I

104TH CONGRESS

1ST SESSION H. R. 1563

To authorize appropriations for foreign assistance programs, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 3, 1995

Mr. GILMAN introduced the following bill; which was referred to the Committee on International Relations, and in addition to the Committee on

Rules, 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 authorize appropriations for foreign assistance programs,

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 DIVISION C—FOREIGN

4 ASSISTANCE AUTHORIZATIONS

5 SECTION 3001. SHORT TITLE.

6 This Act may be cited as the ‘‘Foreign Aid Reduction

7 Act of 1995’’.

8 SEC. 3002. TABLE OF CONTENTS.

9 The table of contents for this Act is as follows:
2

•HR 1563 IH

DIVISION C—FOREIGN ASSISTANCE AUTHORIZATIONS

Sec. 3001. Short title.

Sec. 3002. Table of contents.

Sec. 3003. Declaration of policy.

TITLE XXXI—DEFENSE AND SECURITY ASSISTANCE

CHAPTER 1—MILITARY AND RELATED ASSISTANCE

SUBCHAPTER A—FOREIGN MILITARY FINANCING PROGRAM

Sec. 3101. Authorization of appropriations.

Sec. 3102. Assistance for Israel.

Sec. 3103. Assistance for Egypt.

Sec. 3104. Loans for Greece and Turkey.

Sec. 3105. Loans for the Czech Republic, Hungary, and Poland.

Sec. 3106. Terms of loans.

SUBCHAPTER B—OTHER ASSISTANCE

Sec. 3121. Defense drawdown special authorities.

Sec. 3122. Stockpiles of defense articles.

Sec. 3123. Transfer of excess defense articles.

CHAPTER 2—INTERNATIONAL MILITARY EDUCATION AND TRAINING

Sec. 3141. Authorization of appropriations.

Sec. 3142. Assistance for Indonesia.

Sec. 3143. Test pilot exchange training.

CHAPTER 3—ANTITERRORISM ASSISTANCE

Sec. 3151. Authorization of appropriations.

Sec. 3152. Antiterrorism training assistance.

CHAPTER 4—NARCOTICS CONTROL ASSISTANCE

Sec. 3161. Authorization of appropriations.

Sec. 3162. Additional requirements relating to narcotics control assistance.

Sec. 3163. Notification requirement.

Sec. 3164. Waiver of restrictions for narcotics-related economic assistance.

CHAPTER 5—NONPROLIFERATION AND DISARMAMENT FUND

Sec. 3171. Nonproliferation and Disarmament Fund.

CHAPTER 6—OTHER PROVISIONS

Sec. 3181. Standardization of congressional review procedures for arms transfers.

Sec. 3182. Standardization of third country transfers of defense articles.

Sec. 3183. Increased standardization, rationalization, and interoperability of assistance and sales programs.

Sec. 3184. Repeal of price and availability reporting requirement relating to

proposed sale of defense articles and services.

Sec. 3185. Definition of significant military equipment.

Sec. 3186. Elimination of Special Defense Acquisition Fund annual report.

Sec. 3187. Cost of leased defense articles that have been lost or destroyed.
3

•HR 1563 IH

Sec. 3188. Designation of major non-NATO allies.

Sec. 3189. Certification thresholds.

Sec. 3190. Competitive pricing for sales of defense articles and services.

Sec. 3191. Depleted uranium ammunition.

TITLE XXXII—ECONOMIC ASSISTANCE

CHAPTER 1—ECONOMIC SUPPORT ASSISTANCE

Sec. 3201. Economic support fund.

Sec. 3202. Assistance for Israel.

Sec. 3203. Assistance for Egypt.

Sec. 3204. International Fund for Ireland.

Sec. 3205. Law enforcement assistance.

CHAPTER 2—ASSISTANCE FOR PRIVATE SECTOR PROGRAMS AND ACTIVITIES

Sec. 3211. Private sector enterprise funds.

Sec. 3212. Trans-Caucasus enterprise funds.

Sec. 3213. Micro- and small enterprise development credits.

Sec. 3214. Microenterprise development grants.

CHAPTER 3—DEVELOPMENT ASSISTANCE

SUBCHAPTER A—DEVELOPMENT ASSISTANCE AUTHORITIES

Sec. 3221. Authorizations of appropriations.

Sec. 3222. Assistance for family planning.

Sec. 3223. Assistance for the independent states of the former Soviet Union.

Sec. 3224. Effectiveness of United States development assistance.

SUBCHAPTER B—OPERATING EXPENSES

Sec. 3231. Operating expenses generally.

Sec. 3232. Operating expenses of the office of the Inspector General.

CHAPTER 4—PUBLIC LAW 480

Sec. 3241. Authorization of appropriations.

CHAPTER 5—HOUSING GUARANTEE PROGRAM

Sec. 3251. Authorization of appropriations for administrative expenses.

CHAPTER 6—PEACE CORPS

Sec. 3261. Peace Corps.

Sec. 3262. Activities of the Peace Corps in the former Soviet Union.

Sec. 3263. Prohibition on use of funds for abortions.

CHAPTER 7—INTERNATIONAL DISASTER ASSISTANCE

Sec. 3271. Authority to provide reconstruction assistance.

Sec. 3272. Authorizations of appropriations.

CHAPTER 8—OTHER PROVISIONS

Sec. 3281. Exemption from restrictions on assistance through nongovernmental

organizations.
4

•HR 1563 IH

Sec. 3282. Funding requirements relating to United States private and voluntary organizations.

Sec. 3283. Documentation requested of private and voluntary organizations.

Sec. 3284. Foreign government parking fines.

TITLE XXXIII—REGIONAL PROVISIONS

Sec. 3301. Prohibition on assistance to foreign governments providing assistance to Cuba.

Sec. 3302. Assistance for Nicaragua.

Sec. 3303. Eligibility of Panama under Arms Export Control Act.

Sec. 3304. Future of the United States military presence in Panama.

Sec. 3305. Peace and stability in the South China Sea.

Sec. 3306. Assistance for Zaire.

TITLE XXXIV—SPECIAL AUTHORITIES AND OTHER PROVISIONS

CHAPTER 1—SPECIAL AUTHORITIES

Sec. 3401. Enhanced transfer authority.

Sec. 3402. Authority to meet unanticipated contingencies.

Sec. 3403. Special waiver authority.

Sec. 3404. Termination of assistance.

CHAPTER 2—OTHER PROVISIONS

Sec. 3411. Congressional presentation documents.

Sec. 3412. Prohibition on assistance to foreign governments engaged in espionage against the United States.

Sec. 3413. Debt restructuring for foreign assistance.

Sec. 3414. Debt buybacks or sales for debt swaps.

Sec. 3415. Impact on jobs in the United States.

Sec. 3416. Prohibition on assistance to foreign governments that export lethal

military equipment to countries supporting international terrorism.

CHAPTER 3—REPEALS

Sec. 3421. Repeal of obsolete provisions.

TITLE XXXV—EFFECTIVE DATE

Sec. 3501. Effective date.

1 SEC. 3003. DECLARATION OF POLICY.

2 The Congress declares the following:

3 (1) United States leadership overseas must be

4 maintained to support our vital national security,

5 economic, and humanitarian interests.
5

•HR 1563 IH

1 (2) As part of this leadership, United States

2 foreign assistance programs are essential to support

3 these national interests.

4 (3) However, United States foreign assistance

5 programs can be responsibly reduced while maintain6 ing United States leadership overseas.

7 TITLE XXXI—DEFENSE AND

8 SECURITY ASSISTANCE

9 CHAPTER 1—MILITARY AND RELATED

10 ASSISTANCE

11 Subchapter A—Foreign Military Financing

12 Program

13 SEC. 3101. AUTHORIZATION OF APPROPRIATIONS.

14 There are authorized to be appropriated for grant as15 sistance under section 23 of the Arms Export Control Act

16 (22 U.S.C. 2763) and for the subsidy cost, as defined in

17 section 502(5) of the Federal Credit Reform Act of 1990,

18 of direct loans under such section—

19 (1) $3,341,440,000 for fiscal year 1996; and

20 (2) $3,270,020,000 for fiscal year 1997.

21 SEC. 3102. ASSISTANCE FOR ISRAEL.

22 (a) MINIMUM ALLOCATION.—Of the amounts made

23 available for fiscal years 1996 and 1997 for assistance

24 under the ‘‘Foreign Military Financing Program’’ account

25 under section 23 of the Arms Export Control Act (22
6

•HR 1563 IH

1 U.S.C. 2763), not less than $1,800,000,000 for each such

2 fiscal year shall be available only for Israel.

3 (b) TERMS OF ASSISTANCE.—

4 (1) GRANT BASIS.—The assistance provided for

5 Israel for each fiscal year under subsection (a) shall

6 be provided on a grant basis.

7 (2) EXPEDITED DISBURSEMENT.—Such assist8 ance shall be disbursed—

9 (A) with respect to fiscal year 1996, not

10 later than 30 days after the date of the enact11 ment of the Foreign Operations, Export Fi12 nancing, and Related Programs Appropriations

13 Act, 1996, or by October 31, 1995, whichever

14 is later; and

15 (B) with respect to fiscal year 1997, not

16 later than 30 days after the date of the enact17 ment of the Foreign Operations, Export Fi18 nancing, and Related Programs Appropriations

19 Act, 1997, or by October 31, 1996, whichever

20 is later.

21 (3) ADVANCED WEAPONS SYSTEMS.—To the ex22 tent that the Government of Israel requests that

23 funds be used for such purposes, funds described in

24 subsection (a) shall, as agreed by the Government of

25 Israel and the Government of the United States, be
7

•HR 1563 IH

1 available for advanced weapons systems, of which

2 not less than $475,000,000 for each fiscal year shall

3 be available only for procurement in Israel of de4 fense articles and defense services, including re5 search and development.

6 (c) FOREIGN MILITARY SALES.—Section 21(h) of

7 the Arms Export Control Act (22 U.S.C. 2761(h)) is

8 amended—

9 (1) in paragraph (1)(A), by inserting ‘‘or ‘‘the

10 Government of Israel after ‘‘North Atlantic Treaty

11 Organization’’; and

12 (2) in paragraph (2), by striking ‘‘or to any

13 member government of that Organization if that Or14 ganization or member government’’ and inserting

15 ‘‘, any member government of that Organization, or

16 the Government of Israel, if the Organization, mem17 ber government, or Government of Israel, as the

18 case may be,’’.

19 SEC. 3103. ASSISTANCE FOR EGYPT.

20 (a) MINIMUM ALLOCATION.—Of the amounts made

21 available for fiscal years 1996 and 1997 for assistance

22 under the ‘‘Foreign Military Financing Program’’ account

23 under section 23 of the Arms Export Control Act (22

24 U.S.C. 2763), not less than $1,300,000,000 for each such

25 fiscal year shall be available only for Egypt.
8

•HR 1563 IH

1 (b) TERMS OF ASSISTANCE.—The assistance pro2 vided for Egypt for each fiscal year under subsection (a)

3 shall be provided on a grant basis.

4 SEC. 3104. LOANS FOR GREECE AND TURKEY.

5 Of the amounts made available for fiscal year 1996

6 under the ‘‘Foreign Military Financing Program’’ account

7 under section 23 of the Arms Export Control Act (22

8 U.S.C. 2763)—

9 (1) not more than $26,620,000 shall be made

10 available for the subsidy cost, as defined in section

11 502(5) of the Federal Credit Reform Act of 1990,

12 of direct loans for Greece; and

13 (2) not more than $37,800,000 shall be made

14 available for such subsidy cost of direct loans for

15 Turkey.

16 SEC. 3105. LOANS FOR THE CZECH REPUBLIC, HUNGARY,

17 AND POLAND.

18 Of the amounts made available for fiscal years 1996

19 and 1997 under the ‘‘Foreign Military Financing Pro20 gram’’ account under section 23 of the Arms Export Con21 trol Act (22 U.S.C. 2763), not more than $25,000,000

22 for each such fiscal year shall be made available for the

23 subsidy cost, as defined in section 502(5) of the Federal

24 Credit Reform Act of 1990, of direct loans for the Czech

25 Republic, Hungary, and Poland.
9

•HR 1563 IH

1 SEC. 3106. TERMS OF LOANS.

2 Section 31(c) of the Arms Export Control Act (22

3 U.S.C. 2771(c)) is amended to read as follows:

4 ‘‘(c) Loans available under section 23 shall be pro5 vided at rates of interest that are not less than the current

6 average market yield on outstanding marketable obliga7 tions of the United States of comparable maturities.’’.

8 Subchapter B—Other Assistance

9 SEC. 3121. DEFENSE DRAWDOWN SPECIAL AUTHORITIES.

10 (a) MILITARY ASSISTANCE DRAWDOWN.—Section

11 506(a)(1) of the Foreign Assistance Act of 1961 (22

12 U.S.C. 2318(a)(1)) is amended by striking ‘‘$75,000,000’’

13 and inserting ‘‘$100,000,000’’.

14 (b) NONMILITARY ASSISTANCE DRAWDOWN.—Sec15 tion 506 of such Act (22 U.S.C. 2318) is amended—

16 (1) in subsection (a)(2)(A), by striking ‘‘di17 rect—’’ and all that follows through the period and

18 inserting the following: ‘‘direct the drawdown of

19 such articles, services, and education and training

20 for the purposes and under the authorities of—

21 ‘‘(i) chapter 8 of part I (relating to inter22 national narcotics control assistance),

23 ‘‘(ii) chapter 9 of part I (relating to inter24 national disaster assistance), or

25 ‘‘(iii) the Migration and Refugee Assistance Act

26 of 1962.’’;
10

•HR 1563 IH

1 (2) in subsection (a)(2)(B)—

2 (A) by striking ‘‘$75,000,000’’ and insert3 ing ‘‘$150,000,000’’; and

4 (B) by striking ‘‘of this paragraph’’ and

5 inserting the following: ‘‘of this paragraph—

6 ‘‘(i) not more than $75,000,000 of which

7 may be provided from the drawdown from the

8 inventory and resources of the Department of

9 Defense; and

10 ‘‘(ii) not more than $75,000,000 of which

11 may be provided pursuant to clause (i) of such

12 subparagraph’’; and

13 (3) in subsection (b)(1), by adding at the end

14 the following: ‘‘In the case of drawdowns authorized

15 by clauses (i) and (iii) of subsection (a)(2)(A), noti16 fications shall be provided to those committees at

17 least 15 days in advance in accordance with the pro18 cedures applicable to reprogramming notifications

19 under section 634A.’’.

20 (c) NOTICE TO CONGRESS OF EXERCISE OF SPECIAL

21 AUTHORITIES.—Section 652 of such Act (22 U.S.C.

22 2411) is amended by striking ‘‘prior to the date’’ and in23 serting ‘‘before’’.
11

•HR 1563 IH

1 SEC. 3122. STOCKPILES OF DEFENSE ARTICLES.

2 (a) LIMITATION ON VALUE OF ADDITIONS.—Section

3 514(b)(1) of the Foreign Assistance Act of 1961 (22

4 U.S.C. 2321h(b)(1)) is amended by inserting ‘‘or in the

5 implementation of agreements with Israel’’ after ‘‘North

6 Atlantic Treaty Organization’’.

7 (b) ADDITIONS IN FISCAL YEARS 1996 AND 1997.—

8 Section 514(b)(2) of such Act (22 U.S.C. 2321h(b)(2))

9 is amended to read as follows:

10 ‘‘(2)(A) The value of such additions to stockpiles of

11 defense articles in foreign countries shall not exceed

12 $50,000,000 for each of the fiscal years 1996 and 1997.

13 ‘‘(B) Of the amount specified in subparagraph (A)

14 for each of the fiscal years 1996 and 1997, not more than

15 $40,000,000 may be made available for stockpiles in the

16 Republic of Korea and not more than $10,000,000 may

17 be made available for stockpiles in Thailand.’’.

18 (c) LOCATION OF STOCKPILES OF DEFENSE ARTI19 CLES.—Section 514(c) of such Act (22 U.S.C. 2321h(c))

20 is amended to read as follows:

21 ‘‘(c) LOCATION OF STOCKPILES OF DEFENSE ARTI22 CLES.—

23 ‘‘(1) LIMITATION.—Except as provided in para24 graph (2), no stockpile of defense articles may be lo25 cated outside the boundaries of a United States mili-
12

•HR 1563 IH

1 tary base or a military base used primarily by the

2 United States.

3 ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not

4 apply with respect to stockpiles of defense articles

5 located in the Republic of Korea, Thailand, any

6 country that is a member of the North Atlantic

7 Treaty Organization, any country that is a major

8 non-NATO ally, or any other country the President

9 may designate. At least 15 days before designating

10 a country pursuant to the last clause of the preced11 ing sentence, the President shall notify the congres12 sional committees specified in section 634A(a) in ac13 cordance with the procedures applicable to

14 reprogramming notifications under that section.’’.

15 SEC. 3123. TRANSFER OF EXCESS DEFENSE ARTICLES.

16 (a) IN GENERAL.—Section 516 of the Foreign Assist17 ance Act of 1961 (22 U.S.C. 2321j) is amended to read

18 as follows:

19 ‘‘SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE AR20 TICLES.

21 ‘‘(a) AUTHORIZATION.—The President is authorized

22 to transfer excess defense articles under this section to

23 countries for which receipt of such articles was justified

24 pursuant to the annual congressional presentation docu25 ments for military assistance programs submitted under
13

•HR 1563 IH

1 section 634 of this Act, or for which receipt of such arti2 cles was separately justified, for the fiscal year in which

3 the transfer is authorized.

