104TH CONGRESS

2D SESSION H. R. 3540

AN ACT

Making appropriations for foreign operations, exother purposes. cal year ending September 30, 1997, and for port financing, and related programs for the fis-
104TH CONGRESS

2D SESSION H. R. 3540

AN ACT

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

September 30, 1997, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 That the following sums are appropriated, out of any

2 money in the Treasury not otherwise appropriated, for the

3 fiscal year ending September 30, 1997, and for other pur4 poses, namely:

5 TITLE I—EXPORT AND INVESTMENT

6 ASSISTANCE

7 EXPORT-IMPORT BANK OF THE UNITED STATES

8 The Export-Import Bank of the United States is au9 thorized to make such expenditures within the limits of

10 funds and borrowing authority available to such corpora11 tion, and in accordance with law, and to make such con12 tracts and commitments without regard to fiscal year limi13 tations, as provided by section 104 of the Government

14 Corporation Control Act, as may be necessary in carrying

15 out the program for the current fiscal year for such cor16 poration: Provided, That none of the funds available dur17 ing the current fiscal year may be used to make expendi18 tures, contracts, or commitments for the export of nuclear

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

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

21 Treaty on the Non-Proliferation of Nuclear Weapons eligi22 ble to receive economic or military assistance under this

23 Act that has detonated a nuclear explosive after the date

24 of enactment of this Act.
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1 SUBSIDY APPROPRIATION

2 For the cost of direct loans, loan guarantees, insur3 ance, and tied-aid grants as authorized by section 10 of

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

5 $726,000,000 to remain available until September 30,

6 1998: Provided, That such costs, including the cost of

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

8 of the Congressional Budget Act of 1974: Provided fur9 ther, That such sums shall remain available until 2012 for

10 the disbursement of direct loans, loan guarantees, insur11 ance and tied-aid grants obligated in fiscal years 1997 and

12 1998: Provided further, That up to $50,000,000 of funds

13 appropriated by this paragraph shall remain available

14 until expended and may be used for tied-aid grant pur15 poses: Provided further, That none of the funds appro16 priated by this paragraph may be used for tied-aid credits

17 or grants except through the regular notification proce18 dures of the Committees on Appropriations: Provided fur19 ther, That funds appropriated by this paragraph are made

20 available notwithstanding section 2(b)(2) of the Export21 Import Bank Act of 1945, in connection with the purchase

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

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

24 ADMINISTRATIVE EXPENSES

25 For administrative expenses to carry out the direct

26 and guaranteed loan and insurance programs (to be com-
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1 puted on an accrual basis), including hire of passenger

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

3 3109, and not to exceed $20,000 for official reception and

4 representation expenses for members of the Board of Di5 rectors, $47,614,000 (reduced by $1,000,000): Provided,

6 That necessary expenses (including special services per7 formed on a contract or fee basis, but not including other

8 personal services) in connection with the collection of mon9 eys owed the Export-Import Bank, repossession or sale of

10 pledged collateral or other assets acquired by the Export11 Import Bank in satisfaction of moneys owed the Export12 Import Bank, or the investigation or appraisal of any

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

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

15 guarantee or insurance commitment has been made, shall

16 be considered nonadministrative expenses for the purposes

17 of this heading: Provided further, That, notwithstanding

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

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

20 until October 1, 1997.

21 OVERSEAS PRIVATE INVESTMENT CORPORATION

22 NONCREDIT ACCOUNT

23 The Overseas Private Investment Corporation is au24 thorized to make, without regard to fiscal year limitations,

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

26 commitments within the limits of funds available to it and
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1 in accordance with law as may be necessary: Provided,

2 That the amount available for administrative expenses to

3 carry out the credit and insurance programs (including an

4 amount for official reception and representation expenses

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

6 $30,000,000: Provided further, That project-specific trans7 action costs, including direct and indirect costs incurred

8 in claims settlements, and other direct costs associated

9 with services provided to specific investors or potential in10 vestors pursuant to section 234 of the Foreign Assistance

11 Act of 1961, shall not be considered administrative ex12 penses for the purposes of this heading.

13 PROGRAM ACCOUNT

14 For the cost of direct and guaranteed loans,

15 $72,000,000, as authorized by section 234 of the Foreign

16 Assistance Act of 1961: Provided, That such costs, includ17 ing the cost of modifying such loans, shall be as defined

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

19 Provided further, That such sums shall be available for di20 rect loan obligations and loan guaranty commitments in21 curred or made during fiscal years 1997 and 1998: Pro22 vided further, That such sums shall remain available

23 through fiscal year 2005 for the disbursement of direct

24 and guaranteed loans obligated in fiscal year 1997, and

25 through fiscal year 2006 for the disbursement of direct

26 and guaranteed loans obligated in fiscal year 1998. In ad-
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1 dition, such sums as may be necessary for administrative

2 expenses to carry out the credit program may be derived

3 from amounts available for administrative expenses to

4 carry out the credit and insurance programs in the Over5 seas Private Investment Corporation Noncredit Account

6 and merged with said account.

7 FUNDS APPROPRIATED TO THE PRESIDENT

8 TRADE AND DEVELOPMENT AGENCY

9 For necessary expenses to carry out the provisions

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

11 $38,000,000, to remain available for obligation until Sep12 tember 30, 1998: Provided, That the Trade and Develop13 ment Agency may receive reimbursements from corpora14 tions and other entities for the costs of grants for feasibil15 ity studies and other project planning services, to be de16 posited as an offsetting collection to this account and to

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

18 necessary expenses under this paragraph: Provided fur19 ther, That such reimbursements shall not cover, or be allo20 cated against, direct or indirect administrative costs of the

21 agency.

22 TITLE II—BILATERAL ECONOMIC ASSISTANCE

23 FUNDS APPROPRIATED TO THE PRESIDENT

24 For expenses necessary to enable the President to

25 carry out the provisions of the Foreign Assistance Act of
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1 1961, and for other purposes, to remain available until

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

3 follows:

4 AGENCY FOR INTERNATIONAL DEVELOPMENT

5 CHILD SURVIVAL AND DISEASE PROGRAMS FUND

6 For necessary expenses to carry out the provisions

7 of part I and chapter 4 of part II of the Foreign Assist8 ance Act of 1961, for child survival, basic education, as9 sistance to combat tropical and other diseases, and related

10 activities, in addition to funds otherwise available for such

11 purposes, $600,000,000, to remain available until ex12 pended: Provided, That this amount shall be made avail13 able for such activities as (1) immunization programs, (2)

14 oral rehydration programs, (3) health and nutrition pro15 grams, and related education programs, which address the

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

17 programs, (5) assistance for displaced and orphaned chil18 dren, (6) programs for the prevention, treatment, and con19 trol of, and research on, tuberculosis, HIV/AIDS, polio,

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

21 for basic education programs for children, and (8) a con22 tribution on a grant basis to the United Nations Chil23 dren’s Fund (UNICEF) pursuant to section 301 of the

24 Foreign Assistance Act of 1961.
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1 DEVELOPMENT ASSISTANCE

2 (INCLUDING TRANSFER OF FUNDS)

3 For necessary expenses to carry out the provisions

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

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

6 remain available until September 30, 1998: Provided,

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

8 any unobligated balances from prior appropriations may

9 be made available to any organization or program which,

10 as determined by the President of the United States, sup11 ports or participates in the management of a program of

12 coercive abortion or involuntary sterilization: Provided fur13 ther, That none of the funds made available under this

14 heading may be used to pay for the performance of abor15 tion as a method of family planning or to motivate or co16 erce any person to practice abortions; and that in order

17 to reduce reliance on abortion in developing nations, funds

18 shall be available only to voluntary family planning

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

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

21 planning methods and services: Provided further, That in

22 awarding grants for natural family planning under section

23 104 of the Foreign Assistance Act of 1961 no applicant

24 shall be discriminated against because of such applicant’s

25 religious or conscientious commitment to offer only natu26 ral family planning; and, additionally, all such applicants
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1 shall comply with the requirements of the previous proviso:

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

3 Act authorizing or appropriating funds for foreign oper4 ations, export financing, and related programs, the term

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

6 shall not be construed to prohibit the provision, consistent

7 with local law, of information or counseling about all preg8 nancy options: Provided further, That nothing in this para9 graph shall be construed to alter any existing statutory

10 prohibitions against abortion under section 104 of the

11 Foreign Assistance Act of 1961: Provided further, That

12 the total amount of funds appropriated under this heading

13 and under the heading ‘‘Child Survival and Disease Pro14 grams Fund’’ should be made available for each of the

15 sub-Saharan Africa and Latin America and Caribbean re16 gions in at least the same proportion as the total amount

17 identified in the fiscal year 1997 draft congressional pres18 entation document for development assistance for each

19 such region is to the total amount requested for develop20 ment assistance for such fiscal year.

21 PRIVATE AND VOLUNTARY ORGANIZATIONS

22 None of the funds appropriated or otherwise made

23 available by this Act for development assistance may be

24 made available to any United States private and voluntary

25 organization, except any cooperative development organi26 zation, which obtains less than 20 per centum of its total
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1 annual funding for international activities from sources

2 other than the United States Government: Provided, That

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

4 Foreign Assistance Act of 1961 and the provisions on pri5 vate and voluntary organizations in title II of the ‘‘Foreign

6 Assistance and Related Programs Appropriations Act,

7 1985’’ (as enacted in Public Law 98–473) shall be super8 seded by the provisions of this section, except that the au9 thority contained in the last sentence of section 123(g)

10 may be exercised by the Administrator with regard to the

11 requirements of this paragraph.

12 Funds appropriated or otherwise made available

13 under title II of this Act should be made available to pri14 vate and voluntary organizations at a level which is equiv15 alent to the level provided in fiscal year 1995. Such private

16 and voluntary organizations shall include those which op17 erate on a not-for-profit basis, receive contributions from

18 private sources, receive voluntary support from the public

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

20 successful providers of development assistance.

21 INTERNATIONAL DISASTER ASSISTANCE

22 For necessary expenses for international disaster re23 lief, rehabilitation, and reconstruction assistance pursuant

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

25 amended, $190,000,000, to remain available until ex26 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.

21 OPERATING EXPENSES OF THE AGENCY FOR INTER22 NATIONAL DEVELOPMENT OFFICE OF INSPECTOR

23 GENERAL

24 For necessary expenses to carry out the provisions

25 of section 667, $30,000,000, to remain available until Sep26 tember 30, 1998, which sum shall be available for the Of-
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1 fice of the Inspector General of the Agency for Inter2 national Development.

3 OTHER BILATERAL ECONOMIC ASSISTANCE

4 ECONOMIC SUPPORT FUND

5 For necessary expenses to carry out the provisions

6 of chapter 4 of part II, $2,336,000,000, to remain avail7 able until September 30, 1998: Provided, That any funds

8 appropriated under this heading that are made available

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

10 transfer and shall be disbursed within thirty days of enact11 ment of this Act or by October 31, 1996, whichever is

12 later: Provided further, That none of the funds appro13 priated under this heading shall be made available for

14 Zaire.

15 INTERNATIONAL FUND FOR IRELAND

16 For necessary expenses to carry out the provisions

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

18 1961, $19,600,000, which shall be available for the United

19 States contribution to the International Fund for Ireland

20 and shall be made available in accordance with the provi21 sions of the Anglo-Irish Agreement Support Act of 1986

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

23 be expended at the minimum rate necessary to make time24 ly payment for projects and activities: Provided further,

25 That funds made available under this heading shall re26 main available until September 30, 1998.
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1 ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC

2 STATES

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

4 of the Foreign Assistance Act of 1961 and the Support

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

6 $475,000,000, to remain available until September 30,

7 1998, which shall be available, notwithstanding any other

8 provision of law, for economic assistance and for related

9 programs for Eastern Europe and the Baltic States.

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

11 appropriations Acts that are or have been made available

12 for an Enterprise Fund may be deposited by such Fund

13 in interest-bearing accounts prior to the Fund’s disburse14 ment of such funds for program purposes. The Fund may

15 retain for such program purposes any interest earned on

16 such deposits without returning such interest to the Treas17 ury of the United States and without further appropria18 tion by the Congress. Funds made available for Enterprise

19 Funds shall be expended at the minimum rate necessary

20 to make timely payment for projects and activities.

21 (c) Funds appropriated under this heading shall be

22 considered to be economic assistance under the Foreign

23 Assistance Act of 1961 for purposes of making available

24 the administrative authorities contained in that Act for

25 the use of economic assistance.
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1 (d) None of the funds appropriated under this head2 ing may be made available for new housing construction

3 or repair or reconstruction of existing housing in Bosnia

4 and Herzegovina unless directly related to the efforts of

5 United States troops to promote peace in said country.

6 (e) With regard to funds appropriated or otherwise

7 made available under this heading for the economic revi8 talization program in Bosnia and Herzegovina, and local

9 currencies generated by such funds (including the conver10 sion of funds appropriated under this heading into cur11 rency used by Bosnia and Herzegovina as local currency

12 and local currency returned or repaid under such pro13 gram)—

14 (1) the Administrator of the Agency for Inter15 national Development shall provide written approval

16 for grants and loans prior to the obligation and ex17 penditure of funds for such purposes, and prior to

18 the use of funds that have been returned or repaid

19 to any lending facility or grantee; and

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

21 shall apply.

22 ASSISTANCE FOR THE NEW INDEPENDENT STATES OF

23 THE FORMER SOVIET UNION

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

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

26 1961 and the FREEDOM Support Act, for assistance for
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1 the new independent states of the former Soviet Union

2 and for related programs, $590,000,000, to remain avail3 able until September 30, 1998: Provided, That the provi4 sions of section 498B(j) of the Foreign Assistance Act of

5 1961 shall apply to funds appropriated by this paragraph.

6 (b) None of the funds appropriated under this head7 ing shall be transferred to the Government of Russia—

8 (1) unless that Government is making progress

9 in implementing comprehensive economic reforms

10 based on market principles, private ownership, nego11 tiating repayment of commercial debt, respect for

12 commercial contracts, and equitable treatment of

13 foreign private investment; and

14 (2) if that Government applies or transfers

15 United States assistance to any entity for the pur16 pose of expropriating or seizing ownership or control

17 of assets, investments, or ventures.

18 (c) Funds may be furnished without regard to sub19 section (b) if the President determines that to do so is

20 in the national interest.

21 (d) None of the funds appropriated under this head22 ing shall be made available to any government of the new

23 independent states of the former Soviet Union if that gov24 ernment directs any action in violation of the territorial

25 integrity or national sovereignty of any other new inde-
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1 pendent state, such as those violations included in the Hel2 sinki Final Act: Provided, That such funds may be made

3 available without regard to the restriction in this sub4 section if the President determines and reports to the

5 Committees on Appropriations that to do so is in the na6 tional security interest of the United States: Provided fur7 ther, That the restriction of this subsection shall not apply

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

9 for purposes of humanitarian, disaster and refugee relief.

10 (e) None of the funds appropriated under this head11 ing for the new independent states of the former Soviet

12 Union shall be made available for any state to enhance

13 its military capability: Provided, That this restriction does

14 not apply to demilitarization or nonproliferation programs.

15 (f) Funds appropriated under this heading shall be

16 subject to the regular notification procedures of the Com17 mittees on Appropriations.

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

19 to the new independent states of the former Soviet Union

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

21 to environment and natural resources) of the Foreign As22 sistance Act of 1961.

23 (h) Funds appropriated under this heading may be

24 made available for assistance for Mongolia.
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1 (i) Funds made available in this Act for assistance

2 to the new independent states of the former Soviet Union

3 shall be provided to the maximum extent feasible through

4 the private sector, including small- and medium-size busi5 nesses, entrepreneurs, and others with indigenous private

6 enterprises in the region, intermediary development orga7 nizations committed to private enterprise, and private vol8 untary organizations: Provided, That grantees and con9 tractors should, to the maximum extent possible, place in

10 key staff positions specialists with prior on the ground ex11 pertise in the region of activity and fluency in one of the

12 local languages.

13 (j) In issuing new task orders, entering into con14 tracts, or making grants, with funds appropriated under

15 this heading or in prior appropriations Acts, for projects

16 or activities that have as one of their primary purposes

17 the fostering of private sector development, the Coordina18 tor for United States Assistance to the New Independent

19 States and the implementing agency shall encourage the

20 participation of and give significant weight to contractors

21 and grantees who propose investing a significant amount

22 of their own resources (including volunteer services and

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

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

25 heading may be made available for Russia unless the
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1 President determines and certifies in writing to the Com2 mittees on Appropriations that the Government of Russia

3 has terminated implementation of arrangements to pro4 vide Iran with technical expertise, training, technology, or

5 equipment necessary to develop a nuclear reactor or relat6 ed nuclear research facilities or programs.

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

8 determines and reports to the Committees on Appropria9 tions that making such funds available is important to the

10 national security interest of the United States. Any such

11 determination shall cease to be effective six months after

12 being made unless the President determines that its con13 tinuation is important to the national security interest of

14 the United States.

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

16 appropriations Acts that are or have been made available

17 for an Enterprise Fund may be deposited by such Fund

18 in interest-bearing accounts prior to the disbursement of

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

20 may retain for such program purposes any interest earned

21 on such deposits without returning such interest to the

22 Treasury of the United States and without further appro23 priation by the Congress. Funds made available for Enter24 prise Funds shall be expended at the minimum rate nec25 essary to make timely payment for projects and activities.
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1 (m)(1) Notwithstanding section 907 of the FREE2 DOM Support Act or any other provision of law, non3 governmental organizations and private voluntary organi4 zations shall not be precluded from using facilities or vehi5 cles of the Government of Azerbaijan to provide humani6 tarian assistance to refugees and internally displaced per7 sons in Azerbaijan with funds made available under this

8 heading, or from using such assistance to make necessary

9 repairs to such facilities (such as health clinics and hous10 ing) or vehicles that are used to provide the assistance.

11 (2) Humanitarian assistance may be provided with

12 funds made available under this heading to refugees and

13 internally displaced persons in Azerbaijan only if humani14 tarian assistance is also provided to refugees and inter15 nally displaced persons in Nagorno-Karabagh with funds

16 made available under this heading, in accordance with

17 paragraph (3).

18 (3) Humanitarian assistance may be provided with

19 funds made available under this heading to refugees and

20 internally displaced persons in Azerbaijan and Nagorno21 Karabagh only in the proportion that the number of refu22 gees and internally displaced persons in Azerbaijan and

23 Nagorno-Karabagh, respectively, bears to the total num24 ber of refugees and internally displaced persons in both

25 Azerbaijan and Nagorno-Karabagh, but in no case more
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1 than $7 to Azerbaijan for every dollar to Nagorno2 Karabagh.

3 INDEPENDENT AGENCIES

4 AFRICAN DEVELOPMENT FOUNDATION

5 For necessary expenses to carry out the provisions

6 of title V of the International Security and Development

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

8 make such contracts and commitments without regard to

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

10 $11,500,000: Provided, That when, with the permission

11 of the President of the Foundation, funds made available

12 to a grantee are invested pending disbursement, the re13 sulting interest is not required to be deposited in the Unit14 ed States Treasury if the grantee uses the resulting inter15 est for the purpose for which the grant was made: Pro16 vided further, That this provision applies with respect to

17 both interest earned before and interest earned after the

18 enactment of this provision: Provided further, That not19 withstanding section 505(a)(2) of the African Develop20 ment Foundation Act, in exceptional circumstances the

21 board of directors of the Foundation may waive the

22 $250,000 limitation contained in that section with respect

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

24 provide a report to the Committees on Appropriations

25 after each time such waiver authority is exercised.
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1 INTER-AMERICAN FOUNDATION

2 For expenses necessary to carry out the functions of

3 the Inter-American Foundation in accordance with the

4 provisions of section 401 of the Foreign Assistance Act

5 of 1969, and to make such contracts and commitments

6 without regard to fiscal year limitations, as provided by

7 31 U.S.C. 9104, $20,000,000.

8 PEACE CORPS

9 For expenses necessary to carry out the provisions

10 of the Peace Corps Act (75 Stat. 612), $212,000,000, in11 cluding the purchase of not to exceed five passenger motor

12 vehicles for administrative purposes for use outside of the

13 United States: Provided, That none of the funds appro14 priated under this heading shall be used to pay for abor15 tions: Provided further, That funds appropriated under

16 this heading shall remain available until September 30,

17 1998.

18 DEPARTMENT OF STATE

19 INTERNATIONAL NARCOTICS CONTROL

20 For necessary expenses to carry out section 481 of

21 the Foreign Assistance Act of 1961, $150,000,000: Pro22 vided, That during fiscal year 1997, the Department of

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

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

25 excess property from an agency of the United States Gov26 ernment for the purpose of providing it to a foreign coun-
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1 try under chapter 8 of part I of that Act subject to the

2 regular notification procedures of the Committees on Ap3 propriations.

4 MIGRATION AND REFUGEE ASSISTANCE

5 For expenses, not otherwise provided for, necessary

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

7 by law, a contribution to the International Committee of

8 the Red Cross, assistance to refugees, including contribu9 tions to the International Organization for Migration and

10 the United Nations High Commissioner for Refugees, and

11 other activities to meet refugee and migration needs; sala12 ries and expenses of personnel and dependents as author13 ized by the Foreign Service Act of 1980; allowances as

14 authorized by sections 5921 through 5925 of title 5, Unit15 ed States Code; purchase and hire of passenger motor ve16 hicles; and services as authorized by section 3109 of title

17 5, United States Code, $650,000,000: Provided, That not

18 more than $12,000,000 shall be available for administra19 tive expenses: Provided further, That obligations of funds

20 to the United Nations High Commissioner for Refugees

21 for support of refugees from Rwanda shall be subject to

22 the regular notification procedures of the Committees on

23 Appropriations.

24 REFUGEE RESETTLEMENT ASSISTANCE

25 For necessary expenses for the targeted assistance

26 program authorized by title IV of the Immigration and
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1 Nationality Act and section 501 of the Refugee Education

2 Assistance Act of 1980 and administered by the Office of

3 Refugee Resettlement of the Department of Health and

4 Human Services, in addition to amounts otherwise avail5 able for such purposes, $5,000,000.

6 UNITED STATES EMERGENCY REFUGEE AND MIGRATION

7 ASSISTANCE FUND

8 For necessary expenses to carry out the provisions

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

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

11 $50,000,000, to remain available until expended: Pro12 vided, That the funds made available under this heading

13 are appropriated notwithstanding the provisions contained

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

15 of funds which could be appropriated for this purpose.

16 NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND

17 RELATED PROGRAMS

18 For necessary expenses for nonproliferation, anti-ter19 rorism and related programs and activities, $135,000,000,

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

21 Foreign Assistance Act of 1961 for anti-terrorism assist22 ance, section 504 of the FREEDOM Support Act for the

23 Nonproliferation and Disarmanent Fund, section 23 of the

24 Arms Export Control Act for demining activities, notwith25 standing any other provision of law, including activities

26 implemented through nongovernmental and international
26

•HR 3540 EH

1 organizations, section 301 of the Foreign Assistance Act

2 of 1961 for a voluntary contribution to the International

3 Atomic Energy Agency (IAEA) and a voluntary contribu4 tion to the Korean Peninsula Energy Development Orga5 nization (KEDO), and for the acquisition and provision

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

7 to support the eradication of terrorism in and around Is8 rael: Provided, That of this amount not to exceed

9 $15,000,000, to remain available until expended, may be

10 made available for the Nonproliferation and Disarmament

11 Fund, notwithstanding any other provision of law, to pro12 mote bilateral and multilateral activities relating to non13 proliferation and disarmament: Provided further, That

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

15 the new independent states of the former Soviet Union

16 and international organizations when it is in the national

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

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

19 notification procedures of the Committees on Appropria20 tions: Provided further, That funds appropriated under

21 this heading may be made available for the International

22 Atomic Energy Agency only if the Secretary of State de23 termines (and so reports to the Congress) that Israel is

24 not being denied its right to participate in the activities

25 of that Agency: Provided further, That not to exceed
27

•HR 3540 EH

1 $13,000,000 may be made available to the Korean Penin2 sula Energy Development Organization (KEDO) only for

3 administrative expenses and heavy fuel oil costs associated

4 with the Agreed Framework: Provided further, That such

5 funds shall be subject to the regular notification proce6 dures of the Committees on Appropriations.

7 TITLE III—MILITARY ASSISTANCE

8 FUNDS APPROPRIATED TO THE PRESIDENT

9 INTERNATIONAL MILITARY EDUCATION AND TRAINING

10 For necessary expenses to carry out the provisions

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

12 $45,000,000 (reduced by $1,525,000): Provided, That

13 none of the funds appropriated under this heading shall

14 be available for Zaire and Guatemala: Provided further,

15 That funds appropriated under this heading for grant fi16 nanced military education and training for Indonesia may

17 only be available for expanded international military edu18 cation and training.

19 FOREIGN MILITARY FINANCING PROGRAM

20 For expenses necessary for grants to enable the

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

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

23 funds appropriated by this paragraph that are made avail24 able for Israel and Egypt shall be made available only as

25 grants: Provided further, That the funds appropriated by

26 this paragraph that are made available for Israel shall be
28

•HR 3540 EH

1 disbursed within thirty days of enactment of this Act or

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

3 That to the extent that the Government of Israel requests

4 that funds be used for such purposes, grants made avail5 able for Israel by this paragraph shall, as agreed by Israel

6 and the United States, be available for advanced weapons

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

8 available for the procurement in Israel of defense articles

9 and defense services, including research and development:

10 Provided further, That funds made available under this

11 paragraph shall be nonrepayable notwithstanding any re12 quirement in section 23 of the Arms Export Control Act:

13 Provided further, That none of the funds made available

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

15 country participating in the Partnership for Peace Pro16 gram except through the regular notification procedures

17 of the Committees on Appropriations.

18 For the cost, as defined in section 502 of the Con19 gressional Budget Act of 1974, of direct loans authorized

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

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

22 funds are available to subsidize gross obligations for the

23 principal amount of direct loans of not to exceed

24 $323,815,000: Provided further, That the rate of interest

25 charged on such loans shall be not less than the current
29

•HR 3540 EH

1 average market yield on outstanding marketable obliga2 tions of the United States of comparable maturities: Pro3 vided further, That funds appropriated under this heading

4 shall be made available for Greece and Turkey only on

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

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

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

8 None of the funds made available under this heading

9 shall be available to finance the procurement of defense

10 articles, defense services, or design and construction serv11 ices that are not sold by the United States Government

12 under the Arms Export Control Act unless the foreign

13 country proposing to make such procurements has first

14 signed an agreement with the United States Government

15 specifying the conditions under which such procurements

16 may be financed with such funds: Provided, That all coun17 try and funding level increases in allocations shall be sub18 mitted through the regular notification procedures of sec19 tion 515 of this Act: Provided further, That funds made

20 available under this heading shall be obligated upon appor21 tionment in accordance with paragraph (5)(C) of title 31,

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

23 That none of the funds appropriated under this heading

24 shall be available for Zaire, Sudan, Liberia, and Guate25 mala: Provided further, That only those countries for
30

•HR 3540 EH

1 which assistance was justified for the ‘‘Foreign Military

2 Sales Financing Program’’ in the fiscal year 1989 con3 gressional presentation for security assistance programs

4 may utilize funds made available under this heading for

5 procurement of defense articles, defense services or design

6 and construction services that are not sold by the United

7 States Government under the Arms Export Control Act:

8 Provided further, That, subject to the regular notification

9 procedures of the Committees on Appropriations, funds

10 made available under this heading for the cost of direct

11 loans may also be used to supplement the funds available

12 under this heading for grants, and funds made available

13 under this heading for grants may also be used to supple14 ment the funds available under this heading for the cost

15 of direct loans: Provided further, That funds appropriated

16 under this heading shall be expended at the minimum rate

17 necessary to make timely payment for defense articles and

18 services: Provided further, That not more than

19 $23,250,000 of the funds appropriated under this heading

20 may be obligated for necessary expenses, including the

21 purchase of passenger motor vehicles for replacement only

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

23 of administering military assistance and sales: Provided

24 further, That not more than $355,000,000 of funds real25 ized pursuant to section 21(e)(1)(A) of the Arms Export
31

•HR 3540 EH

1 Control Act may be obligated for expenses incurred by the

2 Department of Defense during fiscal year 1997 pursuant

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

4 that this limitation may be exceeded only through the reg5 ular notification procedures of the Committees on Appro6 priations.

7 PEACEKEEPING OPERATIONS

8 For necessary expenses to carry out the provisions

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

10 $65,000,000: Provided, That none of the funds appro11 priated under this paragraph shall be obligated or ex12 pended except as provided through the regular notification

13 procedures of the Committees on Appropriations.

14 TITLE IV—MULTILATERAL ECONOMIC

15 ASSISTANCE

16 FUNDS APPROPRIATED TO THE PRESIDENT

17 INTERNATIONAL FINANCIAL INSTITUTIONS

18 CONTRIBUTION TO THE INTERNATIONAL BANK FOR

19 RECONSTRUCTION AND DEVELOPMENT

20 For payment to the International Bank for Recon21 struction and Development by the Secretary of the Treas22 ury, for the United States contribution to the Global Envi23 ronment Facility (GEF), $30,000,000, to remain available

24 until September 30, 1998.
32

•HR 3540 EH

1 CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT

2 ASSOCIATION

3 For payment to the International Development Asso4 ciation by the Secretary of the Treasury, $525,000,000,

5 for the United States contribution to the tenth replenish6 ment, to remain available until expended: Provided, That

7 none of the funds made available for the International De8 velopment Association may be obligated until the Sec9 retary of the Treasury submits a report to the Committees

10 on Appropriations detailing the efforts made by United

11 States officials, during discussions leading to an agree12 ment to undertake the eleventh replenishment of the Asso13 ciation, to oppose the formation of an Interim Trust Fund,

14 and fully describing the adverse impacts to the United

15 States resulting from the Interim Trust Fund and other

16 potential alternative funding structures for the Association

17 during 1996 and 1997.

18 CONTRIBUTION TO THE INTERNATIONAL FINANCE

19 CORPORATION

20 For payment to the International Finance Corpora21 tion by the Secretary of the Treasury, $6,656,000, for the

22 United States share of the increase in subscriptions to

23 capital stock, to remain available until expended.
33

•HR 3540 EH

1 CONTRIBUTION TO THE INTER-AMERICAN DEVELOPMENT

2 BANK

3 For payment to the Inter-American Development

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

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

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

7 share of the increase in the resources of the Fund for Spe8 cial Operations, $10,000,000, to remain available until ex9 pended.

10 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

11 The United States Governor of the Inter-American

12 Development Bank may subscribe without fiscal year limi13 tation to the callable capital portion of the United States

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

15 $1,503,718,910.

16 CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS

17 MULTILATERAL INVESTMENT FUND

18 For payment to the Enterprise for the Americas Mul19 tilateral Investment Fund by the Secretary of the Treas20 ury, for the United States contribution to the Fund to

21 be administered by the Inter-American Development

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

23 CONTRIBUTION TO THE ASIAN DEVELOPMENT BANK

24 For payment to the Asian Development Bank by the

25 Secretary of the Treasury for the United States share of
34

•HR 3540 EH

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

2 $13,221,596, to remain available until expended.

3 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

4 The United States Governor of the Asian Develop5 ment Bank may subscribe without fiscal year limitation

6 to the callable capital portion of the United States share

7 of such capital stock in an amount not to exceed

8 $647,858,204.

9 CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND

10 For the United States contribution by the Secretary

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

12 Development Fund, as authorized by the Asian Develop13 ment Bank Act, as amended (Public Law 89–369),

14 $100,000,000, to remain available until expended.

15 CONTRIBUTION TO THE EUROPEAN BANK FOR

16 RECONSTRUCTION AND DEVELOPMENT

17 For payment to the European Bank for Reconstruc18 tion and Development by the Secretary of the Treasury,

19 $11,916,447, for the United States share of the paid-in

20 share portion of the initial capital subscription, to remain

21 available until expended.

22 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

23 The United States Governor of the European Bank

24 for Reconstruction and Development may subscribe with25 out fiscal year limitation to the callable capital portion of
35

•HR 3540 EH

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

2 not to exceed $27,805,043.

3 NORTH AMERICAN DEVELOPMENT BANK

4 For payment to the North American Development

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

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

7 $50,625,000, to remain available until expended.

8 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

9 The United States Governor of the North American

10 Development Bank may subscribe without fiscal year limi11 tation to the callable capital portion of the United States

12 share of the capital stock of the North American Develop13 ment Bank in an amount not to exceed $318,750,000.

14 INTERNATIONAL ORGANIZATIONS AND PROGRAMS

15 For necessary expenses to carry out the provisions

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

17 of section 2 of the United Nations Environment Program

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

19 none of the funds appropriated under this heading shall

20 be made available for the United Nations Fund for

21 Science and Technology: Provided further, That none of

22 the funds appropriated under this heading that are made

23 available to the United Nations Population Fund

24 (UNFPA) shall be made available for activities in the Peo25 ple’s Republic of China: Provided further, That not more

26 than $25,000,000 of the funds appropriated under this
36

•HR 3540 EH

1 heading may be made available to the UNFPA: Provided

2 further, That none of the funds appropriated under this

3 heading shall be made available to the UNFPA unless the

4 Secretary of State determines and reports to the Congress

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

6 have ended and the United States has received assurances

7 that the UNFPA will not resume such programs during

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

9 appropriated under this heading may be made available

10 to the Korean Peninsula Energy Development Organiza11 tion (KEDO).

12 TITLE V—GENERAL PROVISIONS

13 OBLIGATIONS DURING LAST MONTH OF AVAILABILITY

14 SEC. 501. Except for the appropriations entitled

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

16 Emergency Refugee and Migration Assistance Fund’’, not

17 more than 15 per centum of any appropriation item made

18 available by this Act shall be obligated during the last

19 month of availability.

20 PROHIBITION OF BILATERAL FUNDING FOR

21 INTERNATIONAL FINANCIAL INSTITUTIONS

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

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

24 209(d) of the Foreign Assistance Act of 1961.
37

•HR 3540 EH

1 LIMITATION ON RESIDENCE EXPENSES

2 SEC. 503. Of the funds appropriated or made avail3 able pursuant to this Act, not to exceed $126,500 shall

4 be for official residence expenses of the Agency for Inter5 national Development during the current fiscal year: Pro6 vided, 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 LIMITATION ON EXPENSES

10 SEC. 504. Of the funds appropriated or made avail11 able pursuant to this Act, not to exceed $5,000 shall be

12 for entertainment expenses of the Agency for International

13 Development during the current fiscal year.

14 LIMITATION ON REPRESENTATIONAL ALLOWANCES

15 SEC. 505. Of the funds appropriated or made avail16 able pursuant to this Act, not to exceed $95,000 shall be

17 available for representation allowances for the Agency for

18 International Development during the current fiscal year:

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

23 Act for general costs of administering military assistance

24 and sales under the heading ‘‘Foreign Military Financing

25 Program’’, not to exceed $2,000 shall be available for en26 tertainment expenses and not to exceed $50,000 shall be
38

•HR 3540 EH

1 available for representation allowances: Provided further,

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

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

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

5 allowances: Provided further, That of the funds made

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

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

8 and representation allowances: Provided further, That of

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

10 not to exceed a total of $4,000 shall be available for enter11 tainment expenses: Provided further, That of the funds

12 made available by this Act under the heading ‘‘Trade and

13 Development Agency’’, not to exceed $2,000 shall be avail14 able for representation and entertainment allowances.

15 PROHIBITION ON FINANCING NUCLEAR GOODS

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

17 available (other than funds for ‘‘Nonproliferation, Anti18 terrorism, Demining and Related Programs’’) pursuant to

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

20 1961, may be used, except for purposes of nuclear safety,

21 to finance the export of nuclear equipment, fuel, or tech22 nology.

23 PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN

24 COUNTRIES

25 SEC. 507. None of the funds appropriated or other26 wise made available pursuant to this Act shall be obligated
39

•HR 3540 EH

1 or expended to finance directly any assistance or repara2 tions to Cuba, Iraq, Libya, North Korea, Iran, Sudan, or

3 Syria: Provided, That for purposes of this section, the pro4 hibition on obligations or expenditures shall include direct

5 loans, credits, insurance and guarantees of the Export-Im6 port Bank or its agents.

7 MILITARY COUPS

8 SEC. 508. None of the funds appropriated or other9 wise made available pursuant to this Act shall be obligated

10 or expended to finance directly any assistance to any coun11 try whose duly elected Head of Government is deposed by

12 military coup or decree: Provided, That assistance may be

13 resumed to such country if the President determines and

14 reports to the Committees on Appropriations that subse15 quent to the termination of assistance a democratically

16 elected government has taken office.

17 TRANSFERS BETWEEN ACCOUNTS

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

19 Act may be obligated under an appropriation account to

20 which they were not appropriated, except for transfers

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

22 prior to the exercise of any authority contained in the For23 eign Assistance Act of 1961 to transfer funds, consults

24 with and provides a written policy justification to the

25 Committees on Appropriations of the House of Represent26 atives and the Senate.
40

•HR 3540 EH

1 DEOBLIGATION/REOBLIGATION AUTHORITY

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

3 1311 of the Supplemental Appropriations Act, 1955, as

4 having been obligated against appropriations heretofore

5 made under the authority of the Foreign Assistance Act

6 of 1961 for the same general purpose as any of the head7 ings under title II of this Act are, if deobligated, hereby

8 continued available for the same period as the respective

9 appropriations under such headings or until September

10 30, 1997, whichever is later, and for the same general pur11 pose, and for countries within the same region as origi12 nally obligated: Provided, That the Appropriations Com13 mittees of both Houses of the Congress are notified fifteen

14 days in advance of the reobligation of such funds in ac15 cordance with regular notification procedures of the Com16 mittees on Appropriations.

17 (b) Obligated balances of funds appropriated to carry

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

19 end of the fiscal year immediately preceding the current

20 fiscal year are, if deobligated, hereby continued available

21 during the current fiscal year for the same purpose under

22 any authority applicable to such appropriations under this

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

24 not be used in fiscal year 1997.
41

•HR 3540 EH

1 AVAILABILITY OF FUNDS

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

3 this Act shall remain available for obligation after the ex4 piration of the current fiscal year unless expressly so pro5 vided in this Act: Provided, That funds appropriated for

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

7 667, and chapter 4 of part II of the Foreign Assistance

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

9 heading ‘‘Assistance for Eastern Europe and the Baltic

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

11 funds are initially obligated before the expiration of their

12 respective periods of availability contained in this Act:

13 Provided further, That, notwithstanding any other provi14 sion of this Act, any funds made available for the purposes

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

16 Foreign Assistance Act of 1961 which are allocated for

17 cash disbursements in order to address balance of pay18 ments or economic policy reform objectives, shall remain

19 available until expended: Provided further, That the report

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

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

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

23 funds allocated for cash disbursement for balance of pay24 ment and economic policy reform purposes.
42

•HR 3540 EH

1 LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT

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

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

4 which is in default during a period in excess of one cal5 endar year in payment to the United States of principal

6 or interest on any loan made to such country by the Unit7 ed States pursuant to a program for which funds are ap8 propriated under this Act: Provided, That this section and

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

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

11 the current fiscal year for Nicaragua, and for any narcot12 ics-related assistance for Colombia, Bolivia, and Peru au13 thorized by the Foreign Assistance Act of 1961 or the

14 Arms Export Control Act.

15 COMMERCE AND TRADE

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

17 made available pursuant to this Act for direct assistance

18 and none of the funds otherwise made available pursuant

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

20 Private Investment Corporation shall be obligated or ex21 pended to finance any loan, any assistance or any other

22 financial commitments for establishing or expanding pro23 duction of any commodity for export by any country other

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

25 in surplus on world markets at the time the resulting pro26 ductive capacity is expected to become operative and if the
43

•HR 3540 EH

1 assistance will cause substantial injury to United States

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

3 Provided, That such prohibition shall not apply to the Ex4 port-Import Bank if in the judgment of its Board of Direc5 tors the benefits to industry and employment in the Unit6 ed States are likely to outweigh the injury to United

7 States producers of the same, similar, or competing com8 modity, and the Chairman of the Board so notifies the

9 Committees on Appropriations.

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

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

12 Assistance Act of 1961 shall be available for any testing

13 or breeding feasibility study, variety improvement or intro14 duction, consultancy, publication, conference, or training

15 in connection with the growth or production in a foreign

16 country of an agricultural commodity for export which

17 would compete with a similar commodity grown or pro18 duced in the United States: Provided, That this subsection

19 shall not prohibit—

20 (1) activities designed to increase food security

21 in developing countries where such activities will not

22 have a significant impact in the export of agricul23 tural commodities of the United States; or

24 (2) research activities intended primarily to

25 benefit American producers.
44

•HR 3540 EH

1 SURPLUS COMMODITIES

2 SEC. 514. The Secretary of the Treasury shall in3 struct the United States Executive Directors of the Inter4 national Bank for Reconstruction and Development, the

5 International Development Association, the International

6 Finance Corporation, the Inter-American Development

7 Bank, the International Monetary Fund, the Asian Devel8 opment Bank, the Inter-American Investment Corpora9 tion, the North American Development Bank, the Euro10 pean Bank for Reconstruction and Development, the Afri11 can Development Bank, and the African Development

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

13 oppose any assistance by these institutions, using funds

14 appropriated or made available pursuant to this Act, for

15 the production or extraction of any commodity or mineral

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

17 assistance will cause substantial injury to United States

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

19 NOTIFICATION REQUIREMENTS

20 SEC. 515. For the purposes of providing the Execu21 tive Branch with the necessary administrative flexibility,

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

23 Survival and Disease Programs Fund’’, ‘‘Development As24 sistance’’, ‘‘Debt restructuring’’, ‘‘International organiza25 tions and programs’’, ‘‘Trade and Development Agency’’,

26 ‘‘International narcotics control’’, ‘‘Assistance for Eastern
45

•HR 3540 EH

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

2 Independent States of the Former Soviet Union’’, ‘‘Eco3 nomic Support Fund’’, ‘‘Peacekeeping operations’’, ‘‘Oper4 ating expenses of the Agency for International Develop5 ment’’, ‘‘Operating expenses of the Agency for Inter6 national Development Office of Inspector General’’, ‘‘Non7 proliferation, anti-terrorism, demining and related pro8 grams’’, ‘‘Foreign Military Financing Program’’, ‘‘Inter9 national military education and training’’, ‘‘Inter-Amer10 ican Foundation’’, ‘‘African Development Foundation’’,

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

12 be available for obligation for activities, programs,

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

14 operations not justified or in excess of the amount justi15 fied to the Appropriations Committees for obligation

16 under any of these specific headings unless the Appropria17 tions Committees of both Houses of Congress are pre18 viously notified fifteen days in advance: Provided, That the

19 President shall not enter into any commitment of funds

20 appropriated for the purposes of section 23 of the Arms

21 Export Control Act for the provision of major defense

22 equipment, other than conventional ammunition, or other

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

24 or combat vehicles, not previously justified to Congress or

25 20 per centum in excess of the quantities justified to Con-
46

•HR 3540 EH

1 gress unless the Committees on Appropriations are noti2 fied fifteen days in advance of such commitment: Provided

3 further, That this section shall not apply to any re4 programming for an activity, program, or project under

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

6 of less than 10 per centum of the amount previously justi7 fied to the Congress for obligation for such activity, pro8 gram, or project for the current fiscal year: Provided fur9 ther, That the requirements of this section or any similar

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

11 Act requiring notification in accordance with the regular

12 notification procedures of the Committees on Appropria13 tions, may be waived if failure to do so would pose a sub14 stantial risk to human health or welfare: Provided further,

15 That in case of any such waiver, notification to the Con16 gress, or the appropriate congressional committees, shall

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

18 than three days after taking the action to which such noti19 fication requirement was applicable, in the context of the

20 circumstances necessitating such waiver: Provided further,

21 That any notification provided pursuant to such a waiver

22 shall contain an explanation of the emergency cir23 cumstances.

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

25 the Foreign Assistance Act of 1961 shall be subject to the
47

•HR 3540 EH

1 regular notification procedures of the Committees on Ap2 propriations.

3 LIMITATION ON AVAILABILITY OF FUNDS FOR

4 INTERNATIONAL ORGANIZATIONS AND PROGRAMS

5 SEC. 516. Notwithstanding any other provision of law

6 or of this Act, none of the funds provided for ‘‘Inter7 national Organizations and Programs’’ shall be available

8 for the United States proportionate share, in accordance

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

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

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

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

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

14 regular notification procedures of the Committees on Ap15 propriations, funds appropriated under this Act or any

16 previously enacted Act making appropriations for foreign

17 operations, export financing, and related programs, which

18 are returned or not made available for organizations and

19 programs because of the implementation of this section

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

21 obligation through September 30, 1998.

22 ECONOMIC SUPPORT FUND ASSISTANCE FOR ISRAEL

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

24 peace process in the Middle East is vitally important to

25 United States security interests in the region. The Con26 gress recognizes that, in fulfilling its obligations under the
48

•HR 3540 EH

1 Treaty of Peace Between the Arab Republic of Egypt and

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

3 1979, Israel incurred severe economic burdens. Further4 more, the Congress recognizes that an economically and

5 militarily secure Israel serves the security interests of the

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

7 the incentive and confidence to continue pursuing the

8 peace process. Therefore, the Congress declares that, sub9 ject to the availability of appropriations, it is the policy

10 and the intention of the United States that the funds pro11 vided in annual appropriations for the Economic Support

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

13 the annual debt repayment (interest and principal) from

14 Israel to the United States Government in recognition that

15 such a principle serves United States interests in the re16 gion.

17 PROHIBITION ON FUNDING FOR ABORTIONS AND

18 INVOLUNTARY STERILIZATION

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

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

21 amended, may be used to pay for the performance of abor22 tions as a method of family planning or to motivate or

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

24 made available to carry out part I of the Foreign Assist25 ance Act of 1961, as amended, may be used to pay for

26 the performance of involuntary sterilization as a method
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1 of family planning or to coerce or provide any financial

2 incentive to any person to undergo sterilizations. None of

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

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

5 for any biomedical research which relates in whole or in

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

7 involuntary sterilization as a means of family planning.

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

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

10 obligated or expended for any country or organization if

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

12 such country or organization would violate any of the

13 above provisions related to abortions and involuntary steri14 lizations: Provided, That none of the funds made available

15 under this Act may be used to lobby for or against abor16 tion.

17 POPULATION ASSISTANCE FUNDING LIMITATIONS

18 SEC. 518A. (a) IN GENERAL.—

19 (1) Notwithstanding any other provision of this

20 Act, funds appropriated by this Act for population

21 assistance activities may be made available for a for22 eign private or nongovernmental organization only if

23 the organization certifies that it will not during the

24 period for which the funds are made available, per25 form abortions in any foreign country, except where

26 the life of the mother would be endangered if the
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1 fetus were carried to term or in cases of forcible

2 rape or incest.

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

4 apply to the treatment of injuries or illnesses caused

5 by legal or illegal abortions or to assistance provided

6 directly to the government of a country.

7 (b) LOBBYING ACTIVITIES.—

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

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

10 and, notwithstanding any other provision of this Act

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

12 Act for population assistance activities may be made

13 available for any foreign private or nongovernmental

14 organization until the organization certifies that it

15 will not during the period for which the funds are

16 made available, violate the laws of any foreign coun17 try concerning the circumstances under which abor18 tion is permitted, regulated, or prohibited, or engage

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

20 the laws or governmental policies of any foreign

21 country concerning the circumstances under which

22 abortion is permitted, regulated, or prohibited.

23 (2) Notwithstanding any other provision of this

24 Act, paragraph (1) shall not apply to activities in
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1 opposition to coercive abortion or involuntary steri2 lization.

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

4 foreign private or nongovernmental organization may re5 ceive funds appropriated by this Act for population assist6 ance activities in the absence of the certifications required

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

8 organization by this Act shall not exceed 50 percent of

9 the funds made available to the organization during fiscal

10 year 1995. Funds for population assistance activities may

11 not be made available for any foreign private or non12 governmental organization that did not receive such funds

13 during fiscal year 1995 unless the organization meets the

14 certification requirements of subsections (a)(1) and (b)(1).

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

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

17 months of fiscal year 1997 only, and monthly disburse18 ments during such period to each organization covered by

19 said subsection may not exceed 8.34 percent of the total

20 each such organization could receive pursuant to said sub21 section.

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

23 available for a foreign organization either directly or as

24 a subcontractor or sub-grantee, and the required certifi25 cations apply to activities in which the organization en-
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1 gages either directly or through a subcontractor or sub2 grantee.

3 (f) Funds appropriated or otherwise made available

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

5 other population assistance may be made available for ob6 ligation and expenditure in an amount not to exceed 65

7 percent of the total amount appropriated or otherwise

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

9 104–19 for such activities for fiscal year 1995.

10 REPORTING REQUIREMENT

11 SEC. 519. The President shall submit to the Commit12 tees on Appropriations the reports required by section

13 25(a)(1) of the Arms Export Control Act.

14 SPECIAL NOTIFICATION REQUIREMENTS

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

16 shall be obligated or expended for Colombia, Dominican

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

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

19 the regular notification procedures of the Committees on

20 Appropriations.

21 DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

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

23 project, and activity’’ shall be defined at the Appropria24 tions Act account level and shall include all Appropriations

25 and Authorizations Acts earmarks, ceilings, and limita26 tions with the exception that for the following accounts:
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1 Economic Support Fund and Foreign Military Financing

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

3 considered to include country, regional, and central pro4 gram level funding within each such account; for the devel5 opment assistance accounts of the Agency for Inter6 national Development ‘‘program, project, and activity’’

7 shall also be considered to include central program level

8 funding, either as (1) justified to the Congress, or (2) allo9 cated by the executive branch in accordance with a report,

10 to be provided to the Committees on Appropriations within

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

12 653(a) of the Foreign Assistance Act of 1961.

13 CHILD SURVIVAL AND AIDS ACTIVITIES

14 SEC. 522. Up to $8,000,000 of the funds made avail15 able by this Act for assistance for family planning, health,

16 child survival, and AIDS, may be used to reimburse Unit17 ed States Government agencies, agencies of State govern18 ments, institutions of higher learning, and private and vol19 untary organizations for the full cost of individuals (in20 cluding for the personal services of such individuals) de21 tailed or assigned to, or contracted by, as the case may

22 be, the Agency for International Development for the pur23 pose of carrying out family planning activities, child sur24 vival activities and activities relating to research on, and

25 the treatment and control of acquired immune deficiency

26 syndrome in developing countries: Provided, That funds
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1 appropriated by this Act that are made available for child

2 survival activities or activities relating to research on, and

3 the treatment and control of, acquired immune deficiency

4 syndrome may be made available notwithstanding any pro5 vision of law that restricts assistance to foreign countries:

6 Provided further, That funds appropriated by this Act that

7 are made available for family planning activities may be

8 made available notwithstanding section 512 of this Act

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

10 PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN

11 COUNTRIES

12 SEC. 523. None of the funds appropriated or other13 wise made available pursuant to this Act shall be obligated

14 to finance indirectly any assistance or reparations to

15 Cuba, Iraq, Libya, Iran, Syria, North Korea, or the Peo16 ple’s Republic of China, unless the President of the United

17 States certifies that the withholding of these funds is con18 trary to the national interest of the United States.

19 RECIPROCAL LEASING

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

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

22 lieu thereof ‘‘1997’’.

23 NOTIFICATION ON EXCESS DEFENSE EQUIPMENT

24 SEC. 525. Prior to providing excess Department of

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

26 Foreign Assistance Act of 1961, the Department of De-
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1 fense shall notify the Committees on Appropriations to the

2 same extent and under the same conditions as are other

3 committees pursuant to subsection (c) of that section: Pro4 vided, That before issuing a letter of offer to sell excess

5 defense articles under the Arms Export Control Act, the

6 Department of Defense shall notify the Committees on

7 Appropriations in accordance with the regular notification

8 procedures of such Committees: Provided further, That

9 such Committees shall also be informed of the original ac10 quisition cost of such defense articles.

11 AUTHORIZATION REQUIREMENT

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

13 obligated and expended notwithstanding section 10 of

14 Public Law 91–672 and section 15 of the State Depart15 ment Basic Authorities Act of 1956.

16 PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST

17 COUNTRIES

18 SEC. 527. (a) Funds appropriated for bilateral assist19 ance under any heading of this Act and funds appro20 priated under any such heading in a provision of law en21 acted prior to enactment of this Act, shall not be made

22 available to any country which the President determines—

23 (1) grants sanctuary from prosecution to any

24 individual or group which has committed an act of

25 international terrorism, or

26 (2) otherwise supports international terrorism.
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1 (b) The President may waive the application of sub2 section (a) to a country if the President determines that

3 national security or humanitarian reasons justify such

4 waiver. The President shall publish each waiver in the

5 Federal Register and, at least fifteen days before the waiv6 er takes effect, shall notify the Committees on Appropria7 tions of the waiver (including the justification for the waiv8 er) in accordance with the regular notification procedures

9 of the Committees on Appropriations.

10 COMMERCIAL LEASING OF DEFENSE ARTICLES

11 SEC. 528. Notwithstanding any other provision of

12 law, and subject to the regular notification procedures of

13 the Committees on Appropriations, the authority of sec14 tion 23(a) of the Arms Export Control Act may be used

15 to provide financing to Israel, Egypt and NATO and

16 major non-NATO allies for the procurement by leasing

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

18 articles from United States commercial suppliers, not in19 cluding Major Defense Equipment (other than helicopters

20 and other types of aircraft having possible civilian applica21 tion), if the President determines that there are compel22 ling foreign policy or national security reasons for those

23 defense articles being provided by commercial lease rather

24 than by government-to-government sale under such Act.
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1 COMPETITIVE INSURANCE

2 SEC. 528A. All Agency for International Development

3 contracts and solicitations, and subcontracts entered into

4 under such contracts, shall include a clause requiring that

5 United States insurance companies have a fair oppor6 tunity to bid for insurance when such insurance is nec7 essary or appropriate.

8 STINGERS IN THE PERSIAN GULF REGION

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

10 Foreign Operations, Export Financing, and Related Pro11 grams Appropriations Act, 1990, the United States may

12 not sell or otherwise make available any Stingers to any

13 country bordering the Persian Gulf under the Arms Ex14 port Control Act or chapter 2 of part II of the Foreign

15 Assistance Act of 1961.

16 DEBT-FOR-DEVELOPMENT

17 SEC. 530. In order to enhance the continued partici18 pation of nongovernmental organizations in economic as19 sistance activities under the Foreign Assistance Act of

20 1961, including endowments, debt-for-development and

21 debt-for-nature exchanges, a nongovernmental organiza22 tion which is a grantee or contractor of the Agency for

23 International Development may place in interest bearing

24 accounts funds made available under this Act or prior Acts

25 or local currencies which accrue to that organization as

26 a result of economic assistance provided under title II of
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1 this Act and any interest earned on such investment shall

2 be used for the purpose for which the assistance was pro3 vided to that organization.

4 SEPARATE ACCOUNTS

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

6 CURRENCIES.—(1) If assistance is furnished to the gov7 ernment of a foreign country under chapters 1 and 10 of

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

9 Act of 1961 under agreements which result in the genera10 tion of local currencies of that country, the Administrator

11 of the Agency for International Development shall—

12 (A) require that local currencies be deposited in

13 a separate account established by that government;

14 (B) enter into an agreement with that govern15 ment which sets forth—

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

17 generated, and

18 (ii) the terms and conditions under which

19 the currencies so deposited may be utilized, con20 sistent with this section; and

21 (C) establish by agreement with that govern22 ment the responsibilities of the Agency for Inter23 national Development and that government to mon24 itor and account for deposits into and disbursements

25 from the separate account.
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1 (2) USES OF LOCAL CURRENCIES.—As may be

2 agreed upon with the foreign government, local currencies

3 deposited in a separate account pursuant to subsection

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

5 used only—

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

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

8 purposes as—

9 (i) project and sector assistance activities,

10 or

11 (ii) debt and deficit financing; or

12 (B) for the administrative requirements of the

13 United States Government.

14 (3) PROGRAMMING ACCOUNTABILITY.—The Agency

15 for International Development shall take all necessary

16 steps to ensure that the equivalent of the local currencies

17 disbursed pursuant to subsection (a)(2)(A) from the sepa18 rate account established pursuant to subsection (a)(1) are

19 used for the purposes agreed upon pursuant to subsection

20 (a)(2).

21 (4) TERMINATION OF ASSISTANCE PROGRAMS.—

22 Upon termination of assistance to a country under chap23 ters 1 or 10 of part I or chapter 4 of part II (as the case

24 may be), any unencumbered balances of funds which re25 main in a separate account established pursuant to sub-
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1 section (a) shall be disposed of for such purposes as may

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

3 United States Government.

4 (5) CONFORMING AMENDMENTS.—The provisions of

5 this subsection shall supersede the tenth and eleventh pro6 visos contained under the heading ‘‘Sub-Saharan Africa,

7 Development Assistance’’ as included in the Foreign Oper8 ations, Export Financing, and Related Programs Appro9 priations Act, 1989 and sections 531(d) and 609 of the

10 Foreign Assistance Act of 1961.

11 (6) REPORTING REQUIREMENT.—The Administrator

12 of the Agency for International Development shall report

13 on an annual basis as part of the justification documents

14 submitted to the Committees on Appropriations on the use

15 of local currencies for the administrative requirements of

16 the United States Government as authorized in subsection

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

18 local currency (and United States dollar equivalent) used

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

20 country.

21 (b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—

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

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

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

25 as cash transfer assistance or as nonproject sector assist-
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1 ance, that country shall be required to maintain such

2 funds in a separate account and not commingle them with

3 any other funds.

4 (2) APPLICABILITY OF OTHER PROVISIONS OF

5 LAW.—Such funds may be obligated and expended not6 withstanding provisions of law which are inconsistent with

7 the nature of this assistance including provisions which

8 are referenced in the Joint Explanatory Statement of the

9 Committee of Conference accompanying House Joint Res10 olution 648 (H. Report No. 98–1159).

11 (3) NOTIFICATION.—At least fifteen days prior to ob12 ligating any such cash transfer or nonproject sector assist13 ance, the President shall submit a notification through the

14 regular notification procedures of the Committees on Ap15 propriations, which shall include a detailed description of

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

17 with a discussion of the United States interests that will

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

19 description of the economic policy reforms that will be pro20 moted by such assistance).

21 (4) EXEMPTION.—Nonproject sector assistance funds

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

23 (1) only through the notification procedures of the Com24 mittees on Appropriations.
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1 COMPENSATION FOR UNITED STATES EXECUTIVE DIREC2 TORS TO INTERNATIONAL FINANCING INSTITUTIONS

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

4 be made as payment to any international financial institu5 tion while the United States Executive Director to such

6 institution is compensated by the institution at a rate

7 which, together with whatever compensation such Director

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

9 provided for an individual occupying a position at level IV

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

11 United States Code, or while any alternate United States

12 Director to such institution is compensated by the institu13 tion at a rate in excess of the rate provided for an individ14 ual occupying a position at level V of the Executive Sched15 ule under section 5316 of title 5, United States Code.

16 (b) For purposes of this section, ‘‘international finan17 cial institutions’’ are: the International Bank for Recon18 struction and Development, the Inter-American Develop19 ment Bank, the Asian Development Bank, the Asian De20 velopment Fund, the African Development Bank, the Afri21 can Development Fund, the International Monetary Fund,

22 the North American Development Bank, and the Euro23 pean Bank for Reconstruction and Development.
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1 COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST

2 IRAQ

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

4 funds appropriated or otherwise made available pursuant

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

6 1961 (including title IV of chapter 2 of part I, relating

7 to the Overseas Private Investment Corporation) or the

8 Arms Export Control Act may be used to provide assist9 ance to any country that is not in compliance with the

10 United Nations Security Council sanctions against Iraq,

11 Serbia or Montenegro unless the President determines and

12 so certifies to the Congress that—

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

14 the United States;

15 (2) such assistance will directly benefit the

16 needy people in that country; or

17 (3) the assistance to be provided will be human18 itarian assistance for foreign nationals who have fled

19 Iraq and Kuwait.

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

21 that the taking of such action would promote the effective22 ness of the economic sanctions of the United Nations and

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

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

25 the national interest, the President may prohibit, for such
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1 a period of time as he considers appropriate, the importa2 tion into the United States of any or all products of any

3 foreign country that has not prohibited—

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

5 or Montenegro into its customs territory, and

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

7 or Montenegro, as the case may be.

8 POW/MIA MILITARY DRAWDOWN

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

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

11 reimbursement by the recipient, of defense articles from

12 the stocks of the Department of Defense, defense services

13 of the Department of Defense, and military education and

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

15 in fiscal year 1997, as may be necessary to carry out sub16 section (b).

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

18 be provided to Vietnam, Cambodia and Laos, under sub19 section (a) as the President determines are necessary to

20 support efforts to locate and repatriate members of the

21 United States Armed Forces and civilians employed di22 rectly or indirectly by the United States Government who

23 remain unaccounted for from the Vietnam War, and to

24 ensure the safety of United States Government personnel

25 engaged in such cooperative efforts and to support United

26 States Department of Defense-sponsored humanitarian
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1 projects associated with the POW/MIA efforts. Any air2 craft shall be provided under this section only to Laos and

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

4 cost notwithstanding section 61 of the Arms Export Con5 trol Act and may be maintained with defense articles, serv6 ices and training provided under this section.

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

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

9 is exercised, submit a report to the Congress which identi10 fies the articles, services, and training drawn down under

11 this section.

12 MEDITERRANEAN EXCESS DEFENSE ARTICLES

13 SEC. 535. For the four-year period beginning on Oc14 tober 1, 1996, the President shall ensure that excess de15 fense articles will be made available under section 516 and

16 519 of the Foreign Assistance Act of 1961 consistent with

17 the manner in which the President made available excess

18 defense articles under those sections during the four-year

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

20 573(e) of the Foreign Operations, Export Financing, Re21 lated Programs Appropriations Act, 1990.

22 CASH FLOW FINANCING

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

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

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

26 Public Law 99–83) under the Foreign Military Financing
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1 Program, any Letter of Offer and Acceptance or other

2 purchase agreement, or any amendment thereto, for a pro3 curement in excess of $100,000,000 that is to be financed

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

5 Act shall be submitted through the regular notification

6 procedures to the Committees on Appropriations.

7 AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMER8 ICAN FOUNDATION AND THE AFRICAN DEVELOP9 MENT FOUNDATION

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

11 provisions of this or any other Act, including provisions

12 contained in prior Acts authorizing or making appropria13 tions for foreign operations, export financing, and related

14 programs, shall not be construed to prohibit activities au15 thorized by or conducted under the Peace Corps Act, the

16 Inter-American Foundation Act, or the African Develop17 ment Foundation Act. The appropriate agency shall

18 promptly report to the Committees on Appropriations

19 whenever it is conducting activities or is proposing to con20 duct activities in a country for which assistance is prohib21 ited.

22 IMPACT ON JOBS IN THE UNITED STATES

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

24 may be obligated or expended to provide—

25 (a) any financial incentive to a business enter26 prise currently located in the United States for the
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1 purpose of inducing such an enterprise to relocate

2 outside the United States if such incentive or in3 ducement is likely to reduce the number of employ4 ees of such business enterprise in the United States

5 because United States production is being replaced

6 by such enterprise outside the United States;

7 (b) assistance for the purpose of establishing or

8 developing in a foreign country any export process9 ing zone or designated area in which the tax, tariff,

10 labor, environment, and safety laws of that country

11 do not apply, in part or in whole, to activities car12 ried out within that zone or area, unless the Presi13 dent determines and certifies that such assistance is

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

15 States; or

16 (c) assistance for any project or activity that

17 contributes to the violation of internationally recog18 nized workers rights, as defined in section 502(a)(4)

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

20 country, including any designated zone or area in

21 that country: Provided, That in recognition that the

22 application of this subsection should be commensu23 rate with the level of development of the recipient

24 country and sector, the provisions of this subsection

25 shall not preclude assistance for the informal sector
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1 in such country, micro and small-scale enterprise,

2 and smallholder agriculture.

3 AUTHORITY TO ASSIST BOSNIA AND HERZEGOVINA

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

5 the transfer, subject to notification of the Committees on

6 Appropriations, to the government of Bosnia and

7 Herzegovina, without reimbursement, of defense articles

8 from the stocks of the Department of Defense and defense

9 services of the Department of Defense, of an aggregate

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

11 and the aggregate value of any such articles and services

12 that were transferred under the authority of Section 540

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

14 Financing, and Related Programs Appropriations Act,

15 1996: Provided, That the President certifies in a timely

16 fashion to the Congress that the transfer of such defense

17 articles would assist that nation in self-defense and there18 by promote the security and stability of the region.

19 (b) Within 60 days of any transfer under the author20 ity provided in subsection (b), and every 60 days there21 after, the President shall report in writing to the Speaker

22 of the House of Representatives and the President pro

23 tempore of the Senate concerning the articles transferred

24 and the disposition thereof.

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

26 President such sums as may be necessary to reimburse
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1 the applicable appropriation, fund, or account for defense

2 articles provided under this section.

3 RESTRICTIONS ON THE TERMINATION OF SANCTIONS

4 AGAINST SERBIA AND MONTENEGRO

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

6 other provision of law, no sanction, prohibition, or require7 ment described in section 1511 of the National Defense

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

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

10 to be effective, unless—

11 (1) the President first submits to the Congress

12 a certification described in subsection (b); and

13 (2) the requirements of section 1511 of that

14 Act are met.

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

16 subsection is a certification that—

17 (1) there is substantial progress toward—

18 (A) the realization of a separate identity

19 for Kosova and the right of the people of

20 Kosova to govern themselves; or

21 (B) the creation of an international protec22 torate for Kosova;

23 (2) there is substantial improvement in the

24 human rights situation in Kosova;

25 (3) international human rights observers are al26 lowed to return to Kosova; and
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1 (4) the elected government of Kosova is per2 mitted to meet and carry out its legitimate mandate

3 as elected representatives of the people of Kosova.

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

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

6 the President certifies to the Congress that the President

7 has determined that the waiver is necessary to meet emer8 gency humanitarian needs or to achieve a negotiated set9 tlement of the conflict in Bosnia and Herzegovina that is

10 acceptable to the parties.

11 SPECIAL AUTHORITIES

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

13 Act that are made available for Afghanistan, Lebanon,

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

15 displaced Burmese, humanitarian assistance for Romania,

16 and humanitarian assistance for the peoples of Bosnia and

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

18 notwithstanding any other provision of law: Provided,

19 That any such funds that are made available for Cam20 bodia shall be subject to the provisions of section 531(e)

21 of the Foreign Assistance Act of 1961 and section 906

22 of the International Security and Development Coopera23 tion Act of 1985: Provided further, That the President

24 shall terminate assistance to any country or organization

25 that he determines is cooperating, tactically or strategi26 cally, with the Khmer Rouge in their military operations,
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1 or to the military of any country which the President de2 termines is not taking steps to prevent a pattern or prac3 tice of commercial relations between its members and the

4 Khmer Rouge.

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

6 provisions of sections 103 through 106 of the Foreign As7 sistance Act of 1961 may be used, notwithstanding any

8 other provision of law, for the purpose of supporting tropi9 cal forestry and energy programs aimed at reducing emis10 sions of greenhouse gases, and for the purpose of support11 ing biodiversity conservation activities: Provided, That

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

13 620A of the Foreign Assistance Act of 1961.

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

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

16 the Foreign Assistance Act of 1961, notwithstanding the

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

18 (d) The Agency for International Development may

19 employ personal services contractors, notwithstanding any

20 other provision of law, for the purpose of administering

21 programs for the West Bank and Gaza.

22 POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT

23 OF ISRAEL

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

25 (1) the Arab League countries should imme26 diately and publicly renounce the primary boycott of
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1 Israel and the secondary and tertiary boycott of

2 American firms that have commercial ties with Is3 rael; and

4 (2) the President should—

5 (A) take more concrete steps to encourage

6 vigorously Arab League countries to renounce

7 publicly the primary boycotts of Israel and the

8 secondary and tertiary boycotts of American

9 firms that have commercial relations with Israel

10 as a confidence-building measure;

11 (B) take into consideration the participa12 tion of any recipient country in the primary

13 boycott of Israel and the secondary and tertiary

14 boycotts of American firms that have commer15 cial relations with Israel when determining

16 whether to sell weapons to said country;

17 (C) report to Congress on the specific

18 steps being taken by the President to bring

19 about a public renunciation of the Arab primary

20 boycott of Israel and the secondary and tertiary

21 boycotts of American firms that have commer22 cial relations with Israel; and

23 (D) encourage the allies and trading part24 ners of the United States to enact laws prohib-
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1 iting businesses from complying with the boy2 cott and penalizing businesses that do comply.

3 ANTI-NARCOTICS ACTIVITIES

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

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

6 assistance may be provided to strengthen the administra7 tion of justice in countries in Latin America and the Car8 ibbean and in other regions consistent with the provisions

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

10 except that programs to enhance protection of participants

11 in judicial cases may be conducted notwithstanding section

12 660 of that Act.

13 (b) Funds made available pursuant to this section

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

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

16 Foreign Assistance Act of 1961. Funds made available

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

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

19 the second sentence of section 534(e) of the Foreign As20 sistance Act of 1961.

21 ELIGIBILITY FOR ASSISTANCE

22 SEC. 544. (a) ASSISTANCE THROUGH NONGOVERN23 MENTAL ORGANIZATIONS.—Restrictions contained in this

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

25 shall not be construed to restrict assistance in support of

26 programs of nongovernmental organizations from funds
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1 appropriated by this Act to carry out the provisions of

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

3 of 1961: Provided, That the President shall take into con4 sideration, in any case in which a restriction on assistance

5 would be applicable but for this subsection, whether assist6 ance in support of programs of nongovernmental organiza7 tions is in the national interest of the United States: Pro8 vided further, That before using the authority of this sub9 section to furnish assistance in support of programs of

10 nongovernmental organizations, the President shall notify

11 the Committees on Appropriations under the regular noti12 fication procedures of those committees, including a de13 scription of the program to be assisted, the assistance to

14 be provided, and the reasons for furnishing such assist15 ance: Provided further, That nothing in this subsection

16 shall be construed to alter any existing statutory prohibi17 tions against abortion or involuntary sterilizations con18 tained in this or any other Act.

19 (b) PUBLIC LAW 480.—During fiscal year 1997, re20 strictions contained in this or any other Act with respect

21 to assistance for a country shall not be construed to re22 strict assistance under the Agricultural Trade Develop23 ment and Assistance Act of 1954: Provided, That none

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

25 and made available pursuant to this subsection may be
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1 obligated or expended except as provided through the reg2 ular notification procedures of the Committees on Appro3 priations.

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

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

6 Assistance Act or any comparable provision of law

7 prohibiting assistance to countries that support

8 international terrorism; or

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

10 Assistance Act of 1961 or any comparable provision

11 of law prohibiting assistance to countries that violate

12 internationally recognized human rights.

13 EARMARKS

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

15 are earmarked may be reprogrammed for other programs

16 within the same account notwithstanding the earmark if

17 compliance with the earmark is made impossible by oper18 ation of any provision of this or any other Act or, with

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

20 agreement providing the United States with base rights

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

22 that the recipient for which funds are earmarked has sig23 nificantly reduced its military or economic cooperation

24 with the United States since enactment of the Foreign Op25 erations, Export Financing, and Related Programs Appro26 priations Act, 1991; however, before exercising the author-
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1 ity of this subsection with regard to a base rights or base

2 access country which has significantly reduced its military

3 or economic cooperation with the United States, the Presi4 dent shall consult with, and shall provide a written policy

5 justification to the Committees on Appropriations: Pro6 vided, That any such reprogramming shall be subject to

7 the regular notification procedures of the Committees on

8 Appropriations: Provided further, That assistance that is

9 reprogrammed pursuant to this subsection shall be made

10 available under the same terms and conditions as origi11 nally provided.

12 (b) In addition to the authority contained in sub13 section (a), the original period of availability of funds ap14 propriated by this Act and administered by the Agency

15 for International Development that are earmarked for par16 ticular programs or activities by this or any other Act shall

17 be extended for an additional fiscal year if the Adminis18 trator of such agency determines and reports promptly to

19 the Committees on Appropriations that the termination of

20 assistance to a country or a significant change in cir21 cumstances makes it unlikely that such earmarked funds

22 can be obligated during the original period of availability:

23 Provided, That such earmarked funds that are continued

24 available for an additional fiscal year shall be obligated

25 only for the purpose of such earmark.
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1 CEILINGS AND EARMARKS

2 SEC. 545. Ceilings and earmarks contained in this

3 Act shall not be applicable to funds or authorities appro4 priated or otherwise made available by any subsequent Act

5 unless such Act specifically so directs.

6 PROHIBITION ON PUBLICITY OR PROPAGANDA

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

8 this Act shall be used for publicity or propaganda purposes

9 within the United States not authorized before the date

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

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

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

13 USE OF AMERICAN RESOURCES

14 SEC. 547. To the maximum extent possible, assist15 ance provided under this Act should make full use of

16 American resources, including commodities, products, and

17 services.

18 PROHIBITION OF PAYMENTS TO UNITED NATIONS

19 MEMBERS

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

21 available pursuant to this Act for carrying out the Foreign

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

23 in part any assessments, arrearages, or dues of any mem24 ber of the United Nations.
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1 CONSULTING SERVICES

2 SEC. 549. The expenditure of any appropriation

3 under this Act for any consulting service through procure4 ment contract, pursuant to section 3109 of title 5, United

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

6 expenditures are a matter of public record and available

7 for public inspection, except where otherwise provided

8 under existing law, or under existing Executive order pur9 suant to existing law.

10 PRIVATE VOLUNTARY ORGANIZATIONS—DOCUMENTATION

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

12 available pursuant to this Act shall be available to a pri13 vate voluntary organization which fails to provide upon

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

15 the auditing requirements of the Agency for International

16 Development.

17 PROHIBITION ON ASSISTANCE TO FOREIGN GOVERN18 MENTS THAT EXPORT LETHAL MILITARY EQUIP19 MENT TO COUNTRIES SUPPORTING INTERNATIONAL

20 TERRORISM

21 SEC. 551. (a) None of the funds appropriated or oth22 erwise made available by this Act may be available to any

23 foreign government which provides lethal military equip24 ment to a country the government of which the Secretary

25 of State has determined is a terrorist government for pur26 poses of section 40(d) of the Arms Export Control Act.
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1 The prohibition under this section with respect to a for2 eign government shall terminate 12 months after that gov3 ernment ceases to provide such military equipment. This

4 section applies with respect to lethal military equipment

5 provided under a contract entered into after the date of

6 enactment of this Act.

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

8 other similar provision of law, may be furnished if the

9 President determines that furnishing such assistance is

10 important to the national interests of the United States.

11 (c) Whenever the waiver of subsection (b) is exer12 cised, the President shall submit to the appropriate con13 gressional committees a report with respect to the furnish14 ing of such assistance. Any such report shall include a de15 tailed explanation of the assistance to be provided, includ16 ing the estimated dollar amount of such assistance, and

17 an explanation of how the assistance furthers United

18 States national interests.

19 WITHHOLDING OF ASSISTANCE FOR PARKING FINES

20 OWED BY FOREIGN COUNTRIES

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

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

23 Assistance Act of 1961, an amount equivalent to 110 per24 cent of the total unpaid fully adjudicated parking fines

25 and penalties owed to the District of Columbia by such

26 country as of the date of enactment of this Act shall be
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1 withheld from obligation for such country until the Sec2 retary of State certifies and reports in writing to the ap3 propriate congressional committees that such fines and

4 penalties are fully paid to the government of the District

5 of Columbia.

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

7 term ‘‘appropriate congressional committees’’ means the

8 Committee on Foreign Relations and the Committee on

9 Appropriations of the Senate and the Committee on Inter10 national Relations and the Committee on Appropriations

11 of the House of Representatives.

12 LIMITATION ON ASSISTANCE FOR THE PLO FOR THE

13 WEST BANK AND GAZA

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

15 may be obligated for assistance for the Palestine Libera16 tion Organization for the West Bank and Gaza unless the

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

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

19 VI of Public Law 104–107) or any other legislation to sus20 pend or make inapplicable section 307 of the Foreign As21 sistance Act of 1961 and that suspension is still in effect:

22 Provided, That if the President fails to make the certifi23 cation under section 604(b)(2) of the Middle East Peace

24 Facilitation Act of 1995 or to suspend the prohibition

25 under other legislation, funds appropriated by this Act
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1 may not be obligated for assistance for the Palestine Lib2 eration Organization for the West Bank and Gaza.

3 EXPORT FINANCING TRANSFER AUTHORITIES

4 SEC. 554. Not to exceed 5 percent of any appropria5 tion other than for administrative expenses made available

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

7 may be transferred between such appropriations for use

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

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

10 such appropriation, except as otherwise specifically pro11 vided, shall be increased by more than 25 percent by any

12 such transfer: Provided, That the exercise of such author13 ity shall be subject to the regular notification procedures

14 of the Committees on Appropriations.

15 WAR CRIMES TRIBUNALS

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

17 will contribute to a just resolution of charges regarding

18 genocide or other violations of international humanitarian

19 law, the President may direct a drawdown pursuant to sec20 tion 552(c) of the Foreign Assistance Act of 1961, as

21 amended, of up to $50,000,000 of commodities and serv22 ices for the United Nations War Crimes Tribunal estab23 lished with regard to the former Yugoslavia by the United

24 Nations Security Council or such other tribunals or com25 missions as the Council may establish to deal with such

26 violations, without regard to the ceiling limitation con-
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1 tained in paragraph (2) thereof: Provided, That the deter2 mination required under this section shall be in lieu of

3 any determinations otherwise required under section

4 552(c): Provided further, That 60 days after the date of

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

6 Secretary of State shall submit a report to the Committees

7 on Appropriations describing the steps the United States

8 Government is taking to collect information regarding alle9 gations of genocide or other violations of international law

10 in the former Yugoslavia and to furnish that information

11 to the United Nations War Crimes Tribunal for the former

12 Yugoslavia.

13 LANDMINES

14 SEC. 556. Notwithstanding any other provision of

15 law, demining equipment available to any department or

16 agency and used in support of the clearing of landmines

17 for humanitarian purposes may be disposed of on a grant

18 basis in foreign countries, subject to such terms and condi19 tions as the President may prescribe.

20 RESTRICTIONS CONCERNING THE PALESTINIAN

21 AUTHORITY

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

23 may be obligated or expended to create in any part of Je24 rusalem a new office of any department or agency of the

25 United States Government for the purpose of conducting

26 official United States Government business with the Pal-
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1 estinian Authority over Gaza and Jericho or any successor

2 Palestinian governing entity provided for in the Israel3 PLO Declaration of Principles: Provided, That this re4 striction shall not apply to the acquisition of additional

5 space for the existing Consulate General in Jerusalem:

6 Provided further, That meetings between officers and em7 ployees of the United States and officials of the Palestin8 ian Authority, or any successor Palestinian governing en9 tity provided for in the Israel-PLO Declaration of Prin10 ciples, for the purpose of conducting official United States

11 Government business with such authority should continue

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

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

14 States Government may continue to meet in Jerusalem on

15 other subjects with Palestinians (including those who now

16 occupy positions in the Palestinian Authority), have social

17 contacts, and have incidental discussions.

18 PROHIBITION OF PAYMENT OF CERTAIN EXPENSES

19 SEC. 558. None of the funds appropriated or other20 wise made available by this Act under the heading

21 ‘‘INTERNATIONAL MILITARY EDUCATION AND TRAINING’’

22 or ‘‘FOREIGN MILITARY FINANCING PROGRAM’’ for Infor23 mational Program activities may be obligated or expended

24 to pay for—

25 (1) alcoholic beverages;
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1 (2) food (other than food provided at a military

2 installation) not provided in conjunction with Infor3 mational Program trips where students do not stay

4 at a military installation; or

5 (3) entertainment expenses for activities that

6 are substantially of a recreational character, includ7 ing entrance fees at sporting events and amusement

8 parks.

9 HUMANITARIAN ASSISTANCE

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

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

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

13 President that the government of such country prohibits

14 or otherwise restricts, directly or indirectly, the transport

15 or delivery of United States humanitarian assistance.

16 (b) EXCEPTION.—Funds (other than funds appro17 priated in this Act under the heading ‘‘Economic Support

18 Fund’’) may be made available without regard to the re19 striction in subsection (a) if the President determines that

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

21 States.

22 WITHHOLDING OF ASSISTANCE TO COUNTRIES

23 SUPPORTING NUCLEAR PLANT IN CUBA

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

25 withhold from assistance made available with funds appro26 priated or made available pursuant to this Act an amount
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1 equal to the sum of assistance and credits, if any, provided

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

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

4 completion of the Cuban nuclear facility at Juragua, near

5 Cienfuegos, Cuba.

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

7 to withhold assistance shall not apply with respect to—

8 (1) assistance to meet urgent humanitarian

9 needs including disaster and refugee relief;

10 (2) democratic political reform and rule of law

11 activities;

12 (3) support for private sector and nongovern13 mental organizations that are independent of govern14 ment control;

15 (4) the development of a free market economic

16 system; and

17 (5) assistance for the purposes described in the

18 Cooperative Threat Reduction Act of 1993 (title XII

19 of Public Law 103–160).

20 EQUITABLE ALLOCATION OF FUNDS

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

22 appropriated by this Act to carry out the provisions of sec23 tions 103 through 106 and chapter 4 of part II of the

24 Foreign Assistance Act of 1961, that are made available

25 for Latin America and the Caribbean region may be made

26 available, through bilateral and Latin America and the
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1 Caribbean regional programs, to provide assistance for

2 any country in such region.

3 PURCHASE OF AMERICAN-MADE EQUIPMENT AND

4 PRODUCTS

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

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

7 all equipment and products purchased with funds made

8 available in this Act should be American-made.

9 (b) NOTICE REQUIREMENT.—In providing financial

10 assistance to, or entering into any contract with, any en11 tity using funds made available in this Act, the head of

12 each Federal agency, to the greatest extent practicable,

13 shall provide to such entity a notice describing the state14 ment made in subsection (a) by the Congress.

15 LIMITATION OF FUNDS FOR NORTH AMERICAN

16 DEVELOPMENT BANK

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

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

19 and made available for the Community Adjustment and

20 Investment Program shall be used for purposes other than

21 those set out in the binational agreement establishing the

22 Bank.

23 INTERNATIONAL DEVELOPMENT ASSOCIATION

24 SEC. 564. In order to pay for the United States con25 tribution to the tenth replenishment of the resources of

26 the International Development Association authorized in
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1 section 526 of Public Law 103–87, there is authorized to

2 be appropriated, without fiscal year limitation,

3 $525,000,000 for payment by the Secretary of the Treas4 ury.

5 SPECIAL DEBT RELIEF FOR THE POOREST

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

7 President may reduce amounts owed to the United States

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

9 as a result of—

10 (1) guarantees issued under sections 221 and

11 222 of the Foreign Assistance Act of 1961; or

12 (2) credits extended or guarantees issued under

13 the Arms Export Control Act.

14 (b) LIMITATIONS.—

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

16 may be exercised only to implement multilateral offi17 cial debt relief and referendum agreements, com18 monly referred to as ‘‘Paris Club Agreed Minutes’’.

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

20 may be exercised only in such amounts or to such

21 extent as is provided in advance by appropriations

22 Acts.

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

24 may be exercised only with respect to countries with

25 heavy debt burdens that are eligible to borrow from

26 the International Development Association, but not
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1 from the International Bank for Reconstruction and

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

3 countries.

4 (c) CONDITIONS.—The authority provided by sub5 section (a) may be exercised only with respect to a country

6 whose government—

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

8 expenditures;

9 (2) has not repeatedly provided support for acts

10 of international terrorism;

11 (3) is not failing to cooperate on international

12 narcotics control matters;

13 (4) (including its military or other security

14 forces) does not engage in a consistent pattern of

15 gross violations of internationally recognized human

16 rights; and

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

18 application of section 527 of the Foreign Relations

19 Authorization Act, fiscal years 1994 and 1995.

20 (d) AVAILABILITY OF FUNDS.—The authority pro21 vided by subsection (a) may be used only with regard to

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

23 restructuring’’.

24 (e) CERTAIN PROHIBITIONS INAPPLICABLE.—A re25 duction of debt pursuant to subsection (a) shall not be
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1 considered assistance for purposes of any provision of law

2 limiting assistance to a country. The authority provided

3 by subsection (a) may be exercised notwithstanding sec4 tion 620(r) of the Foreign Assistance Act of 1961.

5 AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES

6 SEC. 566. (a) LOANS ELIGIBLE FOR SALE, REDUC7 TION, OR CANCELLATION.—

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

9 CERTAIN LOANS.—Notwithstanding any other provi10 sion of law, the President may, in accordance with

11 this section, sell to any eligible purchaser any

12 concessional loan or portion thereof made before

13 January 1, 1995, pursuant to the Foreign Assist14 ance Act of 1961, to the government of any eligible

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

16 on receipt of payment from an eligible purchaser, re17 duce or cancel such loan or portion thereof, only for

18 the purpose of facilitating—

19 (A) debt-for-equity swaps, debt-for-develop20 ment swaps, or debt-for-nature swaps; or

21 (B) a debt buyback by an eligible country

22 of its own qualified debt, only if the eligible

23 country uses an additional amount of the local

24 currency of the eligible country, equal to not

25 less than 40 percent of the price paid for such

26 debt by such eligible country, or the difference
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1 between the price paid for such debt and the

2 face value of such debt, to support activities

3 that link conservation and sustainable use of

4 natural resources with local community develop5 ment, and child survival and other child devel6 opment, in a manner consistent with sections

7 707 through 710 of the Foreign Assistance Act

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

9 would not contravene any term or condition of

10 any prior agreement relating to such loan.

11 (2) TERMS AND CONDITIONS.—Notwithstanding

12 any other provision of law, the President shall, in ac13 cordance with this section, establish the terms and

14 conditions under which loans may be sold, reduced,

15 or canceled pursuant to this section.

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

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

18 1961, shall notify the administrator of the agency

19 primarily responsible for administering part I of the

20 Foreign Assistance Act of 1961 of purchasers that

21 the President has determined to be eligible, and

22 shall direct such agency to carry out the sale, reduc23 tion, or cancellation of a loan pursuant to this sec24 tion. Such agency shall make an adjustment in its
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1 accounts to reflect the sale, reduction, or cancella2 tion.

3 (4) LIMITATION.—The authorities of this sub4 section shall be available only to the extent that ap5 propriations for the cost of the modification, as de6 fined in section 502 of the Congressional Budget Act

7 of 1974, are made in advance.

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

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

10 or canceled pursuant to this section shall be deposited in

11 the United States Government account or accounts estab12 lished for the repayment of such loan.

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

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

15 presents plans satisfactory to the President for using the

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

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

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

19 any eligible purchaser, or any reduction or cancellation

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

21 country, the President should consult with the country

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

23 canceled and their uses for debt-for-equity swaps, debt24 for-development swaps, or debt-for-nature swaps.
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1 (e) AVAILABILITY OF FUNDS.—The authority pro2 vided by subsection (a) may be used only with regard to

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

4 restructuring’’.

5 LIBERIA

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

7 made available for assistance for Liberia notwithstanding

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

9 section 512 of this Act.

10 GUATEMALA

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

12 made available for the Guatemalan military forces, and

13 the restrictions on Guatemala under the headings ‘‘Inter14 national Military Education and Training’’ and ‘‘Foreign

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

16 President determines and certifies to the Congress that

17 the Guatemalan military is cooperating with efforts to re18 solve human rights abuses which elements of the Guate19 malan military forces are alleged to have committed, or20 dered or attempted to thwart the investigation of.

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

22 not apply to funds made available to implement a ceasefire

23 or peace agreement.

24 (c) Any funds made available pursuant to subsections

25 (a) or (b) shall be subject to the regular notification proce26 dures of the Committees on Appropriations.
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1 (d) Any funds made available pursuant to subsections

2 (a) and (b) for international military education and train3 ing may only be for expanded international military edu4 cation and training.

5 SANCTIONS AGAINST COUNTRIES HARBORING WAR

6 CRIMINALS

7 SEC. 569. (a) BILATERAL ASSISTANCE.—The Presi8 dent is authorized to withhold funds appropriated by this

9 Act under the Foreign Assistance Act of 1961 or the Arms

10 Export Control Act for any country described in sub11 section (c).

12 (b) MULTILATERAL ASSISTANCE.—The Secretary of

13 the Treasury should instruct the United States executive

14 directors of the international financial institutions to work

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

16 institutions of financing or financial or technical assist17 ance to any country described in subsection (c).

18 (c) SANCTIONED COUNTRIES.—A country described

19 in this subsection is a country the government of which

20 knowingly grants sanctuary to persons in its territory for

21 the purpose of evading prosecution, where such persons—

22 (1) have been indicted by the International

23 Criminal Tribunal for the former Yugoslavia, the

24 International Criminal Tribunal for Rwanda, or any

25 other international tribunal with similar standing

26 under international law, or
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1 (2) have been indicted for war crimes or crimes

2 against humanity committed during the period be3 ginning March 23, 1933 and ending on May 8, 1945

4 under the direction of, or in association with—

5 (A) the Nazi government of Germany;

6 (B) any government in any area occupied

7 by the military forces of the Nazi government

8 of Germany;

9 (C) any government which was established

10 with the assistance or cooperation of the Nazi

11 government; or

12 (D) any government which was an ally of

13 the Nazi government of Germany.

14 LIMITATION ON ASSISTANCE FOR HAITI

15 SEC. 570. (a) LIMITATION.—None of the funds ap16 propriated or otherwise made available by this Act, may

17 be provided to the Government of Haiti until the President

18 reports to Congress that—

19 (1) the Government is conducting thorough in20 vestigations of extrajudicial and political killings, in21 cluding the murders of Mireille Bertin, Michel Gon22 zalez, and Jean Hubert Feuille; and

23 (2) the Government is cooperating with United

24 States authorities in the investigations of political

25 and extrajudicial killings.
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1 (b) Nothing in this section shall be construed to re2 strict the provision of humanitarian or electoral assist3 ance.

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

5 section on a quarterly basis if he determines and certifies

6 to the appropriate committees of Congress that it is in

7 the national interest of the United States.

8 (d) The authority contained in the previous sub9 section to make such a determination may be exercised

10 by the President only and may not be delegated.

11 LIMITATION OF ASSISTANCE TO TURKEY

12 SEC. 571. Not more than $25,000,000 of the funds

13 appropriated in this Act under the heading ‘‘Economic

14 Support Fund’’ may be made available to the Government

15 of Turkey.

16 REPORTS REGARDING HONG KONG

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

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

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

20 1997,’’ after ‘‘March 31, 1996,’’.

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

22 to the Congress pursuant to section 301 of the United

23 States-Hong Kong Policy Act (22 U.S.C. 5731), the Con24 gress directs that the additional report required to be sub25 mitted under such section by subsection (a) of this section

26 include detailed information on the status of, and other
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1 developments affecting, implementation of the Sino-Brit2 ish Joint Declaration on the Question of Hong Kong, in3 cluding—

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

5 Joint Declaration;

6 (2) Beijing’s plans to replace the elected legisla7 ture with an appointed body;

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

9 the chief executive and the executive’s accountability

10 to the legislature;

11 (4) the treatment of political parties;

12 (5) the independence of the Judiciary and its

13 ability to exercise the power of final judgment over

14 Hong Kong law; and

15 (6) the Bill of Rights.

16 LIMITATION ON USE OF FUNDS FOR PURCHASE OF

17 PRODUCTS NOT MADE IN AMERICA

18 SEC. 573. None of the funds appropriated in this Act

19 may be made available to the government of any foreign

20 country when it is made known to the Federal official hav21 ing authority to obligate or expend such funds that—

22 (1) the funds are to be used to purchase any

23 equipment or product made in a country other than

24 such foreign country or the United States; and

25 (2) substantially similar equipment or products

26 are made in the United States and available for pur-
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1 chase at a price that is not more than 10 percent

2 higher.

3 LIMITATION ON ASSISTANCE TO TURKEY

4 SEC. 574. Not more than $22,000,000 of the funds

5 appropriated in this Act under the heading ‘‘Economic

6 Support Fund’’ may be made available to the Government

7 of Turkey, except when it is made known to the Federal

8 official having authority to obligate or expend such funds

9 that the Government of Turkey has (1) joined the United

10 States in acknowledging the atrocity committed against

11 the Armenian population of the Ottoman Empire from

12 1915 to 1923; and (2) taken all appropriate steps to honor

13 the memory of the victims of the Armenian genocide.

14 LIMITATION ON FOREIGN MILITARY FINANCING

15 SEC. 575. None of the funds made available under

16 the heading ‘‘Foreign Military Financing Program’’ may

17 be made available for any country when it is made known

18 to the President that the government of such country has

19 not agreed to the Department of Defense conducting dur20 ing the current fiscal year nonreimbursable audits of pri21 vate firms whose contracts are made directly with foreign

22 governments and are financed with funds made available

23 under this heading (as well as subcontractors thereunder)

24 as requested by the Defense Security Assistance Agency.
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1 LIMITATION UNDER ARMS EXPORT CONTROL ACT

2 SEC. 576. Not more than $100,000,000 of the funds

3 made available under the heading ‘‘Foreign Military Fi4 nancing Program’’ may be made available for use in fi5 nancing the procurement of defense articles, defense serv6 ices, or design and construction services that are not sold

7 by the United States Government under the Arms Export

8 Control Act to countries other than Israel and Egypt.

9 LIMITATION ON ASSISTANCE TO MEXICO

10 SEC. 577. None of the funds appropriated or other11 wise made available by this Act may be obligated or ex12 pended for the Government of Mexico, except if it is made

13 known to the Federal entity or official to which funds are

14 appropriated under this Act that—

15 (1) the Government of Mexico is taking actions

16 to reduce the amount of illegal drugs entering the

17 United States from Mexico; and

18 (2) the Government of Mexico—

19 (A) is taking effective actions to apply vig20 orously all law enforcement resources to inves21 tigate, track, capture, incarcerate, and pros22 ecute individuals controlling, supervising, or

23 managing international narcotics cartels or

24 other similar entities and the accomplices of

25 such individuals, individuals responsible for, or
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1 otherwise involved in, corruption, and individ2 uals involved in money-laundering;

3 (B) is pursuing international anti-drug

4 trafficking initiatives;

5 (C) is cooperating fully with international

6 efforts at narcotics interdiction; and

7 (D) is cooperating fully with requests by

8 the United States for assistance in investiga9 tions of money-laundering violations and is

10 making progress toward implementation of ef11 fective laws to prohibit money-laundering.

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

13 Export Financing, and Related Programs Appropriations

14 Act, 1997’’.

Passed the House of Representatives June 11, 1996.

Attest:

Clerk.