IB 

Union Calendar No. 123

108TH CONGRESS 

1ST SESSION H. R. 2800

[Report No. 108–222] 

Making appropriations for foreign operations, export financing, and related 

programs for the fiscal year ending September 30, 2004, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 21, 2003

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

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

State of the Union and ordered to be printed 

A BILL

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

September 30, 2004, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 That the following sums are appropriated, out of any 

4 money in the Treasury not otherwise appropriated, for the 

5 fiscal year ending September 30, 2004, and for other pur6 poses, namely:
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1 TITLE I—EXPORT AND INVESTMENT 

2 ASSISTANCE 

3 EXPORT-IMPORT BANK OF THE UNITED STATES

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

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

10 Corporation Control Act, as may be necessary in carrying 

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

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

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

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

19 Act, that has detonated a nuclear explosive after the date 

20 of the enactment of this Act: Provided further, That not21 withstanding section 1(c) of Public Law 103–428, as 

22 amended, sections 1(a) and (b) of Public Law 103–428 

23 shall remain in effect through October 1, 2004. 

24 ADMINISTRATIVE EXPENSES

25 For administrative expenses to carry out the direct 

26 and guaranteed loan and insurance programs, including 
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1 hire of passenger motor vehicles and services as authorized 

2 by 5 U.S.C. 3109, and not to exceed $30,000 for official 

3 reception and representation expenses for members of the 

4 Board of Directors, $71,395,000: Provided, That the Ex5 port-Import Bank may accept, and use, payment or serv6 ices provided by transaction participants for legal, finan7 cial, or technical services in connection with any trans8 action for which an application for a loan, guarantee or 

9 insurance commitment has been made: Provided further,

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

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

12 shall remain in effect until October 1, 2004. 

13 OVERSEAS PRIVATE INVESTMENT CORPORATION

14 NONCREDIT ACCOUNT

15 The Overseas Private Investment Corporation is au16 thorized to make, without regard to fiscal year limitations, 

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

18 commitments within the limits of funds available to it and 

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

20 That the amount available for administrative expenses to 

21 carry out the credit and insurance programs (including an 

22 amount for official reception and representation expenses 

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

24 $41,385,000: Provided further, That project-specific trans25 action costs, including direct and indirect costs incurred 

26 in claims settlements, and other direct costs associated 
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1 with services provided to specific investors or potential in2 vestors pursuant to section 234 of the Foreign Assistance 

3 Act of 1961, shall not be considered administrative ex4 penses for the purposes of this heading. 

5 PROGRAM ACCOUNT

6 For the cost of direct and guaranteed loans, 

7 $24,000,000, as authorized by section 234 of the Foreign 

8 Assistance Act of 1961, to be derived by transfer from 

9 the Overseas Private Investment Corporation Non-Credit 

10 Account: Provided, That such costs, including the cost of 

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

12 of the Congressional Budget Act of 1974: Provided fur13 ther, That such sums shall be available for direct loan obli14 gations and loan guaranty commitments incurred or made 

15 during fiscal years 2004 and 2005: Provided further, That 

16 such sums shall remain available through fiscal year 2012 

17 for the disbursement of direct and guaranteed loans obli18 gated in fiscal year 2004, and through fiscal year 2013 

19 for the disbursement of direct and guaranteed loans obli20 gated in fiscal year 2005. 

21 In addition, such sums as may be necessary for ad22 ministrative expenses to carry out the credit program may 

23 be derived from amounts available for administrative ex24 penses to carry out the credit and insurance programs in 

25 the Overseas Private Investment Corporation Noncredit 

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

2 TRADE AND DEVELOPMENT AGENCY

3 For necessary expenses to carry out the provisions 

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

5 $50,000,000, to remain available until September 30, 

6 2005. 

7 TITLE II—BILATERAL ECONOMIC ASSISTANCE 

8 FUNDS APPROPRIATED TO THE PRESIDENT

9 For expenses necessary to enable the President to 

10 carry out the provisions of the Foreign Assistance Act of 

11 1961, and for other purposes, to remain available until 

12 September 30, 2004, unless otherwise specified herein, as 

13 follows: 

14 UNITED STATES AGENCY FOR INTERNATIONAL

15 DEVELOPMENT

16 CHILD SURVIVAL AND HEALTH PROGRAMS FUND

17 (INCLUDING TRANSFER OF FUNDS)

18 For necessary expenses to carry out the provisions 

19 of chapters 1 and 10 of part I of the Foreign Assistance 

20 Act of 1961, for child survival, health, and family plan21 ning/reproductive health activities, in addition to funds 

22 otherwise available for such purposes, $2,235,830,000, to 

23 remain available until September 30, 2005: Provided,

24 That this amount shall be made available for such activi25 ties as: (1) programs for the prevention, treatment, con26 trol of, and research on HIV/AIDS, tuberculosis, polio, 
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1 malaria, and other infectious diseases, and for assistance 

2 to communities severely affected by HIV/AIDS, including 

3 children displaced or orphaned by AIDS; (2) family plan4 ning/reproductive health; (3) health, nutrition, water and 

5 sanitation programs, and related education programs, 

6 which directly address the needs of mothers and children; 

7 (4) assistance for children displaced or orphaned by causes 

8 other than AIDS; (5) immunization programs; and (6) 

9 oral rehydration programs: Provided further, That none of 

10 the funds appropriated under this heading may be made 

11 available for nonproject assistance, except that funds may 

12 be made available for such assistance for ongoing health 

13 activities: Provided further, That of the funds appropriated 

14 under this heading, not to exceed $250,000, in addition 

15 to funds otherwise available for such purposes, may be 

16 used to monitor and provide oversight of child survival, 

17 maternal and family planning/reproductive health, and in18 fectious disease programs: Provided further, That the fol19 lowing amounts should be allocated as follows: 

20 $324,000,000 for child survival and maternal health; 

21 $27,000,000 for vulnerable children; $840,830,000 for 

22 HIV/AIDS; $155,500,000 for other infectious diseases; 

23 $368,500,000 for family planning/reproductive health; and 

24 $120,000,000 for UNICEF: Provided further, That of the 

25 funds appropriated under this heading, and in addition to 
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1 funds allocated under the previous proviso, not less than 

2 $400,000,000 shall be made available, not withstanding 

3 any other provision of law, for a United States contribu4 tion to the Global Fund to Fight AIDS, Tuberculosis and 

5 Malaria (the ‘‘Global Fund’’), and shall be expended at 

6 the minimum rate necessary to make timely payment for 

7 projects and activities: Provided further, That of the funds 

8 appropriated and allocated for HIV/AIDS and the Global 

9 Fund under this Act, not to exceed $870,830,000 may be 

10 apportioned to the Office of the Coordinator of United 

11 States Government Activities to Combat HIV/AIDS Glob12 ally (the ‘‘Coordinator’’), of which amount: $400,000,000 

13 shall be made available as a contribution to the Global 

14 Fund; not less than $15,000,000 should be made available 

15 as a contribution to the International AIDS Vaccine Ini16 tiative; not more than $6,326,000 may be available for ad17 ministrative expenses; and not more than $50,000,000 

18 may be made available under the authority contained in 

19 section 1(f)(2)(A)(iii) of the State Department Basic Au20 thorities Act of 1956: Provided further, That no United 

21 States contribution to the Global Fund may cause the 

22 total amount of United States Government contributions 

23 to the Global Fund to exceed one-half of the total amount 

24 of funds contributed to the Global Fund from all other 

25 sources: Provided further, That if, by June 30, 2004, the 
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1 application of the previous proviso prevents a contribution 

2 of the full amount allocated for the Global Fund, the 

3 amount that cannot be made available for the Global Fund 

4 may be made available by the Coordinator, through rel5 evant executive branch agencies, for activities to combat 

6 HIV/AIDS, tuberculosis, or malaria, subject to prior con7 sultation with the Committees on Appropriations: Pro8 vided further, That in carrying out the duties specified in 

9 section 1(f)(2)(B)(ii)(VII) of the State Department Basic 

10 Authorities Act of 1956, the Coordinator shall ensure that 

11 assistance is provided for activities in not fewer than 15 

12 countries, at least one of which shall not be in Africa or 

13 the Caribbean region: Provided further, That of the funds 

14 appropriated under this heading, up to $60,000,000 may 

15 be made available for a United States contribution to the 

16 Vaccine Fund, and up to $6,000,000 may be transferred 

17 to and merged with funds appropriated by this Act under 

18 the heading ‘‘Operating Expenses of the United States 

19 Agency for International Development’’ for costs directly 

20 related to international health, but funds made available 

21 for such costs may not be derived from amounts made 

22 available for contribution under the preceding provisos: 

23 Provided further, That notwithstanding any other provi24 sion of this Act, funds appropriated under this heading 

25 that are available for child survival and health programs, 
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1 shall be apportioned to the Office of the Coordinator, or 

2 the United States Agency for International Development, 

3 and the authority of sections 632(a) or 632(b) of the For4 eign Assistance Act of 1961, or any comparable provision 

5 of law, may not be used to transfer or allocate any part 

6 of such funds to the Department of Health and Human 

7 Services including any office of that agency, except that 

8 the authority of those sections may be used to transfer 

9 or allocate up to $35,000,000 of such funds to the Centers 

10 for Disease Control and Prevention: Provided further,

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

12 any unobligated balances from prior appropriations may 

13 be made available to any organization or program which, 

14 as determined by the President of the United States, sup15 ports or participates in the management of a program of 

16 coercive abortion or involuntary sterilization: Provided fur17 ther, That none of the funds made available under this 

18 Act may be used to pay for the performance of abortion 

19 as a method of family planning or to motivate or coerce 

20 any person to practice abortions: Provided further, That 

21 none of the funds made available under this Act may be 

22 used to lobby for or against abortion: Provided further,

23 That in order to reduce reliance on abortion in developing 

24 nations, funds shall be available only to voluntary family 

25 planning projects which offer, either directly or through 
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1 referral to, or information about access to, a broad range 

2 of family planning methods and services, and that any 

3 such voluntary family planning project shall meet the fol4 lowing requirements: (1) service providers or referral 

5 agents in the project shall not implement or be subject 

6 to quotas, or other numerical targets, of total number of 

7 births, number of family planning acceptors, or acceptors 

8 of a particular method of family planning (this provision 

9 shall not be construed to include the use of quantitative 

10 estimates or indicators for budgeting and planning pur11 poses); (2) the project shall not include payment of incen12 tives, bribes, gratuities, or financial reward to: (A) an indi13 vidual in exchange for becoming a family planning accep14 tor; or (B) program personnel for achieving a numerical 

15 target or quota of total number of births, number of fam16 ily planning acceptors, or acceptors of a particular method 

17 of family planning; (3) the project shall not deny any right 

18 or benefit, including the right of access to participate in 

19 any program of general welfare or the right of access to 

20 health care, as a consequence of any individual’s decision 

21 not to accept family planning services; (4) the project shall 

22 provide family planning acceptors comprehensible infor23 mation on the health benefits and risks of the method cho24 sen, including those conditions that might render the use 

25 of the method inadvisable and those adverse side effects 
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1 known to be consequent to the use of the method; and 

2 (5) the project shall ensure that experimental contracep3 tive drugs and devices and medical procedures are pro4 vided only in the context of a scientific study in which 

5 participants are advised of potential risks and benefits; 

6 and, not less than 60 days after the date on which the 

7 Administrator of the United States Agency for Inter8 national Development determines that there has been a 

9 violation of the requirements contained in paragraph (1), 

10 (2), (3), or (5) of this proviso, or a pattern or practice 

11 of violations of the requirements contained in paragraph 

12 (4) of this proviso, the Administrator shall submit to the 

13 Committees on Appropriations a report containing a de14 scription of such violation and the corrective action taken 

15 by the Agency: Provided further, That in awarding grants 

16 for natural family planning under section 104 of the For17 eign Assistance Act of 1961 no applicant shall be discrimi18 nated against because of such applicant’s religious or con19 scientious commitment to offer only natural family plan20 ning; and, additionally, all such applicants shall comply 

21 with the requirements of the previous proviso: Provided 

22 further, That for purposes of this or any other Act author23 izing or appropriating funds for foreign operations, export 

24 financing, and related programs, the term ‘‘motivate’’, as 

25 it relates to family planning assistance, shall not be con-
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1 strued to prohibit the provision, consistent with local law, 

2 of information or counseling about all pregnancy options: 

3 Provided further, That nothing in this paragraph shall be 

4 construed to alter any existing statutory prohibitions 

5 against abortion under section 104 of the Foreign Assist6 ance Act of 1961: Provided further, That information pro7 vided about the use of condoms as part of projects or ac8 tivities that are funded from accounts appropriated by this 

9 Act shall be medically accurate and shall include the public 

10 health benefits and failure rates of such use. 

11 DEVELOPMENT ASSISTANCE

12 For necessary expenses of the United States Agency 

13 for International Development to carry out the provisions 

14 of sections 103, 105, 106, and 131, and chapter 10 of 

15 part I of the Foreign Assistance Act of 1961, 

16 $1,317,000,000, of which up to $50,000,000 may remain 

17 available until September 30, 2005: Provided, That none 

18 of the funds appropriated under title II of this Act that 

19 are managed by or allocated to the United States Agency 

20 for International Development’s Global Development Sec21 retariat, may be made available except through the regular 

22 notification procedures of the Committees on Appropria23 tions: Provided further, That $194,000,000 should be allo24 cated for trade capacity building: Provided further, That 

25 $250,000,000 should be allocated for basic education: Pro26 vided further, That of the funds appropriated under this 
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1 heading and managed by the United States Agency for 

2 International Development Bureau of Democracy, Con3 flict, and Humanitarian Assistance, not less than 

4 $11,000,000 shall be made available only for programs to 

5 improve women’s leadership capacity in recipient coun6 tries: Provided further, That such funds may not be made 

7 available for construction: Provided further, That of the 

8 funds appropriated under this heading that are made 

9 available for assistance programs for displaced and or10 phaned children and victims of war, not to exceed 

11 $32,500, in addition to funds otherwise available for such 

12 purposes, may be used to monitor and provide oversight 

13 of such programs. 

14 INTERNATIONAL DISASTER AND FAMINE ASSISTANCE

15 For necessary expenses of the United States Agency 

16 for International Development to carry out the provisions 

17 of section 491 of the Foreign Assistance Act of 1961, as 

18 amended for international disaster relief, rehabilitation, 

19 and reconstruction assistance, $235,500,000, to remain 

20 available until expended. 

21 In addition, for necessary expenses of the United 

22 States Agency for International Development for assist23 ance for famine prevention and relief, including for mitiga24 tion of the effects of famine, $80,000,000, to remain avail25 able until expended: Provided, That such funds shall be 

26 made available utilizing the general authorities of section 
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1 491 of the Foreign Assistance Act of 1961, and shall be 

2 in addition to amounts otherwise available for such pur3 poses: Provided further, That funds appropriated by this 

4 paragraph shall be available for obligation subject to prior 

5 consultation with the Committees on Appropriations. 

6 TRANSITION INITIATIVES

7 For necessary expenses of the United States Agency 

8 for International Development for international disaster 

9 rehabilitation and reconstruction assistance pursuant to 

10 section 491 of the Foreign Assistance Act of 1961, 

11 $55,000,000, to remain available until expended, to sup12 port transition to democracy and to long-term develop13 ment of countries in crisis: Provided, That such support 

14 may include assistance to develop, strengthen, or preserve 

15 democratic institutions and processes, revitalize basic in16 frastructure, and foster the peaceful resolution of conflict: 

17 Provided further, That the United States Agency for Inter18 national Development shall submit a report to the Com19 mittees on Appropriations at least 5 days prior to begin20 ning a new program of assistance. 

21 DEVELOPMENT CREDIT AUTHORITY

22 (INCLUDING TRANSFER OF FUNDS)

23 For the cost of direct loans and loan guarantees pro24 vided by the United States Agency for International De25 velopment, as authorized by sections 108 and 635 of the 

26 Foreign Assistance Act of 1961, funds may be derived by 
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1 transfer from funds appropriated by this Act to carry out 

2 part I of such Act and under the heading ‘‘Assistance for 

3 Eastern Europe and the Baltic States’’: Provided, That 

4 such funds shall not exceed $21,000,000, which shall be 

5 made available only for micro and small enterprise pro6 grams, urban programs, and other programs which fur7 ther the purposes of part I of the Act: Provided further,

8 That such costs shall be as defined in section 502 of the 

9 Congressional Budget Act of 1974: Provided further, That 

10 the provisions of section 107A(d) (relating to general pro11 visions applicable to the Development Credit Authority) 

12 of the Foreign Assistance Act of 1961, as contained in 

13 section 306 of H.R. 1486 as reported by the House Com14 mittee on International Relations on May 9, 1997, shall 

15 be applicable to direct loans and loan guarantees provided 

16 under this heading. In addition, for administrative ex17 penses to carry out credit programs administered by the 

18 United States Agency for International Development, 

19 $8,000,000, which may be transferred to and merged with 

20 the appropriation for Operating Expenses of the United 

21 States Agency for International Development: Provided 

22 further, That funds made available under this heading 

23 shall remain available until September 30, 2007. 
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1 PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND

2 DISABILITY FUND

3 For payment to the ‘‘Foreign Service Retirement and 

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

5 Act of 1980, $43,859,000. 

6 OPERATING EXPENSES OF THE UNITED STATES AGENCY

7 FOR INTERNATIONAL DEVELOPMENT

8 (INCLUDING TRANSFER OF FUNDS)

9 For necessary expenses to carry out the provisions 

10 of section 667 of the Foreign Assistance Act of 1961, 

11 $604,100,000, of which $30,000,000 may remain avail12 able until September 30, 2005: Provided, That none of the 

13 funds appropriated under this heading and under the 

14 heading ‘‘Capital Investment Fund’’ may be made avail15 able to finance the construction (including architect and 

16 engineering services), purchase, or long term lease of of17 fices for use by the United States Agency for International 

18 Development, unless the Administrator has identified such 

19 proposed construction (including architect and engineering 

20 services), purchase, or long term lease of offices in a re21 port submitted to the Committees on Appropriations at 

22 least 15 days prior to the obligation of these funds for 

23 such purposes: Provided further, That the previous proviso 

24 shall not apply where the total cost of construction (in25 cluding architect and engineering services), purchase, or 

26 long term lease of offices does not exceed $1,000,000: Pro-
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1 vided further, That in addition not to exceed $15,000,000 

2 may be derived by transfer from the ‘‘Iraq Relief and Re3 construction Fund’’ (Public Law 108–11) to support the 

4 United States Agency for International Development mis5 sion in Iraq: Provided further, That none of the funds in 

6 this Act may be used to open a new overseas mission of 

7 the United States Agency for International Development 

8 without the prior written notification of the Committees 

9 on Appropriations: Provided further, That the authority of 

10 sections 610 and 109 of the Foreign Assistance Act of 

11 1961 may be exercised by the Secretary of State to trans12 fer funds appropriated to carry out chapter 1 of such Act 

13 to ‘‘Operating Expenses of the United States Agency for 

14 International Development’’ in accordance with the provi15 sions of those sections. 

16 CAPITAL INVESTMENT FUND

17 For necessary expenses for overseas construction and 

18 related costs, and for the procurement and enhancement 

19 of information technology and related capital investments 

20 of the United States Agency for International Develop21 ment, pursuant to section 667 of the Foreign Assistance 

22 Act of 1961, $49,300,000, to remain available until ex23 pended: Provided, That this amount is in addition to funds 

24 otherwise available for such purposes: Provided further, 

25 That the Administrator of the United States Agency for 

26 International Development shall assess fair and reasonable 
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1 rental payments for the use of space by employees of other 

2 United States Government agencies in buildings con3 structed using funds appropriated under this heading, and 

4 such rental payments shall be deposited into this account 

5 as an offsetting collection: Provided further, That the rent6 al payments collected pursuant to the previous proviso and 

7 deposited as an offsetting collection shall be available for 

8 obligation only pursuant to the regular notification proce9 dures of the Committees on Appropriations: Provided fur10 ther, That the assignment of United States Government 

11 employees or contractors to space in buildings constructed 

12 using funds appropriated under this heading shall be sub13 ject to the concurrence of the Administrator of the United 

14 States Agency for International Development: Provided 

15 further, That funds appropriated under this heading shall 

16 be available for obligation only pursuant to the regular 

17 notification procedures of the Committees on Appropria18 tions. 

19 OPERATING EXPENSES OF THE UNITED STATES AGENCY

20 FOR INTERNATIONAL DEVELOPMENT OFFICE OF IN21 SPECTOR GENERAL

22 For necessary expenses to carry out the provisions 

23 of section 667 of the Foreign Assistance Act of 1961, 

24 $35,000,000, to remain available until September 30, 

25 2005, which sum shall be available for the Office of the 
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1 Inspector General of the United States 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, $2,240,500,000 to remain avail7 able until September 30, 2005: Provided, That of the 

8 funds appropriated under this heading, not less than 

9 $480,000,000 shall be available only for Israel, which sum 

10 shall be available on a grant basis as a cash transfer and 

11 shall be disbursed within 30 days of the enactment of this 

12 Act: Provided further, That not less than $575,000,000 

13 shall be available only for Egypt, which sum shall be pro14 vided on a grant basis, and of which sum cash transfer 

15 assistance shall be provided with the understanding that 

16 Egypt will undertake significant economic reforms which 

17 are additional to those which were undertaken in previous 

18 fiscal years: Provided further, That in exercising the au19 thority to provide cash transfer assistance for Israel, the 

20 President shall ensure that the level of such assistance 

21 does not cause an adverse impact on the total level of non22 military exports from the United States to such country 

23 and that Israel enters into a side letter agreement in an 

24 amount proportional to the fiscal year 1999 agreement: 

25 Provided further, That of the funds appropriated under 
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1 this heading, not less than $250,000,000 should be made 

2 available only for assistance for Jordan: Provided further,

3 That not less than $12,000,000 of the funds appropriated 

4 under this heading should be made available for Cyprus 

5 to be used only for scholarships, administrative support 

6 of the scholarship program, bicommunal projects, and 

7 measures aimed at reunification of the island and designed 

8 to reduce tensions and promote peace and cooperation be9 tween the two communities on Cyprus: Provided further,

10 That not less than $35,000,000 of the funds appropriated 

11 under this heading should be made available for assistance 

12 for Lebanon of which not less than $4,000,000 should be 

13 available only for American educational institutions for 

14 scholarships and other programs: Provided further, That 

15 notwithstanding section 534(a) of this Act, funds appro16 priated under this heading that are made available for as17 sistance for the Central Government of Lebanon shall be 

18 subject to the regular notification procedures of the Com19 mittees on Appropriations: Provided further, That not to 

20 exceed $65,000,000 of the funds appropriated under this 

21 heading in this Act may be made available for the costs, 

22 as defined in section 502 of the Congressional Budget Act 

23 of 1974, of modifying direct loans and guarantees for 

24 Pakistan: Provided further, That not to exceed 

25 $67,000,000 shall be available to the Department of State 
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1 Office of Overseas Buildings Operation for construction 

2 of United States Agency for International Development 

3 facilities in Mali, Guinea, Cambodia, and Georgia: Pro4 vided further, That funds appropriated under this heading 

5 shall be made available for administrative costs of the 

6 United States Agency for International Development to 

7 provide adequate security, carry out programs in Afghani8 stan, and implement regional programs in Asia and the 

9 Near East, including the Middle East Partnership Initia10 tive, in addition to amounts otherwise available for such 

11 purposes: Provided further, That with respect to funds ap12 propriated under this heading in this Act or prior Acts 

13 making appropriations for foreign operations, export fi14 nancing, and related programs, the responsibility for pol15 icy decisions and justifications for the use of such funds, 

16 including whether there will be a program for a country 

17 that uses those funds and the amount of each such pro18 gram, shall be the responsibility of the Secretary of State 

19 and the Deputy Secretary of State and this responsibility 

20 shall not be delegated. 

21 INTERNATIONAL FUND FOR IRELAND

22 For necessary expenses to carry out the provisions 

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

24 1961, $19,600,000, which shall be available for the United 

25 States contribution to the International Fund for Ireland 

26 and shall be made available in accordance with the provi-
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1 sions of the Anglo-Irish Agreement Support Act of 1986 

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

3 be expended at the minimum rate necessary to make time4 ly payment for projects and activities: Provided further, 

5 That funds made available under this heading shall re6 main available until September 30, 2005. 

7 ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC

8 STATES

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

10 of the Foreign Assistance Act of 1961 and the Support 

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

12 $452,000,000, to remain available until September 30, 

13 2005, which shall be available, notwithstanding any other 

14 provision of law, for assistance and for related programs 

15 for Eastern Europe and the Baltic States: Provided, That 

16 funds appropriated under this heading shall be considered 

17 to be economic assistance under the Foreign Assistance 

18 Act of 1961 for purposes of making available the adminis19 trative authorities contained in that Act for the use of eco20 nomic assistance: Provided further, That funds made avail21 able for assistance for Kosovo from funds appropriated 

22 under this heading and under the headings ‘‘Economic 

23 Support Fund’’ and ‘‘International Narcotics Control and 

24 Law Enforcement’’ should not exceed 15 percent of the 

25 total resources pledged by all donors for calendar year 

26 2004 for assistance for Kosovo as of March 31, 2004. 
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1 (b) Funds appropriated under this heading or in prior 

2 appropriations Acts that are or have been made available 

3 for an Enterprise Fund may be deposited by such Fund 

4 in interest-bearing accounts prior to the Fund’s disburse5 ment of such funds for program purposes. The Fund may 

6 retain for such program purposes any interest earned on 

7 such deposits without returning such interest to the Treas8 ury of the United States and without further appropria9 tion by the Congress. Funds made available for Enterprise 

10 Funds shall be expended at the minimum rate necessary 

11 to make timely payment for projects and activities. 

12 (c) With regard to funds appropriated under this 

13 heading for the economic revitalization program in Bosnia 

14 and Herzegovina, and local currencies generated by such 

15 funds (including the conversion of funds appropriated 

16 under this heading into currency used by Bosnia and 

17 Herzegovina as local currency and local currency returned 

18 or repaid under such program) the Administrator of the 

19 United States Agency for International Development shall 

20 provide written approval for grants and loans prior to the 

21 obligation and expenditure of funds for such purposes, and 

22 prior to the use of funds that have been returned or repaid 

23 to any lending facility or grantee. 

24 (d) The provisions of section 529 of this Act shall 

25 apply to funds made available under subsection (c) and 
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1 to funds appropriated under this heading: Provided, That 

2 notwithstanding any provision of this or any other Act, 

3 including provisions in this subsection regarding the appli4 cation of section 529 of this Act, local currencies gen5 erated by, or converted from, funds appropriated by this 

6 Act and by previous appropriations Acts and made avail7 able for the economic revitalization program in Bosnia 

8 may be used in Eastern Europe and the Baltic States to 

9 carry out the provisions of the Foreign Assistance Act of 

10 1961 and the Support for East European Democracy 

11 (SEED) Act of 1989. 

12 (e) The President is authorized to withhold funds ap13 propriated under this heading made available for economic 

14 revitalization programs in Bosnia and Herzegovina, if he 

15 determines and certifies to the Committees on Appropria16 tions that the Federation of Bosnia and Herzegovina has 

17 not complied with article III of annex 1–A of the General 

18 Framework Agreement for Peace in Bosnia and 

19 Herzegovina concerning the withdrawal of foreign forces, 

20 and that intelligence cooperation on training, investiga21 tions, and related activities between state sponsors of ter22 rorism and terrorist organizations and Bosnian officials 

23 has not been terminated. 
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1 ASSISTANCE FOR THE INDEPENDENT STATES OF THE

2 FORMER SOVIET UNION

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

4 of chapters 11 and 12 of part I of the Foreign Assistance 

5 Act of 1961 and the FREEDOM Support Act, for assist6 ance for the Independent States of the former Soviet 

7 Union and for related programs, $576,000,000, to remain 

8 available until September 30, 2005: Provided, That the 

9 provisions of such chapters shall apply to funds appro10 priated by this paragraph: Provided further, That of the 

11 funds made available for the Southern Caucasus region, 

12 notwithstanding any other provision of law, funds may be 

13 used for confidence-building measures and other activities 

14 in furtherance of the peaceful resolution of the regional 

15 conflicts, especially those in the vicinity of Abkhazia and 

16 Nagorno-Karabagh: Provided further, That of the funds 

17 appropriated under this heading, $1,500,000 should be 

18 available only to meet the health and other assistance 

19 needs of victims of trafficking in persons: Provided further,

20 That, notwithstanding any other provision of law, funds 

21 appropriated under this heading in this Act or prior Acts 

22 making appropriations for foreign operations, export fi23 nancing, and related programs, that are made available 

24 pursuant to the provisions of section 807 of the FREE-
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1 DOM Support Act (Public Law 102–511) shall be subject 

2 to a 6 percent ceiling on administrative expenses. 

3 (b) Of the funds appropriated under this heading, not 

4 less than $70,000,000 should be made available for assist5 ance for Armenia and not less than $90,000,000 should 

6 be available for assistance for Russia. 

7 (c)(1) Of the funds appropriated under this heading 

8 that are allocated for assistance for the Government of 

9 the Russian Federation, 60 percent shall be withheld from 

10 obligation until the President determines and certifies in 

11 writing to the Committees on Appropriations that the Gov12 ernment of the Russian Federation: 

13 (A) has terminated implementation of arrange14 ments to provide Iran with technical expertise, train15 ing, technology, or equipment necessary to develop a 

16 nuclear reactor, related nuclear research facilities or 

17 programs, or ballistic missile capability; and 

18 (B) is providing full access to international non19 government organizations providing humanitarian 

20 relief to refugees and internally displaced persons in 

21 Chechnya. 

22 (2) Paragraph (1) shall not apply to—

23 (A) assistance to combat infectious diseases, 

24 child survival activities, or assistance for victims of 

25 trafficking in persons; and 
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1 (B) activities authorized under title V (Non2 proliferation and Disarmament Programs and Ac3 tivities) of the FREEDOM Support Act. 

4 (d) Of the funds appropriated under this heading, not 

5 less than $63,000,000 should be made available, in addi6 tion to funds otherwise available for such purposes, for 

7 assistance for child survival, environmental and reproduc8 tive health, and to combat HIV/AIDS, tuberculosis and 

9 other infectious diseases, and for related activities. 

10 (e) Section 907 of the FREEDOM Support Act shall 

11 not apply to—

12 (1) activities to support democracy or assist13 ance under title V of the FREEDOM Support Act 

14 and section 1424 of Public Law 104–201 or non15 proliferation assistance; 

16 (2) any assistance provided by the Trade and 

17 Development Agency under section 661 of the For18 eign Assistance Act of 1961 (22 U.S.C. 2421); 

19 (3) any activity carried out by a member of the 

20 United States and Foreign Commercial Service while 

21 acting within his or her official capacity; 

22 (4) any insurance, reinsurance, guarantee or 

23 other assistance provided by the Overseas Private 

24 Investment Corporation under title IV of chapter 2 
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1 of part I of the Foreign Assistance Act of 1961 (22 

2 U.S.C. 2191 et seq.); 

3 (5) any financing provided under the Export4 Import Bank Act of 1945; or 

5 (6) humanitarian assistance. 

6 INDEPENDENT AGENCIES

7 INTER-AMERICAN FOUNDATION

8 For necessary expenses to carry out the functions of 

9 the Inter-American Foundation in accordance with the 

10 provisions of section 401 of the Foreign Assistance Act 

11 of 1969, $15,185,000, to remain available until September 

12 30, 2005. 

13 AFRICAN DEVELOPMENT FOUNDATION

14 For necessary expenses to carry out title V of the 

15 International Security and Development Cooperation Act 

16 of 1980, Public Law 96–533, $17,689,000, to remain 

17 available until September 30, 2005: Provided, That funds 

18 made available to grantees may be invested pending ex19 penditure for project purposes when authorized by the 

20 board of directors of the Foundation: Provided further,

21 That interest earned shall be used only for the purposes 

22 for which the grant was made: Provided further, That not23 withstanding section 505(a)(2) of the African Develop24 ment Foundation Act, in exceptional circumstances the 

25 board of directors of the Foundation may waive the 

26 $250,000 limitation contained in that section with respect 
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1 to a project: Provided further, That the Foundation shall 

2 provide a report to the Committees on Appropriations 

3 after each time such waiver authority is exercised. 

4 PEACE CORPS

5 For necessary expenses to carry out the provisions 

6 of the Peace Corps Act (75 Stat. 612), $314,000,000, in7 cluding the purchase of not to exceed five passenger motor 

8 vehicles for administrative purposes for use outside of the 

9 United States: Provided, That none of the funds appro10 priated under this heading shall be used to pay for abor11 tions: Provided further, That funds appropriated under 

12 this heading shall remain available until September 30, 

13 2005: Provided further, That the Director of the Peace 

14 Corps may make appointments or assignments, or extend 

15 current appointments or assignments, to permit United 

16 States citizens to serve for periods in excess of five years 

17 in the case of individuals whose appointment or assign18 ment, such as regional safety security officers and employ19 ees within the Office of the Inspector General, involves the 

20 safety of Peace Corps volunteers: Provided further, That 

21 the Director of the Peace Corps may make such appoint22 ments or assignments notwithstanding the provisions of 

23 section 7 of the Peace Corps Act limiting the length of 

24 an appointment or assignment, the circumstances under 

25 which such an appointment or assignment may exceed 5 
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1 years, and the percentage of appointments or assignments 

2 that can be made in excess of 5 years. 

3 MILLENNIUM CHALLENGE ACCOUNT

4 For necessary expenses for the ‘‘Millennium Chal5 lenge Account’’, $800,000,000, to remain available until 

6 expended: Provided, That the availability of such amount 

7 is contingent upon enactment of authorization. 

8 DEPARTMENT OF STATE

9 INTERNATIONAL NARCOTICS CONTROL AND LAW

10 ENFORCEMENT

11 For necessary expenses to carry out section 481 of 

12 the Foreign Assistance Act of 1961, $241,700,000: Pro13 vided, That funds appropriated under this heading shall 

14 remain available until September 30, 2005: Provided fur15 ther, That during fiscal year 2004, the Department of 

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

17 Foreign Assistance Act of 1961, without regard to its re18 strictions, to receive excess property from an agency of 

19 the United States Government for the purpose of pro20 viding it to a foreign country under chapter 8 of part I 

21 of that Act subject to the regular notification procedures 

22 of the Committees on Appropriations: Provided further,

23 That the Secretary of State shall provide to the Commit24 tees on Appropriations not later than 45 days after the 

25 date of the enactment of this Act and prior to the initial 

26 obligation of funds appropriated under this heading, a re-
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1 port on the proposed uses of all funds under this heading 

2 on a country-by-country basis for each proposed program, 

3 project, or activity: Provided further, That of the funds 

4 appropriated under this heading, not more than 

5 $24,180,000 may be available for administrative expenses. 

6 ANDEAN COUNTERDRUG INITIATIVE

7 For necessary expenses to carry out section 481 of 

8 the Foreign Assistance Act of 1961 to support 

9 counterdrug activities in the Andean region of South 

10 America, $731,000,000, to remain available until Sep11 tember 30, 2005: Provided, That in fiscal year 2004, 

12 funds available to the Department of State for assistance 

13 to the Government of Colombia shall be available to sup14 port a unified campaign against narcotics trafficking, 

15 against activities by organizations designated as terrorist 

16 organizations such as the Revolutionary Armed Forces of 

17 Colombia (FARC), the National Liberation Army (ELN), 

18 and the United Self-Defense Forces of Colombia (AUC), 

19 and to take actions to protect human health and welfare 

20 in emergency circumstances, including undertaking rescue 

21 operations: Provided further, That this authority shall 

22 cease to be effective if the Secretary of State has credible 

23 evidence that the Colombian Armed Forces are not con24 ducting vigorous operations to restore government author25 ity and respect for human rights in areas under the effec26 tive control of paramilitary and guerrilla organizations: 
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1 Provided further, That the President shall ensure that if 

2 any helicopter procured with funds under this heading is 

3 used to aid or abet the operations of any illegal self-de4 fense group or illegal security cooperative, such helicopter 

5 shall be immediately returned to the United States: Pro6 vided further, That none of the funds appropriated by this 

7 Act may be made available to support a Peruvian air inter8 diction program until the Secretary of State and Director 

9 of Central Intelligence certify to the Congress, 30 days 

10 before any resumption of United States involvement in a 

11 Peruvian air interdiction program, that an air interdiction 

12 program that permits the ability of the Peruvian Air Force 

13 to shoot down aircraft will include enhanced safeguards 

14 and procedures to prevent the occurrence of any incident 

15 similar to the April 20, 2001 incident: Provided further, 

16 That the Secretary of State, in consultation with the Ad17 ministrator of the United States Agency for International 

18 Development, shall provide to the Committees on Appro19 priations not later than 45 days after the date of the en20 actment of this Act and prior to the initial obligation of 

21 funds appropriated under this heading, a report on the 

22 proposed uses of all funds under this heading on a coun23 try-by-country basis for each proposed program, project, 

24 or activity: Provided further, That section 482(b) of the 

25 Foreign Assistance Act of 1961 shall not apply to funds 
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1 appropriated under this heading: Provided further, That 

2 assistance provided with funds appropriated under this 

3 heading that is made available notwithstanding section 

4 482(b) of the Foreign Assistance Act of 1961, as amend5 ed, shall be made available subject to the regular notifica6 tion procedures of the Committees on Appropriations: Pro7 vided further, That the provisions of section 3204(b) 

8 through (d) of Public Law 106–246, as amended by Public 

9 Law 107–115, shall be applicable to funds appropriated 

10 for fiscal year 2004: Provided further, That the reports 

11 required by sections 3204(e) and (f) of Division B, title 

12 III, chapter 2 of Public Law 106–246, shall be submitted 

13 also to the Committees on Appropriations on the dates 

14 specified in those sections: Provided further, That of the 

15 funds appropriated under this heading, not more than 

16 $15,680,000 may be available for administrative expenses 

17 of the Department of State, and not more than 

18 $4,500,000 may be available, in addition to amounts oth19 erwise available for such purposes, for administrative ex20 penses of the United States Agency for International De21 velopment. 

22 MIGRATION AND REFUGEE ASSISTANCE

23 For expenses, not otherwise provided for, necessary 

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

25 by law, a contribution to the International Committee of 

26 the Red Cross, assistance to refugees, including contribu-
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1 tions to the International Organization for Migration and 

2 the United Nations High Commissioner for Refugees, and 

3 other activities to meet refugee and migration needs; sala4 ries and expenses of personnel and dependents as author5 ized by the Foreign Service Act of 1980; allowances as 

6 authorized by sections 5921 through 5925 of title 5, 

7 United States Code; purchase and hire of passenger motor 

8 vehicles; and services as authorized by section 3109 of title 

9 5, United States Code, $760,197,000, which shall remain 

10 available until expended: Provided, That not more than 

11 $18,500,000 may be available for administrative expenses: 

12 Provided further, That funds appropriated under this 

13 heading may be made available for a headquarters con14 tribution to the International Committee of the Red Cross 

15 only if the Secretary of State determines (and so reports 

16 to the appropriate committees of Congress) that the 

17 Magen David Adom Society of Israel is not being denied 

18 participation in the activities of the International Red 

19 Cross and Red Crescent Movement: Provided further, That 

20 none of the funds made available pursuant to this Act 

21 after March 31, 2004, by the Department of State under 

22 the headings ‘‘Migration and Refugee Assistance’’ and 

23 ‘‘United States Emergency Refugee and Migration Assist24 ance Fund’’ for the purposes of provision of assistance to 

25 refugees or internally displaced persons may be provided 
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1 to an organization that has failed to adopt a code of con2 duct consistent with the Inter-Agency Standing Com3 mittee Task Force on Protection From Sexual Exploi4 tation and Abuse in Humanitarian Crises six core prin5 ciples for the protection of beneficiaries of humanitarian 

6 assistance. 

7 UNITED STATES EMERGENCY REFUGEE AND MIGRATION

8 ASSISTANCE FUND

9 For necessary expenses to carry out the provisions 

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

11 Act of 1962, as amended (22 U.S.C. 2601(c)), 

12 $15,831,000, to remain available until expended. 

13 NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND

14 RELATED PROGRAMS

15 For necessary expenses for nonproliferation, anti-ter16 rorism, demining and related programs and activities, 

17 $335,200,000, to carry out the provisions of chapter 8 of 

18 part II of the Foreign Assistance Act of 1961 for anti19 terrorism assistance, chapter 9 of part II of the Foreign 

20 Assistance Act of 1961, section 504 of the FREEDOM 

21 Support Act, section 23 of the Arms Export Control Act 

22 or the Foreign Assistance Act of 1961 for demining activi23 ties, the clearance of unexploded ordnance, the destruction 

24 of small arms, and related activities, notwithstanding any 

25 other provision of law, including activities implemented 

26 through nongovernmental and international organizations, 
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1 and section 301 of the Foreign Assistance Act of 1961 

2 for a voluntary contribution to the International Atomic 

3 Energy Agency (IAEA) and for a United States contribu4 tion to the Comprehensive Nuclear Test Ban Treaty Pre5 paratory Commission: Provided further, That of this 

6 amount not to exceed $20,000,000, to remain available 

7 until expended, may be made available for the Non8 proliferation and Disarmament Fund, notwithstanding 

9 any other provision of law, to promote bilateral and multi10 lateral activities relating to nonproliferation and disar11 mament: Provided further, That such funds may also be 

12 used for such countries other than the Independent States 

13 of the former Soviet Union and international organiza14 tions when it is in the national security interest of the 

15 United States to do so following consultation with the ap16 propriate committees of Congress: Provided further, That 

17 funds appropriated under this heading may be made avail18 able for the International Atomic Energy Agency only if 

19 the Secretary of State determines (and so reports to the 

20 Congress) that Israel is not being denied its right to par21 ticipate in the activities of that Agency: Provided further,

22 That of the funds made available for demining and related 

23 activities, not to exceed $690,000, in addition to funds 

24 otherwise available for such purposes, may be used for ad-
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1 ministrative expenses related to the operation and man2 agement of the demining program. 

3 DEPARTMENT OF THE TREASURY

4 INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE

5 For necessary expenses to carry out the provisions 

6 of section 129 of the Foreign Assistance Act of 1961, 

7 $19,000,000, to remain available until September 30, 

8 2006, which shall be available notwithstanding any other 

9 provision of law. 

10 DEBT RESTRUCTURING

11 For the cost, as defined in section 502 of the Con12 gressional Budget Act of 1974, of modifying loans and 

13 loan guarantees, as the President may determine, for 

14 which funds have been appropriated or otherwise made 

15 available for programs within the International Affairs 

16 Budget Function 150, including the cost of selling, reduc17 ing, or canceling amounts owed to the United States as 

18 a result of concessional loans made to eligible countries, 

19 pursuant to parts IV and V of the Foreign Assistance Act 

20 of 1961, and of modifying concessional credit agreements 

21 with least developed countries, as authorized under section 

22 411 of the Agricultural Trade Development and Assist23 ance Act of 1954, as amended, and concessional loans, 

24 guarantees and credit agreements, as authorized under 

25 section 572 of the Foreign Operations, Export Financing, 

26 and Related Programs Appropriations Act, 1989 (Public 
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1 Law 100–461), and of canceling amounts owed, as a result 

2 of loans or guarantees made pursuant to the Export-Im3 port Bank Act of 1945, by countries that are eligible for 

4 debt reduction pursuant to title V of H.R. 3425 as enacted 

5 into law by section 1000(a)(5) of Public Law 106–113, 

6 $95,000,000, to remain available until September 30, 

7 2005: Provided, That $20,000,000 of the funds appro8 priated under this heading may be made available to carry 

9 out the provisions of part V of the Foreign Assistance Act 

10 of 1961: Provided further, That $75,000,000 of the funds 

11 appropriated under this heading may be used by the Sec12 retary of the Treasury to pay to the Heavily Indebted Poor 

13 Countries (HIPC) Trust Fund administered by the Inter14 national Bank for Reconstruction and Development 

15 amounts for the benefit of countries that are eligible for 

16 debt reduction pursuant to title V of H.R. 3425 as enacted 

17 into law by section 1000(a)(5) of Public Law 106–113: 

18 Provided further, That amounts paid to the HIPC Trust 

19 Fund may be used only to fund debt reduction under the 

20 enhanced HIPC initiative by—

21 (1) the Inter-American Development Bank; 

22 (2) the African Development Fund; 

23 (3) the African Development Bank; and 

24 (4) the Central American Bank for Economic 

25 Integration: 
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1 Provided further, That funds may not be paid to the HIPC 

2 Trust Fund for the benefit of any country if the Secretary 

3 of State has credible evidence that the government of such 

4 country is engaged in a consistent pattern of gross viola5 tions of internationally recognized human rights or in mili6 tary or civil conflict that undermines its ability to develop 

7 and implement measures to alleviate poverty and to devote 

8 adequate human and financial resources to that end: Pro9 vided further, That on the basis of final appropriations, 

10 the Secretary of the Treasury shall consult with the Com11 mittees on Appropriations concerning which countries and 

12 international financial institutions are expected to benefit 

13 from a United States contribution to the HIPC Trust 

14 Fund during the fiscal year: Provided further, That the 

15 Secretary of the Treasury shall inform the Committees on 

16 Appropriations not less than 15 days in advance of the 

17 signature of an agreement by the United States to make 

18 payments to the HIPC Trust Fund of amounts for such 

19 countries and institutions: Provided further, That the Sec20 retary of the Treasury may disburse funds designated for 

21 debt reduction through the HIPC Trust Fund only for the 

22 benefit of countries that—

23 (1) have committed, for a period of 24 months, not 

24 to accept new market rate loans from the international 

25 financial institution receiving debt repayment as a result 
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1 of such disbursement, other than loans made by such insti2 tution to export-oriented commercial projects that gen3 erate foreign exchange which are generally referred to as 

4 ‘‘enclave’’ loans; and 

5 (2) have documented and demonstrated their commit6 ment to redirect their budgetary resources from inter7 national debt repayments to programs to alleviate poverty 

8 and promote economic growth that are additional to or 

9 expand upon those previously available for such purposes: 

10 Provided further, That any limitation of subsection (e) of 

11 section 411 of the Agricultural Trade Development and 

12 Assistance Act of 1954 shall not apply to funds appro13 priated under this heading: Provided further, That none 

14 of the funds made available under this heading in this or 

15 any other appropriations Acts shall be made available for 

16 Sudan or Burma unless the Secretary of Treasury deter17 mines and notifies the Committees on Appropriations that 

18 a democratically elected government has taken office. 

19 TITLE III—MILITARY ASSISTANCE 

20 FUNDS APPROPRIATED TO THE PRESIDENT

21 INTERNATIONAL MILITARY EDUCATION AND TRAINING

22 For necessary expenses to carry out the provisions 

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

24 $91,700,000, of which up to $3,000,000 may remain 

25 available until expended: Provided, That the civilian per-
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1 sonnel for whom military education and training may be 

2 provided under this heading may include civilians who are 

3 not members of a government whose participation would 

4 contribute to improved civil-military relations, civilian con5 trol of the military, or respect for human rights: Provided 

6 further, That funds appropriated under this heading for 

7 military education and training for Guatemala may only 

8 be available for expanded international military education 

9 and training and funds made available for Nigeria and 

10 Guatemala may only be provided through the regular noti11 fication procedures of the Committees on Appropriations. 

12 FOREIGN MILITARY FINANCING PROGRAM

13 For expenses necessary for grants to enable the 

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

15 Arms Export Control Act, $4,314,000,000: Provided, That 

16 of the funds appropriated under this heading, not less 

17 than $2,160,000,000 shall be available for grants only for 

18 Israel, and not less than $1,300,000,000 shall be made 

19 available for grants only for Egypt: Provided further, That 

20 the funds appropriated by this paragraph for Israel shall 

21 be disbursed within 30 days of the enactment of this Act: 

22 Provided further, That to the extent that the Government 

23 of Israel requests that funds be used for such purposes, 

24 grants made available for Israel by this paragraph shall, 

25 as agreed by Israel and the United States, be available 

26 for advanced weapons systems, of which not less than 
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1 $568,000,000 shall be available for the procurement in 

2 Israel of defense articles and defense services, including 

3 research and development: Provided further, That funds 

4 appropriated by this paragraph shall be nonrepayable not5 withstanding any requirement in section 23 of the Arms 

6 Export Control Act: Provided further, That funds made 

7 available under this paragraph shall be obligated upon ap8 portionment in accordance with paragraph (5)(C) of title 

9 31, United States Code, section 1501(a). 

10 None of the funds made available under this heading 

11 shall be available to finance the procurement of defense 

12 articles, defense services, or design and construction serv13 ices that are not sold by the United States Government 

14 under the Arms Export Control Act unless the foreign 

15 country proposing to make such procurements has first 

16 signed an agreement with the United States Government 

17 specifying the conditions under which such procurements 

18 may be financed with such funds: Provided, That all coun19 try and funding level increases in allocations shall be sub20 mitted through the regular notification procedures of sec21 tion 515 of this Act: Provided further, That none of the 

22 funds appropriated under this heading shall be available 

23 for assistance for Indonesia, Guatemala, Sudan, and Libe24 ria: Provided further, That funds made available under 

25 this heading may be used, notwithstanding any other pro-
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1 vision of law, for demining, the clearance of unexploded 

2 ordnance, and related activities, and may include activities 

3 implemented through nongovernmental and international 

4 organizations: Provided further, That only those countries 

5 for which assistance was justified for the ‘‘Foreign Mili6 tary Sales Financing Program’’ in the fiscal year 1989 

7 congressional presentation for security assistance pro8 grams may utilize funds made available under this heading 

9 for procurement of defense articles, defense services or de10 sign and construction services that are not sold by the 

11 United States Government under the Arms Export Con12 trol Act: Provided further, That funds appropriated under 

13 this heading shall be expended at the minimum rate nec14 essary to make timely payment for defense articles and 

15 services: Provided further, That not more than 

16 $40,500,000 of the funds appropriated under this heading 

17 may be obligated for necessary expenses, including the 

18 purchase of passenger motor vehicles for replacement only 

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

20 of administering military assistance and sales: Provided 

21 further, That not more than $361,000,000 of funds real22 ized pursuant to section 21(e)(1)(A) of the Arms Export 

23 Control Act may be obligated for expenses incurred by the 

24 Department of Defense during fiscal year 2004 pursuant 

25 to section 43(b) of the Arms Export Control Act, except 
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1 that this limitation may be exceeded only through the reg2 ular notification procedures of the Committees on Appro3 priations: Provided further, That foreign military financing 

4 program funds estimated to be outlayed for Egypt during 

5 fiscal year 2004 shall be transferred to an interest bearing 

6 account for Egypt in the Federal Reserve Bank of New 

7 York within 30 days of enactment of this Act. 

8 PEACEKEEPING OPERATIONS

9 For necessary expenses to carry out the provisions 

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

11 $85,000,000: Provided, That none of the funds appro12 priated under this heading shall be obligated or expended 

13 except as provided through the regular notification proce14 dures of the Committees on Appropriations. 

15 TITLE IV—MULTILATERAL ECONOMIC 

16 ASSISTANCE 

17 FUNDS APPROPRIATED TO THE PRESIDENT

18 INTERNATIONAL FINANCIAL INSTITUTIONS

19 GLOBAL ENVIRONMENT FACILITY

20 For the United States contribution for the Global En21 vironment Facility, $107,500,000, to the International 

22 Bank for Reconstruction and Development as trustee for 

23 the Global Environment Facility, by the Secretary of the 

24 Treasury, to remain available until expended. 
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1 CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT

2 ASSOCIATION

3 For payment to the International Development Asso4 ciation by the Secretary of the Treasury, $850,000,000, 

5 to remain available until expended. 

6 CONTRIBUTION TO THE MULTILATERAL INVESTMENT

7 GUARANTEE AGENCY

8 For payment to the Multilateral Investment Guar9 antee Agency by the Secretary of the Treasury, 

10 $4,001,672, for the United States paid-in share of the in11 crease in capital stock, to remain available until expended. 

12 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

13 The United States Governor of the Multilateral In14 vestment Guarantee Agency may subscribe without fiscal 

15 year limitation for the callable capital portion of the 

16 United States share of such capital stock in an amount 

17 not to exceed $16,339,982. 

18 CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS

19 MULTILATERAL INVESTMENT FUND

20 For payment to the Enterprise for the Americas Mul21 tilateral Investment Fund by the Secretary of the Treas22 ury, for the United States contribution to the fund, 

23 $25,000,000, to remain available until expended. 

24 CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND

25 For the United States contribution by the Secretary 

26 of the Treasury to the increase in resources of the Asian 
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1 Development Fund, as authorized by the Asian Develop2 ment Bank Act, as amended, $151,921,405, to remain 

3 available until expended. 

4 CONTRIBUTION TO THE AFRICAN DEVELOPMENT BANK

5 For payment to the African Development Bank by 

6 the Secretary of the Treasury, $5,104,930, for the United 

7 States paid-in share of the increase in capital stock, to 

8 remain available until expended. 

9 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

10 The United States Governor of the African Develop11 ment Bank may subscribe without fiscal year limitation 

12 for the callable capital portion of the United States share 

13 of such capital stock in an amount not to exceed 

14 $79,609,817. 

15 CONTRIBUTION TO THE AFRICAN DEVELOPMENT FUND

16 For the United States contribution by the Secretary 

17 of the Treasury to the increase in resources of the African 

18 Development Fund, $107,370,856, to remain available 

19 until expended. 

20 CONTRIBUTION TO THE EUROPEAN BANK FOR

21 RECONSTRUCTION AND DEVELOPMENT

22 For payment to the European Bank for Reconstruc23 tion and Development by the Secretary of the Treasury, 

24 $35,431,111 for the United States share of the paid-in 

25 portion of the increase in capital stock, to remain available 

26 until expended. 
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1 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

2 The United States Governor of the European Bank 

3 for Reconstruction and Development may subscribe with4 out fiscal year limitation to the callable capital portion of 

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

6 not to exceed $122,085,497. 

7 CONTRIBUTION TO THE INTERNATIONAL FUND FOR

8 AGRICULTURAL DEVELOPMENT

9 For the United States contribution by the Secretary 

10 of the Treasury to increase the resources of the Inter11 national Fund for Agricultural Development, 

12 $15,004,042, to remain available until expended. 

13 INTERNATIONAL ORGANIZATIONS AND PROGRAMS

14 For necessary expenses to carry out the provisions 

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

16 of section 2 of the United Nations Environment Program 

17 Participation Act of 1973, $194,550,000: Provided, That 

18 none of the funds appropriated under this heading may 

19 be made available to the Korean Peninsula Energy Devel20 opment Organization (KEDO) or the International Atomic 

21 Energy Agency (IAEA). 
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1 TITLE V—GENERAL PROVISIONS 

2 COMPENSATION FOR UNITED STATES EXECUTIVE

3 DIRECTORS TO INTERNATIONAL FINANCIAL INSTITUTIONS

4 SEC. 501. (a) No funds appropriated by this Act may 

5 be made as payment to any international financial institu6 tion while the United States Executive Director to such 

7 institution is compensated by the institution at a rate 

8 which, together with whatever compensation such Director 

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

10 provided for an individual occupying a position at level IV 

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

12 United States Code, or while any alternate United States 

13 Director to such institution is compensated by the institu14 tion at a rate in excess of the rate provided for an indi15 vidual occupying a position at level V of the Executive 

16 Schedule under section 5316 of title 5, United States 

17 Code. 

18 (b) For purposes of this section, ‘‘international finan19 cial institutions’’ are: the International Bank for Recon20 struction and Development, the Inter-American Develop21 ment Bank, the Asian Development Bank, the Asian De22 velopment Fund, the African Development Bank, the Afri23 can Development Fund, the International Monetary Fund, 

24 the North American Development Bank, and the Euro25 pean Bank for Reconstruction and Development. 
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1 PRIVATE AND VOLUNTARY ORGANIZATIONS

2 SEC. 502. None of the funds appropriated or other3 wise made available by this Act for development assistance 

4 may be made available to any United States private and 

5 voluntary organization, except any cooperative develop6 ment organization, which obtains less than 20 percent of 

7 its total annual funding for international activities from 

8 sources other than the United States Government: Pro9 vided, That the Administrator of the United States Agen10 cy for International Development, after informing the 

11 Committees on Appropriations, may, on a case-by-case 

12 basis, waive the restriction contained in this subsection, 

13 after taking into account the effectiveness of the overseas 

14 development activities of the organization, its level of vol15 unteer support, its financial viability and stability, and the 

16 degree of its dependence for its financial support on the 

17 agency. 

18 LIMITATION ON RESIDENCE EXPENSES

19 SEC. 503. Of the funds appropriated or made avail20 able pursuant to this Act, not to exceed $100,500 shall 

21 be for official residence expenses of the United States 

22 Agency for International Development during the current 

23 fiscal year: Provided, That appropriate steps shall be 

24 taken to assure that, to the maximum extent possible, 

25 United States-owned foreign currencies are utilized in lieu 

26 of dollars. 
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1 LIMITATION ON EXPENSES

2 SEC. 504. Of the funds appropriated or made avail3 able pursuant to this Act, not to exceed $5,000 shall be 

4 for entertainment expenses of the United States Agency 

5 for International Development during the current fiscal 

6 year. 

7 LIMITATION ON REPRESENTATIONAL ALLOWANCES

8 SEC. 505. Of the funds appropriated or made avail9 able pursuant to this Act, not to exceed $125,000 shall 

10 be available for representation allowances for the United 

11 States Agency for International Development during the 

12 current fiscal year: Provided, That appropriate steps shall 

13 be taken to assure that, to the maximum extent possible, 

14 United States-owned foreign currencies are utilized in lieu 

15 of dollars: Provided further, That of the funds made avail16 able by this Act for general costs of administering military 

17 assistance and sales under the heading ‘‘Foreign Military 

18 Financing Program’’, not to exceed $2,000 shall be avail19 able for entertainment expenses and not to exceed 

20 $125,000 shall be available for representation allowances: 

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

22 Act under the heading ‘‘International Military Education 

23 and Training’’, not to exceed $50,000 shall be available 

24 for entertainment allowances: Provided further, That of 

25 the funds made available by this Act for the Inter-Amer26 ican Foundation, not to exceed $2,000 shall be available 
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1 for entertainment and representation allowances: Provided 

2 further, That of the funds made available by this Act for 

3 the Peace Corps, not to exceed a total of $4,000 shall be 

4 available for entertainment expenses: Provided further,

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

6 heading ‘‘Trade and Development Agency’’, not to exceed 

7 $2,000 shall be available for representation and entertain8 ment allowances. 

9 PROHIBITION ON TAXATION OF UNITED STATES

10 ASSISTANCE

11 SEC. 506. (a) PROHIBITION ON TAXATION.—None of 

12 the funds appropriated by this Act may be made available 

13 to provide assistance for a foreign country under a new 

14 bilateral agreement governing the terms and conditions 

15 under which such assistance is to be provided unless such 

16 agreement includes a provision stating that assistance pro17 vided by the United States shall be exempt from taxation, 

18 or reimbursed, by the foreign government, and the Sec19 retary of State shall expeditiously seek to negotiate 

20 amendments to existing bilateral agreements, as nec21 essary, to conform with this requirement. 

22 (b) REIMBURSEMENT OF FOREIGN TAXES.—An 

23 amount equivalent to 200 percent of the total taxes as24 sessed during fiscal year 2004 by a foreign government 

25 or entity against commodities financed under United 

26 States assistance programs for which funds are appro-
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1 priated by this Act, either directly or through grantees, 

2 contractors and subcontractors shall be withheld from ob3 ligation from funds appropriated for assistance for fiscal 

4 year 2005 and allocated for the central government of 

5 such country and for the West Bank and Gaza Program 

6 to the extent that the Secretary of State certifies and re7 ports in writing to the Committees on Appropriations that 

8 such taxes have not been reimbursed to the Government 

9 of the United States. 

10 (c) DE MINIMIS EXCEPTION.—Foreign taxes of a de 

11 minimis nature shall not be subject to the provisions of 

12 subsection (b). 

13 (d) REFUND TO THE TREASURY AND REPROGRAM14 MING OF FUNDS.—Of the funds withheld from obligation 

15 for each country or entity pursuant to subsection (b), one16 half may become available for reprogramming for other 

17 purposes (pursuant to section 515 of this Act and con18 sistent with the purposes for which such funds were origi19 nally appropriated) and one-half shall be deposited in the 

20 General Fund of the Treasury on, or within 5 days after, 

21 September 1, 2005, pursuant to the certification required 

22 under subsection (b). 

23 (e) IMPLEMENTATION.—The Secretary of State shall 

24 issue rules, regulations, or policy guidance, as appropriate, 
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1 to implement the prohibition against the taxation of assist2 ance contained in this section. 

3 (f) DEFINITIONS.—As used in this section—

4 (1) the terms ‘‘taxes’’ and ‘‘taxation’’ refer to 

5 value added taxes and customs duties imposed on 

6 commodities financed with United States assistance 

7 for programs for which funds are appropriated by 

8 this Act; and 

9 (2) the term ‘‘bilateral agreement’’ refers to a 

10 framework bilateral agreement between the Govern11 ment of the United States and the government of 

12 the country receiving assistance that describes the 

13 privileges and immunities applicable to United 

14 States foreign assistance for such country generally, 

15 or an individual agreement between the Government 

16 of the United States and such government that de17 scribes, among other things, the treatment for tax 

18 purposes that will be accorded the United States as19 sistance provided under that agreement. 

20 PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN

21 COUNTRIES

22 SEC. 507. None of the funds appropriated or other23 wise made available pursuant to this Act shall be obligated 

24 or expended to finance directly any assistance or repara25 tions to Cuba, Libya, North Korea, Iran, or Syria: Pro26 vided, That for purposes of this section, the prohibition 
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1 on obligations or expenditures shall include direct loans, 

2 credits, insurance and guarantees of the Export-Import 

3 Bank or its agents. 

4 MILITARY COUPS

5 SEC. 508. None of the funds appropriated or other6 wise made available pursuant to this Act shall be obligated 

7 or expended to finance directly any assistance to the gov8 ernment of any country whose duly elected head of govern9 ment is deposed by decree or military coup: Provided, That 

10 assistance may be resumed to such government if the 

11 President determines and certifies to the Committees on 

12 Appropriations that subsequent to the termination of as13 sistance a democratically elected government has taken of14 fice: Provided further, That the provisions of this section 

15 shall not apply to assistance to promote democratic elec16 tions or public participation in democratic processes: Pro17 vided further, That funds made available pursuant to the 

18 previous provisos shall be subject to the regular notifica19 tion procedures of the Committees on Appropriations. 

20 TRANSFERS

21 SEC. 509. (a)(1) LIMITATION ON TRANSFERS BE22 TWEEN AGENCIES.—None of the funds made available by 

23 this Act may be transferred to any department, agency, 

24 or instrumentality of the United States Government, ex25 cept pursuant to a transfer made by, or transfer authority 

26 provided in, this Act or any other appropriation Act. 
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1 (2) Notwithstanding paragraph (1), in addition to 

2 transfers made by, or authorized elsewhere in, this Act, 

3 funds appropriated by this Act to carry out the purposes 

4 of the Foreign Assistance Act of 1961 may be allocated 

5 or transferred to agencies of the United States Govern6 ment pursuant to the provisions of sections 109, 610, and 

7 632 of the Foreign Assistance Act of 1961. 

8 (b) None of the funds made available by this Act may 

9 be obligated under an appropriation account to which they 

10 were not appropriated, except for transfers specifically 

11 provided for in this Act, unless the President, not less than 

12 five days prior to the exercise of any authority contained 

13 in the Foreign Assistance Act of 1961 to transfer funds, 

14 consults with and provides a written policy justification 

15 to the Committees on Appropriations of the House of Rep16 resentatives and the Senate. 

17 (c) Any agreement for the transfer or allocation of 

18 funds appropriated by this Act, or prior Acts, entered into 

19 between the United States Agency for International Devel20 opment and another agency of the United States Govern21 ment under the authority of section 632(a) of the Foreign 

22 Assistance Act of 1961 or any comparable provision of 

23 law, shall expressly provide that the Office of the Inspector 

24 General for the agency receiving the transfer or allocation 

25 of such funds shall perform periodic program and financial 
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1 audits of the use of such funds: Provided, That funds 

2 transferred under such authority may be made available 

3 for the cost of such audits. 

4 COMMERCIAL LEASING OF DEFENSE ARTICLES

5 SEC. 510. Notwithstanding any other provision of 

6 law, and subject to the regular notification procedures of 

7 the Committees on Appropriations, the authority of sec8 tion 23(a) of the Arms Export Control Act may be used 

9 to provide financing to Israel, Egypt and NATO and 

10 major non-NATO allies for the procurement by leasing 

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

12 articles from United States commercial suppliers, not in13 cluding Major Defense Equipment (other than helicopters 

14 and other types of aircraft having possible civilian applica15 tion), if the President determines that there are compel16 ling foreign policy or national security reasons for those 

17 defense articles being provided by commercial lease rather 

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

19 AVAILABILITY OF FUNDS

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

21 this Act shall remain available for obligation after the ex22 piration of the current fiscal year unless expressly so pro23 vided in this Act: Provided, That funds appropriated for 

24 the purposes of chapters 1, 8, 11, and 12 of part I, section 

25 667, chapter 4 of part II of the Foreign Assistance Act 

26 of 1961, as amended, section 23 of the Arms Export Con-
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1 trol Act, and funds provided under the heading ‘‘Assist2 ance for Eastern Europe and the Baltic States’’, shall re3 main available for an additional four years from the date 

4 on which the availability of such funds would otherwise 

5 have expired, if such funds are initially obligated before 

6 the expiration of their respective periods of availability 

7 contained in this Act: Provided further, That, notwith8 standing any other provision of this Act, any funds made 

9 available for the purposes of chapter 1 of part I and chap10 ter 4 of part II of the Foreign Assistance Act of 1961 

11 which are allocated or obligated for cash disbursements 

12 in order to address balance of payments or economic policy 

13 reform objectives, shall remain available until expended. 

14 LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT

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

16 this Act shall be used to furnish assistance to the govern17 ment of any country which is in default during a period 

18 in excess of one calendar year in payment to the United 

19 States of principal or interest on any loan made to the 

20 government of such country by the United States pursuant 

21 to a program for which funds are appropriated under this 

22 Act unless the President determines, following consulta23 tions with the Committees on Appropriations, that assist24 ance to such country is in the national interest of the 

25 United States. 
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1 COMMERCE AND TRADE

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

3 made available pursuant to this Act for direct assistance 

4 and none of the funds otherwise made available pursuant 

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

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

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

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

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

13 assistance will cause substantial injury to United States 

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

15 Provided, That such prohibition shall not apply to the Ex16 port-Import Bank if in the judgment of its Board of Direc17 tors the benefits to industry and employment in the 

18 United States are likely to outweigh the injury to United 

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

21 Committees on Appropriations. 

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

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

24 Assistance Act of 1961 shall be available for any testing 

25 or breeding feasibility study, variety improvement or intro-
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1 duction, consultancy, publication, conference, or training 

2 in connection with the growth or production in a foreign 

3 country of an agricultural commodity for export which 

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

6 shall not prohibit—

7 (1) activities designed to increase food security 

8 in developing countries where such activities will not 

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

11 (2) research activities intended primarily to 

12 benefit American producers. 

13 SURPLUS COMMODITIES

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

17 International Development Association, the International 

18 Finance Corporation, the Inter-American Development 

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

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

25 oppose any assistance by these institutions, using funds 

26 appropriated or made available pursuant to this Act, for 
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1 the production or extraction of any commodity or mineral 

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

3 assistance will cause substantial injury to United States 

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

5 NOTIFICATION REQUIREMENTS

6 SEC. 515. For the purposes of providing the executive 

7 branch with the necessary administrative flexibility, none 

8 of the funds made available under this Act for ‘‘Child Sur9 vival and Health Programs Fund’’, ‘‘Development Assist10 ance’’, ‘‘International Organizations and Programs’’, 

11 ‘‘Trade and Development Agency’’, ‘‘International Nar12 cotics Control and Law Enforcement’’, ‘‘Andean 

13 Counterdrug Initiative’’, ‘‘Assistance for Eastern Europe 

14 and the Baltic States’’, ‘‘Assistance for the Independent 

15 States of the Former Soviet Union’’, ‘‘Economic Support 

16 Fund’’, ‘‘Peacekeeping Operations’’, ‘‘Capital Investment 

17 Fund’’, ‘‘Operating Expenses of the United States Agency 

18 for International Development’’, ‘‘Operating Expenses of 

19 the United States Agency for International Development 

20 Office of Inspector General’’, ‘‘Nonproliferation, Anti-ter21 rorism, Demining and Related Programs’’, ‘‘Millennium 

22 Challenge Account’’ (by country only), ‘‘Foreign Military 

23 Financing Program’’, ‘‘International Military Education 

24 and Training’’, ‘‘Peace Corps’’, and ‘‘Migration and Ref25 ugee Assistance’’, shall be available for obligation for ac26 tivities, programs, projects, type of materiel assistance, 
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1 countries, or other operations not justified or in excess of 

2 the amount justified to the Committees on Appropriations 

3 for obligation under any of these specific headings unless 

4 the Committees on Appropriations of both Houses of Con5 gress are previously notified 15 days in advance: Provided, 

6 That the President shall not enter into any commitment 

7 of funds appropriated for the purposes of section 23 of 

8 the Arms Export Control Act for the provision of major 

9 defense equipment, other than conventional ammunition, 

10 or other major defense items defined to be aircraft, ships, 

11 missiles, or combat vehicles, not previously justified to 

12 Congress or 20 percent in excess of the quantities justified 

13 to Congress unless the Committees on Appropriations are 

14 notified 15 days in advance of such commitment: Provided 

15 further, That this section shall not apply to any re16 programming for an activity, program, or project for 

17 which funds are appropriated under Title II of this Act 

18 of less than 10 percent of the amount previously justified 

19 to the Congress for obligation for such activity, program, 

20 or project for the current fiscal year: Provided further, 

21 That the requirements of this section or any similar provi22 sion of this Act or any other Act, including any prior Act 

23 requiring notification in accordance with the regular noti24 fication procedures of the Committees on Appropriations, 

25 may be waived if failure to do so would pose a substantial 
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1 risk to human health or welfare: Provided further, That 

2 in case of any such waiver, notification to the Congress, 

3 or the appropriate congressional committees, shall be pro4 vided as early as practicable, but in no event later than 

5 3 days after taking the action to which such notification 

6 requirement was applicable, in the context of the cir7 cumstances necessitating such waiver: Provided further, 

8 That any notification provided pursuant to such a waiver 

9 shall contain an explanation of the emergency cir10 cumstances. 

11 LIMITATION ON AVAILABILITY OF FUNDS FOR

12 INTERNATIONAL ORGANIZATIONS AND PROGRAMS

13 SEC. 516. Subject to the regular notification proce14 dures of the Committees on Appropriations, funds appro15 priated under this Act or any previously enacted Act mak16 ing appropriations for foreign operations, export financ17 ing, and related programs, which are returned or not made 

18 available for organizations and programs because of the 

19 implementation of section 307(a) of the Foreign Assist20 ance Act of 1961, shall remain available for obligation 

21 until September 30, 2005. 

22 INDEPENDENT STATES OF THE FORMER SOVIET UNION

23 SEC. 517. (a) None of the funds appropriated under 

24 the heading ‘‘Assistance for the Independent States of the 

25 Former Soviet Union’’ shall be made available for assist-
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1 ance for a government of an Independent State of the 

2 former Soviet Union—

3 (1) unless that government is making progress 

4 in implementing comprehensive economic reforms 

5 based on market principles, private ownership, re6 spect for commercial contracts, and equitable treat7 ment of foreign private investment; and 

8 (2) if that government applies or transfers 

9 United States assistance to any entity for the pur10 pose of expropriating or seizing ownership or control 

11 of assets, investments, or ventures. 

12 Assistance may be furnished without regard to this sub13 section if the President determines that to do so is in the 

14 national interest. 

15 (b) None of the funds appropriated under the heading 

16 ‘‘Assistance for the Independent States of the Former So17 viet Union’’ shall be made available for assistance for a 

18 government of an Independent State of the former Soviet 

19 Union if that government directs any action in violation 

20 of the territorial integrity or national sovereignty of any 

21 other Independent State of the former Soviet Union, such 

22 as those violations included in the Helsinki Final Act: Pro23 vided, That such funds may be made available without re24 gard to the restriction in this subsection if the President 
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1 determines that to do so is in the national security interest 

2 of the United States. 

3 (c) None of the funds appropriated under the heading 

4 ‘‘Assistance for the Independent States of the Former So5 viet Union’’ shall be made available for any state to en6 hance its military capability: Provided, That this restric7 tion does not apply to demilitarization, demining or non8 proliferation programs. 

9 (d) Funds appropriated under the heading ‘‘Assist10 ance for the Independent States of the Former Soviet 

11 Union’’ for the Russian Federation, Armenia, Georgia, 

12 and Ukraine shall be subject to the regular notification 

13 procedures of the Committees on Appropriations. 

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

15 for the Independent States of the former Soviet Union 

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

17 to environment and natural resources) of the Foreign As18 sistance Act of 1961. 

19 (f) Funds made available for Enterprise Funds shall 

20 be expended at the minimum rate necessary to make time21 ly payment for projects and activities. 

22 (g) In issuing new task orders, entering into con23 tracts, or making grants, with funds appropriated in this 

24 Act or prior appropriations Acts under the heading ‘‘As25 sistance for the Independent States of the Former Soviet 
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1 Union’’ and under comparable headings in prior appro2 priations Acts, for projects or activities that have as one 

3 of their primary purposes the fostering of private sector 

4 development, the Coordinator for United States Assistance 

5 to the New Independent States and the implementing 

6 agency shall encourage the participation of and give sig7 nificant weight to contractors and grantees who propose 

8 investing a significant amount of their own resources (in9 cluding volunteer services and in-kind contributions) in 

10 such projects and activities. 

11 PROHIBITION ON FUNDING FOR ABORTIONS AND

12 INVOLUNTARY STERILIZATION

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

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

15 amended, may be used to pay for the performance of abor16 tions as a method of family planning or to motivate or 

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

18 made available to carry out part I of the Foreign Assist19 ance Act of 1961, as amended, may be used to pay for 

20 the performance of involuntary sterilization as a method 

21 of family planning or to coerce or provide any financial 

22 incentive to any person to undergo sterilizations. None of 

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

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

25 for any biomedical research which relates in whole or in 

26 part, to methods of, or the performance of, abortions or 
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1 involuntary sterilization as a means of family planning. 

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

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

4 obligated or expended for any country or organization if 

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

6 such country or organization would violate any of the 

7 above provisions related to abortions and involuntary steri8 lizations. 

9 EXPORT FINANCING TRANSFER AUTHORITIES

10 SEC. 519. Not to exceed 5 percent of any appropria11 tion other than for administrative expenses made available 

12 for fiscal year 2004, for programs under title I of this 

13 Act may be transferred between such appropriations for 

14 use for any of the purposes, programs, and activities for 

15 which the funds in such receiving account may be used, 

16 but no such appropriation, except as otherwise specifically 

17 provided, shall be increased by more than 25 percent by 

18 any such transfer: Provided, That the exercise of such au19 thority shall be subject to the regular notification proce20 dures of the Committees on Appropriations. 

21 SPECIAL NOTIFICATION REQUIREMENTS

22 SEC. 520. None of the funds appropriated by this Act 

23 shall be obligated or expended for Liberia, Sudan, 

24 Zimbabwe, the Democratic Republic of the Congo, or 

25 Cambodia except as provided through the regular notifica26 tion procedures of the Committees on Appropriations. 
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1 DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

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

3 project, and activity’’ shall be defined at the appropria4 tions Act account level and shall include all appropriations 

5 and authorizations Acts earmarks, ceilings, and limita6 tions with the exception that for the following accounts: 

7 Economic Support Fund and Foreign Military Financing 

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

9 considered to include country, regional, and central pro10 gram level funding within each such account; for the devel11 opment assistance accounts of the United States Agency 

12 for International Development ‘‘program, project, and ac13 tivity’’ shall also be considered to include central, country, 

14 regional, and program level funding, either as: (1) justified 

15 to the Congress; or (2) allocated by the executive branch 

16 in accordance with a report, to be provided to the Commit17 tees on Appropriations within 30 days of the enactment 

18 of this Act, as required by section 653(a) of the Foreign 

19 Assistance Act of 1961. 

20 CHILD SURVIVAL AND HEALTH ACTIVITIES

21 SEC. 522. Up to $13,500,000 of the funds made 

22 available by this Act for assistance under the heading 

23 ‘‘Child Survival and Health Programs Fund’’, may be 

24 used to reimburse United States Government agencies, 

25 agencies of State governments, institutions of higher 

26 learning, and private and voluntary organizations for the 
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1 full cost of individuals (including for the personal services 

2 of such individuals) detailed or assigned to, or contracted 

3 by, as the case may be, the United States Agency for 

4 International Development for the purpose of carrying out 

5 activities under that heading: Provided, That up to 

6 $3,500,000 of the funds made available by this Act for 

7 assistance under the heading ‘‘Development Assistance’’ 

8 may be used to reimburse such agencies, institutions, and 

9 organizations for such costs of such individuals carrying 

10 out other development assistance activities: Provided fur11 ther, That funds appropriated by this Act that are made 

12 available for child survival activities or disease programs 

13 including activities relating to research on, and the preven14 tion, treatment and control of, HIV/AIDS may be made 

15 available notwithstanding any other provision of law ex16 cept for the provisions under the heading ‘‘Child Survival 

17 and Health Programs Fund’’, section 515 of this Act, and 

18 sections 104(c), 104A, 104B, and 104C of the Foreign 

19 Assistance Act of 1961: Provided further, That funds ap20 propriated under titles II and III of this Act may be made 

21 available pursuant to section 301 of the Foreign Assist22 ance Act of 1961 if a primary purpose of the assistance 

23 is for child survival and related programs. 

24 AFGHANISTAN

25 SEC. 523. Of the funds appropriated by titles II and 

26 III of this Act, not less than $600,000,000 shall be made 
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1 available for humanitarian, reconstruction, and related as2 sistance for Afghanistan: Provided, That of the funds 

3 made available pursuant to this section, not less than 

4 $150,000,000 should be from funds appropriated under 

5 the heading ‘‘Economic Support Fund’’. 

6 NOTIFICATION ON EXCESS DEFENSE EQUIPMENT

7 SEC. 524. Prior to providing excess Department of 

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

9 Foreign Assistance Act of 1961, the Department of De10 fense shall notify the Committees on Appropriations to the 

11 same extent and under the same conditions as are other 

12 committees pursuant to subsection (f) of that section: Pro13 vided, That before issuing a letter of offer to sell excess 

14 defense articles under the Arms Export Control Act, the 

15 Department of Defense shall notify the Committees on 

16 Appropriations in accordance with the regular notification 

17 procedures of such Committees if such defense articles are 

18 significant military equipment (as defined in section 47(9) 

19 of the Arms Export Control Act) or are valued (in terms 

20 of original acquisition cost) at $7,000,000 or more, or if 

21 notification is required elsewhere in this Act for the use 

22 of appropriated funds for specific countries that would re23 ceive such excess defense articles: Provided further, That 

24 such Committees shall also be informed of the original ac25 quisition cost of such defense articles. 
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1 USAID OVERSEAS PROGRAM

2 SEC. 525. Funds appropriated by this and subse3 quent appropriations Acts to carry out the provisions of 

4 Part I of the Foreign Assistance Act of 1961, including 

5 funds appropriated under the heading ‘‘Assistance for 

6 Eastern Europe and the Baltic States’’, may be made 

7 available to employ individuals overseas on a limited ap8 pointment basis pursuant to the authority of sections 308 

9 and 309 of the Foreign Service Act of 1980: Provided,

10 That in fiscal year 2004 the authority of this section may 

11 be used to employ not more than 85 individuals. 

12 TIBET

13 SEC. 526. Notwithstanding any other provision of law 

14 not to exceed $3,000,000 of the funds appropriated by this 

15 Act to carry out the provisions of chapter 4 of part II 

16 of the Foreign Assistance Act of 1961 may be made avail17 able to United States nongovernmental organizations lo18 cated outside the People’s Republic of China to support 

19 activities which preserve cultural traditions and promote 

20 sustainable development and environmental conservation 

21 in Tibetan communities in Tibet: Provided, That funds 

22 made available for programs, projects, and activities for 

23 the Peoples’s Republic of China shall be subject to the 

24 regular notification procedures of the Committees on Ap25 propriations. 
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1 PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST

2 COUNTRIES

3 SEC. 527. (a) Funds appropriated for bilateral assist4 ance under any heading of this Act and funds appro5 priated under any such heading in a provision of law en6 acted prior to the enactment of this Act, shall not be made 

7 available to any country which the President determines—

8 (1) grants sanctuary from prosecution to any 

9 individual or group which has committed an act of 

10 international terrorism; or 

11 (2) otherwise supports international terrorism. 

12 (b) The President may waive the application of sub13 section (a) to a country if the President determines that 

14 national security or humanitarian reasons justify such 

15 waiver. The President shall publish each waiver in the 

16 Federal Register and, at least 15 days before the waiver 

17 takes effect, shall notify the Committees on Appropria18 tions of the waiver (including the justification for the waiv19 er) in accordance with the regular notification procedures 

20 of the Committees on Appropriations. 

21 DEBT-FOR-DEVELOPMENT

22 SEC. 528. In order to enhance the continued partici23 pation of nongovernmental organizations in debt-for-devel24 opment and debt-for-nature exchanges, a nongovern25 mental organization which is a grantee or contractor of 

26 the United States Agency for International Development 
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1 may place in interest bearing accounts local currencies 

2 which accrue to that organization as a result of economic 

3 assistance provided under title II of this Act and any in4 terest earned on such investment shall be used for the pur5 pose for which the assistance was provided to that organi6 zation. 

7 SEPARATE ACCOUNTS

8 SEC. 529. (a) SEPARATE ACCOUNTS FOR LOCAL

9 CURRENCIES.—(1) If assistance is furnished to the gov10 ernment of a foreign country under chapters 1 and 10 of 

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

12 Act of 1961 under agreements which result in the genera13 tion of local currencies of that country, the Administrator 

14 of the United States Agency for International Develop15 ment shall—

16 (A) require that local currencies be deposited in 

17 a separate account established by that government; 

18 (B) enter into an agreement with that govern19 ment which sets forth—

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

21 generated; and 

22 (ii) the terms and conditions under which 

23 the currencies so deposited may be utilized, con24 sistent with this section; and 

25 (C) establish by agreement with that govern26 ment the responsibilities of the United States Agen-
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1 cy for International Development and that govern2 ment to monitor and account for deposits into and 

3 disbursements from the separate account. 

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

5 agreed upon with the foreign government, local currencies 

6 deposited in a separate account pursuant to subsection 

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

8 used only—

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

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

11 purposes as—

12 (i) project and sector assistance activities; 

13 or 

14 (ii) debt and deficit financing; or 

15 (B) for the administrative requirements of the 

16 United States Government. 

17 (3) PROGRAMMING ACCOUNTABILITY.—The United 

18 States Agency for International Development shall take all 

19 necessary steps to ensure that the equivalent of the local 

20 currencies disbursed pursuant to subsection (a)(2)(A) 

21 from the separate account established pursuant to sub22 section (a)(1) are used for the purposes agreed upon pur23 suant to subsection (a)(2). 

24 (4) TERMINATION OF ASSISTANCE PROGRAMS.—

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

2 may be), any unencumbered balances of funds which re3 main in a separate account established pursuant to sub4 section (a) shall be disposed of for such purposes as may 

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

6 United States Government. 

7 (5) REPORTING REQUIREMENT.—The Administrator 

8 of the United States Agency for International Develop9 ment shall report on an annual basis as part of the jus10 tification documents submitted to the Committees on Ap11 propriations on the use of local currencies for the adminis12 trative requirements of the United States Government as 

13 authorized in subsection (a)(2)(B), and such report shall 

14 include the amount of local currency (and United States 

15 dollar equivalent) used and/or to be used for such purpose 

16 in each applicable country. 

17 (b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—

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

19 a foreign country, under chapter 1 or 10 of part I or chap20 ter 4 of part II of the Foreign Assistance Act of 1961, 

21 as cash transfer assistance or as nonproject sector assist22 ance, that country shall be required to maintain such 

23 funds in a separate account and not commingle them with 

24 any other funds. 
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1 (2) APPLICABILITY OF OTHER PROVISIONS OF

2 LAW.—Such funds may be obligated and expended not3 withstanding provisions of law which are inconsistent with 

4 the nature of this assistance including provisions which 

5 are referenced in the Joint Explanatory Statement of the 

6 Committee of Conference accompanying House Joint Res7 olution 648 (House Report No. 98–1159). 

8 (3) NOTIFICATION.—At least 15 days prior to obli9 gating any such cash transfer or nonproject sector assist10 ance, the President shall submit a notification through the 

11 regular notification procedures of the Committees on Ap12 propriations, which shall include a detailed description of 

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

14 with a discussion of the United States interests that will 

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

16 description of the economic policy reforms that will be pro17 moted by such assistance). 

18 (4) EXEMPTION.—Nonproject sector assistance funds 

19 may be exempt from the requirements of subsection (b)(1) 

20 only through the notification procedures of the Commit21 tees on Appropriations. 

22 ENTERPRISE FUND RESTRICTIONS

23 SEC. 530. Prior to the distribution of any assets re24 sulting from any liquidation, dissolution, or winding up 

25 of an Enterprise Fund, in whole or in part, the President 

26 shall submit to the Committees on Appropriations, in ac-
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1 cordance with the regular notification procedures of the 

2 Committees on Appropriations, a plan for the distribution 

3 of the assets of the Enterprise Fund. 

4 BURMA

5 SEC. 531. Of the funds appropriated under the head6 ing ‘‘Economic Support Fund’’, not less than $6,000,000 

7 should be made available to support democracy activities 

8 along the Burma-Thailand border, for activities of Bur9 mese student groups and other organizations located out10 side Burma, and for the purpose of supporting the provi11 sion of humanitarian assistance to displaced Burmese 

12 along Burma’s borders: Provided, That of this amount 

13 $500,000 should be made available to support newspapers, 

14 publications, and other media activities promoting democ15 racy inside Burma: Provided further, That funds made 

16 available under this heading may be made available not17 withstanding any other provision of law: Provided further,

18 That funds made available by this section shall be subject 

19 to the regular notification procedures of the Committees 

20 on Appropriations. 

21 AUTHORITIES FOR THE PEACE CORPS, INTER-AMERICAN

22 FOUNDATION AND AFRICAN DEVELOPMENT FOUNDATION

23 SEC. 532. Unless expressly provided to the contrary, 

24 provisions of this or any other Act, including provisions 

25 contained in prior Acts authorizing or making appropria26 tions for foreign operations, export financing, and related 
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1 programs, shall not be construed to prohibit activities au2 thorized by or conducted under the Peace Corps Act, the 

3 Inter-American Foundation Act or the African Develop4 ment Foundation Act. The agency shall promptly report 

5 to the Committees on Appropriations whenever it is con6 ducting activities or is proposing to conduct activities in 

7 a country for which assistance is prohibited. 

8 IMPACT ON JOBS IN THE UNITED STATES

9 SEC. 533. None of the funds appropriated by this Act 

10 may be obligated or expended to provide—

11 (a) any financial incentive to a business enter12 prise currently located in the United States for the 

13 purpose of inducing such an enterprise to relocate 

14 outside the United States if such incentive or in15 ducement is likely to reduce the number of employ16 ees of such business enterprise in the United States 

17 because United States production is being replaced 

18 by such enterprise outside the United States; or 

19 (b) assistance for any program, project, or ac20 tivity that contributes to the violation of internation21 ally recognized workers rights, as defined in section 

22 507(4) of the Trade Act of 1974, of workers in the 

23 recipient country, including any designated zone or 

24 area in that country: Provided, That the application 

25 of section 507(4)(D) and (E) of such Act should be 

26 commensurate with the level of development of the 
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1 recipient country and sector, and shall not preclude 

2 assistance for the informal sector in such country, 

3 micro and small-scale enterprise, and smallholder 

4 agriculture. 

5 SPECIAL AUTHORITIES

6 SEC. 534. (a) AFGHANISTAN, PAKISTAN, LEBANON, 

7 MONTENEGRO, VICTIMS OF WAR, DISPLACED CHILDREN, 

8 AND DISPLACED BURMESE.—Funds appropriated by this 

9 Act that are made available for assistance for Afghanistan 

10 may be made available notwithstanding section 512 of this 

11 Act and any similar provision of law and section 660 of 

12 the Foreign Assistance Act of 1961, and funds appro13 priated in titles I and II of this Act that are made avail14 able for Lebanon, Montenegro, Pakistan, and for victims 

15 of war, displaced children, and displaced Burmese, and to 

16 assist victims of trafficking in persons and, subject to the 

17 regular notification procedures of the Committees on Ap18 propriations, to combat such trafficking, may be made 

19 available notwithstanding any other provision of law. 

20 (b) TROPICAL FORESTRY AND BIODIVERSITY CON21 SERVATION ACTIVITIES.—Funds appropriated by this Act 

22 to carry out the provisions of sections 103 through 106, 

23 and chapter 4 of part II, of the Foreign Assistance Act 

24 of 1961 may be used, notwithstanding any other provision 

25 of law, for the purpose of supporting tropical forestry and 

26 biodiversity conservation activities and energy programs 
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1 aimed at reducing greenhouse gas emissions: Provided, 

2 That such assistance shall be subject to sections 116, 

3 502B, and 620A of the Foreign Assistance Act of 1961. 

4 (c) PERSONAL SERVICES CONTRACTORS.—Funds ap5 propriated by this Act to carry out chapter 1 of part I, 

6 chapter 4 of part II, and section 667 of the Foreign As7 sistance Act of 1961, and title II of the Agricultural Trade 

8 Development and Assistance Act of 1954, may be used 

9 by the United States Agency for International Develop10 ment to employ up to 20 personal services contractors in 

11 the United States, notwithstanding any other provision of 

12 law, for the purpose of providing direct, interim support 

13 for new or expanded overseas programs and activities 

14 managed by the agency until permanent direct hire per15 sonnel are hired and trained: Provided, That not more 

16 than 7 of such contractors shall be assigned to any bureau 

17 or office: Provided further, That such funds appropriated 

18 to carry out the Foreign Assistance Act of 1961 may be 

19 made available for personal services contractors assigned 

20 only to the Office of Procurement; the Bureau for Africa; 

21 and the Bureau for Asia and the Near East: Provided fur22 ther, That such funds appropriated to carry out title II 

23 of the Agricultural Trade Development and Assistance Act 

24 of 1954, may be made available only for personal services 

25 contractors assigned to the Office of Food for Peace. 
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1 (d)(1) WAIVER.—The President may waive the provi2 sions of section 1003 of Public Law 100–204 if the Presi3 dent determines and certifies in writing to the Speaker 

4 of the House of Representatives and the President pro 

5 tempore of the Senate that it is important to the national 

6 security interests of the United States. 

7 (2) PERIOD OF APPLICATION OF WAIVER.—Any 

8 waiver pursuant to paragraph (1) shall be effective for no 

9 more than a period of 6 months at a time and shall not 

10 apply beyond 12 months after the enactment of this Act. 

11 (e) SMALL BUSINESS.—In entering into multiple 

12 award indefinite-quantity contracts with funds appro13 priated by this Act, the United States Agency for Inter14 national Development may provide an exception to the fair 

15 opportunity process for placing task orders under such 

16 contracts when the order is placed with any category of 

17 small or small disadvantaged business. 

18 (f) SHIPMENT OF HUMANITARIAN ASSISTANCE.—

19 During fiscal year 2004 and each fiscal year thereafter, 

20 of the amounts made available by the United States Agen21 cy for International Development to carry out the provi22 sions of section 123(b) of the Foreign Assistance Act of 

23 1961, funds may be made available to nongovernmental 

24 organizations for administrative costs necessary to imple25 ment a program to obtain available donated space on com-
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1 mercial ships for the shipment of humanitarian assistance 

2 overseas. 

3 (g) RECONSTITUTING CIVILIAN POLICE AUTHOR4 ITY.—In providing assistance with funds appropriated by 

5 this Act under section 660(b)(6) of the Foreign Assistance 

6 Act of 1961, support for a nation emerging from insta7 bility may be deemed to mean support for regional, dis8 trict, municipal, or other sub-national entity emerging 

9 from instability, as well as a nation emerging from insta10 bility. 

11 (h) NATIONAL ENDOWMENT FOR DEMOCRACY.—

12 Funds appropriated by this Act that are provided to the 

13 National Endowment for Democracy may be provided not14 withstanding any other provision of law or regulation. 

15 ARAB LEAGUE BOYCOTT OF ISRAEL

16 SEC. 535. It is the sense of the Congress that—

17 (1) the Arab League boycott of Israel, and the 

18 secondary boycott of American firms that have com19 mercial ties with Israel, is an impediment to peace 

20 in the region and to United States investment and 

21 trade in the Middle East and North Africa; 

22 (2) the Arab League boycott, which was regret23 tably reinstated in 1997, should be immediately and 

24 publicly terminated, and the Central Office for the 

25 Boycott of Israel immediately disbanded; 
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1 (3) the three Arab League countries with diplo2 matic and trade relations with Israel should return 

3 their ambassadors to Israel, should refrain from 

4 downgrading their relations with Israel, and should 

5 play a constructive role in securing a peaceful reso6 lution of the Israeli-Arab conflict; 

7 (4) the remaining Arab League states should 

8 normalize relations with their neighbor Israel; 

9 (5) the President and the Secretary of State 

10 should continue to vigorously oppose the Arab 

11 League boycott of Israel and find concrete steps to 

12 demonstrate that opposition by, for example, taking 

13 into consideration the participation of any recipient 

14 country in the boycott when determining to sell 

15 weapons to said country; and 

16 (6) the President should report to Congress an17 nually on specific steps being taken by the United 

18 States to encourage Arab League states to normalize 

19 their relations with Israel to bring about the termi20 nation of the Arab League boycott of Israel, includ21 ing those to encourage allies and trading partners of 

22 the United States to enact laws prohibiting busi23 nesses from complying with the boycott and penal24 izing businesses that do comply. 
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1 ADMINISTRATION OF JUSTICE ACTIVITIES

2 SEC. 536. Of the funds appropriated or otherwise 

3 made available by this Act or any subsequent Act for 

4 ‘‘Economic Support Fund’’, assistance may be provided 

5 to strengthen the administration of justice in countries in 

6 Latin America and the Caribbean and in other regions 

7 consistent with the provisions of section 534(b) of the For8 eign Assistance Act of 1961, except that programs to en9 hance protection of participants in judicial cases may be 

10 conducted notwithstanding section 660 of that Act. Funds 

11 made available pursuant to this section may be made 

12 available notwithstanding section 534(c) and the second 

13 and third sentences of section 534(e) of the Foreign As14 sistance Act of 1961. 

15 ELIGIBILITY FOR ASSISTANCE

16 SEC. 537. (a) ASSISTANCE THROUGH NONGOVERN17 MENTAL ORGANIZATIONS.—Restrictions contained in this 

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

19 shall not be construed to restrict assistance in support of 

20 programs of nongovernmental organizations from funds 

21 appropriated by this Act to carry out the provisions of 

22 chapters 1, 10, 11, and 12 of part I and chapter 4 of 

23 part II of the Foreign Assistance Act of 1961, and from 

24 funds appropriated under the heading ‘‘Assistance for 

25 Eastern Europe and the Baltic States’’: Provided, That 

26 before using the authority of this subsection to furnish as-
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1 sistance in support of programs of nongovernmental orga2 nizations, the President shall notify the Committees on 

3 Appropriations under the regular notification procedures 

4 of those committees, including a description of the pro5 gram to be assisted, the assistance to be provided, and 

6 the reasons for furnishing such assistance: Provided fur7 ther, That nothing in this subsection shall be construed 

8 to alter any existing statutory prohibitions against abor9 tion or involuntary sterilizations contained in this or any 

10 other Act. 

11 (b) PUBLIC LAW 480.—During fiscal year 2004, re12 strictions contained in this or any other Act with respect 

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

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

17 and made available pursuant to this subsection may be 

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

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

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

23 Assistance Act of 1961 or any comparable provision 

24 of law prohibiting assistance to countries that sup25 port international terrorism; or 
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1 (2) with respect to section 116 of the Foreign 

2 Assistance Act of 1961 or any comparable provision 

3 of law prohibiting assistance to the government of a 

4 country that violates internationally recognized 

5 human rights. 

6 RESERVATIONS OF FUNDS

7 SEC. 538. (a) Funds appropriated by this Act which 

8 are earmarked may be reprogrammed for other programs 

9 within the same account notwithstanding the earmark if 

10 compliance with the earmark is made impossible by oper11 ation of any provision of this or any other Act: Provided,

12 That any such reprogramming shall be subject to the reg13 ular notification procedures of the Committees on Appro14 priations: Provided further, That assistance that is repro15 grammed pursuant to this subsection shall be made avail16 able under the same terms and conditions as originally 

17 provided. 

18 (b) In addition to the authority contained in sub19 section (a), the original period of availability of funds ap20 propriated by this Act and administered by the United 

21 States Agency for International Development that are ear22 marked for particular programs or activities by this or any 

23 other Act shall be extended for an additional fiscal year 

24 if the Administrator of such agency determines and re25 ports promptly to the Committees on Appropriations that 

26 the termination of assistance to a country or a significant 
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1 change in circumstances makes it unlikely that such ear2 marked funds can be obligated during the original period 

3 of availability: Provided, That such earmarked funds that 

4 are continued available for an additional fiscal year shall 

5 be obligated only for the purpose of such earmark. 

6 CEILINGS AND EARMARKS

7 SEC. 539. Ceilings and earmarks contained in this 

8 Act shall not be applicable to funds or authorities appro9 priated or otherwise made available by any subsequent Act 

10 unless such Act specifically so directs. Earmarks or min11 imum funding requirements contained in any other Act 

12 shall not be applicable to funds appropriated by this Act. 

13 PROHIBITION ON PUBLICITY OR PROPAGANDA

14 SEC. 540. No part of any appropriation contained in 

15 this Act shall be used for publicity or propaganda purposes 

16 within the United States not authorized before the date 

17 of the enactment of this Act by the Congress: Provided,

18 That not to exceed $750,000 may be made available to 

19 carry out the provisions of section 316 of Public Law 96–

20 533. 

21 PROHIBITION OF PAYMENTS TO UNITED NATIONS

22 MEMBERS

23 SEC. 541. None of the funds appropriated or made 

24 available pursuant to this Act for carrying out the Foreign 

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

26 in part any assessments, arrearages, or dues of any mem-
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1 ber of the United Nations or, from funds appropriated by 

2 this Act to carry out chapter 1 of part I of the Foreign 

3 Assistance Act of 1961, the costs for participation of an4 other country’s delegation at international conferences 

5 held under the auspices of multilateral or international or6 ganizations. 

7 NONGOVERNMENTAL ORGANIZATIONS—DOCUMENTATION

8 SEC. 542. None of the funds appropriated or made 

9 available pursuant to this Act shall be available to a non10 governmental organization which fails to provide upon 

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

12 the auditing requirements of the United States Agency for 

13 International Development. 

14 PROHIBITION ON ASSISTANCE TO FOREIGN GOVERN15 MENTS THAT EXPORT LETHAL MILITARY EQUIP16 MENT TO COUNTRIES SUPPORTING INTERNATIONAL

17 TERRORISM

18 SEC. 543. (a) None of the funds appropriated or oth19 erwise made available by this Act may be available to any 

20 foreign government which provides lethal military equip21 ment to a country the government of which the Secretary 

22 of State has determined is a terrorist government for pur23 poses of section 6(j) of the Export Administration Act. 

24 The prohibition under this section with respect to a for25 eign government shall terminate 12 months after that gov26 ernment ceases to provide such military equipment. This 
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1 section applies with respect to lethal military equipment 

2 provided under a contract entered into after October 1, 

3 1997. 

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

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

6 President determines that furnishing such assistance is 

7 important to the national interests of the United States. 

8 (c) Whenever the waiver authority of subsection (b) 

9 is exercised, the President shall submit to the appropriate 

10 congressional committees a report with respect to the fur11 nishing of such assistance. Any such report shall include 

12 a detailed explanation of the assistance to be provided, in13 cluding the estimated dollar amount of such assistance, 

14 and an explanation of how the assistance furthers United 

15 States national interests. 

16 WITHHOLDING OF ASSISTANCE FOR PARKING FINES

17 OWED BY FOREIGN COUNTRIES

18 SEC. 544. (a) IN GENERAL.—Of the funds appro19 priated under this Act that are made available for a for20 eign country under part I of the Foreign Assistance Act 

21 of 1961, an amount equivalent to 110 percent of the total 

22 unpaid fines determined to be owed under the parking pro23 grams in the District of Columbia and New York City, 

24 New York by such country as of September 30, 2003 that 

25 were incurred after the first day of the fiscal year pre26 ceding the current fiscal year shall be withheld from obli-
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1 gation for such country until the Secretary of State cer2 tifies and reports in writing to the appropriate congres3 sional committees that such fines and penalties are fully 

4 paid to the governments of the District of Columbia and 

5 New York City, New York. 

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. 545. 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 WAR CRIMES TRIBUNALS DRAWDOWN

4 SEC. 546. If the President determines that doing so 

5 will contribute to a just resolution of charges regarding 

6 genocide or other violations of international humanitarian 

7 law, the President may direct a drawdown pursuant to sec8 tion 552(c) of the Foreign Assistance Act of 1961, as 

9 amended, of up to $30,000,000 of commodities and serv10 ices for the United Nations War Crimes Tribunal estab11 lished with regard to the former Yugoslavia by the United 

12 Nations Security Council or such other tribunals or com13 missions as the Council may establish or authorize to deal 

14 with such violations, without regard to the ceiling limita15 tion contained in paragraph (2) thereof: Provided, That 

16 the determination required under this section shall be in 

17 lieu of any determinations otherwise required under sec18 tion 552(c): Provided further, That the drawdown made 

19 under this section for any tribunal shall not be construed 

20 as an endorsement or precedent for the establishment of 

21 any standing or permanent international criminal tribunal 

22 or court: Provided further, That funds made available for 

23 tribunals other than Yugoslavia or Rwanda shall be made 

24 available subject to the regular notification procedures of 

25 the Committees on Appropriations. 
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1 LANDMINES

2 SEC. 547. Notwithstanding any other provision of 

3 law, demining equipment available to the United States 

4 Agency for International Development and the Depart5 ment of State and used in support of the clearance of 

6 landmines and unexploded ordnance for humanitarian 

7 purposes may be disposed of on a grant basis in foreign 

8 countries, subject to such terms and conditions as the 

9 President may prescribe. 

10 RESTRICTIONS CONCERNING THE PALESTINIAN

11 AUTHORITY

12 SEC. 548. None of the funds appropriated by this Act 

13 may be obligated or expended to create in any part of Je14 rusalem a new office of any department or agency of the 

15 United States Government for the purpose of conducting 

16 official United States Government business with the Pal17 estinian Authority over Gaza and Jericho or any successor 

18 Palestinian governing entity provided for in the Israel19 PLO Declaration of Principles: Provided, That this re20 striction shall not apply to the acquisition of additional 

21 space for the existing Consulate General in Jerusalem: 

22 Provided further, That meetings between officers and em23 ployees of the United States and officials of the Pales24 tinian Authority, or any successor Palestinian governing 

25 entity provided for in the Israel-PLO Declaration of Prin26 ciples, for the purpose of conducting official United States 
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1 Government business with such authority should continue 

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

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

4 States Government may continue to meet in Jerusalem on 

5 other subjects with Palestinians (including those who now 

6 occupy positions in the Palestinian Authority), have social 

7 contacts, and have incidental discussions. 

8 PROHIBITION OF PAYMENT OF CERTAIN EXPENSES

9 SEC. 549. None of the funds appropriated or other10 wise made available by this Act under the heading ‘‘Inter11 national Military Education and Training’’ or ‘‘Foreign 

12 Military Financing Program’’ for Informational Program 

13 activities or under the headings ‘‘Child Survival and 

14 Health Programs Fund’’, ‘‘Development Assistance’’, and 

15 ‘‘Economic Support Fund’’ may be obligated or expended 

16 to pay for—

17 (1) alcoholic beverages; or 

18 (2) entertainment expenses for activities that 

19 are substantially of a recreational character, includ20 ing but not limited to entrance fees at sporting 

21 events, theatrical and musical productions, and 

22 amusement parks. 

23 RESTRICTIONS ON VOLUNTARY CONTRIBUTIONS TO

24 UNITED NATIONS AGENCIES

25 SEC. 550. None of the funds appropriated by this Act 

26 may be made available to pay any voluntary contribution 
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1 of the United States to the United Nations (including the 

2 United Nations Development Program) if the United Na3 tions implements or imposes any taxation on any United 

4 States persons. 

5 HAITI

6 SEC. 551. The Government of Haiti shall be eligible 

7 to purchase defense articles and services under the Arms 

8 Export Control Act (22 U.S.C. 2751 et seq.), for the Coast 

9 Guard. 

10 LIMITATION ON ASSISTANCE TO THE PALESTINIAN

11 AUTHORITY

12 SEC. 552. (a) PROHIBITION OF FUNDS.—None of the 

13 funds appropriated by this Act to carry out the provisions 

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

15 1961 may be obligated or expended with respect to pro16 viding funds to the Palestinian Authority. 

17 (b) WAIVER.—The prohibition included in subsection 

18 (a) shall not apply if the President certifies in writing to 

19 the Speaker of the House of Representatives and the 

20 President pro tempore of the Senate that waiving such 

21 prohibition is important to the national security interests 

22 of the United States. 

23 (c) PERIOD OF APPLICATION OF WAIVER.—Any 

24 waiver pursuant to subsection (b) shall be effective for no 

25 more than a period of 6 months at a time and shall not 

26 apply beyond 12 months after the enactment of this Act. 
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1 LIMITATION ON ASSISTANCE TO SECURITY FORCES

2 SEC. 553. None of the funds made available by this 

3 Act may be provided to any unit of the security forces 

4 of a foreign country if the Secretary of State has credible 

5 evidence that such unit has committed gross violations of 

6 human rights, unless the Secretary determines and reports 

7 to the Committees on Appropriations that the government 

8 of such country is taking effective measures to bring the 

9 responsible members of the security forces unit to justice: 

10 Provided, That nothing in this section shall be construed 

11 to withhold funds made available by this Act from any 

12 unit of the security forces of a foreign country not credibly 

13 alleged to be involved in gross violations of human rights: 

14 Provided further, That in the event that funds are withheld 

15 from any unit pursuant to this section, the Secretary of 

16 State shall promptly inform the foreign government of the 

17 basis for such action and shall, to the maximum extent 

18 practicable, assist the foreign government in taking effec19 tive measures to bring the responsible members of the se20 curity forces to justice. 

21 FOREIGN MILITARY TRAINING REPORT

22 SEC. 554. The annual foreign military training report 

23 required by section 656 of the Foreign Assistance Act of 

24 1961 shall be submitted by the Secretary of Defense and 

25 the Secretary of State to the Committees on Appropria-
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1 tions of the House of Representatives and the Senate by 

2 the date specified in that section. 

3 KOREAN PENINSULA ENERGY DEVELOPMENT

4 ORGANIZATION

5 SEC. 555. None of the funds appropriated by this Act 

6 may be made available for assistance to the Korean Penin7 sula Energy Organization (KEDO). 

8 PALESTINIAN STATEHOOD

9 SEC. 556. (a) LIMITATION ON ASSISTANCE.—None 

10 of the funds appropriated by this Act may be provided 

11 to support a Palestinian state unless the Secretary of 

12 State determines and certifies to the appropriate congres13 sional committees that—

14 (1) a new leadership of a Palestinian governing 

15 entity has been democratically elected through cred16 ible and competitive elections; 

17 (2) the elected governing entity of a new Pales18 tinian state—

19 (A) has demonstrated a firm commitment 

20 to peaceful co-existence with the State of Israel; 

21 (B) is taking appropriate measures to 

22 counter terrorism and terrorist financing in the 

23 West Bank and Gaza, including the dismantling 

24 of terrorist infrastructures; 

25 (C) is establishing a new Palestinian secu26 rity entity that is fully cooperative with appro-
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1 priate Israeli and other appropriate security or2 ganizations; and 

3 (3) the Palestinian Authority (or the governing 

4 body of a new Palestinian state) is working with 

5 other countries in the region to vigorously pursue ef6 forts to establish a just, lasting, and comprehensive 

7 peace in the Middle East that will enable Israel and 

8 an independent Palestinian state to exist within the 

9 context of full and normal relationships, which 

10 should include—

11 (A) termination of all claims or states of 

12 belligerency; 

13 (B) respect for and acknowledgement of 

14 the sovereignty, territorial integrity, and polit15 ical independence of every state in the area 

16 through measures including the establishment 

17 of demilitarized zones; 

18 (C) their right to live in peace within se19 cure and recognized boundaries free from 

20 threats or acts of force; 

21 (D) freedom of navigation through inter22 national waterways in the area; and 

23 (E) a framework for achieving a just set24 tlement of the refugee problem. 
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1 (b) SENSE OF CONGRESS.—It is the sense of Con2 gress that the newly elected governing entity should enact 

3 a constitution assuring the rule of law, an independent ju4 diciary, and respect for human rights for its citizens, and 

5 should enact other laws and regulations assuring trans6 parent and accountable governance. 

7 (c) WAIVER.—The President may waive subsection 

8 (a) if he determines that it is vital to the national security 

9 interests of the United States to do so. 

10 (d) EXEMPTION.—The restriction in subsection (a) 

11 shall not apply to assistance intended to help reform the 

12 Palestinian Authority and affiliated institutions, or a 

13 newly elected governing entity, in order to help meet the 

14 requirements of subsection (a), consistent with the provi15 sions of section 552 of this Act (‘‘Limitation on Assistance 

16 to the Palestinian Authority’’). 

17 COLOMBIA

18 SEC. 557. (a) DETERMINATION AND CERTIFICATION

19 REQUIRED.—Notwithstanding any other provision of law, 

20 funds appropriated by this Act that are available for as21 sistance for the Colombian Armed Forces, may be made 

22 available as follows: 

23 (1) Up to 75 percent of such funds may be obli24 gated prior to a determination and certification by 

25 the Secretary of State pursuant to paragraph (2). 
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1 (2) The balance of such funds may be obligated 

2 only after the Secretary of State certifies and re3 ports to the appropriate congressional committees 

4 that: 

5 (A) The Commander General of the Co6 lombian Armed Forces is suspending from the 

7 Armed Forces those members, of whatever 

8 rank, who have been credibly alleged to have 

9 committed gross violations of human rights, in10 cluding extra-judicial killings, or to have aided 

11 or abetted paramilitary organizations. 

12 (B) The Colombian Government is pros13 ecuting those members of the Colombian Armed 

14 Forces, of whatever rank, who have been 

15 credibly alleged to have committed gross viola16 tions of human rights, including extra-judicial 

17 killings, or to have aided or abetted para18 military organizations, and is punishing those 

19 members of the Colombian Armed Forces found 

20 to have committed such violations of human 

21 rights or to have aided or abetted paramilitary 

22 organizations. 

23 (C) The Colombian Armed Forces are co24 operating with civilian prosecutors and judicial 

25 authorities in such cases (including providing 
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1 requested information, such as the identity of 

2 persons suspended from the Armed Forces and 

3 the nature and cause of the suspension, and ac4 cess to witnesses, relevant military documents, 

5 and other requested information). 

6 (D) The Colombian Armed Forces are sev7 ering links (including denying access to military 

8 intelligence, vehicles, and other equipment or 

9 supplies, and ceasing other forms of active or 

10 tacit cooperation) at the command, battalion, 

11 and brigade levels, with paramilitary organiza12 tions. 

13 (E) The Colombian Armed Forces are exe14 cuting orders for capture of leaders of para15 military organizations that continue armed con16 flict. 

17 (b) CONSULTATIVE PROCESS.—At least 10 days prior 

18 to making the certification required by subsection (a), the 

19 Secretary of State shall consult with internationally recog20 nized human rights organizations regarding progress in 

21 meeting the conditions contained in that subsection. 

22 (c) DEFINITIONS.—In this section: 

23 (1) AIDED OR ABETTED.—The term ‘‘aided or 

24 abetted’’ means to provide any support to para25 military groups, including taking actions which 
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1 allow, facilitate, or otherwise foster the activities of 

2 such groups. 

3 (2) PARAMILITARY GROUPS.—The term ‘‘para4 military groups’’ means illegal self-defense groups 

5 and illegal security cooperatives. 

6 ILLEGAL ARMED GROUPS

7 SEC. 558. (a) DENIAL OF VISAS TO SUPPORTERS OF

8 COLOMBIAN ILLEGAL ARMED GROUPS.—Subject to sub9 section (b), the Secretary of State shall not issue a visa 

10 to any alien who the Secretary determines, based on cred11 ible evidence—

12 (1) has willfully provided any support to the 

13 Revolutionary Armed Forces of Colombia (FARC), 

14 the National Liberation Army (ELN), or the United 

15 Self-Defense Forces of Colombia (AUC), including 

16 taking actions or failing to take actions which allow, 

17 facilitate, or otherwise foster the activities of such 

18 groups; or 

19 (2) has committed, ordered, incited, assisted, or 

20 otherwise participated in the commission of gross 

21 violations of human rights, including extra-judicial 

22 killings, in Colombia. 

23 (b) WAIVER.—Subsection (a) shall not apply if the 

24 Secretary of State determines and certifies to the appro25 priate congressional committees, on a case-by-case basis, 

26 that the issuance of a visa to the alien is necessary to 
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1 support the peace process in Colombia or for urgent hu2 manitarian reasons. 

3 PROHIBITION ON ASSISTANCE TO THE PALESTINIAN

4 BROADCASTING CORPORATION

5 SEC. 559. None of the funds appropriated or other6 wise made available by this Act may be used to provide 

7 equipment, technical support, consulting services, or any 

8 other form of assistance to the Palestinian Broadcasting 

9 Corporation. 

10 WEST BANK AND GAZA PROGRAM

11 SEC. 560. (a) OVERSIGHT.—For fiscal year 2004, 30 

12 days prior to the initial obligation of funds for the bilateral 

13 West Bank and Gaza Program, the Secretary of State 

14 shall certify to the appropriate committees of Congress 

15 that procedures have been established to assure the Comp16 troller General of the United States will have access to 

17 appropriate United States financial information in order 

18 to review the uses of United States assistance for the Pro19 gram funded under the heading ‘‘Economic Support 

20 Fund’’ for the West Bank and Gaza. 

21 (b) VETTING.—Prior to the obligation of funds ap22 propriated by this Act under the heading ‘‘Economic Sup23 port Fund’’ for assistance for the West Bank and Gaza, 

24 the Secretary of State shall take all appropriate steps to 

25 ensure that such assistance is not provided to or through 

26 any individual or entity that the Secretary knows or has 
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1 reason to believe advocates, plans, sponsors, engages in, 

2 or has engaged in, terrorist activity. The Secretary of 

3 State shall, as appropriate, establish procedures specifying 

4 the steps to be taken in carrying out this subsection. 

5 (c) AUDITS.—(1) The Administrator of the United 

6 States Agency for International Development shall ensure 

7 that Federal or non-Federal audits of all contractors and 

8 grantees, and significant subcontractors and subgrantees, 

9 under the West Bank and Gaza Program, are conducted 

10 at least on an annual basis to ensure, among other things, 

11 compliance with this section. 

12 (2) Of the funds appropriated by this Act under the 

13 heading ‘‘Economic Support Fund’’ that are made avail14 able for assistance for the West Bank and Gaza, up to 

15 $1,000,000 may be used by the Office of the Inspector 

16 General of the United States Agency for International De17 velopment for audits, inspections, and other activities in 

18 furtherance of the requirements of this subsection. Such 

19 funds are in addition to funds otherwise available for such 

20 purposes. 

21 CONTRIBUTIONS TO UNITED NATIONS POPULATION FUND

22 SEC. 561. (a) LIMITATIONS ON AMOUNT OF CON23 TRIBUTION.—Of the amounts made available under 

24 ‘‘International Organizations and Programs’’, 

25 $25,000,000 for fiscal year 2004 shall be available for the 
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1 United Nations Population Fund (hereafter in this section 

2 referred to as the ‘‘UNFPA’’) subject to subsection (c). 

3 (b) PROHIBITION ON USE OF FUNDS IN CHINA.—

4 None of the funds made available under ‘‘International 

5 Organizations and Programs’’ may be made available for 

6 the UNFPA for a country program in the People’s Repub7 lic of China. 

8 (c) CONDITIONS ON AVAILABILITY OF FUNDS.—

9 Amounts made available under ‘‘International Organiza10 tions and Programs’’ for fiscal year 2004 for the UNFPA 

11 may not be made available to the UNFPA unless—

12 (1) the UNFPA maintains amounts made avail13 able to the UNFPA under this section in an account 

14 separate from other accounts of the UNFPA; 

15 (2) the UNFPA does not commingle amounts 

16 made available to the UNFPA under this section 

17 with other sums; 

18 (3) the UNFPA does not fund abortions; and 

19 (4) the UNFPA does not provide any funding 

20 for the State Planned-Birth Commission (Jihua 

21 Shengyu Weiyuanhui) or its regional affiliates in the 

22 People’s Republic of China. 

23 (d) REPORT TO THE CONGRESS AND WITHHOLDING

24 OF FUNDS.—
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1 (1) Not later than February 15, 2004, the Sec2 retary of State shall submit a report to the appro3 priate congressional committees indicating the 

4 amount of funds that the UNFPA is budgeting for 

5 the year in which the report is submitted for a coun6 try program in the People’s Republic of China. 

7 (2) If a report under paragraph (1) indicates 

8 that the UNFPA plans to spend funds for a country 

9 program in the People’s Republic of China in the 

10 year covered by the report, then the amount of such 

11 funds that the UNFPA plans to spend in the Peo12 ple’s Republic of China shall be deducted from the 

13 funds made available to the UNFPA after March 1 

14 for obligation for the remainder of the fiscal year in 

15 which the report is submitted. 

16 PROCUREMENT AND FINANCIAL MANAGEMENT REFORM

17 SEC. 562. (a) FUNDING CONDITIONS.—Of the funds 

18 made available under the heading ‘‘International Financial 

19 Institutions’’ in this Act, 10 percent of the United States 

20 portion or payment to such International Financial Insti21 tution shall be withheld by the Secretary of the Treasury, 

22 until the Secretary certifies to the Committees on Appro23 priations that, to the extent pertinent to its lending pro24 grams, the institution is—
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1 (1) implementing procedures for conducting an2 nual audits by qualified independent auditors for all 

3 new investment lending; 

4 (2) implementing procedures for annual inde5 pendent external audits of central bank financial 

6 statements for countries making use of International 

7 Monetary Fund resources under new arrangements 

8 or agreements with the Fund; 

9 (3) taking steps to establish an independent 

10 fraud and corruption investigative organization or 

11 office; 

12 (4) implementing a process to assess a recipient 

13 country’s procurement and financial management 

14 capabilities including an analysis of the risks of cor15 ruption prior to initiating new investment lending; 

16 and 

17 (5) taking steps to fund and implement pro18 grams and policies to improve transparency and 

19 anti-corruption programs and procurement and fi20 nancial management controls in recipient countries. 

21 (b) DEFINITIONS.—The term ‘‘International Finan22 cial Institutions’’ means the International Bank for Re23 construction and Development, the International Develop24 ment Association, the International Finance Corporation, 

25 the Inter-American Development Bank, the Inter-Amer-
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1 ican Investment Corporation, the Enterprise for the Amer2 icas Multilateral Investment Fund, the Asian Development 

3 Bank, the Asian Development Fund, the African Develop4 ment Bank, the African Development Fund, the European 

5 Bank for Reconstruction and Development, and the Inter6 national Monetary Fund. 

7 WAR CRIMINALS

8 SEC. 563. (a)(1) None of the funds appropriated or 

9 otherwise made available pursuant to this Act may be 

10 made available for assistance, and the Secretary of the 

11 Treasury shall instruct the United States executive direc12 tors to the international financial institutions to vote 

13 against any new project involving the extension by such 

14 institutions of any financial or technical assistance, to any 

15 country, entity, or municipality whose competent authori16 ties have failed, as determined by the Secretary of State, 

17 to take necessary and significant steps to implement its 

18 international legal obligations to apprehend and transfer 

19 to the International Criminal Tribunal for the former 

20 Yugoslavia (the ‘‘Tribunal’’) all persons in their territory 

21 who have been indicted by the Tribunal and to otherwise 

22 cooperate with the Tribunal. 

23 (2) The provisions of this subsection shall not apply 

24 to humanitarian assistance or assistance for democratiza25 tion. 
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1 (b) The provisions of subsection (a) shall apply unless 

2 the Secretary of State determines and reports to the ap3 propriate congressional committees that the competent au4 thorities of such country, entity, or municipality are—

5 (1) cooperating with the Tribunal, including ac6 cess for investigators to archives and witnesses, the 

7 provision of documents, and the surrender and 

8 transfer of indictees or assistance in their apprehen9 sion; and 

10 (2) are acting consistently with the Dayton Ac11 cords. 

12 (c) Not less than 10 days before any vote in an inter13 national financial institution regarding the extension of 

14 any new project involving financial or technical assistance 

15 or grants to any country or entity described in subsection 

16 (a), the Secretary of the Treasury, in consultation with 

17 the Secretary of State, shall provide to the Committees 

18 on Appropriations a written justification for the proposed 

19 assistance, including an explanation of the United States 

20 position regarding any such vote, as well as a description 

21 of the location of the proposed assistance by municipality, 

22 its purpose, and its intended beneficiaries. 

23 (d) In carrying out this section, the Secretary of 

24 State, the Administrator of the United States Agency for 

25 International Development, and the Secretary of the 
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1 Treasury shall consult with representatives of human 

2 rights organizations and all government agencies with rel3 evant information to help prevent indicted war criminals 

4 from benefiting from any financial or technical assistance 

5 or grants provided to any country or entity described in 

6 subsection (a). 

7 (e) The Secretary of State may waive the application 

8 of subsection (a) with respect to projects within a country, 

9 entity, or municipality upon a written determination to the 

10 Committees on Appropriations that such assistance di11 rectly supports the implementation of the Dayton Accords. 

12 (f) DEFINITIONS.—As used in this section—

13 (1) COUNTRY.—The term ‘‘country’’ means 

14 Bosnia and Herzegovina, Croatia and Serbia. 

15 (2) ENTITY.—The term ‘‘entity’’ refers to the 

16 Federation of Bosnia and Herzegovina, Kosovo, 

17 Montenegro and the Republika Srpska. 

18 (3) MUNICIPALITY.—The term ‘‘municipality’’ 

19 means a city, town or other subdivision within a 

20 country or entity as defined herein. 

21 (4) DAYTON ACCORDS.—The term ‘‘Dayton Ac22 cords’’ means the General Framework Agreement 

23 for Peace in Bosnia and Herzegovina, together with 

24 annexes relating thereto, done at Dayton, November 

25 10 through 16, 1995. 
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1 USER FEES

2 SEC. 564. The Secretary of the Treasury shall in3 struct the United States Executive Director at each inter4 national financial institution (as defined in section 

5 1701(c)(2) of the International Financial Institutions Act) 

6 and the International Monetary Fund to oppose any loan, 

7 grant, strategy or policy of these institutions that would 

8 require user fees or service charges on poor people for pri9 mary education or primary healthcare, including preven10 tion and treatment efforts for HIV/AIDS, malaria, tuber11 culosis, and infant, child, and maternal well-being, in con12 nection with the institutions’ financing programs. 

13 FUNDING FOR SERBIA

14 SEC. 565. (a) Funds appropriated by this Act may 

15 be made available for assistance for Serbia after March 

16 1, 2004, if the President has made the determination and 

17 certification contained in subsection (c). 

18 (b) After March 1, 2004, the Secretary of the Treas19 ury should instruct the United States executive directors 

20 to the international financial institutions to support loans 

21 and assistance to the Government of the Federal Republic 

22 of Yugoslavia (or a government of a successor state) sub23 ject to the conditions in subsection (c): Provided, That sec24 tion 576 of the Foreign Operations, Export Financing, 

25 and Related Programs Appropriations Act, 1997, as 

26 amended, shall not apply to the provision of loans and as-
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1 sistance to the Federal Republic of Yugoslavia (or a suc2 cessor state) through international financial institutions. 

3 (c) The determination and certification referred to in 

4 subsection (a) is a determination by the President and a 

5 certification to the Committees on Appropriations that the 

6 Government of the Federal Republic of Yugoslavia (or a 

7 government of a successor state) is—

8 (1) cooperating with the International Criminal 

9 Tribunal for the former Yugoslavia including access 

10 for investigators, the provision of documents, and 

11 the surrender and transfer of indictees or assistance 

12 in their apprehension; 

13 (2) taking steps that are consistent with the 

14 Dayton Accords to end Serbian financial, political, 

15 security and other support which has served to 

16 maintain separate Republika Srpska institutions; 

17 and 

18 (3) taking steps to implement policies which re19 flect a respect for minority rights and the rule of 

20 law, including the release of political prisoners from 

21 Serbian jails and prisons. 

22 (d) This section shall not apply to Montenegro, 

23 Kosovo, humanitarian assistance or assistance to promote 

24 democracy in municipalities. 
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1 COMMUNITY-BASED POLICE ASSISTANCE

2 SEC. 566. (a) AUTHORITY.—Funds made available 

3 by this Act to carry out the provisions of chapter 1 of 

4 part I and chapter 4 of part II of the Foreign Assistance 

5 Act of 1961, may be used, notwithstanding section 660 

6 of that Act, to enhance the effectiveness and account7 ability of civilian police authority in Jamaica and El Sal8 vador through training and technical assistance in human 

9 rights, the rule of law, strategic planning, and through as10 sistance to foster civilian police roles that support demo11 cratic governance including assistance for programs to 

12 prevent conflict and foster improved police relations with 

13 the communities they serve. 

14 (b) NOTIFICATION.—Assistance provided under sub15 section (a) shall be subject to the regular notification pro16 cedures of the Committees on Appropriations. 

17 TRADE CAPACITY BUILDING

18 SEC. 567. Of the funds appropriated by this Act, 

19 under the headings ‘‘Trade and Development Agency’’, 

20 ‘‘Development Assistance’’, ‘‘Transition Initiatives’’, 

21 ‘‘Economic Support Fund’’, ‘‘International Affairs Tech22 nical Assistance’’, and ‘‘International Organizations and 

23 Programs’’, not less than $517,000,000 should be made 

24 available for trade capacity building assistance. 
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1 SPECIAL DEBT RELIEF FOR THE POOREST

2 SEC. 568. (a) AUTHORITY TO REDUCE DEBT.-The 

3 President may reduce amounts owed to the United States 

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

5 as a result of—

6 (1) guarantees issued under sections 221 and 

7 222 of the Foreign Assistance Act of 1961; 

8 (2) credits extended or guarantees issued under 

9 the Arms Export Control Act; or 

10 (3) any obligation or portion of such obligation, 

11 to pay for purchases of United States agricultural 

12 commodities guaranteed by the Commodity Credit 

13 Corporation under export credit guarantee programs 

14 authorized pursuant to section 5(f) of the Com15 modity Credit Corporation Charter Act of June 29, 

16 1948, as amended, section 4(b) of the Food for 

17 Peace Act of 1966, as amended (Public Law 89–

18 808), or section 202 of the Agricultural Trade Act 

19 of 1978, as amended (Public Law 95–501). 

20 (b) LIMITATIONS.—

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

22 may be exercised only to implement multilateral offi23 cial debt relief and referendum agreements, com24 monly referred to as ‘‘Paris Club Agreed Minutes’’. 
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1 (2) The authority provided by subsection (a) 

2 may be exercised only in such amounts or to such 

3 extent as is provided in advance by appropriations 

4 Acts. 

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

6 may be exercised only with respect to countries with 

7 heavy debt burdens that are eligible to borrow from 

8 the International Development Association, but not 

9 from the International Bank for Reconstruction and 

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

11 countries. 

12 (c) CONDITIONS.—The authority provided by sub13 section (a) may be exercised only with respect to a country 

14 whose government—

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

16 expenditures; 

17 (2) has not repeatedly provided support for acts 

18 of international terrorism; 

19 (3) is not failing to cooperate on international 

20 narcotics control matters; 

21 (4) (including its military or other security 

22 forces) does not engage in a consistent pattern of 

23 gross violations of internationally recognized human 

24 rights; and 
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1 (5) is not ineligible for assistance because of the 

2 application of section 527 of the Foreign Relations 

3 Authorization Act, Fiscal Years 1994 and 1995. 

4 (d) AVAILABILITY OF FUNDS.—The authority pro5 vided by subsection (a) may be used only with regard to 

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

7 Restructuring’’. 

8 (e) CERTAIN PROHIBITIONS INAPPLICABLE.—The 

9 authority provided by subsection (a) may be exercised not10 withstanding section 620(r) of the Foreign Assistance Act 

11 of 1961 or section 321 of the International Development 

12 and Food Assistance Act of 1975. 

13 AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES

14 SEC. 569. (a) LOANS ELIGIBLE FOR SALE, REDUC15 TION, OR CANCELLATION.—

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

17 CERTAIN LOANS.—Notwithstanding any other provi18 sion of law, the President may, in accordance with 

19 this section, sell to any eligible purchaser any 

20 concessional loan or portion thereof made before 

21 January 1, 1995, pursuant to the Foreign Assist22 ance Act of 1961, to the government of any eligible 

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

24 on receipt of payment from an eligible purchaser, re25 duce or cancel such loan or portion thereof, only for 

26 the purpose of facilitating—
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1 (A) debt-for-equity swaps, debt-for-development 

2 swaps, or debt-for-nature swaps; or 

3 (B) a debt buyback by an eligible country of its own 

4 qualified debt, only if the eligible country uses an addi5 tional amount of the local currency of the eligible country, 

6 equal to not less than 40 percent of the price paid for 

7 such debt by such eligible country, or the difference be8 tween the price paid for such debt and the face value of 

9 such debt, to support activities that link conservation and 

10 sustainable use of natural resources with local community 

11 development, and child survival and other child develop12 ment, in a manner consistent with sections 707 through 

13 710 of the Foreign Assistance Act of 1961, if the sale, 

14 reduction, or cancellation would not contravene any term 

15 or condition of any prior agreement relating to such loan. 

16 (2) TERMS AND CONDITIONS.—Notwith17 standing any other provision of law, the President 

18 shall, in accordance with this section, establish the 

19 terms and conditions under which loans may be sold, 

20 reduced, or canceled pursuant to this section. 

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

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

23 1961, shall notify the administrator of the agency 

24 primarily responsible for administering part I of the 

25 Foreign Assistance Act of 1961 of purchasers that 
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1 the President has determined to be eligible, and 

2 shall direct such agency to carry out the sale, reduc3 tion, or cancellation of a loan pursuant to this sec4 tion. Such agency shall make an adjustment in its 

5 accounts to reflect the sale, reduction, or cancella6 tion. 

7 (4) LIMITATION.—The authorities of this sub8 section shall be available only to the extent that ap9 propriations for the cost of the modification, as de10 fined in section 502 of the Congressional Budget Act 

11 of 1974, are made in advance. 

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

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

14 or canceled pursuant to this section shall be deposited in 

15 the United States Government account or accounts estab16 lished for the repayment of such loan. 

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

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

19 presents plans satisfactory to the President for using the 

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

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

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

23 any eligible purchaser, or any reduction or cancellation 

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

25 country, the President should consult with the country 
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1 concerning the amount of loans to be sold, reduced, or 

2 canceled and their uses for debt-for-equity swaps, debt3 for-development swaps, or debt-for-nature swaps. 

4 (e) AVAILABILITY OF FUNDS.—The authority pro5 vided by subsection (a) may be used only with regard to 

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

7 Restructuring’’. 

8 CAMBODIA

9 SEC. 570. The Secretary of the Treasury should in10 struct the United States executive directors of the inter11 national financial institutions to use the voice and vote 

12 of the United States to oppose loans to the Central Gov13 ernment of Cambodia, except loans to support basic 

14 human needs. 

15 CUBA

16 SEC. 571. None of the funds appropriated by this Act 

17 under the heading ‘‘International Narcotics Control and 

18 Law Enforcement’’ may be made available for assistance 

19 to the Government of Cuba. 

20 COMPETITION IN CONTRACTING

21 SEC. 572. Notwithstanding any other provision of 

22 law, none of the funds appropriated by this Act to carry 

23 out sections 103 through 106 and chapter 4 of part II 

24 of the Foreign Assistance Act of 1961 that are made avail25 able for assistance for Iraq, and none of the funds appro-
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1 priated in Public Law 108–11 under the heading ‘‘Iraq 

2 Relief and Reconstruction Fund’’, may be made available 

3 to enter into any Federal contract or follow-on contract 

4 through the use of other than full and open competitive 

5 procedures: Provided, That this section shall be applicable 

6 to contracts and follow-on contracts entered into after the 

7 date of enactment of this Act. 

8 DISASTER SURGE CAPACITY

9 SEC. 573. Funds appropriated by this Act to carry 

10 out part I of the Foreign Assistance Act of 1961 may be 

11 used, in addition to funds otherwise available for such pur12 poses, for the cost (including the support costs) of individ13 uals detailed to or employed by the United States Agency 

14 for International Development whose primary responsi15 bility is to carry out programs to address natural or man16 made disasters or programs under the heading ‘‘Transi17 tion Initiatives’’. 

18 AUTHORIZATION

19 SEC. 574. The Secretary of the Treasury may, to ful20 fill commitments of the United States, contribute on be21 half of the United States to the sixth replenishment of 

22 the resources of the International Fund for Agricultural 

23 Development. The following amount is authorized to be 

24 appropriated without fiscal year limitation for payment by 
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1 the Secretary of the Treasury: $45,000,000 for the Inter2 national Fund for Agricultural Development. 

3 CLARIFICATION OF ROLE OF USAID

4 SEC. 575. (a) STATUS OF USAID.—The Adminis5 trator of the United States Agency for International De6 velopment shall report to the President through, and oper7 ate under the foreign policy authority and direction of, the 

8 Secretary of State. The United States Agency for Inter9 national Development shall be administered under the su10 pervision and operational direction of the Administrator 

11 of the Agency. 

12 (b) FUNCTIONS OF USAID.—The United States 

13 Agency for International Development is authorized—

14 (1) to receive appropriated funds; 

15 (2) to be the United States Government agency 

16 primarily responsible for administering sections 103 

17 through 108 (other than section 104A), 214, and 

18 491 of the Foreign Assistance Act of 1961, the 

19 ‘‘Child Survival and Health Programs Fund’’, and 

20 other United States economic assistance as directed 

21 in writing by the President or the Secretary of 

22 State, or as otherwise provided by law; 

23 (3) to provide assistance to a country currently 

24 ineligible for assistance from the Millennium Chal25 lenge Corporation in order that it may become eligi26 ble for such assistance; and 
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1 (4) upon the request of the Chief Executive Of2 ficer of the Millennium Challenge Corporation and 

3 with the concurrence of the Administrator, to assist 

4 in the evaluation, execution or oversight of a Millen5 nium Challenge Contract. 

6 (c) Section 491 of the Foreign Assistance Act of 1961 

7 (22 U.S.C. 2292) is amended—

8 (1) in subsection (a), by striking ‘‘assistance for 

9 the relief and rehabilitation of’’ and inserting ‘‘relief, 

10 rehabilitation, and reconstruction assistance for’’; 

11 (2) in subsection (b), by striking ‘‘relief and re12 habilitation’’ and inserting ‘‘relief, rehabilitation, 

13 and reconstruction’’; and 

14 (3) in subsection (c), by striking ‘‘relief and re15 habilitation’’ and inserting ‘‘relief, rehabilitation, 

16 and reconstruction assistance’’. 

17 PHILIPPINE EDUCATION AND HEALTH INFRASTRUCTURE

18 SEC. 576. Of the funds appropriated under ‘‘Eco19 nomic Support Fund’’ for the Philippines in Public Law 

20 108–11, the Emergency Wartime Supplemental Appro21 priations Act, 2003, $600,000 shall be available only for 

22 upgrading education and health infrastructure in the Sulu 

23 Archipelago. 
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1 BASIC EDUCATION

2 SEC. 577. Of the funds appropriated by title II of 

3 this Act, not less than $350,000,000 shall be made avail4 able for basic education: Provided, That of the funds made 

5 available pursuant to this section, not less than 

6 $91,500,000 should be from funds appropriated under the 

7 heading ‘‘Economic Support Fund’’: Provided further,

8 That the Secretary of State, in consultation with the Ad9 ministrator of the United States Agency for International 

10 Development (USAID), shall submit a report not later 

11 than 120 days after enactment of this Act articulating a 

12 strategy for the use of basic education funds in Africa, 

13 East Asia and the Pacific, the Near East, South Asia, and 

14 the Western Hemisphere (excluding the United States) to 

15 include: 

16 (1) country strategies and brief project descrip17 tions of the uses and proposed uses of all U.S. Gov18 ernment resources for basic education overseas; 

19 (2) a detailed description of the administrative 

20 structure currently in place to manage strategic co21 ordination undertaken among the State Department, 

22 USAID and other agencies involved in international 

23 basic education activities; and 

24 (3) a description of actions being taken to expand 

25 the administrative capacity of both USAID and the 
122

HR 2800 RH 

1 State Department to deliver effective expanded basic 

2 education programs. 

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

4 Export Financing, and Related Programs Appropriations 

5 Act, 2004’’. 

Union Calendar No. 123

108TH CONGRESS 

1ST SESSION H. R. 2800

[Report No. 108–222] 

A BILL

Making appropriations for foreign operations, export financing, and related programs for the fiscal year ending September 30, 2004, and for 

other purposes. 

JULY 21, 2003

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed