H. R. 1868

One Hundred Fourth Congress

of the

United States of America

AT THE FIRST SESSION

Begun and held at the City of Washington on Wednesday,

the fourth day of January, one thousand nine hundred and ninety-five

An Act

Making appropriations for foreign operations, export financing, and related programs

for the fiscal year ending September 30, 1996, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled, That the

following sums are appropriated, out of any money in the Treasury

not otherwise appropriated, for the fiscal year ending September

30, 1996, and for other purposes, namely:

TITLE I—EXPORT AND INVESTMENT ASSISTANCE

EXPORT-IMPORT BANK OF THE UNITED STATES

The Export-Import Bank of the United States is authorized

to make such expenditures within the limits of funds and borrowing

authority available to such corporation, and in accordance with

law, and to make such contracts and commitments without regard

to fiscal year limitations, as provided by section 104 of the Government Corporation Control Act, as may be necessary in carrying

out the program for the current fiscal year for such corporation:

Provided, That none of the funds available during the current

fiscal year may be used to make expenditures, contracts, or commitments for the export of nuclear equipment, fuel, or technology

to any country other than a nuclear-weapon State as defined in

Article IX of the Treaty on the Non-Proliferation of Nuclear Weapons eligible to receive economic or military assistance under this

Act that has detonated a nuclear explosive after the date of enactment of this Act.

SUBSIDY APPROPRIATION

For the cost of direct loans, loan guarantees, insurance, and

tied-aid grants as authorized by section 10 of the Export-Import

Bank Act of 1945, as amended, $786,551,000 to remain available

until September 30, 1997: Provided, That such costs, including

the cost of modifying such loans, shall be as defined in section

502 of the Congressional Budget Act of 1974: Provided further,

That such sums shall remain available until 2010 for the disbursement of direct loans, loan guarantees, insurance and tied-aid grants

obligated in fiscal years 1996 and 1997: Provided further, That

up to $100,000,000 of funds appropriated by this paragraph shall

remain available until expended and may be used for tied-aid

grant purposes: Provided further, That none of the funds appropriated by this paragraph may be used for tied-aid credits or grants

except through the regular notification procedures of the Commit-
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tees on Appropriations: Provided further, That funds appropriated

by this paragraph are made available notwithstanding section

2(b)(2) of the Export-Import Bank Act of 1945, in connection with

the purchase or lease of any product by any East European country,

any Baltic State, or any agency or national thereof.

ADMINISTRATIVE EXPENSES

For administrative expenses to carry out the direct and guaranteed loan and insurance programs (to be computed on an accrual

basis), including hire of passenger motor vehicles and services as

authorized by 5 U.S.C. 3109, and not to exceed $20,000 for official

reception and representation expenses for members of the Board

of Directors, $45,614,000: Provided, That necessary expenses

(including special services performed on a contract or fee basis,

but not including other personal services) in connection with the

collection of moneys owed the Export-Import Bank, repossession

or sale of pledged collateral or other assets acquired by the ExportImport Bank in satisfaction of moneys owed the Export-Import

Bank, or the investigation or appraisal of any property, or the

evaluation of the legal or technical aspects of any transaction for

which an application for a loan, guarantee or insurance commitment

has been made, shall be considered nonadministrative expenses

for the purposes of this heading: Provided further, That, notwithstanding subsection (b) of section 117 of the Export Enhancement

Act of 1992, subsection (a) thereof shall remain in effect until

October 1, 1996.

OVERSEAS PRIVATE INVESTMENT CORPORATION

NONCREDIT ACCOUNT

The Overseas Private Investment Corporation is authorized

to make, without regard to fiscal year limitations, as provided

by 31 U.S.C. 9104, such expenditures and commitments within

the limits of funds available to it and in accordance with law

as may be necessary: Provided, That the amount available for

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

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

$26,000,000: Provided further, That project-specific transaction

costs, including direct and indirect costs incurred in claims settlements, and other direct costs associated with services provided

to specific investors or potential investors pursuant to section 234

of the Foreign Assistance Act of 1961, shall not be considered

administrative expenses for the purposes of this heading.

PROGRAM ACCOUNT

For the cost of direct and guaranteed loans, $72,000,000, as

authorized by section 234 of the Foreign Assistance Act of 1961:

Provided, That such costs, including the cost of modifying such

loans, shall be as defined in section 502 of the Congressional Budget

Act of 1974: Provided further, That such sums shall be available

for direct loan obligations and loan guaranty commitments incurred

or made during fiscal years 1996 and 1997: Provided further, That

such sums shall remain available through fiscal year 2003 for

the disbursement of direct and guaranteed loans obligated in fiscal
H. R. 1868—3

year 1996, and through fiscal year 2004 for the disbursement of

direct and guaranteed loans obligated in fiscal year 1997. In addition, such sums as may be necessary for administrative expenses

to carry out the credit program may be derived from amounts

available for administrative expenses to carry out the credit and

insurance programs in the Overseas Private Investment Corporation Noncredit Account and merged with said account.

FUNDS APPROPRIATED TO THE PRESIDENT

TRADE AND DEVELOPMENT AGENCY

For necessary expenses to carry out the provisions of section

661 of the Foreign Assistance Act of 1961, $40,000,000: Provided,

That the Trade and Development Agency may receive reimbursements from corporations and other entities for the costs of grants

for feasibility studies and other project planning services, to be

deposited as an offsetting collection to this account and to be available for obligation until September 30, 1997, for necessary expenses

under this paragraph: Provided further, That such reimbursements

shall not cover, or be allocated against, direct or indirect administrative costs of the agency.

TITLE II—BILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

For expenses necessary to enable the President to carry out

the provisions of the Foreign Assistance Act of 1961, and for other

purposes, to remain available until September 30, 1996, unless

otherwise specified herein, as follows:

AGENCY FOR INTERNATIONAL DEVELOPMENT

CHILD SURVIVAL AND DISEASE PROGRAMS

Of the funds appropriated in title II of this Act, and under

the heading ‘‘International Organizations and Programs’’ in title

IV of this Act, not less than $484,000,000 shall be made available

for programs for child survival, assistance to combat tropical and

other diseases, and related activities: Provided, That this amount

shall be made available for such activities as (1) immunization

programs, (2) oral rehydration programs, (3) health and nutrition

programs, and related education programs, which address the needs

of mothers and children, (4) water and sanitation programs, (5)

assistance for displaced and orphaned children, (6) programs for

the prevention, treatment, and control of, and research on, tuberculosis, HIV/AIDS, polio, malaria and other diseases, and (7) a

contribution on a grant basis to the United Nations Children’s

Fund (UNICEF).

DEVELOPMENT ASSISTANCE

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses to carry out the provisions of sections

103 through 106 and chapter 10 of part I of the Foreign Assistance

Act of 1961, title V of the International Security and Development

Cooperation Act of 1980 (Public Law 96–533) and the provisions
H. R. 1868—4

of section 401 of the Foreign Assistance Act of 1969, $1,675,000,000,

to remain available until September 30, 1997: Provided, That of

the amount appropriated under this heading, up to $20,000,000

may be made available for the Inter-American Foundation and

shall be apportioned directly to that agency: Provided further, That

of the amount appropriated under this heading, up to $11,500,000

may be made available for the African Development Foundation

and shall be apportioned directly to that agency: Provided further,

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

are administered by the Agency for International Development and

made available for family planning assistance, not less than 65

percent shall be made available directly to the agency’s central

Office of Population and shall be programmed by that office for

family planning activities: Provided further, That the President

shall seek to ensure that funds made available under this heading

for sub-Saharan Africa are in substantially the same proportion

to the total amount appropriated and made available by this Act

for development assistance as the proportion of funds made available for development assistance for sub-Saharan Africa was to

the total amount appropriated for development assistance in Public

Law 103–306: Provided further, That up to $25,000,000 of the

funds appropriated under this heading may be made available

for necessary expenses to carry out the provisions of section 667

of the Foreign Assistance Act: Provided further, That the President

shall seek to ensure that the percentage of funds made available

under this heading for the activities of private and voluntary

organizations and cooperatives is at least equal to the percentage

of funds made available pursuant to corresponding authorities in

law for the activities of private and voluntary organizations and

cooperatives in fiscal year 1995: Provided further That none of

the funds made available in this Act nor any unobligated balances

from prior appropriations may be made available to any organization or program which, as determined by the President of the

United States, supports or participates in the management of a

program of coercive abortion or involuntary sterilization: Provided

further, That none of the funds made available under this heading

may be used to pay for the performance of abortion as a method

of family planning or to motivate or coerce any person to practice

abortions; and that in order to reduce reliance on abortion in

developing nations, funds shall be available only to voluntary family

planning projects which offer, either directly or through referral

to, or information about access to, a broad range of family planning

methods and services: Provided further, That in awarding grants

for natural family planning under section 104 of the Foreign Assistance Act of 1961 no applicant shall be discriminated against because

of such applicant’s religious or conscientious commitment to offer

only natural family planning; and, additionally, all such applicants

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

or appropriating funds for foreign operations, export financing, and

related programs, the term ‘‘motivate’’, as it relates to family planning assistance, shall not be construed to prohibit the provision,

consistent with local law, of information or counseling about all

pregnancy options: Provided further, That nothing in this paragraph

shall be construed to alter any existing statutory prohibitions

against abortion under section 104 of the Foreign Assistance Act

of 1961: Provided further, That, notwithstanding section 109 of
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the Foreign Assistance Act of 1961, of the funds appropriated under

this heading not to exceed a total of $30,000,000 may be transferred

to ‘‘International Organizations and Programs’’ for a contribution

to the International Fund for Agricultural Development (IFAD),

and that any such transfer of funds shall be subject to the regular

notification procedures of the Committees on Appropriations: Provided further, That not less than $650,000 of the funds made

available under this heading should be made available for support

of the United States Telecommunications Training Institute.

CYPRUS

Of the funds appropriated under the headings ‘‘Development

Assistance’’ and ‘‘Economic Support Fund’’, not less than

$15,000,000 shall be made available for Cyprus to be used only

for scholarships, administrative support of the scholarship program,

bicommunal projects, and measures aimed at reunification of the

island and designed to reduce tensions and promote peace and

cooperation between the two communities on Cyprus.

BURMA

Of the funds appropriated by this Act to carry out the provisions

of chapter 8 of part I and chapter 4 of part II of the Foreign

Assistance Act of 1961, not less than $2,380,000 shall be made

available to support activities in Burma, along the Burma-Thailand

border, and for activities of Burmese student groups and other

organizations located outside Burma, for the purposes of fostering

democracy in Burma, supporting the provision of medical supplies

and other humanitarian assistance to Burmese located in Burma

or displaced Burmese along the borders, and for other purposes:

Provided, That of this amount, not less than $200,000 shall be

made available to support newspapers, publications, and other

media activities promoting democracy inside Burma: Provided further, That of this amount, not less than $380,000 shall be made

available for crop substitution activities in cooperation with the

Kachin people of Burma: Provided further, That funds made available under this heading may be made available notwithstanding

any other provision of law: Provided further, That provision of

such funds shall be made available subject to the regular notification procedures of the Committees on Appropriations.

PRIVATE AND VOLUNTARY ORGANIZATIONS

None of the funds appropriated or otherwise made available

by this Act for development assistance may be made available

to any United States private and voluntary organization, except

any cooperative development organization, which obtains less than

20 per centum of its total annual funding for international activities

from sources other than the United States Government: Provided,

That the requirements of the provisions of section 123(g) of the

Foreign Assistance Act of 1961 and the provisions on private and

voluntary organizations in title II of the ‘‘Foreign Assistance and

Related Programs Appropriations Act, 1985’’ (as enacted in Public

Law 98–473) shall be superseded by the provisions of this section,

except that the authority contained in the last sentence of section

123(g) may be exercised by the Administrator with regard to the

requirements of this paragraph.
H. R. 1868—6

Funds appropriated or otherwise made available under title

II of this Act should be made available to private and voluntary

organizations at a level which is equivalent to the level provided

in fiscal year 1995. Such private and voluntary organizations shall

include those which operate on a not-for-profit basis, receive contributions from private sources, receive voluntary support from

the public and are deemed to be among the most cost-effective

and successful providers of development assistance.

INTERNATIONAL DISASTER ASSISTANCE

For necessary expenses for international disaster relief,

rehabilitation, and reconstruction assistance pursuant to section

491 of the Foreign Assistance Act of 1961, as amended,

$181,000,000, to remain available until expended.

HUMANITARIAN ASSISTANCE TO THE FORMER YUGOSLAVIA

Of the funds appropriated in title II of this Act, $40,000,000

should be available only for emergency humanitarian assistance

to the former Yugoslavia, of which amount not less than $6,000,000

shall be available only for humanitarian assistance to Kosova.

DEBT RESTRUCTURING

For the cost, as defined in section 502 of the Congressional

Budget Act of 1974, of modifying direct loans and loan guarantees,

as the President may determine, for which funds have been appropriated or otherwise made available for programs within the International Affairs Budget Function 150, including the cost of selling,

reducing, or canceling amounts, through debt buybacks and swaps,

owed to the United States as a result of concessional loans made

to eligible Latin American and Caribbean countries, pursuant to

part IV of the Foreign Assistance Act of 1961, $10,000,000, to

remain available until expended.

MICRO AND SMALL ENTERPRISE DEVELOPMENT PROGRAM ACCOUNT

For the subsidy cost of direct loans and loan guarantees,

$1,500,000, as authorized by section 108 of the Foreign Assistance

Act of 1961, as amended: Provided, That such costs shall be as

defined in section 502 of the Congressional Budget Act of 1974:

Provided further, That guarantees of loans made under this heading

in support of microenterprise activities may guarantee up to 70

percent of the principal amount of any such loans notwithstanding

section 108 of the Foreign Assistance Act of 1961. In addition,

for administrative expenses to carry out programs under this heading, $500,000, all of which may be transferred to and merged

with the appropriation for Operating Expenses of the Agency for

International Development: Provided further, That funds made

available under this heading shall remain available until September

30, 1997.

HOUSING GUARANTY PROGRAM ACCOUNT

For the cost, as defined in section 502 of the Congressional

Budget Act of 1974, of guaranteed loans authorized by sections

221 and 222 of the Foreign Assistance Act of 1961, $4,000,000,

to remain available until September 30, 1997: Provided, That these
H. R. 1868—7

funds are available to subsidize loan principal, 100 percent of which

shall be guaranteed, pursuant to the authority of such sections.

In addition, for administrative expenses to carry out guaranteed

loan programs, $7,000,000, all of which may be transferred to

and merged with the appropriation for Operating Expenses of the

Agency for International Development: Provided further, That

commitments to guarantee loans under this heading may be entered

into notwithstanding the second and third sentences of section

222(a) and, with regard to programs for Eastern Europe and programs for the benefit of South Africans disadvantaged by apartheid,

section 223(j) of the Foreign Assistance Act of 1961: Provided further, That none of the funds appropriated under this heading shall

be obligated except through the regular notification procedures

of the Committees on Appropriations.

PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND DISABILITY

FUND

For payment to the ‘‘Foreign Service Retirement and Disability

Fund’’, as authorized by the Foreign Service Act of 1980,

$43,914,000.

OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL

DEVELOPMENT

For necessary expenses to carry out the provisions of section

667, $465,750,000: Provided, That of this amount not more than

$1,475,000 may be made available to pay for printing costs: Provided

further, That none of the funds appropriated by this Act for programs administered by the Agency for International Development

(AID) may be used to finance printing costs of any report or study

(except feasibility, design, or evaluation reports or studies) in excess

of $25,000 without the approval of the Administrator of the Agency

or the Administrator’s designee: Provided further, That notwithstanding any other provision of law, none of the funds appropriated

or otherwise made available by this Act may be made available

for expenses necessary to relocate the Agency for International

Development, or any part of that agency, to the building at the

Federal Triangle in Washington, District of Columbia.

OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL

DEVELOPMENT OFFICE OF INSPECTOR GENERAL

For necessary expenses to carry out the provisions of section

667, $30,200,000, to remain available until September 30, 1997,

which sum shall be available for the Office of the Inspector General

of the Agency for International Development.

OTHER BILATERAL ECONOMIC ASSISTANCE

ECONOMIC SUPPORT FUND

For necessary expenses to carry out the provisions of chapter

4 of part II, $2,340,000,000, to remain available until September

30, 1997: Provided, That of the funds appropriated under this

heading, not less than $1,200,000,000 shall be available only for

Israel, which sum shall be available on a grant basis as a cash

transfer and shall be disbursed within thirty days of enactment

of this Act or by October 31, 1995, whichever is later: Provided
H. R. 1868—8

further, That not less than $815,000,000 shall be available only for Egypt, which sum shall be provided on a grant basis, and

of which sum cash transfer assistance may be provided, with the

understanding that Egypt will undertake significant economic

reforms which are additional to those which were undertaken in

previous fiscal years, and of which not less than $200,000,000

shall be provided as Commodity Import Program assistance: Provided further, That the Egyptian pound equivalent of $85,000,000

generated from funds made available by this paragraph or generated from funds appropriated under this heading in prior appropriations Acts, may be made available to the United States pursuant

to the United States-Egypt Economic, Technical and Related Assistance Agreements of 1978, for the following activities under such

Agreements: the Egyptian pound equivalent of $50,000,000 may

be made available to replenish the existing endowment for the

American University in Cairo, and the Egyptian pound equivalent

of $35,000,000 may be made available for projects and programs,

including establishment of an endowment, which promote the

preservation and restoration of Egyptian antiquities: Provided further, That in exercising the authority to provide cash transfer

assistance for Israel and Egypt, the President shall ensure that

the level of such assistance does not cause an adverse impact

on the total level of non-military exports from the United States

to each such country: Provided further, That it is the sense of

the Congress that the recommended levels of assistance for Egypt

and Israel are based in great measure upon their continued participation in the Camp David Accords and upon the Egyptian-Israeli

peace treaty: Provided further, That none of the funds appropriated

under this heading shall be made available for Zaire.

INTERNATIONAL FUND FOR IRELAND

For necessary expenses to carry out the provisions of part

I of the Foreign Assistance Act of 1961, up to $19,600,000, which

shall be available for the United States contribution to the International Fund for Ireland and shall be made available in accordance

with the provisions of the Anglo-Irish Agreement Support Act of

1986 (Public Law 99–415): Provided, That such amount shall be

expended at the minimum rate necessary to make timely payment

for projects and activities: Provided further, That funds made available under this heading shall remain available until September

30, 1997.

ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

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

Foreign Assistance Act of 1961 and the Support for East European

Democracy (SEED) Act of 1989, $324,000,000, to remain available

until September 30, 1997, which shall be available, notwithstanding

any other provision of law, for economic assistance and for related

programs for Eastern Europe and the Baltic States.

(b) Funds appropriated under this heading or in prior appropriations Acts that are or have been made available for an Enterprise Fund may be deposited by such Fund in interest-bearing

accounts prior to the Fund’s disbursement of such funds for program

purposes. The Fund may retain for such program purposes any

interest earned on such deposits without returning such interest

to the Treasury of the United States and without further appropria-
H. R. 1868—9

tion by the Congress. Funds made available for Enterprise Funds

shall be expended at the minimum rate necessary to make timely

payment for projects and activities. (c) Funds appropriated under this heading shall be considered to be economic assistance under the Foreign Assistance Act of

1961 for purposes of making available the administrative authorities contained in that Act for the use of economic assistance.

ASSISTANCE FOR THE NEW INDEPENDENT STATES OF THE FORMER

SOVIET UNION

(a) For necessary expenses to carry out the provisions of chapter 11 of part I of the Foreign Assistance Act of 1961 and the FREEDOM Support Act, for assistance for the new independent states

of the former Soviet Union and for related programs, $641,000,000,

to remain available until September 30, 1997: Provided, That the

provisions of 498B(j) of the Foreign Assistance Act of 1961 shall

apply to funds appropriated by this paragraph. (b) None of the funds appropriated under this heading shall be transferred to the Government of Russia—

(1) unless that Government is making progress in implementing comprehensive economic reforms based on market principles, private ownership, negotiating repayment of

commercial debt, respect for commercial contracts, and equitable treatment of foreign private investment; and (2) if that Government applies or transfers United States

assistance to any entity for the purpose of expropriating or

seizing ownership or control of assets, investments, or ventures.

(c) Funds may be furnished without regard to subsection (b) if the President determines that to do so is in the national interest.

(d) None of the funds appropriated under this heading shall be made available to any government of the new independent

states of the former Soviet Union if that government directs any

action in violation of the territorial integrity or national sovereignty

of any other new independent state, such as those violations

included in the Helsinki Final Act: Provided, That such funds

may be made available without regard to the restriction in this

subsection if the President determines that to do so is in the

national security interest of the United States: Provided further,

That the restriction of this subsection shall not apply to the use

of such funds for the provision of assistance for purposes of humanitarian, disaster and refugee relief. (e) None of the funds appropriated under this heading for the new independent states of the former Soviet Union shall be

made available for any state to enhance its military capability:

Provided, That this restriction does not apply to demilitarization or nonproliferation programs. (f) Funds appropriated under this heading shall be subject to the regular notification procedures of the Committees on Appropriations. (g) Funds made available in this Act for assistance to the new independent states of the former Soviet Union shall be subject

to the provisions of section 117 (relating to environment and natural

resources) of the Foreign Assistance Act of 1961. (h) Funds appropriated under this heading may be made avail- able for assistance for Mongolia.

(i) Funds made available in this Act for assistance to the

new independent states of the former Soviet Union shall be provided
H. R. 1868—10

to the maximum extent feasible through the private sector, including small- and medium-size businesses, entrepreneurs, and others

with indigenous private enterprises in the region, intermediary

development organizations committed to private enterprise, and

private voluntary organizations: Provided, That grantees and contractors should, to the maximum extent possible, place in key

staff positions specialists with prior on the ground expertise in

the region of activity and fluency in one of the local languages.

(j) In issuing new task orders, entering into contracts, or making grants, with funds appropriated under this heading or in prior

appropriations Acts, for projects or activities that have as one

of their primary purposes the fostering of private sector development, the Coordinator for United States Assistance to the New

Independent States and the implementing agency shall encourage

the participation of and give significant weight to contractors and

grantees who propose investing a significant amount of their own

resources (including volunteer services and in-kind contributions)

in such projects and activities.

(k) Of the funds made available under this heading, not less

than $225,000,000 shall be made available for Ukraine, with the

understanding that Ukraine will undertake significant economic

reforms which are additional to those which were undertaken in

previous fiscal years, and of which not less than $50,000,000 (from

this or any other Act) shall be made available to improve energy

self-sufficiency and improve safety at nuclear reactors, and of which

$2,000,000 should be made available to conduct or implement an

assessment of the energy distribution grid that provides recommendations leading to increased access to power by industrial,

commercial and residential users, and of which not less than

$22,000,000 shall be made available to support the development

of small and medium enterprises, including independent broadcast

and print media.

(l) Of the funds made available under this heading, $5,000,000

should be made available for a project to screen, diagnose, and

treat victims of breast cancer associated with the 1985 incident

at the Chernobyl reactor in Ukraine. (m) Of the funds made available by this Act, not less than

$85,000,000 shall be made available for Armenia.

(n) Of the funds made available by this or any other Act,

$30,000,000 should be made available for Georgia. (o)(1) Effective ninety days after the date of enactment of this

Act, none of the funds appropriated under this heading may be

made available for Russia unless the President determines and

certifies in writing to the Committees on Appropriations that the

Government of Russia has terminated implementation of arrangements to provide Iran with technical expertise, training, technology,

or equipment necessary to develop a nuclear reactor or related

nuclear research facilities or programs.

(2) Subparagraph (1) shall not apply if the President determines

that making such funds available is important to the national

security interest of the United States. Any such determination

shall cease to be effective six months after being made unless

the President determines that its continuation is important to the

national security interest of the United States.

(p) Of the funds appropriated under this heading, $20,000,000

should be provided for hospital partnership programs, medical

assistance to directly reduce the incidence of infectious diseases
H. R. 1868—11

such as diphtheria or tuberculosis, and a program to reduce the

adverse impact of contaminated drinking water.

(q) Of the funds appropriated under this heading and under

the heading ‘‘Assistance for Eastern Europe and the Baltic States’’,

not less than $12,600,000 shall be made available for law enforcement training and exchanges, and investigative and technical assistance activities related to international criminal activities.

(r) Support should be provided from funds appropriated under

this heading for a ballot security project to promote public review

by Russian citizens over the conduct of parliamentary and presidential elections in Russia: Provided, That the Secretary of State

may waive this provision with regard to any election upon notification to the Committees on Appropriations that the Government

of Russia has blocked implementation of a ballot security project.

(s) Of the funds appropriated under this heading, not less

than $50,000,000 should be provided to the Western NIS and

Central Asian Enterprise Funds: Provided, That obligation of these

funds shall be consistent with sound business practices.

(t) The President shall establish a Trans-Caucasus Enterprise

Fund to encourage regional peace through economic cooperation:

Provided, That the President shall seek other bilateral and multilateral investors in the Fund: Provided further, That of the funds

made available under this heading, not less than $15,000,000 shall

be made available for a United States investment in the TransCaucasus Enterprise Fund.

