Union Calendar No. 298

104TH CONGRESS

2D SESSION H. R. 3540

[Report No. 104–600]

A BILL

Making appropriations for foreign operations, exother purposes. cal year ending September 30, 1997, and for port financing, and related programs for the fisMAY 29, 1996

Committed to the Committee of the Whole House on the

State of the Union and ordered to be printed
IB

Union Calendar No. 298

104TH CONGRESS

2D SESSION H. R. 3540

[Report No. 104–600]

Making appropriations for foreign operations, export financing, and related

programs for the fiscal year ending September 30, 1997, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 29, 1996

Mr. CALLAHAN, from the Committee on Appropriations, reported the following

bill; which was committed to the Committee of the Whole House on the

State of the Union and ordered to be printed

A BILL

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 That 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:
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1 TITLE I—EXPORT AND INVESTMENT

2 ASSISTANCE

3 EXPORT-IMPORT BANK OF THE UNITED STATES

4 The Export-Import Bank of the United States is au5 thorized to make such expenditures within the limits of

6 funds and borrowing authority available to such corpora7 tion, and in accordance with law, and to make such con8 tracts and commitments without regard to fiscal year limi9 tations, as provided by section 104 of the Government

10 Corporation Control Act, as may be necessary in carrying

11 out the program for the current fiscal year for such cor12 poration: Provided, That none of the funds available dur13 ing the current fiscal year may be used to make expendi14 tures, contracts, or commitments for the export of nuclear

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

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

17 Treaty on the Non-Proliferation of Nuclear Weapons eligi18 ble to receive economic or military assistance under this

19 Act that has detonated a nuclear explosive after the date

20 of enactment of this Act.

21 SUBSIDY APPROPRIATION

22 For the cost of direct loans, loan guarantees, insur23 ance, and tied-aid grants as authorized by section 10 of

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

25 $726,000,000 to remain available until September 30,

26 1998: Provided, That such costs, including the cost of
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1 modifying such loans, shall be as defined in section 502

2 of the Congressional Budget Act of 1974: Provided fur3 ther, That such sums shall remain available until 2012 for

4 the disbursement of direct loans, loan guarantees, insur5 ance and tied-aid grants obligated in fiscal years 1997 and

6 1998: Provided further, That up to $50,000,000 of funds

7 appropriated by this paragraph shall remain available

8 until expended and may be used for tied-aid grant pur9 poses: Provided further, That none of the funds appro10 priated by this paragraph may be used for tied-aid credits

11 or grants except through the regular notification proce12 dures of the Committees on Appropriations: Provided fur13 ther, That funds appropriated by this paragraph are made

14 available notwithstanding section 2(b)(2) of the Export15 Import Bank Act of 1945, in connection with the purchase

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

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

18 ADMINISTRATIVE EXPENSES

19 For administrative expenses to carry out the direct

20 and guaranteed loan and insurance programs (to be com21 puted on an accrual basis), including hire of passenger

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

23 3109, and not to exceed $20,000 for official reception and

24 representation expenses for members of the Board of Di25 rectors, $47,614,000: Provided, That necessary expenses

26 (including special services performed on a contract or fee
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1 basis, but not including other personal services) in connec2 tion with the collection of moneys owed the Export-Import

3 Bank, repossession or sale of pledged collateral or other

4 assets acquired by the Export-Import Bank in satisfaction

5 of moneys owed the Export-Import Bank, or the investiga6 tion or appraisal of any property, or the evaluation of the

7 legal or technical aspects of any transaction for which an

8 application for a loan, guarantee or insurance commitment

9 has been made, shall be considered nonadministrative ex10 penses for the purposes of this heading: Provided further,

11 That, notwithstanding subsection (b) of section 117 of the

12 Export Enhancement Act of 1992, subsection (a) thereof

13 shall remain in effect until October 1, 1997.

14 OVERSEAS PRIVATE INVESTMENT CORPORATION

15 NONCREDIT ACCOUNT

16 The Overseas Private Investment Corporation is au17 thorized to make, without regard to fiscal year limitations,

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

19 commitments within the limits of funds available to it and

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

21 That the amount available for administrative expenses to

22 carry out the credit and insurance programs (including an

23 amount for official reception and representation expenses

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

25 $30,000,000: Provided further, That project-specific trans26 action costs, including direct and indirect costs incurred
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1 in claims settlements, and other direct costs associated

2 with services provided to specific investors or potential in3 vestors pursuant to section 234 of the Foreign Assistance

4 Act of 1961, shall not be considered administrative ex5 penses for the purposes of this heading.

6 PROGRAM ACCOUNT

7 For the cost of direct and guaranteed loans,

8 $72,000,000, as authorized by section 234 of the Foreign

9 Assistance Act of 1961: Provided, That such costs, includ10 ing the cost of modifying such loans, shall be as defined

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

12 Provided further, That such sums shall be available for di13 rect loan obligations and loan guaranty commitments in14 curred or made during fiscal years 1997 and 1998: Pro15 vided further, That such sums shall remain available

16 through fiscal year 2005 for the disbursement of direct

17 and guaranteed loans obligated in fiscal year 1997, and

18 through fiscal year 2006 for the disbursement of direct

19 and guaranteed loans obligated in fiscal year 1998. In ad20 dition, such sums as may be necessary for administrative

21 expenses to carry out the credit program may be derived

22 from amounts available for administrative expenses to

23 carry out the credit and insurance programs in the Over24 seas Private Investment Corporation Noncredit Account

25 and merged with said account.
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1 FUNDS APPROPRIATED TO THE PRESIDENT

2 TRADE AND DEVELOPMENT AGENCY

3 For necessary expenses to carry out the provisions

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

5 $38,000,000, to remain available for obligation until Sep6 tember 30, 1998: Provided, That the Trade and Develop7 ment Agency may receive reimbursements from corpora8 tions and other entities for the costs of grants for feasibil9 ity studies and other project planning services, to be de10 posited as an offsetting collection to this account and to

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

12 necessary expenses under this paragraph: Provided fur13 ther, That such reimbursements shall not cover, or be allo14 cated against, direct or indirect administrative costs of the

15 agency.

16 TITLE II—BILATERAL ECONOMIC ASSISTANCE

17 FUNDS APPROPRIATED TO THE PRESIDENT

18 For expenses necessary to enable the President to

19 carry out the provisions of the Foreign Assistance Act of

20 1961, and for other purposes, to remain available until

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

22 follows:

23 AGENCY FOR INTERNATIONAL DEVELOPMENT

24 CHILD SURVIVAL AND DISEASE PROGRAMS FUND

25 For necessary expenses to carry out the provisions

26 of part I and chapter 4 of part II of the Foreign Assist-
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1 ance Act of 1961, for child survival, basic education, as2 sistance to combat tropical and other diseases, and related

3 activities, in addition to funds otherwise available for such

4 purposes, $600,000,000, to remain available until ex5 pended: Provided, That this amount shall be made avail6 able for such activities as (1) immunization programs, (2)

7 oral rehydration programs, (3) health and nutrition pro8 grams, and related education programs, which address the

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

10 programs, (5) assistance for displaced and orphaned chil11 dren, (6) programs for the prevention, treatment, and con12 trol of, and research on, tuberculosis, HIV/AIDS, polio,

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

14 for basic education programs for children, and (8) a con15 tribution on a grant basis to the United Nations Chil16 dren’s Fund (UNICEF) pursuant to section 301 of the

17 Foreign Assistance Act of 1961.

18 DEVELOPMENT ASSISTANCE

19 (INCLUDING TRANSFER OF FUNDS)

20 For necessary expenses to carry out the provisions

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

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

23 remain available until September 30, 1998: Provided,

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

25 any unobligated balances from prior appropriations may

26 be made available to any organization or program which,
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1 as determined by the President of the United States, sup2 ports or participates in the management of a program of

3 coercive abortion or involuntary sterilization: Provided fur4 ther, That none of the funds made available under this

5 heading may be used to pay for the performance of abor6 tion as a method of family planning or to motivate or co7 erce any person to practice abortions; and that in order

8 to reduce reliance on abortion in developing nations, funds

9 shall be available only to voluntary family planning

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

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

12 planning methods and services: Provided further, That in

13 awarding grants for natural family planning under section

14 104 of the Foreign Assistance Act of 1961 no applicant

15 shall be discriminated against because of such applicant’s

16 religious or conscientious commitment to offer only natu17 ral family planning; and, additionally, all such applicants

18 shall comply with the requirements of the previous proviso:

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

20 Act authorizing or appropriating funds for foreign oper21 ations, export financing, and related programs, the term

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

23 shall not be construed to prohibit the provision, consistent

24 with local law, of information or counseling about all preg25 nancy options: Provided further, That nothing in this para-
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1 graph shall be construed to alter any existing statutory

2 prohibitions against abortion under section 104 of the

3 Foreign Assistance Act of 1961: Provided further, That

4 the total amount of funds appropriated under this heading

5 and under the heading ‘‘Child Survival and Disease Pro6 grams Fund’’ should be made available for each of the

7 sub-Saharan Africa and Latin America and Caribbean re8 gions in at least the same proportion as the total amount

9 identified in the fiscal year 1997 draft congressional pres10 entation document for development assistance for each

11 such region is to the total amount requested for develop12 ment assistance for such fiscal year: Provided further,

13 That, notwithstanding section 109 of the Foreign Assist14 ance Act of 1961, of the funds appropriated under this

15 heading not to exceed a total of $12,000,000 may be

16 transferred to ‘‘Debt restructuring’’, and that any such

17 transfer of funds shall be subject to the regular notifica18 tion procedures of the Committees on Appropriations.

