I

106TH CONGRESS

2D SESSION H. R. 5253

To provide assistance to East Timor to facilitate the transition of East

Timor to an independent nation, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 21, 2000

Mr. GEJDENSON (for himself, Mr. LANTOS, Mrs. LOWEY, Ms. PELOSI, Mr.

ACKERMAN, Mr. MCGOVERN, Mr. EVANS, Mr. WEXLER, Mr. KUCINICH,

Mr. BERMAN, Mr. CAPUANO, Mr. BLUMENAUER, Mr. HALL of Ohio, Mr.

SMITH of New Jersey, Mr. WEYGAND, Mr. FALEOMAVAEGA, Mr. KENNEDY of Rhode Island, Mr. FRANK of Massachusetts, and Mr. HOEFFEL)

introduced the following bill; which was referred to the Committee on

International Relations, and in addition to the Committees on Banking

and Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such

provisions as fall within the jurisdiction of the committee concerned

A BILL

To provide assistance to East Timor to facilitate the transition of East Timor to an independent nation, and for

other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘East Timor Transition

5 to Independence Act of 2000’’.
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1 SEC. 2. FINDINGS.

2 Congress makes the following findings:

3 (1) On August 30, 1999, the East Timorese

4 people voted overwhelmingly in favor of independ5 ence from Indonesia in elections organized by the

6 United Nations Assistance Mission in East Timor

7 (UNAMET). Pro-integration militias, with the sup8 port of the Indonesian military, attempted to pre9 vent then retaliated against this vote by launching a

10 campaign of terror and violence. As a result, over

500,000 people, or approximately 2 11 ⁄3 of the popu12 lation, were displaced. Hundreds were murdered,

13 and many were raped.

14 (2) The violent campaign devastated East

15 Timor’s infrastructure, including its schools, water

16 and power supplies, and transportation and commu17 nications systems. The militias destroyed or severely

18 damaged 60 to 80 percent of public and private

19 property across East Timor. Virtually all vestiges of

20 government, public services (including sanitation),

21 and public security in East Timor also collapsed.

22 (3) The International Force for East Timor

23 (INTERFET) entered East Timor in September

24 1999 and successfully restored order. INTERFET

25 was organized and led by Australia, with the active
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1 participation of the Philippines, South Korea, New

2 Zealand, and Thailand.

3 (4) On October 25, 1999, the United Nations

4 Security Council established a new mandate for its

5 operations in East Timor. The United Nations

6 Transitional Administration for East Timor

7 (UNTAET), which replaced UNAMET, was directed

8 to provide overall administration of East Timor,

9 guide the people of East Timor in the establishment

10 of a new democratic government, and maintain secu11 rity and order.

12 (5) The leadership of UNTAET and the East

13 Timorese leadership currently anticipate that East

14 Timor will become an independent nation in mid- to

15 late-2001.

16 (6) East Timor is one of the poorest places in

17 Asia. A large percentage of the population live below

18 the poverty line, only 20 percent of East Timor’s

19 population is literate, most of East Timor’s people

20 remain unemployed, the annual per capita Gross Na21 tional Product is $340, and life expectancy is only

22 56 years.

23 (7) The World Bank and the United Nations

24 have estimated that it will require $300,000,000 in

25 development assistance over the next three years in
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1 order to meet East Timor’s basic development needs.

2 Donor countries, including the United States, have

3 pledged a total of $173,000,000 to the Trust Fund

4 established by the World Bank to manage the dis5 tribution of donor funds in East Timor, and

6 $37,000,000 to the Trust Fund of UNTAET.

7 (8) The United States has been a leading con8 tributor to the development of East Timor since

9 1994. As a result of the United States Agency for

10 International Development’s funding a successful

11 coffee cooperative project, small farmers have been

12 able to enter the cash economy and to increase the

13 amount of money earned from the coffee they grow.

14 (9) The Foreign Operations, Export Financing,

15 and Related Programs Appropriations Act, 2000,

16 provided $25,000,000 for East Timor. Utilizing

17 these funds, the United States Agency for Inter18 national Development has helped to restart the cof19 fee cooperative project after it ceased to operate dur20 ing the militia rampage, funded job creation pro21 grams for East Timorese, contributed to UNTAET

22 and to the World Bank Trust Fund for East Timor,

23 supported community organizations, and funded

24 forensics, human rights, independent media, and ju25 dicial development projects.
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1 SEC. 3. SENSE OF CONGRESS RELATING TO SUPPORT FOR

2 EAST TIMOR.

3 It is the sense of Congress that the United States—

4 (1) should support formation of broad-based de5 mocracy in East Timor, and help lay the ground6 work for East Timor’s economic recovery, the

7 strengthening of East Timor’s security, and the pro8 motion of East Timor’s ability to play a positive role

9 in the Asia-Pacific region and in international orga10 nizations.

11 (2) should continue to support the provision of

12 bilateral and multilateral assistance to East Timor,

13 with such assistance targeted to creation of jobs,

14 promotion of civil society, preparation for East

15 Timor’s first elections, development of East Timor’s

16 educational and health care systems, and support for

17 East Timor’s judicial system and the truth and rec18 onciliation process;

19 (3) should begin to lay the groundwork, prior to

20 East Timor’s independence, for an equitable future

21 trade and investment relationship with East Timor,

22 including trade and investment promotion activities

23 to be carried out by the Overseas Private Investment

24 Corporation, the Trade and Development Agency,

25 and the Export-Import Bank of the United States;
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1 (4) should officially open a diplomatic mission

2 in East Timor as soon as possible to ensure that the

3 United States can continue to play a leadership role

4 in building East Timor’s political and economic fu5 ture; and

6 (5) should support the efforts by the United

7 Nations to ensure justice and accountability related

8 to past atrocities in East Timor through United Na9 tions investigations, United Nations support for the

10 development of East Timor’s judicial system, and

11 the possible establishment of an international tri12 bunal for East Timor.

13 SEC. 4. BILATERAL ASSISTANCE.

14 (a) AUTHORIZATION.—The President, acting through

15 the Administrator of the United States Agency for Inter16 national Development, is authorized and encouraged to

17 provide assistance under the Foreign Assistance Act of

18 1961 (22 U.S.C. 2151 et seq.) and other applicable laws

19 to support the transition to democracy and self-govern20 ment in East Timor.

21 (b) ADDITIONAL REQUIREMENTS.—Assistance pro22 vided pursuant to subsection (a)—

23 (1) shall support the development of civil soci24 ety, including nongovernmental organizations in

25 East Timor;
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1 (2) shall promote the development of an inde2 pendent news media;

3 (3) shall support job creation and economic de4 velopment in East Timor, including support for

5 microenterprise programs and technical education,

6 as well as environmental protection and education

7 programs;

8 (4) shall fund efforts to promote reconciliation,

9 conflict resolution, and prevention of further conflict

10 with respect to East Timor, including establishing

11 accountability for past gross human rights viola12 tions;

13 (5) shall support the repatriation and reintegra14 tion of refugees into East Timor; and

15 (6) shall support political party development,

16 voter education, voter registration and other activi17 ties in support of free and fair elections in East

18 Timor.

19 (c) AUTHORIZATION OF APPROPRIATIONS.—

20 (1) IN GENERAL.—There are authorized to be

21 appropriated to carry out this section $25,000,000

22 for each of the fiscal years 2001, 2002, and 2003.

23 (2) AVAILABILITY.—Amounts appropriated pur24 suant to the authorization of appropriations under
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1 paragraph (1) are authorized to remain available

2 until expended.

3 SEC. 5. MULTILATERAL ASSISTANCE.

4 The President shall instruct the United States execu5 tive director at each international financial institution to

6 which the United States is a member, in particular the

7 International Bank for Reconstruction and Development

8 and the Asian Development Bank, to use the voice, vote,

9 and influence of the United States to ensure that the insti10 tution provides timely and appropriate resources to help

11 East Timor to continue to develop its economy, meet basic

12 human needs, and evolve toward economic self-sufficiency,

13 pluralism, and democracy.

14 SEC. 6. PEACE CORPS ASSISTANCE.

15 (a) AUTHORIZATION.—The President, acting through

16 the Director of the Peace Corps, is authorized to carry

17 out a program in East Timor under the Peace Corps Act

18 (22 U.S.C. 2501 et seq.) which shall include the use of

19 Peace Corps volunteers—

20 (1) to provide English language and other tech21 nical training for individuals in East Timor as well

22 as other activities which promote education, eco23 nomic development, and economic self-sufficiency;

24 and
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1 (2) to quickly address immediate assistance

2 needs in East Timor using the Peace Corps Crisis

3 Corps, to the extent practicable.

4 (b) AUTHORIZATION OF APPROPRIATIONS.—

5 (1) IN GENERAL.—In addition to amounts oth6 erwise available to carry out subsection (a), there

7 are authorized to be appropriated $2,000,000 for

8 each of the fiscal years 2001, 2002, and 2003 to

9 carry out such subsection.

10 (2) AVAILABILITY.—Amounts appropriated pur11 suant to the authorization of appropriations under

12 paragraph (1) are authorized to remain available

13 until expended.

14 SEC. 7. TRADE AND INVESTMENT ASSISTANCE.

15 (a) OPIC.—Beginning on the date of the enactment

16 of this Act, the President shall initiate negotiations with

17 the United Nations Transitional Administration for East

18 Timor (UNTAET), the National Council of East Timor,

19 and the government of East Timor (after independence

20 for East Timor)—

21 (1) to apply to East Timor the existing agree22 ment between the Overseas Private Investment Cor23 poration and Indonesia, or
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1 (2) to enter into a new agreement authorizing

2 the Overseas Private Investment Corporation to

3 carry out programs with respect to East Timor,

4 in order to expand United States investment in East

5 Timor.

6 (b) TRADE AND DEVELOPMENT AGENCY.—

7 (1) IN GENERAL.—The Director of the Trade

8 and Development Agency is authorized to carry out

9 projects in East Timor under section 661 of the

10 Foreign Assistance Act of 1961 (22 U.S.C. 2421).

11 (2) AUTHORIZATION OF APPROPRIATIONS.—

12 (A) IN GENERAL.—There are authorized to

13 be appropriated to carry out this subsection

14 $1,000,000 for each of the fiscal years 2001,

15 2002, and 2003.

16 (B) AVAILABILITY.—Amounts appro17 priated pursuant to the authorization of appro18 priations under subparagraph (A) are author19 ized to remain available until expended.

20 (c) EXPORT-IMPORT BANK.—The Export-Import

21 Bank of the United States shall expand its activities in

22 connection with exports to East Timor.

23 SEC. 8. GENERALIZED SYSTEM OF PREFERENCES.

24 (a) SENSE OF CONGRESS.—It is the sense of Con25 gress that the President should encourage the United Na-
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1 tions Transitional Administration for East Timor

2 (UNTAET), in close consultation with the National Coun3 cil of East Timor, to seek to become eligible for duty-free

4 treatment under title V of the Trade Act of 1974 (19

5 U.S.C. 2461 et seq.; relating to generalized system of pref6 erences).

7 (b) TECHNICAL ASSISTANCE.—The United States

8 Trade Representative and the Commissioner of the United

9 States Customs Service are authorized to provide technical

10 assistance to UNTAET, the National Council of East

11 Timor, and the government of East Timor (after inde12 pendence for East Timor) in order to assist East Timor

13 to become eligible for duty-free treatment under title V

14 of the Trade Act of 1974.

15 SEC. 9. BILATERAL INVESTMENT TREATY.

16 It is the sense of the Congress that the President

17 should seek to enter into a bilateral investment treaty with

18 the United Nations Transitional Administration for East

19 Timor (UNTAET), in close consultation with the National

20 Council of East Timor, in order to establish a more stable

21 legal framework for United States investment in East

22 Timor.

23 SEC. 10. SCHOLARSHIPS FOR EAST TIMORESE STUDENTS.

24 There are authorized to be appropriated to the De25 partment of State, $1,000,000 for the fiscal year 2002
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1 and $1,000,000 for the fiscal year 2003 to carry out an

2 East Timorese scholarship program under the authorities

3 of the United States Information and Educational Ex4 change Act of 1948, the Mutual Educational and Cultural

5 Exchange Act of 1961, Reorganization Plan Number 2 of

6 1977, and the National Endowment for Democracy Act.

7 The Department of State shall make every effort to iden8 tify and provide scholarships and other support to East

9 Timorese students interested in pursuing undergraduate

10 and graduate studies at institutions of higher education

11 in the United States.

12 SEC. 11. PLAN FOR ESTABLISHMENT OF DIPLOMATIC FA13 CILITIES IN EAST TIMOR.

14 The Secretary of State shall develop a detailed plan

15 for the official establishment of a diplomatic mission in

16 Dili, East Timor.

17 SEC. 12. SECURITY ASSISTANCE FOR EAST TIMOR.

18 (a) AUTHORIZATION.—Beginning on and after the

19 date on which the President transmits to the Congress a

20 certification described in subsection (b), the President is

21 authorized—

22 (1) to transfer excess defense articles under

23 section 516 of such Act (22 U.S.C. 2321j) to East

24 Timor in accordance with such section; and
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1 (2) to provide military education and training

2 under chapter 5 of part II of the Foreign Assistance

3 Act of 1961 (22 U.S.C. 2347 et seq.) for the armed

4 forces of East Timor in accordance with such chap5 ter.

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

7 subsection is a certification that—

8 (1) East Timor has established an independent

9 armed forces; and

10 (2) the assistance proposed to be provided pur11 suant to subsection (a)—

12 (A) is in the national security interests of

13 the United States; and

14 (B) will promote both human rights in

15 East Timor and the professionalization of the

16 armed forces of East Timor.

17 SEC. 13. REPORTING REQUIREMENT.

18 (a) IN GENERAL.—Not later than three months after

19 the date of the enactment of this Act, and every six

20 months thereafter until January 1, 2004, the Secretary

21 of State, in coordination with the Administrator of the

22 United States Agency for International Development, the

23 Secretary of the Treasury, the United States Trade Rep24 resentative, the Secretary of Commerce, the Overseas Pri25 vate Investment Corporation, the Director of the Trade
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1 and Development Agency, the President of the Export-Im2 port Bank of the United States, and the Director of the

3 Peace Corps, shall prepare and transmit to the Committee

4 on International Relations of the House of Representa5 tives and the Committee on Foreign Relations of the Sen6 ate a report that contains the information described in

7 subsection (b).

8 (b) INFORMATION.—The report shall include—

9 (1) significant developments in United States

10 relations with East Timor;

11 (2) developments in East Timor’s political and

12 economic situation in the period covered by the re13 port, including an evaluation of any elections occur14 ring in East Timor during this period and the ref15 ugee reintegration process in East Timor;

16 (3) activities undertaken in East Timor by the

17 International Bank for Reconstruction and Develop18 ment and the Asian Development Bank, and an eval19 uation of the effectiveness of these activities;

20 (4) the status of United States trade and in21 vestment relations with East Timor, including a de22 tailed analysis of any trade and investment-related

23 activity supported by the Overseas Private Invest24 ment Corporation, the Export-Import Bank of the

25 United States, and the Trade and Development
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1 Agency during the period of time since the previous

2 report and the status of any negotiations with the

3 United Nations Transitional Administration for East

4 Timor (UNTAET) or East Timor to facilitate the

5 operation of the United States trade agencies in

6 East Timor;

7 (5) the nature and extent of United States-East

8 Timor cultural, education, scientific, and academic

9 exchanges, both official and unofficial, and any

10 Peace Corps activities;

11 (6) with respect to the first report, a detailed

12 plan for the establishment of diplomatic facilities in

13 East Timor in accordance with section 11, which

14 may be submitted in classified or unclassified form,

15 and including a timetable for the official opening of

16 a facility in Dili, the personnel requirements for the

17 mission, the estimated costs for establishing the fa18 cility, and its security requirements; and

19 (7) with respect to the first report, a 3-year

20 plan for United States foreign assistance to East

21 Timor in accordance with section 4, prepared by the

22 Administrator of the United States Agency for

23 International Development, which outlines the goals

24 for United States foreign assistance to East Timor

25 during this 3-year period, and in subsequent reports,
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1 describes in detail the expenditure of United States

2 bilateral foreign assistance during the period covered

3 by the report.

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