(u) Funds appropriated under this heading or in prior appropriations Acts that are or have been made available for an Enterprise Fund may be deposited by such Fund in interest-bearing

accounts prior to the disbursement of such funds by the Fund

for program purposes. The Fund may retain for such program

proposes any interest earned on such deposits without returning

such interest to the Treasury of the United States and without

further appropriation by the Congress. Funds made available for

Enterprise Funds shall be expended at the minimum rate necessary

to make timely payment for projects and activities.

(v) Section 5421(d)(3)(B) of title 22, United States Code, is

amended by adding at the end thereof the following: ‘‘: Provided,

That, as to Enterprise Funds established with respect to more

than one host country, such Enterprise Fund may, in lieu of the

appointment of citizens of the host countries to its Board of Directors, establish an advisory council for the host region comprised

of citizens of each of the host countries or establish separate

advisory councils for each of the host countries (hereinafter in

this section referred to as the ‘Advisory Councils’), with which

the Enterprise Fund’s policies and proposed activities and such

host country citizens shall satisfy the experience and expertise

requirements of this clause.’’.

(w) Notwithstanding any other provision of law, assistance

may be provided for the Government of Azerbaijan for humanitarian

purposes, if the President determines that humanitarian assistance

provided in Azerbaijan through nongovernmental organizations is

not adequately addressing the suffering of refugees and internally

displaced persons.
H. R. 1868—12

INDEPENDENT AGENCY

PEACE CORPS

For expenses necessary to carry out the provisions of the Peace

Corps Act (75 Stat. 612), $205,000,000, including the purchase

of not to exceed five passenger motor vehicles for administrative

purposes for use outside of the United States: Provided, That none

of the funds appropriated under this heading shall be used to

pay for abortions: Provided further, That funds appropriated under

this heading shall remain available until September 30, 1997.

DEPARTMENT OF STATE

INTERNATIONAL NARCOTICS CONTROL

For necessary expenses to carry out the provisions of section

481 of the Foreign Assistance Act of 1961, $115,000,000: Provided,

That during fiscal year 1996, the Department of State may also

use the authority of section 608 of the Foreign Assistance Act

of 1961, without regard to its restrictions, to receive non-lethal

excess property from an agency of the United States Government

for the purpose of providing it to a foreign country under chapter

8 of part I of that Act subject to the regular notification procedures

of the Committees on Appropriations.

MIGRATION AND REFUGEE ASSISTANCE

For expenses, not otherwise provided for, necessary to enable

the Secretary of State to provide, as authorized by law, a contribution to the International Committee of the Red Cross, assistance

to refugees, including contributions to the International Organization for Migration and the United Nations High Commissioner

for Refugees, and other activities to meet refugee and migration

needs; salaries and expenses of personnel and dependents as authorized by the Foreign Service Act of 1980; allowances as authorized

by sections 5921 through 5925 of title 5, United States Code;

purchase and hire of passenger motor vehicles; and services as

authorized by section 3109 of title 5, United States Code,

$671,000,000: Provided, That not more than $12,000,000 shall be

available for administrative expenses: Provided further, That not

less than $80,000,000 shall be made available for refugees from

the former Soviet Union and Eastern Europe and other refugees

resettling in Israel.

REFUGEE RESETTLEMENT ASSISTANCE

For necessary expenses for the targeted assistance program

authorized by title IV of the Immigration and Nationality Act

and section 501 of the Refugee Education Assistance Act of 1980

and administered by the Office of Refugee Resettlement of the

Department of Health and Human Services, in addition to amounts

otherwise available for such purposes, $5,000,000.

UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE

FUND

For necessary expenses to carry out the provisions of section

2(c) of the Migration and Refugee Assistance Act of 1962, as
H. R. 1868—13

amended (22 U.S.C. 260(c)), $50,000,000, to remain available until

expended: Provided, That the funds made available under this

heading are appropriated notwithstanding the provisions contained

in section 2(c)(2) of the Migration and Refugee Assistance Act

of 1962 which would limit the amount of funds which could be

appropriated for this purpose.

ANTI-TERRORISM ASSISTANCE

For necessary expenses to carry out the provisions of chapter

8 of part II of the Foreign Assistance Act of 1961, $16,000,000.

NONPROLIFERATION AND DISARMAMENT FUND

For necessary expenses for a ‘‘Nonproliferation and Disarmament Fund’’, $20,000,000, to remain available until expended,

to promote bilateral and multilateral activities: Provided, That such

funds may be used pursuant to the authorities contained in section

504 of the FREEDOM Support Act: Provided further, That such

funds may also be used for such countries other than the new

independent states of the former Soviet Union and international

organizations when it is in the national security interest of the

United States to do so: Provided further, That funds appropriated

under this heading may be made available notwithstanding any

other provision of law: Provided further, That funds appropriated

under this heading shall be subject to the regular notification

procedures of the Committees on Appropriations.

TITLE III—MILITARY ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

INTERNATIONAL MILITARY EDUCATION AND TRAINING

For necessary expenses to carry out the provisions of section

541 of the Foreign Assistance Act of 1961, $39,000,000: Provided,

That up to $100,000 of the funds appropriated under this heading

may be made available for grant financed military education and

training for any high income country on the condition that that

country agrees to fund from its own resources the transportation

cost and living allowances of its students: Provided further, That

the civilian personnel for whom military education and training

may be provided under this heading may also include members

of national legislatures who are responsible for the oversight and

management of the military, and may also include individuals

who are not members of a government: Provided further, That

none of the funds appropriated under this heading shall be available

for Zaire and Guatemala: Provided further, That funds appropriated

under this heading for grant financed military education and training for Indonesia may only be available for expanded military

education and training.

FOREIGN MILITARY FINANCING PROGRAM

For expenses necessary for grants to enable the President to

carry out the provisions of section 23 of the Arms Export Control

Act, $3,208,390,000: Provided, That of the funds appropriated by

this paragraph not less than $1,800,000,000 shall be available for

grants only for Israel, and not less than $1,300,000,000 shall be
H. R. 1868—14

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

funds appropriated by this paragraph for Israel shall be disbursed

within thirty days of enactment of this Act or by October 31,

1995, whichever is later: Provided further, That to the extent that

the Government of Israel requests that funds be used for such

purposes, grants made available for Israel by this paragraph shall,

as agreed by Israel and the United States, be available for advanced

weapons systems, of which not less than $475,000,000 shall be

available for the procurement in Israel of defense articles and

defense services, including research and development: Provided further, That funds made available under this paragraph shall be

nonrepayable notwithstanding any requirement in section 23 of

the Arms Export Control Act: Provided further, That, for the purpose only of providing support for the Warsaw Initiative Program,

of the funds appropriated by this Act under the headings ‘‘Assistance for Eastern Europe and the Baltic States’’ and ‘‘Assistance

for the New Independent States of the Former Soviet Union’’, up

to a total of $20,000,000 may be transferred, notwithstanding any

other provision of law, to the funds appropriated under this paragraph: Provided further, That none of the funds made available

under this heading shall be available for any non-NATO country

participating in the Partnership for Peace Program except through

the regular notification procedures of the Committees on Appropriations.

For the cost, as defined in section 502 of the Congressional

Budget Act of 1974, of direct loans authorized by section 23 of

the Arms Export Control Act as follows: cost of direct loans,

$64,400,000: Provided, That these funds are available to subsidize

gross obligations for the principal amount of direct loans of not

to exceed $544,000,000: Provided further, That the rate of interest

charged on such loans shall be not less than the current average

market yield on outstanding marketable obligations of the United

States of comparable maturities: Provided further, That funds

appropriated under this heading shall be made available for Greece

and Turkey only on a loan basis, and the principal amount of

direct loans for each country shall not exceed the following:

$224,000,000 only for Greece and $320,000,000 only for Turkey.

None of the funds made available under this heading shall

be available to finance the procurement of defense articles, defense

services, or design and construction services that are not sold by

the United States Government under the Arms Export Control

Act unless the foreign country proposing to make such procurements

has first signed an agreement with the United States Government

specifying the conditions under which such procurements may be

financed with such funds: Provided, That all country and funding

level increases in allocations shall be submitted through the regular

notification procedures of section 515 of this Act: Provided further,

That funds made available under this heading shall be obligated

upon apportionment in accordance with paragraph (5)(C) of title

31, United States Code, section 1501(a): Provided further, That

none of the funds appropriated under this heading shall be available

for Zaire, Sudan, Peru, Liberia, and Guatemala: Provided further,

That none of the funds appropriated or otherwise made available

for use under this heading may be made available for Colombia

or Bolivia until the Secretary of State certifies that such funds

will be used by such country primarily for counternarcotics activities: Provided further, That funds made available under this head-
H. R. 1868—15

ing may be used, notwithstanding any other provision of law, for

demining activities, and may include activities implemented

through nongovernmental and international organizations: Provided

further, That not more than $100,000,000 of the funds made available under this heading shall be available for use in financing

the procurement of defense articles, defense services, or design

and construction services that are not sold by the United States

Government under the Arms Export Control Act to countries other

than Israel and Egypt: Provided further, That only those countries

for which assistance was justified for the ‘‘Foreign Military Sales

Financing Program’’ in the fiscal year 1989 congressional presentation for security assistance programs may utilize funds made

available under this heading for procurement of defense articles,

defense services or design and construction services that are not

sold by the United States Government under the Arms Export

Control Act: Provided further, That, subject to the regular notification procedures of the Committees on Appropriations, funds made

available under this heading for the cost of direct loans may also

be used to supplement the funds available under this heading

for grants, and funds made available under this heading for grants

may also be used to supplement the funds available under this

heading for the cost of direct loans: Provided further, That funds

appropriated under this heading shall be expended at the minimum

rate necessary to make timely payment for defense articles and

services: Provided further, That the Department of Defense shall

conduct during the current fiscal year nonreimbursable audits of

private firms whose contracts are made directly with foreign governments and are financed with funds made available under this

heading (as well as subcontractors thereunder) as requested by

the Defense Security Assistance Agency: Provided further, That

not more than $23,250,000 of the funds appropriated under this

heading may be obligated for necessary expenses, including the

purchase of passenger motor vehicles for replacement only for use

outside of the United States, for the general costs of administering

military assistance and sales: Provided further, That not more

than $355,000,000 of funds realized pursuant to section 21(e)(1)(A)

of the Arms Export Control Act may be obligated for expenses

incurred by the Department of Defense during fiscal year 1996

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

that this limitation may be exceeded only through the regular

notification procedures of the Committees on Appropriations.

PEACEKEEPING OPERATIONS

For necessary expenses to carry out the provisions of section

551 of the Foreign Assistance Act of 1961, $70,000,000: Provided,

That none of the funds appropriated under this paragraph shall

be obligated or expended except as provided through the regular

notification procedures of the Committees on Appropriations.
H. R. 1868—16

TITLE IV—MULTILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

INTERNATIONAL FINANCIAL INSTITUTIONS

CONTRIBUTION TO THE INTERNATIONAL BANK FOR RECONSTRUCTION

AND DEVELOPMENT

For payment to the International Bank for Reconstruction and

Development by the Secretary of the Treasury, for the United

States share of the paid-in share portion of the increases in capital

stock for the General Capital Increase, $28,189,963, to remain

available until expended: Provided, That not more than twentyone days prior to the obligation of each such sum, the Secretary

shall submit a certification to the Committees on Appropriations

that the Bank has not approved any loans to Iran since October

1, 1994, or the President of the United States certifies that withholding of these funds is contrary to the national interest of the United

States.

For payment to the International Bank for Reconstruction and

Development by the Secretary of the Treasury, for the United

States contribution to the Global Environment Facility (GEF),

$35,000,000, to remain available until September 30, 1997.

LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the International Bank for

Reconstruction and Development may subscribe without fiscal year

limitation to the callable capital portion of the United States share

of increases in capital stock in an amount not to exceed

$911,475,013.

CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT ASSOCIATION

For payment to the International Development Association by

the Secretary of the Treasury, $700,000,000, for the United States

contribution to the tenth replenishment, to remain available until

expended.

CONTRIBUTION TO THE INTERNATIONAL FINANCE CORPORATION

For payment to the International Finance Corporation by the

Secretary of the Treasury, $60,900,000, for the United States share

of the increase in subscriptions to capital stock, to remain available

until expended: Provided, That of the amount appropriated under

this heading not more than $5,269,000 may be expended for the

purchase of such stock in fiscal year 1996.

CONTRIBUTION TO THE INTER-AMERICAN DEVELOPMENT BANK

For payment to the Inter-American Development Bank by the

Secretary of the Treasury, for the United States share of the

paid-in share portion of the increase in capital stock, $25,952,110,

and for the United States share of the increase in the resources

of the Fund for Special Operations, $10,000,000, to remain available

until expended.
H. R. 1868—17

LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the Inter-American Development

Bank may subscribe without fiscal year limitation to the callable

capital portion of the United States share of such capital stock

in an amount not to exceed $1,523,767,142.

CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS

MULTILATERAL INVESTMENT FUND

For payment to the Enterprise for the Americas Multilateral

Investment Fund by the Secretary of the Treasury, for the United

States contribution to the Fund to be administered by the InterAmerican Development Bank, $53,750,000 to remain available until

expended.

CONTRIBUTION TO THE ASIAN DEVELOPMENT BANK

For payment to the Asian Development Bank by the Secretary

of the Treasury for the United States share of the paid-in portion

of the increase in capital stock, $13,221,596, to remain available

until expended.

LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the Asian Development Bank

may subscribe without fiscal year limitation to the callable capital

portion of the United States share of such capital stock in an

amount not to exceed $647,858,204.

CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND

For the United States contribution by the Secretary of the

Treasury to the increases in resources of the Asian Development

Fund, as authorized by the Asian Development Bank Act, as

amended (Public Law 89–369), $100,000,000, to remain available

until expended.

CONTRIBUTION TO THE EUROPEAN BANK FOR RECONSTRUCTION AND

DEVELOPMENT

For payment to the European Bank for Reconstruction and

Development by the Secretary of the Treasury, $70,000,000, for

the United States share of the paid-in share portion of the initial

capital subscription, to remain available until expended: Provided,

That of the amount appropriated under this heading not more

than $54,600,000 may be expended for the purchase of such stock

in fiscal year 1996.

LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the European Bank for

Reconstruction and Development may subscribe without fiscal year

limitation to the callable capital portion of the United States share

of such capital stock in an amount not to exceed $163,333,333.

NORTH AMERICAN DEVELOPMENT BANK

For payment to the North American Development Bank by

the Secretary of the Treasury, for the United States share of the
H. R. 1868—18

paid-in portion of the capital stock, $56,250,000, to remain available

until expended.

LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the North American Development Bank may subscribe without fiscal year limitation to the

callable capital portion of the United States share of the capital

stock of the North American Development Bank in an amount

not to exceed $318,750,000.

INTERNATIONAL ORGANIZATIONS AND PROGRAMS

For necessary expenses to carry out the provisions of section

301 of the Foreign Assistance Act of 1961, and of section 2 of

the United Nations Environment Program Participation Act of 1973,

$285,000,000: Provided, That none of the funds appropriated under

this heading shall be made available for the United Nations Fund

for Science and Technology: Provided further, That funds appropriated under this heading may be made available for the International Atomic Energy Agency only if the Secretary of State determines (and so reports to the Congress) that Israel is not being

denied its right to participate in the activities of that Agency:

Provided further, That none of the funds appropriated under this

heading that are made available to the United Nations Population

Fund (UNFPA) shall be made available for activities in the People’s

Republic of China: Provided further, That not more than

$30,000,000 of the funds appropriated under this heading may

be made available to the UNFPA: Provided further, That not more

than one-half of this amount may be provided to UNFPA before

March 1, 1996, and that no later than February 15, 1996, the

Secretary of State shall submit a report to the Committees on

Appropriations indicating the amount UNFPA is budgeting for the

People’s Republic of China in 1996: Provided further, That any

amount UNFPA plans to spend in the People’s Republic of China

in 1996 above $7,000,000, shall be deducted from the amount of

funds provided to UNFPA after March 1, 1996 pursuant to the

previous provisos: Provided further, That with respect to any funds

appropriated under this heading that are made available to UNFPA,

UNFPA shall be required to maintain such funds in a separate

account and not commingle them with any other funds: Provided

further, That funds may be made available to the Korean Peninsula Energy Development Organization (KEDO) for administrative

expenses and heavy fuel oil costs associated with the Agreed Framework: Provided further, That no funds may be provided for KEDO

for funding for administrative expenses and heavy fuel oil costs

beyond the total amount included for KEDO in the fiscal year

1996 congressional presentation: Provided further, That no funds

may be made available under this Act to KEDO unless the President

determines and certifies in writing to the Committees on Appropriations that (a) in accordance with section 1 of the Agreed Framework,

KEDO has designated a Republic of Korea company, corporation

or entity for the purpose of negotiating a prime contract to carry

out construction of the light water reactors provided for in the

Agreed Framework; and (b) the Democratic People’s Republic of

Korea is maintaining the freeze on its nuclear facilities as required

in the Agreed Framework; and (c) the United States is taking

steps to assure that progress is made on (1) the North-South dia-
H. R. 1868—19

logue, including efforts to reduce barriers to trade and investment,

such as removing restrictions on travel, telecommunications services

and financial transactions; and (2) implementation of the January

1, 1992, Joint Declaration on the Denuclearization of the Korean

Peninsula: Provided further, That a report on the specific efforts

with regard to subsections (a), (b) and (c) of the preceding proviso

shall be submitted by the President to the Committees on Appropriations six months after the date of enactment of this Act, and

every six months thereafter.

TITLE V—GENERAL PROVISIONS

OBLIGATIONS DURING LAST MONTH OF AVAILABILITY

SEC. 501. Except for the appropriations entitled ‘‘International

Disaster Assistance’’, and ‘‘United States Emergency Refugee and

Migration Assistance Fund’’, not more than 15 per centum of any

appropriation item made available by this Act shall be obligated

during the last month of availability.

PROHIBITION OF BILATERAL FUNDING FOR INTERNATIONAL FINANCIAL

INSTITUTIONS

SEC. 502. None of the funds contained in title II of this Act

may be used to carry out the provisions of section 209(d) of the

Foreign Assistance Act of 1961.

LIMITATION ON RESIDENCE EXPENSES

SEC. 503. Of the funds appropriated or made available pursuant

to this Act, not to exceed $126,500 shall be for official residence

expenses of the Agency for International Development during the

current fiscal year: Provided, That appropriate steps shall be taken

to assure that, to the maximum extent possible, United Statesowned foreign currencies are utilized in lieu of dollars.

LIMITATION ON EXPENSES

SEC. 504. Of the funds appropriated or made available pursuant

to this Act, not to exceed $5,000 shall be for entertainment expenses

of the Agency for International Development during the current

fiscal year.

LIMITATION ON REPRESENTATIONAL ALLOWANCES

SEC. 505. Of the funds appropriated or made available pursuant

to this Act, not to exceed $95,000 shall be available for representation allowances for the Agency for International Development during the current fiscal year: Provided, That appropriate steps shall

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

States-owned foreign currencies are utilized in lieu of dollars: Provided further, That of the funds made available by this Act for

general costs of administering military assistance and sales under

the heading ‘‘Foreign Military Financing Program’’, not to exceed

$2,000 shall be available for entertainment expenses and not to

exceed $50,000 shall be available for representation allowances:

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

under the heading ‘‘International Military Education and Training’’,

not to exceed $50,000 shall be available for entertainment allow-
H. R. 1868—20

ances: Provided further, That of the funds made available by this

Act for the Inter-American Foundation, not to exceed $2,000 shall

be available for entertainment and representation allowances: Provided further, That of the funds made available by this Act for

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

for entertainment expenses: Provided further, That of the funds

made available by this Act under the heading ‘‘Trade and Development Agency’’, not to exceed $2,000 shall be available for representation and entertainment allowances.

PROHIBITION ON FINANCING NUCLEAR GOODS

SEC. 506. None of the funds appropriated or made available

(other than funds for ‘‘International Organizations and Programs’’)

pursuant to this Act, for carrying out the Foreign Assistance Act

of 1961, may be used, except for purposes of nuclear safety, to

finance the export of nuclear equipment, fuel, or technology.

PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN COUNTRIES

SEC. 507. None of the funds appropriated or otherwise made

available pursuant to this Act shall be obligated or expended to

finance directly any assistance or reparations to Cuba, Iraq, Libya,

North Korea, Iran, Serbia, Sudan, or Syria: Provided, That for

purposes of this section, the prohibition on obligations or expenditures shall include direct loans, credits, insurance and guarantees

of the Export-Import Bank or its agents.

MILITARY COUPS

SEC. 508. None of the funds appropriated or otherwise made

available pursuant to this Act shall be obligated or expended to

finance directly any assistance to any country whose duly elected

Head of Government is deposed by military coup or decree: Provided, That assistance may be resumed to such country if the

President determines and reports to the Committees on Appropriations that subsequent to the termination of assistance a democratically elected government has taken office.

TRANSFERS BETWEEN ACCOUNTS

SEC. 509. None of the funds made available by this Act may

be obligated under an appropriation account to which they were

not appropriated, except for transfers specifically provided for in

this Act, unless the President, prior to the exercise of any authority

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

consults with and provides a written policy justification to the

Committees on Appropriations of the House of Representatives and

the Senate: Provided, That the exercise of such authority shall

be subject to the regular notification procedures of the Committees

on Appropriations, except for transfers specifically referred to in

this Act.

DEOBLIGATION/REOBLIGATION AUTHORITY

SEC. 510. (a) Amounts certified pursuant to section 1311 of

the Supplemental Appropriations Act, 1955, as having been obligated against appropriations heretofore made under the authority

of the Foreign Assistance Act of 1961 for the same general purpose
H. R. 1868—21

as any of the headings under title II of this Act are, if deobligated,

hereby continued available for the same period as the respective

appropriations under such headings or until September 30, 1996,

whichever is later, and for the same general purpose, and for

countries within the same region as originally obligated: Provided,

That the Appropriations Committees of both Houses of the Congress

are notified fifteen days in advance of the deobligation and

reobligation of such funds in accordance with regular notification

procedures of the Committees on Appropriations.

(b) Obligated balances of funds appropriated to carry out section

23 of the Arms Export Control Act as of the end of the fiscal

year immediately preceding the current fiscal year are, if

deobligated, hereby continued available during the current fiscal

year for the same purpose under any authority applicable to such

appropriations under this Act: Provided, That the authority of this

subsection may not be used in fiscal year 1996.

AVAILABILITY OF FUNDS

SEC. 511. No part of any appropriation contained in this Act

shall remain available for obligation after the expiration of the

current fiscal year unless expressly so provided in this Act: Provided, That funds appropriated for the purposes of chapters 1,

8 and 11 of part I, section 667, and chapter 4 of part II of the

Foreign Assistance Act of 1961, as amended, and funds provided

under the heading ‘‘Assistance for Eastern Europe and the Baltic

States’’, shall remain available until expended if such funds are

initially obligated before the expiration of their respective periods

of availability contained in this Act: Provided further, That, notwithstanding any other provision of this Act, any funds made available

for the purposes of chapter 1 of part I and chapter 4 of part

II of the Foreign Assistance Act of 1961 which are allocated or

obligated for cash disbursements in order to address balance of

payments or economic policy reform objectives, shall remain available until expended: Provided further, That the report required

by section 653(a) of the Foreign Assistance Act of 1961 shall designate for each country, to the extent known at the time of submission of such report, those funds allocated for cash disbursement

for balance of payment and economic policy reform purposes.

LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT

SEC. 512. No part of any appropriation contained in this Act

shall be used to furnish assistance to any country which is in

default during a period in excess of one calendar year in payment

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

to such country by the United States pursuant to a program for

which funds are appropriated under this Act: Provided, That this

section and section 620(q) of the Foreign Assistance Act of 1961

shall not apply to funds made available in this Act or during

the current fiscal year for Nicaragua, and for any narcotics-related

assistance for Colombia, Bolivia, and Peru authorized by the Foreign

Assistance Act of 1961 or the Arms Export Control Act.

COMMERCE AND TRADE

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

pursuant to this Act for direct assistance and none of the funds
H. R. 1868—22

otherwise made available pursuant to this Act to the Export-Import

Bank and the Overseas Private Investment Corporation shall be

obligated or expended to finance any loan, any assistance or any

other financial commitments for establishing or expanding production of any commodity for export by any country other than the

United States, if the commodity is likely to be in surplus on world

markets at the time the resulting productive capacity is expected

to become operative and if the assistance will cause substantial

injury to United States producers of the same, similar, or competing

commodity: Provided, That such prohibition shall not apply to the

Export-Import Bank if in the judgment of its Board of Directors

the benefits to industry and employment in the United States

are likely to outweigh the injury to United States producers of

the same, similar, or competing commodity, and the Chairman

of the Board so notifies the Committees on Appropriations.

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

to carry out chapter 1 of part I of the Foreign Assistance Act

of 1961 shall be available for any testing or breeding feasibility

study, variety improvement or introduction, consultancy, publication, conference, or training in connection with the growth or

production in a foreign country of an agricultural commodity for

export which would compete with a similar commodity grown or

produced in the United States: Provided, That this subsection shall

not prohibit—

(1) activities designed to increase food security in developing countries where such activities will not have a significant

impact in the export of agricultural commodities of the United

States; or

(2) research activities intended primarily to benefit American producers.

SURPLUS COMMODITIES

SEC. 514. The Secretary of the Treasury shall instruct the

United States Executive Directors of the International Bank for

Reconstruction and Development, the International Development

Association, the International Finance Corporation, the Inter-American Development Bank, the International Monetary Fund, the

Asian Development Bank, the Inter-American Investment Corporation, the North American Development Bank, the European Bank

for Reconstruction and Development, the African Development

Bank, and the African Development Fund to use the voice and

vote of the United States to oppose any assistance by these institutions, using funds appropriated or made available pursuant to this

Act, for the production or extraction of any commodity or mineral

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

will cause substantial injury to United States producers of the

same, similar, or competing commodity.

NOTIFICATION REQUIREMENTS

SEC. 515. For the purposes of providing the Executive Branch

with the necessary administrative flexibility, none of the funds

made available under this Act for ‘‘Development Assistance’’, ‘‘International organizations and programs’’, ‘‘Trade and Development

Agency’’, ‘‘International narcotics control’’, ‘‘Assistance for Eastern

Europe and the Baltic States’’, ‘‘Assistance for the New Independent

States of the Former Soviet Union’’, ‘‘Economic Support Fund’’,
H. R. 1868—23

‘‘Peacekeeping operations’’, ‘‘Operating expenses of the Agency for

International Development’’, ‘‘Operating expenses of the Agency

for International Development Office of Inspector General’’, ‘‘Nonproliferation and Disarmament Fund’’, ‘‘Anti-terrorism assistance’’,

‘‘Foreign Military Financing Program’’, ‘‘International military education and training’’, ‘‘Inter-American Foundation’’, ‘‘African Development Foundation’’, ‘‘Peace Corps’’, ‘‘Migration and refugee assistance’’, shall be available for obligation for activities, programs,

projects, type of materiel assistance, countries, or other operations

not justified or in excess of the amount justified to the Appropriations Committees for obligation under any of these specific headings

unless the Appropriations Committees of both Houses of Congress

are previously notified fifteen days in advance: Provided, That

the President shall not enter into any commitment of funds appropriated for the purposes of section 23 of the Arms Export Control

Act for the provision of major defense equipment, other than conventional ammunition, or other major defense items defined to be

aircraft, ships, missiles, or combat vehicles, not previously justified

to Congress or 20 per centum in excess of the quantities justified

to Congress unless the Committees on Appropriations are notified

fifteen days in advance of such commitment: Provided further, That

this section shall not apply to any reprogramming for an activity,

program, or project under chapter 1 of part I of the Foreign Assistance Act of 1961 of less than 10 per centum of the amount previously

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

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

requirements of this section or any similar provision of this Act

or any prior Act requiring notification in accordance with the regular notification procedures of the Committees on Appropriations

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

to human health or welfare: Provided further, That in case of

any such waiver, notification to the Congress, or the appropriate

congressional committees, shall be provided as early as practicable,

but in no event later than three days after taking the action

to which such notification requirement was applicable, in the context of the circumstances necessitating such waiver: Provided further, That any notification provided pursuant to such a waiver shall contain an explanation of the emergency circumstances. Drawdowns made pursuant to section 506(a)(2) of the Foreign Assistance Act of 1961 shall be subject to the regular notification

procedures of the Committees on Appropriations.

LIMITATION ON AVAILABILITY OF FUNDS FOR INTERNATIONAL

ORGANIZATIONS AND PROGRAMS

SEC. 516. Notwithstanding any other provision of law or of this Act, none of the funds provided for ‘‘International Organizations

and Programs’’ shall be available for the United States proportionate share, in accordance with section 307(c) of the Foreign

Assistance Act of 1961, for any programs identified in section 307,

or for Libya, Iran, or, at the discretion of the President, Communist

countries listed in section 620(f) of the Foreign Assistance Act

of 1961, as amended: Provided, That, subject to the regular notifica- tion procedures of the Committees on Appropriations, funds appropriated under this Act or any previously enacted Act making appropriations for foreign operations, export financing, and related programs, which are returned or not made available for organizations

and programs because of the implementation of this section or
H. R. 1868—24

any similar provision of law, shall remain available for obligation

through September 30, 1997.

ECONOMIC SUPPORT FUND ASSISTANCE FOR ISRAEL

SEC. 517. The Congress finds that progress on the peace process

in the Middle East is vitally important to United States security

interests in the region. The Congress recognizes that, in fulfilling

its obligations under the Treaty of Peace Between the Arab Republic

of Egypt and the State of Israel, done at Washington on March

26, 1979, Israel incurred severe economic burdens. Furthermore,

the Congress recognizes that an economically and militarily secure

Israel serves the security interests of the United States, for a

secure Israel is an Israel which has the incentive and confidence

to continue pursuing the peace process. Therefore, the Congress

declares that, subject to the availability of appropriations, it is

the policy and the intention of the United States that the funds

provided in annual appropriations for the Economic Support Fund

which are allocated to Israel shall not be less than the annual

debt repayment (interest and principal) from Israel to the United

States Government in recognition that such a principle serves

United States interests in the region.

PROHIBITION ON FUNDING FOR ABORTIONS AND INVOLUNTARY

STERILIZATION

SEC. 518. None of the funds made available to carry out part

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

used to pay for the performance of abortions as a method of family

planning or to motivate or coerce any person to practice abortions.

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

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

performance of involuntary sterilization as a method of family planning or to coerce or provide any financial incentive to any person

to undergo sterilizations. None of the funds made available to

carry out part I of the Foreign Assistance Act of 1961, as amended,

may be used to pay for any biomedical research which relates

in whole or in part, to methods of, or the performance of, abortions

or involuntary sterilization as a means of family planning. None

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

Assistance Act of 1961, as amended, may be obligated or expended

for any country or organization if the President certifies that the

use of these funds by any such country or organization would

violate any of the above provisions related to abortions and involuntary sterilizations: Provided, That none of the funds made available

under this Act may be used to lobby for or against abortion.

AUTHORIZATION OF POPULATION PLANNING

SEC. 518A. Notwithstanding section 526 of this Act, none of

the funds made available in this Act for population planning activities or other population assistance pursuant to section 104(b) of

the Foreign Assistance Act or any other provision of law, or funds

made available in title IV of this Act as a contribution to the

United Nations Population Fund (UNFPA) may be obligated or

expended prior to July 1, 1996, unless such funding is expressly

authorized by law: Provided, That if such funds are not authorized

by law prior to July 1, 1996, funds appropriated in title II of
H. R. 1868—25

this Act for population planning activities or other population assistance may be made available for obligation and expenditure in

an amount not to exceed 65 percent of the total amount appropriated

or otherwise made available by Public Law 103–306 and Public

Law 104–19 for such activities for fiscal year 1995, and funds

appropriated in title IV of this Act as a contribution to the United

Nations Population Fund (UNFPA) may be made available for

obligation and expenditure in an amount not to exceed 65 percent

of the total amount appropriated or otherwise made available by

Public Law 103–306 and Public Law 104–19 for a contribution

to UNFPA for fiscal year 1995: Provided further, That, pursuant

to the previous proviso, such funds may be apportioned only on

a monthly basis, beginning July 1, 1996 and ending September

30, 1997, and such monthly apportionments may not exceed 6.67

percent of the total available for such activities: Provided further,

That notwithstanding any other provision of this Act, funds appropriated by this Act for the United Nations Population Fund

(UNFPA) shall remain available for obligation until September

30, 1997.

REPORTING REQUIREMENT

SEC. 519. The President shall submit to the Committees on

Appropriations the reports required by section 25(a)(1) of the Arms

Export Control Act.

SPECIAL NOTIFICATION REQUIREMENTS

SEC. 520. None of the funds appropriated in this Act shall

be obligated or expended for Colombia, Dominican Republic, Guatemala, Haiti, Liberia, Nicaragua, Pakistan, Peru, Russia, Sudan,

or Zaire except as provided through the regular notification procedures of the Committees on Appropriations: Provided, That this

section shall not apply to funds appropriated by this Act to carry

out the provisions of chapter 1 of part I of the Foreign Assistance

Act of 1961 that are made available for Nicaragua.

DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

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

activity’’ shall be defined at the Appropriations Act account level

and shall include all Appropriations and Authorizations Acts earmarks, ceilings, and limitations with the exception that for the

following accounts: Economic Support Fund and Foreign Military

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

considered to include country, regional, and central program level

funding within each such account; for the development assistance

accounts of the Agency for International Development ‘‘program,

project, and activity’’ shall also be considered to include central

program level funding, either as (1) justified to the Congress, or

(2) allocated by the executive branch in accordance with a report,

to be provided to the Committees on Appropriations within thirty

days of enactment of this Act, as required by section 653(a) of

the Foreign Assistance Act of 1961.

CHILD SURVIVAL AND AIDS ACTIVITIES

SEC. 522. Up to $8,000,000 of the funds made available by

this Act for assistance for family planning, health, child survival,
H. R. 1868—26

and AIDS, may be used to reimburse United States Government

agencies, agencies of State governments, institutions of higher

learning, and private and voluntary organizations for the full cost

of individuals (including for the personal services of such individuals) detailed or assigned to, or contracted by, as the case may

be, the Agency for International Development for the purpose of

carrying out family planning activities, child survival activities

and activities relating to research on, and the treatment and control

of, acquired immune deficiency syndrome in developing countries:

Provided, That funds appropriated by this Act that are made available for child survival activities or activities relating to research

on, and the treatment and control of, acquired immune deficiency

syndrome may be made available notwithstanding any provision

of law that restricts assistance to foreign countries: Provided further, That funds appropriated by this Act that are made available

for family planning activities may be made available notwithstanding section 512 of this Act and section 620(q) of the Foreign Assistance Act of 1961.

PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN COUNTRIES

SEC. 523. None of the funds appropriated or otherwise made

available pursuant to this Act shall be obligated to finance indirectly

any assistance or reparations to Cuba, Iraq, Libya, Iran, Syria,

North Korea, or the People’s Republic of China, unless the President

of the United States certifies that the withholding of these funds

is contrary to the national interest of the United States.

RECIPROCAL LEASING

SEC. 524. Section 61(a) of the Arms Export Control Act is

amended by striking out ‘‘1995’’ and inserting in lieu thereof ‘‘1996’’.

NOTIFICATION ON EXCESS DEFENSE EQUIPMENT

SEC. 525. Prior to providing excess Department of Defense

articles in accordance with section 516(a) of the Foreign Assistance

Act of 1961, the Department of Defense shall notify the Committees

on Appropriations to the same extent and under the same conditions

as are other committees pursuant to subsection (c) of that section:

Provided, That before issuing a letter of offer to sell excess defense

articles under the Arms Export Control Act, the Department of

Defense shall notify the Committees on Appropriations in accordance with the regular notification procedures of such Committees:

Provided further, That such Committees shall also be informed

of the original acquisition cost of such defense articles.

AUTHORIZATION REQUIREMENT

SEC. 526. Funds appropriated by this Act may be obligated

and expended notwithstanding section 10 of Public Law 91–672

and section 15 of the State Department Basic Authorities Act of

1956.

OPPOSITION TO ASSISTANCE TO TERRORIST COUNTRIES BY

INTERNATIONAL FINANCIAL INSTITUTIONS

SEC. 527. (a) INSTRUCTIONS FOR UNITED STATES EXECUTIVE

DIRECTORS.—The Secretary of the Treasury shall instruct the
H. R. 1868—27

United States Executive Director of each international financial

institution designated in subsection (b), and the Administrator of

the Agency for International Development shall instruct the United

States Executive Director of the International Fund for Agriculture

Development, to use the voice and vote of the United States to

oppose any loan or other use of the funds of the respective institution to or for a country for which the Secretary of State has

made a determination under section 6(j) of the Export Administration Act of 1979.

(b) DEFINITION.—For purposes of this section, the term ‘‘international financial institution’’ includes—

(1) the International Bank for Reconstruction and Development, the International Development Association, and the

International Monetary Fund; and

(2) wherever applicable, the Inter-American Development

Bank, the Asian Development Bank, the African Development

Bank, the African Development Fund, and the European Bank

for Reconstruction and Development.

PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST COUNTRIES

SEC. 527A. (a) Notwithstanding any other provision of law,

funds appropriated for bilateral assistance under any heading of

this Act and funds appropriated under any such heading in a

provision of law enacted prior to enactment of this Act, shall not

be made available to any country which the President determines—

(1) grants sanctuary from prosecution to any individual

or group which has committed an act of international terrorism,

or

(2) otherwise supports international terrorism.

(b) The President may waive the application of subsection (a)

to a country if the President determines that national security

or humanitarian reasons justify such waiver. The President shall

publish each waiver in the Federal Register and, at least fifteen

days before the waiver takes effect, shall notify the Committees

on Appropriations of the waiver (including the justification for

the waiver) in accordance with the regular notification procedures

of the Committees on Appropriations.