19 PRIVATE AND VOLUNTARY ORGANIZATIONS

20 None of the funds appropriated or otherwise made

21 available by this Act for development assistance may be

22 made available to any United States private and voluntary

23 organization, except any cooperative development organi24 zation, which obtains less than 20 per centum of its total

25 annual funding for international activities from sources

26 other than the United States Government: Provided, That
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1 the requirements of the provisions of section 123(g) of the

2 Foreign Assistance Act of 1961 and the provisions on pri3 vate and voluntary organizations in title II of the ‘‘Foreign

4 Assistance and Related Programs Appropriations Act,

5 1985’’ (as enacted in Public Law 98–473) shall be super6 seded by the provisions of this section, except that the au7 thority contained in the last sentence of section 123(g)

8 may be exercised by the Administrator with regard to the

9 requirements of this paragraph.

10 Funds appropriated or otherwise made available

11 under title II of this Act should be made available to pri12 vate and voluntary organizations at a level which is equiv13 alent to the level provided in fiscal year 1995. Such private

14 and voluntary organizations shall include those which op15 erate on a not-for-profit basis, receive contributions from

16 private sources, receive voluntary support from the public

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

18 successful providers of development assistance.

19 INTERNATIONAL DISASTER ASSISTANCE

20 For necessary expenses for international disaster re21 lief, rehabilitation, and reconstruction assistance pursuant

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

23 amended, $190,000,000, to remain available until ex24 pended.
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1 DEBT RESTRUCTURING

2 For the cost, as defined in section 502 of the Con3 gressional Budget Act of 1974, of modifying direct loans

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

5 which funds have been appropriated or otherwise made

6 available for programs within the International Affairs

7 Budget Function 150, including the cost of selling, reduc8 ing, or canceling amounts, through debt buybacks and

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

10 concessional loans made to eligible Latin American and

11 Caribbean countries, pursuant to part IV of the Foreign

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

13 until expended: Provided, That none of the funds appro14 priated under this heading shall be obligated or expended

15 except as provided through the regular notification proce16 dures of the Committees on Appropriations.

17 MICRO AND SMALL ENTERPRISE DEVELOPMENT PROGRAM

18 ACCOUNT

19 For the cost of direct loans and loan guarantees,

20 $1,500,000, as authorized by section 108 of the Foreign

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

22 costs shall be as defined in section 502 of the Congres23 sional Budget Act of 1974: Provided further, That guaran24 tees of loans made under this heading in support of micro25 enterprise activities may guarantee up to 70 percent of

26 the principal amount of any such loans notwithstanding
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1 section 108 of the Foreign Assistance Act of 1961. In ad2 dition, for administrative expenses to carry out programs

3 under this heading, $500,000, all of which may be trans4 ferred to and merged with the appropriation for Operating

5 Expenses of the Agency for International Development:

6 Provided further, That funds made available under this

7 heading shall remain available until September 30, 1998.

8 HOUSING GUARANTY PROGRAM ACCOUNT

9 For the cost, as defined in section 502 of the Con10 gressional Budget Act of 1974, of guaranteed loans au11 thorized by sections 221 and 222 of the Foreign Assist12 ance Act of 1961, $500,000, to remain available until Sep13 tember 30, 1998: Provided, That these funds are available

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

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

16 addition, for administrative expenses to carry out guaran17 teed loan programs, $6,000,000, all of which may be

18 transferred to and merged with the appropriation for Op19 erating Expenses of the Agency for International Develop20 ment: Provided further, That commitments to guarantee

21 loans under this heading may be entered into notwith22 standing the second and third sentences of section 222(a)

23 and, with regard to programs for the benefit of South Af24 ricans disadvantaged by apartheid, section 223(j) of the

25 Foreign Assistance Act of 1961: Provided further, That

26 funds appropriated under this heading for the cost of
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1 guaranteed loans may be made available for obligation

2 only for activities in South Africa.

3 PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND

4 DISABILITY FUND

5 For payment to the ‘‘Foreign Service Retirement and

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

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

8 OPERATING EXPENSES OF THE AGENCY FOR

9 INTERNATIONAL DEVELOPMENT

10 For necessary expenses to carry out the provisions

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

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

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

14 the funds appropriated by this Act for programs adminis15 tered by the Agency for International Development (AID)

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

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

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

19 Administrator of the Agency or the Administrator’s des20 ignee: Provided further, That funds appropriated or other21 wise made available by this Act may be made available

22 for expenses necessary to relocate the Agency for Inter23 national Development, or any part of that agency, to the

24 building at the Federal Triangle in Washington, District

25 of Columbia, only pursuant to an authorization of appro26 priations for such purpose or upon a written certification
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1 and report to the Committees on Appropriations by the

2 Director of the Office of Management and Budget that

3 such relocation will result in savings to the United States

4 Government compared to other alternatives to such reloca5 tion.

6 OPERATING EXPENSES OF THE AGENCY FOR INTER7 NATIONAL DEVELOPMENT OFFICE OF INSPECTOR

8 GENERAL

9 For necessary expenses to carry out the provisions

10 of section 667, $30,000,000, to remain available until Sep11 tember 30, 1998, which sum shall be available for the Of12 fice of the Inspector General of the Agency for Inter13 national Development.

14 OTHER BILATERAL ECONOMIC ASSISTANCE

15 ECONOMIC SUPPORT FUND

16 For necessary expenses to carry out the provisions

17 of chapter 4 of part II, $2,336,000,000, to remain avail18 able until September 30, 1998: Provided, That any funds

19 appropriated under this heading that are made available

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

21 transfer and shall be disbursed within thirty days of enact22 ment of this Act or by October 31, 1996, whichever is

23 later: Provided further, That none of the funds appro24 priated under this heading shall be made available for

25 Zaire.
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1 INTERNATIONAL FUND FOR IRELAND

2 For necessary expenses to carry out the provisions

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

4 1961, $19,600,000, which shall be available for the United

5 States contribution to the International Fund for Ireland

6 and shall be made available in accordance with the provi7 sions of the Anglo-Irish Agreement Support Act of 1986

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

9 be expended at the minimum rate necessary to make time10 ly payment for projects and activities: Provided further,

11 That funds made available under this heading shall re12 main available until September 30, 1998.

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

17 for 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 Eastern Europe and the Baltic States.

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

23 appropriations Acts that are or have been made available

24 for an Enterprise Fund may be deposited by such Fund

25 in interest-bearing accounts prior to the Fund’s disburse26 ment of such funds for program purposes. The Fund may
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1 retain for such program purposes any interest earned on

2 such deposits without returning such interest to the Treas3 ury of the United States and without further appropria4 tion by the Congress. Funds made available for Enterprise

5 Funds shall be expended at the minimum rate necessary

6 to make timely payment for projects and activities.

7 (c) Funds appropriated under this heading shall be

8 considered to be economic assistance under the Foreign

9 Assistance Act of 1961 for purposes of making available

10 the administrative authorities contained in that Act for

11 the use of economic assistance.

12 (d) None of the funds appropriated under this head13 ing may be made available for new housing construction

14 or repair or reconstruction of existing housing in Bosnia

15 and Herzegovina unless directly related to the efforts of

16 United States troops to promote peace in said country.

17 (e) With regard to funds appropriated or otherwise

18 made available under this heading for the economic revi19 talization program in Bosnia and Herzegovina, and local

20 currencies generated by such funds (including the conver21 sion of funds appropriated under this heading into cur22 rency used by Bosnia and Herzegovina as local currency

23 and local currency returned or repaid under such pro24 gram)—
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1 (1) the Administrator of the Agency for Inter2 national Development shall provide written approval

3 for grants and loans prior to the obligation and ex4 penditure of funds for such purposes, and prior to

5 the use of funds that have been returned or repaid

6 to any lending facility or grantee; and

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

8 shall apply.

9 ASSISTANCE FOR THE NEW INDEPENDENT STATES OF

10 THE FORMER SOVIET UNION

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

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

13 1961 and the FREEDOM Support Act, for assistance for

14 the new independent states of the former Soviet Union

15 and for related programs, $590,000,000, to remain avail16 able until September 30, 1998: Provided, That the provi17 sions of section 498B(j) of the Foreign Assistance Act of

18 1961 shall apply to funds appropriated by this paragraph.

19 (b) None of the funds appropriated under this head20 ing shall be transferred to the Government of Russia—

21 (1) unless that Government is making progress

22 in implementing comprehensive economic reforms

23 based on market principles, private ownership, nego24 tiating repayment of commercial debt, respect for

25 commercial contracts, and equitable treatment of

26 foreign private investment; and
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1 (2) if that Government applies or transfers

2 United States assistance to any entity for the pur3 pose of expropriating or seizing ownership or control

4 of assets, investments, or ventures.

5 (c) Funds may be furnished without regard to sub6 section (b) if the President determines that to do so is

7 in the national interest.

