by this or any other Act shall

23 be extended for an additional fiscal year if the Adminis24 trator of such agency determines and reports promptly to

25 the Committees on Appropriations that the termination of
180

HR 3540 PP

1 assistance to a country or a significant change in cir2 cumstances makes it unlikely that such earmarked funds

3 can be obligated during the original period of availability:

4 Provided, That such earmarked funds that are continued

5 available for an additional fiscal year shall be obligated

6 only for the purpose of such earmark.

7 CEILINGS AND EARMARKS

8 SEC. 549. Ceilings and earmarks contained in this Act

9 shall not be applicable to funds or authorities appropriated

10 or otherwise made available by any subsequent Act unless

11 such Act specifically so directs.

12 EXCESS DEFENSE ARTICLES

13 SEC. 550. (a) During fiscal year 1997, the authority

14 of section 519 of the Foreign Assistance Act of 1961, as

15 amended, may be used to provide nonlethal excess defense

16 articles to countries for which United States foreign assist17 ance has been requested and for which receipt of such arti18 cles was separately justified for the fiscal year, without re19 gard to the restrictions in subsection (a) of section 519.

20 (b) During fiscal year 1997, the authority of section

21 516 of the Foreign Assistance Act of 1961, as amended, may

22 be used to provide defense articles to Jordan, Tunisia, Esto23 nia, Latvia, Lithuania, and to countries eligible to partici24 pate in the Partnership for Peace and to receive assistance

25 under Public Law 101–179: Provided, That not later than

26 May 1, 1997, the Secretary of State shall submit a report
181

HR 3540 PP

1 to the Committees on Appropriations describing actions by

2 the Government of Tunisia during the previous six months

3 to improve respect for civil liberties and promote the inde4 pendence of the judiciary.

5 (c) Section 516(f) of the Foreign Assistance Act of

6 1961, as amended, is repealed.

7 (d) Section 31(d) of the Arms Export Control Act is

8 amended by deleting the words ‘‘or pursuant to sales under

9 this Act’’.

10 PROHIBITION ON PUBLICITY OR PROPAGANDA

11 SEC. 551. No part of any appropriation contained in

12 this Act shall be used for publicity or propaganda purposes

13 within the United States not authorized before the date of

14 enactment of this Act by the Congress: Provided, That not

15 to exceed $750,000 may be made available to carry out the

16 provisions of section 316 of Public Law 96–533.

17 USE OF AMERICAN RESOURCES

18 SEC. 552. To the maximum extent possible, assistance

19 provided under this Act should make full use of American

20 resources, including commodities, products, and services.

21 PROHIBITION OF PAYMENTS TO UNITED NATIONS MEMBERS

22 SEC. 553. None of the funds appropriated or made

23 available pursuant to this Act for carrying out the Foreign

24 Assistance Act of 1961, may be used to pay in whole or

25 in part any assessments, arrearages, or dues of any member

26 of the United Nations.
182

HR 3540 PP

1 CONSULTING SERVICES

2 SEC. 554. The expenditure of any appropriation under

3 this Act for any consulting service through procurement

4 contract, pursuant to section 3109 of title 5, United States

5 Code, shall be limited to those contracts where such expendi6 tures are a matter of public record and available for public

7 inspection, except where otherwise provided under existing

8 law, or under existing Executive order pursuant to existing

9 law.

10 PRIVATE VOLUNTARY ORGANIZATIONS—DOCUMENTATION

11 SEC. 555. None of the funds appropriated or made

12 available pursuant to this Act shall be available to a private

13 voluntary organization which fails to provide upon timely

14 request any document, file, or record necessary to the audit15 ing requirements of the Agency for International Develop16 ment.

17 PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS

18 THAT EXPORT LETHAL MILITARY EQUIPMENT TO

19 COUNTRIES SUPPORTING INTERNATIONAL TERRORISM

20 SEC. 556. (a) None of the funds appropriated or other21 wise made available by this Act may be available to any

22 foreign government which provides lethal military equip23 ment to a country the government of which the Secretary

24 of State has determined is a terrorist government for pur25 poses of section 40(d) of the Arms Export Control Act. The

26 prohibition under this section with respect to a foreign gov-
183

HR 3540 PP

1 ernment shall terminate 12 months after that government

2 ceases to provide such military equipment. This section ap3 plies with respect to lethal military equipment provided

4 under a contract entered into after the date of enactment

5 of this Act.

6 (b) Assistance restricted by subsection (a) or any other

7 similar provision of law, may be furnished if the President

8 determines that furnishing such assistance is important to

9 the national interests of the United States.

10 (c) Whenever the waiver of subsection (b) is exercised,

11 the President shall submit to the appropriate congressional

12 committees a report with respect to the furnishing of such

13 assistance. Any such report shall include a detailed expla14 nation of the assistance to be provided, including the esti15 mated dollar amount of such assistance, and an expla16 nation of how the assistance furthers United States national

17 interests.

18 WITHHOLDING OF ASSISTANCE FOR PARKING FINES OWED

19 BY FOREIGN COUNTRIES

20 SEC. 557. (a) IN GENERAL.—Of the funds made avail21 able for a foreign country under part I of the Foreign As22 sistance Act of 1961, an amount equivalent to 110 percent

23 of the total unpaid fully adjudicated parking fines and pen24 alties owed to the District of Columbia by such country as

25 of the date of enactment of this Act shall be withheld from

26 obligation for such country until the Secretary of State cer-
184

HR 3540 PP

1 tifies and reports in writing to the appropriate congres2 sional committees that such fines and penalties are fully

3 paid to the government of the District of Columbia.

4 (b) DEFINITION.—For purposes of this section, the

5 term ‘‘appropriate congressional committees’’ means the

6 Committee on Foreign Relations and the Committee on Ap7 propriations of the Senate and the Committee on Inter8 national Relations and the Committee on Appropriations

9 of the House of Representatives.

10 LIMITATION ON ASSISTANCE FOR THE PLO FOR THE WEST

11 BANK AND GAZA

12 SEC. 558. None of the funds appropriated by this Act

13 may be obligated for assistance for the Palestine Liberation

14 Organization for the West Bank and Gaza unless the Presi15 dent has exercised the authority under section 604(a) of the

16 Middle East Peace Facilitation Act of 1995 (title VI of Pub17 lic Law 104–107) or any other legislation to suspend or

18 make inapplicable section 307 of the Foreign Assistance Act

19 of 1961 and that suspension is still in effect: Provided, That

20 if the President fails to make the certification under section

21 604(b)(2) of the Middle East Peace Facilitation Act of 1995

22 or to suspend the prohibition under other legislation, funds

23 appropriated by this Act may not be obligated for assistance

24 for the Palestine Liberation Organization for the West Bank

25 and Gaza.
185

HR 3540 PP

1 EXPORT FINANCING TRANSFER AUTHORITIES

2 SEC. 559. Not to exceed 5 percent of any appropriation

3 other than for administrative expenses made available for

4 fiscal year 1997 for programs under title I of this Act may

5 be transferred between such appropriations for use for any

6 of the purposes, programs and activities for which the funds

7 in such receiving account may be used, but no such appro8 priation, except as otherwise specifically provided, shall be

9 increased by more than 25 percent by any such transfer:

10 Provided, That the exercise of such authority shall be subject

11 to the regular notification procedures of the Committees on

12 Appropriations.

13 WAR CRIMES TRIBUNALS

14 SEC. 560. If the President determines that doing so

15 will contribute to a just resolution of charges regarding

16 genocide or other violations of international humanitarian

17 law, the authority of section 552(c) of the Foreign Assist18 ance Act of 1961, as amended, may be used to provide up

19 to $25,000,000 of commodities and services for the United

20 Nations War Crimes Tribunal established with regard to

21 the former Yugoslavia by the United Nations Security

22 Council or such other tribunals or commissions as the Coun23 cil may establish to deal with such violations, without re24 gard to the ceiling limitation contained in paragraph (2)

25 thereof: Provided, That the determination required under

26 this section shall be in lieu of any determinations otherwise
186

HR 3540 PP

1 required under section 552(c): Provided further, That 60

2 days after the date of enactment of this Act, and every 180

3 days thereafter, the Secretary of State shall submit a report

4 to the Committees on Appropriations describing the steps

5 the United States Government is taking to collect informa6 tion and intelligence regarding allegations of genocide or

7 other violations of international law in the former Yugo8 slavia and to furnish that information to the United Na9 tions War Crimes Tribunal for the former Yugoslavia.

10 TRANSPORTATION OF EXCESS DEFENSE ARTICLES

11 SEC. 561. Notwithstanding section 519(f) of the For12 eign Assistance Act of 1961, during fiscal year 1997, funds

13 available to the Department of Defense may be expended

14 for crating, packing, handling and transportation of excess

15 defense articles transferred under the authority of sections

16 516 and 519 to countries eligible to participate in the Part17 nership for Peace and to receive assistance under Public

18 Law 101–179.

19 LANDMINES

20 SEC. 562. Notwithstanding any other provision of law,

21 demining equipment available to any department or agency

22 and used in support of the clearing of landmines and

23 unexploded ordnance for humanitarian purposes may be

24 disposed of on a grant basis in foreign countries, subject

25 to such terms and conditions as the President may pre26 scribe: Provided, That section 1365(c) of the National De-
187

HR 3540 PP

1 fense Authorization Act for Fiscal Year 1993 (Public Law

2 102–484; 22 U.S.C., 2778 note) is amended by striking out

3 ‘‘During the five-year period beginning on October 23,

4 1992’’ and inserting in lieu thereof ‘‘During the eight-year

5 period beginning on October 23, 1992’’.

6 RESTRICTIONS CONCERNING THE PALESTINIAN AUTHORITY

7 SEC. 563. None of the funds appropriated by this Act

8 may be obligated or expended to create in any part of Jeru9 salem a new office of any department or agency of the Unit10 ed States Government for the purpose of conducting official

11 United States Government business with the Palestinian

12 Authority over Gaza and Jericho or any successor Palestin13 ian governing entity provided for in the Israel-PLO Dec14 laration of Principles: Provided, That this restriction shall

15 not apply to the acquisition of additional space for the ex16 isting Consulate General in Jerusalem: Provided further,

17 That meetings between officers and employees of the United

18 States and officials of the Palestinian Authority, or any

19 successor Palestinian governing entity provided for in the

20 Israel-PLO Declaration of Principles, for the purpose of

21 conducting official United States Government business with

22 such authority should continue to take place in locations

23 other than Jerusalem. As has been true in the past, officers

24 and employees of the United States Government may con25 tinue to meet in Jerusalem on other subjects with Palestin26 ians (including those who now occupy positions in the Pal-
188

HR 3540 PP

1 estinian Authority), have social contacts, and have inciden2 tal discussions.

3 PROHIBITION OF PAYMENT OF CERTAIN EXPENSES

4 SEC. 564. None of the funds appropriated or otherwise

5 made available by this Act under the heading ‘‘INTER6 NATIONAL MILITARY EDUCATION AND TRAINING’’ or ‘‘FOR7 EIGN MILITARY FINANCING PROGRAM’’ for Informational

8 Program activities may be obligated or expended to pay

9 for—

10 (1) alcoholic beverages;

11 (2) food (other than food provided at a military

12 installation) not provided in conjunction with Infor13 mational Program trips where students do not stay at

14 a military installation; or

15 (3) entertainment expenses for activities that are

16 substantially of a recreational character, including

17 entrance fees at sporting events and amusement

18 parks.

19 HUMANITARIAN ASSISTANCE

20 SEC. 565. The Foreign Assistance Act of 1961 is

21 amended by adding immediately after section 620H the fol22 lowing new section:

23 ‘‘SEC. 620I. PROHIBITION ON ASSISTANCE TO COUN24 TRIES THAT RESTRICT UNITED STATES HUMANITARIAN

25 ASSISTANCE.—
189

HR 3540 PP

1 ‘‘(a) IN GENERAL.—No assistance shall be fur2 nished under this Act or the Arms Export Control Act

3 to any country when it is made known to the Presi4 dent that the government of such country prohibits or

5 otherwise restricts, directly or indirectly, the trans6 port or delivery of United States humanitarian as7 sistance.

8 ‘‘(b) EXCEPTION.—Assistance may be furnished

9 without regard to the restriction in subsection (a) if

10 the President determines that to do so is in the na11 tional security interest of the United States.’’.

12 PURCHASE OF AMERICAN-MADE EQUIPMENT AND

13 PRODUCTS

14 SEC. 566. (a) SENSE OF CONGRESS.—It is the sense

15 of the Congress that, to the greatest extent practicable, all

16 equipment and products purchased with funds made avail17 able in this Act should be American-made.

18 (b) NOTICE REQUIREMENT.—In providing financial

19 assistance to, or entering into any contract with, any entity

20 using funds made available in this Act, the head of each

21 Federal agency, to the greatest extent practicable, shall pro22 vide to such entity a notice describing the statement made

23 in subsection (a) by the Congress.
190

HR 3540 PP

1 LIMITATION OF FUNDS FOR NORTH AMERICAN

2 DEVELOPMENT BANK

3 SEC. 567. None of the funds appropriated in this Act

4 under the heading ‘‘North American Development Bank’’

5 and made available for the Community Adjustment and In6 vestment Program shall be used for purposes other than

7 those set out in the binational agreement establishing the

8 Bank.

9 POLICY TOWARD BURMA

10 SEC. 568. (a) Until such time as the President deter11 mines and certifies to Congress that Burma has made meas12 urable and substantial progress in improving human rights

13 practices and implementing democratic government, the fol14 lowing sanctions shall be imposed on Burma:

15 (1) BILATERAL ASSISTANCE.—There shall be no

16 United States assistance to the Government of

17 Burma, other than:

18 (A) humanitarian assistance,

19 (B) counter-narcotics assistance under

20 chapter 8 of part I of the Foreign Assistance Act

21 of 1961, or crop substitution assistance, if the

22 Secretary of State certifies to the appropriate

23 congressional committees that—
191

HR 3540 PP

1 (i) the Government of Burma is fully

2 cooperating with United States counter-nar3 cotics efforts, and

4 (ii) the programs are fully consistent

5 with United States human rights concerns

6 in Burma and serve the United States na7 tional interest, and

8 (C) assistance promoting human rights and

9 democratic values.

10 (2) MULTILATERAL ASSISTANCE.—The Secretary

11 of the Treasury shall instruct the United States execu12 tive director of each international financial institu13 tion to vote against any loan or other utilization of

14 funds of the respective bank to or for Burma.

15 (3) VISAS.—Except as required by treaty obliga16 tions or to staff the Burmese mission to the United

17 States, the United States shall not grant entry visas

18 to any Burmese government official.

19 (b) CONDITIONAL SANCTIONS.—The President shall

20 prohibit United States persons from new investment in

21 Burma, if the President determines and certifies to Congress

22 that, after the date of enactment of this Act, the Government

23 of Burma has physically harmed, rearrested for political

24 acts, or exiled Daw Aung San Suu Kyi or has committed
192

HR 3540 PP

1 large-scale repression of or violence against the Democratic

2 opposition.

3 (c) MULTILATERAL STRATEGY.—The President shall

4 seek to develop, in coordination with members of ASEAN

5 and other countries having major trading and investment

6 interests in Burma, a comprehensive, multilateral strategy

7 to bring democracy to and improve human rights practices

8 and the quality of life in Burma, including the development

9 of a dialogue between the State Law and Order Restoration

10 Council (SLORC) and democratic opposition groups within

11 Burma.

12 (d) PRESIDENTIAL REPORTS.—Every six months fol13 lowing the enactment of this Act, the President shall report

14 to the Chairmen of the Committee on Foreign Relations,

15 the Committee on International Relations and the House

16 and Senate Appropriations Committees on the following:

17 (1) progress toward democratization in Burma;

18 (2) progress on improving the quality of life of

19 the Burmese people, including progress on market re20 forms, living standards, labor standards, use of forced

21 labor in the tourism industry, and environmental

22 quality; and

23 (3) progress made in developing the strategy re24 ferred to in subsection (c).
193

HR 3540 PP

1 (e) WAIVER AUTHORITY.—The President shall have the

2 authority to waive, temporarily or permanently, any sanc3 tion referred to in subsection (a) or subsection (b) if he de4 termines and certifies to Congress that the application of

5 such sanction would be contrary to the national security

6 interests of the United States.

7 (f) DEFINITIONS.—

8 (1) The term ‘‘international financial institu9 tions’’ shall include the International Bank for Re10 construction and Development, the International De11 velopment Association, the International Finance

12 Corporation, the Multilateral Investment Guarantee

13 Agency, the Asian Development Bank, and the Inter14 national Monetary Fund.

15 (2) The term ‘‘new investment’’ shall mean any

16 of the following activities if such an activity is under17 taken pursuant to an agreement, or pursuant to the

18 exercise of rights under such an agreement, that is en19 tered into with the Government of Burma or a non20 governmental entity in Burma, on or after the date

21 of the certification under subsection (b):

22 (A) the entry into a contract that includes

23 the economical development of resources located

24 in Burma, or the entry into a contract providing
194

HR 3540 PP

1 for the general supervision and guarantee of an2 other person’s performance of such a contract;

3 (B) the purchase of a share of ownership,

4 including an equity interest, in that develop5 ment;

6 (C) the entry into a contract providing for

7 the participation in royalties, earnings, or prof8 its in that development, without regard to the

9 form of the participation:

10 Provided, That the term ‘‘new investment’’ does not

11 include the entry into, performance of, or financing

12 of a contract to sell or purchase goods, services, or

13 technology.

14 REPORTS ON THE SITUATION IN BURMA

15 SEC. 569. (a) LABOR PRACTICES.—Not later than 90

16 days after the date of the enactment of this Act, the Sec17 retary of Labor, in consultation with the Secretary of State,

18 shall submit a report to the appropriate congressional com19 mittees on—

20 (1) Burma’s compliance with international labor

21 standards including, but not limited to, the use of

22 forced labor, slave labor, and involuntary prison labor

23 by the junta;
195

HR 3540 PP

1 (2) the degree to which foreign investment in

2 Burma contributes to violations of fundamental work3 er rights;

4 (3) labor practices in support of Burma’s foreign

5 tourist industry; and

6 (4) efforts by the United States to end violations

7 of fundamental labor rights in Burma.

8 (b) DEFINITION.—As used in this section, the term

9 ‘‘appropriate congressional committees’’ means the Com10 mittee on Appropriations and the Committee on Foreign

11 Relations of the Senate and the Committee on Appropria12 tions and the Committee on International Relations of the

13 House of Representatives.

14 (c) FUNDING.—(1) There are hereby appropriated, out

15 of any money in the Treasury not otherwise appropriated,

16 for the fiscal year ending September 30, 1997, for expenses

17 necessary to carry out the provisions of this section, $30,000

18 to the Department of Labor.

19 (2) The amount appropriated by this Act under the

20 heading ‘‘DEPARTMENT OF STATE, INTERNATIONAL NAR21 COTICS CONTROL’’ shall be reduced by $30,000.

22 SPECIAL DEBT RELIEF FOR THE POOREST

23 SEC. 570. (a) AUTHORITY TO REDUCE DEBT.—The

24 President may reduce amounts owed to the United States

25 (or any agency of the United States) by an eligible country

26 as a result of—
196

HR 3540 PP

1 (1) guarantees issued under sections 221 and 222

2 of the Foreign Assistance Act of 1961; or

3 (2) credits extended or guarantees issued under

4 the Arms Export Control Act.

5 (b) LIMITATIONS.—

6 (1) The authority provided by subsection (a)

7 may be exercised only to implement multilateral offi8 cial debt relief and referendum agreements, commonly

9 referred to as ‘‘Paris Club Agreed Minutes’’.

10 (2) The authority provided by subsection (a)

11 may be exercised only in such amounts or to such ex12 tent as is provided in advance by appropriations

13 Acts.

14 (3) The authority provided by subsection (a)

15 may be exercised only with respect to countries with

16 heavy debt burdens that are eligible to borrow from

17 the International Development Association, but not

18 from the International Bank for Reconstruction and

19 Development, commonly referred to as ‘‘IDA-only’’

20 countries.

21 (c) CONDITIONS.—The authority provided by sub22 section (a) may be exercised only with respect to a country

23 whose government—

24 (1) does not have an excessive level of military

25 expenditures;
197

HR 3540 PP

1 (2) has not repeatedly provided support for acts

2 of international terrorism;

3 (3) is not failing to cooperate on international

4 narcotics control matters;

5 (4) (including its military or other security

6 forces) does not engage in a consistent pattern of gross

7 violations of internationally recognized human rights;

8 and

9 (5) is not ineligible for assistance because of the

10 application of section 527 of the Foreign Relations

11 Authorization Act, fiscal years 1994 and 1995.

12 (d) AVAILABILITY OF FUNDS.—The authority provided

13 by subsection (a) may be used only with regard to funds

14 appropriated by this Act under the heading ‘‘Debt restruc15 turing’’.

16 (e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduc17 tion of debt pursuant to subsection (a) shall not be consid18 ered assistance for purposes of any provision of law limit19 ing assistance to a country. The authority provided by sub20 section (a) may be exercised notwithstanding section 620(r)

21 of the Foreign Assistance Act of 1961.

22 AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES

23 SEC. 571. (a) LOANS ELIGIBLE FOR SALE, REDUC24 TION, OR CANCELLATION.—

25 (1) AUTHORITY TO SELL, REDUCE, OR CANCEL

26 CERTAIN LOANS.—Notwithstanding any other provi-
198

HR 3540 PP

1 sion of law, the President may, in accordance with

2 this section, sell to any eligible purchaser any

3 concessional loan or portion thereof made before Jan4 uary 1, 1995, pursuant to the Foreign Assistance Act

5 of 1961, to the government of any eligible country as

6 defined in section 702(6) of that Act or on receipt of

7 payment from an eligible purchaser, reduce or cancel

8 such loan or portion thereof, only for the purpose of

9 facilitating—

10 (A) debt-for-equity swaps, debt-for-develop11 ment swaps, or debt-for-nature swaps; or

12 (B) a debt buyback by an eligible country

13 of its own qualified debt, only if the eligible

14 country uses an additional amount of the local

15 currency of the eligible country, equal to not less

16 than 40 percent of the price paid for such debt

17 by such eligible country, or the difference between

18 the price paid for such debt and the face value

19 of such debt, to support activities that link con20 servation and sustainable use of natural re21 sources with local community development, and

22 child survival and other child development, in a

23 manner consistent with sections 707 through 710

24 of the Foreign Assistance Act of 1961, if the sale,

25 reduction, or cancellation would not contravene
199

HR 3540 PP

1 any term or condition of any prior agreement

2 relating to such loan.

3 (2) TERMS AND CONDITIONS.—Notwithstanding

4 any other provision of law, the President shall, in ac5 cordance with this section, establish the terms and

6 conditions under which loans may be sold, reduced, or

7 canceled pursuant to this section.

8 (3) ADMINISTRATION.—The Facility, as defined

9 in section 702(8) of the Foreign Assistance Act of

10 1961, shall notify the administrator of the agency

11 primarily responsible for administering part I of the

12 Foreign Assistance Act of 1961 of purchasers that the

13 President has determined to be eligible, and shall di14 rect such agency to carry out the sale, reduction, or

15 cancellation of a loan pursuant to this section. Such

16 agency shall make an adjustment in its accounts to

17 reflect the sale, reduction, or cancellation.

18 (4) LIMITATION.—The authorities of this sub19 section shall be available only to the extent that ap20 propriations for the cost of the modification, as de21 fined in section 502 of the Congressional Budget Act

22 of 1974, are made in advance.

23 (b) DEPOSIT OF PROCEEDS.—The proceeds from the

24 sale, reduction, or cancellation of any loan sold, reduced,

25 or canceled pursuant to this section shall be deposited in
200

HR 3540 PP

1 the United States Government account or accounts estab2 lished for the repayment of such loan.

3 (c) ELIGIBLE PURCHASERS.—A loan may be sold pur4 suant to subsection (a)(1)(A) only to a purchaser who pre5 sents plans satisfactory to the President for using the loan

6 for the purpose of engaging in debt-for-equity swaps, debt7 for-development swaps, or debt-for-nature swaps.

8 (d) DEBTOR CONSULTATIONS.—Before the sale to any

9 eligible purchaser, or any reduction or cancellation pursu10 ant to this section, of any loan made to an eligible country,

11 the President shall consult with the country concerning the

12 amount of loans to be sold, reduced, or canceled and their

13 uses for debt-for-equity swaps, debt-for-development swaps,

14 or debt-for-nature swaps.

15 (e) AVAILABILITY OF FUNDS.—The authority provided

16 by subsection (a) may be used only with regard to funds

17 appropriated by this Act under the heading ‘‘Debt Restruc18 turing’’.

19 SANCTIONS AGAINST COUNTRIES HARBORING WAR

20 CRIMINALS

21 SEC. 572. (a) BILATERAL ASSISTANCE.—Funds ap22 propriated by this Act under the Foreign Assistance Act of

23 1961 or the Arms Export Control Act may not be provided

24 for any country described in subsection (c).

25 (b) MULTILATERAL ASSISTANCE.—The Secretary of

26 the Treasury shall instruct the United States executive di-
201

HR 3540 PP

1 rectors of the international financial institutions to work

2 in opposition to, and vote against, any extension by such

3 institutions of financing or financial or technical assistance

4 to any country described in subsection (c).

5 (c) SANCTIONED COUNTRIES.—A country described in

6 this subsection is a country the government of which know7 ingly grants sanctuary to persons in its territory for the

8 purpose of evading prosecution, where such persons—

9 (1) have been indicted by the International

10 Criminal Tribunal for the former Yugoslavia, the

11 International Criminal Tribunal for Rwanda, or any

12 other international tribunal with similar standing

13 under international law, or

14 (2) have been indicted for war crimes or crimes

15 against humanity committed during the period begin16 ning March 23, 1933 and ending on May 8, 1945

17 under the direction of, or in association with—

18 (A) the Nazi government of Germany;

19 (B) any government in any area occupied

20 by the military forces of the Nazi government of

21 Germany;

22 (C) any government which was established

23 with the assistance or cooperation of the Nazi

24 government; or
202

HR 3540 PP

1 (D) any government which was an ally of

2 the Nazi government of Germany.

3 LIMITATION ON ASSISTANCE FOR HAITI

4 SEC. 573. (a) None of the funds appropriated or other5 wise made available by this Act, may be provided to the

6 Government of Haiti until the President reports to Congress

7 that—

8 (1) the Government is conducting thorough in9 vestigations of extrajudicial and political killings;

10 and

11 (2) the Government is cooperating with United

12 States authorities in the investigations of political

13 and extrajudicial killings.

14 (b) Nothing in this section shall be construed to restrict

15 the provision of humanitarian, development or electoral as16 sistance.

17 (c) The President may waive the requirements of this

18 section if he determines and certifies to the appropriate

19 committees of Congress that it is in the national interest

20 of the United States or necessary to assure the safe and

21 timely withdrawal of American forces from Haiti.

22 LIMITATION ON FUNDS TO THE TERRITORY OF THE

23 BOSNIAC-CROAT FEDERATION

24 SEC. 574. Funds appropriated by this Act for activi25 ties in the internationally-recognized borders of Bosnia and

26 Herzegovina (other than refugee and disaster assistance and
203

HR 3540 PP

1 assistance for restoration of infrastructure, to include power

2 grids, water supplies and natural gas) may only be made

3 available for activities in the territory of the Bosniac-Croat

4 Federation.

5 UNITED STATES GOVERNMENT PUBLICATIONS

6 SEC. 575. Beginning in fiscal year 1997, all United

7 States Government publications shall refer to the capital

8 of Israel as Jerusalem.

9 EXTENSION OF CERTAIN ADJUDICATION PROVISIONS

10 SEC. 576. The Foreign Operations, Export Financing,

11 and Related Programs Appropriations Act, 1990 (Public

12 Law 101–167) is amended—

13 (1) in section 599D (8 U.S.C. 1157 note)—

14 (A) in subsection (b)(3), by striking ‘‘and

15 1996’’ and inserting ‘‘1996, and 1997’’; and

16 (B) in subsection (e), by striking out ‘‘Octo17 ber 1, 1996’’ each place it appears and inserting

18 ‘‘October 1, 1997’’; and

19 (2) in section 599E (8 U.S.C. 1255 note) in sub20 section (b)(2), by striking out ‘‘September 30, 1996’’

21 and inserting ‘‘September 30, 1997’’.

22 TRANSPARENCY OF BUDGETS

23 SEC. 577. (a) LIMITATION.—Beginning three years

24 after the date of the enactment of this Act, the Secretary

25 of the Treasury shall instruct the United States Executive

26 Director of each international financial institution to use
204

HR 3540 PP

1 the voice and vote of the United States to oppose any loan

2 or other utilization of the funds of their respective institu3 tion, other than to address basic human needs, for the gov4 ernment of any country which the Secretary of the Treasury

5 determines—

6 (1) does not have in place a functioning system

7 for a civilian audit of all receipts and expenditures

8 in the portions of its budget that fund activities of the

9 armed forces and security forces;

10 (2) has not provided a summary of a current

11 audit to the institution; and

12 (3) has not provided to the institution an ac13 counting of the ownership and financial interest in

14 revenue-generating enterprises of the armed forces and

15 security forces.

16 (b) DEFINITION.—For purposes of this section, the

17 term ‘‘international financial institution’’ shall include the

18 institutions identified in section 535(b) of this Act.

19 PROMOTION OF HUMAN RIGHTS

20 SEC. 578. A senior official, or former senior official,

21 of a government that receives funds appropriated by this

22 Act, who applies for a visa to travel to the United States,

23 shall be denied such visa if the Secretary of State has credi24 ble evidence that such official has committed, ordered or at25 tempted to thwart the investigation of a gross violation of

26 an internationally recognized human right: Provided, That
205

HR 3540 PP

1 for purposes of this section ‘‘senior official’’ includes an offi2 cer of the armed forces or security forces: Provided further,

3 That the Secretary of State may waive the restrictions of

4 this section on a case-by-case basis if he determines and

5 reports to the Committees on Appropriations that to do so

6 is important to the national interest of the United States.

7 GUARANTEES

8 SEC. 579. Section 251(b)(2)(G) of the Balanced Budget

9 and Emergency Deficit Control Act of 1985 is amended by

10 striking ‘‘fiscal year 1994 and 1995’’ and inserting in lieu

11 thereof ‘‘fiscal years 1994, 1995, and 1997’’ in both places

12 that this appears.

13 INFORMATION ON COOPERATION WITH UNITED STATES

14 ANTI-TERRORISM EFFORTS IN ANNUAL COUNTRY RE15 PORTS ON TERRORISM

16 SEC. 580. Section 140 of the Foreign Relations Author17 ization Act, fiscal years 1988 and 1989 (22 U.S.C. 2656f)

18 is amended—

19 (1) in subsection (a)—

20 (A) by striking ‘‘and’’ at the end of para21 graph (1);

22 (B) by striking the period at the end of

23 paragraph (2) and inserting a semicolon; and

24 (C) by adding at the end the following:

25 ‘‘(3) with respect to each foreign country from

26 which the United States Government has sought co-
206

HR 3540 PP

1 operation during the previous five years in the inves2 tigation or prosecution of an act of international ter3 rorism against United States citizens or interests, in4 formation on—

5 ‘‘(A) the extent to which the government of

6 the foreign country is cooperating with the Unit7 ed States Government in apprehending, convict8 ing, and punishing the individual or individuals

9 responsible for the act; and

10 ‘‘(B) the extent to which the government of

11 the foreign country is cooperating in preventing

12 further acts of terrorism against United States

13 citizens in the foreign country; and

14 ‘‘(4) with respect to each foreign country from

15 which the United States Government has sought co16 operation during the previous five years in the pre17 vention of an act of international terrorism against

18 such citizens or interests, the information described in

19 paragraph (3)(B).’’; and

20 (2) in subsection (c)—

21 (A) by striking ‘‘The report’’ and inserting

22 ‘‘(1) Except as provided in paragraph (2), the

23 report’’;

24 (B) by indenting the margin of paragraph

25 (1) as so designated, 2 ems; and
207

HR 3540 PP

1 (C) by adding at the end the following:

2 ‘‘(2) If the Secretary of State determines that the

3 transmittal of the information with respect to a for4 eign country under paragraph (3) or (4) of subsection

5 (a) in classified form would make more likely the co6 operation of the government of the foreign country as

7 specified in such paragraph, the Secretary may trans8 mit the information under such paragraph in classi9 fied form.’’.

10 FEMALE GENITAL MUTILATION

11 SEC. 581. (a) LIMITATION.—Beginning 1 year after

12 the date of the enactment of this Act, the Secretary of the

13 Treasury shall instruct the United States Executive Direc14 tor of each international financial institution to use the

15 voice and vote of the United States to oppose any loan or

16 other utilization of the funds of their respective institution,

17 other than to address basic human needs, for the govern18 ment of any country which the Secretary of the Treasury

19 determines—

20 (1) has, as a cultural custom, a known history

21 of the practice of female genital mutilation;

22 (2) has not made the practice of female genital

23 mutilation illegal; and
208

HR 3540 PP

1 (3) has not taken steps to implement educational

2 programs designed to prevent the practice of female

3 genital mutilation.

4 (b) DEFINITION.—For purposes of this section, the

5 term ‘‘international financial institution’’ shall include the

6 institutions identified in section 535(b) of this Act.

7 SENSE OF CONGRESS REGARDING THE UNITED STATES8 JAPAN INSURANCE AGREEMENT

9 SEC. 582. (a) FINDINGS.—The Congress makes the fol10 lowing findings:

11 (1) The United States and Japan share a long

12 and important bilateral relationship which serves as

13 an anchor of peace and stability in the Asia Pacific

14 region, an alliance which was reaffirmed at the recent

15 summit meeting between President Clinton and

16 Prime Minister Hashimoto in Tokyo.

17 (2) The Japanese economy has experienced dif18 ficulty over the past few years, demonstrating that it

19 is no longer possible for Japan, the world’s second

20 largest economy, to use exports as the sole engine of

21 economic growth, but that the Government of Japan

22 must promote deregulation of its domestic economy in

23 order to increase economic growth.
209

HR 3540 PP

1 (3) Japan is the second largest insurance market

2 in the world and the largest life insurance market in

3 the world.

4 (4) The share of foreign insurance in Japan is

5 less than 3 percent, and large Japanese life and non6 life insurers dominate the market.

7 (5) The Government of Japan has had as its

8 stated policy for several years the deregulation and

9 liberalization of the Japan insurance market, and has

10 developed and adopted a new insurance business law

11 as a means of achieving this publicly stated objective

12 of liberalization and deregulation.

13 (6) The Governments of Japan and the United

14 States concluded in October of 1994 the United

15 States-Japan Insurance Agreement, following more

16 than one and one-half years of negotiations, in which

17 Agreement the Government of Japan reiterated its in18 tent to deregulate and liberalize its market.

19 (7) The Government of Japan in June of 1995

20 undertook additional obligations to provide greater

21 foreign access and liberalization to its market through

22 its schedule of insurance obligations during the finan23 cial services negotiations of the World Trade Organi24 zation (WTO).
210

HR 3540 PP

1 (8) The United States insurance industry is the

2 most competitive in the world, operates successfully

3 throughout the world, and thus could be expected to

4 achieve higher levels of market access and profit5 ability under a more open, deregulated and liberal6 ized Japanese market.

7 (9) Despite more than one and one-half years

8 since the conclusion of the United States-Japan In9 surance Agreement, despite more than one year since

10 Japan undertook new commitments under the WTO,

11 despite the entry into force on April 1, 1996, of the

12 new Insurance Business Law, the Japanese market

13 remains closed and highly regulated and thus contin14 ues to deny fair and open treatment for foreign insur15 ers, including competitive United States insurers.

16 (10) The non-implementation of the United

17 States-Japan Insurance Agreement is a matter of

18 grave importance to the United States Government.

19 (11) Dozens of meetings between the United

20 States Trade Representative and the Ministry of Fi21 nance have taken place during the past year.

22 (12) President Clinton, Vice President Gore, Sec23 retary Rubin, Secretary Christopher, Secretary

24 Kantor, Ambassador Barshefsky have all indicated to
211

HR 3540 PP

1 their counterparts in the Government of Japan the

2 importance of this matter to the United States.

3 (13) The United States Senate has written re4 peatedly to the Minister of Finance and the Ambas5 sador of Japan.

6 (14) Despite all of these efforts and indications

7 of importance, the Ministry of Finance has failed to

8 implement the United States-Japan Insurance Agree9 ment.

10 (15) Several deadlines have already passed for

11 resolution of this issue with the latest deadline set for

12 July 31, 1996.

13 (b) SENSE OF CONGRESS.—It is the sense of the Con14 gress that—

15 (1) the Ministry of Finance of the Government

16 of Japan should immediately and without further

17 delay completely and fully comply with all provisions

18 of the United States-Japan Insurance Agreement, in19 cluding most especially those which require the Min20 istry of Finance to deregulate and liberalize the pri21 mary sectors of the Japanese market, and those which

22 insure that the current position of foreign insurers in

23 Japan will not be jeopardized until primary sector

24 deregulation has been achieved, and a three-year pe25 riod has elapsed; and
212

HR 3540 PP

1 (2) failing satisfactory resolution of this matter

2 on or before July 31, 1996, the United States Govern3 ment should use any and all resources at its disposal

4 to bring about full and complete compliance with the

5 Agreement.

6 SENSE OF CONGRESS REGARDING THE CONFLICT IN

7 CHECHNYA

8 SEC. 583. (a) CONGRESSIONAL DECLARATION.—The

9 Congress declares that the continuation of the conflict in

10 Chechnya, the continued killing of innocent civilians, and

11 the ongoing violation of human rights in that region are

12 unacceptable.

13 (b) SENSE OF CONGRESS.—The Congress hereby—

14 (1) condemns Russia’s infringement of the cease15 fire agreements in Chechnya;

16 (2) calls upon the Government of the Russian

17 Federation to bring an immediate halt to offensive

18 military actions in Chechnya and requests President

19 Yeltsin to honor his decree of June 25, 1996 concern20 ing the withdrawal of Russian armed forces from

21 Chechnya;

22 (3) encourages the two warring parties to resume

23 negotiations without delay so as to find a peaceful po24 litical solution to the Chechen problem; and
213

HR 3540 PP

1 (4) supports the Organization for Security and

2 Cooperation in Europe and its representatives in

3 Chechnya in its efforts to mediate in Chechnya.

4 REQUIREMENT FOR DISCLOSURE OF FOREIGN AID IN

5 REPORT OF SECRETARY OF STATE

6 SEC. 584. (a) FOREIGN AID REPORTING REQUIRE7 MENT.—In addition to the voting practices of a foreign

8 country, the report required to be submitted to Congress

9 under section 406(a) of the Foreign Relations Authorization

10 Act, fiscal years 1990 and 1991 (22 U.S.C. 2414a), shall

11 include a side-by-side comparison of individual countries’

12 overall support for the United States at the United Nations

13 and the amount of United States assistance provided to

14 such country in that fiscal year.

15 (b) UNITED STATES ASSISTANCE.—For purposes of

16 this section, the term ‘‘United States assistance’’ has the

17 meaning given the term in section 481(e)(4) of the Foreign

18 Assistance Act of 1961 (22 U.S.C. 2291(e)(4)).

19 REPORT ON DOMESTIC FEDERAL AGENCIES FURNISHING

20 UNITED STATES ASSISTANCE

21 SEC. 585. (a) IN GENERAL.—Not later than June 1,

22 1997, the Comptroller General of the United States shall

23 study and report to the Congress on all assistance furnished

24 directly or indirectly to foreign countries, foreign entities,

25 and international organizations by domestic Federal agen26 cies and Federal agencies.
214

HR 3540 PP

1 (b) DEFINITIONS.—As used in this section:

2 (1) DOMESTIC FEDERAL AGENCY.—The term

3 ‘‘domestic Federal agency’’ means a Federal agency

4 the primary mission of which is to carry out func5 tions other than foreign affairs, defense, or national

6 security functions.

7 (2) FEDERAL AGENCY.—The term ‘‘Federal agen8 cy’’ has the meaning given the term in section 551(1)

9 of title 5, United States Code.

10 (3) INTERNATIONAL ORGANIZATION.—The term

11 ‘‘international organization’’ has the meaning given

12 the term in section 1 of the International Organiza13 tion Immunities Act (22 U.S.C. 288).

14 (4) UNITED STATES ASSISTANCE.—The term

15 ‘‘United States assistance’’ has the meaning given the

16 term in section 481(e)(4) of the Foreign Assistance

17 Act of 1961 (22 U.S.C. 2291(e)(4)).

18 RESTRICTIONS ON VOLUNTARY CONTRIBUTIONS TO UNITED

19 NATIONS AGENCIES

20 SEC. 586. (a) PROHIBITION ON VOLUNTARY CON21 TRIBUTIONS FOR THE UNITED NATIONS.—None of the funds

22 appropriated or otherwise made available by this Act may

23 be made available to pay any voluntary contribution of the

24 United States to the United Nations or any of its special25 ized agencies (including the United Nations Development

26 Program) if the United Nations attempts to implement or
215

HR 3540 PP

1 impose any taxation or fee on any United States persons

2 or borrows funds from any international financial institu3 tion.

4 (b) CERTIFICATION REQUIRED FOR DISBURSEMENT OF

5 FUNDS.—None of the funds appropriated or otherwise made

6 available under this Act may be made available to pay any

7 voluntary contribution of the United States to the United

8 Nations or any of its specialized agencies (including the

9 United Nations Development Program) unless the President

10 certifies to the Congress 15 days in advance of such pay11 ment that the United Nations or such agency, as the case

12 may be, is not engaged in, and has not been engaged in

13 during the previous fiscal year, any effort to develop, advo14 cate, promote, or publicize any proposal concerning tax15 ation or fees on United States persons in order to raise reve16 nue for the United Nations or any of its specialized agen17 cies.

18 (c) DEFINITIONS.—As used in this section:

19 (1) The term ‘‘international financial institu20 tion’’ includes the African Development Bank, the Af21 rican Development Fund, the Asian Development

22 Bank, the European Bank for Reconstruction and De23 velopment, the Inter-American Development Bank, the

24 International Bank for Reconstruction and Develop25 ment, the International Development Association, the
216

HR 3540 PP

1 International Finance Corporation, the International

2 Monetary Fund, and the Multilateral Insurance

3 Guaranty Agency; and

4 (2) The term ‘‘United States person’’ refers to—

5 (A) a natural person who is a citizen or na6 tional of the United States; or

7 (B) a corporation, partnership, or other

8 legal entity organized under the United States or

9 any State, territory, possession, or district of the

10 United States.

11 HAITI

12 SEC. 587. The Government of Haiti shall be eligible

13 to purchase defense articles and services under the Arms

14 Export Control Act (22 U.S.C. 2751 et seq.), for the civil15 ian-led Haitian National Police and Coast Guard, except

16 as otherwise stated in law: Provided, That the authority

17 provided by this section shall be subject to the regular notifi18 cation procedures of the Committees on Appropriations.

19 TRADE RELATIONS WITH EASTERN AND CENTRAL EUROPE.

20 SEC. 588. (a) FINDINGS.—The Congress makes the fol21 lowing findings:

22 (1) The countries of Central and Eastern Eu23 rope, including Poland, Hungary, the Czech Republic,

24 Slovakia, Romania, Slovenia, Lithuania, Latvia, Es25 tonia, and Bulgaria, are important to the long-term
217

HR 3540 PP

1 stability and economic success of a future Europe

2 freed from the shackles of communism.

3 (2) The Central and Eastern European coun4 tries, particularly Hungary, Poland, the Czech Re5 public, Romania, Slovakia, Slovenia, Latvia, Lithua6 nia, and Estonia, are in the midst of dramatic re7 forms to transform their centrally planned economies

8 into free market economies and to join the Western

9 community.

10 (3) It is in the long-term interest of the United

11 States to encourage and assist the transformation of

12 Central and Eastern Europe into a free market econ13 omy, which is the solid foundation of democracy, and

14 will contribute to regional stability and greatly in15 creased opportunities for commerce with the United

16 States.

17 (4) Trade with the countries of Central and

18 Eastern Europe accounts for less than one percent of

19 total United States trade.

20 (5) The presence of a market with more than

21 140,000,000 people, with a growing appetite for

22 consumer goods and services and badly in need of

23 modern technology and management, should be an

24 important market for United States exports and in25 vestments.
218

HR 3540 PP

1 (6) The United States has concluded agreements

2 granting most-favored-nation status to most of the

3 countries of Central and Eastern Europe.

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

5 Congress that the President should take steps to promote

6 more open, fair, and free trade between the United States

7 and the countries of Central Europe, including Poland,

8 Hungary, the Czech Republic, Slovakia, Lithuania, Latvia,

9 Estonia, Romania, and Slovenia, including—

10 (1) developing closer commercial contacts;

11 (2) the mutual elimination of tariff and non12 tariff discriminatory barriers in trade with these

13 countries;

14 (3) exploring the possibility of framework agree15 ments that would lead to a free trade agreement;

16 (4) negotiating bilateral investment treaties;

17 (5) stimulating increased United States exports

18 and investments to the region;

19 (6) obtaining further liberalization of investment

20 regulations and protection against nationalization in

21 these foreign countries; and

22 (7) establishing fair and expeditious dispute set23 tlement procedures.
219

HR 3540 PP

1 LIMITATION ON FOREIGN SOVEREIGN IMMUNITY

2 SEC. 589. (a) IN GENERAL.—Section 1605(a)(7) of

3 title 28, United States Code, is amended to read as follows:

4 ‘‘(7) in which money damages are sought against

5 a foreign state for personal injury or death caused by

6 an act of torture, extrajudicial killing, aircraft sabo7 tage, hostage taking, or the provision of material sup8 port or resources (as defined in section 2339A of title

9 18) for such an act, if—

10 ‘‘(A) such act or provision of material sup11 port was engaged in by an official, employee, or

12 agent of such foreign state while acting within

13 the scope of his or her office, employment, or

14 agency;

15 ‘‘(B) the foreign state against whom the

16 claim was brought—

17 ‘‘(i) was designated as a state sponsor

18 of terrorism under section 6(j) of the Export

19 Administration Act of 1979 (50 U.S.C.

20 App. 2405(j)) or section 620A of the For21 eign Assistance Act of 1961 (22 U.S.C.

22 2371) at the time the act occurred or was

23 later so designated as a result of such act;

24 or
220

HR 3540 PP

1 ‘‘(ii) had no treaty of extradition with

2 the United States at the time the act oc3 curred and no adequate and available rem4 edies exist either in such state or in the

5 place in which the act occurred;

6 ‘‘(C) the claimant has afforded the foreign

7 state a reasonable opportunity to arbitrate the

8 claim in accordance with accepted international

9 rules of arbitration; and

10 ‘‘(D) the claimant or victim was a national

11 of the United States (as that term is defined in

12 section 101(a)(22) of the Immigration and Na13 tionality Act) when the act upon which the claim

14 is based occurred.’’.

15 (b) EFFECTIVE DATE.—The amendment made by sub16 section (a) shall apply with respect to actions brought in

17 United States courts on or after the date of enactment of

18 this Act.

19 SENSE OF CONGRESS REGARDING CROATIA

20 SEC. 590. (a) FINDINGS.—The Congress makes the fol21 lowing findings:

22 (1) Croatia has politically and financially con23 tributed to the NATO peacekeeping operations in

24 Bosnia;
221

HR 3540 PP

1 (2) The economic stability and security of Cro2 atia is important to the stability of South Central

3 Europe; and

4 (3) Croatia is in the process of joining the Part5 nership for Peace.

6 (b) SENSE OF CONGRESS.—It is the Sense of Congress

7 that:

8 (1) Croatia should be recognized and commended

9 for its contributions to NATO and the various peace10 keeping efforts in Bosnia;

11 (2) The United States should support the active

12 participation of Croatia in activities appropriate for

13 qualifying for NATO membership, provided Croatia

14 continues to adhere fully to the Dayton Peace Accords

15 and continues to make progress toward establishing

16 democratic institutions, a free market, and the rule of

17 law.

18 ROMANIA’S PROGRESS TOWARD NATO MEMBERSHIP

19 SEC. 591. (a) FINDINGS.—The Congress makes the fol20 lowing findings:

21 (1) Romania emerged from years of brutal Com22 munist dictatorship in 1989 and approved a new

23 Constitution and elected a Parliament by 1991, lay24 ing the foundation for a modern parliamentary de25 mocracy charged with guaranteeing fundamental
222

HR 3540 PP

1 human rights, freedom of expression, and respect for

2 private property;

3 (2) Local elections, parliamentary elections, and

4 presidential elections have been held in Romania,

5 with 1996 marking the second nationwide presi6 dential elections under the new Constitution;

7 (3) Romania was the first former Eastern bloc

8 country to join NATO’s Partnership for Peace pro9 gram and has hosted Partnership for Peace military

10 exercises on its soil;

11 (4) Romania is the second largest country in

12 terms of size and population in Central Europe and

13 as such is strategically significant;

14 (5) Romania formally applied for NATO mem15 bership in April of 1996 and has begun an individ16 ualized dialogue with NATO on its membership ap17 plication; and

18 (6) Romania has contributed to the peace and

19 reconstruction efforts in Bosnia by participating in

20 the Implementation Force (IFOR).

21 (b) SENSE OF THE CONGRESS.—Therefore, it is the

22 sense of the Congress that:

23 (1) Romania is making significant progress to24 ward establishing democratic institutions, a free mar-
223

HR 3540 PP

1 ket economy, civilian control of the armed forces and

2 the rule of law;

3 (2) Romania is making important progress to4 ward meeting the criteria for accession into NATO;

5 (3) Romania deserves commendation for its clear

6 desire to stand with the West in NATO, as evidenced

7 by its early entry into the Partnership for Peace, its

8 formal application for NATO membership, and its

9 participation in IFOR;

10 (4) Romania should be evaluated for membership

11 in the NATO Participation Act’s transition assistance

12 program at the earliest opportunity; and

13 (5) The United States should work closely with

14 Romania and other countries working toward NATO

15 membership to ensure that every opportunity is pro16 vided.

17 SENSE OF CONGRESS REGARDING EXPANSION OF ELIGI18 BILITY FOR HOLOCAUST SURVIVOR COMPENSATION BY

19 THE GOVERNMENT OF GERMANY

20 SEC. 592. (a) FINDINGS.—The Congress makes the fol21 lowing findings:

22 (1) After nearly half a century, tens of thousands

23 of Holocaust survivors continue to be denied justice

24 and compensation by the Government of Germany.

25 (2) These people who suffered grievously at the

26 hands of the Nazis are now victims of unreasonable
224

HR 3540 PP

1 and arbitrary rules which keep them outside the

2 framework of the various compensation programs.

3 (3) Compensation for these victims has been non4 existent or, at best, woefully inadequate.

5 (4) The time has come to right this terrible

6 wrong.

7 (b) SENSE OF CONGRESS.—The Congress calls upon

8 the Government of Germany to negotiate in good faith with

9 the Conference on Jewish Material Claims Against Ger10 many to broaden the categories of those eligible for com11 pensation so that the injustice of uncompensated Holocaust

12 survivors may be corrected before it is too late.

13 SENSE OF SENATE ON DELIVERY BY CHINA OF CRUISE

14 MISSILES TO IRAN

15 SEC. 593. (a) FINDINGS.—The Senate makes the fol16 lowing findings:

17 (1) On February 22, 1996, the Director of

18 Central Intelligence informed the Senate that the Gov19 ernment of the People’s Republic of China had deliv20 ered cruise missiles to Iran.

21 (2) On June 19, 1996, the Under Secretary of

22 State for Arms Control and International Security

23 Affairs informed Congress that the Department of

24 State had evidence of Chinese-produced cruise missiles

25 in Iran.
225

HR 3540 PP

1 (3) On at least three occasions in 1996, includ2 ing July 15, 1996, the Commander of the United

3 States Fifth Fleet has pointed to the threat posed by

4 Chinese-produced cruise missiles to the 15,000 United

5 States sailors and marines stationed in the Persian

6 Gulf region.

7 (4) Section 1605 of the Iran-Iraq Arms Non-Pro8 liferation Act of 1992 (title XVI of Public Law 102–

9 484; 50 U.S.C. 1701 note) both requires and author10 izes the President to impose sanctions against any

11 foreign government that delivers cruise missiles to

12 Iran.

13 (b) SENSE OF SENATE.—It is the sense of the Senate

14 that—

15 (1) the Government of the People’s Republic of

16 China should immediately halt the delivery of cruise

17 missiles and other advanced conventional weapons to

18 Iran; and

19 (2) the President should enforce all appropriate

20 United States laws with respect to the delivery by

21 that government of cruise missiles to Iran.

22 SENSE OF SENATE ON DELIVERY BY CHINA OF BALLISTIC

23 MISSILE TECHNOLOGY TO SYRIA

24 SEC. 594. (a) FINDINGS.—The Senate makes the fol25 lowing findings:
226

HR 3540 PP

1 (1) Credible information exists indicating that

2 defense industrial trading companies of the People’s

3 Republic of China may have transferred ballistic mis4 sile technology to Syria.

5 (2) On October 4, 1994, the Government of the

6 People’s Republic of China entered into a written

7 agreement with the United States pledging not to ex8 port missiles or related technology that would violate

9 the Missile Technology Control Regime (MTCR).

10 (3) Section 73(f) of the Arms Export Control Act

11 (22 U.S.C. 2797b(f)) states that, when determining

12 whether a foreign person may be subject to United

13 States sanctions for transferring technology listed on

14 the MTCR Annex, it should be a rebuttable presump15 tion that such technology is designed for use in a mis16 sile listed on the MTCR Annex if the President deter17 mines that the final destination of the technology is

18 a country the government of which the Secretary of

19 State has determined, for purposes of section

20 6(j)(1)(A) of the Export Administration Act of 1979

21 (50 U.S.C. App. 2405(j)(1)(A)), has repeatedly pro22 vided support for acts of international terrorism.

23 (4) The Secretary of State has determined under

24 the terms of section 6(j)(1)(A) of the Export Adminis-
227

HR 3540 PP

1 tration Act of 1979 that Syria has repeatedly pro2 vided support for acts of international terrorism.

3 (5) In 1994 Congress explicitly enacted section

4 73(f) of the Arms Export Control Act in order to tar5 get the transfer of ballistic missile technology to ter6 rorist nations.

7 (6) The presence of ballistic missiles in Syria

8 would pose a threat to United States Armed Forces

9 and to regional peace and stability in the Middle

10 East.

11 (b) SENSE OF SENATE.—It is the sense of the Senate

12 that—

13 (1) it is in the national security interests of the

14 United States and the State of Israel to prevent the

15 spread of ballistic missiles and related technology to

16 Syria;

17 (2) the Government of the People’s Republic of

18 China should continue to honor its agreement with

19 the United States not to export missiles or related

20 technology that would violate the Missile Technology

21 Control Regime; and

22 (3) the President should exercise all legal author23 ity available to the President to prevent the spread of

24 ballistic missiles and related technology to Syria.
228

HR 3540 PP

1 REFUGEE STATUS FOR ADULT CHILDREN OF FORMER VIET2 NAMESE REEDUCATION CAMP INTERNEES RESETTLED

3 UNDER THE ORDERLY DEPARTURE PROGRAM

4 SEC. 595. (a) ELIGIBILITY FOR ORDERLY DEPARTURE

5 PROGRAM.—For purposes of eligibility for the Orderly De6 parture Program for nationals of Vietnam, an alien de7 scribed in subsection (b) shall be considered to be a refugee

8 of special humanitarian concern to the United States with9 in the meaning of section 207 of the Immigration and Na10 tionality Act (8 U.S.C. 1157) and shall be admitted to the

11 United States for resettlement if the alien would be admissi12 ble as an immigrant under the Immigration and National13 ity Act (except as provided in section 207(c)(3) of that Act).

14 (b) ALIENS COVERED.—An alien described in this sub15 section is an alien who—

16 (1) is the son or daughter of a national of Viet17 nam who—

18 (A) was formerly interned in a reeducation

19 camp in Vietnam by the Government of the So20 cialist Republic of Vietnam; and

21 (B) has been accepted for resettlement as a

22 refugee under the Orderly Departure Program on

23 or after April 1, 1995;

24 (2) is 21 years of age or older; and
229

HR 3540 PP

1 (3) was unmarried as of the date of acceptance

2 of the alien’s parent for resettlement under the Or3 derly Departure Program.

4 (c) SUPERSEDES EXISTING LAW.—This section super5 sedes any other provision of law.

6 DEMOCRATIC PEOPLE’S REPUBLIC OF KOREA

7 SEC. 596. Ninety days after the date of enactment of

8 this Act, and every 180 days thereafter, the Secretary of

9 State, in consultation with the Secretary of Defense, shall

10 provide a report in a classified or unclassified form to the

11 Committee on Appropriations including the following infor12 mation:

13 (a) a best estimate on fuel used by the military

14 forces of the Democratic People’s Republic of Korea

15 (DPRK);

16 (b) the deployment position and military train17 ing and activities of the DPRK forces and best esti18 mate of the associated costs of these activities;

19 (c) steps taken to reduce the DPRK level of

20 forces; and

21 (d) cooperation, training, or exchanges of infor22 mation, technology or personnel between the DPRK

23 and any other nation supporting the development or

24 deployment of a ballistic missile capability.
230

HR 3540 PP

1 PROSECUTION OF MAJOR DRUG TRAFFICKERS RESIDING IN

2 MEXICO

3 SEC. 597. (a) REPORT.—(1) Not later than 30 days

4 after the date of enactment of this Act, the Administrator

5 of the Drug Enforcement Administration shall submit a re6 port to the President—

7 (A) identifying the 10 individuals who are in8 dicted in the United States for unlawful trafficking or

9 production of controlled substances most sought by

10 United States law enforcement officials and who there

11 is reason to believe reside in Mexico; and

12 (B) identifying 25 individuals not named under

13 paragraph (1) who have been indicted for such of14 fenses and who there is reason to believe reside in

15 Mexico.

16 (2) The President shall promptly transmit to the Gov17 ernment of Mexico a copy of the report submitted under

18 paragraph (1).

19 (b) PROHIBITION.—

20 (1) IN GENERAL.—None of the funds appro21 priated under the heading ‘‘International Military

22 Education and Training’’ may be made available for

23 any program, project, or activity for Mexico.
231

HR 3540 PP

1 (2) EXCEPTION.—Paragraph (1) shall not apply

2 if, not later than 6 months after the date of enactment

3 of this Act, the President certifies to Congress that—

4 (A) the Government of Mexico has extra5 dited to the United States the individuals named

6 pursuant to subsection (a)(1); or

7 (B) the Government of Mexico has appre8 hended and begun prosecution of the individuals

9 named pursuant to subsection (a)(1).

10 (c) WAIVER.—Subsection (b) shall not apply if the

11 President of Mexico certifies to the President of the United

12 States that—

13 (1) the Government of Mexico made intensive,

14 good faith efforts to apprehend the individuals named

15 pursuant to subsection (a)(1) but did not find one or

16 more of the individuals within Mexico; and

17 (2) the Government of Mexico has apprehended

18 and extradited or apprehended and prosecuted 3 indi19 viduals named pursuant to subsection (a)(2) for each

20 individual not found under paragraph (1).

21 DEOBLIGATION OF CERTAIN UNEXPENDED ECONOMIC

22 ASSISTANCE FUNDS

23 SEC. 598. Chapter 3 of part III of the Foreign Assist24 ance Act of 1961 (22 U.S.C. 2401 et seq.) is amended by

25 adding at the end the following:
232

HR 3540 PP

1 ‘‘SEC. 668. DEOBLIGATION OF CERTAIN UNEXPENDED

2 ECONOMIC ASSISTANCE FUNDS.

3 ‘‘(a) REQUIREMENT TO DEOBLIGATE.—

4 ‘‘(1) IN GENERAL.—Except as provided in sub5 section (b) of this section and in paragraphs (1) and

6 (3) of section 617(a) of this Act, at the beginning of

7 each fiscal year the President shall deobligate and re8 turn to the Treasury any funds described in para9 graph (2) that, as of the end of the preceding fiscal

10 year, have been obligated for a project or activity for

11 a period of more than 4 years but have not been ex12 pended.

13 ‘‘(2) FUNDS.—Paragraph (1) applies to funds

14 made available for—

15 ‘‘(A) assistance under chapter 1 of part I of

16 this Act (relating to development assistance),

17 chapter 10 of part I of this Act (relating to the

18 Development Fund for Africa), or chapter 4 of

19 part II of this Act (relating to the economic sup20 port fund);

21 ‘‘(B) assistance under the Support for East

22 European Democracy (SEED) Act of 1989; and

23 ‘‘(C) economic assistance for the independ24 ent states of the former Soviet Union under

25 chapter 11 of part I of this Act or under any
233

HR 3540 PP

1 other provision of law authorizing economic as2 sistance for such independent states.

3 ‘‘(b) EXCEPTIONS.—The President, on a case-by-case

4 basis, may waive the requirement of subsection (a)(1) if the

5 President determines and reports to the Congress that it is

6 in the national interest to do so.

7 ‘‘(c) APPROPRIATE CONGRESSIONAL COMMITTEES.—

8 As used in this section, the term ‘appropriate congressional

9 committees’ means the Committee on International Rela10 tions and the Committee on Appropriations of the House

11 of Representatives and the Committee on Foreign Relations

12 and the Committee on Appropriations of the Senate.’’.

13 SENSE OF SENATE REGARDING THE GOVERNMENT OF

14 BURUNDI

15 SEC. 599. (a) The Senate finds that:

16 (1) The political situation in the African nation

17 of Burundi has deteriorated and there are reports of

18 a military coup against the elected Government of

19 Burundi.

20 (2) The continuing ethnic conflict in Burundi

21 has caused untold suffering among the people of Bu22 rundi and has resulted in the deaths of over 150,000

23 people in the past two years.

24 (3) The attempt to overthrow the Government of

25 Burundi makes the possibility of an increase in the
234

HR 3540 PP

1 tension and the continued slaughter of innocent civil2 ians more likely.

3 (4) The United States and the International

4 Community have an interest in ending the crisis in

5 Burundi before it reaches the level of violence that oc6 curred in Rwanda in 1994 when over 800,000 people

7 died in the war between the Hutu and the Tutsi

8 tribes.

9 (b) Now, therefore it is the sense of the Senate that:

10 (1) The United States Senate condemns any vio11 lent action intended to overthrow the Government of

12 Burundi.

13 (2) Calls on all parties to the conflict in Bu14 rundi to exercise restraint in an effort to restore

15 peace.

16 (3) Urges the Administration to continue diplo17 matic efforts at the highest level to find a peaceful res18 olution to the crisis in Burundi.

19 SENSE OF THE SENATE REGARDING ENVIRONMENTAL

20 IMPACT ASSESSMENTS

21 SEC. 599A. (a) FINDINGS.—Congress finds that—

22 (1) Environmental Impact Assessments as a na23 tional instrument are undertaken for proposed activi24 ties that are likely to have a significant adverse im-
235

HR 3540 PP

1 pact on the environment and are subject to a decision

2 of a competent national authority;

3 (2) in 1978 the Senate adopted Senate Resolu4 tion 49, calling on the United States Government to

5 seek the agreement of other governments to a proposed

6 global treaty requiring the preparation of Environ7 mental Impact Assessments for any major project, ac8 tion, or continuing activity that may be reasonably

9 expected to have a significant adverse effect on the

10 physical environment or environmental interests of

11 another nation or a global commons area;

12 (3) subsequent to the adoption of Senate Resolu13 tion 49 in 1978, the United Nations Environment

14 Programme Governing Council adopted Goals and

15 Principles on Environmental Impact Assessment call16 ing on governments to undertake comprehensive Envi17 ronmental Impact Assessments in cases in which the

18 extent, nature, or location of a proposed activity is

19 such that the activity is likely to significantly affect

20 the environment; and

21 (4) on October 7, 1992, the Senate gave its ad22 vice and consent to the Protocol on Environmental

23 Protection to the Antarctic Treaty, which obligates

24 parties to the Antarctic Treaty to require Environ-
236

HR 3540 PP

1 mental Impact Assessment procedures for proposed

2 activities in Antarctica.

3 (b) SENSE OF THE SENATE.—It is the sense of the Sen4 ate that—

5 (1) the United States Government should encour6 age the governments of other nations to engage in ad7 ditional regional treaties regarding specific

8 transboundary activities that have adverse impacts on

9 the environment of other nations or a global commons

10 area; and

11 (2) such additional regional treaties should en12 sure that specific transboundary activities are under13 taken in environmentally sound ways and under

14 careful controls designed to avoid or minimize any

15 adverse environmental effects, through requirements

16 for Environmental Impact Assessments where appro17 priate.

18 INTERNATIONAL CRIMINAL TRIBUNAL

19 SEC. 599B. FINDINGS.—

20 (1) The United Nations, recognizing the need for

21 justice in the former Yugoslavia, established the Inter22 national Criminal Tribunal for the former Yugoslavia

23 (hereafter in this resolution referred to as the ‘‘Inter24 national Criminal Tribunal’’);
237

HR 3540 PP

1 (2) United Nations Security Council Resolution

2 827 of May 25, 1993, requires states to cooperate fully

3 with the International Criminal Tribunal;

4 (3) The parties to the General Framework Agree5 ment for Peace in Bosnia and Herzegovina and asso6 ciated Annexes (in this resolution referred to as the

7 ‘‘Peace Agreement’’) negotiated in Dayton, Ohio and

8 signed in Paris, France, on December 14, 1995, ac9 cepted, in Article IX, the obligation ‘‘to cooperate in

10 the investigation and prosecution of war crimes and

11 other violations of international humanitarian law’’;

12 (4) The Constitution of Bosnia and Herzegovina,

13 agreed to as Annex 4 of the Peace Agreement, pro14 vides, in Article IX, that ‘‘No person who is serving

15 a sentence imposed by the International Tribunal for

16 the former Yugoslavia, and no person who is under

17 indictment by the Tribunal and who has failed to

18 comply with an order to appear before the Tribunal,

19 may stand as a candidate or hold any appointive,

20 elective, or other public office in Bosnia and

21 Herzegovina’’;

22 (5) The International Criminal Tribunal has is23 sued 57 indictments against individuals from all par24 ties to the conflicts in the former Yugoslavia;
238

HR 3540 PP

1 (6) The International Criminal Tribunal contin2 ues to investigate gross violations of international law

3 in the former Yugoslavia with a view to further in4 dictments against the perpetrators;

5 (7) On July 25, 1995, the International Crimi6 nal Tribunal issued an indictment for Radovan

7 Karadzic, president of the Bosnian Serb administra8 tion of Pale, and Ratko Mladic, commander of the

9 Bosnian Serb administration and charged them with

10 genocide and crimes against humanity, violations of

11 the law or customs of war, and grave breaches of the

12 Geneva Conventions of 1949, arising from atrocities

13 perpetrated against the civilian population through14 out Bosnia-Herzegovina, for the sniping campaign

15 against civilians in Sarajevo, and for the taking of

16 United Nations peacekeepers as hostages and for their

17 use as human shields;

18 (8) On November 16, 1995, Karadzic and Mladic

19 were indicted a second time by the International

20 Criminal Tribunal, charged with genocide for the kill21 ing of up to 6,000 Muslims in Srebrenica, Bosnia, in

22 July 1995;

23 (9) The United Nations Security Council, in

24 adopting Resolution 1022 on November 22, 1995, de25 cided that economic sanctions on the Federal Republic
239

HR 3540 PP

1 of Yugoslavia (Serbia and Montenegro) and the so2 called Republika Srpska would be reimposed if, at

3 any time, the High Representative or the IFOR com4 mander informs the Security Council that the Federal

5 Republic of Yugoslavia or the Bosnian Serb authori6 ties are failing significantly to meet their obligations

7 under the Peace Agreement;

8 (10) The so-called Republika Srpska and the

9 Federal Republic of Yugoslavia (Serbia and

10 Montenegro) have failed to arrest and turn over for

11 prosecution indicted war criminals, including

12 Karadzic and Mladic;

13 (11) Efforts to politically isolate Karadzic and

14 Mladic have failed thus far and would in any case be

15 insufficient to comply with the Peace Agreement and

16 bring peace with justice to Bosnia and Herzegovina;

17 (12) The International Criminal Tribunal issued

18 international warrants for the arrest of Karadzic and

19 Mladic on July 11, 1996.

20 (13) In the so-called Republika Srpska freedom

21 of the press and freedom of assembly are severely lim22 ited and violence against ethnic and religious minori23 ties and opposition figures is on the rise;

24 (14) It will be difficult for national elections in

25 Bosnia and Herzegovina to take place meaningfully
240

HR 3540 PP

1 so long as key war criminals, including Karadzic and

2 Mladic, remain at large and able to influence politi3 cal and military developments;

4 (15) On June 6, 1996, the President of the Inter5 national Criminal Tribunal, declaring that the Fed6 eral Republic of Yugoslavia’s failure to extradite in7 dicted war criminals is a blatant violation of the

8 Peace Agreement and of United Nations Security

9 Council Resolutions, called on the High Representa10 tive to reimpose economic sanctions on the so-called

11 Republika Srpska and on the Federal Republic of

12 Yugoslavia (Serbia and Montenegro); and

13 (16) The apprehension and prosecution of in14 dicted war criminals is essential for peace and rec15 onciliation to be achieved and democracy to be estab16 lished throughout Bosnia and Herzegovina.

17 (b) SENSE OF THE SENATE.—It is the sense of the Sen18 ate that—

19 (1) the Senate finds that the International

20 Criminal Tribunal for the former Yugoslavia merits

21 continued and increased United States support for its

22 efforts to investigate and bring to justice the perpetra23 tors of gross violations of international law in the

24 former Yugoslavia;
241

HR 3540 PP

1 (2) the President of the United States should

2 support the request of the President of the Inter3 national Criminal Tribunal for the former Yugoslavia

4 for the High Representative to reimpose full economic

5 sanctions on the Federal Republic of Yugoslavia (Ser6 bia and Montenegro) and the so-called Republika

7 Srpska, in accordance with United Nations Security

8 Council Resolution 1022 (1995), until the Federal Re9 public of Yugoslavia (Serbia and Montenegro) and

10 Bosnian Serb authorities have complied with their ob11 ligations under the Peace Agreement and United Na12 tions Security Council Resolutions to cooperate fully

13 with the International Criminal Tribunal;

14 (3) the NATO-led Implementation Force (IFOR),

15 in carrying out its mandate, should make it an ur16 gent priority to detain and bring to justice persons

17 indicted by the International Criminal Tribunal; and

18 (4) states in the former Yugoslavia should not be

19 admitted to international organizations and fora

20 until and unless they have complied with their obliga21 tions under the Peace Agreement and United Nations

22 Security Council Resolutions to cooperate fully with

23 the International Criminal Tribunal.
242

HR 3540 PP

1 TITLE VI—NATO ENLARGEMENT FACILITATION

2 ACT OF 1996

3 SEC. 601. SHORT TITLE.

4 This title may be cited as the ‘‘NATO Enlargement

5 Facilitation Act of 1996’’.

6 SEC. 602. FINDINGS.

7 The Congress makes the following findings:

8 (1) Since 1949, the North Atlantic Treaty Orga9 nization (NATO) has played an essential role in

10 guaranteeing the security, freedom, and prosperity of

11 the United States and its partners in the Alliance.

12 (2) The NATO Alliance is, and has been since its

13 inception, purely defensive in character, and it poses

14 no threat to any nation. The enlargement of the

15 NATO Alliance to include as full and equal members

16 emerging democracies in Central and Eastern Europe

17 will serve to reinforce stability and security in Eu18 rope by fostering their integration into the structures

19 which have created and sustained peace in Europe

20 since 1945. Their admission into NATO will not

21 threaten any nation. America’s security, freedom, and

22 prosperity remain linked to the security of the coun23 tries of Europe.

24 (3) The sustained commitment of the member

25 countries of NATO to a mutual defense has made pos-
243

HR 3540 PP

1 sible the democratic transformation of Central and

2 Eastern Europe. Members of the Alliance can and

3 should play a critical role in addressing the security

4 challenges of the post-Cold War era and in creating

5 the stable environment needed for those emerging de6 mocracies in Central and Eastern Europe to success7 fully complete political and economic transformation.

8 (4) The United States continues to regard the

9 political independence and territorial integrity of all

10 emerging democracies in Central and Eastern Europe

11 as vital to European peace and security.

12 (5) The active involvement by the countries of

13 Central and Eastern Europe has made the Partner14 ship for Peace program an important forum to foster

15 cooperation between NATO and those countries seek16 ing NATO membership.

17 (6) NATO has enlarged its membership on 3 dif18 ferent occasions since 1949.

19 (7) Congress supports the admission of qualified

20 new members to NATO and the European Union at

21 an early date and has sought to facilitate the admis22 sion of qualified new members into NATO.

23 (8) As new members of NATO assume the re24 sponsibilities of Alliance membership, the costs of

25 maintaining stability in Europe should be shared
244

HR 3540 PP

1 more widely. Facilitation of the enlargement process

2 will require current members of NATO, and the Unit3 ed States in particular, to demonstrate the political

4 will needed to build on successful ongoing programs

5 such as the Warsaw Initiative and the Partnership

6 for Peace by making available the resources necessary

7 to supplement efforts prospective new members are

8 themselves undertaking.

9 (9) New members will be full members of the Al10 liance, enjoying all rights and assuming all the obli11 gations under the Washington Treaty.

12 (10) Cooperative regional peacekeeping initia13 tives involving emerging democracies in Central and

14 Eastern Europe that have expressed interest in join15 ing NATO, such as the Baltic Peacekeeping Battalion,

16 the Polish-Lithuanian Joint Peacekeeping Force, and

17 the Polish-Ukrainian Peacekeeping Force, can make

18 an important contribution to European peace and se19 curity and international peacekeeping efforts, can as20 sist those countries preparing to assume the respon21 sibilities of possible NATO membership, and accord22 ingly should receive appropriate support from the

23 United States.

24 (11) NATO remains the only multilateral secu25 rity organization capable of conducting effective mili-
245

HR 3540 PP

1 tary operations and preserving security and stability

2 of the Euro-Atlantic region.

3 (12) NATO is an important diplomatic forum

4 and has played a positive role in defusing tensions

5 between members of the Alliance and, as a result, no

6 military action has occurred between two Alliance

7 member states since the inception of NATO in 1949.

8 (13) The admission to NATO of emerging democ9 racies in Central and Eastern Europe which are

10 found to be in a position to further the principles of

11 the North Atlantic Treaty would contribute to inter12 national peace and enhance the security of the region.

13 Countries which have become democracies and estab14 lished market economies, which practice good neigh15 borly relations, and which have established effective

16 democratic civilian control over their defense estab17 lishments and attained a degree of interoperability

18 with NATO, should be evaluated for their potential to

19 further the principles of the North Atlantic Treaty.

20 (14) A number of Central and Eastern European

21 countries have expressed interest in NATO member22 ship, and have taken concrete steps to demonstrate

23 this commitment, including their participation in

24 Partnership for Peace activities.
246

HR 3540 PP

1 (15) The Caucasus region remains important

2 geographically and politically to the future security of

3 Central Europe. As NATO proceeds with the process

4 of enlargement, the United States and NATO should

5 continue to examine means to strengthen the sov6 ereignty and enhance the security of United Nations

7 recognized countries in that region.

8 (16) In recognition that not all countries which

9 have requested membership in NATO will necessarily

10 qualify at the same pace, the accession date for each

11 new member will vary.

12 (17) The provision of additional NATO transi13 tion assistance should include those emerging democ14 racies most ready for closer ties with NATO and

15 should be designed to assist other countries meeting

16 specified criteria of eligibility to move forward to17 ward eventual NATO membership.

18 (18) The Congress of the United States finds in

19 particular that Poland, Hungary, the Czech Republic,

20 and Slovenia have made significant progress toward

21 achieving the stated criteria and should be eligible for

22 the additional assistance described in this Act.

23 (19) The evaluation of future membership in

24 NATO for emerging democracies in Central and East25 ern Europe should be based on the progress of those
247

HR 3540 PP

1 nations in meeting criteria for NATO membership,

2 which require enhancement of NATO’s security and

3 the approval of all NATO members.

4 (20) The process of NATO enlargement entails

5 the agreement of the governments of all NATO mem6 bers in accordance with Article 10 of the Washington

7 Treaty.

8 (21) Some NATO members, such as Spain and

9 Norway, do not allow the deployment of nuclear

10 weapons on their territory although they are accorded

11 the full collective security guarantees provided by ar12 ticle V of the Washington treaty. There is no prior re13 quirement for the stationing of nuclear weapons on

14 the territory of new NATO members, particularly in

15 the current security climate, however NATO retains

16 the right to alter its security posture at any time as

17 circumstances warrant.

18 SEC. 603. UNITED STATES POLICY.

19 It is the policy of the United States—

20 (1) to join with the NATO allies of the United

21 States to adapt the role of the NATO Alliance in the

22 post-Cold War world;

23 (2) to actively assist the emerging democracies in

24 Central and Eastern Europe in their transition so
248

HR 3540 PP

1 that such countries may eventually qualify for NATO

2 membership; and

3 (3) to work to define a constructive and coopera4 tive political and security relationship between an en5 larged NATO and the Russian Federation.

6 SEC. 604. SENSE OF THE CONGRESS REGARDING FURTHER

7 ENLARGEMENT OF NATO.

8 It is the sense of the Congress that in order to promote

9 economic stability and security in Slovakia, Estonia, Lat10 via, Lithuania, Romania, Bulgaria, Albania, Moldova, and

11 Ukraine—

12 (1) the United States should continue and ex13 pand its support for the full and active participation

14 of these countries in activities appropriate for quali15 fying for NATO membership;

16 (2) the United States Government should use all

17 diplomatic means available to press the European

18 Union to admit as soon as possible any country

19 which qualifies for membership;

20 (3) the United States Government and the North

21 Atlantic Treaty Organization should continue and ex22 pand their support for military exercises and peace23 keeping initiatives between and among these nations,

24 nations of the North Atlantic Treaty Organization,

25 and Russia; and
249

HR 3540 PP

1 (4) the process of enlarging NATO to include

2 emerging democracies in Central and Eastern Europe

3 should not be limited to consideration of admitting

4 Poland, Hungary, the Czech Republic, and Slovenia

5 as full members to the NATO Alliance.

6 SEC. 605. SENSE OF THE CONGRESS REGARDING ESTONIA,

7 LATVIA, AND LITHUANIA.

8 In view of the forcible incorporation of Estonia, Lat9 via, Lithuania into the Soviet Union in 1940 under the

10 Molotov-Ribbentrop Pact and the refusal of the United

11 States and other countries to recognize that incorporation

12 for over 50 years, it is the sense of the Congress that—

13 (1) Estonia, Latvia, and Lithuania have valid

14 historical security concerns that must be taken into

15 account by the United States; and

16 (2) Estonia, Latvia, and Lithuania should not

17 be disadvantaged in seeking to join NATO by virtue

18 of their forcible incorporation into the Soviet Union.

19 SEC. 606. DESIGNATION OF COUNTRIES ELIGIBLE FOR

20 NATO ENLARGEMENT ASSISTANCE.

21 (a) IN GENERAL.—The following countries are des22 ignated as eligible to receive assistance under the program

23 established under section 203(a) of the NATO Participation

24 Act of 1994 and shall be deemed to have been so designated
250

HR 3540 PP

1 pursuant to section 203(d) of such Act: Poland, Hungary,

2 the Czech Republic, and Slovenia.

3 (b) DESIGNATION OF OTHER COUNTRIES.—The Presi4 dent shall designate other emerging democracies in Central

5 and Eastern Europe as eligible to receive assistance under

6 the program established under section 203(a) of such Act

7 if such countries—

8 (1) have expressed a clear desire to join NATO;

9 (2) have begun an individualized dialogue with

10 NATO in preparation for accession;

11 (3) are strategically significant to an effective

12 NATO defense; and

13 (4) meet the other criteria outlined in section

14 203(d) of the NATO Participation Act of 1994 (title

15 II of Public Law 103–447; 22 U.S.C. 1928 note).

16 (c) RULE OF CONSTRUCTION.—Subsection (a) does not

17 preclude the designation by the President of Estonia, Lat18 via, Lithuania, Romania, Slovakia, Bulgaria, Albania,

19 Moldova, Ukraine, or any other emerging democracy in

20 Central and Eastern Europe pursuant to section 203(d) of

21 the NATO Participation Act of 1994 as eligible to receive

22 assistance under the program established under section

23 203(a) of such Act.
251

HR 3540 PP

1 SEC. 607. AUTHORIZATION OF APPROPRIATIONS FOR NATO

2 ENLARGEMENT ASSISTANCE.

3 (a) IN GENERAL.—There are authorized to be appro4 priated $60,000,000 for fiscal year 1997 for the program

5 established under section 203(a) of the NATO Participation

6 Act of 1994.

7 (b) AVAILABILITY.—Of the funds authorized to be ap8 propriated by subsection (a)—

9 (1) not less than $20,000,000 shall be available

10 for the subsidy cost, as defined in section 502(5) of

11 the Credit Reform Act of 1990, of direct loans pursu12 ant to the authority of section 203(c)(4) of the NATO

13 Participation Act of 1994 (relating to the ‘‘Foreign

14 Military Financing Program’’);

15 (2) not less than $30,000,000 shall be available

16 for assistance on a grant basis pursuant to the au17 thority of section 203(c)(4) of the NATO Participa18 tion Act of 1994 (relating to the ‘‘Foreign Military

19 Financing Program’’); and

20 (3) not more than $10,000,000 shall be available

21 for assistance pursuant to the authority of section

22 203(c)(3) of the NATO Participation Act of 1994 (re23 lating to international military education and train24 ing).

25 (c) RULE OF CONSTRUCTION.—Amounts authorized to

26 be appropriated under this section are authorized to be ap-
252

HR 3540 PP

1 propriated in addition to such amounts as otherwise may

2 be available for such purposes.

3 SEC. 608. REGIONAL AIRSPACE INITIATIVE AND PARTNER4 SHIP FOR PEACE INFORMATION MANAGE5 MENT SYSTEM.

6 (a) IN GENERAL.—Funds described in subsection (b)

7 are authorized to be made available to support the imple8 mentation of the Regional Airspace Initiative and the Part9 nership for Peace Information Management System, includ10 ing—

11 (1) the procurement of items in support of these

12 programs; and

13 (2) the transfer of such items to countries par14 ticipating in these programs, which may include Po15 land, Hungary, the Czech Republic, Slovenia, Slo16 vakia, Estonia, Latvia, Lithuania, Romania, Bul17 garia, Moldova, Ukraine, and Albania.

18 (b) FUNDS DESCRIBED.—Funds described in this sub19 section are funds that are available—

20 (1) during any fiscal year under the NATO Par21 ticipation Act of 1994 with respect to countries eligi22 ble for assistance under that Act; or

23 (2) during fiscal year 1997 under any Act to

24 carry out the Warsaw Initiative.
253

HR 3540 PP

1 SEC. 609. EXCESS DEFENSE ARTICLES.

2 (a) PRIORITY DELIVERY.—Notwithstanding any other

3 provision of law, the provision and delivery of excess defense

4 articles under the authority of section 203(c) (1) and (2)

5 of the NATO Participation Act of 1994 and section 516

6 of the Foreign Assistance Act of 1961 shall be given priority

7 to the maximum extent feasible over the provision and de8 livery of such excess defense articles to all other countries

9 except those countries referred to in section 541 of the For10 eign Operations, Export Financing, and Related Programs

11 Appropriations Act, 1995 (Public Law 103–306; 108 Stat.

12 1640).

13 (b) COOPERATIVE REGIONAL PEACEKEEPING INITIA14 TIVES.—The Congress encourages the President to provide

15 excess defense articles and other appropriate assistance to

16 cooperative regional peacekeeping initiatives involving

17 emerging democracies in Central and Eastern Europe that

18 have expressed an interest in joining NATO in order to en19 hance their ability to contribute to European peace and se20 curity and international peacekeeping efforts.

21 SEC. 610. MODERNIZATION OF DEFENSE CAPABILITY.

22 The Congress endorses efforts by the United States to

23 modernize the defense capability of Poland, Hungary, the

24 Czech Republic, Slovenia, and any other countries des25 ignated by the President pursuant to section 203(d) of the

26 NATO Participation Act of 1994, by exploring with such
254

HR 3540 PP

1 countries options for the sale or lease to such countries of

2 weapons systems compatible with those used by NATO

3 members, including air defense systems, advanced fighter

4 aircraft, and telecommunications infrastructure.

5 SEC. 611. TERMINATION OF ELIGIBILITY.

6 Section 203(f) of the NATO Participation Act of 1994

7 (title II of Public Law 103–447; 22 U.S.C. 1928 note) is

8 amended to read as follows:

9 ‘‘(f) TERMINATION OF ELIGIBILITY.—(1) The eligi10 bility of a country designated under subsection (d) for the

11 program established in subsection (a) shall terminate 30

12 days after the President makes a certification under para13 graph (2) unless, within the 30-day period, the Congress

14 enacts a joint resolution disapproving the termination of

15 eligibility.

16 ‘‘(2) Whenever the President determines that the gov17 ernment of a country designated under subsection (d)—

18 ‘‘(A) no longer meets the criteria set forth in sub19 section (d)(2)(A);

20 ‘‘(B) is hostile to the NATO Alliance; or

21 ‘‘(C) poses a national security threat to the

22 United States,

23 then the President shall so certify to the appropriate con24 gressional committees.
255

HR 3540 PP

1 ‘‘(3) Nothing in this title affects the eligibility of coun2 tries to participate under other provisions of law in pro3 grams described in this Act.’’.

4 SEC. 612. AMENDMENTS TO THE NATO PARTICIPATION ACT.

5 (a) CONFORMING AMENDMENT.—The NATO Partici6 pation Act of 1994 (title II of Public Law 103–447; 22

7 U.S.C. 1928 note) is amended in sections 203(a), 203(d)(1),

8 and 203(d)(2) by striking ‘‘countries emerging from com9 munist domination’’ each place it appears and inserting

10 ‘‘emerging democracies in Central and Eastern Europe’’.

11 (b) DEFINITIONS.—The NATO Participation Act of

12 1994 (title II of Public Law 103–446; 22 U.S.C. 1928 note)

13 is amended by adding at the end the following new section:

14 ‘‘SEC. 206. DEFINITIONS.

15 ‘‘The term ‘emerging democracies in Central and East16 ern Europe’ includes, but is not limited to, Albania, Bul17 garia, the Czech Republic, Estonia, Hungary, Latvia, Lith18 uania, Moldova, Poland, Romania, Slovakia, Slovenia, and

19 Ukraine.’’.

20 SEC. 613. DEFINITIONS.

21 As used in this title:

22 (1) EMERGING DEMOCRACIES IN CENTRAL AND

23 EASTERN EUROPE.—The term ‘‘emerging democracies

24 in Central and Eastern Europe’’ includes, but is not

25 limited to, Albania, Bulgaria, the Czech Republic, Es-
256

HR 3540 PP

1 tonia, Hungary, Latvia, Lithuania, Moldova, Poland,

2 Romania, Slovakia, Slovenia, and Ukraine.

3 (2) NATO.—The term ‘‘NATO’’ means the North

4 Atlantic Treaty Organization.

5 TITLE VII—MIDDLE EAST DEVELOPMENT BANK

6 SEC. 701. SHORT TITLE.

7 This title may be cited as the ‘‘Bank for Economic Co8 operation and Development in the Middle East and North

9 Africa Act’’.

10 SEC. 702. ACCEPTANCE OF MEMBERSHIP.

11 The President is hereby authorized to accept member12 ship for the United States in the Bank for Economic Co13 operation and Development in the Middle East and North

14 Africa (in this title referred to as the ‘‘Bank’’) provided for

15 by the agreement establishing the Bank (in this title referred

16 to as the ‘‘Agreement’’), signed on May 31, 1996.

17 SEC. 703. GOVERNOR AND ALTERNATE GOVERNOR.

18 (a) APPOINTMENT.—At the inaugural meeting of the

19 Board of Governors of the Bank, the Governor and the alter20 nate for the Governor of the International Bank for Recon21 struction and Development, appointed pursuant to section

22 3 of the Bretton Woods Agreements Act, shall serve ex-officio

23 as a Governor and the alternate for the Governor, respec24 tively, of the Bank. The President, by and with the advice
257

HR 3540 PP

1 and consent of the Senate, shall appoint a Governor of the

2 Bank and an alternate for the Governor.

3 (b) COMPENSATION.—Any person who serves as a gov4 ernor of the Bank or as an alternate for the Governor may

5 not receive any salary or other compensation from the Unit6 ed States by reason of such service.

7 SEC. 704. APPLICABILITY OF CERTAIN PROVISIONS OF THE

8 BRETTON WOODS AGREEMENTS ACT.

9 Section 4 of the Bretton Woods Agreements Act shall

10 apply to the Bank in the same manner in which such sec11 tion applies to the International Bank for Reconstruction

12 and Development and the International Monetary Fund.

13 SEC. 705. FEDERAL RESERVE BANKS AS DEPOSITORIES.

14 Any Federal Reserve Bank which is requested to do

15 so by the Bank may act as its depository, or as its fiscal

16 agent, and the Board of Governors of the Federal Reserve

17 System shall exercise general supervision over the carrying

18 out of these functions.

19 SEC. 706. SUBSCRIPTION OF STOCK.

20 (a) SUBSCRIPTION AUTHORITY.—

21 (1) IN GENERAL.—The Secretary of the Treasury

22 may subscribe on behalf of the United States to not

23 more than 7,011,270 shares of the capital stock of the

24 Bank.
258

HR 3540 PP

1 (2) EFFECTIVENESS OF SUBSCRIPTION COMMIT2 MENT.—Any commitment to make such subscription

3 shall be effective only to such extent or in such

4 amounts as are provided for in advance by appro5 priations Acts.

6 (b) LIMITATIONS ON AUTHORIZATION OF APPROPRIA7 TIONS.—For payment by the Secretary of the Treasury of

8 the subscription of the United States for shares described

9 in subsection (a), there are authorized to be appropriated

10 $1,050,007,800 without fiscal year limitation.

11 (c) LIMITATIONS ON OBLIGATION OF APPROPRIATED

12 AMOUNTS FOR SHARES OF CAPITAL STOCK.—

13 (1) PAID-IN CAPITAL STOCK.—

14 (A) IN GENERAL.—Not more than

15 $105,000,000 of the amounts appropriated pur16 suant to subsection (b) may be obligated for sub17 scription to shares of paid-in capital stock.

18 (B) FISCAL YEAR 1997.—Not more than

19 $52,500,000 of the amounts appropriated pursu20 ant to subsection (b) for fiscal year 1997 may be

21 obligated for subscription to shares of paid-in

22 capital stock.

23 (2) CALLABLE CAPITAL STOCK.—Not more than

24 $787,505,852 of the amounts appropriated pursuant
259

HR 3540 PP

1 to subsection (b) may be obligated for subscription to

2 shares of callable capital stock.

3 (d) DISPOSITION OF NET INCOME DISTRIBUTIONS BY

4 THE BANK.—Any payment made to the United States by

5 the Bank as a distribution of net income shall be covered

6 into the Treasury as a miscellaneous receipt.

7 SEC. 707. JURISDICTION AND VENUE OF CIVIL ACTIONS BY

8 OR AGAINST THE BANK.

9 (a) JURISDICTION.—The United States district courts

10 shall have original and exclusive jurisdiction of any civil

11 action brought in the United States by or against the Bank.

12 (b) VENUE.—For purposes of section 1391(b) of title

13 28, United States Code, the Bank shall be deemed to be a

14 resident of the judicial district in which the principal office

15 of the Bank in the United States, or its agent appointed

16 for the purpose of accepting service or notice of service, is

17 located.

18 SEC. 708. EFFECTIVENESS OF AGREEMENT.

19 The Agreement shall have full force and effect in the

20 United States, its territories and possessions, and the Com21 monwealth of Puerto Rico, upon acceptance of membership

22 by the United States in the Bank and the entry into force

23 of the Agreement.
260

HR 3540 PP

1 SEC. 709. EXEMPTION FROM SECURITIES LAWS FOR CER2 TAIN SECURITIES ISSUED BY THE BANK; RE3 PORTS REQUIRED.

4 (a) EXEMPTION FROM SECURITIES LAWS; REPORTS TO

5 SECURITIES AND EXCHANGE COMMISSION.—Any securities

6 issued by the Bank (including any guaranty by the Bank,

7 whether or not limited in scope) in connection with borrow8 ing of funds, or the guarantee of securities as to both prin9 cipal and interest, shall be deemed to be exempted securities

10 within the meaning of section 3(a)(2) of the Securities Act

11 of 1933 and section 3(a)(12) of the Securities Exchange Act

12 of 1934. The Bank shall file with the Securities and Ex13 change Commission such annual and other reports with re14 gard to such securities as the Commission shall determine

15 to be appropriate in view of the special character of the

16 Bank and its operations and necessary in the public inter17 est or for the protection of investors.

18 (b) AUTHORITY OF SECURITIES AND EXCHANGE COM19 MISSION TO SUSPEND EXEMPTION; REPORTS TO THE CON20 GRESS.—The Securities and Exchange Commission, acting

21 in consultation with such agency or officer as the President

22 shall designate, may suspend the provisions of subsection

23 (a) at any time as to any or all securities issued or guaran24 teed by the Bank during the period of such suspension. The

25 Commission shall include in its annual reports to the Con-
261

HR 3540 PP

1 gress such information as it shall deem advisable with re2 gard to the operations and effect of this section.

3 SEC. 710. TECHNICAL AMENDMENTS.

4 (a) ANNUAL REPORT REQUIRED ON PARTICIPATION OF

5 THE UNITED STATES IN THE BANK.—Section 1701 (c)(2)

6 of the International Financial Institutions Act (22 U.S.C.

7 262r(c)(2)) is amended by inserting ‘‘Bank for Economic

8 Cooperation and Development in the Middle East and

9 North Africa,’’ after ‘‘Inter-American Development Bank’’.

10 (b) EXEMPTION FROM LIMITATIONS AND RESTRIC11 TIONS ON POWER OF NATIONAL, BANKING ASSOCIATIONS

12 TO DEAL IN AND UNDERWRITE INVESTMENT SECURITIES

13 OF THE BANK.—The seventh sentence of paragraph 7 of sec14 tion 5136 of the Revised Statutes of the United States (12

15 U.S.C. 24) is amended by inserting ‘‘Bank for Economic

16 Cooperation and Development in the Middle East and

17 North Africa,’’ after ‘‘the Inter-American Development

18 Bank’’.

19 (c) BENEFITS FOR UNITED STATES CITIZEN-REP20 RESENTATIVES TO THE BANK.—Section 51 of Public Law

21 91–599 (22 U.S.C. 276c–2) is amended by inserting ‘‘the

22 Bank for Economic Cooperation and Development in the

23 Middle East and North Africa,’’ after ‘‘the Inter-American

24 Development Bank,’’.
262

HR 3540 PP

1 This Act may be cited as the ‘‘Foreign Operations,

2 Export Financing, and Related Programs Appropriations

3 Act, 1997’’.

Passed the House of Representatives , 1996.

Attest: ROBIN H. CARLE,

Clerk.

Passed the Senate (legislative day, ),

1996.

Attest: KELLY D. JOHNSTON,

Secretary.