COMMERCIAL LEASING OF DEFENSE ARTICLES

SEC. 528. Notwithstanding any other provision of law, and

subject to the regular notification requirements of the Committees

on Appropriations, the authority of section 23(a) of the Arms Export

Control Act may be used to provide financing to Israel, Egypt

and NATO and major non-NATO allies for the procurement by

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

articles from United States commercial suppliers, not including

Major Defense Equipment (other than helicopters and other types

of aircraft having possible civilian application), if the President

determines that there are compelling foreign policy or national

security reasons for those defense articles being provided by

commercial lease rather than by government-to-government sale

under such Act.
H. R. 1868—28

COMPETITIVE INSURANCE

SEC. 528A. All Agency for International Development contracts and solicitations, and subcontracts entered into under such contracts, shall include a clause requiring that United States insurance

companies have a fair opportunity to bid for insurance when such

insurance is necessary or appropriate.

STINGERS IN THE PERSIAN GULF REGION

SEC. 529. Except as provided in section 581 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990, the United States may not sell or otherwise make

available any Stingers to any country bordering the Persian Gulf

under the Arms Export Control Act or chapter 2 of part II of

the Foreign Assistance Act of 1961.

DEBT-FOR-DEVELOPMENT

SEC. 530. In order to enhance the continued participation of

nongovernmental organizations in economic assistance activities

under the Foreign Assistance Act of 1961, including endowments,

debt-for-development and debt-for-nature exchanges, a nongovernmental organization which is a grantee or contractor of the Agency

for International Development may place in interest bearing

accounts funds made available under this Act or prior Acts or

local currencies which accrue to that organization as a result of

economic assistance provided under title II of this Act and any

interest earned on such investment may be used for the purpose

for which the assistance was provided to that organization.

COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES

SEC. 531A. (a) COSTING BASIS.—Section 22 of the Arms Export Control Act (22 U.S.C. 2762) is amended by adding at the end

the following: ‘‘(d) COMPETITIVE PRICING.—Procurement contracts made in

implementation of sales under this section for defense articles and

defense services wholly paid for from funds made available on

a nonrepayable basis shall be priced on the same costing basis

with regard to profit, overhead, independent research and development, bid and proposal, and other costing elements, as is applicable

to procurements of like items purchased by the Department of

Defense for its own use.’’.

(b) EFFECTIVE DATE AND IMPLEMENTING REGULATIONS.—Section

22(d) of the Arms Export Control Act, as added by subsection

(a)—

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

of the enactment of this Act;

(2) shall be applicable only to contracts made in

implementation of sales made after such effective date; and

(3) shall be implemented by revised procurement regulations, which shall be issued prior to such effective date.

(c) DIRECT COSTS ALLOWABLE.—Direct costs associated with

meeting a foreign customer’s additional or unique requirements

will continue to be allowable under such contracts. Loadings

applicable to such direct costs shall be permitted at the same

rates applicable to procurement of like items purchased by the

Department of Defense for its own use.
H. R. 1868—29

STOCKPILES OF DEFENSE ARTICLES

SEC. 531B. (a) LIMITATION ON VALUE OF ADDITIONS.—Section

514(b)(1) of the Foreign Assistance Act of 1961 (22 U.S.C.

2321h(b)(1)) is amended by inserting ‘‘or in the implementation

of agreements with Israel’’ after ‘‘North Atlantic Treaty Organization’’.

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

514(b)(2) of such Act (22 U.S.C. 2321h(b)(2)) is amended to read

as follows:

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

articles in foreign countries shall not exceed $50,000,000 for each

of the fiscal years 1996 and 1997. ‘‘(B) Of the amount specified in subparagraph (A) for each of the fiscal years 1996 and 1997, not more than $40,000,000

may be made available for stockpiles in the Republic of Korea

and not more than $10,000,000 may be made available for stockpiles

in Thailand.’’.

(c) LOCATION OF STOCKPILES OF DEFENSE AUTHORITIES.—Section 514(c) of such Act (22 U.S.C. 2321h(c)) is amended to read

as follows:

‘‘(c) LOCATION OF STOCKPILES OF DEFENSE ARTICLES.— ‘‘(1) LIMITATION.—Except as provided in paragraph (2), no stockpile of defense articles may be located outside the boundaries of a United States military base or a military base used

primarily by the United States. ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not apply with respect to stockpiles of defense articles located in the Republic

of Korea, Thailand, any country that is a member of the North

Atlantic Treaty Organization, any country that is a major nonNATO ally, or any other country the President may designate.

At least 15 days before designating a country pursuant to

the last clause of the preceding sentence, the President shall

notify the congressional committees specified in section 634A(a)

in accordance with the procedures applicable to reprogramming

notifications under that section.’’.

SEPARATE ACCOUNTS

SEC. 532. (a) SEPARATE ACCOUNTS FOR LOCAL CURRENCIES.—

(1) If assistance is furnished to the government of a foreign country

under chapters 1 and 10 of part I or chapter 4 of part II of

the Foreign Assistance Act of 1961 under agreements which result

in the generation of local currencies of that country, the Administrator of the Agency for International Development shall— (A) require that local currencies be deposited in a separate

account established by that government; (B) enter into an agreement with that government which

sets forth—

(i) the amount of the local currencies to be generated,

and

(ii) the terms and conditions under which the currencies so deposited may be utilized, consistent with this

section; and

(C) establish by agreement with that government the

responsibilities of the Agency for International Development

and that government to monitor and account for deposits into

and disbursements from the separate account.
H. R. 1868—30

(2) USES OF LOCAL CURRENCIES.—As may be agreed upon with

the foreign government, local currencies deposited in a separate

account pursuant to subsection (a), or an equivalent amount of

local currencies, shall be used only—

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

4 of part II (as the case may be), for such purposes as—

(i) project and sector assistance activities, or

(ii) debt and deficit financing; or

(B) for the administrative requirements of the United

States Government.

(3) PROGRAMMING ACCOUNTABILITY.—The Agency for International Development shall take all appropriate steps to ensure

that the equivalent of the local currencies disbursed pursuant to

subsection (a)(2)(A) from the separate account established pursuant

to subsection (a)(1) are used for the purposes agreed upon pursuant

to subsection (a)(2).

(4) TERMINATION OF ASSISTANCE PROGRAMS.—Upon termination

of assistance to a country under chapters 1 or 10 of part I or

chapter 4 of part II (as the case may be), any unencumbered

balances of funds which remain in a separate account established

pursuant to subsection (a) shall be disposed of for such purposes

as may be agreed to by the government of that country and the

United States Government.

(5) CONFORMING AMENDMENTS.—The provisions of this subsection shall supersede the tenth and eleventh provisos contained

under the heading ‘‘Sub-Saharan Africa, Development Assistance’’

as included in the Foreign Operations, Export Financing, and

Related Programs Appropriations Act, 1989 and sections 531(d)

and 609 of the Foreign Assistance Act of 1961.

(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—(1) If assistance is made available to the government of a foreign country,

under chapters 1 or 10 of part I or chapter 4 of part II of the

Foreign Assistance Act of 1961, as cash transfer assistance or

as nonproject sector assistance, that country shall be required to

maintain such funds in a separate account and not commingle

them with any other funds.

(2) APPLICABILITY OF OTHER PROVISIONS OF LAW.—Such funds

may be obligated and expended notwithstanding provisions of law

which are inconsistent with the nature of this assistance including

provisions which are referenced in the Joint Explanatory Statement

of the Committee of Conference accompanying House Joint Resolution 648 (H. Report No. 98–1159).

(3) NOTIFICATION.—At least fifteen days prior to obligating

any such cash transfer or nonproject sector assistance, the President

shall submit a notification through the regular notification procedures of the Committees on Appropriations, which shall include

a detailed description of how the funds proposed to be made available will be used, with a discussion of the United States interests

that will be served by the assistance (including, as appropriate,

a description of the economic policy reforms that will be promoted

by such assistance).

(4) EXEMPTION.—Nonproject sector assistance funds may be

exempt from the requirements of subsection (b)(1) only through

the notification procedures of the Committees on Appropriations.
H. R. 1868—31

COMPENSATION FOR UNITED STATES EXECUTIVE DIRECTORS TO

INTERNATIONAL FINANCIAL INSTITUTIONS

SEC. 533. (a) No funds appropriated by this Act may be made

as payment to any international financial institution while the

United States Executive Director to such institution is compensated

by the institution at a rate which, together with whatever compensation such Director receives from the United States, is in

excess of the rate provided for an individual occupying a position

at level IV of the Executive Schedule under section 5315 of title

5, United States Code, or while any alternate United States Director

to such institution is compensated by the institution at a rate

in excess of the rate provided for an individual occupying a position

at level V of the Executive Schedule under section 5316 of title

5, United States Code.

(b) For purposes of this section, ‘‘international financial institutions’’ are: the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the Asian Development Fund, the African Development

Bank, the African Development Fund, the International Monetary

Fund, the North American Development Bank, and the European

Bank for Reconstruction and Development.

COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST IRAQ

SEC. 534. (a) DENIAL OF ASSISTANCE.—None of the funds appropriated or otherwise made available pursuant to this Act to carry

out the Foreign Assistance Act of 1961 (including title IV of chapter

2 of part I, relating to the Overseas Private Investment Corporation)

or the Arms Export Control Act may be used to provide assistance

to any country that is not in compliance with the United Nations

Security Council sanctions against Iraq, Serbia or Montenegro

unless the President determines and so certifies to the Congress

that—

(1) such assistance is in the national interest of the United

States;

(2) such assistance will directly benefit the needy people

in that country; or

(3) the assistance to be provided will be humanitarian

assistance for foreign nationals who have fled Iraq and Kuwait.

(b) IMPORT SANCTIONS.—If the President considers that the

taking of such action would promote the effectiveness of the economic sanctions of the United Nations and the United States

imposed with respect to Iraq, Serbia, or Montenegro, as the case

may be, and is consistent with the national interest, the President

may prohibit, for such a period of time as he considers appropriate,

the importation into the United States of any or all products of

any foreign country that has not prohibited— (1) the importation of products of Iraq, Serbia, or

Montenegro into its customs territory, and (2) the export of its products to Iraq, Serbia, or Montenegro,

as the case may be.

POW/MIA MILITARY DRAWDOWN

SEC. 535. (a) Notwithstanding any other provision of law, the

President may direct the drawdown, without reimbursement by

the recipient, of defense articles from the stocks of the Department
H. R. 1868—32

of Defense, defense services of the Department of Defense, and

military education and training, of an aggregate value not to exceed

$15,000,000 in fiscal year 1996, as may be necessary to carry

out subsection (b).

(b) Such defense articles, services and training may be provided

to Vietnam, Cambodia and Laos, under subsection (a) as the President determines are necessary to support efforts to locate and

repatriate members of the United States Armed Forces and civilians

employed directly or indirectly by the United States Government

who remain unaccounted for from the Vietnam War, and to ensure

the safety of United States Government personnel engaged in such

cooperative efforts and to support United States Department of

Defense-sponsored humanitarian projects associated with the POW/

MIA efforts. Any aircraft shall be provided under this section only

to Laos and only on a lease or loan basis, but may be provided

at no cost notwithstanding section 61 of the Arms Export Control

Act and may be maintained with defense articles, services and

training provided under this section.

(c) The President shall, within sixty days of the end of any

fiscal year in which the authority of subsection (a) is exercised,

submit a report to the Congress which identifies the articles, services, and training drawn down under this section.

MEDITERRANEAN EXCESS DEFENSE ARTICLES

SEC. 536. During fiscal year 1996, the provisions of section

573(e) of the Foreign Operations, Export Financing, and Related

Programs Appropriations Act, 1990, shall be applicable, for the

period specified therein, to excess defense articles made available

under sections 516 and 519 of the Foreign Assistance Act of 1961.

CASH FLOW FINANCING

SEC. 537. For each country that has been approved for cash

flow financing (as defined in section 25(d) of the Arms Export

Control Act, as added by section 112(b) of Public Law 99–83) under

the Foreign Military Financing Program, any Letter of Offer and

Acceptance or other purchase agreement, or any amendment thereto, for a procurement in excess of $100,000,000 that is to be financed

in whole or in part with funds made available under this Act

shall be submitted through the regular notification procedures to

the Committees on Appropriations.

AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMERICAN

FOUNDATION AND THE AFRICAN DEVELOPMENT FOUNDATION

SEC. 538. Unless expressly provided to the contrary, provisions

of this or any other Act, including provisions contained in prior

Acts authorizing or making appropriations for foreign operations,

export financing, and related programs, shall not be construed

to prohibit activities authorized by or conducted under the Peace

Corps Act, the Inter-American Foundation Act, or the African Development Foundation Act. The appropriate agency shall promptly

report to the Committees on Appropriations whenever it is conducting activities or is proposing to conduct activities in a country

for which assistance is prohibited.
H. R. 1868—33

IMPACT ON JOBS IN THE UNITED STATES

SEC. 539. None of the funds appropriated by this Act may be obligated or expended to provide— (a) any financial incentive to a business enterprise cur- rently located in the United States for the purpose of inducing

such an enterprise to relocate outside the United States if

such incentive or inducement is likely to reduce the number

of employees of such business enterprise in the United States

because United States production is being replaced by such

enterprise outside the United States; (b) assistance for the purpose of establishing or developing in a foreign country any export processing zone or designated

area in which the tax, tariff, labor, environment, and safety

laws of that country do not apply, in part or in whole, to

activities carried out within that zone or area, unless the President determines and certifies that such assistance is not likely

to cause a loss of jobs within the United States; or (c) assistance for any project or activity that contributes to the violation of internationally recognized workers rights,

as defined in section 502(a)(4) of the Trade Act of 1974, of

workers in the recipient country, including any designated zone

or area in that country: Provided, That in recognition that the application of this subsection should be commensurate with

the level of development of the recipient country and sector,

the provisions of this subsection shall not preclude assistance

for the informal sector in such country, micro and small-scale

enterprise, and smallholder agriculture.

AUTHORITY TO ASSIST BOSNIA-HERCEGOVINA

SEC. 540. (a) Congress finds as follows:

(1) The United Nations has imposed an embargo on the transfer of arms to any country on the territory of the former

Yugoslavia. (2) The federated states of Serbia and Montenegro have a large supply of military equipment and ammunition and

the Serbian forces fighting the government of BosniaHercegovina have more than one thousand battle tanks,

armored vehicles, and artillery pieces.

(3) Because the United Nations arms embargo is serving

to sustain the military advantage of the aggressor, the United

Nations should exempt the government of Bosnia-Hercegovina

from its embargo.

(b) Pursuant to a lifting of the United Nations arms embargo,

or to a unilateral lifting of the arms embargo by the President

of the United States, against Bosnia-Hercegovina, the President

is authorized to transfer, subject to prior notification of the Committees on Appropriations, to the government of that nation, without

reimbursement, defense articles from the stocks of the Department

of Defense and defense services of the Department of Defense

of an aggregate value not to exceed $100,000,000 in fiscal year

1996: Provided, That the President certifies in a timely fashion

to the Congress that the transfer of such articles would assist

that nation in self-defense and thereby promote the security and

stability of the region.

(c) Within 60 days of any transfer under the authority provided

in subsection (b), and every 60 days thereafter, the President shall
H. R. 1868—34

report in writing to the Speaker of the House of Representatives

and the President pro tempore of the Senate concerning the articles

transferred and the disposition thereof.

(d) There are authorized to be appropriated to the President

such sums as may be necessary to reimburse the applicable appropriation, fund, or account for defense articles provided under this

section.

RESTRICTIONS ON THE TERMINATION OF SANCTIONS AGAINST SERBIA

AND MONTENEGRO

SEC. 540A. (a) RESTRICTIONS.—Notwithstanding any other

provision of law, no sanction, prohibition, or requirement described

in section 1511 of the National Defense Authorization Act for Fiscal

Year 1994 (Public Law 103–160), with respect to Serbia or

Montenegro, may cease to be effective, unless—

(1) the President first submits to the Congress a certification described in subsection (b); and

(2) the requirements of section 1511 of that Act are met.

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

is a certification that—

(1) there is substantial progress toward—

(A) the realization of a separate identity for Kosova

and the right of the people of Kosova to govern themselves;

or

(B) the creation of an international protectorate for

Kosova;

(2) there is substantial improvement in the human rights

situation in Kosova;

(3) international human rights observers are allowed to

return to Kosova; and

(4) the elected government of Kosova is permitted to meet

and carry out its legitimate mandate as elected representatives

of the people of Kosova.

(c) WAIVER AUTHORITY.—The President may waive the application in whole or in part, of subsection (a) if the President certifies

to the Congress that the President has determined that the waiver

is necessary to meet emergency humanitarian needs or to achieve

a negotiated settlement of the conflict in Bosnia-Herzegovina that

is acceptable to the parties.

(d) EXPANDED AUTHORITY.—Section 660(b) of the Foreign

Assistance Act of 1961 is amended—

(1) in paragraph (3), by striking ‘‘or’’;

(2) in paragraph (4), by striking the period at the end

thereof and inserting ‘‘; or’’;

(3) adding the following new paragraphs:

‘‘(5) with respect to assistance, including training, relating

to sanctions monitoring and enforcement;

‘‘(6) with respect to assistance provided to reconstitute

civilian police authority and capability in the post-conflict restoration of host nation infrastructure for the purposes of

supporting a nation emerging from instability, and the provision

of professional public safety training, to include training in

internationally recognized standards of human rights, the rule

of law, anti-corruption, and the promotion of civilian police

roles that support democracy.’’.
H. R. 1868—35

SPECIAL AUTHORITIES

SEC. 541. (a) Funds appropriated in title II of this Act that

are made available for Afghanistan, Lebanon, and Cambodia, and

for victims of war, displaced children, displaced Burmese, humanitarian assistance for Romania, and humanitarian assistance for

the peoples of Bosnia-Hercegovina, Croatia, and Kosova, may be

made available notwithstanding any other provision of law: Provided, That any such funds that are made available for Cambodia shall be subject to the provisions of section 531(e) of the Foreign

Assistance Act of 1961 and section 906 of the International Security

and Development Cooperation Act of 1985: Provided further, That

the President shall terminate assistance to any country or organization that he determines is cooperating, tactically or strategically,

with the Khmer Rouge in their military operations, or to the military of any country which the President determines is not taking

steps to prevent a pattern or practice of commercial relations

between its members and the Khmer Rouge. (b) Funds appropriated by this Act to carry out the provisions of sections 103 through 106 of the Foreign Assistance Act of 1961

may be used, notwithstanding any other provision of law, for the

purpose of supporting tropical forestry and energy programs aimed

at reducing emissions of greenhouse gases, and for the purpose

of supporting biodiversity conservation activities: Provided, That

such assistance shall be subject to sections 116, 502B, and 620A

of the Foreign Assistance Act of 1961. (c) During fiscal year 1996, the President may use up to $40,000,000 under the authority of section 451 of the Foreign Assistance Act of 1961, notwithstanding the funding ceiling contained

in subsection (a) of that section.

(d) The Agency for International Development may employ personal services contractors, notwithstanding any other provision

of law, for the purpose of administering programs for the West

Bank and Gaza.

POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT OF ISRAEL

SEC. 542. It is the sense of the Congress that—

(1) the Arab League countries should immediately and

publicly renounce the primary boycott of Israel and the secondary and tertiary boycott of American firms that have commercial ties with Israel; and

(2) the President should—

(A) take more concrete steps to encourage vigorously

Arab League countries to renounce publicly the primary

boycotts of Israel and the secondary and tertiary boycotts

of American firms that have commercial relations with

Israel as a confidence-building measure; (B) take into consideration the participation of any

recipient country in the primary boycott of Israel and the

secondary and tertiary boycotts of American firms that

have commercial relations with Israel when determining

whether to sell weapons to said country; (C) report to Congress on the specific steps being taken

by the President to bring about a public renunciation of

the Arab primary boycott of Israel and the secondary and

tertiary boycotts of American firms that have commercial

relations with Israel; and
H. R. 1868—36

(D) encourage the allies and trading partners of the

United States to enact laws prohibiting businesses from

complying with the boycott and penalizing businesses that

do comply.

ANTI-NARCOTICS ACTIVITIES

SEC. 543. (a) Of the funds appropriated or otherwise made

available by this Act for ‘‘Economic Support Fund’’, assistance may

be provided to strengthen the administration of justice in countries

in Latin America and the Caribbean in accordance with the provisions of section 534 of the Foreign Assistance Act of 1961, except

that programs to enhance protection of participants in judicial

cases may be conducted notwithstanding section 660 of that Act.

(b) Funds made available pursuant to this section may be

made available notwithstanding the third sentence of section 534(e)

of the Foreign Assistance Act of 1961. Funds made available pursuant to subsection (a) for Bolivia, Colombia and Peru may be made

available notwithstanding section 534(c) and the second sentence

of section 534(e) of the Foreign Assistance Act of 1961.

ELIGIBILITY FOR ASSISTANCE

SEC. 544. (a) ASSISTANCE THROUGH NONGOVERNMENTAL

ORGANIZATIONS.—Restrictions contained in this or any other Act

with respect to assistance for a country shall not be construed

to restrict assistance in support of programs of nongovernmental

organizations from funds appropriated by this Act to carry out

the provisions of chapters 1 and 10 of part I of the Foreign Assistance Act of 1961: Provided, That the President shall take into

consideration, in any case in which a restriction on assistance

would be applicable but for this subsection, whether assistance

in support of programs of nongovernmental organizations is in

the national interest of the United States: Provided further, That

before using the authority of this subsection to furnish assistance

in support of programs of nongovernmental organizations, the President shall notify the Committees on Appropriations under the regular notification procedures of those committees, including a description of the program to be assisted, the assistance to be provided,

and the reasons for furnishing such assistance: Provided further,

That nothing in this subsection shall be construed to alter any

existing statutory prohibitions against abortion or involuntary sterilizations contained in this or any other Act. (b) PUBLIC LAW 480.—During fiscal year 1996, restrictions contained in this or any other Act with respect to assistance for

a country shall not be construed to restrict assistance under the

Agricultural Trade Development and Assistance Act of 1954: Provided, That none of the funds appropriated to carry out title I

of such Act and made available pursuant to this subsection may

be obligated or expended except as provided through the regular

notification procedures of the Committees on Appropriations.

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

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

Act or any comparable provision of law prohibiting assistance

to countries that support international terrorism; or

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

Act of 1961 or any comparable provision of law prohibiting
H. R. 1868—37

assistance to countries that violate internationally recognized

human rights.

EARMARKS

SEC. 544A. (a) Funds appropriated by this Act which are earmarked may be reprogrammed for other programs within the same

account notwithstanding the earmark if compliance with the earmark is made impossible by operation of any provision of this

or any other Act or, with respect to a country with which the

United States has an agreement providing the United States with

base rights or base access in that country, if the President determines that the recipient for which funds are earmarked has significantly reduced its military or economic cooperation with the United

States since enactment of the Foreign Operations, Export Financing,

and Related Programs Appropriations Act, 1991; however, before

exercising the authority of this subsection with regard to a base

rights or base access country which has significantly reduced its

military or economic cooperation with the United States, the President shall consult with, and shall provide a written policy justification to the Committees on Appropriations: Provided, That any such

reprogramming shall be subject to the regular notification procedures of the Committees on Appropriations: Provided further, That

assistance that is reprogrammed pursuant to this subsection shall

be made available under the same terms and conditions as originally

provided.

(b) In addition to the authority contained in subsection (a),

the original period of availability of funds appropriated by this

Act and administered by the Agency for International Development

that are earmarked for particular programs or activities by this

or any other Act shall be extended for an additional fiscal year

if the Administrator of such agency determines and reports

promptly to the Committees on Appropriations that the termination

of assistance to a country or a significant change in circumstances

makes it unlikely that such earmarked funds can be obligated

during the original period of availability: Provided, That such earmarked funds that are continued available for an additional fiscal

year shall be obligated only for the purpose of such earmark.

CEILINGS AND EARMARKS

SEC. 545. Ceilings and earmarks contained in this Act shall

not be applicable to funds or authorities appropriated or otherwise

made available by any subsequent Act unless such Act specifically

so directs.

EXCESS DEFENSE ARTICLES

SEC. 546. (a) The authority of section 519 of the Foreign Assistance Act of 1961, as amended, may be used in fiscal year 1996

to provide nonlethal excess defense articles to countries for which

United States foreign assistance has been requested and for which

receipt of such articles was separately justified for the fiscal year,

without regard to the restrictions in subsection (a) of section 519.

(b) The authority of section 516 of the Foreign Assistance

Act of 1961, as amended, may be used in fiscal year 1996 to

provide defense articles to Jordan, Estonia, Latvia, and Lithuania.
H. R. 1868—38

PROHIBITION ON PUBLICITY OR PROPAGANDA

SEC. 547. No part of any appropriation contained in this Act shall be used for publicity or propaganda purposes within the

United States not authorized before the date of enactment of this

Act by the Congress: Provided, That not to exceed $750,000 may be made available to carry out the provisions of section 316 of

Public Law 96–533.

USE OF AMERICAN RESOURCES

SEC. 548. To the maximum extent possible, assistance provided

under this Act should make full use of American resources, including commodities, products, and services.

PROHIBITION OF PAYMENTS TO UNITED NATIONS MEMBERS

SEC. 549. None of the funds appropriated or made available

pursuant to this Act for carrying out the Foreign Assistance Act

of 1961, may be used to pay in whole or in part any assessments,

arrearages, or dues of any member of the United Nations.