8 (d) None of the funds appropriated under this head9 ing shall be made available to any government of the new

10 independent states of the former Soviet Union if that gov11 ernment directs any action in violation of the territorial

12 integrity or national sovereignty of any other new inde13 pendent state, such as those violations included in the Hel14 sinki Final Act: Provided, That such funds may be made

15 available without regard to the restriction in this sub16 section if the President determines and reports to the

17 Committees on Appropriations that to do so is in the na18 tional security interest of the United States: Provided fur19 ther, That the restriction of this subsection shall not apply

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

21 for purposes of humanitarian, disaster and refugee relief.

22 (e) None of the funds appropriated under this head23 ing for the new independent states of the former Soviet

24 Union shall be made available for any state to enhance
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1 its military capability: Provided, That this restriction does

2 not apply to demilitarization or nonproliferation programs.

3 (f) Funds appropriated under this heading shall be

4 subject to the regular notification procedures of the Com5 mittees on Appropriations.

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

7 to the new independent states of the former Soviet Union

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

9 to environment and natural resources) of the Foreign As10 sistance Act of 1961.

11 (h) Funds appropriated under this heading may be

12 made available for assistance for Mongolia.

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

14 to the new independent states of the former Soviet Union

15 shall be provided to the maximum extent feasible through

16 the private sector, including small- and medium-size busi17 nesses, entrepreneurs, and others with indigenous private

18 enterprises in the region, intermediary development orga19 nizations committed to private enterprise, and private vol20 untary organizations: Provided, That grantees and con21 tractors should, to the maximum extent possible, place in

22 key staff positions specialists with prior on the ground ex23 pertise in the region of activity and fluency in one of the

24 local languages.
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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-
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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
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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-
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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-
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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
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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
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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
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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: Provided, That none of the funds appro25 priated under this heading shall be available for Zaire and
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1 Guatemala: Provided further, That funds appropriated

2 under this heading for grant financed military education

3 and training for Indonesia may only be available for ex4 panded international military education and training.

5 FOREIGN MILITARY FINANCING PROGRAM

6 For expenses necessary for grants to enable the

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

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

9 funds appropriated by this paragraph that are made avail10 able for Israel and Egypt shall be made available only as

11 grants: Provided further, That the funds appropriated by

12 this paragraph that are made available for Israel shall be

13 disbursed within thirty days of enactment of this Act or

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

15 That to the extent that the Government of Israel requests

16 that funds be used for such purposes, grants made avail17 able for Israel by this paragraph shall, as agreed by Israel

18 and the United States, be available for advanced weapons

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

20 available for the procurement in Israel of defense articles

21 and defense services, including research and development:

22 Provided further, That funds made available under this

23 paragraph shall be nonrepayable notwithstanding any re24 quirement in section 23 of the Arms Export Control Act:

25 Provided further, That none of the funds made available

26 under this heading shall be available for any non-NATO
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1 country participating in the Partnership for Peace Pro2 gram except through the regular notification procedures

3 of the Committees on Appropriations.

4 For the cost, as defined in section 502 of the Con5 gressional Budget Act of 1974, of direct loans authorized

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

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

8 funds are available to subsidize gross obligations for the

9 principal amount of direct loans of not to exceed

10 $323,815,000: Provided further, That the rate of interest

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

12 average market yield on outstanding marketable obliga13 tions of the United States of comparable maturities: Pro14 vided further, That funds appropriated under this heading

15 shall be made available for Greece and Turkey only on

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

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

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

19 None of the funds made available under this heading

20 shall be available to finance the procurement of defense

21 articles, defense services, or design and construction serv22 ices that are not sold by the United States Government

23 under the Arms Export Control Act unless the foreign

24 country proposing to make such procurements has first

25 signed an agreement with the United States Government
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1 specifying the conditions under which such procurements

2 may be financed with such funds: Provided, That all coun3 try and funding level increases in allocations shall be sub4 mitted through the regular notification procedures of sec5 tion 515 of this Act: Provided further, That funds made

6 available under this heading shall be obligated upon appor7 tionment in accordance with paragraph (5)(C) of title 31,

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

9 That none of the funds appropriated under this heading

10 shall be available for Zaire, Sudan, Liberia, and Guate11 mala: Provided further, That only those countries for

12 which assistance was justified for the ‘‘Foreign Military

13 Sales Financing Program’’ in the fiscal year 1989 con14 gressional presentation for security assistance programs

15 may utilize funds made available under this heading for

16 procurement of defense articles, defense services or design

17 and construction services that are not sold by the United

18 States Government under the Arms Export Control Act:

19 Provided further, That, subject to the regular notification

20 procedures of the Committees on Appropriations, funds

21 made available under this heading for the cost of direct

22 loans may also be used to supplement the funds available

23 under this heading for grants, and funds made available

24 under this heading for grants may also be used to supple25 ment the funds available under this heading for the cost
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1 of direct loans: Provided further, That funds appropriated

2 under this heading shall be expended at the minimum rate

3 necessary to make timely payment for defense articles and

4 services: Provided further, That not more than

5 $23,250,000 of the funds appropriated under this heading

6 may be obligated for necessary expenses, including the

7 purchase of passenger motor vehicles for replacement only

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

9 of administering military assistance and sales: Provided

10 further, That not more than $355,000,000 of funds real11 ized pursuant to section 21(e)(1)(A) of the Arms Export

12 Control Act may be obligated for expenses incurred by the

13 Department of Defense during fiscal year 1997 pursuant

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

15 that this limitation may be exceeded only through the reg16 ular notification procedures of the Committees on Appro17 priations.

18 PEACEKEEPING OPERATIONS

19 For necessary expenses to carry out the provisions

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

21 $65,000,000: Provided, That none of the funds appro22 priated under this paragraph shall be obligated or ex23 pended except as provided through the regular notification

24 procedures of the Committees on Appropriations.
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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
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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.
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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.
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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.
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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).
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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.
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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
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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
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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-
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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
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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.
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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-
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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
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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-
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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,
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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
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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
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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
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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
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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).
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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.
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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.
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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.
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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
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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-
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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.
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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
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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—
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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-
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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-
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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
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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,
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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
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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-
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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.
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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;
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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
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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
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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
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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-
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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
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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
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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-
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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
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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
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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
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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.
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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
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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
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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
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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 $25,000,000 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
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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-
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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.
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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 may be made available with9 out regard to the restriction in subsection (a) if the Presi10 dent determines that to do so is in the national security

11 interest of the United States.

12 WITHHOLDING OF ASSISTANCE TO COUNTRIES

13 SUPPORTING NUCLEAR PLANT IN CUBA

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

15 withhold from assistance made available with funds appro16 priated or made available pursuant to this Act an amount

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

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

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

20 completion of the Cuban nuclear facility at Juragua, near

21 Cienfuegos, Cuba.

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

23 to withhold assistance shall not apply with respect to—

24 (1) assistance to meet urgent humanitarian

25 needs including disaster and refugee relief;
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1 (2) democratic political reform and rule of law

2 activities;

3 (3) support for private sector and nongovern4 mental organizations that are independent of govern5 ment control;

6 (4) the development of a free market economic

7 system; and

8 (5) assistance for the purposes described in the

9 Cooperative Threat Reduction Act of 1993 (title XII

10 of Public Law 103–160).

11 EQUITABLE ALLOCATION OF FUNDS

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

13 appropriated by this Act to carry out the provisions of sec14 tions 103 through 106 and chapter 4 of part II of the

15 Foreign Assistance Act of 1961, that are made available

16 for Latin America and the Caribbean region may be made

17 available, through bilateral and Latin America and the

18 Caribbean regional programs, to provide assistance for

19 any country in such region.

20 PURCHASE OF AMERICAN-MADE EQUIPMENT AND

21 PRODUCTS

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

23 of the Congress that, to the greatest extent practicable,

24 all equipment and products purchased with funds made

25 available in this Act should be American-made.
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1 (b) NOTICE REQUIREMENT.—In providing financial

2 assistance to, or entering into any contract with, any en3 tity using funds made available in this Act, the head of

4 each Federal agency, to the greatest extent practicable,

5 shall provide to such entity a notice describing the state6 ment made in subsection (a) by the Congress.

7 LIMITATION OF FUNDS FOR NORTH AMERICAN

8 DEVELOPMENT BANK

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

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

11 and made available for the Community Adjustment and

12 Investment Program shall be used for purposes other than

13 those set out in the binational agreement establishing the

14 Bank.

15 INTERNATIONAL DEVELOPMENT ASSOCIATION

16 SEC. 564. In order to pay for the United States con17 tribution to the tenth replenishment of the resources of

18 the International Development Association authorized in

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

20 be appropriated, without fiscal year limitation,

21 $525,000,000 for payment by the Secretary of the Treas22 ury.

23 SPECIAL DEBT RELIEF FOR THE POOREST

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

25 President may reduce amounts owed to the United States
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1 (or any agency of the United States) by an eligible country

2 as a result of—

3 (1) guarantees issued under sections 221 and

4 222 of the Foreign Assistance Act of 1961; or

5 (2) credits extended or guarantees issued under

6 the Arms Export Control Act.

7 (b) LIMITATIONS.—

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

9 may be exercised only to implement multilateral offi10 cial debt relief and referendum agreements, com11 monly referred to as ‘‘Paris Club Agreed Minutes’’.

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

13 may be exercised only in such amounts or to such

14 extent as is provided in advance by appropriations

15 Acts.

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

17 may be exercised only with respect to countries with

18 heavy debt burdens that are eligible to borrow from

19 the International Development Association, but not

20 from the International Bank for Reconstruction and

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

22 countries.

23 (c) CONDITIONS.—The authority provided by sub24 section (a) may be exercised only with respect to a country

25 whose government—
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1 (1) does not have an excessive level of military

2 expenditures;

3 (2) has not repeatedly provided support for acts

4 of international terrorism;

5 (3) is not failing to cooperate on international

6 narcotics control matters;

7 (4) (including its military or other security

8 forces) does not engage in a consistent pattern of

9 gross violations of internationally recognized human

10 rights; and

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

12 application of section 527 of the Foreign Relations

13 Authorization Act, fiscal years 1994 and 1995.

14 (d) AVAILABILITY OF FUNDS.—The authority pro15 vided by subsection (a) may be used only with regard to

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

17 restructuring’’.

18 (e) CERTAIN PROHIBITIONS INAPPLICABLE.—A re19 duction of debt pursuant to subsection (a) shall not be

20 considered assistance for purposes of any provision of law

21 limiting assistance to a country. The authority provided

22 by subsection (a) may be exercised notwithstanding sec23 tion 620(r) of the Foreign Assistance Act of 1961.

24 AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES

25 SEC. 566. (a) LOANS ELIGIBLE FOR SALE, REDUC26 TION, OR CANCELLATION.—
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1 (1) AUTHORITY TO SELL, REDUCE, OR CANCEL

2 CERTAIN LOANS.—Notwithstanding any other provi3 sion of law, the President may, in accordance with

4 this section, sell to any eligible purchaser any

5 concessional loan or portion thereof made before

6 January 1, 1995, pursuant to the Foreign Assist7 ance Act of 1961, to the government of any eligible

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

9 on receipt of payment from an eligible purchaser, re10 duce or cancel such loan or portion thereof, only for

11 the purpose of facilitating—

12 (A) debt-for-equity swaps, debt-for-develop13 ment swaps, or debt-for-nature swaps; or

14 (B) a debt buyback by an eligible country

15 of its own qualified debt, only if the eligible

16 country uses an additional amount of the local

17 currency of the eligible country, equal to not

18 less than 40 percent of the price paid for such

19 debt by such eligible country, or the difference

20 between the price paid for such debt and the

21 face value of such debt, to support activities

22 that link conservation and sustainable use of

23 natural resources with local community develop24 ment, and child survival and other child devel25 opment, in a manner consistent with sections
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1 707 through 710 of the Foreign Assistance Act

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

3 would not contravene any term or condition of

4 any prior agreement relating to such loan.

5 (2) TERMS AND CONDITIONS.—Notwithstanding

6 any other provision of law, the President shall, in ac7 cordance with this section, establish the terms and

8 conditions under which loans may be sold, reduced,

9 or canceled pursuant to this section.

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

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

12 1961, shall notify the administrator of the agency

13 primarily responsible for administering part I of the

14 Foreign Assistance Act of 1961 of purchasers that

15 the President has determined to be eligible, and

16 shall direct such agency to carry out the sale, reduc17 tion, or cancellation of a loan pursuant to this sec18 tion. Such agency shall make an adjustment in its

19 accounts to reflect the sale, reduction, or cancella20 tion.

21 (4) LIMITATION.—The authorities of this sub22 section shall be available only to the extent that ap23 propriations for the cost of the modification, as de24 fined in section 502 of the Congressional Budget Act

25 of 1974, are made in advance.
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1 (b) DEPOSIT OF PROCEEDS.—The proceeds from the

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

3 or canceled pursuant to this section shall be deposited in

4 the United States Government account or accounts estab5 lished for the repayment of such loan.

6 (c) ELIGIBLE PURCHASERS.—A loan may be sold

7 pursuant to subsection (a)(1)(A) only to a purchaser who

8 presents plans satisfactory to the President for using the

9 loan for the purpose of engaging in debt-for-equity swaps,

10 debt-for-development swaps, or debt-for-nature swaps.

11 (d) DEBTOR CONSULTATIONS.—Before the sale to

12 any eligible purchaser, or any reduction or cancellation

13 pursuant to this section, of any loan made to an eligible

14 country, the President should consult with the country

15 concerning the amount of loans to be sold, reduced, or

16 canceled and their uses for debt-for-equity swaps, debt17 for-development swaps, or debt-for-nature swaps.

18 (e) AVAILABILITY OF FUNDS.—The authority pro19 vided by subsection (a) may be used only with regard to

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

21 restructuring’’.

22 LIBERIA

23 SEC. 567. Funds appropriated by this Act may be

24 made available for assistance for Liberia notwithstanding

25 section 620(q) of the Foreign Assistance Act of 1961 and

26 section 512 of this Act.
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1 GUATEMALA

2 SEC. 568. (a) Funds provided in this Act may be

3 made available for the Guatemalan military forces, and

4 the restrictions on Guatemala under the headings ‘‘Inter5 national Military Education and Training’’ and ‘‘Foreign

6 Military Financing Program’’ shall not apply, only if the

7 President determines and certifies to the Congress that

8 the Guatemalan military is cooperating with efforts to re9 solve human rights abuses which elements of the Guate10 malan military forces are alleged to have committed, or11 dered or attempted to thwart the investigation of.

12 (b) The prohibition contained in subsection (a) shall

13 not apply to funds made available to implement a ceasefire

14 or peace agreement.

15 (c) Any funds made available pursuant to subsections

16 (a) or (b) shall be subject to the regular notification proce17 dures of the Committees on Appropriations.

18 (d) Any funds made available pursuant to subsections

19 (a) and (b) for international military education and train20 ing may only be for expanded international military edu21 cation and training.

22 SANCTIONS AGAINST COUNTRIES HARBORING WAR

23 CRIMINALS

24 SEC. 569. (a) BILATERAL ASSISTANCE.—The Presi25 dent is authorized to withhold funds appropriated by this

26 Act under the Foreign Assistance Act of 1961 or the Arms
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1 Export Control Act for any country described in sub2 section (c).

3 (b) MULTILATERAL ASSISTANCE.—The Secretary of

4 the Treasury should instruct the United States executive

5 directors of the international financial institutions to work

6 in opposition to, and vote against, any extension by such

7 institutions of financing or financial or technical assist8 ance to any country described in subsection (c).

9 (c) SANCTIONED COUNTRIES.—A country described

10 in this subsection is a country the government of which

11 knowingly grants sanctuary to persons in its territory for

12 the purpose of evading prosecution, where such persons—

13 (1) have been indicted by the International

14 Criminal Tribunal for the former Yugoslavia, the

15 International Criminal Tribunal for Rwanda, or any

16 other international tribunal with similar standing

17 under international law, or

18 (2) have been indicted for war crimes or crimes

19 against humanity committed during the period be20 ginning March 23, 1933 and ending on May 8, 1945

21 under the direction of, or in association with—

22 (A) the Nazi government of Germany;

23 (B) any government in any area occupied

24 by the military forces of the Nazi government

25 of Germany;
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1 (C) any government which was established

2 with the assistance or cooperation of the Nazi

3 government; or

4 (D) any government which was an ally of

5 the Nazi government of Germany.

6 LIMITATION ON ASSISTANCE FOR HAITI

7 SEC. 570. (a) LIMITATION.—None of the funds ap8 propriated or otherwise made available by this Act, may

9 be provided to the Government of Haiti until the President

10 reports to Congress that—

11 (1) the Government is conducting thorough in12 vestigations of extrajudicial and political killings;

13 and

14 (2) the Government is cooperating with United

15 States authorities in the investigations of political

16 and extrajudicial killings.

17 (b) Nothing in this section shall be construed to re18 strict the provision of humanitarian or electoral assist19 ance.

20 (c) The President may waive the requirements of this

21 section on a quarterly basis if he determines and certifies

22 to the appropriate committees of Congress that it is in

23 the national interest of the United States.

24 (d) The authority contained in the previous sub25 section to make such a determination may be exercised

26 by the President only and may not be delegated.
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1 LIMITATION OF ASSISTANCE TO TURKEY

2 SEC. 571. Not more than $25,000,000 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.

6 REPORTS REGARDING HONG KONG

7 SEC. 572. (a) Section 301 of the United States-Hong

8 Kong Policy Act of 1992 (22 U.S.C. 5731) is amended

9 in the text above paragraph (1) by inserting ‘‘March 31,

10 1997,’’ after ‘‘March 31, 1996,’’.

11 (b) In light of the deficiencies in reports submitted

12 to the Congress pursuant to section 301 of the United

13 States-Hong Kong Policy Act (22 U.S.C. 5731), the Con14 gress directs that the additional report required to be sub15 mitted under such section by subsection (a) of this section

16 include detailed information on the status of, and other

17 developments affecting, implementation of the Sino-Brit18 ish Joint Declaration on the Question of Hong Kong, in19 cluding—

20 (1) the Basic Law and its consistency with the

21 Joint Declaration;

22 (2) Beijing’s plans to replace the elected legisla23 ture with an appointed body;

24 (3) the openness and fairness of the election of

25 the chief executive and the executive’s accountability

26 to the legislature;
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1 (4) the treatment of political parties;

2 (5) the independence of the Judiciary and its

3 ability to exercise the power of final judgment over

4 Hong Kong law; and

5 (6) the Bill of Rights.

6 This Act may be cited as the ‘‘Foreign Operations,

7 Export Financing, and Related Programs Appropriations

8 Act, 1997’’.