108TH CONGRESS

1ST SESSION H. R. 2800

AN ACT

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,
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1 That the following sums are appropriated, out of any

2 money in the Treasury not otherwise appropriated, for the

3 fiscal year ending September 30, 2004, and for other pur4 poses, namely:

5 TITLE I—EXPORT AND INVESTMENT

6 ASSISTANCE

7 EXPORT-IMPORT BANK OF THE UNITED STATES

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

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

14 Corporation Control Act, as may be necessary in carrying

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

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

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

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

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

24 of the enactment of this Act: Provided further, That not25 withstanding section 1(c) of Public Law 103–428, as
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1 amended, sections 1(a) and (b) of Public Law 103–428

2 shall remain in effect through October 1, 2004.

3 ADMINISTRATIVE EXPENSES

4 For administrative expenses to carry out the direct

5 and guaranteed loan and insurance programs, including

6 hire of passenger motor vehicles and services as authorized

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

8 reception and representation expenses for members of the

9 Board of Directors, $71,395,000: Provided, That the Ex10 port-Import Bank may accept, and use, payment or serv11 ices provided by transaction participants for legal, finan12 cial, or technical services in connection with any trans13 action for which an application for a loan, guarantee or

14 insurance commitment has been made: Provided further,

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

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

17 shall remain in effect until October 1, 2004.

18 OVERSEAS PRIVATE INVESTMENT CORPORATION

19 NONCREDIT ACCOUNT

20 The Overseas Private Investment Corporation is au21 thorized to make, without regard to fiscal year limitations,

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

23 commitments within the limits of funds available to it and

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

25 That the amount available for administrative expenses to

26 carry out the credit and insurance programs (including an
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1 amount for official reception and representation expenses

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

3 $41,385,000: Provided further, That project-specific trans4 action costs, including direct and indirect costs incurred

5 in claims settlements, and other direct costs associated

6 with services provided to specific investors or potential in7 vestors pursuant to section 234 of the Foreign Assistance

8 Act of 1961, shall not be considered administrative ex9 penses for the purposes of this heading.

10 PROGRAM ACCOUNT

11 For the cost of direct and guaranteed loans,

12 $24,000,000, as authorized by section 234 of the Foreign

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

14 the Overseas Private Investment Corporation Non-Credit

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

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

17 of the Congressional Budget Act of 1974: Provided fur18 ther, That such sums shall be available for direct loan obli19 gations and loan guaranty commitments incurred or made

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

21 such sums shall remain available through fiscal year 2012

22 for the disbursement of direct and guaranteed loans obli23 gated in fiscal year 2004, and through fiscal year 2013

24 for the disbursement of direct and guaranteed loans obli25 gated in fiscal year 2005.
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1 In addition, such sums as may be necessary for ad2 ministrative expenses to carry out the credit program may

3 be derived from amounts available for administrative ex4 penses to carry out the credit and insurance programs in

5 the Overseas Private Investment Corporation Noncredit

6 Account and merged with said account.

7 FUNDS APPROPRIATED TO THE PRESIDENT

8 TRADE AND DEVELOPMENT AGENCY

9 For necessary expenses to carry out the provisions

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

11 $50,000,000, to remain available until September 30,

12 2005.

13 TITLE II—BILATERAL ECONOMIC ASSISTANCE

14 FUNDS APPROPRIATED TO THE PRESIDENT

15 For expenses necessary to enable the President to

16 carry out the provisions of the Foreign Assistance Act of

17 1961, and for other purposes, to remain available until

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

19 follows:

20 UNITED STATES AGENCY FOR INTERNATIONAL

21 DEVELOPMENT

22 CHILD SURVIVAL AND HEALTH PROGRAMS FUND

23 (INCLUDING TRANSFER OF FUNDS)

24 For necessary expenses to carry out the provisions

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

26 Act of 1961, for child survival, health, and family plan-
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1 ning/reproductive health activities, in addition to funds

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

3 remain available until September 30, 2005: Provided,

4 That this amount shall be made available for such activi5 ties as: (1) programs for the prevention, treatment, con6 trol of, and research on HIV/AIDS, tuberculosis, polio,

7 malaria, and other infectious diseases, and for assistance

8 to communities severely affected by HIV/AIDS, including

9 children displaced or orphaned by AIDS; (2) family plan10 ning/reproductive health; (3) health, nutrition, water and

11 sanitation programs, and related education programs,

12 which directly address the needs of mothers and children;

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

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

15 oral rehydration programs: Provided further, That none of

16 the funds appropriated under this heading may be made

17 available for nonproject assistance, except that funds may

18 be made available for such assistance for ongoing health

19 activities: Provided further, That of the funds appropriated

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

21 to funds otherwise available for such purposes, may be

22 used to monitor and provide oversight of child survival,

23 maternal and family planning/reproductive health, and in24 fectious disease programs: Provided further, That the fol25 lowing amounts should be allocated as follows:
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1 $324,000,000 for child survival and maternal health;

2 $27,000,000 for vulnerable children; $840,830,000 for

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

4 $368,500,000 for family planning/reproductive health; and

5 $120,000,000 for UNICEF: Provided further, That of the

6 funds appropriated under this heading, and in addition to

7 funds allocated under the previous proviso, not less than

8 $400,000,000 shall be made available, not withstanding

9 any other provision of law, except the provisions of section

10 202(d)(4) of Public Law 108–25, for a United States con11 tribution to the Global Fund to Fight AIDS, Tuberculosis

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

13 at the minimum rate necessary to make timely payment

14 for projects and activities: Provided further, That of the

15 funds appropriated and allocated for HIV/AIDS under

16 this heading, not less than $15,000,000 should be made

17 available as a contribution to the International AIDS Vac18 cine Initiative; not more than $6,326,000 may be available

19 for administrative expenses of the Office of the Coordi20 nator of United States Government Activities to Combat

21 HIV/AIDS Globally (the ‘‘Coordinator’’); and not more

22 than $50,000,000 may be made available under the au23 thority contained in section 1(f)(2)(A)(iii) of the State De24 partment Basic Authorities Act of 1956: Provided further,

25 That no United States contribution to the Global Fund
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1 may cause the total amount of United States Government

2 contributions to the Global Fund to exceed one-half of the

3 total amount of funds contributed to the Global Fund

4 from all other sources: Provided further, That if, by June

5 30, 2004, the application of the previous proviso prevents

6 a contribution of the full amount allocated for the Global

7 Fund, the amount that cannot be made available for the

8 Global Fund may be made available by the Coordinator,

9 through relevant executive branch agencies, for activities

10 to combat HIV/AIDS, tuberculosis, or malaria, subject to

11 prior consultation with the Committees on Appropriations:

12 Provided further, That in carrying out the duties specified

13 in section 1(f)(2)(B)(ii)(VII) of the State Department

14 Basic Authorities Act of 1956, the Coordinator shall en15 sure that assistance is provided for activities in not fewer

16 than 15 countries, at least one of which shall not be in

17 Africa or the Caribbean region: Provided further, That of

18 the funds appropriated under this heading, up to

19 $60,000,000 may be made available for a United States

20 contribution to the Vaccine Fund, and up to $6,000,000

21 may be transferred to and merged with funds appropriated

22 by this Act under the heading ‘‘Operating Expenses of the

23 United States Agency for International Development’’ for

24 costs directly related to international health, but funds

25 made available for such costs may not be derived from
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1 amounts made available for contribution under the pre2 ceding provisos: Provided further, That notwithstanding

3 any other provision of this Act, funds appropriated under

4 this heading that are available for child survival and

5 health programs, shall be apportioned to the Office of the

6 Coordinator, or the United States Agency for Inter7 national Development, and the authority of sections

8 632(a) or 632(b) of the Foreign Assistance Act of 1961,

9 or any comparable provision of law, may not be used to

10 transfer or allocate any part of such funds to the Depart11 ment of Health and Human Services including any office

12 of that agency, except that the authority of those sections

13 may be used to transfer or allocate up to $35,000,000 of

14 such funds to the Centers for Disease Control and Preven15 tion: Provided further, That none of the funds made avail16 able in this Act nor any unobligated balances from prior

17 appropriations may be made available to any organization

18 or program which, as determined by the President of the

19 United States, supports or participates in the manage20 ment of a program of coercive abortion or involuntary

21 sterilization: Provided further, That none of the funds

22 made available under this Act may be used to pay for the

23 performance of abortion as a method of family planning

24 or to motivate or coerce any person to practice abortions:

25 Provided further, That none of the funds made available
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1 under this Act may be used to lobby for or against abor2 tion: Provided further, That in order to reduce reliance on

3 abortion in developing nations, funds shall be available

4 only to voluntary family planning projects which offer, ei5 ther directly or through referral to, or information about

6 access to, a broad range of family planning methods and

7 services, and that any such voluntary family planning

8 project shall meet the following requirements: (1) service

9 providers or referral agents in the project shall not imple10 ment or be subject to quotas, or other numerical targets,

11 of total number of births, number of family planning ac12 ceptors, or acceptors of a particular method of family

13 planning (this provision shall not be construed to include

14 the use of quantitative estimates or indicators for budg15 eting and planning purposes); (2) the project shall not in16 clude payment of incentives, bribes, gratuities, or financial

17 reward to: (A) an individual in exchange for becoming a

18 family planning acceptor; or (B) program personnel for

19 achieving a numerical target or quota of total number of

20 births, number of family planning acceptors, or acceptors

21 of a particular method of family planning; (3) the project

22 shall not deny any right or benefit, including the right of

23 access to participate in any program of general welfare

24 or the right of access to health care, as a consequence

25 of any individual’s decision not to accept family planning
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1 services; (4) the project shall provide family planning ac2 ceptors comprehensible information on the health benefits

3 and risks of the method chosen, including those conditions

4 that might render the use of the method inadvisable and

5 those adverse side effects known to be consequent to the

6 use of the method; and (5) the project shall ensure that

7 experimental contraceptive drugs and devices and medical

8 procedures are provided only in the context of a scientific

9 study in which participants are advised of potential risks

10 and benefits; and, not less than 60 days after the date

11 on which the Administrator of the United States Agency

12 for International Development determines that there has

13 been a violation of the requirements contained in para14 graph (1), (2), (3), or (5) of this proviso, or a pattern

15 or practice of violations of the requirements contained in

16 paragraph (4) of this proviso, the Administrator shall sub17 mit to the Committees on Appropriations a report con18 taining a description of such violation and the corrective

19 action taken by the Agency: Provided further, That in

20 awarding grants for natural family planning under section

21 104 of the Foreign Assistance Act of 1961 no applicant

22 shall be discriminated against because of such applicant’s

23 religious or conscientious commitment to offer only nat24 ural family planning; and, additionally, all such applicants

25 shall comply with the requirements of the previous proviso:
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1 Provided further, That for purposes of this or any other

2 Act authorizing or appropriating funds for foreign oper3 ations, export financing, and related programs, the term

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

5 shall not be construed to prohibit the provision, consistent

6 with local law, of information or counseling about all preg7 nancy options: Provided further, That nothing in this para8 graph shall be construed to alter any existing statutory

9 prohibitions against abortion under section 104 of the

10 Foreign Assistance Act of 1961: Provided further, That

11 information provided about the use of condoms as part

12 of projects or activities that are funded from accounts ap13 propriated by this Act shall be medically accurate and

14 shall include the public health benefits and failure rates

15 of such use.

16 DEVELOPMENT ASSISTANCE

17 For necessary expenses of the United States Agency

18 for International Development to carry out the provisions

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

20 part I of the Foreign Assistance Act of 1961,

21 $1,317,000,000, of which up to $50,000,000 may remain

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

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

24 are managed by or allocated to the United States Agency

25 for International Development’s Global Development Sec26 retariat, may be made available except through the regular
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1 notification procedures of the Committees on Appropria2 tions: Provided further, That $194,000,000 should be allo3 cated for trade capacity building: Provided further, That

4 $250,000,000 should be allocated for basic education: Pro5 vided further, That of the funds appropriated under this

6 heading and managed by the United States Agency for

7 International Development Bureau of Democracy, Con8 flict, and Humanitarian Assistance, not less than

9 $11,000,000 shall be made available only for programs to

10 improve women’s leadership capacity in recipient coun11 tries: Provided further, That such funds may not be made

12 available for construction: Provided further, That of the

13 funds appropriated under this heading that are made

14 available for assistance programs for displaced and or15 phaned children and victims of war, not to exceed

16 $32,500, in addition to funds otherwise available for such

17 purposes, may be used to monitor and provide oversight

18 of such programs.

19 INTERNATIONAL DISASTER AND FAMINE ASSISTANCE

20 For necessary expenses of the United States Agency

21 for International Development to carry out the provisions

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

23 amended for international disaster relief, rehabilitation,

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

25 available until expended.
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1 In addition, for necessary expenses of the United

2 States Agency for International Development for assist3 ance for famine prevention and relief, including for mitiga4 tion of the effects of famine, $80,000,000, to remain avail5 able until expended: Provided, That such funds shall be

6 made available utilizing the general authorities of section

7 491 of the Foreign Assistance Act of 1961, and shall be

8 in addition to amounts otherwise available for such pur9 poses: Provided further, That funds appropriated by this

10 paragraph shall be available for obligation subject to prior

11 consultation with the Committees on Appropriations.

12 TRANSITION INITIATIVES

13 For necessary expenses of the United States Agency

14 for International Development for international disaster

15 rehabilitation and reconstruction assistance pursuant to

16 section 491 of the Foreign Assistance Act of 1961,

17 $55,000,000, to remain available until expended, to sup18 port transition to democracy and to long-term develop19 ment of countries in crisis: Provided, That such support

20 may include assistance to develop, strengthen, or preserve

21 democratic institutions and processes, revitalize basic in22 frastructure, and foster the peaceful resolution of conflict:

23 Provided further, That the United States Agency for Inter24 national Development shall submit a report to the Com25 mittees on Appropriations at least 5 days prior to begin26 ning a new program of assistance.
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1 DEVELOPMENT CREDIT AUTHORITY

2 (INCLUDING TRANSFER OF FUNDS)

3 For the cost of direct loans and loan guarantees pro4 vided by the United States Agency for International De5 velopment, as authorized by sections 108 and 635 of the

6 Foreign Assistance Act of 1961, funds may be derived by

7 transfer from funds appropriated by this Act to carry out

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

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

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

11 made available only for micro and small enterprise pro12 grams, urban programs, and other programs which fur13 ther the purposes of part I of the Act: Provided further,

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

15 Congressional Budget Act of 1974: Provided further, That

16 the provisions of section 107A(d) (relating to general pro17 visions applicable to the Development Credit Authority)

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

19 section 306 of H.R. 1486 as reported by the House Com20 mittee on International Relations on May 9, 1997, shall

21 be applicable to direct loans and loan guarantees provided

22 under this heading. In addition, for administrative ex23 penses to carry out credit programs administered by the

24 United States Agency for International Development,

25 $8,000,000, which may be transferred to and merged with

26 the appropriation for Operating Expenses of the United
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1 States Agency for International Development: Provided

2 further, That funds made available under this heading

3 shall remain available until September 30, 2007.

4 PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND

5 DISABILITY FUND

6 For payment to the ‘‘Foreign Service Retirement and

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

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

9 OPERATING EXPENSES OF THE UNITED STATES AGENCY

10 FOR INTERNATIONAL DEVELOPMENT

11 (INCLUDING TRANSFER OF FUNDS)

12 For necessary expenses to carry out the provisions

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

14 $604,100,000, of which $30,000,000 may remain avail15 able until September 30, 2005: Provided, That none of

16 the funds appropriated under this heading and under the

17 heading ‘‘Capital Investment Fund’’ may be made avail18 able to finance the construction (including architect and

19 engineering services), purchase, or long term lease of of20 fices for use by the United States Agency for International

21 Development, unless the Administrator has identified such

22 proposed construction (including architect and engineering

23 services), purchase, or long term lease of offices in a re24 port submitted to the Committees on Appropriations at

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

26 such purposes: Provided further, That the previous proviso
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1 shall not apply where the total cost of construction (in2 cluding architect and engineering services), purchase, or

3 long term lease of offices does not exceed $1,000,000: Pro4 vided further, That in addition not to exceed $15,000,000

5 may be derived by transfer from the ‘‘Iraq Relief and Re6 construction Fund’’ (Public Law 108–11) to support the

7 United States Agency for International Development mis8 sion in Iraq: Provided further, That none of the funds in

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

10 the United States Agency for International Development

11 without the prior written notification of the Committees

12 on Appropriations: Provided further, That the authority of

13 sections 610 and 109 of the Foreign Assistance Act of

14 1961 may be exercised by the Secretary of State to trans15 fer funds appropriated to carry out chapter 1 of such Act

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

17 International Development’’ in accordance with the provi18 sions of those sections.

19 CAPITAL INVESTMENT FUND

20 For necessary expenses for overseas construction and

21 related costs, and for the procurement and enhancement

22 of information technology and related capital investments

23 of the United States Agency for International Develop24 ment, pursuant to section 667 of the Foreign Assistance

25 Act of 1961, $49,300,000, to remain available until ex26 pended: Provided, That this amount is in addition to funds
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1 otherwise available for such purposes: Provided further,

2 That the Administrator of the United States Agency for

3 International Development shall assess fair and reasonable

4 rental payments for the use of space by employees of other

5 United States Government agencies in buildings con6 structed using funds appropriated under this heading, and

7 such rental payments shall be deposited into this account

8 as an offsetting collection: Provided further, That the rent9 al payments collected pursuant to the previous proviso and

10 deposited as an offsetting collection shall be available for

11 obligation only pursuant to the regular notification proce12 dures of the Committees on Appropriations: Provided fur13 ther, That the assignment of United States Government

14 employees or contractors to space in buildings constructed

15 using funds appropriated under this heading shall be sub16 ject to the concurrence of the Administrator of the United

17 States Agency for International Development: Provided

18 further, That funds appropriated under this heading shall

19 be available for obligation only pursuant to the regular

20 notification procedures of the Committees on Appropria21 tions.

22 OPERATING EXPENSES OF THE UNITED STATES AGENCY

23 FOR INTERNATIONAL DEVELOPMENT OFFICE OF IN24 SPECTOR GENERAL

25 For necessary expenses to carry out the provisions

26 of section 667 of the Foreign Assistance Act of 1961,
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1 $35,000,000, to remain available until September 30,

2 2005, which sum shall be available for the Office of the

3 Inspector General of the United States Agency for Inter4 national Development.

5 OTHER BILATERAL ECONOMIC ASSISTANCE

6 ECONOMIC SUPPORT FUND

7 For necessary expenses to carry out the provisions

8 of chapter 4 of part II, $2,240,500,000 to remain avail9 able until September 30, 2005: Provided, That of the

10 funds appropriated under this heading, not less than

11 $480,000,000 shall be available only for Israel, which sum

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

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

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

15 shall be available only for Egypt, which sum shall be pro16 vided on a grant basis, and of which sum cash transfer

17 assistance shall be provided with the understanding that

18 Egypt will undertake significant economic reforms which

19 are additional to those which were undertaken in previous

20 fiscal years: Provided further, That in exercising the au21 thority to provide cash transfer assistance for Israel, the

22 President shall ensure that the level of such assistance

23 does not cause an adverse impact on the total level of non24 military exports from the United States to such country

25 and that Israel enters into a side letter agreement in an
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1 amount proportional to the fiscal year 1999 agreement:

2 Provided further, That of the funds appropriated under

3 this heading, not less than $250,000,000 should be made

4 available only for assistance for Jordan: Provided further,

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

6 under this heading should be made available for Cyprus

7 to be used only for scholarships, administrative support

8 of the scholarship program, bicommunal projects, and

9 measures aimed at reunification of the island and designed

10 to reduce tensions and promote peace and cooperation be11 tween the two communities on Cyprus: Provided further,

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

13 under this heading should be made available for assistance

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

15 available only for American educational institutions for

16 scholarships and other programs: Provided further, That

17 notwithstanding section 534(a) of this Act, funds appro18 priated under this heading that are made available for as19 sistance for the Central Government of Lebanon shall be

20 subject to the regular notification procedures of the Com21 mittees on Appropriations: Provided further, That not to

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

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

24 as defined in section 502 of the Congressional Budget Act

25 of 1974, of modifying direct loans and guarantees for
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1 Pakistan: Provided further, That not to exceed

2 $67,000,000 shall be available to the Department of State

3 Office of Overseas Buildings Operation for construction

4 of United States Agency for International Development

5 facilities in Mali, Guinea, Cambodia, and Georgia: Pro6 vided further, That funds appropriated under this heading

7 shall be made available for administrative costs of the

8 United States Agency for International Development to

9 provide adequate security, carry out programs in Afghani10 stan, and implement regional programs in Asia and the

11 Near East, including the Middle East Partnership Initia12 tive, in addition to amounts otherwise available for such

13 purposes: Provided further, That with respect to funds ap14 propriated under this heading in this Act or prior Acts

15 making appropriations for foreign operations, export fi16 nancing, and related programs, the responsibility for pol17 icy decisions and justifications for the use of such funds,

18 including whether there will be a program for a country

19 that uses those funds and the amount of each such pro20 gram, shall be the responsibility of the Secretary of State

21 and the Deputy Secretary of State and this responsibility

22 shall not be delegated.

23 INTERNATIONAL FUND FOR IRELAND

24 For necessary expenses to carry out the provisions

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

26 1961, $19,600,000, which shall be available for the United
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1 States contribution to the International Fund for Ireland

2 and shall be made available in accordance with the provi3 sions of the Anglo-Irish Agreement Support Act of 1986

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

5 be expended at the minimum rate necessary to make time6 ly payment for projects and activities: Provided further,

7 That funds made available under this heading shall re8 main available until September 30, 2005.

9 ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC

10 STATES

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

12 of the Foreign Assistance Act of 1961 and the Support

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

14 $452,000,000, to remain available until September 30,

15 2005, which shall be available, notwithstanding any other

16 provision of law, for assistance and for related programs

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

18 funds appropriated under this heading shall be considered

19 to be economic assistance under the Foreign Assistance

20 Act of 1961 for purposes of making available the adminis21 trative authorities contained in that Act for the use of eco22 nomic assistance: Provided further, That funds made avail23 able for assistance for Kosovo from funds appropriated

24 under this heading and under the headings ‘‘Economic

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

26 Law Enforcement’’ should not exceed 15 percent of the
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1 total resources pledged by all donors for calendar year

2 2004 for assistance for Kosovo as of March 31, 2004.

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

4 appropriations Acts that are or have been made available

5 for an Enterprise Fund may be deposited by such Fund

6 in interest-bearing accounts prior to the Fund’s disburse7 ment of such funds for program purposes. The Fund may

8 retain for such program purposes any interest earned on

9 such deposits without returning such interest to the Treas10 ury of the United States and without further appropria11 tion by the Congress. Funds made available for Enterprise

12 Funds shall be expended at the minimum rate necessary

13 to make timely payment for projects and activities.

14 (c) With regard to funds appropriated under this

15 heading for the economic revitalization program in Bosnia

16 and Herzegovina, and local currencies generated by such

17 funds (including the conversion of funds appropriated

18 under this heading into currency used by Bosnia and

19 Herzegovina as local currency and local currency returned

20 or repaid under such program) the Administrator of the

21 United States Agency for International Development shall

22 provide written approval for grants and loans prior to the

23 obligation and expenditure of funds for such purposes, and

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

25 to any lending facility or grantee.
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1 (d) The provisions of section 529 of this Act shall

2 apply to funds made available under subsection (c) and

3 to funds appropriated under this heading: Provided, That

4 notwithstanding any provision of this or any other Act,

5 including provisions in this subsection regarding the appli6 cation of section 529 of this Act, local currencies gen7 erated by, or converted from, funds appropriated by this

8 Act and by previous appropriations Acts and made avail9 able for the economic revitalization program in Bosnia

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

11 carry out the provisions of the Foreign Assistance Act of

12 1961 and the Support for East European Democracy

13 (SEED) Act of 1989.

14 (e) The President is authorized to withhold funds ap15 propriated under this heading made available for economic

16 revitalization programs in Bosnia and Herzegovina, if he

17 determines and certifies to the Committees on Appropria18 tions that the Federation of Bosnia and Herzegovina has

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

20 Framework Agreement for Peace in Bosnia and

21 Herzegovina concerning the withdrawal of foreign forces,

22 and that intelligence cooperation on training, investiga23 tions, and related activities between state sponsors of ter24 rorism and terrorist organizations and Bosnian officials

25 has not been terminated.
25

•HR 2800 EH

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-
26

•HR 2800 EH

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
27

•HR 2800 EH

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
28

•HR 2800 EH

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
29

•HR 2800 EH

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
30

•HR 2800 EH

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-
31

•HR 2800 EH

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:
32

•HR 2800 EH

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
33

•HR 2800 EH

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-
34

•HR 2800 EH

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
35

•HR 2800 EH

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,
36

•HR 2800 EH

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-
37

•HR 2800 EH

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
38

•HR 2800 EH

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:
39

•HR 2800 EH

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,

24 not to accept new market rate loans from the inter25 national financial institution receiving debt repay-
40

•HR 2800 EH

1 ment as a result of such disbursement, other than

2 loans made by such institution to export-oriented

3 commercial projects that generate foreign exchange

4 which are generally referred to as ‘‘enclave’’ loans;

5 and

6 (2) have documented and demonstrated their

7 commitment to redirect their budgetary resources

8 from international debt repayments to programs to

9 alleviate poverty and promote economic growth that

10 are additional to or expand upon those previously

11 available for such purposes: Provided further, That

12 any limitation of subsection (e) of section 411 of the

13 Agricultural Trade Development and Assistance Act

14 of 1954 shall not apply to funds appropriated under

15 this heading: Provided further, That none of the

16 funds made available under this heading in this or

17 any other appropriations Acts shall be made avail18 able for Sudan or Burma unless the Secretary of

19 Treasury determines and notifies the Committees on

20 Appropriations that a democratically elected govern21 ment has taken office.
41

•HR 2800 EH

1 TITLE III—MILITARY ASSISTANCE

2 FUNDS APPROPRIATED TO THE PRESIDENT

3 INTERNATIONAL MILITARY EDUCATION AND TRAINING

4 For necessary expenses to carry out the provisions

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

6 $91,700,000 (reduced by $600,000), of which up to

7 $3,000,000 may remain available until expended: Pro8 vided, That the civilian personnel for whom military edu9 cation and training may be provided under this heading

10 may include civilians who are not members of a govern11 ment whose participation would contribute to improved

12 civil-military relations, civilian control of the military, or

13 respect for human rights: Provided further, That funds ap14 propriated under this heading for military education and

15 training for Guatemala may only be available for expanded

16 international military education and training and funds

17 made available for Nigeria and Guatemala may only be

18 provided through the regular notification procedures of the

19 Committees on Appropriations.

20 FOREIGN MILITARY FINANCING PROGRAM

21 For expenses necessary for grants to enable the

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

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

24 of the funds appropriated under this heading, not less

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

26 Israel, and not less than $1,300,000,000 shall be made
42

•HR 2800 EH

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

2 the funds appropriated by this paragraph for Israel shall

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

4 Provided further, That to the extent that the Government

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

6 grants made available for Israel by this paragraph shall,

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

8 for advanced weapons systems, of which not less than

9 $568,000,000 shall be available for the procurement in

10 Israel of defense articles and defense services, including

11 research and development: Provided further, That funds

12 appropriated by this paragraph shall be nonrepayable not13 withstanding any requirement in section 23 of the Arms

14 Export Control Act: Provided further, That funds made

15 available under this paragraph shall be obligated upon ap16 portionment in accordance with paragraph (5)(C) of title

17 31, United States Code, section 1501(a).

18 None of the funds made available under this heading

19 shall be available to finance the procurement of defense

20 articles, defense services, or design and construction serv21 ices that are not sold by the United States Government

22 under the Arms Export Control Act unless the foreign

23 country proposing to make such procurements has first

24 signed an agreement with the United States Government

25 specifying the conditions under which such procurements
43

•HR 2800 EH

1 may be financed with such funds: Provided, That all coun2 try and funding level increases in allocations shall be sub3 mitted through the regular notification procedures of sec4 tion 515 of this Act: Provided further, That none of the

5 funds appropriated under this heading shall be available

6 for assistance for Indonesia, Guatemala, Sudan, and Libe7 ria: Provided further, That funds made available under

8 this heading may be used, notwithstanding any other pro9 vision of law, for demining, the clearance of unexploded

10 ordnance, and related activities, and may include activities

11 implemented through nongovernmental and international

12 organizations: Provided further, That only those countries

13 for which assistance was justified for the ‘‘Foreign Mili14 tary Sales Financing Program’’ in the fiscal year 1989

15 congressional presentation for security assistance pro16 grams may utilize funds made available under this heading

17 for procurement of defense articles, defense services or de18 sign and construction services that are not sold by the

19 United States Government under the Arms Export Con20 trol Act: Provided further, That funds appropriated under

21 this heading shall be expended at the minimum rate nec22 essary to make timely payment for defense articles and

23 services: Provided further, That not more than

24 $40,500,000 of the funds appropriated under this heading

25 may be obligated for necessary expenses, including the
44

•HR 2800 EH

1 purchase of passenger motor vehicles for replacement only

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

3 of administering military assistance and sales: Provided

4 further, That not more than $361,000,000 of funds real5 ized pursuant to section 21(e)(1)(A) of the Arms Export

6 Control Act may be obligated for expenses incurred by the

7 Department of Defense during fiscal year 2004 pursuant

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

9 that this limitation may be exceeded only through the reg10 ular notification procedures of the Committees on Appro11 priations: Provided further, That foreign military financing

12 program funds estimated to be outlayed for Egypt during

13 fiscal year 2004 shall be transferred to an interest bearing

14 account for Egypt in the Federal Reserve Bank of New

15 York within 30 days of enactment of this Act.

16 PEACEKEEPING OPERATIONS

17 For necessary expenses to carry out the provisions

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

19 $85,000,000: Provided, That none of the funds appro20 priated under this heading shall be obligated or expended

21 except as provided through the regular notification proce22 dures of the Committees on Appropriations.
45

•HR 2800 EH

1 TITLE IV—MULTILATERAL ECONOMIC

2 ASSISTANCE

3 FUNDS APPROPRIATED TO THE PRESIDENT

4 INTERNATIONAL FINANCIAL INSTITUTIONS

5 GLOBAL ENVIRONMENT FACILITY

6 For the United States contribution for the Global En7 vironment Facility, $107,500,000, to the International

8 Bank for Reconstruction and Development as trustee for

9 the Global Environment Facility, by the Secretary of the

10 Treasury, to remain available until expended.

11 CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT

12 ASSOCIATION

13 For payment to the International Development Asso14 ciation by the Secretary of the Treasury, $850,000,000,

15 to remain available until expended.

16 CONTRIBUTION TO THE MULTILATERAL INVESTMENT

17 GUARANTEE AGENCY

18 For payment to the Multilateral Investment Guar19 antee Agency by the Secretary of the Treasury,

20 $4,001,672, for the United States paid-in share of the in21 crease in capital stock, to remain available until expended.

22 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

23 The United States Governor of the Multilateral In24 vestment Guarantee Agency may subscribe without fiscal

25 year limitation for the callable capital portion of the
46

•HR 2800 EH

1 United States share of such capital stock in an amount

2 not to exceed $16,339,982.

3 CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS

4 MULTILATERAL INVESTMENT FUND

5 For payment to the Enterprise for the Americas Mul6 tilateral Investment Fund by the Secretary of the Treas7 ury, for the United States contribution to the fund,

8 $25,000,000, to remain available until expended.

9 CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND

10 For the United States contribution by the Secretary

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

12 Development Fund, as authorized by the Asian Develop13 ment Bank Act, as amended, $151,921,405, to remain

14 available until expended.

15 CONTRIBUTION TO THE AFRICAN DEVELOPMENT BANK

16 For payment to the African Development Bank by

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

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

19 remain available until expended.

20 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

21 The United States Governor of the African Develop22 ment Bank may subscribe without fiscal year limitation

23 for the callable capital portion of the United States share

24 of such capital stock in an amount not to exceed

25 $79,609,817.
47

•HR 2800 EH

1 CONTRIBUTION TO THE AFRICAN DEVELOPMENT FUND

2 For the United States contribution by the Secretary

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

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

5 until expended.

6 CONTRIBUTION TO THE EUROPEAN BANK FOR

7 RECONSTRUCTION AND DEVELOPMENT

8 For payment to the European Bank for Reconstruc9 tion and Development by the Secretary of the Treasury,

10 $35,431,111 for the United States share of the paid-in

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

12 until expended.

13 LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

14 The United States Governor of the European Bank

15 for Reconstruction and Development may subscribe with16 out fiscal year limitation to the callable capital portion of

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

18 not to exceed $122,085,497.

19 CONTRIBUTION TO THE INTERNATIONAL FUND FOR

20 AGRICULTURAL DEVELOPMENT

21 For the United States contribution by the Secretary

22 of the Treasury to increase the resources of the Inter23 national Fund for Agricultural Development,

24 $15,004,042, to remain available until expended.
48

•HR 2800 EH

1 INTERNATIONAL ORGANIZATIONS AND PROGRAMS

2 For necessary expenses to carry out the provisions

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

4 of section 2 of the United Nations Environment Program

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

6 none of the funds appropriated under this heading may

7 be made available to the Korean Peninsula Energy Devel8 opment Organization (KEDO) or the International Atomic

9 Energy Agency (IAEA).

10 TITLE V—GENERAL PROVISIONS

11 COMPENSATION FOR UNITED STATES EXECUTIVE

12 DIRECTORS TO INTERNATIONAL FINANCIAL INSTITUTIONS

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

14 be made as payment to any international financial institu15 tion while the United States Executive Director to such

16 institution is compensated by the institution at a rate

17 which, together with whatever compensation such Director

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

19 provided for an individual occupying a position at level IV

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

21 United States Code, or while any alternate United States

22 Director to such institution is compensated by the institu23 tion at a rate in excess of the rate provided for an indi24 vidual occupying a position at level V of the Executive
49

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1 Schedule under section 5316 of title 5, United States

2 Code.

3 (b) For purposes of this section, ‘‘international finan4 cial institutions’’ are: the International Bank for Recon5 struction and Development, the Inter-American Develop6 ment Bank, the Asian Development Bank, the Asian De7 velopment Fund, the African Development Bank, the Afri8 can Development Fund, the International Monetary Fund,

9 the North American Development Bank, and the Euro10 pean Bank for Reconstruction and Development.

11 PRIVATE AND VOLUNTARY ORGANIZATIONS

12 SEC. 502. None of the funds appropriated or other13 wise made available by this Act for development assistance

14 may be made available to any United States private and

15 voluntary organization, except any cooperative develop16 ment organization, which obtains less than 20 percent of

17 its total annual funding for international activities from

18 sources other than the United States Government: Pro19 vided, That the Administrator of the United States Agen20 cy for International Development, after informing the

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

22 basis, waive the restriction contained in this subsection,

23 after taking into account the effectiveness of the overseas

24 development activities of the organization, its level of vol25 unteer support, its financial viability and stability, and the
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1 degree of its dependence for its financial support on the

2 agency.

3 LIMITATION ON RESIDENCE EXPENSES

4 SEC. 503. Of the funds appropriated or made avail5 able pursuant to this Act, not to exceed $100,500 shall

6 be for official residence expenses of the United States

7 Agency for International Development during the current

8 fiscal year: Provided, That appropriate steps shall be

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

10 United States-owned foreign currencies are utilized in lieu

11 of dollars.

12 LIMITATION ON EXPENSES

13 SEC. 504. Of the funds appropriated or made avail14 able pursuant to this Act, not to exceed $5,000 shall be

15 for entertainment expenses of the United States Agency

16 for International Development during the current fiscal

17 year.

18 LIMITATION ON REPRESENTATIONAL ALLOWANCES

19 SEC. 505. Of the funds appropriated or made avail20 able pursuant to this Act, not to exceed $125,000 shall

21 be available for representation allowances for the United

22 States Agency for International Development during the

23 current fiscal year: Provided, That appropriate steps shall

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

25 United States-owned foreign currencies are utilized in lieu

26 of dollars: Provided further, That of the funds made avail-
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1 able by this Act for general costs of administering military

2 assistance and sales under the heading ‘‘Foreign Military

3 Financing Program’’, not to exceed $2,000 shall be avail4 able for entertainment expenses and not to exceed

5 $125,000 shall be available for representation allowances:

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

7 Act under the heading ‘‘International Military Education

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

9 for entertainment allowances: Provided further, That of

10 the funds made available by this Act for the Inter-Amer11 ican Foundation, not to exceed $2,000 shall be available

12 for entertainment and representation allowances: Provided

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

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

15 available for entertainment expenses: Provided further,

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

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

18 $2,000 shall be available for representation and entertain19 ment allowances.

20 PROHIBITION ON TAXATION OF UNITED STATES

21 ASSISTANCE

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

23 the funds appropriated by this Act may be made available

24 to provide assistance for a foreign country under a new

25 bilateral agreement governing the terms and conditions

26 under which such assistance is to be provided unless such
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1 agreement includes a provision stating that assistance pro2 vided by the United States shall be exempt from taxation,

3 or reimbursed, by the foreign government, and the Sec4 retary of State shall expeditiously seek to negotiate

5 amendments to existing bilateral agreements, as nec6 essary, to conform with this requirement.

7 (b) REIMBURSEMENT OF FOREIGN TAXES.—An

8 amount equivalent to 200 percent of the total taxes as9 sessed during fiscal year 2004 by a foreign government

10 or entity against commodities financed under United

11 States assistance programs for which funds are appro12 priated by this Act, either directly or through grantees,

13 contractors and subcontractors shall be withheld from ob14 ligation from funds appropriated for assistance for fiscal

15 year 2005 and allocated for the central government of

16 such country and for the West Bank and Gaza Program

17 to the extent that the Secretary of State certifies and re18 ports in writing to the Committees on Appropriations that

19 such taxes have not been reimbursed to the Government

20 of the United States.

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

22 minimis nature shall not be subject to the provisions of

23 subsection (b).

24 (d) REFUND TO THE TREASURY AND REPROGRAM25 MING OF FUNDS.—Of the funds withheld from obligation
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1 for each country or entity pursuant to subsection (b), one2 half may become available for reprogramming for other

3 purposes (pursuant to section 515 of this Act and con4 sistent with the purposes for which such funds were origi5 nally appropriated) and one-half shall be deposited in the

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

7 September 1, 2005, pursuant to the certification required

8 under subsection (b).

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

10 issue rules, regulations, or policy guidance, as appropriate,

11 to implement the prohibition against the taxation of assist12 ance contained in this section.

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

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

15 value added taxes and customs duties imposed on

16 commodities financed with United States assistance

17 for programs for which funds are appropriated by

18 this Act; and

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

20 framework bilateral agreement between the Govern21 ment of the United States and the government of

22 the country receiving assistance that describes the

23 privileges and immunities applicable to United

24 States foreign assistance for such country generally,

25 or an individual agreement between the Government
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1 of the United States and such government that de2 scribes, among other things, the treatment for tax

3 purposes that will be accorded the United States as4 sistance provided under that agreement.

5 PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN

6 COUNTRIES

7 SEC. 507. None of the funds appropriated or other8 wise made available pursuant to this Act shall be obligated

9 or expended to finance directly any assistance or repara10 tions to Cuba, Libya, North Korea, Iran, or Syria: Pro11 vided, That for purposes of this section, the prohibition

12 on obligations or expenditures shall include direct loans,

13 credits, insurance and guarantees of the Export-Import

14 Bank or its agents.

15 MILITARY COUPS

16 SEC. 508. None of the funds appropriated or other17 wise made available pursuant to this Act shall be obligated

18 or expended to finance directly any assistance to the gov19 ernment of any country whose duly elected head of govern20 ment is deposed by decree or military coup: Provided, That

21 assistance may be resumed to such government if the

22 President determines and certifies to the Committees on

23 Appropriations that subsequent to the termination of as24 sistance a democratically elected government has taken of25 fice: Provided further, That the provisions of this section

26 shall not apply to assistance to promote democratic elec-
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1 tions or public participation in democratic processes: Pro2 vided further, That funds made available pursuant to the

3 previous provisos shall be subject to the regular notifica4 tion procedures of the Committees on Appropriations.

5 TRANSFERS

6 SEC. 509. (a)(1) LIMITATION ON TRANSFERS BE7 TWEEN AGENCIES.—None of the funds made available by

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

9 or instrumentality of the United States Government, ex10 cept pursuant to a transfer made by, or transfer authority

11 provided in, this Act or any other appropriation Act.

12 (2) Notwithstanding paragraph (1), in addition to

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

14 funds appropriated by this Act to carry out the purposes

15 of the Foreign Assistance Act of 1961 may be allocated

16 or transferred to agencies of the United States Govern17 ment pursuant to the provisions of sections 109, 610, and

18 632 of the Foreign Assistance Act of 1961.

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

20 be obligated under an appropriation account to which they

21 were not appropriated, except for transfers specifically

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

23 five days prior to the exercise of any authority contained

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

25 consults with and provides a written policy justification
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1 to the Committees on Appropriations of the House of Rep2 resentatives and the Senate.

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

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

5 between the United States Agency for International Devel6 opment and another agency of the United States Govern7 ment under the authority of section 632(a) of the Foreign

8 Assistance Act of 1961 or any comparable provision of

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

10 General for the agency receiving the transfer or allocation

11 of such funds shall perform periodic program and financial

12 audits of the use of such funds: Provided, That funds

13 transferred under such authority may be made available

14 for the cost of such audits.

15 COMMERCIAL LEASING OF DEFENSE ARTICLES

16 SEC. 510. Notwithstanding any other provision of

17 law, and subject to the regular notification procedures of

18 the Committees on Appropriations, the authority of sec19 tion 23(a) of the Arms Export Control Act may be used

20 to provide financing to Israel, Egypt and NATO and

21 major non-NATO allies for the procurement by leasing

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

23 articles from United States commercial suppliers, not in24 cluding Major Defense Equipment (other than helicopters

25 and other types of aircraft having possible civilian applica26 tion), if the President determines that there are compel-
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1 ling foreign policy or national security reasons for those

2 defense articles being provided by commercial lease rather

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

4 AVAILABILITY OF FUNDS

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

6 this Act shall remain available for obligation after the ex7 piration of the current fiscal year unless expressly so pro8 vided in this Act: Provided, That funds appropriated for

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

10 667, chapter 4 of part II of the Foreign Assistance Act

11 of 1961, as amended, section 23 of the Arms Export Con12 trol Act, and funds provided under the heading ‘‘Assist13 ance for Eastern Europe and the Baltic States’’, shall re14 main available for an additional four years from the date

15 on which the availability of such funds would otherwise

16 have expired, if such funds are initially obligated before

17 the expiration of their respective periods of availability

18 contained in this Act: Provided further, That, notwith19 standing any other provision of this Act, any funds made

20 available for the purposes of chapter 1 of part I and chap21 ter 4 of part II of the Foreign Assistance Act of 1961

22 which are allocated or obligated for cash disbursements

23 in order to address balance of payments or economic policy

24 reform objectives, shall remain available until expended.
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1 LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT

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

3 this Act shall be used to furnish assistance to the govern4 ment of any country which is in default during a period

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

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

7 government of such country by the United States pursuant

8 to a program for which funds are appropriated under this

9 Act unless the President determines, following consulta10 tions with the Committees on Appropriations, that assist11 ance to such country is in the national interest of the

12 United States.

13 COMMERCE AND TRADE

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

15 made available pursuant to this Act for direct assistance

16 and none of the funds otherwise made available pursuant

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

18 Private Investment Corporation shall be obligated or ex19 pended to finance any loan, any assistance or any other

20 financial commitments for establishing or expanding pro21 duction of any commodity for export by any country other

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

23 in surplus on world markets at the time the resulting pro24 ductive capacity is expected to become operative and if the

25 assistance will cause substantial injury to United States

26 producers of the same, similar, or competing commodity:
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1 Provided, That such prohibition shall not apply to the Ex2 port-Import Bank if in the judgment of its Board of Direc3 tors the benefits to industry and employment in the

4 United States are likely to outweigh the injury to United

5 States producers of the same, similar, or competing com6 modity, and the Chairman of the Board so notifies the

7 Committees on Appropriations.

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

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

10 Assistance Act of 1961 shall be available for any testing

11 or breeding feasibility study, variety improvement or intro12 duction, consultancy, publication, conference, or training

13 in connection with the growth or production in a foreign

14 country of an agricultural commodity for export which

15 would compete with a similar commodity grown or pro16 duced in the United States: Provided, That this subsection

17 shall not prohibit—

18 (1) activities designed to increase food security

19 in developing countries where such activities will not

20 have a significant impact on the export of agricul21 tural commodities of the United States; or

22 (2) research activities intended primarily to

23 benefit American producers.

24 SURPLUS COMMODITIES

25 SEC. 514. The Secretary of the Treasury shall in26 struct the United States Executive Directors of the Inter-
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1 national Bank for Reconstruction and Development, the

2 International Development Association, the International

3 Finance Corporation, the Inter-American Development

4 Bank, the International Monetary Fund, the Asian Devel5 opment Bank, the Inter-American Investment Corpora6 tion, the North American Development Bank, the Euro7 pean Bank for Reconstruction and Development, the Afri8 can Development Bank, and the African Development

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

10 oppose any assistance by these institutions, using funds

11 appropriated or made available pursuant to this Act, for

12 the production or extraction of any commodity or mineral

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

14 assistance will cause substantial injury to United States

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

16 NOTIFICATION REQUIREMENTS

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

18 branch with the necessary administrative flexibility, none

19 of the funds made available under this Act for ‘‘Child Sur20 vival and Health Programs Fund’’, ‘‘Development Assist21 ance’’, ‘‘International Organizations and Programs’’,

22 ‘‘Trade and Development Agency’’, ‘‘International Nar23 cotics Control and Law Enforcement’’, ‘‘Andean

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

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

26 States of the Former Soviet Union’’, ‘‘Economic Support
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1 Fund’’, ‘‘Peacekeeping Operations’’, ‘‘Capital Investment

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

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

4 the United States Agency for International Development

5 Office of Inspector General’’, ‘‘Nonproliferation, Anti-ter6 rorism, Demining and Related Programs’’, ‘‘Millennium

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

8 Financing Program’’, ‘‘International Military Education

9 and Training’’, ‘‘Peace Corps’’, and ‘‘Migration and Ref10 ugee Assistance’’, shall be available for obligation for ac11 tivities, programs, projects, type of materiel assistance,

12 countries, or other operations not justified or in excess of

13 the amount justified to the Committees on Appropriations

14 for obligation under any of these specific headings unless

15 the Committees on Appropriations of both Houses of Con16 gress are previously notified 15 days in advance: Provided,

17 That the President shall not enter into any commitment

18 of funds appropriated for the purposes of section 23 of

19 the Arms Export Control Act for the provision of major

20 defense equipment, other than conventional ammunition,

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

22 missiles, or combat vehicles, not previously justified to

23 Congress or 20 percent in excess of the quantities justified

24 to Congress unless the Committees on Appropriations are

25 notified 15 days in advance of such commitment: Provided
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1 further, That this section shall not apply to any re2 programming for an activity, program, or project for

3 which funds are appropriated under title II of this Act

4 of less than 10 percent of the amount previously justified

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

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

7 That the requirements of this section or any similar provi8 sion of this Act or any other Act, including any prior Act

9 requiring notification in accordance with the regular noti10 fication procedures of the Committees on Appropriations,

11 may be waived if failure to do so would pose a substantial

12 risk to human health or welfare: Provided further, That

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

14 or the appropriate congressional committees, shall be pro15 vided as early as practicable, but in no event later than

16 3 days after taking the action to which such notification

17 requirement was applicable, in the context of the cir18 cumstances necessitating such waiver: Provided further,

19 That any notification provided pursuant to such a waiver

20 shall contain an explanation of the emergency cir21 cumstances.

22 LIMITATION ON AVAILABILITY OF FUNDS FOR

23 INTERNATIONAL ORGANIZATIONS AND PROGRAMS

24 SEC. 516. Subject to the regular notification proce25 dures of the Committees on Appropriations, funds appro26 priated under this Act or any previously enacted Act mak-
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1 ing appropriations for foreign operations, export financ2 ing, and related programs, which are returned or not made

3 available for organizations and programs because of the

4 implementation of section 307(a) of the Foreign Assist5 ance Act of 1961, shall remain available for obligation

6 until September 30, 2005.

7 INDEPENDENT STATES OF THE FORMER SOVIET UNION

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

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

10 Former Soviet Union’’ shall be made available for assist11 ance for a government of an Independent State of the

12 former Soviet Union—

13 (1) unless that government is making progress

14 in implementing comprehensive economic reforms

15 based on market principles, private ownership, re16 spect for commercial contracts, and equitable treat17 ment of foreign private investment; and

18 (2) if that government applies or transfers

19 United States assistance to any entity for the pur20 pose of expropriating or seizing ownership or control

21 of assets, investments, or ventures.

22 Assistance may be furnished without regard to this sub23 section if the President determines that to do so is in the

24 national interest.

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

26 ‘‘Assistance for the Independent States of the Former So-
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1 viet Union’’ shall be made available for assistance for a

2 government of an Independent State of the former Soviet

3 Union if that government directs any action in violation

4 of the territorial integrity or national sovereignty of any

5 other Independent State of the former Soviet Union, such

6 as those violations included in the Helsinki Final Act: Pro7 vided, That such funds may be made available without re8 gard to the restriction in this subsection if the President

9 determines that to do so is in the national security interest

10 of the United States.

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

12 ‘‘Assistance for the Independent States of the Former So13 viet Union’’ shall be made available for any state to en14 hance its military capability: Provided, That this restric15 tion does not apply to demilitarization, demining or non16 proliferation programs.

17 (d) Funds appropriated under the heading ‘‘Assist18 ance for the Independent States of the Former Soviet

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

20 and Ukraine shall be subject to the regular notification

21 procedures of the Committees on Appropriations.

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

23 for the Independent States of the former Soviet Union

24 shall be subject to the provisions of section 117 (relating
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1 to environment and natural resources) of the Foreign As2 sistance Act of 1961.

3 (f) Funds made available for Enterprise Funds shall

4 be expended at the minimum rate necessary to make time5 ly payment for projects and activities.

6 (g) In issuing new task orders, entering into con7 tracts, or making grants, with funds appropriated in this

8 Act or prior appropriations Acts under the heading ‘‘As9 sistance for the Independent States of the Former Soviet

10 Union’’ and under comparable headings in prior appro11 priations Acts, for projects or activities that have as one

12 of their primary purposes the fostering of private sector

13 development, the Coordinator for United States Assistance

14 to the New Independent States and the implementing

15 agency shall encourage the participation of and give sig16 nificant weight to contractors and grantees who propose

17 investing a significant amount of their own resources (in18 cluding volunteer services and in-kind contributions) in

19 such projects and activities.

20 PROHIBITION ON FUNDING FOR ABORTIONS AND

21 INVOLUNTARY STERILIZATION

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

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

24 amended, may be used to pay for the performance of abor25 tions as a method of family planning or to motivate or

26 coerce any person to practice abortions. None of the funds
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1 made available to carry out part I of the Foreign Assist2 ance Act of 1961, as amended, may be used to pay for

3 the performance of involuntary sterilization as a method

4 of family planning or to coerce or provide any financial

5 incentive to any person to undergo sterilizations. None of

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

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

8 for any biomedical research which relates in whole or in

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

10 involuntary sterilization as a means of family planning.

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

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

13 obligated or expended for any country or organization if

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

15 such country or organization would violate any of the

16 above provisions related to abortions and involuntary steri17 lizations.

18 EXPORT FINANCING TRANSFER AUTHORITIES

19 SEC. 519. Not to exceed 5 percent of any appropria20 tion other than for administrative expenses made available

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

22 Act may be transferred between such appropriations for

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

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

25 but no such appropriation, except as otherwise specifically

26 provided, shall be increased by more than 25 percent by
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1 any such transfer: Provided, That the exercise of such au2 thority shall be subject to the regular notification proce3 dures of the Committees on Appropriations.

4 SPECIAL NOTIFICATION REQUIREMENTS

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

6 shall be obligated or expended for Liberia, Sudan,

7 Zimbabwe, the Democratic Republic of the Congo, or

8 Cambodia except as provided through the regular notifica9 tion procedures of the Committees on Appropriations.

10 DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

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

12 project, and activity’’ shall be defined at the appropria13 tions Act account level and shall include all appropriations

14 and authorizations Acts earmarks, ceilings, and limita15 tions with the exception that for the following accounts:

16 Economic Support Fund and Foreign Military Financing

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

18 considered to include country, regional, and central pro19 gram level funding within each such account; for the devel20 opment assistance accounts of the United States Agency

21 for International Development ‘‘program, project, and ac22 tivity’’ shall also be considered to include central, country,

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

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

25 in accordance with a report, to be provided to the Commit26 tees on Appropriations within 30 days of the enactment
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1 of this Act, as required by section 653(a) of the Foreign

2 Assistance Act of 1961.

3 CHILD SURVIVAL AND HEALTH ACTIVITIES

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

5 available by this Act for assistance under the heading

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

7 used to reimburse United States Government agencies,

8 agencies of State governments, institutions of higher

9 learning, and private and voluntary organizations for the

10 full cost of individuals (including for the personal services

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

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

13 International Development for the purpose of carrying out

14 activities under that heading: Provided, That up to

15 $3,500,000 of the funds made available by this Act for

16 assistance under the heading ‘‘Development Assistance’’

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

18 organizations for such costs of such individuals carrying

19 out other development assistance activities: Provided fur20 ther, That funds appropriated by this Act that are made

21 available for child survival activities or disease programs

22 including activities relating to research on, and the preven23 tion, treatment and control of, HIV/AIDS may be made

24 available notwithstanding any other provision of law ex25 cept for the provisions under the heading ‘‘Child Survival

26 and Health Programs Fund’’, section 515 of this Act, and
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1 sections 104(c), 104A, 104B, and 104C of the Foreign

2 Assistance Act of 1961: Provided further, That funds ap3 propriated under titles II and III of this Act may be made

4 available pursuant to section 301 of the Foreign Assist5 ance Act of 1961 if a primary purpose of the assistance

6 is for child survival and related programs.

7 AFGHANISTAN

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

9 III of this Act, not less than $600,000,000 shall be made

10 available for humanitarian, reconstruction, and related as11 sistance for Afghanistan: Provided, That of the funds

12 made available pursuant to this section, not less than

13 $150,000,000 should be from funds appropriated under

14 the heading ‘‘Economic Support Fund’’.

15 NOTIFICATION ON EXCESS DEFENSE EQUIPMENT

16 SEC. 524. Prior to providing excess Department of

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

18 Foreign Assistance Act of 1961, the Department of De19 fense shall notify the Committees on Appropriations to the

20 same extent and under the same conditions as are other

21 committees pursuant to subsection (f) of that section: Pro22 vided, That before issuing a letter of offer to sell excess

23 defense articles under the Arms Export Control Act, the

24 Department of Defense shall notify the Committees on

25 Appropriations in accordance with the regular notification

26 procedures of such Committees if such defense articles are
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1 significant military equipment (as defined in section 47(9)

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

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

4 notification is required elsewhere in this Act for the use

5 of appropriated funds for specific countries that would re6 ceive such excess defense articles: Provided further, That

7 such Committees shall also be informed of the original ac8 quisition cost of such defense articles.

9 USAID OVERSEAS PROGRAM

10 SEC. 525. Funds appropriated by this and subse11 quent appropriations Acts to carry out the provisions of

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

13 funds appropriated under the heading ‘‘Assistance for

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

15 available to employ individuals overseas on a limited ap16 pointment basis pursuant to the authority of sections 308

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

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

19 be used to employ not more than 85 individuals.

20 TIBET

21 SEC. 526. Notwithstanding any other provision of law

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

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

24 of the Foreign Assistance Act of 1961 may be made avail25 able to United States nongovernmental organizations lo26 cated outside the People’s Republic of China to support
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1 activities which preserve cultural traditions and promote

2 sustainable development and environmental conservation

3 in Tibetan communities in Tibet: Provided, That funds

4 made available for programs, projects, and activities for

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

6 regular notification procedures of the Committees on Ap7 propriations.

8 PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST

9 COUNTRIES

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

14 available to any country which the President determines—

15 (1) grants sanctuary from prosecution to any

16 individual or group which has committed an act of

17 international terrorism; or

18 (2) otherwise supports international terrorism.

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

21 national security or humanitarian reasons justify such

22 waiver. The President shall publish each waiver in the

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

24 takes effect, shall notify the Committees on Appropria25 tions of the waiver (including the justification for the waiv-
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1 er) in accordance with the regular notification procedures

2 of the Committees on Appropriations.

3 DEBT-FOR-DEVELOPMENT

4 SEC. 528. In order to enhance the continued partici5 pation of nongovernmental organizations in debt-for-devel6 opment and debt-for-nature exchanges, a nongovern7 mental organization which is a grantee or contractor of

8 the United States Agency for International Development

9 may place in interest bearing accounts local currencies

10 which accrue to that organization as a result of economic

11 assistance provided under title II of this Act and any in12 terest earned on such investment shall be used for the pur13 pose for which the assistance was provided to that organi14 zation.

15 SEPARATE ACCOUNTS

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

17 CURRENCIES.—(1) If assistance is furnished to the gov18 ernment of a foreign country under chapters 1 and 10 of

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

20 Act of 1961 under agreements which result in the genera21 tion of local currencies of that country, the Administrator

22 of the United States Agency for International Develop23 ment shall—

24 (A) require that local currencies be deposited in

25 a separate account established by that government;
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1 (B) enter into an agreement with that govern2 ment which sets forth—

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

4 generated; and

5 (ii) the terms and conditions under which

6 the currencies so deposited may be utilized, con7 sistent with this section; and

8 (C) establish by agreement with that govern9 ment the responsibilities of the United States Agen10 cy for International Development and that govern11 ment to monitor and account for deposits into and

12 disbursements from the separate account.

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

14 agreed upon with the foreign government, local currencies

15 deposited in a separate account pursuant to subsection

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

17 used only—

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

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

20 purposes as—

21 (i) project and sector assistance activities;

22 or

23 (ii) debt and deficit financing; or

24 (B) for the administrative requirements of the

25 United States Government.
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1 (3) PROGRAMMING ACCOUNTABILITY.—The United

2 States Agency for International Development shall take all

3 necessary steps to ensure that the equivalent of the local

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

5 from the separate account established pursuant to sub6 section (a)(1) are used for the purposes agreed upon pur7 suant to subsection (a)(2).

8 (4) TERMINATION OF ASSISTANCE PROGRAMS.—

9 Upon termination of assistance to a country under chapter

10 1 or 10 of part I or chapter 4 of part II (as the case

11 may be), any unencumbered balances of funds which re12 main in a separate account established pursuant to sub13 section (a) shall be disposed of for such purposes as may

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

15 United States Government.

16 (5) REPORTING REQUIREMENT.—The Administrator

17 of the United States Agency for International Develop18 ment shall report on an annual basis as part of the jus19 tification documents submitted to the Committees on Ap20 propriations on the use of local currencies for the adminis21 trative requirements of the United States Government as

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

23 include the amount of local currency (and United States

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

25 in each applicable country.
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1 (b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—

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

3 a foreign country, under chapter 1 or 10 of part I or chap4 ter 4 of part II of the Foreign Assistance Act of 1961,

5 as cash transfer assistance or as nonproject sector assist6 ance, that country shall be required to maintain such

7 funds in a separate account and not commingle them with

8 any other funds.

9 (2) APPLICABILITY OF OTHER PROVISIONS OF

10 LAW.—Such funds may be obligated and expended not11 withstanding provisions of law which are inconsistent with

12 the nature of this assistance including provisions which

13 are referenced in the Joint Explanatory Statement of the

14 Committee of Conference accompanying House Joint Res15 olution 648 (House Report No. 98–1159).

16 (3) NOTIFICATION.—At least 15 days prior to obli17 gating any such cash transfer or nonproject sector assist18 ance, the President shall submit a notification through the

19 regular notification procedures of the Committees on Ap20 propriations, which shall include a detailed description of

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

22 with a discussion of the United States interests that will

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

24 description of the economic policy reforms that will be pro25 moted by such assistance).
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1 (4) EXEMPTION.—Nonproject sector assistance funds

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

3 only through the notification procedures of the Commit4 tees on Appropriations.

5 ENTERPRISE FUND RESTRICTIONS

6 SEC. 530. Prior to the distribution of any assets re7 sulting from any liquidation, dissolution, or winding up

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

9 shall submit to the Committees on Appropriations, in ac10 cordance with the regular notification procedures of the

11 Committees on Appropriations, a plan for the distribution

12 of the assets of the Enterprise Fund.

13 BURMA

14 SEC. 531. Of the funds appropriated under the head15 ing ‘‘Economic Support Fund’’, not less than $6,000,000

16 should be made available to support democracy activities

17 along the Burma-Thailand border, for activities of Bur18 mese student groups and other organizations located out19 side Burma, and for the purpose of supporting the provi20 sion of humanitarian assistance to displaced Burmese

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

22 $500,000 should be made available to support newspapers,

23 publications, and other media activities promoting democ24 racy inside Burma: Provided further, That funds made

25 available under this heading may be made available not26 withstanding any other provision of law: Provided further,
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1 That funds made available by this section shall be subject

2 to the regular notification procedures of the Committees

3 on Appropriations.

4 AUTHORITIES FOR THE PEACE CORPS, INTER-AMERICAN

5 FOUNDATION AND AFRICAN DEVELOPMENT FOUNDATION

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

7 provisions of this or any other Act, including provisions

8 contained in prior Acts authorizing or making appropria9 tions for foreign operations, export financing, and related

10 programs, shall not be construed to prohibit activities au11 thorized by or conducted under the Peace Corps Act, the

12 Inter-American Foundation Act or the African Develop13 ment Foundation Act. The agency shall promptly report

14 to the Committees on Appropriations whenever it is con15 ducting activities or is proposing to conduct activities in

16 a country for which assistance is prohibited.

17 IMPACT ON JOBS IN THE UNITED STATES

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

19 may be obligated or expended to provide—

20 (1) any financial incentive to a business enter21 prise currently located in the United States for the

22 purpose of inducing such an enterprise to relocate

23 outside the United States if such incentive or in24 ducement is likely to reduce the number of employ25 ees of such business enterprise in the United States
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1 because United States production is being replaced

2 by such enterprise outside the United States; or

3 (2) assistance for any program, project, or ac4 tivity that contributes to the violation of internation5 ally recognized workers rights, as defined in section

6 507(4) of the Trade Act of 1974, of workers in the

7 recipient country, including any designated zone or

8 area in that country: Provided, That the application

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

10 commensurate with the level of development of the

11 recipient country and sector, and shall not preclude

12 assistance for the informal sector in such country,

13 micro and small-scale enterprise, and smallholder

14 agriculture.

15 SPECIAL AUTHORITIES

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

17 MONTENEGRO, VICTIMS OF WAR, DISPLACED CHILDREN,

18 AND DISPLACED BURMESE.—Funds appropriated by this

19 Act that are made available for assistance for Afghanistan

20 may be made available notwithstanding section 512 of this

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

22 the Foreign Assistance Act of 1961, and funds appro23 priated in titles I and II of this Act that are made avail24 able for Lebanon, Montenegro, Pakistan, and for victims

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

26 assist victims of trafficking in persons and, subject to the
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1 regular notification procedures of the Committees on Ap2 propriations, to combat such trafficking, may be made

3 available notwithstanding any other provision of law.

4 (b) TROPICAL FORESTRY AND BIODIVERSITY CON5 SERVATION ACTIVITIES.—Funds appropriated by this Act

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

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

8 of 1961 may be used, notwithstanding any other provision

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

10 biodiversity conservation activities and energy programs

11 aimed at reducing greenhouse gas emissions: Provided,

12 That such assistance shall be subject to sections 116,

13 502B, and 620A of the Foreign Assistance Act of 1961.

14 (c) PERSONAL SERVICES CONTRACTORS.—Funds ap15 propriated by this Act to carry out chapter 1 of part I,

16 chapter 4 of part II, and section 667 of the Foreign As17 sistance Act of 1961, and title II of the Agricultural Trade

18 Development and Assistance Act of 1954, may be used

19 by the United States Agency for International Develop20 ment to employ up to 20 personal services contractors in

21 the United States, notwithstanding any other provision of

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

23 for new or expanded overseas programs and activities

24 managed by the agency until permanent direct hire per25 sonnel are hired and trained: Provided, That not more
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1 than 7 of such contractors shall be assigned to any bureau

2 or office: Provided further, That such funds appropriated

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

4 made available for personal services contractors assigned

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

6 and the Bureau for Asia and the Near East: Provided fur7 ther, That such funds appropriated to carry out title II

8 of the Agricultural Trade Development and Assistance Act

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

10 contractors assigned to the Office of Food for Peace.

11 (d)(1) WAIVER.—The President may waive the provi12 sions of section 1003 of Public Law 100–204 if the Presi13 dent determines and certifies in writing to the Speaker

14 of the House of Representatives and the President pro

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

16 security interests of the United States.

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

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

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

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

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

22 award indefinite-quantity contracts with funds appro23 priated by this Act, the United States Agency for Inter24 national Development may provide an exception to the fair

25 opportunity process for placing task orders under such
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1 contracts when the order is placed with any category of

2 small or small disadvantaged business.

3 (f) SHIPMENT OF HUMANITARIAN ASSISTANCE.—

4 During fiscal year 2004 and each fiscal year thereafter,

5 of the amounts made available by the United States Agen6 cy for International Development to carry out the provi7 sions of section 123(b) of the Foreign Assistance Act of

8 1961, funds may be made available to nongovernmental

9 organizations for administrative costs necessary to imple10 ment a program to obtain available donated space on com11 mercial ships for the shipment of humanitarian assistance

12 overseas.

13 (g) RECONSTITUTING CIVILIAN POLICE AUTHOR14 ITY.—In providing assistance with funds appropriated by

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

16 Act of 1961, support for a nation emerging from insta17 bility may be deemed to mean support for regional, dis18 trict, municipal, or other sub-national entity emerging

19 from instability, as well as a nation emerging from insta20 bility.

21 (h) NATIONAL ENDOWMENT FOR DEMOCRACY.—

22 Funds appropriated by this Act that are provided to the

23 National Endowment for Democracy may be provided not24 withstanding any other provision of law or regulation.

25 ARAB LEAGUE BOYCOTT OF ISRAEL

26 SEC. 535. It is the sense of the Congress that—
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1 (1) the Arab League boycott of Israel, and the

2 secondary boycott of American firms that have com3 mercial ties with Israel, is an impediment to peace

4 in the region and to United States investment and

5 trade in the Middle East and North Africa;

6 (2) the Arab League boycott, which was regret7 tably reinstated in 1997, should be immediately and

8 publicly terminated, and the Central Office for the

9 Boycott of Israel immediately disbanded;

10 (3) the three Arab League countries with diplo11 matic and trade relations with Israel should return

12 their ambassadors to Israel, should refrain from

13 downgrading their relations with Israel, and should

14 play a constructive role in securing a peaceful reso15 lution of the Israeli-Arab conflict;

16 (4) the remaining Arab League states should

17 normalize relations with their neighbor Israel;

18 (5) the President and the Secretary of State

19 should continue to vigorously oppose the Arab

20 League boycott of Israel and find concrete steps to

21 demonstrate that opposition by, for example, taking

22 into consideration the participation of any recipient

23 country in the boycott when determining to sell

24 weapons to said country; and
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1 (6) the President should report to Congress an2 nually on specific steps being taken by the United

3 States to encourage Arab League states to normalize

4 their relations with Israel to bring about the termi5 nation of the Arab League boycott of Israel, includ6 ing those to encourage allies and trading partners of

7 the United States to enact laws prohibiting busi8 nesses from complying with the boycott and penal9 izing businesses that do comply.

10 ADMINISTRATION OF JUSTICE ACTIVITIES

11 SEC. 536. Of the funds appropriated or otherwise

12 made available by this Act or any subsequent Act for

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

14 to strengthen the administration of justice in countries in

15 Latin America and the Caribbean and in other regions

16 consistent with the provisions of section 534(b) of the For17 eign Assistance Act of 1961, except that programs to en18 hance protection of participants in judicial cases may be

19 conducted notwithstanding section 660 of that Act. Funds

20 made available pursuant to this section may be made

21 available notwithstanding section 534(c) and the second

22 and third sentences of section 534(e) of the Foreign As23 sistance Act of 1961.

24 ELIGIBILITY FOR ASSISTANCE

25 SEC. 537. (a) ASSISTANCE THROUGH NONGOVERN26 MENTAL ORGANIZATIONS.—Restrictions contained in this
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1 or any other Act with respect to assistance for a country

2 shall not be construed to restrict assistance in support of

3 programs of nongovernmental organizations from funds

4 appropriated by this Act to carry out the provisions of

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

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

7 funds appropriated under the heading ‘‘Assistance for

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

9 before using the authority of this subsection to furnish as10 sistance in support of programs of nongovernmental orga11 nizations, the President shall notify the Committees on

12 Appropriations under the regular notification procedures

13 of those committees, including a description of the pro14 gram to be assisted, the assistance to be provided, and

15 the reasons for furnishing such assistance: Provided fur16 ther, That nothing in this subsection shall be construed

17 to alter any existing statutory prohibitions against abor18 tion or involuntary sterilizations contained in this or any

19 other Act.

20 (b) PUBLIC LAW 480.—During fiscal year 2004, re21 strictions contained in this or any other Act with respect

22 to assistance for a country shall not be construed to re23 strict assistance under the Agricultural Trade Develop24 ment and Assistance Act of 1954: Provided, That none

25 of the funds appropriated to carry out title I of such Act
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1 and made available pursuant to this subsection may be

2 obligated or expended except as provided through the reg3 ular notification procedures of the Committees on Appro4 priations.

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

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

7 Assistance Act of 1961 or any comparable provision

8 of law prohibiting assistance to countries that sup9 port international terrorism; or

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

11 Assistance Act of 1961 or any comparable provision

12 of law prohibiting assistance to the government of a

13 country that violates internationally recognized

14 human rights.

15 RESERVATIONS OF FUNDS

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

17 are earmarked may be reprogrammed for other programs

18 within the same account notwithstanding the earmark if

19 compliance with the earmark is made impossible by oper20 ation of any provision of this or any other Act: Provided,

21 That any such reprogramming shall be subject to the reg22 ular notification procedures of the Committees on Appro23 priations: Provided further, That assistance that is repro24 grammed pursuant to this subsection shall be made avail25 able under the same terms and conditions as originally

26 provided.
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1 (b) In addition to the authority contained in sub2 section (a), the original period of availability of funds ap3 propriated by this Act and administered by the United

4 States Agency for International Development that are ear5 marked for particular programs or activities by this or any

6 other Act shall be extended for an additional fiscal year

7 if the Administrator of such agency determines and re8 ports promptly to the Committees on Appropriations that

9 the termination of assistance to a country or a significant

10 change in circumstances makes it unlikely that such ear11 marked funds can be obligated during the original period

12 of availability: Provided, That such earmarked funds that

13 are continued available for an additional fiscal year shall

14 be obligated only for the purpose of such earmark.

15 CEILINGS AND EARMARKS

16 SEC. 539. Ceilings and earmarks contained in this

17 Act shall not be applicable to funds or authorities appro18 priated or otherwise made available by any subsequent Act

19 unless such Act specifically so directs. Earmarks or min20 imum funding requirements contained in any other Act

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

22 PROHIBITION ON PUBLICITY OR PROPAGANDA

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

24 this Act shall be used for publicity or propaganda purposes

25 within the United States not authorized before the date

26 of the enactment of this Act by the Congress: Provided,
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1 That not to exceed $750,000 may be made available to

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

3 533.

4 PROHIBITION OF PAYMENTS TO UNITED NATIONS

5 MEMBERS

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

7 available pursuant to this Act for carrying out the Foreign

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

9 in part any assessments, arrearages, or dues of any mem10 ber of the United Nations or, from funds appropriated by

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

12 Assistance Act of 1961, the costs for participation of an13 other country’s delegation at international conferences

14 held under the auspices of multilateral or international or15 ganizations.

16 NONGOVERNMENTAL ORGANIZATIONS—DOCUMENTATION

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

18 available pursuant to this Act shall be available to a non19 governmental organization which fails to provide upon

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

21 the auditing requirements of the United States Agency for

22 International Development.
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1 PROHIBITION ON ASSISTANCE TO FOREIGN GOVERN2 MENTS THAT EXPORT LETHAL MILITARY EQUIP3 MENT TO COUNTRIES SUPPORTING INTERNATIONAL

4 TERRORISM

5 SEC. 543. (a) None of the funds appropriated or oth6 erwise made available by this Act may be available to any

7 foreign government which provides lethal military equip8 ment to a country the government of which the Secretary

9 of State has determined is a terrorist government for pur10 poses of section 6(j) of the Export Administration Act.

11 The prohibition under this section with respect to a for12 eign government shall terminate 12 months after that gov13 ernment ceases to provide such military equipment. This

14 section applies with respect to lethal military equipment

15 provided under a contract entered into after October 1,

16 1997.

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

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

19 President determines that furnishing such assistance is

20 important to the national interests of the United States.

21 (c) Whenever the waiver authority of subsection (b)

22 is exercised, the President shall submit to the appropriate

23 congressional committees a report with respect to the fur24 nishing of such assistance. Any such report shall include

25 a detailed explanation of the assistance to be provided, in-
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1 cluding the estimated dollar amount of such assistance,

2 and an explanation of how the assistance furthers United

3 States national interests.

4 WITHHOLDING OF ASSISTANCE FOR PARKING FINES

5 OWED BY FOREIGN COUNTRIES

6 SEC. 544. (a) IN GENERAL.—Of the funds appro7 priated under this Act that are made available for a for8 eign country under part I of the Foreign Assistance Act

9 of 1961, an amount equivalent to 110 percent of the total

10 unpaid fines determined to be owed under the parking pro11 grams in the District of Columbia and New York City,

12 New York by such country as of September 30, 2003 that

13 were incurred after the first day of the fiscal year pre14 ceding the current fiscal year shall be withheld from obli15 gation for such country until the Secretary of State cer16 tifies and reports in writing to the appropriate congres17 sional committees that such fines and penalties are fully

18 paid to the governments of the District of Columbia and

19 New York City, New York.

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

21 term ‘‘appropriate congressional committees’’ means the

22 Committee on Foreign Relations and the Committee on

23 Appropriations of the Senate and the Committee on Inter24 national Relations and the Committee on Appropriations

25 of the House of Representatives.
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1 LIMITATION ON ASSISTANCE FOR THE PLO FOR THE

2 WEST BANK AND GAZA

3 SEC. 545. None of the funds appropriated by this Act

4 may be obligated for assistance for the Palestine Libera5 tion Organization for the West Bank and Gaza unless the

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

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

8 VI of Public Law 104–107) or any other legislation to sus9 pend or make inapplicable section 307 of the Foreign As10 sistance Act of 1961 and that suspension is still in effect:

11 Provided, That if the President fails to make the certifi12 cation under section 604(b)(2) of the Middle East Peace

13 Facilitation Act of 1995 or to suspend the prohibition

14 under other legislation, funds appropriated by this Act

15 may not be obligated for assistance for the Palestine Lib16 eration Organization for the West Bank and Gaza.

17 WAR CRIMES TRIBUNALS DRAWDOWN

18 SEC. 546. If the President determines that doing so

19 will contribute to a just resolution of charges regarding

20 genocide or other violations of international humanitarian

21 law, the President may direct a drawdown pursuant to sec22 tion 552(c) of the Foreign Assistance Act of 1961, as

23 amended, of up to $30,000,000 of commodities and serv24 ices for the United Nations War Crimes Tribunal estab25 lished with regard to the former Yugoslavia by the United

26 Nations Security Council or such other tribunals or com-
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1 missions as the Council may establish or authorize to deal

2 with such violations, without regard to the ceiling limita3 tion contained in paragraph (2) thereof: Provided, That

4 the determination required under this section shall be in

5 lieu of any determinations otherwise required under sec6 tion 552(c): Provided further, That the drawdown made

7 under this section for any tribunal shall not be construed

8 as an endorsement or precedent for the establishment of

9 any standing or permanent international criminal tribunal

10 or court: Provided further, That funds made available for

11 tribunals other than Yugoslavia or Rwanda shall be made

12 available subject to the regular notification procedures of

13 the Committees on Appropriations.

14 LANDMINES

15 SEC. 547. Notwithstanding any other provision of

16 law, demining equipment available to the United States

17 Agency for International Development and the Depart18 ment of State and used in support of the clearance of

19 landmines and unexploded ordnance for humanitarian

20 purposes may be disposed of on a grant basis in foreign

21 countries, subject to such terms and conditions as the

22 President may prescribe.

23 RESTRICTIONS CONCERNING THE PALESTINIAN

24 AUTHORITY

25 SEC. 548. None of the funds appropriated by this Act

26 may be obligated or expended to create in any part of Je-
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1 rusalem a new office of any department or agency of the

2 United States Government for the purpose of conducting

3 official United States Government business with the Pal4 estinian Authority over Gaza and Jericho or any successor

5 Palestinian governing entity provided for in the Israel6 PLO Declaration of Principles: Provided, That this re7 striction shall not apply to the acquisition of additional

8 space for the existing Consulate General in Jerusalem:

9 Provided further, That meetings between officers and em10 ployees of the United States and officials of the Pales11 tinian Authority, or any successor Palestinian governing

12 entity provided for in the Israel-PLO Declaration of Prin13 ciples, for the purpose of conducting official United States

14 Government business with such authority should continue

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

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

17 States Government may continue to meet in Jerusalem on

18 other subjects with Palestinians (including those who now

19 occupy positions in the Palestinian Authority), have social

20 contacts, and have incidental discussions.

21 PROHIBITION OF PAYMENT OF CERTAIN EXPENSES

22 SEC. 549. None of the funds appropriated or other23 wise made available by this Act under the heading ‘‘Inter24 national Military Education and Training’’ or ‘‘Foreign

25 Military Financing Program’’ for Informational Program

26 activities or under the headings ‘‘Child Survival and
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1 Health Programs Fund’’, ‘‘Development Assistance’’, and

2 ‘‘Economic Support Fund’’ may be obligated or expended

3 to pay for—

4 (1) alcoholic beverages; or

5 (2) entertainment expenses for activities that

6 are substantially of a recreational character, includ7 ing but not limited to entrance fees at sporting

8 events, theatrical and musical productions, and

9 amusement parks.

10 RESTRICTIONS ON VOLUNTARY CONTRIBUTIONS TO

11 UNITED NATIONS AGENCIES

12 SEC. 550. None of the funds appropriated by this Act

13 may be made available to pay any voluntary contribution

14 of the United States to the United Nations (including the

15 United Nations Development Program) if the United Na16 tions implements or imposes any taxation on any United

17 States persons.

18 HAITI

19 SEC. 551. The Government of Haiti shall be eligible

20 to purchase defense articles and services under the Arms

21 Export Control Act (22 U.S.C. 2751 et seq.), for the Coast

22 Guard.

23 LIMITATION ON ASSISTANCE TO THE PALESTINIAN

24 AUTHORITY

25 SEC. 552. (a) PROHIBITION OF FUNDS.—None of the

26 funds appropriated by this Act to carry out the provisions
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1 of chapter 4 of part II of the Foreign Assistance Act of

2 1961 may be obligated or expended with respect to pro3 viding funds to the Palestinian Authority.

4 (b) WAIVER.—The prohibition included in subsection

5 (a) shall not apply if the President certifies in writing to

6 the Speaker of the House of Representatives and the

7 President pro tempore of the Senate that waiving such

8 prohibition is important to the national security interests

9 of the United States.

10 (c) PERIOD OF APPLICATION OF WAIVER.—Any

11 waiver pursuant to subsection (b) shall be effective for no

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

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

14 LIMITATION ON ASSISTANCE TO SECURITY FORCES

15 SEC. 553. None of the funds made available by this

16 Act may be provided to any unit of the security forces

17 of a foreign country if the Secretary of State has credible

18 evidence that such unit has committed gross violations of

19 human rights, unless the Secretary determines and reports

20 to the Committees on Appropriations that the government

21 of such country is taking effective measures to bring the

22 responsible members of the security forces unit to justice:

23 Provided, That nothing in this section shall be construed

24 to withhold funds made available by this Act from any

25 unit of the security forces of a foreign country not credibly

26 alleged to be involved in gross violations of human rights:
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1 Provided further, That in the event that funds are withheld

2 from any unit pursuant to this section, the Secretary of

3 State shall promptly inform the foreign government of the

4 basis for such action and shall, to the maximum extent

5 practicable, assist the foreign government in taking effec6 tive measures to bring the responsible members of the se7 curity forces to justice.

8 FOREIGN MILITARY TRAINING REPORT

9 SEC. 554. The annual foreign military training report

10 required by section 656 of the Foreign Assistance Act of

11 1961 shall be submitted by the Secretary of Defense and

12 the Secretary of State to the Committees on Appropria13 tions of the House of Representatives and the Senate by

14 the date specified in that section.

15 KOREAN PENINSULA ENERGY DEVELOPMENT

16 ORGANIZATION

17 SEC. 555. None of the funds appropriated by this Act

18 may be made available for assistance to the Korean Penin19 sula Energy Organization (KEDO).

20 PALESTINIAN STATEHOOD

21 SEC. 556. (a) LIMITATION ON ASSISTANCE.—None

22 of the funds appropriated by this Act may be provided

23 to support a Palestinian state unless the Secretary of

24 State determines and certifies to the appropriate congres25 sional committees that—
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1 (1) a new leadership of a Palestinian governing

2 entity has been democratically elected through cred3 ible and competitive elections;

4 (2) the elected governing entity of a new Pales5 tinian state—

6 (A) has demonstrated a firm commitment

7 to peaceful co-existence with the State of Israel;

8 (B) is taking appropriate measures to

9 counter terrorism and terrorist financing in the

10 West Bank and Gaza, including the dismantling

11 of terrorist infrastructures;

12 (C) is establishing a new Palestinian secu13 rity entity that is fully cooperative with appro14 priate Israeli and other appropriate security or15 ganizations; and

16 (3) the Palestinian Authority (or the governing

17 body of a new Palestinian state) is working with

18 other countries in the region to vigorously pursue ef19 forts to establish a just, lasting, and comprehensive

20 peace in the Middle East that will enable Israel and

21 an independent Palestinian state to exist within the

22 context of full and normal relationships, which

23 should include—

24 (A) termination of all claims or states of

25 belligerency;
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1 (B) respect for and acknowledgement of

2 the sovereignty, territorial integrity, and polit3 ical independence of every state in the area

4 through measures including the establishment

5 of demilitarized zones;

6 (C) their right to live in peace within se7 cure and recognized boundaries free from

8 threats or acts of force;

9 (D) freedom of navigation through inter10 national waterways in the area; and

11 (E) a framework for achieving a just set12 tlement of the refugee problem.

13 (b) SENSE OF CONGRESS.—It is the sense of Con14 gress that the newly elected governing entity should enact

15 a constitution assuring the rule of law, an independent ju16 diciary, and respect for human rights for its citizens, and

17 should enact other laws and regulations assuring trans18 parent and accountable governance.

19 (c) WAIVER.—The President may waive subsection

20 (a) if he determines that it is vital to the national security

21 interests of the United States to do so.

22 (d) EXEMPTION.—The restriction in subsection (a)

23 shall not apply to assistance intended to help reform the

24 Palestinian Authority and affiliated institutions, or a

25 newly elected governing entity, in order to help meet the
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1 requirements of subsection (a), consistent with the provi2 sions of section 552 of this Act (‘‘Limitation on Assistance

3 to the Palestinian Authority’’).

4 COLOMBIA

5 SEC. 557. (a) DETERMINATION AND CERTIFICATION

6 REQUIRED.—Notwithstanding any other provision of law,

7 funds appropriated by this Act that are available for as8 sistance for the Colombian Armed Forces, may be made

9 available as follows:

10 (1) Up to 75 percent of such funds may be obli11 gated prior to a determination and certification by

12 the Secretary of State pursuant to paragraph (2).

13 (2) The balance of such funds may be obligated

14 only after the Secretary of State certifies and re15 ports to the appropriate congressional committees

16 that:

17 (A) The Commander General of the Co18 lombian Armed Forces is suspending from the

19 Armed Forces those members, of whatever

20 rank, who have been credibly alleged to have

21 committed gross violations of human rights, in22 cluding extra-judicial killings, or to have aided

23 or abetted paramilitary organizations.

24 (B) The Colombian Government is pros25 ecuting those members of the Colombian Armed

26 Forces, of whatever rank, who have been
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1 credibly alleged to have committed gross viola2 tions of human rights, including extra-judicial

3 killings, or to have aided or abetted para4 military organizations, and is punishing those

5 members of the Colombian Armed Forces found

6 to have committed such violations of human

7 rights or to have aided or abetted paramilitary

8 organizations.

9 (C) The Colombian Armed Forces are co10 operating with civilian prosecutors and judicial

11 authorities in such cases (including providing

12 requested information, such as the identity of

13 persons suspended from the Armed Forces and

14 the nature and cause of the suspension, and ac15 cess to witnesses, relevant military documents,

16 and other requested information).

17 (D) The Colombian Armed Forces are sev18 ering links (including denying access to military

19 intelligence, vehicles, and other equipment or

20 supplies, and ceasing other forms of active or

21 tacit cooperation) at the command, battalion,

22 and brigade levels, with paramilitary organiza23 tions.

24 (E) The Colombian Armed Forces are exe25 cuting orders for capture of leaders of para-
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1 military organizations that continue armed con2 flict.

3 (b) CONSULTATIVE PROCESS.—At least 10 days prior

4 to making the certification required by subsection (a), the

5 Secretary of State shall consult with internationally recog6 nized human rights organizations regarding progress in

7 meeting the conditions contained in that subsection.

8 (c) DEFINITIONS.—In this section:

9 (1) AIDED OR ABETTED.—The term ‘‘aided or

10 abetted’’ means to provide any support to para11 military groups, including taking actions which

12 allow, facilitate, or otherwise foster the activities of

13 such groups.

14 (2) PARAMILITARY GROUPS.—The term ‘‘para15 military groups’’ means illegal self-defense groups

16 and illegal security cooperatives.

17 ILLEGAL ARMED GROUPS

18 SEC. 558. (a) DENIAL OF VISAS TO SUPPORTERS OF

19 COLOMBIAN ILLEGAL ARMED GROUPS.—Subject to sub20 section (b), the Secretary of State shall not issue a visa

21 to any alien who the Secretary determines, based on cred22 ible evidence—

23 (1) has willfully provided any support to the

24 Revolutionary Armed Forces of Colombia (FARC),

25 the National Liberation Army (ELN), or the United

26 Self-Defense Forces of Colombia (AUC), including
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1 taking actions or failing to take actions which allow,

2 facilitate, or otherwise foster the activities of such

3 groups; or

4 (2) has committed, ordered, incited, assisted, or

5 otherwise participated in the commission of gross

6 violations of human rights, including extra-judicial

7 killings, in Colombia.

8 (b) WAIVER.—Subsection (a) shall not apply if the

9 Secretary of State determines and certifies to the appro10 priate congressional committees, on a case-by-case basis,

11 that the issuance of a visa to the alien is necessary to

12 support the peace process in Colombia or for urgent hu13 manitarian reasons.

14 PROHIBITION ON ASSISTANCE TO THE PALESTINIAN

15 BROADCASTING CORPORATION

16 SEC. 559. None of the funds appropriated or other17 wise made available by this Act may be used to provide

18 equipment, technical support, consulting services, or any

19 other form of assistance to the Palestinian Broadcasting

20 Corporation.

21 WEST BANK AND GAZA PROGRAM

22 SEC. 560. (a) OVERSIGHT.—For fiscal year 2004, 30

23 days prior to the initial obligation of funds for the bilateral

24 West Bank and Gaza Program, the Secretary of State

25 shall certify to the appropriate committees of Congress

26 that procedures have been established to assure the Comp-
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1 troller General of the United States will have access to

2 appropriate United States financial information in order

3 to review the uses of United States assistance for the Pro4 gram funded under the heading ‘‘Economic Support

5 Fund’’ for the West Bank and Gaza.

6 (b) VETTING.—Prior to the obligation of funds ap7 propriated by this Act under the heading ‘‘Economic Sup8 port Fund’’ for assistance for the West Bank and Gaza,

9 the Secretary of State shall take all appropriate steps to

10 ensure that such assistance is not provided to or through

11 any individual or entity that the Secretary knows or has

12 reason to believe advocates, plans, sponsors, engages in,

13 or has engaged in, terrorist activity. The Secretary of

14 State shall, as appropriate, establish procedures specifying

15 the steps to be taken in carrying out this subsection.

16 (c) AUDITS.—(1) The Administrator of the United

17 States Agency for International Development shall ensure

18 that Federal or non-Federal audits of all contractors and

19 grantees, and significant subcontractors and subgrantees,

20 under the West Bank and Gaza Program, are conducted

21 at least on an annual basis to ensure, among other things,

22 compliance with this section.

23 (2) Of the funds appropriated by this Act under the

24 heading ‘‘Economic Support Fund’’ that are made avail25 able for assistance for the West Bank and Gaza, up to
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1 $1,000,000 may be used by the Office of the Inspector

2 General of the United States Agency for International De3 velopment for audits, inspections, and other activities in

4 furtherance of the requirements of this subsection. Such

5 funds are in addition to funds otherwise available for such

6 purposes.

7 CONTRIBUTIONS TO UNITED NATIONS POPULATION FUND

8 SEC. 561. (a) LIMITATIONS ON AMOUNT OF CON9 TRIBUTION.—Of the amounts made available under

10 ‘‘International Organizations and Programs’’,

11 $25,000,000 for fiscal year 2004 shall be available for the

12 United Nations Population Fund (hereafter in this section

13 referred to as the ‘‘UNFPA’’) subject to subsection (c).

14 (b) PROHIBITION ON USE OF FUNDS IN CHINA.—

15 None of the funds made available under ‘‘International

16 Organizations and Programs’’ may be made available for

17 the UNFPA for a country program in the People’s Repub18 lic of China.

19 (c) CONDITIONS ON AVAILABILITY OF FUNDS.—

20 Amounts made available under ‘‘International Organiza21 tions and Programs’’ for fiscal year 2004 for the UNFPA

22 may not be made available to the UNFPA unless—

23 (1) the UNFPA maintains amounts made avail24 able to the UNFPA under this section in an account

25 separate from other accounts of the UNFPA;
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1 (2) the UNFPA does not commingle amounts

2 made available to the UNFPA under this section

3 with other sums;

4 (3) the UNFPA does not fund abortions; and

5 (4) the UNFPA does not provide any funding

6 for the State Planned-Birth Commission (Jihua

7 Shengyu Weiyuanhui) or its regional affiliates in the

8 People’s Republic of China.

9 (d) REPORT TO THE CONGRESS AND WITHHOLDING

10 OF FUNDS.—

11 (1) Not later than February 15, 2004, the Sec12 retary of State shall submit a report to the appro13 priate congressional committees indicating the

14 amount of funds that the UNFPA is budgeting for

15 the year in which the report is submitted for a coun16 try program in the People’s Republic of China.

17 (2) If a report under paragraph (1) indicates

18 that the UNFPA plans to spend funds for a country

19 program in the People’s Republic of China in the

20 year covered by the report, then the amount of such

21 funds that the UNFPA plans to spend in the Peo22 ple’s Republic of China shall be deducted from the

23 funds made available to the UNFPA after March 1

24 for obligation for the remainder of the fiscal year in

25 which the report is submitted.
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1 PROCUREMENT AND FINANCIAL MANAGEMENT REFORM

2 SEC. 562. (a) FUNDING CONDITIONS.—Of the funds

3 made available under the heading ‘‘International Financial

4 Institutions’’ in this Act, 10 percent of the United States

5 portion or payment to such International Financial Insti6 tution shall be withheld by the Secretary of the Treasury,

7 until the Secretary certifies to the Committees on Appro8 priations that, to the extent pertinent to its lending pro9 grams, the institution is—

10 (1) implementing procedures for conducting an11 nual audits by qualified independent auditors for all

12 new investment lending;

13 (2) implementing procedures for annual inde14 pendent external audits of central bank financial

15 statements for countries making use of International

16 Monetary Fund resources under new arrangements

17 or agreements with the Fund;

18 (3) taking steps to establish an independent

19 fraud and corruption investigative organization or

20 office;

21 (4) implementing a process to assess a recipient

22 country’s procurement and financial management

23 capabilities including an analysis of the risks of cor24 ruption prior to initiating new investment lending;

25 and
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1 (5) taking steps to fund and implement pro2 grams and policies to improve transparency and

3 anti-corruption programs and procurement and fi4 nancial management controls in recipient countries.

5 (b) DEFINITIONS.—The term ‘‘International Finan6 cial Institutions’’ means the International Bank for Re7 construction and Development, the International Develop8 ment Association, the International Finance Corporation,

9 the Inter-American Development Bank, the Inter-Amer10 ican Investment Corporation, the Enterprise for the Amer11 icas Multilateral Investment Fund, the Asian Development

12 Bank, the Asian Development Fund, the African Develop13 ment Bank, the African Development Fund, the European

14 Bank for Reconstruction and Development, and the Inter15 national Monetary Fund.

16 WAR CRIMINALS

17 SEC. 563. (a)(1) None of the funds appropriated or

18 otherwise made available pursuant to this Act may be

19 made available for assistance, and the Secretary of the

20 Treasury shall instruct the United States executive direc21 tors to the international financial institutions to vote

22 against any new project involving the extension by such

23 institutions of any financial or technical assistance, to any

24 country, entity, or municipality whose competent authori25 ties have failed, as determined by the Secretary of State,

26 to take necessary and significant steps to implement its
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1 international legal obligations to apprehend and transfer

2 to the International Criminal Tribunal for the former

3 Yugoslavia (the ‘‘Tribunal’’) all persons in their territory

4 who have been indicted by the Tribunal and to otherwise

5 cooperate with the Tribunal.

6 (2) The provisions of this subsection shall not apply

7 to humanitarian assistance or assistance for democratiza8 tion.

9 (b) The provisions of subsection (a) shall apply unless

10 the Secretary of State determines and reports to the ap11 propriate congressional committees that the competent au12 thorities of such country, entity, or municipality are—

13 (1) cooperating with the Tribunal, including ac14 cess for investigators to archives and witnesses, the

15 provision of documents, and the surrender and

16 transfer of indictees or assistance in their apprehen17 sion; and

18 (2) are acting consistently with the Dayton Ac19 cords.

20 (c) Not less than 10 days before any vote in an inter21 national financial institution regarding the extension of

22 any new project involving financial or technical assistance

23 or grants to any country or entity described in subsection

24 (a), the Secretary of the Treasury, in consultation with

25 the Secretary of State, shall provide to the Committees
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1 on Appropriations a written justification for the proposed

2 assistance, including an explanation of the United States

3 position regarding any such vote, as well as a description

4 of the location of the proposed assistance by municipality,

5 its purpose, and its intended beneficiaries.

6 (d) In carrying out this section, the Secretary of

7 State, the Administrator of the United States Agency for

8 International Development, and the Secretary of the

9 Treasury shall consult with representatives of human

10 rights organizations and all government agencies with rel11 evant information to help prevent indicted war criminals

12 from benefiting from any financial or technical assistance

13 or grants provided to any country or entity described in

14 subsection (a).

15 (e) The Secretary of State may waive the application

16 of subsection (a) with respect to projects within a country,

17 entity, or municipality upon a written determination to the

18 Committees on Appropriations that such assistance di19 rectly supports the implementation of the Dayton Accords.

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

21 (1) COUNTRY.—The term ‘‘country’’ means

22 Bosnia and Herzegovina, Croatia and Serbia.

23 (2) ENTITY.—The term ‘‘entity’’ refers to the

24 Federation of Bosnia and Herzegovina, Kosovo,

25 Montenegro and the Republika Srpska.
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1 (3) MUNICIPALITY.—The term ‘‘municipality’’

2 means a city, town or other subdivision within a

3 country or entity as defined herein.

4 (4) DAYTON ACCORDS.—The term ‘‘Dayton Ac5 cords’’ means the General Framework Agreement

6 for Peace in Bosnia and Herzegovina, together with

7 annexes relating thereto, done at Dayton, November

8 10 through 16, 1995.

9 USER FEES

10 SEC. 564. The Secretary of the Treasury shall in11 struct the United States Executive Director at each inter12 national financial institution (as defined in section

13 1701(c)(2) of the International Financial Institutions Act)

14 and the International Monetary Fund to oppose any loan,

15 grant, strategy or policy of these institutions that would

16 require user fees or service charges on poor people for pri17 mary education or primary healthcare, including preven18 tion and treatment efforts for HIV/AIDS, malaria, tuber19 culosis, and infant, child, and maternal well-being, in con20 nection with the institutions’ financing programs.

21 FUNDING FOR SERBIA

22 SEC. 565. (a) Funds appropriated by this Act may

23 be made available for assistance for Serbia after March

24 1, 2004, if the President has made the determination and

25 certification contained in subsection (c).
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1 (b) After March 1, 2004, the Secretary of the Treas2 ury should instruct the United States executive directors

3 to the international financial institutions to support loans

4 and assistance to the Government of the Federal Republic

5 of Yugoslavia (or a government of a successor state) sub6 ject to the conditions in subsection (c): Provided, That sec7 tion 576 of the Foreign Operations, Export Financing,

8 and Related Programs Appropriations Act, 1997, as

9 amended, shall not apply to the provision of loans and as10 sistance to the Federal Republic of Yugoslavia (or a suc11 cessor state) through international financial institutions.

12 (c) The determination and certification referred to in

13 subsection (a) is a determination by the President and a

14 certification to the Committees on Appropriations that the

15 Government of the Federal Republic of Yugoslavia (or a

16 government of a successor state) is—

17 (1) cooperating with the International Criminal

18 Tribunal for the former Yugoslavia including access

19 for investigators, the provision of documents, and

20 the surrender and transfer of indictees or assistance

21 in their apprehension;

22 (2) taking steps that are consistent with the

23 Dayton Accords to end Serbian financial, political,

24 security and other support which has served to
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1 maintain separate Republika Srpska institutions;

2 and

3 (3) taking steps to implement policies which re4 flect a respect for minority rights and the rule of

5 law, including the release of political prisoners from

6 Serbian jails and prisons.

7 (d) This section shall not apply to Montenegro,

8 Kosovo, humanitarian assistance or assistance to promote

9 democracy in municipalities.

10 COMMUNITY-BASED POLICE ASSISTANCE

11 SEC. 566. (a) AUTHORITY.—Funds made available

12 by this Act to carry out the provisions of chapter 1 of

13 part I and chapter 4 of part II of the Foreign Assistance

14 Act of 1961, may be used, notwithstanding section 660

15 of that Act, to enhance the effectiveness and account16 ability of civilian police authority in Jamaica and El Sal17 vador through training and technical assistance in human

18 rights, the rule of law, strategic planning, and through as19 sistance to foster civilian police roles that support demo20 cratic governance including assistance for programs to

21 prevent conflict and foster improved police relations with

22 the communities they serve.

23 (b) NOTIFICATION.—Assistance provided under sub24 section (a) shall be subject to the regular notification pro25 cedures of the Committees on Appropriations.
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1 TRADE CAPACITY BUILDING

2 SEC. 567. Of the funds appropriated by this Act,

3 under the headings ‘‘Trade and Development Agency’’,

4 ‘‘Development Assistance’’, ‘‘Transition Initiatives’’,

5 ‘‘Economic Support Fund’’, ‘‘International Affairs Tech6 nical Assistance’’, and ‘‘International Organizations and

7 Programs’’, not less than $517,000,000 should be made

8 available for trade capacity building assistance.

9 SPECIAL DEBT RELIEF FOR THE POOREST

10 SEC. 568. (a) AUTHORITY TO REDUCE DEBT.-The

11 President may reduce amounts owed to the United States

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

13 as a result of—

14 (1) guarantees issued under sections 221 and

15 222 of the Foreign Assistance Act of 1961; or

16 (2) credits extended or guarantees issued under

17 the Arms Export Control Act.

18 (b) LIMITATIONS.—

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

20 may be exercised only to implement multilateral offi21 cial debt relief and referendum agreements, com22 monly referred to as ‘‘Paris Club Agreed Minutes’’.

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

24 may be exercised only in such amounts or to such

25 extent as is provided in advance by appropriations

26 Acts.
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1 (3) The authority provided by subsection (a)

2 may be exercised only with respect to countries with

3 heavy debt burdens that are eligible to borrow from

4 the International Development Association, but not

5 from the International Bank for Reconstruction and

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

7 countries.

8 (c) CONDITIONS.—The authority provided by sub9 section (a) may be exercised only with respect to a country

10 whose government—

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

12 expenditures;

13 (2) has not repeatedly provided support for acts

14 of international terrorism;

15 (3) is not failing to cooperate on international

16 narcotics control matters;

17 (4) (including its military or other security

18 forces) does not engage in a consistent pattern of

19 gross violations of internationally recognized human

20 rights; and

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

22 application of section 527 of the Foreign Relations

23 Authorization Act, Fiscal Years 1994 and 1995.

24 (d) AVAILABILITY OF FUNDS.—The authority pro25 vided by subsection (a) may be used only with regard to
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1 funds appropriated by this Act under the heading ‘‘Debt

2 Restructuring’’.

3 (e) CERTAIN PROHIBITIONS INAPPLICABLE.—The

4 authority provided by subsection (a) may be exercised not5 withstanding section 620(r) of the Foreign Assistance Act

6 of 1961 or section 321 of the International Development

7 and Food Assistance Act of 1975.

8 AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES

9 SEC. 569. (a) LOANS ELIGIBLE FOR SALE, REDUC10 TION, OR CANCELLATION.—

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

12 CERTAIN LOANS.—Notwithstanding any other provi13 sion of law, the President may, in accordance with

14 this section, sell to any eligible purchaser any

15 concessional loan or portion thereof made before

16 January 1, 1995, pursuant to the Foreign Assist17 ance Act of 1961, to the government of any eligible

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

19 on receipt of payment from an eligible purchaser, re20 duce or cancel such loan or portion thereof, only for

21 the purpose of facilitating—

22 (A) debt-for-equity swaps, debt-for-develop23 ment swaps, or debt-for-nature swaps; or

24 (B) a debt buyback by an eligible country

25 of its own qualified debt, only if the eligible

26 country uses an additional amount of the local
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1 currency of the eligible country, equal to not

2 less than 40 percent of the price paid for such

3 debt by such eligible country, or the difference

4 between the price paid for such debt and the

5 face value of such debt, to support activities

6 that link conservation and sustainable use of

7 natural resources with local community develop8 ment, and child survival and other child devel9 opment, in a manner consistent with sections

10 707 through 710 of the Foreign Assistance Act

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

12 would not contravene any term or condition of

13 any prior agreement relating to such loan.

14 (2) TERMS AND CONDITIONS.—Notwith15 standing any other provision of law, the President

16 shall, in accordance with this section, establish the

17 terms and conditions under which loans may be sold,

18 reduced, or canceled pursuant to this section.

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

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

21 1961, shall notify the administrator of the agency

22 primarily responsible for administering part I of the

23 Foreign Assistance Act of 1961 of purchasers that

24 the President has determined to be eligible, and

25 shall direct such agency to carry out the sale, reduc-
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1 tion, or cancellation of a loan pursuant to this sec2 tion. Such agency shall make an adjustment in its

3 accounts to reflect the sale, reduction, or cancella4 tion.

5 (4) LIMITATION.—The authorities of this sub6 section shall be available only to the extent that ap7 propriations for the cost of the modification, as de8 fined in section 502 of the Congressional Budget Act

9 of 1974, are made in advance.

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

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

12 or canceled pursuant to this section shall be deposited in

13 the United States Government account or accounts estab14 lished for the repayment of such loan.

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

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

17 presents plans satisfactory to the President for using the

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

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

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

21 any eligible purchaser, or any reduction or cancellation

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

23 country, the President should consult with the country

24 concerning the amount of loans to be sold, reduced, or
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1 canceled and their uses for debt-for-equity swaps, debt2 for-development swaps, or debt-for-nature swaps.

3 (e) AVAILABILITY OF FUNDS.—The authority pro4 vided by subsection (a) may be used only with regard to

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

6 Restructuring’’.

7 CAMBODIA

8 SEC. 570. The Secretary of the Treasury should in9 struct the United States executive directors of the inter10 national financial institutions to use the voice and vote

11 of the United States to oppose loans to the Central Gov12 ernment of Cambodia, except loans to support basic

13 human needs.

14 CUBA

15 SEC. 571. None of the funds appropriated by this Act

16 under the heading ‘‘International Narcotics Control and

17 Law Enforcement’’ may be made available for assistance

18 to the Government of Cuba.

19 COMPETITION IN CONTRACTING

20 SEC. 572. None of the funds appropriated in this Act

21 to support the programs of the United States Agency for

22 International Development in Iraq and none of the funds

23 appropriated in Public Law 108–11 under the heading

24 ‘‘Iraq Relief and Reconstruction Fund’’ may be made

25 available to enter into any contract or follow-on contract
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1 that uses other than full and open competitive contracting

2 procedures as defined in 41 U.S.C. 403(6).

3 DISASTER SURGE CAPACITY

4 SEC. 573. Funds appropriated by this Act to carry

5 out part I of the Foreign Assistance Act of 1961 may be

6 used, in addition to funds otherwise available for such pur7 poses, for the cost (including the support costs) of individ8 uals detailed to or employed by the United States Agency

9 for International Development whose primary responsi10 bility is to carry out programs to address natural or man11 made disasters or programs under the heading ‘‘Transi12 tion Initiatives’’.

13 AUTHORIZATION

14 SEC. 574. The Secretary of the Treasury may, to ful15 fill commitments of the United States, contribute on be16 half of the United States to the sixth replenishment of

17 the resources of the International Fund for Agricultural

18 Development. The following amount is authorized to be

19 appropriated without fiscal year limitation for payment by

20 the Secretary of the Treasury: $45,000,000 for the Inter21 national Fund for Agricultural Development.

22 PHILIPPINE EDUCATION AND HEALTH INFRASTRUCTURE

23 SEC. 575. Of the funds appropriated under ‘‘Eco24 nomic Support Fund’’ for the Philippines in Public Law

25 108–11, the Emergency Wartime Supplemental Appro-
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1 priations Act, 2003, $600,000 shall be available only for

2 upgrading education and health infrastructure in the Sulu

3 Archipelago.

4 BASIC EDUCATION

5 SEC. 576. Of the funds appropriated by title II of

6 this Act, not less than $350,000,000 shall be made avail7 able for basic education: Provided, That of the funds made

8 available pursuant to this section, not less than

9 $91,500,000 should be from funds appropriated under the

10 heading ‘‘Economic Support Fund’’: Provided further,

11 That the Secretary of State, in consultation with the Ad12 ministrator of the United States Agency for International

13 Development (USAID), shall submit a report not later

14 than 120 days after enactment of this Act articulating a

15 strategy for the use of basic education funds in Africa,

16 East Asia and the Pacific, the Near East, South Asia, and

17 the Western Hemisphere (excluding the United States) to

18 include—

19 (1) country strategies and brief project descrip20 tions of the uses and proposed uses of all United

21 States Government resources for basic education

22 overseas;

23 (2) a detailed description of the administrative

24 structure currently in place to manage strategic co25 ordination undertaken among the State Department,
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1 USAID and other agencies involved in international

2 basic education activities; and

3 (3) a description of actions being taken to ex4 pand the administrative capacity of both USAID

5 and the State Department to deliver effective ex6 panded basic education programs.

7 PARTICIPATION IN THE THIRTEENTH REPLENISHMENT

8 OF THE RESOURCES OF THE INTERNATIONAL DE9 VELOPMENT ASSOCIATION

10 SEC. 577. The International Development Associa11 tion Act (22 U.S.C. 284–284s) is amended by adding at

12 the end the following:

13 ‘‘SEC. 22. THIRTEENTH REPLENISHMENT.

14 ‘‘(a) CONTRIBUTION AUTHORITY.—

15 ‘‘(1) IN GENERAL.—The United States Gov16 ernor of the Association may contribute on behalf of

17 the United States an amount equal to the amount

18 appropriated under subsection (b), pursuant to the

19 resolution of the Association entitled ‘Additions to

20 IDA Resources: Thirteenth Replenishment’.

21 ‘‘(2) SUBJECT TO APPROPRIATIONS.—Any com22 mitment to make the contribution authorized by

23 paragraph (1) shall be effective only to such extent

24 or in such amounts as are provided in advance in

25 appropriations Acts.
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1 ‘‘(b) LIMITATIONS ON AUTHORIZATION OF APPRO2 PRIATIONS.—For the contribution authorized by sub3 section (a), there are authorized to be appropriated such

4 sums as may be necessary for payment by the Secretary

5 of the Treasury, without fiscal year limitation.’’.

6 ADMINISTRATIVE PROVISIONS RELATED TO

7 MULTILATERAL DEVELOPMENT INSTITUTIONS

8 SEC. 578. Title XV of the International Financial In9 stitutions Act (22 U.S.C. 262o—262o–2) is amended by

10 adding at the end the following:

11 ‘‘SEC. 1504. ADMINISTRATIVE PROVISIONS.

12 ‘‘(a) ACHIEVEMENT OF CERTAIN POLICY GOALS.—

13 The Secretary of Treasury should instruct the United

14 States Executive Director at each multilateral develop15 ment institution to inform the institution of the following

16 United States policy goals, and to work toward achieving

17 the goals at the institution before June 30, 2005:

18 ‘‘(1) No later than 60 calendar days after the

19 Board of Directors of the institution approves the

20 minutes of a Board meeting, the institution shall

21 post on its website an electronic version of the min22 utes, with material deemed too sensitive for public

23 distribution redacted.

24 ‘‘(2) The institution shall keep a written tran25 script or electronic recording of each meeting of its
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1 Board of Directors and preserve the transcript or re2 cording for at least 10 years after the meeting.

3 ‘‘(3) All public sector loan documents, country

4 assistance strategies, sector strategies, and sector

5 policies prepared by the institution and presented for

6 endorsement or approval by its Board of Directors,

7 with materials deemed too sensitive for public dis8 tribution redacted or withheld, shall be made avail9 able to the public 15 calendar days before consider10 ation by the Board or, if not then available, when

11 the documents are distributed to the Board.

12 ‘‘(4) The institution shall post on its website an

13 annual report containing statistical summaries and

14 case studies of the fraud and corruption cases pur15 sued by its investigations unit.

16 ‘‘(5) The institution shall require that any

17 health, education, or poverty-focused loan, credit,

18 grant, document, policy, or strategy prepared by the

19 institution includes specific outcome and output indi20 cators to measure results, and that the indicators

21 and results be published periodically during the exe22 cution, and at the completion, of the project or pro23 gram.

24 ‘‘(b) PUBLICATION OF WRITTEN STATEMENTS RE25 GARDING INSPECTION MECHANISM CASES.—No later
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1 than 60 calendar days after a meeting of the Board of

2 Directors of a multilateral development institution, the

3 Secretary of the Treasury should provide for publication

4 on the website of the Department of the Treasury of any

5 written statement presented at the meeting by the United

6 States Executive Director at the institution concerning—

7 ‘‘(1) a project on which a claim has been made

8 to the inspection mechanism of the institution; or

9 ‘‘(2) a pending inspection mechanism case.

10 ‘‘(c) CONGRESSIONAL BRIEFINGS.—At the request of

11 the Committee on Financial Services of the House of Rep12 resentatives or the Committee on Foreign Relations of the

13 Senate, the Secretary of the Treasury or the designee of

14 the Secretary should brief the requesting committee on the

15 steps that have been taken by the United States Executive

16 Director at any multilateral development institution, and

17 by any such institution, to implement the measures de18 scribed in this section.

19 ‘‘(d) PUBLICATION OF ‘NO’ VOTES AND ABSTEN20 TIONS BY THE UNITED STATES.—Each month, the Sec21 retary of the Treasury should provide for posting on the

22 website of the Department of the Treasury of a record

23 of all ‘no’ votes and abstentions made by the United States

24 Executive Director at any multilateral development insti-
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1 tution on any matter before the Board of Directors of the

2 institution.

3 ‘‘(e) MULTILATERAL DEVELOPMENT INSTITUTION

4 DEFINED.—In this section, the term ‘multilateral develop5 ment institution’ shall have the meaning given in section

6 1701(c)(3).’’.

7 PARTICIPATION IN THE SEVENTH REPLENISHMENT OF

8 THE RESOURCES OF THE ASIAN DEVELOPMENT FUND

9 SEC. 579. The Asian Development Bank Act (22

10 U.S.C. 285–285aa) is amended by adding at the end the

11 following:

12 ‘‘SEC. 31. ADDITIONAL CONTRIBUTION TO SPECIAL FUNDS.

13 ‘‘(a) CONTRIBUTION AUTHORITY.—

14 ‘‘(1) IN GENERAL.—The United States Gov15 ernor of the Bank may contribute on behalf of the

16 United States an amount equal to the amount ap17 propriated under subsection (b), pursuant to the res18 olution of the Bank entitled ‘Seventh Replenishment

19 of the Asian Development Fund’.

20 ‘‘(2) SUBJECT TO APPROPRIATIONS.—Any com21 mitment to make the contribution authorized by

22 paragraph (1) shall be effective only to such extent

23 or in such amounts as are provided in advance in

24 appropriations Acts.

25 ‘‘(b) LIMITATIONS ON AUTHORIZATION OF APPRO26 PRIATIONS.—For the contribution authorized by sub-
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1 section (a), there are authorized to be appropriated such

2 sums as may be necessary for payment by the Secretary

3 of the Treasury, without fiscal year limitation.’’.

4 PARTICIPATION IN THE NINTH REPLENISHMENT OF THE

5 RESOURCES OF THE AFRICAN DEVELOPMENT FUND

6 SEC. 580. The African Development Fund Act (22

7 U.S.C. 290g—290g–15) is amended by adding at the end

8 the following:

9 ‘‘SEC. 217. NINTH REPLENISHMENT.

10 ‘‘(a) CONTRIBUTION AUTHORITY.—

11 ‘‘(1) IN GENERAL.—The United States Gov12 ernor of the Fund may contribute on behalf of the

13 United States an amount equal to the amount ap14 propriated under subsection (b), pursuant to the res15 olution of the Fund entitled ‘The Ninth General Re16 plenishment of Resources of the African Develop17 ment Fund’.

18 ‘‘(2) SUBJECT TO APPROPRIATIONS.—Any com19 mitment to make the contribution authorized by

20 paragraph (1) shall be effective only to such extent

21 or in such amounts as are provided in advance in

22 appropriations Acts.

23 ‘‘(b) LIMITATIONS ON AUTHORIZATION OF APPRO24 PRIATIONS.—For the contribution authorized by sub25 section (a), there are authorized to be appropriated such
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1 sums as may be necessary for payment by the Secretary

2 of the Treasury, without fiscal year limitation.’’.

3 EFFORTS BY NORTH KOREA RELATING TO THE

4 PROLIFERATION OF NUCLEAR WEAPONS

5 SEC. 581. It is the sense of Congress that the Presi6 dent should utilize all diplomatic options to ensure that

7 the Government of the Democratic People’s Republic of

8 Korea does not engage in efforts relating to the prolifera9 tion of nuclear weapons.

10 SEC. 582. None of the funds made available in this

11 Act may be used by the State Department to support an

12 application under section 501 of the Foreign Intelligence

13 Surveillance Act of 1978 (50 U.S.C. 1861) for an order

14 requiring the production of library circulation records, li15 brary patron lists, library Internet records, bookseller

16 sales records, or bookseller customer lists.

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

18 Export Financing, and Related Programs Appropriations

19 Act, 2004’’.

Passed the House of Representatives July 24 (legislative day, July 23), 2003.

Attest:

Clerk.
108TH CONGRESS

1ST SESSION H. R. 2800

AN ACT

Making appropriations for foreign operations, export financing, and related programs for the fiscal year ending September 30, 2004, and for

other purposes.