CONSULTING SERVICES

SEC. 550. The expenditure of any appropriation under this Act for any consulting service through procurement contract, pursuant to section 3109 of title 5, United States Code, shall be limited

to those contracts where such expenditures are a matter of public

record and available for public inspection, except where otherwise

provided under existing law, or under existing Executive order

pursuant to existing law.

PRIVATE VOLUNTARY ORGANIZATIONS—DOCUMENTATION

SEC. 551. None of the funds appropriated or made available

pursuant to this Act shall be available to a private voluntary

organization which fails to provide upon timely request any document, file, or record necessary to the auditing requirements of

the Agency for International Development.

PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS THAT EX- PORT LETHAL MILITARY EQUIPMENT TO COUNTRIES SUPPORTING

INTERNATIONAL TERRORISM

SEC. 552. (a) None of the funds appropriated or otherwise

made available by this Act may be available to any foreign government which provides lethal military equipment to a country the

government of which the Secretary of State has determined is

a terrorist government for purposes of section 40(d) of the Arms

Export Control Act. The prohibition under this section with respect

to a foreign government shall terminate 12 months after that

government ceases to provide such military equipment. This section

applies with respect to lethal military equipment provided under

a contract entered into after the date of enactment of this Act.

(b) Assistance restricted by subsection (a) or any other similar provision of law, may be furnished if the President determines

that furnishing such assistance is important to the national

interests of the United States.

(c) Whenever the waiver of subsection (b) is exercised, the

President shall submit to the appropriate congressional committees
H. R. 1868—39

a report with respect to the furnishing of such assistance. Any

such report shall include a detailed explanation of the assistance

to be provided, including the estimated dollar amount of such

assistance, and an explanation of how the assistance furthers

United States national interests.

WITHHOLDING OF ASSISTANCE FOR PARKING FINES OWED BY FOREIGN

COUNTRIES

SEC. 553. (a) IN GENERAL.—Of the funds made available for

a foreign country under part I of the Foreign Assistance Act of

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

fully adjudicated parking fines and penalties owed to the District

of Columbia by such country as of the date of enactment of this

Act shall be withheld from obligation for such country until the

Secretary of State certifies and reports in writing to the appropriate

congressional committees that such fines and penalties are fully

paid to the government of the District of Columbia.

(b) DEFINITION.—For purposes of this section, the term ‘‘appropriate congressional committees’’ means the Committee on Foreign

Relations and the Committee on Appropriations of the Senate and

the Committee on International Relations and the Committee on

Appropriations of the House of Representatives.

LIMITATION ON ASSISTANCE FOR THE PLO FOR THE WEST BANK AND

GAZA

SEC. 554. None of the funds appropriated by this Act may

be obligated for assistance for the Palestine Liberation Organization

for the West Bank and Gaza unless the President has exercised

the authority under section 583(a) of the Middle East Peace Facilitation Act of 1994 (part E of title V of Public Law 103–236) or

any other legislation to suspend or make inapplicable section 307

of the Foreign Assistance Act of 1961 and that suspension is still

in effect: Provided, That if the President fails to make the certification under section 583(b)(2) of the Middle East Peace Facilitation

Act or to suspend the prohibition under other legislation, funds

appropriated by this Act may not be obligated for assistance for

the Palestine Liberation Organization for the West Bank and Gaza.

EXPORT FINANCING TRANSFER AUTHORITIES

SEC. 555. Not to exceed 5 percent of any appropriation other

than for administrative expenses made available for fiscal year

1996 for programs under title I of this Act may be transferred

between such appropriations for use for any of the purposes, programs and activities for which the funds in such receiving account

may be used, but no such appropriation, except as otherwise specifically provided, shall be increased by more than 25 percent by

any such transfer: Provided, That the exercise of such authority

shall be subject to the regular notification procedures of the

Committees on Appropriations.

WAR CRIMES TRIBUNALS

SEC. 556. If the President determines that doing so will contribute to a just resolution of charges regarding genocide or other

violations of international humanitarian law, the authority of section 552(c) of the Foreign Assistance Act of 1961, as amended,
H. R. 1868—40

may be used to provide up to $25,000,000 of commodities and

services to the United Nations War Crimes Tribunal established

with regard to the former Yugoslavia by the United Nations Security

Council or such other tribunals or commissions as the Council

may establish to deal with such violations, without regard to the

ceiling limitation contained in paragraph (2) thereof: Provided, That

the determination required under this section shall be in lieu of

any determinations otherwise required under section 552(c): Provided further, That 60 days after the date of enactment of this

Act, and every 180 days thereafter, the Secretary of State shall

submit a report to the Committees on Appropriations describing

the steps the United States Government is taking to collect information regarding allegations of genocide or other violations of international law in the former Yugoslavia and to furnish that information to the United Nations War Crimes Tribunal for the former

Yugoslavia.

NONLETHAL EXCESS DEFENSE ARTICLES

SEC. 557. Notwithstanding section 519(f) of the Foreign Assistance Act of 1961, during fiscal year 1996, funds available to the

Department of Defense may be expended for crating, packing, handling and transportation of nonlethal excess defense articles transferred under the authority of section 519 to countries eligible to

participate in the Partnership for Peace and to receive assistance

under Public Law 101–179.

LANDMINES

SEC. 558. Notwithstanding any other provision of law, demining

equipment available to any department or agency and used in

support of the clearing of landmines for humanitarian purposes

may be disposed of on a grant basis in foreign countries, subject

to such terms and conditions as the President may prescribe: Provided, That section 1365(c) of the National Defense Authorization

Act for Fiscal Year 1993 (Public Law 102–484; 22 U.S.C., 2778

note) is amended by striking out ‘‘During the four-year period

beginning on October 23, 1992’’ and inserting in lieu thereof ‘‘During

the five-year period beginning on October 23, 1992’’.

CLARIFICATION OF RESTRICTIONS

SEC. 559. (a) IN GENERAL.—Section 620E of the Foreign Assist- ance Act of 1961 (22 U.S.C. 2375) is amended—

(1) in subsection (e)—

(A) by striking the words ‘‘No assistance’’ and inserting

the words ‘‘No military assistance’’;

(B) by striking the words ‘‘in which assistance is to

be furnished or military equipment or technology’’ and

inserting the words ‘‘in which military assistance is to

be furnished or military equipment or technology’’;

(C) by striking the words ‘‘the proposed United States

assistance’’ and inserting the words ‘‘the proposed United

States military assistance’’;

(D) by inserting ‘‘(1)’’ immediately after ‘‘(e)’’; and

(E) by adding the following new paragraphs:

‘‘(2) The prohibitions in this section do not apply to any

assistance or transfer provided for the purposes of:
H. R. 1868—41

‘‘(A) International narcotics control (including chapter 8 of part I of this Act) or any provision of law available

for providing assistance for counternarcotics purposes. ‘‘(B) Facilitating military-to-military contact, training (including chapter 5 of part II of this Act) and humanitarian

and civic assistance projects. ‘‘(C) Peacekeeping and other multilateral operations (including chapter 6 of part II of this Act relating to peacekeeping) or any provision of law available for providing

assistance for peacekeeping purposes, except that lethal

military equipment provided under this subparagraph shall

be provided on a lease or loan basis only and shall be

returned upon completion of the operation for which it

was provided. ‘‘(D) Antiterrorism assistance (including chapter 8 of part II of this Act relating to antiterrorism assistance)

or any provision of law available for antiterrorism assistance purposes.

‘‘(3) The restrictions of this subsection shall continue to

apply to contracts for the delivery of F–16 aircraft to Pakistan. ‘‘(4) Notwithstanding the restrictions contained in this sub- section, military equipment, technology, or defense services,

other than F–16 aircraft, may be transferred to Pakistan pursuant to contracts or cases entered into before October 1, 1990.’’;

and

(2) by adding at the end the following new subsections: ‘‘(f) STORAGE COSTS.—The President may release the Govern- ment of Pakistan of its contractual obligation to pay the United

States Government for the storage costs of items purchased prior

to October 1, 1990, but not delivered by the United States Government pursuant to subsection (e) and may reimburse the Government

of Pakistan for any such amount paid, on such terms and conditions

as the President may prescribe: Provided, That such payments have no budgetary impact. ‘‘(g) INAPPLICABILITY OF RESTRICTIONS TO PREVIOUSLY OWNED

ITEMS.—Section 620E(e) does not apply to broken, worn or unupgraded items or their equivalent which Pakistan paid for and

took possession of prior to October 1, 1990 and which the Government of Pakistan sent to the United States for repair or upgrade.

Such equipment or its equivalent may be returned to the Government of Pakistan: Provided, That the President determines and

so certifies to the appropriate congressional committees that such

equipment or equivalent neither constitutes nor has received any

significant qualitative upgrade since being transferred to the United

States and that its total value does not exceed $25,000,000.

‘‘(h) BALLISTIC MISSILE SANCTIONS NOT AFFECTED.—Nothing contained herein shall affect sanctions for transfers of missile equipment or technology required under section 11B of the Export

Administration Act of 1979 or section 73 of the Arms Export Control

Act.’’.

RESTRICTIONS CONCERNING THE PALESTINIAN AUTHORITY

SEC. 560. None of the funds appropriated by this Act may be obligated or expended to create in any part of Jerusalem a

new office of any department or agency of the United States Government for the purpose of conducting official United States Government business with the Palestinian Authority over Gaza and Jericho
H. R. 1868—42

or any successor Palestinian governing entity provided for in the

Israel-PLO Declaration of Principles: Provided, That this restriction

shall not apply to the acquisition of additional space for the existing

Consulate General in Jerusalem: Provided further, That meetings

between officers and employees of the United States and officials

of the Palestinian Authority, or any successor Palestinian governing

entity provided for in the Israel-PLO Declaration of Principles,

for the purpose of conducting official United States Government

business with such authority should continue to take place in locations other than Jerusalem. As has been true in the past, officers

and employees of the United States Government may continue

to meet in Jerusalem on other subjects with Palestinians (including

those who now occupy positions in the Palestinian Authority), have

social contacts, and have incidental discussions.

PROHIBITION OF PAYMENT OF CERTAIN EXPENSES

SEC. 561. None of the funds appropriated or otherwise made

available by this Act under the heading ‘‘INTERNATIONAL MILITARY

EDUCATION AND TRAINING’’ or ‘‘FOREIGN MILITARY FINANCING PROGRAM’’ for Informational Program activities may be obligated or

expended to pay for—

(1) alcoholic beverages;

(2) food (other than food provided at a military installation)

not provided in conjunction with Informational Program trips

where students do not stay at a military installation; or

(3) entertainment expenses for activities that are substantially of a recreational character, including entrance fees at

sporting events and amusement parks.

SEC. 562. (a) IN GENERAL.—None of the funds made available

in this Act may be used for assistance in support of any country

when it is made known to the President that the government

of such country prohibits or otherwise restricts, directly or

indirectly, the transport or delivery of United States humanitarian

assistance.

(b) EXCEPTION.—Funds may be made available with regard

to the restriction in subsection (a) if the President determines

that to do so is in the national security interest of the United

States.

WITHHOLDING OF ASSISTANCE TO COUNTRIES SUPPORTING NUCLEAR

PLANT IN CUBA

SEC. 563. (a) WITHHOLDING.—The President shall withhold from

assistance made available with funds appropriated or made available pursuant to this Act an amount equal to the sum of assistance

and credits, if any, provided on or after the date of the enactment

of this Act by that country, or any entity in that country, in

support of the completion of the Cuban nuclear facility at Juragua,

near Cienfuegos, Cuba.

(b) EXCEPTIONS.—The requirement of subsection (a) to withhold

assistance shall not apply with respect to—

(1) assistance to meet urgent humanitarian needs including

disaster and refugee relief;

(2) democratic political reform and rule of law activities;

(3) the creation of private sector and nongovernmental

organizations that are independent of government control;
H. R. 1868—43

(4) the development of a free market economic system; and

(5) assistance for the purposes described in the Cooperative Threat Reduction Act of 1993 (title XII of Public Law 103–

160).

LIMITATION ON FUNDS FOR HAITI

SEC. 564. Effective March 1, 1996, none of the funds appropriated in this Act may be made available to the Government

of Haiti when it is made known to the President that such Government is controlled by a regime holding power through means other

than the democratic elections scheduled for calendar year 1995

and held in substantial compliance with the requirements of the

1987 Constitution of Haiti.

PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS

SEC. 565. (a) SENSE OF CONGRESS.—It is the sense of the

Congress that, to the greatest extent practicable, all equipment

and products purchased with funds made available in this Act

should be American-made.

(b) NOTICE REQUIREMENT.—In providing financial assistance

to, or entering into any contract with, any entity using funds

made available in this Act, the head of each Federal agency, to

the greatest extent practicable, shall provide to such entity a notice

describing the statement made in subsection (a) by the Congress.

LIMITATION ON ASSISTANCE TO TURKEY

SEC. 566. