I

104TH CONGRESS

1ST SESSION H. R. 1960

To govern relations between the United States and the Palestine Liberation

Organization (PLO), to enforce PLO compliance with standards of international conduct, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 29, 1995

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

Banking and Financial Services, 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 govern relations between the United States and the Palestine Liberation Organization (PLO), to enforce PLO

compliance with standards of international conduct, and

for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Middle East Peace

5 Compliance Act of 1995’’.

6 SEC. 2. DEFINITIONS.

7 For the purposes of this Act—
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1 (1) the term ‘‘Palestine Liberation Organization

2 (PLO)’’ shall be defined as a membership organiza3 tion encompassing all constituent groups that belong

4 to the Palestine National Council and all individuals

5 that have or continue to publicly demonstrate their

6 allegiance to the Palestine Liberation Organization,

7 or receive funds, directly or indirectly from sources

8 controlled by the PLO. Its legal status is defined by

9 United States law pursuant to title X of Public Law

10 100–204, section 1002;

11 (2) for the purpose of this section, the term

12 ‘‘foreign assistance’’ shall be the same as that used

13 under section 634(b) of the Foreign Assistance Act

14 of 1961 (Public Law 87–195); and

15 (3) the term ‘‘Palestinian Authority’’ shall be

16 defined as the administrative entity established in

17 the self-rule areas of Gaza and the West Bank in ac18 cordance with the Declaration of Principles signed in

19 Washington, D.C. September 13, 1993, between Is20 rael and the Palestine Liberation Organization

21 (PLO).

22 SEC. 3. POLICY.

23 It is the policy and interest of the United States—

24 (1) to contribute to the advancement of peace

25 and security in the Middle East by supporting ef-
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1 forts by Israel and the Palestine Liberation Organi2 zation (PLO) to reach a nonviolent resolution of

3 their conflict under the terms of the Declaration of

4 Principles on Interim Self-Government Arrangement

5 signed in Washington, D.C., September 13, 1993;

6 (2) to ensure that both Israel and the PLO

7 fully and meaningfully comply with the terms and

8 conditions of all agreements made between them;

9 (3) to demonstrate firm, consistent, and unam10 biguous opposition to terrorism by insisting that Is11 rael and the Palestine Liberation Organization take

12 significant, material, and timely steps to preempt

13 tourist attacks;

14 (4) to ensure that the Palestinian Authority

15 fully accounts for basic human needs and infrastruc16 ture development funds expended by the United

17 States in Gaza and Jericho in accordance with

18 standard commercial principles and practices;

19 (5) to ensure that Israel and the Palestine Lib20 eration Organization cooperate fully with United

21 States law enforcement agencies to apprehend, pros22 ecute, and convict all individuals involved in the

23 criminal injury or death of United States citizens or

24 the willful damaging of United States property;
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1 (6) to hold the PLO and its administrative au2 thority in Gaza and Jericho accountable for unlawful

3 acts carried out within its jurisdiction or emanating

4 from territory under its administrative control;

5 (7) to ensure that all recipients of United

6 States foreign assistance evidence a clear commit7 ment to democracy, justice, and the rule of law and

8 conform to established standards of financial man9 agement and accountability; and

10 (8) to contribute to the long-term security, sta11 bility, and economic health of the State of Israel

12 through the maintenance of close bilateral ties and,

13 to the greatest extent possible, to provide such levels

14 of assistance to Israel as are necessary and suffi15 cient to achieve these objectives, irrespective of the

16 success or failure of the agreements between Israel

17 and the PLO.

18 SEC. 4. FINDINGS AND DETERMINATIONS.

19 (a) Pursuant to the commitments between Israel and

20 the PLO described in section 6 of this Act, the Congress

21 makes the following findings:

22 (1) After decades of conflict, Israel and the

23 PLO have entered a new era which presents an his24 toric opportunity for peaceful coexistence and a sta25 ble democratic future for themselves and the region.
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1 (2) The basis for this new relationship between

2 Israel and the PLO is the set of agreements to

3 which both parties are signatories and which ema4 nate from the Declaration of Principles on Interim

5 Self-Government Arrangements, signed in Washing6 ton, D.C., on September 13, 1993.

7 (3) The United States agrees to serve as a

8 partner in the effort to bring about a lasting rec9 onciliation and understanding between Israel and the

10 PLO.

11 (4) The United States recognizes all of the

12 agreements referred to in section 6 of this Act are

13 legally binding on Israel and the PLO, that they

14 were entered into freely and in good faith and that

15 Israel and the PLO are committed to their complete

16 fulfillment.

17 (5) The United States is relying upon Israel

18 and the PLO to honor their commitments to elected

19 representatives and officials of the United States

20 Government prior to and following the signing of the

21 Declaration of Principles, including the promise of

22 the PLO to halt terrorism emanating from areas

23 under its control.

24 (6) The United States is committed to provid25 ing funding for infrastructure development and basic
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1 human needs in Gaza and Jericho, but not through

2 any institution or entity of the PLO or the Palestin3 ian Authority and only where Israel and the PLO

4 have demonstrated that they have taken substantial,

5 timely, and meaningful steps toward full compliance

6 under their respective agreements.

7 (7) The United States is resolute in its deter8 mination to ensure that in providing assistance to

9 Palestinians living under the administrative control

10 of the Palestinian Authority or elsewhere, the bene11 ficiaries of such assistance shall be held to the same

12 standard of financial accountability and manage13 ment control as any other recipient of United States

14 foreign assistance.

15 (8) Since the signing of the Declaration of

16 Principles, the United States has had sufficient time

17 to evaluate the sincerity, commitment, and effective18 ness with which Israel and the PLO have complied

19 with both the spirit and the letter of the joint agree20 ments to which they are signatories.

21 (b) DETERMINATIONS.—Therefore, the Congress de22 termines the following:

23 (1) The PLO continues to demonstrate wide24 spread and systematic disregard for both the spirit

25 and the letter of the understandings reached in a
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1 succession of agreements between it and the State of

2 Israel.

3 (2) Information provided by the President on

4 the compliance of the PLO with its agreements is

5 often ambiguous, insufficient, at variance with the

6 assessments of independent monitoring groups and

7 falls short of the standards of accountability ex8 pected of other recipients of United States foreign

9 assistance.

10 (3) The PLO specifically has failed to take sub11 stantial, timely, and meaningful steps to fulfill its

12 legal obligations in the following areas:

13 (A) AMENDING THE PLO COVENANT.—In

14 violation of commitments made by the PLO in

15 the letter of September 9, 1993, between the

16 PLO leader and the Prime Minister of Israel,

17 1993, the PLO has failed to repeal the provi18 sions of its charter which declare Israel to be il19 legitimate and call for its elimination through

20 armed struggle.

21 (B) PREVENTING TERRORISM.—In viola22 tion of the terms agreed to in the Gaza-Jericho

23 Agreement, annex III, article I, section 5 and

24 the letters of September 9, 1993, between the

25 PLO leader and the Prime Minister of Israel
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1 and between the PLO leader and the Foreign

2 Minister of Norway, the PLO has not legally

3 banned terrorist organizations such as Hamas

4 and Islamic Jihad and has done little to dis5 cipline them. In the 19 months before the Dec6 laration of Principles there were 318 casualties

7 from terrorism in Israel and the territories (68

8 people were killed and 250 injured). This is in

9 contrast to the 19 months following the signing

10 of the Declaration of Principles, there were 651

11 casualties from terrorism in Israel and the ter12 ritories (134 people were killed and 517 in13 jured), an increase of nearly 100 percent.

14 (C) PROSECUTING TERRORISTS.—In viola15 tion of the terms agreed to in the Gaza-Jericho

16 Agreement, annex III, article I, section 5 and

17 the letters of September 9, 1993, between the

18 PLO leader and the Prime Minister of Israel

19 and between the PLO leader and the Foreign

20 Minister of Norway, the PLO has failed to in21 vestigate terrorist incidents, prosecute terrorists

22 according to the rule of law, or ensure that the

23 sentences imposed for terrorist acts are more

24 than perfunctory. The PLO repeatedly has de25 clared that it considers terrorist organizations
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1 such as Hamas and Islamic Jihad as legitimate

2 opposition groups with whom they are prepared

3 to conduct a dialog. The PLO has not legally

4 banned extremist organizations and instead,

5 employs Hamas sympathizers in its administra6 tion in Gaza.

7 (D) PREVENTING INCITEMENT TO VIO8 LENCE.—In violation of the terms agreed to in

9 the Gaza-Jericho Agreement, article XII, para10 graph 1 and the letters of September 9, 1993,

11 between the PLO leader and the Prime Min12 ister of Israel and between the PLO leader and

13 the Foreign Minister of Norway, PLO officials

14 continue to advocate holy war (jihad) against

15 Israel, glorify suicide bombers, lend support and

16 comfort to terrorist groups, and issue propa17 ganda delegitimizing Israeli sovereignty even

18 within its pre-1967 borders.

19 (E) BARRING UNAUTHORIZED FORCES.—

20 In violation of the terms agreed to in the Gaza21 Jericho Agreement, article IX, section 2, the

22 PLO continues to permit illegal military and

23 paramilitary groups to conduct terrorist oper24 ations against Israel from administrative areas

25 under its control.
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1 (F) CONFISCATING UNAUTHORIZED WEAP2 ONS.—In violation of the terms agreed to in the

3 Gaza-Jericho Agreement, annex I, article VIII,

4 section 8, the PLO has failed to fulfill its com5 mitment made to the United States Vice Presi6 dent on March 24, 1995, to take significant

7 steps to disarm military and paramilitary

8 groups under its administrative control, to li9 cense weapons, or to substantially enforce, by

10 judicial means, individual violations.

11 (G) EXCLUDING TERRORISTS FROM SECU12 RITY SERVICES.—In violation of the terms

13 agreed to in the Gaza-Jericho Agreement,

14 annex I, article III, section 4(b), the PLO con15 tinues to employ policemen who have been con16 victed of serious crimes.

17 (H) EXTRADITING TERRORISTS.—In viola18 tion of the terms agreed to in annex III, article

19 II, section 7, the PLO consistently refuses to

20 extradite individuals suspected in terrorist

21 crimes against Israeli citizens and has not com22 plied with earlier demands of the United States

23 Government to extradite individuals suspected

24 of crimes against Americans to the United

25 States.
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1 (I) PROHIBITING THE LOCATION OF INSTI2 TUTIONS OF THE PALESTINIAN AUTHORITY

3 OUTSIDE OF GAZA AND JERICHO.—Under arti4 cle V of the Gaza-Jericho Agreement, the Pal5 estinian Authority has attempted to extend its

6 authority beyond the boundaries of Gaza and

7 Jericho. It has failed to live up to its commit8 ment not to operate offices in Jerusalem and

9 has opened at least 7 institutions in and around

10 the city.

11 (J) FACILITATING THE RELEASE OF IS12 RAELI POWS/MIAS.—The PLO has failed to pro13 vide Israel with information it possesses on the

14 condition and possible whereabouts of at least

15 one Israeli MIA.

16 (K) AVOIDING AND PUNISHING THE ILLE17 GAL TRANSFER OF FUNDS.—In violation of the

18 spirit of the Gaza-Jericho Agreement and

19 standard international principles and practices

20 of financial accountability, administrative au21 thorities in Gaza have diverted substantial

22 amounts of development assistance to activities

23 of the PLO both inside and outside of Gaza and

24 Jericho.
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1 (L) PREVENTING INFILTRATIONS.—In vio2 lation of the terms agreed to in the Gaza-Jeri3 cho Agreement, article IV(2)(c), the Palestinian

4 Police authorities has failed to halt infiltrations

5 from Egypt to Gaza and from Gaza to Israel.

6 SEC. 5. GENERAL RESTRICTIONS ON ASSISTANCE.

7 Notwithstanding any other provision of law, the fol8 lowing restrictions shall apply with regard to all assistance

9 provided by the United States and intended to benefit Pal10 estinians living in areas controlled by the PLO or the Pal11 estinian Authority:

12 (1) All funds made available to areas under the

13 administrative control of the Palestinian Authority

14 shall be provided only through agencies or entities of

15 the United States Government or private voluntary

16 organizations designated by the Secretary of State

17 and registered in the United States: Provided, That

18 no funds shall be obligated or expended for any

19 projects or activities of the Palestinian Authority in

20 Jerusalem or that benefit Palestinians living in

21 Jerusalem.

22 (2) Under no circumstances and notwithstand23 ing any other provision of law, none of the funds au24 thorized or appropriated under this or any other Act

25 shall be made available, directly or indirectly, to ben-
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1 efit the Palestine Liberation Organization (PLO), its

2 agents, entities, projects, programs, institutions, or

3 activities under its control, or directly or indirectly,

4 to benefit the operation of the Palestinian Authority

5 in Gaza, Jericho, or any other area it may control.

6 (3) Funds authorized or appropriated under

7 this or any other Act shall only be made available

8 for humanitarian assistance, economic development,

9 and basic human needs infrastructure projects or ac10 tivities which directly benefit Palestinians in areas

11 under the administrative control of the Palestinian

12 Authority.

13 (4) The total amount of United States assist14 ance benefiting the Palestinians resident in areas

15 under the administrative control of the PLO and the

16 Palestinian Authority for any single year shall not

17 exceed the largest total contribution by a member of

18 the Arab League to the Palestinian Authority in the

19 previous full calendar year.

20 (5) None of the funds authorized or appro21 priated under this or any other Act shall be made

22 available to benefit, directly or indirectly, Palestin23 ians living under the administrative control of the

24 Palestinian Authority until the PLO substantially,
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1 materially, and in a timely fashion complies with the

2 provisions of section 7 of this Act.

3 (6) No funds made available by this or any

4 other Act and intended to benefit Palestinians living

5 in areas controlled by the PLO or the Palestinian

6 Authority shall be used for the purchase, lease, or

7 acquisition by any means of lethal equipment, sup8 plies, or infrastructure to support that equipment or

9 its use in military or paramilitary operations or

10 training.

11 (7) No funds shall be made available under this

12 or any other Act to benefit Palestinians living in

13 areas controlled by the PLO or the Palestinian Au14 thority should the PLO conclude a formal or infor15 mal arrangement with Hamas, Islamic Jihad, or any

16 other group practicing or supporting terrorism under

17 which the terrorist activities of these groups, either

18 inside or outside of Gaza and Jericho, will be al19 lowed to continue or be tolerated in any respect.

20 (8) As set forth in section 585 of the Foreign

21 Operations, Export Financing, and Related Pro22 grams 1995 Appropriations and 1994 Supplemental

23 Appropriations Act (Public Law 103–306):

24 (A) None of the funds made available

25 under this or any other Act shall be obligated
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1 or expended to create in any part of Jerusalem

2 a new office of any department or agency of the

3 United States Government for the purpose of

4 conducting official United States Government

5 business with the Palestinian Authority over

6 Gaza and Jericho or any successor Palestinian

7 governing entity provided for in the Israel-PLO

8 Declaration of Principles: Provided, That this

9 restriction shall not apply to the acquisition of

10 additional space for the existing Consulate Gen11 eral in Jerusalem.

12 (B) Meetings between officers and employ13 ees of the United States and officials of the

14 Palestinian Authority, or any successor Pal15 estinian governing entity provided for in the Is16 rael-PLO Declaration of Principles, for the pur17 pose of conducting official United States Gov18 ernment business with such authority should

19 continue to take place in locations other than

20 Jerusalem. As has been true in the past, offi21 cers and employees of the United States Gov22 ernment may continue to meet in Jerusalem on

23 other subjects with Palestinians (including

24 those who now occupy positions in the Palestin-
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1 ian Authority), have social contacts, and have

2 incidental discussions.

3 (9) No funds made available under this or any

4 other Act shall be used to benefit any individual who

5 has directly participated in, or conspired in, or was

6 an accessory to, the planning or execution of a ter7 rorist activity which resulted in the death, injury or

8 kidnaping of an American citizen.

9 SEC. 6. PLO-ISRAEL COMMITMENTS DESCRIBED.

10 The commitments referred to under this Act and rec11 ognized by the United States are the legally binding com12 mitments made by the Palestine Liberation Organization

13 and Israel in the following declarations:

14 (1) The PLO letter of September 9, 1993, to

15 the Prime Minister of Israel.

16 (2) The PLO letter of September 9, 1993, to

17 the Foreign Minister of Norway.

18 (3) The Declaration of Principles on Interim

19 Self-Government Arrangements signed in Washing20 ton, D.C. on September 13, 1993.

21 (4) The Agreement between Israel and the PLO

22 signed in Cairo on May 4, 1994.

23 (5) The Joint Communiqu ́e between Israel and

24 the PLO issued at Blair House, in Washington,

25 D.C., February 12, 1995.
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1 SEC. 7. REQUIREMENTS FOR THE TRANSFER OF FUNDS.

2 IN GENERAL.—Notwithstanding any other provision

3 of law, none of the funds authorized or appropriated under

4 this or any other Act shall be made available, directly or

5 indirectly, to benefit Palestinians living under the adminis6 trative control of the PLO or the Palestinian Authority

7 in Gaza, Jericho or any other area it may control, until

8 the following requirements set forth in this section are

9 fully met and certified to Congress by the President of

10 the United States.

11 (1) SUBSTANTIAL, MATERIAL AND TIMELY COM12 PLIANCE.—That the PLO and the Palestinian Au13 thority have made substantial, material and timely

14 progress in meeting their legal obligations as set

15 forth in the agreements between the PLO and Israel

16 and as enumerated in section 6 of this Act. The

17 President shall submit to the relevant congressional

18 committees a quarterly report that—

19 (A) comprehensively evaluates the compli20 ance record of the PLO according to each spe21 cific commitment set forth in its agreements

22 with Israel;

23 (B) establishes, as appropriate, both objec24 tive and subjective measures to assess PLO

25 compliance; and
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1 (C) measures PLO compliance against

2 each previous quarterly assessment and dem3 onstrates significant and continual improvement

4 each quarter.

5 (2) FINANCIAL ACCOUNTABILITY.—Sixty days

6 following the enactment of this Act and every 180

7 days thereafter, the President of the United States

8 shall submit to the relevant congressional commit9 tees a financial audit carried out by the General Ac10 counting Office (GAO), which provides a full ac11 counting of all United States assistance which bene12 fits, directly or indirectly, the projects, programs or

13 activities of the Palestinian Authority in Gaza, Jeri14 cho or any other area it may control, since Septem15 ber 13, 1993, including, but not limited to, the fol16 lowing)—

17 (A) the obligation and disbursal of all

18 funds, by project, activity, and date, as well as

19 by prime contractor, all subcontractors, and

20 their countr(ies) of origin;

21 (B) the organization(s) or individual(s) re22 sponsible for the receipt and obligation of U.S.

23 assistance;

24 (C) the amount of both private and inter25 national donor funds that benefit the PLO or
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1 the Palestinian Authority in Gaza, Jericho or

2 any other area it may control, and to which the

3 United States may be a contributor; and

4 (D) the ultimate beneficiaries of the assist5 ance.

6 (3) REPORT ON THE POSSIBLE MISUSE OF

7 FUNDS.—Pursuant to section 7(a), the President

8 shall also provide the relevant congressional commit9 tees with a comprehensive accounting of all United

10 States and International donor funds, credits, guar11 antees, insurance, in-kind assistance and other re12 source transfers to the PLO, the Palestinian Author13 ity or other associated entities under their control

14 which the General Accounting Office believes may

15 have been misused, diverted or illegally converted for

16 purposes other than those originally intended by the

17 donors and shall include a discussion of—

18 (A) the possible reasons for the diversion

19 of resources and the likely use toward which

20 they were put;

21 (B) the manner and mechanism(s) by

22 which the resources were misdirected;

23 (C) the person(s) and institution likely re24 sponsible for the misdirection of the resources;

25 and
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1 (D) the efforts being made by the Palestin2 ian Authority, the President and the inter3 national community to account for and recover

4 the misdirected resources.

5 (4) PENALTIES AND DEDUCTIONS.—Not less

6 than thirty (30) days following the issuance to Con7 gress of the findings set forth in section 7(2) the

8 President shall deduct one dollar from the amount

9 of funds or other resources appropriated to benefit

10 Palestinians living in areas controlled by the Pal11 estinian Authority for each dollar which the General

12 Accounting Office is able to demonstrate may have

13 been diverted by Palestinians for purposes other

14 than what they were originally intended.

15 (5) ACCOUNTABILITY FOR PAST TERRORISM.—

16 The President shall certify to the relevant congres17 sional committees that the Palestine Liberation Or18 ganization has taken substantial, material and time19 ly steps to provide information to United States law

20 enforcement agencies leading to the arrest and ex21 tradition to the United States for prosecution of in22 dividuals connected directly or indirectly with the

23 Palestine Liberation Organization and alleged to

24 have been responsible for terrorist attacks on Amer-
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1 ican citizens or property since 1964 to include, but

2 not be limited to, the kidnapping, or murders of—

3 (A) David Berger, in Munich, Germany,

4 September, 1972;

5 (B) Cleo A. Noel, Jr., United States Am6 bassador to the Sudan, and G. Curtis Moore,

7 U.S. Diplomat, in Khartoum, March 2, 1973;

8 (C) Gail Rubin, in Israel, March 11, 1978;

9 (D) Leon Klinghoffer on the cruise ship

10 Achille Lauro, October 8, 1985; and

11 (E) Gail Klein, in Jerusalem, October 15,

12 1986.

13 (6) REPORT TO THE CONGRESS.—Pursuant to

14 subsection (B) of this section, the President shall re15 port to the relevant congressional committees, in

16 both classified and unclassified form, no later than

17 September 1, 1995, and every 180 days thereafter,

18 on—

19 (A) the name, date, location, and cir20 cumstance of all Americans alleged to have been

21 killed or injured, directly or indirectly, by mem22 bers, agents, supporters or surrogates of the

23 Palestine Liberation Organization from 1964 to

24 the present;
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1 (B) the name, date, precise location, and

2 circumstance of all violent incidents against Is3 raelis or others by any terrorist group, organi4 zation, entity or individual operating in Israel

5 or the territories controlled by Israel or the

6 PLO and to indicate—

7 (i) where the violent incident was

8 planned, organized and launched;

9 (ii) how and through what means the

10 violent incident was funded;

11 (iii) the source and type of any lethal

12 equipment used in any violent incident;

13 and

14 (iv) whether the United States has

15 been able to independently confirm infor16 mation provided by either Israel or the

17 PLO regarding violent incidents reported

18 under this subsection.

19 (C) the status of all warrants issued by

20 United States law enforcement agencies,

21 Interpol, or other international police authori22 ties, for the arrest of members of the Palestine

23 Liberation Organization, to include, but not be

24 limited to, the name of the individual, the date

25 and nature of the crime alleged to have been
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1 committed, the statute under which prosecution

2 is being sought, and the level and nature of the

3 cooperation provided by the Palestine Libera4 tion Organization in the apprehension, prosecu5 tion and conviction of this individual(s);

6 (D) the disposition of all past and current

7 investigations into the criminal activities of the

8 Palestine Liberation Organization as well as the

9 warrants for the arrest of alleged members of

10 the Palestine Liberation Organization that have

11 been revoked or suspended by agencies or enti12 ties of the United States Government since

13 1964 and reason for the revocation or suspen14 sion; and

15 (E) the name of any individual who cur16 rently serves as an official or agent of the Pal17 estine Liberation Organization or the Palestin18 ian Authority who at any time has been subject

19 to a United States or international arrest war20 rant or has been placed on a United States

21 Government ‘‘watch list.’’

22 (7) MATTERS TO BE CONSIDERED.—In deter23 mining whether to make the certification required by

24 subsection (4) of this section with respect to the

25 PLO, the President shall also consider and report,
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1 in both classified and unclassified form, to the rel2 evant congressional committees the following:

3 (A) Have the actions of the PLO resulted

4 in the maximum reductions in terrorism carried

5 out by members or affiliates of the PLO? Has

6 the PLO leadership publicly, in Arabic, English

7 and Hebrew, and using all major print and elec8 tronic media outlets, strongly condemned acts

9 of terrorism against Israel and the West when

10 they occur?

11 (B) Has the PLO taken legal and law en12 forcement measures to enforce in areas under

13 its administrative control, to the maximum ex14 tent possible, the elimination of terrorist acts

15 and the suppression of criminal elements re16 sponsible for terrorism as evidenced by the sei17 zure of illegal weapons, the closure of offices

18 and training areas belonging to terrorist organi19 zations and the arrest and prosecution of viola20 tors involved in the incitement, recruitment,

21 training, planning, or conduct of terrorist oper22 ations affecting the United States, Israel or

23 other countries?

24 (C) Has the PLO taken the legal and law

25 enforcement steps necessary to eliminate, to the
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1 maximum extent possible, the laundering of

2 profits derived from smuggling, narcotics traf3 ficking, illegal weapons transactions or other

4 criminal activity as evidenced by the enactment

5 and enforcement by the PLO of laws prohibit6 ing such conduct?

7 (D) Has the PLO taken the legal and law

8 enforcement steps necessary to eliminate, to the

9 maximum extent possible, bribery and other

10 forms of public corruption which facilitate the

11 execution of terrorist acts or which discourage

12 the investigation and prosecution of such acts,

13 as evidenced by the enactment and enforcement

14 of laws prohibiting such conduct?

15 (E) Has the PLO, as a matter of policy or

16 practice, encouraged or facilitated the continued

17 sponsorship of terrorist acts?

18 (F) Does any senior official of the PLO

19 engage in, encourage, or facilitate the incite20 ment, recruitment, training, planning, or con21 duct of terrorist operations affecting the United

22 States, Israel or other states or condone other

23 internationally recognized criminal activity?

24 (G) Has the PLO investigated aggressively

25 all cases in which any citizen of the United
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1 States or member of the United States Govern2 ment has been the victim, since 1964, of acts

3 or threats of violence, inflicted by or with the

4 complicity of any agent of the PLO or any po5 litical subdivision or supporter thereof, and en6 ergetically sought to bring the perpetrators of

7 such offense or offenses to justice?

8 (H) Having been requested to do so by the

9 United States Government, does the PLO fail

10 to provide reasonable cooperation to lawful ac11 tivities of United States law enforcement

12 agents, including the refusal of permission to

13 such agents engaged in counterterrorism to

14 pursue suspected terrorists or other criminal

15 elements that may support terrorist activities

16 into areas or facilities it controls?

17 (I) Has the PLO or its administrative au18 thority in Gaza and Jericho adopted legal codes

19 in order to enable law enforcement officials to

20 move more effectively against terrorists, the

21 supporters of terrorism and other related crimi22 nal elements, such as effective conspiracy laws

23 and asset seizure laws?

24 (J) Has the PLO expeditiously processed

25 United States, Israeli, or other countries’ extra-
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1 dition requests relating to terrorism, narcotics

2 trafficking or other criminal offenses?

3 (K) Has the PLO refused to protect or

4 given haven to any known terrorist, drug traf5 ficker or other accused or convicted of a serious

6 criminal offense, and has it expeditiously proc7 essed extradition requests relating to acts of

8 terrorism or narcotics trafficking made by other

9 countries?

10 (L) Has the PLO cooperated, both publicly

11 and privately, with efforts undertaken by the

12 President of the United States to end the Arab

13 League boycott of Israel and if so, to what ex14 tent and to what practical effect?

15 (8) VICTIMS OF TERRORISM COMPENSATION.—

16 Pursuant to section 5570 of Public Law 99–399 no

17 funds shall be made available to benefit the PLO,

18 the Palestinian Authority, or any person or entity

19 under its control until the President certifies to the

20 relevant congressional committees that full and fair

21 compensation is provided by the Palestine Liberation

22 Organization to United States victims of PLO ter23 rorism after adjudication in a United States court of

24 law.
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1 (9) PREEMPTION OF TERRORISM.—The Presi2 dent shall make available to Israel, equipment for

3 the state-of-the-art security examination of cargo

4 containers and vehicles: Provided, That this equip5 ment shall include automated, nonintrusive inspec6 tion technology, or technologies, for the direct detec7 tion and chemical elemental identification of contra8 band: Provided further, That some of this equipment

9 may be in the form of technology in the advanced

10 stages of development and suitable for field testing

11 and evaluation: Provided further, That not less than

12 $40,000,000 is authorized to be appropriated in fis13 cal year 1996 for the purposes set forth in this sec14 tion from the funds made available by the United

15 States to support the agreements between Israel and

16 the PLO: Provided further, That the President shall

17 negotiate the transfer of this technology no later

18 than September 30, 1995, and prior to the obliga19 tion of not more than $50,000,000 in United States

20 funds to benefit Palestinians living in Gaza, Jericho,

21 or any additional territories which might be adminis22 tered by the PLO: Provided further, That it is the

23 purpose of this section to enable the United States

24 to support efforts by both Israel and the PLO to

25 meet their compliance obligations and—
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1 (A) to assist them in combating terrorism;

2 (B) to assist them in combating narcotics

3 smuggling and other contraband smuggling;

4 and

5 (C) to assist them in ensuring proper

6 manifesting and customs regulation compliance

7 and revenue collection.

8 (10) REVIEW OF LEGISLATION.—Prior to the

9 disbursement of any funds authorized under this or

10 any other Act for the benefit of the PLO, the Pal11 estinian Authority or any of its constituencies, ac12 tivities or projects, the President shall carry out,

13 and report to the relevant congressional committees,

14 a thorough review of pertinent legislation affecting

15 the status of the PLO to include, but not be limited

16 to, title X of Public Law 100–204 and shall rec17 ommend to Congress modifications consistent with

18 United States policy toward countering terrorism

19 and promoting peace in the Middle East.

20 (11) PRESIDENTIAL DISCLOSURE.—No later

21 than 60 days following the enactment of this Act,

22 the President shall disclose in a classified manner to

23 the relevant congressional committees, the substance

24 of any secret agreements, understandings, or prom25 ises, either formal or informal, between the United
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1 States and Israel, and the United States and the

2 PLO, connected with the implementation of the Dec3 laration of Principles, that—

4 (A) commits the United States to any

5 course of action in its foreign, diplomatic or se6 curity policies;

7 (B) commits the United States to provide

8 funds or other forms of assistance for particu9 lar projects or activities;

10 (C) provides assurances to particular indi11 viduals who may or may not be targets of a

12 United States or international criminal inves13 tigation; and

14 (D) extends to particular individuals the

15 promise of protection or safety should future

16 circumstances warrant it.

17 (12) PROVISIONS THAT MAY BE SUSPENDED.—

18 Subject to the requirements of section 7 and the

19 prior approval of the Chairmen of the relevant com20 mittees of the Congress of the United States the

21 President may suspend only the following provisions

22 of law for a period not to extend beyond May 31,

23 1996:

24 (A) Section 307 of the Foreign Assistance

25 Act of 1961 (22 U.S.C. 2227) as it applies with
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1 respect to the Palestine Liberation Organization

2 or entities associated with it.

3 (B) Section 114 of the Department of

4 State Authorization Act, fiscal years 1984 and

5 1985 (22 U.S.C. 287e note) as it applies with

6 respect to the Palestine Liberation Organization

7 or entities associated with it.

8 (C) Section 1003 of the Foreign Relations

9 Authorization Act, fiscal years 1988 and 1989

10 (22 U.S.C. 5202).

11 (D) Section 37 of the Bretton Woods

12 Agreement Act (22 U.S.C. 286w) as it applies

13 to the granting to the Palestine Liberation Or14 ganization of observer status or other official

15 status at any meeting sponsored by or associ16 ated with the International Monetary Fund. As

17 used in this paragraph, the term ‘‘other official

18 status’’ does not include membership in the

19 International Monetary Fund.

20 SEC. 8. FINANCIAL DISCLOSURE.

21 (a) Within thirty (30) days of the enactment of this

22 Act, the President shall request that both the Palestine

23 Liberation Organization and the Palestinian Authority

24 provide to the United States, comprehensive financial

25 statements of their assets and income for the prior year:
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1 Provided, That in addition to these statements, the Presi2 dent shall certify to the Congress that—

3 (1) the United States Government has no

4 knowledge or information as to other further assets

5 or income of the Palestine Liberation Organization

6 or Palestinian Authority; and

7 (2) the Palestine Liberation Organization and

8 Palestinian Authority are spending and investing

9 substantially all of their respective assets and in10 come for the welfare and benefit of the Palestinian

11 people in the areas administered by the Palestinian

12 Authority and for purposes related exclusively to the

13 duties and functions of the Palestinian Authority as

14 authorized under agreements between Israel and the

15 PLO.

16 (b) No funds shall be obligated or expended for the

17 benefit of the Palestinian people in areas administered by

18 the Palestinian Authority until the President has delivered

19 to the relevant congressional committees the information

20 required in section 8(a).

21 (c) The President shall report to the relevant congres22 sional committees, in both classified and unclassified form,

23 no later than September 1, 1995, and every 180 days

24 thereafter, on all assistance provided by the international

25 community to the PLO and the Palestinian Authority, or
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1 any affiliated organization or entity, both directly and in2 directly, to include—

3 (1) the amount of such assistance, by project,

4 and whether the assistance is provided in cash or in

5 kind;

6 (2) the organization or entity through which the

7 international assistance is disbursed;

8 (3) the use(s), by project, to which the inter9 national assistance is being put; and

10 (4) the ultimate beneficiaries of the assistance.

11 SEC. 9. PROHIBITION ON FORMAL DIPLOMATIC REPRESEN12 TATION.

13 Notwithstanding any other provision of law, the

14 President of the United States shall make no commit15 ments and shall provide no funds for the obligation or ex16 penditure, for any activity leading to the establishment,

17 on either a temporary or permanent basis, of any United

18 States diplomatic post, to include an embassy, consulate

19 or interest section in any territory under the administra20 tive control of the PLO or the Palestinian Authority.

21 SEC. 10. RELEVANT CONGRESSIONAL COMMITTEES

22 DEFINED.

23 As used in this Act, the term ‘‘relevant congressional

24 committees’’ means—
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1 (1) the Committee on International Relations,

2 the Committee on Banking and Financial Services,

3 and the Committee on Appropriations of the House

4 of Representatives; and

5 (2) the Committee on Foreign Relations, the

6 Committee on Appropriations, and the Committee on

7 Banking, Housing, and Urban Affairs of the Senate.

8 SEC. 11. TERM OF THIS ACT.

9 This Act shall become effective upon the day of enact10 ment and expire no earlier than May 31, 1996, unless

11 amended.

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