4 ‘‘(b) LIMITATIONS ON TRANSFERS.—The President

5 may transfer excess defense articles under this section

6 only if—

7 ‘‘(1) such articles are drawn from existing

8 stocks of the Department of Defense;

9 ‘‘(2) funds available to the Department of De10 fense for the procurement of defense equipment are

11 not expended in connection with the transfer;

12 ‘‘(3) the transfer of such articles will not have

13 an adverse impact on the military readiness of the

14 United States;

15 ‘‘(4) with respect to a proposed transfer of such

16 articles on a grant basis, such a transfer is pref17 erable to a transfer on a sales basis, after taking

18 into account the potential proceeds from, and likeli19 hood of, such sales, and the comparative foreign pol20 icy benefits that may accrue to the United States as

21 the result of a transfer on either a grant or sales

22 basis;

23 ‘‘(5) the President first considers the effects of

24 the transfer of such articles on the national tech25 nology and industrial base, particularly the extent, if
14

•HR 1563 IH

1 any, to which the transfer reduces the opportunities

2 of entities in the national technology and industrial

3 base to sell new equipment to the countries to which

4 such articles are transferred; and

5 ‘‘(6) the transfer of such articles is consistent

6 with the policy framework for the Eastern Medi7 terranean established under section 620C of this

8 Act.

9 ‘‘(c) TERMS OF TRANSFERS.—Excess defense articles

10 may be transferred under this section without cost to the

11 recipient country.

12 ‘‘(d) WAIVER OF REQUIREMENT FOR REIMBURSE13 MENT OF DEPARTMENT OF DEFENSE EXPENSES.—Sec14 tion 632(d) shall not apply with respect to transfers of

15 excess defense articles under this section.

16 ‘‘(e) TRANSPORTATION AND RELATED COSTS.—

17 ‘‘(1) IN GENERAL.—Except as provided in para18 graph (2), funds available to the Department of De19 fense may not be expended for crating, packing,

20 handling, and transportation of excess defense arti21 cles transferred under the authority of this section.

22 ‘‘(2) EXCEPTION.—The President may provide

23 for the transportation of excess defense articles with24 out charge to a country for the costs of such trans25 portation if—
15

•HR 1563 IH

1 ‘‘(A) it is determined that it is in the na2 tional interest of the United States to do so;

3 ‘‘(B) the recipient is a developing country

4 receiving less than $10,000,000 of assistance

5 under chapter 5 of part II of this Act (relating

6 to international military education and train7 ing) or section 23 of the Arms Export Control

8 Act (22 U.S.C. 2763; relating to the Foreign

9 Military Financing program) in the fiscal year

10 in which the transportation is provided;

11 ‘‘(C) the total weight of the transfer does

12 not exceed 25,000 pounds; and

13 ‘‘(D) such transportation is accomplished

14 on a space available basis.

15 ‘‘(f) ADVANCE NOTIFICATION TO CONGRESS FOR

16 TRANSFER OF CERTAIN EXCESS DEFENSE ARTICLES.—

17 ‘‘(1) IN GENERAL.—The President may not

18 transfer excess defense articles that are significant

19 military equipment (as defined in section 47(9) of

20 the Arms Export Control Act) or excess defense arti21 cles valued (in terms of original acquisition cost) at

22 $7,000,000 or more, under this section or under the

23 Arms Export Control Act (22 U.S.C. 2751 et seq.)

24 until 15 days after the date on which the President

25 has provided notice of the proposed transfer to the
16

•HR 1563 IH

1 congressional committees specified in section

2 634A(a) in accordance with procedures applicable to

3 reprogramming notifications under that section.

4 ‘‘(2) CONTENTS.—Such notification shall in5 clude—

6 ‘‘(A) a statement outlining the purposes

7 for which the article is being provided to the

8 country, including whether such article has

9 been previously provided to such country;

10 ‘‘(B) an assessment of the impact of the

11 transfer on the military readiness of the United

12 States; and

13 ‘‘(C) a statement describing the current

14 value of such article and the value of such arti15 cle at acquisition.

16 ‘‘(g) AGGREGATE ANNUAL LIMITATION.—The aggre17 gate value of excess defense articles transferred to coun18 tries under this section in any fiscal year may not exceed

19 $350,000,000.

20 ‘‘(h) CONGRESSIONAL PRESENTATION DOCU21 MENTS.—Documents described in subsection (a) justifying

22 the transfer of excess defense articles shall include an ex23 planation of the general purposes of providing excess de24 fense articles as well as a table which provides an aggre25 gate annual total of transfers of excess defense articles
17

•HR 1563 IH

1 in the preceding year by country in terms of offers and

2 actual deliveries and in terms of acquisition cost and cur3 rent value. Such table shall indicate whether such excess

4 defense articles were provided on a grant or sale basis.

5 ‘‘(i) EXCESS COAST GUARD PROPERTY.—For pur6 poses of this section, the term ‘excess defense articles’

7 shall be deemed to include excess property of the Coast

8 Guard, and the term ‘Department of Defense’ shall be

9 deemed, with respect to such excess property, to include

10 the Coast Guard.’’.

11 (b) REPEALS.—The following provisions of law are

12 hereby repealed:

13 (1) Section 502A of the Foreign Assistance Act

14 of 1961 (22 U.S.C. 2303).

15 (2) Sections 517 through 520 of the Foreign

16 Assistance Act of 1961 (22 U.S.C. 2321k through

17 2321n).

18 (3) Section 31(d) of the Arms Export Control

19 Act (22 U.S.C. 2771(d)).

20 CHAPTER 2—INTERNATIONAL MILITARY

21 EDUCATION AND TRAINING

22 SEC. 3141. AUTHORIZATION OF APPROPRIATIONS.

23 There are authorized to be appropriated $28,500,000

24 for each of the fiscal years 1996 and 1997 to carry out
18

•HR 1563 IH

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

2 (22 U.S.C. 2347 et seq.).

3 SEC. 3142. ASSISTANCE FOR INDONESIA.

4 Funds made available for fiscal years 1996 and 1997

5 to carry out chapter 5 of part II of the Foreign Assistance

6 Act of 1961 (22 U.S.C. 2347 et seq.; relating to the inter7 national military education and training program) may be

8 obligated for Indonesia only for expanded military and

9 education training that meets the requirements of clauses

10 (i) through (iv) of the second sentence of section 541 of

11 such Act (22 U.S.C. 2347).

12 SEC. 3143. TEST PILOT EXCHANGE TRAINING.

13 Section 544 of the Foreign Assistance Act of 1961

14 (22 U.S.C. 2347c) is amended—

15 (1) by striking ‘‘In carrying out this chapter’’

16 and inserting ‘‘(a) In carrying out this chapter’’; and

17 (2) by adding at the end the following new sub18 section:

19 ‘‘(b) The President may provide for the attendance

20 of foreign military and civilian defense personnel at test

21 pilot flight schools in the United States without charge

22 if such attendance is pursuant to an agreement providing

23 for the exchange of students on a one-for-one basis each

24 fiscal year between those United States test pilot flight
19

•HR 1563 IH

1 schools and comparable flight test pilot schools of foreign

2 countries.’’.

3 CHAPTER 3—ANTITERRORISM

4 ASSISTANCE

5 SEC. 3151. AUTHORIZATION OF APPROPRIATIONS.

6 (a) IN GENERAL.—There are authorized to be appro7 priated $25,000,000 for fiscal year 1996 and $30,000,000

8 for fiscal year 1997 to carry out chapter 8 of part II of

9 the Foreign Assistance Act of 1961 (22 U.S.C. 2349aa

10 et seq.).

11 (b) AVAILABILITY OF AMOUNTS.—Amounts author12 ized to be appropriated under subsection (a) are author13 ized to remain available until expended.

14 SEC. 3152. ANTITERRORISM TRAINING ASSISTANCE.

15 (a) IN GENERAL.—Section 571 of the Foreign Assist16 ance Act of 1961 (22 U.S.C. 2349aa) is amended by strik17 ing ‘‘Subject to the provisions of this chapter’’ and insert18 ing ‘‘Notwithstanding any other provision of law that re19 stricts assistance to foreign countries (other than sections

20 502B and 620A of this Act)’’.

21 (b) LIMITATIONS.—Section 573 of such Act (22

22 U.S.C. 2349aa–2) is amended—

23 (1) in the heading, by striking ‘‘SPECIFIC AU24 THORITIES AND’’;

25 (2) by striking subsection (a);
20

•HR 1563 IH

1 (3) by redesignating subsections (b) through (f)

2 as subsections (a) through (e), respectively; and

3 (4) in subsection (c) (as redesignated)—

4 (A) by striking paragraphs (1) and (2);

5 (B) by redesignating paragraphs (3)

6 through (5) as paragraphs (1) through (3), re7 spectively; and

8 (C) by amending paragraph (2) (as redes9 ignated) to read as follows:

10 ‘‘(2)(A) Except as provided in subparagraph

11 (B), funds made available to carry out this chapter

12 shall not be made available for the procurement of

13 weapons and ammunition.

14 ‘‘(B) Subparagraph (A) shall not apply to small

15 arms and ammunition in categories I and III of the

16 United States Munitions List that are integrally and

17 directly related to antiterrorism training provided

18 under this chapter if, at least 15 days before obligat19 ing those funds, the President notifies the appro20 priate congressional committees in accordance with

21 the procedures applicable to reprogramming notifica22 tions under section 634A.

23 ‘‘(C) The value (in terms of original acquisition

24 cost) of all equipment and commodities provided

25 under this chapter in any fiscal year may not exceed
21

•HR 1563 IH

1 25 percent of the funds made available to carry out

2 this chapter for that fiscal year.’’.

3 (c) ANNUAL REPORT.—Section 574 of such Act (22

4 U.S.C. 2349aa–3) is hereby repealed.

5 (d) TECHNICAL CORRECTIONS.—Section 575 (22

6 U.S.C. 2349aa–4) and section 576 (22 U.S.C. 2349aa–

7 5) of such Act are redesignated as sections 574 and 575,

8 respectively.

9 CHAPTER 4—NARCOTICS CONTROL

10 ASSISTANCE

11 SEC. 3161. AUTHORIZATION OF APPROPRIATIONS.

12 (a) IN GENERAL.—There are authorized to be appro13 priated $213,000,000 for each of the fiscal years 1996

14 and 1997 to carry out chapter 8 of part I of the Foreign

15 Assistance Act of 1961 (22 U.S.C. 2349aa et seq.).

16 (b) AVAILABILITY OF AMOUNTS.—Amounts author17 ized to be appropriated under subsection (a) are author18 ized to remain available until expended.

19 SEC. 3162. ADDITIONAL REQUIREMENTS RELATING TO

20 NARCOTICS CONTROL ASSISTANCE.

21 (a) POLICY AND GENERAL AUTHORITIES.—Section

22 481(a) of the Foreign Assistance Act (22 U.S.C. 2291(a))

23 is amended—

24 (1) in paragraph (1)—
22

•HR 1563 IH

1 (A) by redesignating subparagraphs (D)

2 through (F) as subparagraphs (E) through (G),

3 respectively; and

4 (B) by inserting after subparagraph (C)

5 the following new subparagraph:

6 ‘‘(D) International criminal activities, particu7 larly international narcotics trafficking, money laun8 dering, and corruption, endanger political and eco9 nomic stability and democratic development, and as10 sistance for the prevention and suppression of inter11 national criminal activities should be a priority for

12 the United States.’’; and

13 (2) in paragraph (4), by adding before the pe14 riod at the end the following: ‘‘, or for other related

15 anticrime purposes’’.

16 (b) CONTRIBUTIONS AND REIMBURSEMENT.—Sec17 tion 482(c) of that Act (22 U.S.C. 2291a(c)) is

18 amended—

19 (1) by striking ‘‘CONTRIBUTION BY RECIPIENT

20 COUNTRY.—To’’ and inserting ‘‘CONTRIBUTIONS

21 AND REIMBURSEMENT.—(1) To’’; and

22 (2) by adding at the end the following new

23 paragraphs:

24 ‘‘(2)(A) The President is authorized to accept con25 tributions from other foreign governments to carry out the
23

•HR 1563 IH

1 purposes of this chapter. Such contributions shall be de2 posited as an offsetting collection to the applicable appro3 priation account and may be used under the same terms

4 and conditions as funds appropriated pursuant to this

5 chapter.

6 ‘‘(B) At the time of submission of the annual congres7 sional presentation documents required by section 634(a),

8 the President shall provide a detailed report on any con9 tributions received in the preceding fiscal year, the amount

10 of such contributions, and the purposes for which such

11 contributions were used.

12 ‘‘(3) The President is authorized to provide assist13 ance under this chapter on a reimbursable basis. Such re14 imbursements shall be deposited as an offsetting collection

15 to the applicable appropriation and may be used under the

16 same terms and conditions as funds appropriated pursu17 ant to this chapter.’’.

18 (c) IMPLEMENTATION OF LAW ENFORCEMENT AS19 SISTANCE.—Section 482 of such Act (22 U.S.C. 2291a)

20 is amended by adding at the end the following new sub21 sections:

22 ‘‘(f) TREATMENT OF FUNDS.—Funds transferred to

23 and consolidated with funds appropriated pursuant to this

24 chapter may be made available on such terms and condi25 tions as are applicable to funds appropriated pursuant to
24

•HR 1563 IH

1 this chapter. Funds so transferred or consolidated shall

2 be apportioned directly to the bureau within the Depart3 ment of State responsible for administering this chapter.

4 ‘‘(g) EXCESS PROPERTY.—For purposes of this chap5 ter, the Secretary of State may use the authority of section

6 608, without regard to the restrictions of such section, to

7 receive nonlethal excess property from any agency of the

8 United States Government for the purpose of providing

9 such property to a foreign government under the same

10 terms and conditions as funds authorized to be appro11 priated for the purposes of this chapter.’’.

12 (d) REPORTING REQUIREMENTS.—(1) Section 489 of

13 such Act (22 U.S.C. 2291h) is amended—

14 (A) in the section heading, by striking ‘‘FOR

15 FISCAL YEAR 1995’’; and

16 (B) by striking subsections (b) and (c).

17 (2) Section 489A of such Act (22 U.S.C. 2291i) is

18 hereby repealed.

19 (e) CERTIFICATION REQUIREMENTS.—(1) Section

20 490 of such Act (22 U.S.C. 2291j) is amended—

21 (A) in the section heading by striking ‘‘FOR

22 FISCAL YEAR 1995’’; and

23 (B) by striking subsection (i).

24 (2) Section 490A of such Act (22 U.S.C. 2291k) is

25 hereby repealed.
25

•HR 1563 IH

1 SEC. 3163. NOTIFICATION REQUIREMENT.

2 (a) IN GENERAL.—The authority of section 1003(d)

3 of the National Narcotics Control Leadership Act of 1988

4 (21 U.S.C. 1502(d)) may be exercised with respect to

5 funds authorized to be appropriated pursuant to the For6 eign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) and

7 with respect to the personnel of the Department of State

8 only to the extent that the appropriate congressional com9 mittees have been notified 15 days in advance in accord10 ance with the reprogramming procedures applicable under

11 section 634A of that Act (22 U.S.C. 2394–1).

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

13 term ‘‘appropriate congressional committees’’ means the

14 Committee on International Relations and the Committee

15 on Appropriations of the House of Representatives and the

16 Committee on Foreign Relations and the Committee on

17 Appropriations of the Senate.

18 SEC. 3164. WAIVER OF RESTRICTIONS FOR NARCOTICS-RE19 LATED ECONOMIC ASSISTANCE.

20 For each of the fiscal years 1996 and 1997, narcot21 ics-related assistance under part I of the Foreign Assist22 ance Act of 1961 (22 U.S.C. 2151 et seq.) may be pro23 vided notwithstanding any other provision of law that re24 stricts assistance to foreign countries (other than section

25 490(e) or section 502B of that Act (22 U.S.C. 2291j(e)

26 and 2304)) if, at least 15 days before obligating funds
26

•HR 1563 IH

1 for such assistance, the President notifies the appropriate

2 congressional committees (as defined in section 481(e) of

3 that Act (22 U.S.C. 2291(e))) in accordance with the pro4 cedures applicable to reprogramming notifications under

5 section 634A of that Act (22 U.S.C. 2394).

6 CHAPTER 5—NONPROLIFERATION AND

7 DISARMAMENT FUND

8 SEC. 3171. NONPROLIFERATION AND DISARMAMENT FUND.

9 (a) IN GENERAL.—There are authorized to be appro10 priated $25,000,000 for each of the fiscal years 1996 and

11 1997 to carry out section 504 of the Freedom for Russia

12 and Emerging Eurasian Democracies and Open Markets

13 Support Act of 1992 (22 U.S.C. 5854).

14 (b) AVAILABILITY OF AMOUNTS.—Amounts author15 ized to be appropriated under subsection (a) are author16 ized to remain available until expended.

17 CHAPTER 6—OTHER PROVISIONS

18 SEC. 3181. STANDARDIZATION OF CONGRESSIONAL REVIEW

19 PROCEDURES FOR ARMS TRANSFERS.

20 (a) THIRD COUNTRY TRANSFERS UNDER FMS

21 SALES.—Section 3(d)(2) of the Arms Export Control Act

22 (22 U.S.C. 2753(d)(2)) is amended—

23 (1) in subparagraph (A), by striking ‘‘, as pro24 vided for in sections 36(b)(2) and 36(b)(3) of this

25 Act’’;
27

•HR 1563 IH

1 (2) in subparagraph (B), by striking ‘‘law’’ and

2 inserting ‘‘joint resolution’’; and

3 (3) by adding at the end the following:

4 ‘‘(C) If the President states in his certification under

5 subparagraph (A) or (B) that an emergency exists which

6 requires that consent to the proposed transfer become ef7 fective immediately in the national security interests of the

8 United States, thus waiving the requirements of that sub9 paragraph, the President shall set forth in the certification

10 a detailed justification for his determination, including a

11 description of the emergency circumstances which neces12 sitate immediate consent to the transfer and a discussion

13 of the national security interests involved.

14 ‘‘(D)(i) Any joint resolution under this paragraph

15 shall be considered in the Senate in accordance with the

16 provisions of section 601(b) of the International Security

17 Assistance and Arms Export Control Act of 1976.

18 ‘‘(ii) For the purpose of expediting the consideration

19 and enactment of joint resolutions under this paragraph,

20 a motion to proceed to the consideration of any such joint

21 resolution after it has been reported by the appropriate

22 committee shall be treated as highly privileged in the

23 House of Representatives.’’.
28

•HR 1563 IH

1 (b) THIRD COUNTRY TRANSFERS UNDER COMMER2 CIAL SALES.—Section 3(d)(3) of such Act (22 U.S.C.

3 2753(d)(3)) is amended—

4 (1) by inserting ‘‘(A)’’ after ‘‘(3)’’;

5 (2) in the first sentence—

6 (A) by striking ‘‘at least 30 calendar

7 days’’; and

8 (B) by striking ‘‘report’’ and inserting

9 ‘‘certification’’; and

10 (3) by striking the last sentence and inserting

11 the following: ‘‘Such certification shall be submit12 ted—

13 ‘‘(i) at least 15 calendar days before such con14 sent is given in the case of a transfer to a country

15 which is a member of the North Atlantic Treaty Or16 ganization or Australia, Japan, or New Zealand; and

17 ‘‘(ii) at least 30 calendar days before such con18 sent is given in the case of a transfer to any other

19 country,

20 unless the President states in his certification that an

21 emergency exists which requires that consent to the pro22 posed transfer become effective immediately in the na23 tional security interests of the United States. If the Presi24 dent states in his certification that such an emergency ex25 ists (thus waiving the requirements of clause (i) or (ii),
29

•HR 1563 IH

1 as the case may be, and of subparagraph (B)) the Presi2 dent shall set forth in the certification a detailed justifica3 tion for his determination, including a description of the

4 emergency circumstances which necessitate that consent

5 to the proposed transfer become effective immediately and

6 a discussion of the national security interests involved.

7 ‘‘(B) Consent to a transfer subject to subparagraph

8 (A) shall become effective after the end of the 15-day or

9 30-day period specified in subparagraph (A)(i) or (ii), as

10 the case may be, only if the Congress does not enact, with11 in that period, a joint resolution prohibiting the proposed

12 transfer.

13 ‘‘(C)(i) Any joint resolution under this paragraph

14 shall be considered in the Senate in accordance with the

15 provisions of section 601(b) of the International Security

16 Assistance and Arms Export Control Act of 1976.

17 ‘‘(ii) For the purpose of expediting the consideration

18 and enactment of joint resolutions under this paragraph,

19 a motion to proceed to the consideration of any such joint

20 resolution after it has been reported by the appropriate

21 committee shall be treated as highly privileged in the

22 House of Representatives.’’.

23 (c) COMMERCIAL SALES.—Section 36(c)(2) of such

24 Act (22 U.S.C. 2753(c)(2)) is amended by amending sub25 paragraphs (A) and (B) to read as follows:
30

•HR 1563 IH

1 ‘‘(A) in the case of a license for an export to

2 the North Atlantic Treaty Organization, any mem3 ber country of that Organization or Australia,

4 Japan, or New Zealand, shall not be issued until at

5 least 15 calendar days after the Congress receives

6 such certification, and shall not be issued then if the

7 Congress, within that 15-day period, enacts a joint

8 resolution prohibiting the proposed export; and

9 ‘‘(B) in the case of any other license, shall not

10 be issued until at least 30 calendar days after the

11 Congress receives such certification, and shall not be

12 issued then if the Congress, within that 30-day pe13 riod, enacts a joint resolution prohibiting the pro14 posed export.’’.

15 (d) COMMERCIAL MANUFACTURING AGREEMENTS.—

16 Section 36(d) of such Act (22 U.S.C. 2753(d)) is

17 amended—

18 (1) by inserting ‘‘(1)’’ after ‘‘(d)’’;

19 (2) by striking ‘‘for or in a country not a mem20 ber of the North Atlantic Treaty Organization’’; and

21 (3) by adding at the end the following:

22 ‘‘(2) A certification under this subsection shall be

23 submitted—

24 ‘‘(A) at least 15 days before approval is given

25 in the case of an agreement for or in a country
31

•HR 1563 IH

1 which is a member of the North Atlantic Treaty Or2 ganization or Australia, Japan, or New Zealand; and

3 ‘‘(B) at least 30 days before approval is given

4 in the case of an agreement for or in any other

5 country;

6 unless the President states in his certification that an

7 emergency exists which requires the immediate approval

8 of the agreement in the national security interests of the

9 United States.

10 ‘‘(3) If the President states in his certification that

11 an emergency exists which requires the immediate ap12 proval of the agreement in the national security interests

13 of the United States, thus waiving the requirements of

14 paragraph (4), he shall set forth in the certification a de15 tailed justification for his determination, including a de16 scription of the emergency circumstances which neces17 sitate the immediate approval of the agreement and a dis18 cussion of the national security interests involved.

19 ‘‘(4) Approval for an agreement subject to paragraph

20 (1) may not be given under section 38 if the Congress,

21 within the 15-day or 30-day period specified in paragraph

22 (2)(A) or (B), as the case may be, enacts a joint resolution

23 prohibiting such approval.

24 ‘‘(5)(A) Any joint resolution under paragraph (4)

25 shall be considered in the Senate in accordance with the
32

•HR 1563 IH

1 provisions of section 601(b) of the International Security

2 Assistance and Arms Export Control Act of 1976.

3 ‘‘(B) For the purpose of expediting the consideration

4 and enactment of joint resolutions under paragraph (4),

5 a motion to proceed to the consideration of any such joint

6 resolution after it has been reported by the appropriate

7 committee shall be treated as highly privileged in the

8 House of Representatives.’’.

9 (e) GOVERNMENT-TO-GOVERNMENT LEASES.—

10 (1) CONGRESSIONAL REVIEW PERIOD.—Section

11 62 of such Act (22 U.S.C. 2796a) is amended—

12 (A) in subsection (a), by striking ‘‘Not less

13 than 30 days before’’ and inserting ‘‘Before’’;

14 (B) in subsection (b)—

15 (i) by striking ‘‘determines, and im16 mediately reports to the Congress’’ and in17 serting ‘‘states in his certification,’’; and

18 (ii) by adding at the end of the sub19 section the following: ‘‘If the President

20 states in his certification that such an

21 emergency exists, he shall set forth in the

22 certification a detailed justification for his

23 determination, including a description of

24 the emergency circumstances which neces25 sitate that the lease be entered into imme-
33

•HR 1563 IH

1 diately and a discussion of the national se2 curity interests involved.’’; and

3 (C) by adding at the end of the section the

4 following:

5 ‘‘(c) The certification required by subsection (a) shall

6 be transmitted—

7 ‘‘(1) not less than 15 calendar days before the

8 agreement is entered into or renewed in the case of

9 an agreement with the North Atlantic Treaty Orga10 nization, any member country of that Organization

11 or Australia, Japan, or New Zealand; and

12 ‘‘(2) not less than 30 calendar days before the

13 agreement is entered into or renewed in the case of

14 an agreement with any other organization or coun15 try.’’.

16 (2) CONGRESSIONAL VETO.—Section 63(a) of

17 such Act (22 U.S.C. 2796b(a)) is amended—

18 (A) by striking ‘‘(a)(1)’’ and inserting

19 ‘‘(a)’’;

20 (B) by striking out the ‘‘30 calendar days

21 after receiving the certification with respect to

22 that proposed agreement pursuant to section

23 62(a),’’ and inserting in lieu thereof ‘‘the 15-

24 day or 30-day period specified in section 62(c)

25 (1) or (2), as the case may be,’’; and
34

•HR 1563 IH

1 (C) by striking paragraph (2).

2 (f) EFFECTIVE DATE.—The amendments made by

3 this section apply with respect to certifications required

4 to be submitted on or after the date of the enactment of

5 this Act.

6 SEC. 3182. STANDARDIZATION OF THIRD COUNTRY TRANS7 FERS OF DEFENSE ARTICLES.

8 Section 3 of the Arms Export Control Act (22 U.S.C.

9 2753) is amended by inserting after subsection (a) the fol10 low new subsection:

11 ‘‘(b) The consent of the President under paragraph

12 (2) of subsection (a) or under the third sentence of such

13 subsection shall not be required for the transfer by a for14 eign country or international organization of defense arti15 cles sold by the United States under this Act if—

16 ‘‘(1) such articles constitute components incor17 porated into foreign defense articles;

18 ‘‘(2) the recipient is the government of a mem19 ber country of the North Atlantic Treaty Organiza20 tion, the Government of Australia, the Government

21 of Japan, or the Government of New Zealand;

22 ‘‘(3) the United States-origin components are

23 not—

24 ‘‘(A) significant military equipment (as de25 fined in section 47(9));
35

•HR 1563 IH

1 ‘‘(B) defense articles for which notification

2 to Congress is required under section 36(b);

3 and

4 ‘‘(C) identified by regulation as Missile

5 Technology Control Regime items; and

6 ‘‘(4) the foreign country or international orga7 nization provides notification of the transfer of the

8 defense articles to the United States Government

9 not later than 30 days after the date of such trans10 fer.’’.

11 SEC. 3183. INCREASED STANDARDIZATION, RATIONALIZA12 TION, AND INTEROPERABILITY OF ASSIST13 ANCE AND SALES PROGRAMS.

14 Paragraph (6) of section 515(a) of the Foreign As15 sistance Act of 1961 (22 U.S.C. 2321i(a)(6)) is amended

16 by striking ‘‘among members of the North Atlantic Treaty

17 Organization and with the Armed Forces of Japan, Aus18 tralia, and New Zealand’’.

19 SEC. 3184. REPEAL OF PRICE AND AVAILABILITY REPORT20 ING REQUIREMENT RELATING TO PROPOSED

21 SALE OF DEFENSE ARTICLES AND SERVICES.

22 (a) IN GENERAL.—Section 28 of the Arms Export

23 Control Act (22 U.S.C. 2768) is hereby repealed.
36

•HR 1563 IH

1 (b) CONFORMING AMENDMENT.—Section 36(b) of

2 such Act (22 U.S.C. 2776(b)) is amended by striking

3 paragraph (4) of such section.

4 SEC. 3185. DEFINITION OF SIGNIFICANT MILITARY EQUIP5 MENT.

6 Section 47 of the Arms Export Control Act (22

7 U.S.C. 2794) is amended—

8 (1) in paragraph (7), by striking ‘‘and’’ at the

9 end;

10 (2) in paragraph (8), by striking the period at

11 the end and inserting ‘‘; and’’; and

12 (3) by adding at the end the following new

13 paragraph:

14 ‘‘(9) ‘significant military equipment’ means articles—

15 ‘‘(A) for which special export controls are war16 ranted because of the capacity of such articles for

17 substantial military utility or capability; and

18 ‘‘(B) identified as items on the United States

19 Munitions List.’’.

20 SEC. 3186. ELIMINATION OF SPECIAL DEFENSE ACQUISI21 TION FUND ANNUAL REPORT.

22 (a) IN GENERAL.—Section 53 of the Arms Export

23 Control Act (22 U.S.C. 2795b) is hereby repealed.
37

•HR 1563 IH

1 (b) CONFORMING AMENDMENT.—Section 51(a)(4) of

2 such Act (22 U.S.C. 2795(a)(4)) is amended by striking

3 subparagraph (B) of such section.

4 SEC. 3187. COST OF LEASED DEFENSE ARTICLES THAT

5 HAVE BEEN LOST OR DESTROYED.

6 Section 61(a)(3) of the Arms Export Control Act (22

7 U.S.C. 2796(a)) is amended by striking ‘‘and the replace8 ment cost’’ and all that follows and inserting the following:

9 ‘‘and, if the articles are lost or destroyed while leased—

10 ‘‘(A) in the event the United States in11 tends to replace the articles lost or destroyed,

12 the replacement cost (less any depreciation in

13 the value) of the articles; or

14 ‘‘(B) in the event the United States does

15 not intend to replace the articles lost or de16 stroyed, an amount not less than the actual

17 value (less any depreciation in the value) speci18 fied in the lease agreement.’’.

19 SEC. 3188. DESIGNATION OF MAJOR NON-NATO ALLIES.

20 (a) DESIGNATION.—

21 (1) NOTICE TO CONGRESS.—Chapter 2 of part

22 II of the Foreign Assistance Act of 1961 (22 U.S.C.

23 2311 et seq.) is amended by adding at the end the

24 following new section:
38

•HR 1563 IH

1 ‘‘SEC. 520. DESIGNATION OF MAJOR NON-NATO ALLIES.

2 ‘‘(a) NOTICE TO CONGRESS.—The President shall no3 tify the Congress in writing at least 30 days before—

4 ‘‘(1) designating a country as a major non5 NATO ally for purposes of this Act and the Arms

6 Export Control Act (22 U.S.C. 2751 et seq.); or

7 ‘‘(2) terminating such a designation.

8 ‘‘(b) INITIAL DESIGNATIONS.—Australia, Egypt, Is9 rael, Japan, the Republic of Korea, and New Zealand shall

10 be deemed to have been so designated by the President

11 as of the effective date of this section, and the President

12 is not required to notify the Congress of such designation

13 of those countries.’’.

14 (2) DEFINITION.—Section 644 of such Act (22

15 U.S.C. 2403) is amended by adding at the end the

16 following:

17 ‘‘(q) ‘Major non-NATO ally’ means a country which

18 is designated in accordance with section 520 as a major

19 non-NATO ally for purposes of this Act and the Arms Ex20 port Control Act (22 U.S.C. 2751 et seq.).’’.

21 (3) EXISTING DEFINITIONS.—(A) The last sen22 tence of section 21(g) of the Arms Export Control

23 Act (22 U.S.C. 2761(g)) is repealed.

24 (B) Section 65(d) of such Act is amended—

25 (i) by striking ‘‘or major non-NATO’’; and
39

•HR 1563 IH

1 (ii) by striking out ‘‘or a’’ and all that fol2 lows through ‘‘Code’’.

3 (b) COOPERATIVE TRAINING AGREEMENTS.—Section

4 21(g) of the Arms Export Control Act (22 U.S.C.

5 2761(g)) is amended in the first sentence by striking

6 ‘‘similar agreements’’ and all that follows through ‘‘other

7 countries’’ and inserting ‘‘similar agreements with coun8 tries’’.

9 SEC. 3189. CERTIFICATION THRESHOLDS.

10 (a) INCREASE IN DOLLAR THRESHOLDS.—The Arms

11 Export Control Act (22 U.S.C. 2751 et seq.) is amended—

12 (1) in section 3(d) (22 U.S.C. 2753(d))—

13 (A) in paragraphs (1) and (3), by striking

14 ‘‘$14,000,000’’ each place it appears and in15 serting ‘‘$25,000,000’’; and

16 (B) in paragraphs (1) and (3), by striking

17 ‘‘$50,000,000’’ each place it appears and in18 serting ‘‘$75,000,000’’;

19 (2) in section 36 (22 U.S.C. 2776)—

20 (A) in subsections (b)(1), (b)(5)(C), and

21 (c)(1), by striking ‘‘14,000,000’’ each place it

22 appears and inserting ‘‘25,000,000’’;

23 (B) in subsections (b)(1), (b)(5)(C), and

24 (c)(1), by striking ‘‘50,000,000’’ each place it

25 appears and inserting ‘‘75,000,000’’; and
40

•HR 1563 IH

1 (C) in subsections (b)(1) and (b)(5)(C), by

2 striking ‘‘200,000,000’’ each place it appears

3 and inserting ‘‘300,000,000’’; and

4 (3) in section 63(a)(1) (22 U.S.C.

5 2796b(a)(1))—

6 (A) by striking ‘‘14,000,000’’ and inserting

7 ‘‘25,000,000’’; and

8 (B) by striking ‘‘$50,000,000’’ and insert9 ing ‘‘75,000,000’’.

10 (b) EFFECTIVE DATE.—The amendments made by

11 subsection (a) apply with respect to certifications submit12 ted on or after the date of the enactment of this Act.

13 SEC. 3190. COMPETITIVE PRICING FOR SALES OF DEFENSE

14 ARTICLES AND SERVICES.

15 (a) COSTING BASIS.—Section 22 of the Arms Export

16 Control Act (22 U.S.C. 2762) is amended by adding at

17 the end the following:

18 ‘‘(d) COMPETITIVE PRICING.—Procurement con19 tracts made in implementation of sales under this section

20 for defense articles and defense services wholly paid from

21 funds made available on a nonrepayable basis shall be

22 priced on the same costing basis with regard to profit,

23 overhead, independent research and development, bid and

24 proposal, and other costing elements, as is applicable to
41

•HR 1563 IH

1 procurements of like items purchased by the Department

2 of Defense for its own use.’’.

3 (b) EFFECTIVE DATE AND IMPLEMENTING REGULA4 TIONS.—Section 22(d) of the Arms Export Control Act,

5 as added by subsection (a)—

6 (1) shall take effect on the 60th day following

7 the date of the enactment of this Act;

8 (2) shall be applicable only to contracts made in

9 implementation of sales made after such effective

10 date; and

11 (3) shall be implemented by revised procure12 ment regulations, which shall be issued prior to such

13 effective date.

14 SEC. 3191. DEPLETED URANIUM AMMUNITION.

15 Chapter 1 of part III of the Foreign Assistance Act

16 of 1961 (22 U.S.C. 2370 et seq.) is amended by adding

17 at the end the following new section:

18 ‘‘SEC. 620G. DEPLETED URANIUM AMMUNITION.

19 ‘‘(a) PROHIBITION.—Except as provided in sub20 section (b), none of the funds made available to carry out

21 this Act or any other Act may be made available to facili22 tate in any way the sale of M–833 antitank shells or any

23 comparable antitank shells containing a depleted uranium

24 penetrating component to any country other than—
42

•HR 1563 IH

1 ‘‘(1) a country that is a member of the North

2 Atlantic Treaty Organization;

3 ‘‘(2) a country that has been designated as a

4 major non-NATO ally (as defined in section 644(q));

5 or

6 ‘‘(3) Taiwan.

7 ‘‘(b) EXCEPTION.—The prohibition contained in sub8 section (a) shall not apply with respect to the use of funds

9 to facilitate the sale of antitank shells to a country if the

10 President determines that to do so is in the national secu11 rity interest of the United States.’’.

12 TITLE XXXII—ECONOMIC

13 ASSISTANCE

14 CHAPTER 1—ECONOMIC SUPPORT

15 ASSISTANCE

16 SEC. 3201. ECONOMIC SUPPORT FUND.

17 Section 532(a) of the Foreign Assistance Act of 1961

18 (22 U.S.C. 2346a(a)) is amended to read as follows:

19 ‘‘(a) There are authorized to be appropriated to the

20 President to carry out the purposes of this chapter

21 $2,346,378,000 for fiscal year 1996 and $2,273,478,000

22 for fiscal year 1997.’’.

23 SEC. 3202. ASSISTANCE FOR ISRAEL.

24 (a) MINIMUM ALLOCATION.—Of the amounts made

25 available for fiscal years 1996 and 1997 for assistance
43

•HR 1563 IH

1 under chapter 4 of part II of the Foreign Assistance Act

2 of 1961 (22 U.S.C. 2346 et seq.; relating to the economic

3 support fund), not less than $1,200,000,000 for each such

4 fiscal year shall be available only for Israel.

5 (b) TERMS OF ASSISTANCE.—

6 (1) CASH TRANSFER.—The total amount of

7 funds allocated for Israel for each fiscal year under

8 subsection (a) shall be made available on a grant

9 basis as a cash transfer.

10 (2) EXPEDITED DISBURSEMENT.—Such funds

11 shall be disbursed—

12 (A) with respect to fiscal year 1996, not

13 later than 30 days after the date of the enact14 ment of the Foreign Operations, Export Fi15 nancing, and Related Programs Appropriations

16 Act, 1996, or by October 31, 1995, whichever

17 is later; and

18 (B) with respect to fiscal year 1997, not

19 later than 30 days after the date of the enact20 ment of the Foreign Operations, Export Fi21 nancing, and Related Programs Appropriations

22 Act, 1997, or by October 31, 1996, whichever

23 is later.

24 (3) ADDITIONAL REQUIREMENT.—In exercising

25 the authority of this subsection, the President shall
44

•HR 1563 IH

1 ensure that the amount of funds provided as a cash

2 transfer to Israel does not cause an adverse impact

3 on the total level of nonmilitary exports from the

4 United States to Israel.

5 SEC. 3203. ASSISTANCE FOR EGYPT.

6 (a) MINIMUM ALLOCATION.—Of the amounts made

7 available for fiscal years 1996 and 1997 for assistance

8 under chapter 4 of part II of the Foreign Assistance Act

9 of 1961 (22 U.S.C. 2346 et seq.; relating to the economic

10 support fund), not less than $815,000,000 for each such

11 fiscal year shall be available only for Egypt.

12 (b) ADDITIONAL REQUIREMENT.—In exercising the

13 authority of this section, the President shall ensure that

14 the amount of funds provided as a cash transfer to Egypt

15 does not cause an adverse impact on the total level of non16 military exports from the United States to Egypt.

17 SEC. 3204. INTERNATIONAL FUND FOR IRELAND.

18 (a) FUNDING.—

19 (1) IN GENERAL.—Of the amounts made avail20 able for fiscal years 1996 and 1997 for assistance

21 under chapter 4 of part II of the Foreign Assistance

22 Act of 1961 (22 U.S.C. 2346 et seq.; relating to the

23 economic support fund), not less than $29,600,000

24 for fiscal year 1996 and not less than $19,600,000

25 for fiscal year 1997 shall be available for the United
45

•HR 1563 IH

1 States contribution to the International Fund for

2 Ireland in accordance with the Anglo-Irish Agree3 ment Support Act of 1986 (Public Law 99–415).

4 (2) AVAILABILITY.—Amounts made available

5 under paragraph (1) are authorized to remain avail6 able until expended.

7 (b) ADDITIONAL REQUIREMENTS.—

8 (1) PURPOSES.—Section 2(b) of the Anglo-Irish

9 Agreement Support Act of 1986 (Public Law 99–

10 415; 100 Stat. 947) is amended by adding at the

11 end the following new sentences: ‘‘United States con12 tributions shall be used in a manner that effectively

13 increases employment opportunities in communities

14 with rates of unemployment significantly higher than

15 the local or urban average of unemployment in

16 Northern Ireland. In addition, such contributions

17 shall be used to benefit individuals residing in such

18 communities.’’.

19 (2) CONDITIONS AND UNDERSTANDINGS.—Sec20 tion 5(a) of such Act is amended—

21 (A) in the first sentence—

22 (i) by striking ‘‘The United States’’

23 and inserting the following:

24 ‘‘(1) IN GENERAL.—The United States’’;
46

•HR 1563 IH

1 (ii) by striking ‘‘in this Act may be

2 used’’ and inserting the following: ‘‘in this

3 Act—

4 ‘‘(A) may be used’’;

5 (iii) by striking the period and insert6 ing ‘‘; and’’; and

7 (iv) by adding at the end the follow8 ing:

9 ‘‘(B) may be provided to an individual or

10 entity in Northern Ireland only if such individ11 ual or entity is in compliance with the prin12 ciples of economic justice.’’; and

13 (B) in the second sentence, by striking

14 ‘‘The restrictions’’ and inserting the following:

15 ‘‘(2) ADDITIONAL REQUIREMENTS.—The re16 strictions’’.

17 (3) PRIOR CERTIFICATIONS.—Section 5(c)(2) of

18 such Act is amended—

19 (A) in subparagraph (A), by striking

20 ‘‘principle of equality’’ and all that follows and

21 inserting ‘‘principles of economic justice; and’’;

22 and

23 (B) in subparagraph (B), by inserting be24 fore the period at the end the following: ‘‘and

25 will create employment opportunities in regions
47

•HR 1563 IH

1 and communities of Northern Ireland suffering

2 the highest rates of unemployment’’.

3 (4) ANNUAL REPORTS.—Section 6 of such Act

4 is amended—

5 (A) in paragraph (2), by striking ‘‘and’’ at

6 the end;

7 (B) in paragraph (3), by striking the pe8 riod and inserting ‘‘; and’’; and

9 (C) by adding at the end the following new

10 paragraph:

11 ‘‘(4) each individual or entity receiving assist12 ance from United States contributions to the Inter13 national Fund has agreed in writing to comply with

14 the principles of economic justice.’’.

15 (5) DEFINITIONS.—Section 8 of such Act is

16 amended—

17 (A) in paragraph (1), by striking ‘‘and’’ at

18 the end;

19 (B) in paragraph (2), by striking the pe20 riod at the end and inserting a semicolon; and

21 (C) by adding at the end the following new

22 paragraphs:

23 ‘‘(3) the term ‘Northern Ireland’ includes the

24 counties of Antrim, Armagh, Derry, Down, Tyrone,

25 and Fermanagh; and
48

•HR 1563 IH

1 ‘‘(4) the term ‘principles of economic justice’

2 means the following principles:

3 ‘‘(A) Increasing the representation of indi4 viduals from underrepresented religious groups

5 in the workforce, including managerial, super6 visory, administrative, clerical, and technical

7 jobs.

8 ‘‘(B) Providing adequate security for the

9 protection of minority employees at the work10 place.

11 ‘‘(C) Banning provocative sectarian or po12 litical emblems from the workplace.

13 ‘‘(D) Providing that all job openings be ad14 vertised publicly and providing that special re15 cruitment efforts be made to attract applicants

16 from underrepresented religious groups.

17 ‘‘(E) Providing that layoff, recall, and ter18 mination procedures do not favor a particular

19 religious group.

20 ‘‘(F) Abolishing job reservations, appren21 ticeship restrictions, and differential employ22 ment criteria which discriminate on the basis of

23 religion.

24 ‘‘(G) Providing for the development of

25 training programs that will prepare substantial
49

•HR 1563 IH

1 numbers of minority employees for skilled jobs,

2 including the expansion of existing programs

3 and the creation of new programs to train, up4 grade, and improve the skills of minority em5 ployees.

6 ‘‘(H) Establishing procedures to assess,

7 identify, and actively recruit minority employees

8 with the potential for further advancement.

9 ‘‘(I) Providing for the appointment of a

10 senior management staff member to be respon11 sible for the employment efforts of the entity

12 and, within a reasonable period of time, the im13 plementation of the principles described in sub14 paragraphs (A) through (H).’’.

15 (6) EFFECTIVE DATE.—The amendments made

16 by this subsection shall take effect 180 days after

17 the date of the enactment of this Act.

18 SEC. 3205. LAW ENFORCEMENT ASSISTANCE.

19 (a) IN GENERAL.—Of the amounts made available

20 for fiscal years 1996 and 1997 for assistance under chap21 ter 4 of part II of the Foreign Assistance Act of 1961

22 (22 U.S.C. 2346 et seq.; relating to the economic support

23 fund), not more than $12,000,000 for each such fiscal

24 year shall be available for law enforcement assistance
50

•HR 1563 IH

1 under chapter 8 of part I of such Act (22 U.S.C. 2291

2 et seq.).

3 (b) AVAILABILITY.—Amounts made available under

4 subsection (a) are authorized to remain available until ex5 pended.

6 CHAPTER 2—ASSISTANCE FOR PRIVATE

7 SECTOR PROGRAMS AND ACTIVITIES

8 SEC. 3211. PRIVATE SECTOR ENTERPRISE FUNDS.

9 The Foreign Assistance Act of 1961 (22 U.S.C. 2151

10 et seq.) is amended by inserting after section 601 the fol11 lowing new section:

12 ‘‘SEC. 601A. PRIVATE SECTOR ENTERPRISE FUNDS.

13 ‘‘(a) AUTHORITY.—(1) The President may provide

14 funds and support to Enterprise Funds designated in ac15 cordance with subsection (b) that are or have been estab16 lished for the purposes of promoting—

17 ‘‘(A) development of the private sectors of eligi18 ble countries, including small businesses, the agricul19 tural sector, and joint ventures with United States

20 and host country participants; and

21 ‘‘(B) policies and practices conducive to private

22 sector development in eligible countries;

23 on the same basis as funds and support may be provided

24 with respect to Enterprise Funds for Poland and Hungary
51

•HR 1563 IH

1 under the Support for East European Democracy (SEED)

2 Act of 1989 (22 U.S.C. 5401 et seq.).

3 ‘‘(2) Funds may be made available under this section

4 notwithstanding any other provision of law.

5 ‘‘(b) COUNTRIES ELIGIBLE FOR ENTERPRISE

6 FUNDS.—(1) Except as provided in paragraph (2), the

7 President is authorized to designate a private, nonprofit

8 organization as eligible to receive funds and support pur9 suant to this section with respect to any country eligible

10 to receive assistance under part I of this Act in the same

11 manner and with the same limitations as set forth in sec12 tion 201(d) of the Support for East European Democracy

13 (SEED) Act of 1989 (22 U.S.C. 5421(d)).

14 ‘‘(2) The authority of paragraph (1) shall not apply

15 to any country with respect to which the President is au16 thorized to designate an enterprise fund under section

17 498B(c) or section 498C of this Act or section 201 of the

18 Support for East European Democracy (SEED) Act of

19 1989 (22 U.S.C. 5421).

20 ‘‘(c) TREATMENT EQUIVALENT TO ENTERPRISE

21 FUNDS FOR POLAND AND HUNGARY.—Except as other22 wise specifically provided in this section, the provisions

23 contained in section 201 of the Support for East Euro24 pean Democracy (SEED) Act of 1989 (22 U.S.C. 5421)

25 (excluding the authorizations of appropriations provided
52

•HR 1563 IH

1 in subsection (b) of that section) shall apply to any Enter2 prise Fund that receives funds and support under this sec3 tion. The officers, members, or employees of an Enterprise

4 Fund that receive funds and support under this section

5 shall enjoy the same status under law that is applicable

6 to officers, members, or employees of the Enterprise

7 Funds for Poland and Hungary under section 201 of the

8 Support for East European Democracy (SEED) Act of

9 1989 (22 U.S.C. 5421).

10 ‘‘(d) REPORTING REQUIREMENT.—Notwithstanding

11 any other provision of this section, the requirement of sec12 tion 201(p) of the Support for East European Democracy

13 (SEED) Act of 1989 (22 U.S.C. 5421(p)), that an Enter14 prise Fund shall be required to publish an annual report

15 not later than January 31 each year, shall not apply with

16 respect to an Enterprise Fund that receives funds and

17 support under this section for the first twelve months after

18 it is designated as eligible to receive such funds and sup19 port.

20 ‘‘(e) FUNDING.—

21 ‘‘(1) IN GENERAL.—Amounts made available

22 for a fiscal year to carry out chapter 1 of part I of

23 this Act (relating to development assistance) and to

24 carry out chapter 4 of part II of this Act (relating

25 to the economic support fund) shall be available for
53

•HR 1563 IH

1 such fiscal year to carry out this section, in addition

2 to amounts otherwise available for such purposes.

3 ‘‘(2) AFRICAN DEVELOPMENT.—In addition to

4 amounts available under paragraph (1) for a fiscal

5 year, amounts made available for such fiscal year to

6 carry out chapter 10 of part I of this Act (relating

7 to the Development Fund for Africa) shall be avail8 able for such fiscal year to carry out this section

9 with respect to countries in Africa.’’.

10 SEC. 3212. TRANS-CAUCASUS ENTERPRISE FUNDS.

11 Chapter 11 of part I of the Foreign Assistance Act

12 of 1961 (22 U.S.C. 2295 et seq.) is amended—

13 (1) by redesignating section 498C as section

14 498D; and

15 (2) by inserting after section 498B the follow16 ing new section:

17 ‘‘SEC. 498C. TRANS-CAUCASUS ENTERPRISE FUNDS.

18 ‘‘(a) AUTHORITY.—The President may provide funds

19 and support in accordance with section 498B(c) to Enter20 prise Funds that are or have been established for the pur21 poses of promoting—

22 ‘‘(1) development of the private sectors of coun23 tries in the Trans-Caucasus region of the former So24 viet Union, including small businesses, the agricul-
54

•HR 1563 IH

1 tural sector, and joint ventures with United States

2 and host country participants; and

3 ‘‘(2) policies and practices conducive to private

4 sector development in countries in the Trans5 Caucasus region of the former Soviet Union.

6 ‘‘(b) REPORTING REQUIREMENT.—Notwithstanding

7 any other provision of this section, the requirement of sec8 tion 201(p) of the Support for East European Democracy

9 (SEED) Act of 1989 (22 U.S.C. 5421(p)), that an Enter10 prise Fund shall be required to publish an annual report

11 not later than January 31 each year, shall not apply with

12 respect to an Enterprise Fund that receives funds and

13 support under this section for the first twelve months after

14 it is designated as eligible to receive such funds and sup15 port.’’.

16 SEC. 3213. MICRO- AND SMALL ENTERPRISE DEVELOPMENT

17 CREDITS.

18 (a) IN GENERAL.—Section 108 of the Foreign Assist19 ance Act of 1961 (22 U.S.C. 2151f) is amended to read

20 as follows:

21 ‘‘SEC. 108. MICRO- AND SMALL ENTERPRISE DEVELOPMENT

22 CREDITS.

23 ‘‘(a) FINDINGS AND POLICY.—The Congress finds

24 and declares that—
55

•HR 1563 IH

1 ‘‘(1) the development of micro- and small enter2 prise, including cooperatives, is a vital factor in the

3 stable growth of developing countries and in the de4 velopment and stability of a free, open, and equi5 table international economic system;

6 ‘‘(2) it is, therefore, in the best interests of the

7 United States to assist the development of the pri8 vate sector in developing countries and to engage the

9 United States private sector in that process;

10 ‘‘(3) the support of private enterprise can be

11 served by programs providing credit, training, and

12 technical assistance for the benefit of micro- and

13 small enterprises; and

14 ‘‘(4) programs that provide credit, training, and

15 technical assistance to private institutions can serve

16 as a valuable complement to grant assistance pro17 vided for the purpose of benefiting micro- and small

18 private enterprise.

19 ‘‘(b) PROGRAM.—To carry out the policy set forth in

20 subsection (a), the President is authorized to provide as21 sistance to increase the availability of credit to micro- and

22 small enterprises lacking full access to credit, including

23 through—
56

•HR 1563 IH

1 ‘‘(1) loans and guarantees to credit institutions

2 for the purpose of expanding the availability of cred3 it to micro- and small enterprises;

4 ‘‘(2) training programs for lenders in order to

5 enable them to better meet the credit needs of

6 micro- and small entrepreneurs; and

7 ‘‘(3) training programs for micro- and small en8 trepreneurs in order to enable them to make better

9 use of credit and to better manage their enter10 prises.’’.

11 (b) AUTHORIZATION OF APPROPRIATIONS.—

12 (1) IN GENERAL.—(A) There is authorized to

13 be appropriated to carry out section 108 of the For14 eign Assistance Act of 1961, in addition to funds

15 otherwise available for such purposes, $2,000,000

16 for each of the fiscal years 1996 and 1997. Funds

17 authorized to be appropriated under this subsection

18 shall be made available for the subsidy cost, as de19 fined in section 502(5) of the Federal Credit Reform

20 Act of 1990, for activities under section 108 of the

21 Foreign Assistance Act of 1961.

22 (B) In addition, there are authorized to be ap23 propriated $500,000 for each of the fiscal years

24 1996 and 1997 for the cost of training programs
57

•HR 1563 IH

1 and administrative expenses to carry out such sec2 tion.

3 (2) AVAILABILITY OF AMOUNTS.—Amounts au4 thorized to be appropriated under paragraph (1) are

5 authorized to remain available until expended.

6 SEC. 3214. MICROENTERPRISE DEVELOPMENT GRANTS.

7 Chapter 1 of part I of the Foreign Assistance Act

8 of 1961 (22 U.S.C. 2151 et seq.) is amended by adding

9 at the end the following new section:

10 ‘‘SEC. 129. MICROENTERPRISE DEVELOPMENT

11 GRANTS.—(a)(1) In carrying out this part, the adminis12 trator of the agency primarily responsible for administer13 ing this part is authorized to provide grant assistance for

14 programs of credit and other assistance for

15 microenterprises in developing countries.

16 ‘‘(2) Assistance authorized under paragraph (1) shall

17 be provided through the following organizations that have

18 a capacity to develop and implement microenterprise pro19 grams:

20 ‘‘(A) United States and indigenous private and

21 voluntary organizations.

22 ‘‘(B) United States and indigenous credit

23 unions and cooperative organizations.

24 ‘‘(C) Other indigenous governmental and non25 governmental organizations.
58

•HR 1563 IH

1 ‘‘(3) A significant portion of assistance authorized

2 under paragraph (1) shall be used for poverty lending pro3 grams which—

4 ‘‘(A) meet the needs of the very poor members

5 of society, particularly poor women; and

6 ‘‘(B) provide loans of $300 or less in 1995

7 United States dollars to such poor members of

8 society.

9 ‘‘(4) The administrator of the agency primarily re10 sponsible for administering this part shall strengthen ap11 propriate mechanisms, including mechanisms for central

12 microenterprise programs, for the purpose of—

13 ‘‘(A) providing technical support for field mis14 sions;

15 ‘‘(B) strengthening the institutional develop16 ment of the intermediary organizations described in

17 paragraph (2); and

18 ‘‘(C) sharing information relating to the provi19 sion of assistance authorized under paragraph (1)

20 between such field missions and intermediary organi21 zations.

22 ‘‘(b) In order to maximize the sustainable develop23 ment impact of the assistance authorized under subsection

24 (a)(1), the administrator of the agency primarily respon-
59

•HR 1563 IH

1 sible for administering this part shall establish a monitor2 ing system that—

3 ‘‘(1) establishes performance goals for such as4 sistance and expresses such goals in an objective and

5 quantifiable form, to the extent feasible;

6 ‘‘(2) establishes performance indicators to be

7 used in measuring or assessing the achievement of

8 the goals and objectives of such assistance; and

9 ‘‘(3) provides a basis for recommendations for

10 adjustments to such assistance to enhance the sus11 tainable development impact of such assistance, par12 ticularly the impact of such assistance on the very

13 poor, particularly poor women.’’.

14 CHAPTER 3—DEVELOPMENT ASSISTANCE

15 Subchapter A—Development Assistance

16 Authorities

17 SEC. 3221. AUTHORIZATIONS OF APPROPRIATIONS.

18 (a) IN GENERAL.—There are authorized to be appro19 priated the following amounts for the following purposes

20 (in addition to amounts otherwise available for such pur21 poses):

22 (1) DEVELOPMENT ASSISTANCE FUND.—

23 $858,000,000 for each of the fiscal years 1996 and

24 1997 to carry out sections 103 through 106 of the
60

•HR 1563 IH

1 Foreign Assistance Act of 1961 (22 U.S.C. 2151a

2 through 2151d).

3 (2) DEVELOPMENT FUND FOR AFRICA.—

4 $529,000,000 for each of the fiscal years 1996 and

5 1997 to carry out chapter 10 of part I of the For6 eign Assistance Act of 1961 (22 U.S.C. 2293 et

7 seq.).

8 (3) ASSISTANCE FOR THE INDEPENDENT

9 STATES OF THE FORMER SOVIET UNION.—

10 $700,000,000 for fiscal year 1996 and

11 $650,000,000 for fiscal year 1997 to carry out chap12 ter 11 of part I of the Foreign Assistance Act of

13 1961 (22 U.S.C. 2295 et seq.).

14 (4) ASSISTANCE FOR EAST EUROPEAN COUN15 TRIES.—$300,000,000 for fiscal year 1996 and

16 $250,000,000 for fiscal year 1997 for economic as17 sistance for Eastern Europe and the Baltic states

18 under the Foreign Assistance Act of 1961 (22

19 U.S.C. 2151 et seq.) and the Support for East Eu20 ropean Democracy (SEED) Act of 1989 (22 U.S.C.

21 5401 et seq.).

22 (5) INTER-AMERICAN FOUNDATION.—

23 $20,000,000 for fiscal year 1996 and $10,000,000

24 for fiscal year 1997 to carry out section 401 of the

25 Foreign Assistance Act of 1969 (22 U.S.C. 290f).
61

•HR 1563 IH

1 (6) AFRICAN DEVELOPMENT FOUNDATION.—

2 $10,000,000 for fiscal year 1996 and $5,000,000 for

3 fiscal year 1997 to carry out the African Develop4 ment Foundation Act (22 U.S.C. 290h et seq.).

5 (b) AVAILABILITY OF AMOUNTS.—Amounts author6 ized to be appropriated under subsection (a) are author7 ized to remain available until expended.

8 SEC. 3222. ASSISTANCE FOR FAMILY PLANNING.

9 (a) RESTRICTION ON USE OF FUNDS FOR VOL10 UNTARY POPULATION PLANNING.—Section 104(b) of the

11 Foreign Assistance Act of 1961 (22 U.S.C. 2151b(b)) is

12 amended by inserting after the first sentence the following

13 new sentence: ‘‘Such assistance shall be available only for

14 voluntary family planning projects which offer, either di15 rectly or through referral to, or information about access

16 to, a broad range of family planning methods and serv17 ices.’’.

18 (b) PROHIBITION ON USE OF FUNDS FOR VOL19 UNTARY POPULATION PLANNING TO ORGANIZATIONS OR

20 PROGRAMS SUPPORTING OR PARTICIPATING IN THE MAN21 AGEMENT OF ABORTION OF INVOLUNTARY STERILIZA22 TION PROGRAMS.—Section 104(b) of such Act (22 U.S.C.

23 2151b(b)), as amended by subsection (a), is further

24 amended—
62

•HR 1563 IH

1 (1) in the first sentence, by striking ‘‘In order

2 to’’ and inserting ‘‘(1) In order to’’; and

3 (2) by adding at the end the following new

4 paragraph:

5 ‘‘(2) None of the funds made available to carry out

6 this subsection may be made available to any organization

7 or program which, as determined by the President, sup8 ports or participates in the management of a program or

9 coercive abortion or involuntary sterilization.’’.

10 (c) PROHIBITION ON DISCRIMINATION WITH RE11 SPECT TO GRANTS FOR NATURAL FAMILY PLANNING.—

12 Section 104(b) of such Act (22 U.S.C. 2151b(b)), as

13 amended by subsections (a) and (b), is further amended

14 by adding at the end the following new paragraph:

15 ‘‘(3) In providing grants for natural family planning

16 under this subsection, the administrator of the agency pri17 marily responsible for administering this part shall not

18 discriminate against applicants because of any religious or

19 conscientious commitment by such applicants to offer only

20 natural family planning services.’’.

21 (d) CLARIFICATION WITH RESPECT TO PROHIBITION

22 ON USE OF FUNDS FOR ABORTIONS.—Section 104(f)(1)

23 of such Act (22 U.S.C. 2151b(f)(1)) is amended—

24 (1) by striking ‘‘None of the funds’’ and insert25 ing ‘‘(A) None of the funds’’; and
63

•HR 1563 IH

1 (2) by adding at the end the following new sub2 paragraph:

3 ‘‘(B) For purposes of this paragraph, the term ‘moti4 vate’ shall not be construed to prohibit the provision, con5 sistent with local law, of information and counseling con6 cerning all pregnancy options, including abortion.’’.

7 SEC. 3223. ASSISTANCE FOR THE INDEPENDENT STATES OF

8 THE FORMER SOVIET UNION.

9 (a) CONDITIONS ON ASSISTANCE .—Section 498A(b)

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

11 2295a(b)) is amended—

12 (1) in paragraph (4), by striking ‘‘or’’ at the

13 end;

14 (2) by redesignating paragraph (5) as para15 graph (8); and

16 (3) by inserting after paragraph (4) the follow17 ing new paragraphs:

18 ‘‘(5) for the government of any independent

19 state that the President determines directs any ac20 tion in violation of the territorial integrity or na21 tional sovereignty of any other new independent

22 state, such as those violations included in Principle

23 Six of the Helsinki Final Act of the Conference on

24 Security and Cooperation in Europe, except that this
64

•HR 1563 IH

1 paragraph shall not apply to the provision of such

2 assistance for purposes of—

3 ‘‘(A) humanitarian, disaster, and refugee

4 relief; or

5 ‘‘(B) assisting democratic political reform

6 and the creation of private sector nongovern7 mental organizations that are independent of

8 government ownership and control;

9 ‘‘(6) for the purpose of enhancing the military

10 capability of any independent state, except that this

11 paragraph shall not apply to demilitarization, de12 fense conversion or nonproliferation programs, or

13 programs to support troop withdrawal including

14 through the support of an officer resettlement pro15 gram, and technical assistance for the housing sec16 tor;

17 ‘‘(7) for the Government of Russia if the Presi18 dent determines that Government—

19 ‘‘(A) is not making progress in implement20 ing comprehensive economic reforms based on

21 market principles, including fostering private

22 ownership, the repayment of commercial debt,

23 the respect of commercial contracts, the equi24 table treatment of foreign private investment;

25 or
65

•HR 1563 IH

1 ‘‘(B) applies or transfers assistance pro2 vided under this chapter to any entity for the

3 purpose of expropriating or seizing ownership

4 or control of assets, investments, or ventures;

5 or’’.

6 (b) ASSISTANCE THROUGH THE PRIVATE SECTOR.—

7 Section 498B(a) of such Act (22 U.S.C. 2295b(a)) is

8 amended to read as follows:

9 ‘‘(a) ASSISTANCE THROUGH THE PRIVATE SEC10 TOR.—Assistance under this chapter shall be provided, to

11 the maximum extent feasible, through the private sector,

12 including private and voluntary organizations and other

13 nongovernmental organizations functioning in the inde14 pendent states of the former Soviet Union.’’.

15 (c) WAIVER OF CERTAIN PROVISIONS.—Section

16 498B(j)(1) of such Act (22 U.S.C. 2295b(j)(1)) is amend17 ed in the matter preceding subparagraph (A)—

18 (1) by striking ‘‘for fiscal year 1993 by this

19 chapter’’ and inserting ‘‘to carry out this chapter’’;

20 and

21 (2) by striking ‘‘appropriated for fiscal year

22 1993’’.
66

•HR 1563 IH

1 SEC. 3224. EFFECTIVENESS OF UNITED STATES DEVELOP2 MENT ASSISTANCE.

3 Chapter 1 of part I of the Foreign Assistance Act

4 of 1961 (22 U.S.C. 2251 et seq.), as amended by section

5 3214, is further amended by adding at the end the follow6 ing new section:

7 ‘‘SEC. 130. EFFECTIVENESS OF UNITED STATES DEVELOP8 MENT ASSISTANCE.

9 ‘‘(a) REPORTS.—Not later than December 31, 1996,

10 and December 31 of each third year thereafter, the Presi11 dent shall transmit to the Congress a report which ana12 lyzes, on a country-by-country basis, the impact and effec13 tiveness of the United States development assistance pro14 vided during the preceding three fiscal years. Each report

15 shall include the following for each recipient country:

16 ‘‘(1) An analysis of the impact of United States

17 development assistance during the preceding three

18 fiscal years on development in that country, with a

19 discussion of the United States interests that were

20 served by the assistance. This analysis shall be done

21 on a sector-by-sector basis to the extent possible and

22 shall identify any economic policy reforms which

23 were promoted by the assistance. This analysis

24 shall—

25 ‘‘(A) include a description, quantified to

26 the extent practicable, of the specific objectives
67

•HR 1563 IH

1 the United States sought to achieve in provid2 ing development assistance for that country;

3 and

4 ‘‘(B) specify the extent to which those ob5 jectives were not achieved, with an explanation

6 of why they were not achieved.

7 ‘‘(2) A description of the amount and nature of

8 development assistance provided by other donors

9 during the preceding three fiscal years, set forth by

10 development sector to the extent possible.

11 ‘‘(3) A discussion of the commitment of the

12 host government to addressing the country’s needs

13 in each development sector, including a description

14 of the resources devoted by that government to each

15 development sector during the preceding three fiscal

16 years.

17 ‘‘(4) A description of the trends, both favorable

18 and unfavorable, in each development sector.

19 ‘‘(5) Statistical and other information necessary

20 to evaluate the impact and effectiveness of United

21 States development assistance on development in the

22 country.

23 ‘‘(b) LISTING OF MOST AND LEAST SUCCESSFUL AS24 SISTANCE PROGRAMS.—Each report required by this sec25 tion shall identify—
68

•HR 1563 IH

1 ‘‘(1) those five countries in which United States

2 development assistance has been most successful;

3 and

4 ‘‘(2) those five countries in which United States

5 development assistance has been least successful.

6 For each country listed pursuant to paragraph (2), the

7 report shall explain why the assistance was not more suc8 cessful and shall specify what the United States has done

9 as a result.

10 ‘‘(c) REPORT TO BE A SEPARATE DOCUMENT.—

11 Each report required by this section shall be submitted

12 to the Congress as a separate document.

13 ‘‘(d) DEFINITION.—As used in this section, the terms

14 ‘United States development assistance’ and ‘development

15 assistance’ means assistance under this chapter.’’.

16 Subchapter B—Operating Expenses

17 SEC. 3231. OPERATING EXPENSES GENERALLY.

18 Section 667(a)(1) of the Foreign Assistance Act of

19 1961 (22 U.S.C. 2427(a)(1)) is amended to read as fol20 lows:

21 ‘‘(1) $465,774,000 for fiscal year 1996 and

22 $419,196,000 for fiscal year 1997 for necessary op23 erating expenses of the agency primarily responsible

24 for administering part I of this Act (other than the

25 office of the inspector general of such agency); and’’.
69

•HR 1563 IH

1 SEC. 3232. OPERATING EXPENSES OF THE OFFICE OF THE

2 INSPECTOR GENERAL.

3 Section 667(a) of the Foreign Assistance Act of 1961

4 (22 U.S.C. 2427(a)), as amended by section 317, is fur5 ther amended—

6 (1) by redesignating paragraph (2) as para7 graph (3);

8 (2) by striking ‘‘and’’ at the end of paragraph

9 (1); and

10 (3) by inserting after paragraph (1) the follow11 ing:

12 ‘‘(2) $35,206,000 for fiscal year 1996 and

13 $31,685,000 for fiscal year 1997 for necessary oper14 ating expenses of the office of the inspector general

15 of such agency; and’’.

16 CHAPTER 4—PUBLIC LAW 480

17 SEC. 3241. AUTHORIZATION OF APPROPRIATIONS.

18 (a) TITLE II.—

19 (1) IN GENERAL.—There is authorized to be

20 appropriated $821,000,000 for each of the fiscal

21 years 1996 and 1997 for the provision of agricul22 tural commodities under title II of the Agricultural

23 Trade Development and Assistance Act of 1954 (7

24 U.S.C. 1721 et seq.).
70

•HR 1563 IH

1 (2) AVAILABILITY OF AMOUNTS.—Amounts au2 thorized to be appropriated under paragraph (1) are

3 authorized to remain available until expended.

4 (b) TITLE III.—No funds are authorized to be appro5 priated for either of the fiscal years 1996 and 1997 for

6 the provision of agricultural commodities under title III

7 of such Act (7 U.S.C. 1727 et seq.).

8 CHAPTER 5—HOUSING GUARANTEE

9 PROGRAM

10 SEC. 3251. AUTHORIZATION OF APPROPRIATIONS FOR AD11 MINISTRATIVE EXPENSES.

12 (a) IN GENERAL.—There are authorized to be appro13 priated $7,000,000 for fiscal year 1996 and $6,000,000

14 for fiscal year 1997 for administrative expenses to carry

15 out guaranteed loan programs under sections 221 and 222

16 of the Foreign Assistance Act of 1961 (22 U.S.C. 2181

17 and 2182).

18 (b) AVAILABILITY.—Amounts authorized to be appro19 priated under subsection (a) are authorized to remain

20 available until expended.

21 CHAPTER 6—PEACE CORPS

22 SEC. 3261. PEACE CORPS.

23 Section 3(b) of the Peace Corps Act (22 U.S.C.

24 2502(b)) is amended to read as follows:
71

•HR 1563 IH

1 ‘‘(b) There are authorized to be appropriated to carry

2 out the purposes of this Act $219,745,000 for each of the

3 fiscal years 1996 and 1997.’’.

4 SEC. 3262. ACTIVITIES OF THE PEACE CORPS IN THE

5 FORMER SOVIET UNION.

6 (a) IN GENERAL.—Of the amounts made available

7 for fiscal years 1996 and 1997 to carry out chapter 11

8 of part I of the Foreign Assistance Act of 1961 (22 U.S.C.

9 2295 et seq.; relating to assistance for the independent

10 states of the former Soviet Union), not more than

11 $11,600,000 for each such fiscal year shall be available

12 for activities of the Peace Corps in the independent states

13 of the former Soviet Union.

14 (b) AVAILABILITY.—Amounts made available under

15 subsection (a)—

16 (1) with respect to fiscal year 1996 are author17 ized to remain available until September 30, 1997;

18 and

19 (2) with respect to fiscal year 1997 are author20 ized to remain available until September 30, 1998.

21 SEC. 3263. PROHIBITION ON USE OF FUNDS FOR ABOR22 TIONS.

23 Section 15 of the Peace Corps Act (22 U.S.C. 2514)

24 is amended by adding at the end the following new sub25 section:
72

•HR 1563 IH

1 ‘‘(e) Funds made available for the purposes of this

2 Act may not be used to pay for abortions.’’.

3 CHAPTER 7—INTERNATIONAL DISASTER

4 ASSISTANCE

5 SEC. 3271. AUTHORITY TO PROVIDE RECONSTRUCTION AS6 SISTANCE.

7 Section 491 of the Foreign Assistance Act of 1961

8 (22 U.S.C. 2292) is amended—

9 (1) in subsection (b), by striking ‘‘and rehabili10 tation’’ and inserting ‘‘, rehabilitation, and recon11 struction’’; and

12 (2) in subsection (c), by striking ‘‘and rehabili13 tation’’ and inserting ‘‘, rehabilitation, and recon14 struction’’.

15 SEC. 3272. AUTHORIZATIONS OF APPROPRIATIONS.

16 Section 492(a) of such Act (22 U.S.C. 2292a(a)) is

17 amended to read as follows:

18 ‘‘(a) There are authorized to be appropriated to the

19 President to carry out section 491, in addition to funds

20 otherwise available for such purposes, $200,000,000 for

21 each of the fiscal years 1996 and 1997.’’.
73

•HR 1563 IH

1 CHAPTER 8—OTHER PROVISIONS

2 SEC. 3281. EXEMPTION FROM RESTRICTIONS ON ASSIST3 ANCE THROUGH NONGOVERNMENTAL ORGA4 NIZATIONS.

5 Section 123(e) of the Foreign Assistance Act of 1961

6 (22 U.S.C. 2151u(e)) is amended to read as follows:

7 ‘‘(e)(1) Subject to paragraph (3), restrictions con8 tained in this Act or any other provision of law with re9 spect to assistance for a country shall not be construed

10 to restrict assistance under this chapter or chapter 10 of

11 this part in support of programs of nongovernmental orga12 nizations.

13 ‘‘(2) The President shall take into consideration, in

14 any case in which a restriction on assistance for a country

15 would be applicable but for this subsection, whether assist16 ance for programs of nongovernmental organizations is in

17 the national interest of the United States.

18 ‘‘(3) Whenever the authority of this subsection is

19 used to furnish assistance for a program of a nongovern20 mental organization, the President shall notify the con21 gressional committees specified in section 634A(a) of this

22 Act in accordance with procedures applicable to

23 reprogramming notifications under that section. Such no24 tification shall describe the program assisted, the assist-
74

•HR 1563 IH

1 ance provided, and the reasons for furnishing such assist2 ance.’’.

3 SEC. 3282. FUNDING REQUIREMENTS RELATING TO UNITED

4 STATES PRIVATE AND VOLUNTARY ORGANI5 ZATIONS.

6 (a) IN GENERAL.—Section 123(g) of the Foreign As7 sistance Act of 1961 (22 U.S.C. 2151u(g)) is amended

8 to read as follows:

9 ‘‘(g) Funds made available to carry out this chapter

10 and chapter 10 of this part may not be made available

11 to any United States private and voluntary organization,

12 except any cooperative development organization, that ob13 tains less than 20 percent of its total annual financial sup14 port for its international activities from sources other than

15 the United States Government.’’.

16 (b) EFFECTIVE DATE.—The amendment made by

17 subsection (a) apply with respect to funds made available

18 for programs of any United States private and voluntary

19 organization on or after the date of the enactment of this

20 Act.

21 SEC. 3283. DOCUMENTATION REQUESTED OF PRIVATE AND

22 VOLUNTARY ORGANIZATIONS.

23 Section 620 of the Foreign Assistance Act of 1961

24 (22 U.S.C. 2370) is amended by inserting after subsection

25 (u) the following new subsection:
75

•HR 1563 IH

1 ‘‘(v) None of the funds made available to carry out

2 this Act shall be available to any private and voluntary

3 organization which—

4 ‘‘(1) fails to provide upon timely request any

5 document, file, or record necessary to the auditing

6 requirements of the agency primarily responsible for

7 administering part I of this Act; or

8 ‘‘(2) is not registered with the agency primarily

9 responsible for administering part I of this Act.’’.

10 SEC. 3284. FOREIGN GOVERNMENT PARKING FINES.

11 (a) IN GENERAL.—Chapter 1 of part III of the For12 eign Assistance Act of 1961 (22 U.S.C. 2351 et seq.), as

13 amended by this Act, is further amended by adding at the

14 end the following new section:

15 ‘‘SEC. 620H. FOREIGN GOVERNMENT PARKING FINES.

16 ‘‘(a) IN GENERAL.—An amount equivalent to 110

17 percent of the total unpaid fully adjudicated parking fines

18 and penalties owed to the District of Columbia, Virginia,

19 Maryland, and New York by the government of a foreign

20 country as of the end of a fiscal year, as certified to the

21 President by the chief executive officer of each State or

22 District, shall be withheld from obligation for such country

23 out of funds available in the next fiscal year to carry out

24 part I of this Act, until the requirement of subsection (b)

25 is satisfied.
76

•HR 1563 IH

1 ‘‘(b) REQUIREMENT.—The requirement of this sub2 section is satisfied when the Secretary of State determines

3 and certifies to the appropriate congressional committees

4 that such fines and penalties are fully paid to the govern5 ments of the District of Columbia, Virginia, Maryland,

6 and New York.

7 ‘‘(c) APPROPRIATE CONGRESSIONAL COMMITTEES

8 DEFINED.—For purposes of this section, the term ‘appro9 priate congressional committees’ means the Committee on

10 International Relations and the Committee on Appropria11 tions of the House of Representatives and the Committee

12 on Foreign Relations and the Committee on Appropria13 tions of the Senate.’’.

14 (b) EFFECTIVE DATE.—The amendment made by

15 subsection (a) shall apply with respect to fines certified

16 as of the end of fiscal year 1995 or any fiscal year there17 after.

18 TITLE XXXIII—REGIONAL

19 PROVISIONS

20 SEC. 3301. PROHIBITION ON ASSISTANCE TO FOREIGN GOV21 ERNMENTS PROVIDING ASSISTANCE TO

22 CUBA.

23 (a) IN GENERAL.—Section 620 of the Foreign Assist24 ance Act of 1961 (22 U.S.C. 2370) is amended by insert-
77

•HR 1563 IH

1 ing after subsection (v) (as added by section 3283) the

2 following new subsection:

3 ‘‘(w)(1) No assistance may be provided under this

4 Act (other than humanitarian assistance and assistance

5 for refugees) for a fiscal year to any foreign government

6 that the President determines has provided economic as7 sistance to or engaged in nonmarket-based trade with the

8 Government of Cuba or any entity controlled by such Gov9 ernment in the preceding fiscal year.

10 ‘‘(2) The President may waive the requirements of

11 paragraph (1) if—

12 ‘‘(A) the President certifies to the congressional

13 committees specified in section 634A of this Act (in

14 accordance with procedures applicable to

15 reprogramming of funds under that section) that the

16 provision of such assistance is vital to the national

17 security of the United States; or

18 ‘‘(B) the President determines and reports to

19 the Congress that the Government of Cuba has met

20 the requirements contained in section 1708 of the

21 Cuban Democracy Act of 1992 (22 U.S.C. 6001 et

22 seq.).

23 ‘‘(3) Not later than February 1st each year, the

24 President shall prepare and transmit to the appropriate

25 congressional committees a report containing a list of all
78

•HR 1563 IH

1 foreign governments that the President has determined

2 have provided economic assistance to or engaged in

3 nonmarket-based trade with the Government of Cuba in

4 the preceding fiscal year.

5 ‘‘(4) For purposes of this subsection—

6 ‘‘(A) the term ‘appropriate congressional com7 mittees’ means the Committee on International Re8 lations and the Committee on Appropriations of the

9 House of Representatives and the Committee on

10 Foreign Relations and the Committee on Appropria11 tions of the Senate;

12 ‘‘(B) the term ‘humanitarian assistance’ means

13 food (including the monetization of food), clothing,

14 medicine, and medical supplies; and

15 ‘‘(C) the term ‘nonmarket-based trade’ includes

16 exports, imports, exchanges, or other trade arrange17 ments under which goods or services are provided on

18 terms more favorable than those generally available

19 in applicable markets or for comparable commod20 ities, including—

21 ‘‘(i) exports to the Government of Cuba on

22 terms that involve a grant, concessional price,

23 guaranty, insurance, or subsidy;

24 ‘‘(ii) imports from the Government of Cuba

25 at preferential tariff rates; and
79

•HR 1563 IH

1 ‘‘(iii) exchange arrangements that include

2 advance delivery of commodities, arrangements

3 in which the Government of Cuba is not held

4 accountable for unfulfilled exchange contracts,

5 and arrangements under which such Govern6 ment does not pay appropriate transportation,

7 insurance, or finance costs.’’.

8 (b) EFFECTIVE DATE.—

9 (1) IN GENERAL.—Except as provided in para10 graph (2), the prohibition on assistance to a foreign

11 government contained in section 620(w) of the For12 eign Assistance Act of 1961, as added by subsection

13 (a), shall apply only with respect to assistance pro14 vided in fiscal years beginning on or after the date

15 of the enactment of this Act.

16 (2) EXCEPTION.—In the case of the fiscal year

17 in which this Act is enacted, such prohibition shall

18 apply with respect to the obligation or expenditure

19 of assistance on or after the date of the enactment

20 of this Act.

21 SEC. 3302. ASSISTANCE FOR NICARAGUA.

22 (a) RESTRICTIONS.—Amounts made available for fis23 cal years 1996 and 1997 for assistance under chapter 1

24 of part I of the Foreign Assistance Act of 1961 (22 U.S.C.

25 2151 et seq.; relating to development assistance) or chap-
80

•HR 1563 IH

1 ter 4 of part II of such Act (22 U.S.C. 2346 et seq.; relat2 ing to the economic support fund), including any unobli3 gated balances of prior appropriations, may only be made

4 available to the Government of Nicaragua if the Secretary

5 of State, in consultation with the Secretary of Defense and

6 the Director of the Central Intelligence, determines and

7 certifies to the appropriate congressional committees

8 that—

9 (1) a full and independent investigation has

10 been completed of the weapons caches discovered

11 after the May 23, 1993, Santa Rosa arms cache ex12 plosion, including an investigation of passports, iden13 tity papers, and other documents found at weapons

14 sites indicating the existence of a terrorist or kid15 napping ring and that the terrorist network was not

16 involved with the February 1993 World Trade Cen17 ter bombing;

18 (2) all individuals, including government offi19 cials and members of the armed forces or security

20 forces of Nicaragua, identified by the President as

21 part of a terrorist or kidnapping ring, have been

22 prosecuted;

23 (3) Nicaragua has met the requirements set

24 forth in section 527 of the Foreign Relations Au-
81

•HR 1563 IH

1 thorization Act, Fiscal Years 1994 and 1995 (relat2 ing to expropriation of United States property);

3 (4) the timely implementation of all rec4 ommendations made by the Tripartite Commission

5 with respect to individuals responsible for assassina6 tions has been made, including the immediate sus7 pension of all individuals from the Sandinista Army

8 and security forces who were named in such rec9 ommendations, and the expeditious prosecution of

10 such individuals;

11 (5) all individuals implicated in the murders of

12 Jean Paul Genie, Arges Sequeira, and Enrique

13 Bermu ́dez have been removed from the military and

14 security forces of Nicaragua, and judicial proceed15 ings against these individuals have been completed;

16 (6) specific changes have been implemented

17 which have resulted in verifiable civilian control over

18 the Sandinista military, security forces, and police;

19 and

20 (7) there have been genuine, effective, and con21 crete reforms in the Nicaraguan judicial system.

22 (b) CONTENTS OF CERTIFICATION.—

23 (1) IN GENERAL.—A certification made pursu24 ant to subsection (a) shall include a detailed ac25 counting of all evidence in support of the determina-
82

•HR 1563 IH

1 tions listed in paragraphs (1) through (7) of such

2 subsection.

3 (2) FORM.—A certification made pursuant to

4 subsection (a) shall be submitted in unclassified

5 form, and, to the extent necessary, classified form.

6 (c) APPROPRIATE CONGRESSIONAL COMMITTEES DE7 FINED.—For purposes of this section, the term ‘‘appro8 priate congressional committees’’ means the Committee on

9 International Relations and the Committee on Appropria10 tions of the House of Representatives and the Committee

11 on Foreign Relations and the Committee on Appropria12 tions of the Senate.

13 SEC. 3303. ELIGIBILITY OF PANAMA UNDER ARMS EXPORT

14 CONTROL ACT.

15 The Government of the Republic of Panama shall be

16 eligible to purchase defense articles and defense services

17 under the Arms Export Control Act (22 U.S.C. 2751 et

18 seq.), except as otherwise specifically provided by law.

19 SEC. 3304. FUTURE OF THE UNITED STATES MILITARY

20 PRESENCE IN PANAMA.

21 (a) FINDINGS.—The Congress makes the following

22 findings:

23 (1) The Panama Canal is a vital strategic asset

24 to the United States, its allies, and the world.
83

•HR 1563 IH

1 (2) The Treaty on the Permanent Neutrality

2 and Operation of the Panama Canal signed on Sep3 tember 7, 1977, provides that Panama and the

4 United States have the responsibility to assure that

5 the Panama Canal will remain open and secure.

6 (3) Such Treaty also provides that each of the

7 two countries shall, in accordance with their respec8 tive constitutional processes, defend the Canal

9 against any threat to the regime of neutrality, and

10 consequently shall have the right to act against any

11 aggression or threat directed against the Canal or

12 against the peaceful transit of vessels through the

13 Canal.

14 (4) The United States instrument of ratifica15 tion of such Treaty includes specific language that

16 the two countries should consider negotiating future

17 arrangements or agreements to maintain military

18 forces necessary to fulfill the responsibility of the

19 two countries of maintaining the neutrality of the

20 Canal after 1999.

21 (5) The Government of Panama, in the bilateral

22 Protocol of Exchange of instruments of ratification,

23 expressly ‘‘agreed upon’’ such arrangements or

24 agreements.
84

•HR 1563 IH

1 (6) The United States Navy depends upon the

2 Panama Canal for rapid transit in times of emer3 gency, as demonstrated during World War II, the

4 Korean War, the Vietnam conflict, the Cuban Mis5 sile Crisis, and the Persian Gulf conflict.

6 (7) Drug trafficking and money laundering

7 have proliferated in the Western Hemisphere since

8 the Treaty on the Permanent Neutrality and Oper9 ation of the Panama Canal was signed on September

10 7, 1977, and such trafficking and laundering poses

11 a grave threat to peace and security in the region.

12 (8) Certain facilities now utilized by the United

13 States Armed Forces in Panama are critical to com14 bat the trade in illegal drugs.

15 (9) The United States and Panama share com16 mon policy goals such as strengthening democracy,

17 expanding economic trade, and combating illegal

18 narcotics throughout Latin America.

19 (10) The Government of Panama has dissolved

20 its military forces and has maintained only a civilian

21 police organization to defend the Panama Canal

22 against aggression.

23 (11) Certain public opinion polls in Panama

24 suggest that many Panamanians desire a continued

25 United States military presence in Panama.
85

•HR 1563 IH

1 (b) SENSE OF THE CONGRESS.—It is the sense of

2 the Congress that—

3 (1) the President should negotiate a new base

4 rights agreement with the Government of Panama—

5 (A) to allow the stationing of United

6 States Armed Forces in Panama beyond De7 cember 31, 1999; and

8 (B) to ensure that the United States will

9 be able to act appropriately, consistent with the

10 Panama Canal Treaty, the Treaty Concerning

11 the Permanent Neutrality and Operation of the

12 Panama Canal, and the resolutions of ratifica13 tion thereto, for the purpose of assuring that

14 the Panama Canal shall remain open, neutral,

15 secure, and accessible; and

16 (2) the President should consult with the Con17 gress throughout the negotiations described in para18 graph (1).

19 SEC. 3305. PEACE AND STABILITY IN THE SOUTH CHINA

20 SEA.

21 (a) FINDINGS.—The Congress finds the following:

22 (1) The South China Sea is a critically impor23 tant waterway through which 25 percent of the

24 world’s ocean freight and 70 percent of Japan’s en25 ergy supplies transit.
86

•HR 1563 IH

1 (2) The South China Sea serves as a crucial sea

2 lane for United States Navy ships moving between

3 the Pacific and Indian Oceans, particularly in time

4 of emergency.

5 (3) There are a number of competing claims to

6 territory in the South China Sea.

7 (4) The 1992 Manila Declaration adhered to by

8 the Association of South East Asian Nations, the

9 Socialist Republic of Vietnam, and the People’s Re10 public of China calls for all claimants to territory in

11 the South China Sea to resolve questions of bound12 aries through peaceful negotiations.

13 (5) The legislature of the People’s Republic of

14 China has declared the entire South China Sea to be

15 Chinese territorial waters.

16 (6) The armed forces of the People’s Republic

17 of China have asserted China’s claim to the South

18 China Sea through the kidnapping of citizens of the

19 Republic of the Philippines and the construction of

20 military bases on territory claimed by the Phil21 ippines.

22 (7) These acts of aggression committed by the

23 armed forces of the People’s Republic of China

24 against citizens of the Philippines are contrary to
87

•HR 1563 IH

1 both international law and to peace and stability in

2 East Asia.

3 (b) POLICY DECLARATIONS.—The Congress—

4 (1) declares the right of free passage through

5 the South China Sea to be vital to the national secu6 rity interests of the United States, its friends, and

7 allies;

8 (2) declares that any attempt by a

9 nondemocratic power to assert, through the use of

10 force or intimidation, its claims to territory in the

11 South China Sea to be a matter of grave concern to

12 the United States;

13 (3) calls upon the Government of the People’s

14 Republic of China to adhere faithfully to its commit15 ment under the Manila Declaration of 1992; and

16 (4) calls upon the President to review the de17 fense needs of democratic countries with claims to

18 territory in the South China Sea.

19 SEC. 3306. ASSISTANCE FOR ZAIRE.

20 (a) SECURITY ASSISTANCE.—Assistance may not be

21 provided for the Government of Zaire for each of the fiscal

22 years 1996 and 1997—

23 (1) under chapter 4 of part II of the Foreign

24 Assistance Act of 1961 (22 U.S.C. 2346 et seq.; re25 lating to the economic support fund);
88

•HR 1563 IH

1 (2) under chapter 5 of part II of that Act (22

2 U.S.C. 2347 et seq.; relating to international mili3 tary education and training); or

4 (3) from the ‘‘Foreign Military Financing Pro5 gram’’ account under section 23 of the Arms Export

6 Control Act (22 U.S.C. 2763).

7 (b) DEVELOPMENT ASSISTANCE.—Assistance under

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

9 (22 U.S.C. 2151 et seq.; relating to development assist10 ance) or chapter 10 of such part (22 U.S.C. 2293 et seq.;

11 relating to the Development Fund for Africa) for each of

12 the fiscal years 1996 and 1997 shall not be provided to

13 the Government of Zaire.

14 TITLE XXXIV—SPECIAL AU15 THORITIES AND OTHER PRO16 VISIONS

17 CHAPTER 1—SPECIAL AUTHORITIES

18 SEC. 3401. ENHANCED TRANSFER AUTHORITY.

19 Section 610 of the Foreign Assistance Act of 1961

20 (22 U.S.C. 2360) is amended to read as follows:

21 ‘‘SEC. 610. TRANSFER BETWEEN ACCOUNTS.

22 ‘‘(a) GENERAL AUTHORITY.—Whenever the Presi23 dent determines it to be necessary for the purposes of this

24 Act or the Arms Export Control Act (22 U.S.C. 2751 et

25 seq.), not to exceed 20 percent of the funds made available
89

•HR 1563 IH

1 to carry out any provision of this Act (except funds made

2 available pursuant to title IV of chapter 2 of part I) or

3 section 23 of the Arms Export Control Act (22 U.S.C.

4 2763)—

5 ‘‘(1) may be transferred to, and consolidated

6 with, the funds in any other account or fund avail7 able to carry out any provision of this Act; and

8 ‘‘(2) may be used for any purpose for which

9 funds in that account or fund may be used.

10 ‘‘(b) LIMITATION ON AMOUNT OF INCREASE.—The

11 total amount in the account or fund for the benefit of

12 which transfer is made under subsection (a) during any

13 fiscal year may not be increased by more than 20 percent

14 of the amount of funds otherwise made available.

15 ‘‘(c) NOTIFICATION.—The President shall notify in

16 writing the congressional committees specified in section

17 634A at least fifteen days in advance of each such transfer

18 between accounts in accordance with procedures applicable

19 to reprogramming notifications under such section.’’.

20 SEC. 3402. AUTHORITY TO MEET UNANTICIPATED CONTIN21 GENCIES.

22 (a) IN GENERAL.—Chapter 1 of part III of the For23 eign Assistance Act of 1961 is amended by inserting after

24 section 610 (22 U.S.C. 2360) the following new section:
90

•HR 1563 IH

1 ‘‘SEC. 610A. AUTHORITY TO MEET UNANTICIPATED CONTIN2 GENCIES.

3 ‘‘(a) AUTHORITY.—

4 ‘‘(1) IN GENERAL.—In order to provide for any

5 unanticipated contingency in the programs, projects,

6 or activities for which assistance is provided under

7 this Act, the President is authorized to use funds

8 made available to carry out any provision of this Act

9 for the purpose of providing assistance authorized by

10 any other provision of this Act in accordance with

11 the provisions applicable to the furnishing of such

12 assistance.

13 ‘‘(2) LIMITATION.—The authority of paragraph

14 (1) may not be used to authorize the use of more

15 than $40,000,000 in any fiscal year.

16 ‘‘(b) SUPERSEDES OTHER LAWS.—Funds authorized

17 to be appropriated under this section are authorized to

18 be made available notwithstanding any other provision of

19 law.

20 ‘‘(c) NOTIFICATION OF CONGRESS.—

21 ‘‘(1) NOTIFICATION.—Except as provided in

22 paragraph (2), the President shall notify the con23 gressional committees specified in section 634A(a) at

24 least 15 days before obligating any funds under this

25 section in accordance with the procedures applicable
91

•HR 1563 IH

1 to reprogramming notifications under section

2 634A(a).

3 ‘‘(2) EXCEPTION.—The President may waive

4 the requirement contained in paragraph (1) if the

5 President determines that complying with such re6 quirement would pose a substantial risk to human

7 health or welfare. If the President exercises the

8 waiver under the preceding sentence, the President

9 shall notify the congressional committees specified in

10 section 634A(a) as early as practicable, but in no

11 event later than 3 days after the date on which the

12 President took the action to which such notification

13 requirement was applicable.’’.

14 (b) REPEAL.—Chapter 5 of part I of the Foreign As15 sistance Act of 1961 (22 U.S.C. 2261; relating to contin16 gencies) is hereby repealed.

17 SEC. 3403. SPECIAL WAIVER AUTHORITY.

18 Section 614 of the Foreign Assistance Act of 1961

19 (22 U.S.C. 2364) is amended to read as follows:

20 ‘‘SEC. 614. SPECIAL WAIVER AUTHORITY.

21 ‘‘(a) AUTHORITY.—The President may provide as22 sistance and make loans under the provisions of law de23 scribed in subsection (b), notwithstanding any other provi24 sion of law, if the President determines that to do so is

25 vital to the national interests of the United States.
92

•HR 1563 IH

1 ‘‘(b) LAWS WHICH MAY BE WAIVED.—The provi2 sions of law described in this subsection are—

3 ‘‘(1) this Act;

4 ‘‘(2) the Arms Export Control Act (22 U.S.C.

5 2751 et seq.);

6 ‘‘(3) any provision of law authorizing the provi7 sion of assistance to foreign countries or making ap8 propriations for such assistance;

9 ‘‘(4) any other provision of law that restricts

10 the authority to provide assistance or make loans

11 under a provision of law described in paragraph (1),

12 (2), or (3).

13 ‘‘(c) CONSULTATION WITH CONGRESS.—Before exer14 cising the authority under subsection (a), the President

15 shall consult with, and shall provide a written policy jus16 tification to the Committee on International Relations and

17 the Committee on Appropriations of the House of Rep18 resentatives and the Committee on Foreign Relations and

19 the Committee on Appropriations of the Senate.

20 ‘‘(d) NOTIFICATION TO CONGRESS.—A determination

21 under subsection (a) shall be effective only if the President

22 notifies the congressional committees specified in sub23 section (c) in writing of that determination.

24 ‘‘(e) ANNUAL CEILINGS.—
93

•HR 1563 IH

1 ‘‘(1) IN GENERAL.—The authority of this sec2 tion may not be used in any fiscal year to author3 ize—

4 ‘‘(A) more than $750,000,000 in sales or

5 leases to be made under the Arms Export Con6 trol Act (22 U.S.C. 2751 et seq.);

7 ‘‘(B) the use of more than $250,000,000

8 of funds made available under this Act or the

9 Arms Export Control Act; or

10 ‘‘(C) the use of more than $100,000,000 of

11 foreign currencies accruing under this Act or

12 any other provision of law.

13 ‘‘(2) SALES UNDER THE ARMS EXPORT CON14 TROL ACT.—If the authority of this section is used

15 both to authorize a sale or lease under the Arms Ex16 port Control Act and to authorize funds to be used

17 under this Act with respect to the financing of that

18 sale or lease, then the use of the funds shall be

19 counted against the limitation in paragraph (1)(B)

20 and the portion, if any, of the sale or lease which

21 is not so financed shall be counted against the limi22 tation in paragraph (1)(A).

23 ‘‘(3) LEASES.—For purposes of paragraph

24 (1)(A) the replacement cost, less any depreciation in

25 the value, of the defense articles authorized to be
94

•HR 1563 IH

1 leased shall be counted against the limitation in that

2 paragraph.

3 ‘‘(4) COUNTRY LIMITS.—(A) Not more than

4 $75,000,000 of the $250,000,000 limitation pro5 vided in paragraph (1)(B) may be allocated to any

6 one country in any fiscal year unless that country is

7 a victim of active aggression.

8 ‘‘(B) Not more than $500,000,000 of the ag9 gregate limitation of $1,000,000,000 provided in

10 paragraph (1)(A) and (1)(B) may be allocated to

11 any one country in any fiscal year.’’.

12 SEC. 3404. TERMINATION OF ASSISTANCE.

13 Section 617 of the Foreign Assistance Act of 1961

14 (22 U.S.C. 2364) is amended to read as follows:

15 ‘‘SEC. 617. TERMINATION OF ASSISTANCE.

16 ‘‘(a) IN GENERAL.—(1) In order to ensure the effec17 tiveness of assistance provided under this Act, funds made

18 available under this Act to carry out any program, project,

19 or activity of assistance shall remain available for obliga20 tion for a period not to exceed 8 months after the date

21 of termination of such assistance for the necessary ex22 penses of winding up such programs, projects, or activities

23 and, notwithstanding any other provision of law, funds so

24 obligated may remain available until expended.
95

•HR 1563 IH

1 ‘‘(2) Funds obligated to carry out any program,

2 project, or activity of assistance before the effective date

3 of the termination of such assistance are authorized to be

4 available for expenditure for the necessary expenses of

5 winding up such programs, projects, and activities, not6 withstanding any provision of law restricting the expendi7 ture of funds, and may be reobligated to meet any other

8 necessary expenses arising from the termination of such

9 assistance.

10 ‘‘(3) The necessary expenses of winding up programs,

11 projects, and activities of assistance include the obligation

12 and expenditure of funds to complete the training or stud13 ies outside their countries of origin of students whose

14 course of study or training program began before assist15 ance was terminated.

16 ‘‘(b) LIABILITY TO CONTRACTORS.—For the purpose

17 of making an equitable settlement of termination claims

18 under extraordinary contractual relief standards, the

19 President is authorized to adopt as a contract or other

20 obligation of the United States Government, and assume

21 (in whole or in part) any liabilities arising thereunder, any

22 contract with a United States or third-country contractor

23 to carry out any program, project, or activity of assistance

24 under this Act that was subsequently terminated pursuant

25 to law.
96

•HR 1563 IH

1 ‘‘(c) GUARANTEE PROGRAMS.—Provisions of this or

2 any other Act requiring the termination of assistance

3 under this Act shall not be construed to require the termi4 nation of guarantee commitments that were entered into

5 before the effective date of the termination of assistance.’’.

6 CHAPTER 2—OTHER PROVISIONS

7 SEC. 3411. CONGRESSIONAL PRESENTATION DOCUMENTS.

8 Section 634 of the Foreign Assistance Act of 1961

9 (22 U.S.C. 2394) is amended to read as follows:

10 ‘‘SEC. 634. CONGRESSIONAL PRESENTATION DOCUMENTS.

11 ‘‘(a) REQUIREMENT FOR SUBMISSION.—As part of

12 the annual requests for enactment of authorizations and

13 appropriations for foreign assistance programs for each

14 fiscal year, the President shall prepare and transmit to

15 the Congress annual congressional presentation docu16 ments for the programs authorized under this Act and the

17 Arms Export Control Act (22 U.S.C. 2751 et seq.).

18 ‘‘(b) MATERIALS TO BE INCLUDED.—The documents

19 submitted pursuant to subsection (a) shall include—

20 ‘‘(1) the rationale for the allocation of assist21 ance or contributions to each country, regional, or

22 centrally funded program, or organization, as the

23 case may be;
97

•HR 1563 IH

1 ‘‘(2) a description of how each such program or

2 contribution supports the objectives of this Act or

3 the Arms Export Control Act, as the case may be;

4 ‘‘(3) a description of planned country, regional,

5 or centrally funded programs or contributions to

6 international organizations and programs for the

7 coming fiscal year; and

8 ‘‘(4) for each country for which assistance is re9 quested under this Act or the Arms Export Control

10 Act—

11 ‘‘(A) the total number of years since 1946

12 that the United States has provided assistance;

13 ‘‘(B) the total amount of bilateral assist14 ance provided by the United States since 1946,

15 including the principal amount of all loans,

16 credits, and guarantees; and

17 ‘‘(C) the total amount of assistance pro18 vided to such country from all multilateral or19 ganizations to which the United States is a

20 member, including all international financial in21 stitutions, the United Nations, and other inter22 national organizations.

23 ‘‘(c) GRADUATION FROM DEVELOPMENT ASSIST24 ANCE.—
98

•HR 1563 IH

1 ‘‘(1) DETERMINATION.—As part of the congres2 sional presentation documents transmitted to the

3 Congress under this section, the Secretary of State

4 shall make a separate determination for each coun5 try identified in such documents for which bilateral

6 development assistance is requested, estimating the

7 year in which each such country will no longer be re8 ceiving bilateral development assistance.

9 ‘‘(2) DEVELOPMENT ASSISTANCE DEFINED.—

10 For purposes of this section, the term ‘development

11 assistance’ means assistance under—

12 ‘‘(A) chapter 1 of part I of this Act;

13 ‘‘(B) chapter 10 of part I of this Act;

14 ‘‘(C) chapter 11 of part I of this Act; and

15 ‘‘(D) the Support for East European De16 mocracy (SEED) Act of 1989 (22 U.S.C. 5401

17 et seq.).’’.

18 SEC. 3412. PROHIBITION ON ASSISTANCE TO FOREIGN GOV19 ERNMENTS ENGAGED IN ESPIONAGE

20 AGAINST THE UNITED STATES.

21 Chapter 1 of part III of the Foreign Assistance Act

22 of 1961 (22 U.S.C. 2370 et seq.), as amended by this Act,

23 is further amended by adding at the end the following new

24 section:
99

•HR 1563 IH

1 ‘‘SEC. 620I. PROHIBITION ON ASSISTANCE TO FOREIGN

2 GOVERNMENTS ENGAGED IN ESPIONAGE

3 AGAINST THE UNITED STATES.

4 ‘‘(a) PROHIBITION.—None of the funds made avail5 able to carry out this Act or the Arms Export Control

6 Act (22 U.S.C. 2751 et seq.) (other than humanitarian

7 assistance or assistance for refugees) may be provided to

8 any foreign government which the President determines

9 is engaged in intelligence activities within the United

10 States harmful to the national security of the United

11 States.

12 ‘‘(b) PERIODIC REPORTS.—Beginning one year after

13 the date of enactment of this section, and annually there14 after, the President shall prepare and transmit to the

15 Committee on Foreign Relations and the Select Commit16 tee on Intelligence of the Senate and the Committee on

17 International Relations and the Permanent Select Com18 mittee on Intelligence of the House of Representatives a

19 report, in classified and unclassified forms, listing all for20 eign governments which the President determines are con21 ducting intelligence activities within the United States

22 harmful to the national security of the United States.

23 ‘‘(c) DEFINITION.—As used in this section, the term

24 ‘humanitarian assistance’ means food (including the

25 monetization of food), clothing, medicine, and medical

26 supplies.’’.
100

•HR 1563 IH

1 SEC. 3413. DEBT RESTRUCTURING FOR FOREIGN ASSIST2 ANCE.

3 Chapter 1 of part III of the Foreign Assistance Act

4 of 1961 (22 U.S.C. 2370 et seq.), as amended by this Act,

5 is further amended by adding at the end the following new

6 section:

7 ‘‘SEC. 620J. SPECIAL DEBT RELIEF FOR POOR COUNTRIES.

8 ‘‘(a) AUTHORITY TO REDUCE DEBT.—The President

9 may reduce amounts owed to the United States Govern10 ment by a country described in subsection (b) as a result

11 of—

12 ‘‘(1) loans or guarantees issued under this Act;

13 or

14 ‘‘(2) credits extended or guarantees issued

15 under the Arms Export Control Act (22 U.S.C.

16 2751 et seq.).

17 ‘‘(b) COUNTRY DESCRIBED.—A country described in

18 this subsection is a country—

19 ‘‘(1) with a heavy debt burden that is eligible

20 to borrow from the International Development Asso21 ciation but not from the International Bank for Re22 construction and Development (commonly referred

23 to as an ‘IDA-only’ country); and

24 ‘‘(2) the government of which—

25 ‘‘(A) does not have an excessive level of

26 military expenditures;
101

•HR 1563 IH

1 ‘‘(B) has not repeatedly provided support

2 for acts of international terrorism;

3 ‘‘(C) is cooperating with the United States

4 on international narcotics control matters;

5 ‘‘(4) (including the military or other security

6 forces of such government) does not engage in a

7 consistent pattern of gross violations of internation8 ally recognized human rights; and

9 ‘‘(5) is not prohibited from receiving assistance

10 described in section 527(a) of the Foreign Relations

11 Authorization Act, Fiscal Years 1994 and 1995 by

12 reason of such section.

13 ‘‘(c) LIMITATIONS.—The authority under subsection

14 (a) may be exercised—

15 ‘‘(1) only to implement multilateral official debt

16 relief ad referendum agreements (commonly referred

17 to as ‘Paris Club Agreed Minutes’); and

18 ‘‘(2) only to the extent that appropriations for

19 the cost of the modification, as defined in section

20 502 of the Congressional Budget Act of 1974, are

21 made in advance.

22 ‘‘(d) CERTAIN PROHIBITIONS INAPPLICABLE.—A re23 duction of debt pursuant to the exercise of authority under

24 subsection (a)—
102

•HR 1563 IH

1 ‘‘(1) shall not be considered assistance for pur2 poses of any provision of law limiting assistance to

3 a country; and

4 ‘‘(2) may be exercised notwithstanding section

5 620(r) of this Act or any comparable provision of

6 law.

7 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—

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

9 appropriated to the President for the purpose of car10 rying out this section $7,000,000 for each of the fis11 cal years 1996 and 1997.

12 ‘‘(2) AVAILABILITY.—Amounts authorized to be

13 appropriated under paragraph (1) are authorized to

14 remain available until expended.’’.

15 SEC. 3414. DEBT BUYBACKS OR SALES FOR DEBT SWAPS.

16 Part IV of the Foreign Assistance Act of 1961 (22

17 U.S.C. 2430 et seq.) is amended by adding at the end

18 the following new section:

19 ‘‘SEC. 711. AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR

20 SALES.

21 ‘‘(a) LOANS ELIGIBLE FOR SALE, REDUCTION, OR

22 CANCELLATION.—

23 ‘‘(1) AUTHORITY TO SELL, REDUCE, OR CANCEL

24 CERTAIN LOANS.—Notwithstanding any other provi25 sion of law, the President may, in accordance with
103

•HR 1563 IH

1 this section, sell to any eligible purchaser any

2 concessional loan or portion thereof made before

3 January 1, 1995, to the government of any eligible

4 country pursuant to this Act, or on receipt of pay5 ment from an eligible purchaser, reduce or cancel

6 such loan or portion thereof, only for the purpose of

7 facilitating—

8 ‘‘(A) debt-for-equity swaps, debt-for-devel9 opment swaps, or debt-for-nature swaps; or

10 ‘‘(B) a debt buyback by an eligible country

11 of its own qualified debt, only if the eligible

12 country uses an additional amount of the local

13 currency of the eligible country, equal to not

14 less than 40 percent of the price paid for such

15 debt by such eligible country, or the difference

16 between the price paid for such debt and the

17 face value of such debt, to support activities

18 that link conservation and sustainable use of

19 natural resources with local community develop20 ment, and child survival and other child devel21 opment, in a manner consistent with sections

22 707 through 710, if the sale, reduction, or can23 cellation would not contravene any term or con24 dition of any prior agreement relating to such

25 loan.
104

•HR 1563 IH

1 ‘‘(2) TERMS AND CONDITIONS.—Notwithstand2 ing any other provision of law, the President shall,

3 in accordance with this section, establish the terms

4 and conditions under which loans may be sold, re5 duced, or canceled pursuant to this section.

6 ‘‘(3) ADMINISTRATION.—The Facility shall no7 tify the administrator of the agency primarily re8 sponsible for administering part I of this Act of pur9 chasers that the President has determined to be eli10 gible, and shall direct such agency to carry out the

11 sale, reduction, or cancellation of a loan pursuant to

12 this section. Such agency shall make an adjustment

13 in its accounts to reflect the sale, reduction, or can14 cellation.

15 ‘‘(4) LIMITATION.—The authorities of this sub16 section shall be available only to the extent that ap17 propriations for the cost of the modification, as de18 fined in section 502 of the Congressional Budget Act

19 of 1974, are made in advance.

20 ‘‘(b) DEPOSIT OF PROCEEDS.—The proceeds from

21 the sale, reduction, or cancellation of any loan sold, re22 duced, or canceled pursuant to this section shall be depos23 ited in an account or accounts established in the Treasury

24 for the repayment of such loan.
105

•HR 1563 IH

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

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

3 presents plans satisfactory to the President for using the

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

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

6 ‘‘(d) DEBTOR CONSULTATIONS.—Before the sale to

7 any eligible purchaser, or any reduction or cancellation

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

9 country, the President shall consult with the country con10 cerning the amount of loans to be sold, reduced, or can11 celed and their uses for debt-for-equity swaps, debt-for12 development swaps, or debt-for-nature swaps.

13 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—

14 ‘‘(1) IN GENERAL.—For the sale, reduction,

15 and cancellation of loans or portions thereof pursu16 ant to this section, there are authorized to be appro17 priated to the President $3,000,000 for each of the

18 fiscal years 1996 and 1997.

19 ‘‘(2) AVAILABILITY.—Amounts authorized to be

20 appropriated under paragraph (1) are authorized to

21 remain available until expended.’’.

22 SEC. 3415. IMPACT ON JOBS IN THE UNITED STATES.

23 Section 636 of the Foreign Assistance Act of 1961

24 (22 U.S.C. 2396) is amended by adding at the end the

25 following new subsection:
106

•HR 1563 IH

1 ‘‘(j)(1) Funds made available to carry out the provi2 sions of this Act may not be made available to provide—

3 ‘‘(A) any financial incentive to a business enter4 prise located in the United States for the purpose of

5 inducing that enterprise to relocate outside the

6 United States if such incentive or inducement is

7 likely to reduce the number of individuals employed

8 in the United States by that enterprise because that

9 enterprise would replace production in the United

10 States with production outside the United States;

11 ‘‘(B) assistance for the purpose of establishing

12 or developing in a foreign country any export proc13 essing zone or designated area in which the tax, tar14 iff, labor, environment, and safety laws of that coun15 try do not apply, in part or in whole, to activities

16 carried out within that zone or area, unless the

17 President determines and certifies that such assist18 ance is not likely to cause a loss of jobs within the

19 United States; or

20 ‘‘(C) subject to paragraph (2), assistance for

21 any project or activity that contributes to the viola22 tion of internationally recognized workers rights (as

23 defined in section 502(a)(4) of the Trade Act of

24 1974) of workers in the foreign country, including in

25 any designated zone or area in that country.
107

•HR 1563 IH

1 ‘‘(2) Paragraph (1) shall not apply with respect to

2 the provision of assistance for microenterprises and small3 scale enterprises, or for small-holder agriculture in the in4 formal sector of the foreign country.’’.

5 SEC. 3416. PROHIBITION ON ASSISTANCE TO FOREIGN GOV6 ERNMENTS THAT EXPORT LETHAL MILITARY

7 EQUIPMENT TO COUNTRIES SUPPORTING

8 INTERNATIONAL TERRORISM.

9 (a) IN GENERAL.—Section 620 of the Foreign Assist10 ance Act of 1961 (22 U.S.C. 2370) is amended by adding

11 at the end the following new subsection:

12 ‘‘(y)(1) No assistance may be provided under this Act

13 or the Arms Export Control Act to any foreign govern14 ment that provides lethal military equipment to a country,

15 the government of which the Secretary of State has deter16 mined pursuant to section 40(d) of the Arms Export Con17 trol Act is a government that has repeatedly provided sup18 port for acts of international terrorism.

19 ‘‘(2) The prohibition under paragraph (1) with re20 spect to a foreign government shall terminate 12 months

21 after the date on which that government ceases to provide

22 such lethal military equipment.

23 ‘‘(3) The President may waive the requirements of

24 paragraph (1) if the President determines that the provi-
108

•HR 1563 IH

1 sion of such assistance is important to the national secu2 rity interests of the United States.

3 ‘‘(4) Whenever the waiver of paragraph (3) is exer4 cised, the President shall prepare and transmit to the ap5 propriate congressional committees a report with respect

6 to the furnishing of such assistance. Such report shall in7 clude a detailed explanation of the assistance to be pro8 vided, including the estimated dollar amount of such as9 sistance, and an explanation of how the assistance fur10 thers the national interests of the United States.

11 ‘‘(5) For purposes of this subsection, the term ‘appro12 priate congressional committees’ means the Committee on

13 International Relations and the Committee on Appropria14 tions of the House of Representatives and the Committee

15 on Foreign Relations and the Committee on Appropria16 tions of the Senate.’’.

17 (b) EFFECTIVE DATE.—Section 620(y) of the For18 eign Assistance Act of 1961, as added by subsection (a),

19 applies with respect to lethal military equipment provided

20 pursuant to a contract entered into on or after the date

21 of enactment of this Act.
109

•HR 1563 IH

1 CHAPTER 3—REPEALS

2 SEC. 3421. REPEAL OF OBSOLETE PROVISIONS.

3 (a) 1992 JOBS THROUGH EXPORTS ACT.—Title III

4 of the Jobs Through Exports Act of 1992 is hereby re5 pealed.

6 (b) 1988 OPIC ACT.—The Overseas Private Invest7 ment Corporation Amendments Act of 1988 (as enacted

8 by reference by section 555 of the Foreign Operations, Ex9 port Financing, and Related Programs Appropriations

10 Act, 1989) is hereby repealed.

11 (c) 1988 FOREIGN OPERATIONS APPROPRIATIONS

12 ACT.—Section 537(h)(2) of the Foreign Operations, Ex13 port Financing, and Related Programs Appropriations

14 Act, 1988, as included in Public Law 100–202, is hereby

15 repealed.

16 (d) 1987 FOREIGN ASSISTANCE APPROPRIATIONS

17 ACT.—Section 539(g)(2) of the Foreign Assistance and

18 Related Programs Appropriations Act, 1987, as included

19 in Public Law 99–591, is hereby repealed.

20 (e) 1986 ASSISTANCE ACT.—The Special Foreign As21 sistance Act of 1986 is hereby repealed except for section

22 1 and section 204.

23 (f) 1985 ASSISTANCE ACT.—The International Secu24 rity and Development Cooperation Act of 1985 is hereby

25 repealed except for section 1, section 131, section 132, sec-
110

•HR 1563 IH

1 tion 504, section 505, part B of title V (other than section

2 558 and section 559), section 1302, section 1303, and sec3 tion 1304.

4 (g) 1985 JORDAN SUPPLEMENTAL ACT.—The Jor5 dan Supplemental Economic Assistance Authorization Act

6 of 1985 is hereby repealed.

7 (h) 1985 AFRICAN FAMINE ACT.—The African Fam8 ine Relief and Recovery Act of 1985 is hereby repealed.

9 (i) 1983 ASSISTANCE ACT.—The International Secu10 rity and Development Assistance Authorization Act of

11 1983 is hereby repealed.

12 (j) 1983 LEBANON ASSISTANCE ACT.—The Lebanon

13 Emergency Assistance Act of 1983 is hereby repealed.

14 (k) 1981 ASSISTANCE ACT.—The International Secu15 rity and Development Cooperation Act of 1981 is hereby

16 repealed except for section 1, section 709, and section 714.

17 (l) 1981 OPIC AMENDMENTS ACT.—The OPIC

18 Amendments Act of 1981 is hereby repealed.

19 (m) 1980 ASSISTANCE ACT.—The International Se20 curity and Development Cooperation Act of 1980 is hereby

21 repealed except for section 1, section 110, section 316, and

22 title V.

23 (n) 1979 DEVELOPMENT ASSISTANCE ACT.—The

24 International Development Cooperation Act of 1979 is

25 hereby repealed.
111

•HR 1563 IH

1 (o) 1979 SECURITY ASSISTANCE ACT.—The Inter2 national Security Assistance Act of 1979 is hereby re3 pealed.

4 (p) 1979 SPECIAL SECURITY ASSISTANCE ACT.—The

5 Special International Security Assistance Act of 1979 is

6 hereby repealed.

7 (q) 1978 DEVELOPMENT ASSISTANCE ACT.—The

8 International Development and Food Assistance Act of

9 1978 is hereby repealed, except for section 1, title IV, and

10 section 603(a)(2).

11 (r) 1978 SECURITY ASSISTANCE ACT.—The Inter12 national Security Assistance Act of 1978 is hereby re13 pealed.

14 (s) 1977 DEVELOPMENT ASSISTANCE ACT.—The

15 International Development and Food Assistance Act of

16 1977 is hereby repealed except for section 1, section

17 132(b), and section 133.

18 (t) 1977 SECURITY ASSISTANCE ACT.—The Inter19 national Security Assistance Act of 1977 is hereby re20 pealed.

21 (u) 1976 SECURITY ASSISTANCE ACT.—The Inter22 national Security Assistance and Arms Export Control Act

23 of 1976 is hereby repealed except for section 1, section

24 201(b), section 212(b), section 601, and section 608.
112

•HR 1563 IH

1 (v) 1975 DEVELOPMENT ASSISTANCE ACT.—The

2 International Development and Food Assistance Act of

3 1975 is hereby repealed.

4 (w) 1975 BIB ACT.—Public Law 94–104 is hereby

5 repealed.

6 (x) 1974 ASSISTANCE ACT.—The Foreign Assistance

7 Act of 1974 is hereby repealed.

8 (y) 1973 EMERGENCY ASSISTANCE ACT.—The

9 Emergency Security Assistance Act of 1973 is hereby re10 pealed.

11 (z) 1973 ASSISTANCE ACT.—The Foreign Assistance

12 Act of 1973 is hereby repealed.

13 (aa) 1971 ASSISTANCE ACT.—The Foreign Assist14 ance Act of 1971 is hereby repealed.

15 (bb) 1971 SPECIAL ASSISTANCE ACT.—The Special

16 Foreign Assistance Act of 1971 is hereby repealed.

17 (cc) 1969 ASSISTANCE ACT.—The Foreign Assist18 ance Act of 1969 is hereby repealed except for the first

19 section and part IV.

20 (dd) 1968 ASSISTANCE ACT.—The Foreign Assist21 ance Act of 1968 is hereby repealed.

22 (ee) 1964 ASSISTANCE ACT.—The Foreign Assist23 ance Act of 1964 is hereby repealed.

24 (ff) LATIN AMERICAN DEVELOPMENT ACT.—The

25 Latin American Development Act is hereby repealed.
113

•HR 1563 IH

1 (gg) 1959 MUTUAL SECURITY ACT.—The Mutual Se2 curity Act of 1959 is hereby repealed.

3 (hh) 1954 MUTUAL SECURITY ACT.—Sections 402

4 and 417 of the Mutual Security Act of 1954 are hereby

5 repealed.

6 (ii) DEPARTMENT OF STATE AUTHORIZATION ACT,

7 FISCAL YEARS 1982 and 1983.—Section 109 of the De8 partment of State Authorization Act, Fiscal Years 1982

9 and 1983, is hereby repealed.

10 (jj) DEPARTMENT OF STATE AUTHORIZATION ACT,

11 FISCAL YEARS 1984 AND 1985.—Sections 1004 and

12 1005(a) of the Department of State Authorization Act,

13 Fiscal Years 1984 and 1985, are hereby repealed.

14 (kk) SAVINGS PROVISION.—Except as otherwise pro15 vided in this Act, the repeal by this Act of any provision

16 of law that amended or repealed another provision of law

17 does not affect in any way that amendment or repeal.

18 TITLE XXXV—EFFECTIVE DATE

19 SEC. 3501. EFFECTIVE DATE.

20 Except as otherwise provided in this Act, this divi21 sion, and the amendments made by this division, shall take

22 effect on the date of the enactment of this Act or October

23 1, 1995, whichever occurs later.

HR 1563 IH——2

HR 1563 IH——3
114

•HR 1563 IH

HR 1563 IH——4

HR 1563 IH——5

HR 1563 IH——6

HR 1563 IH——7

HR 1563 IH——8

HR 1563 IH——9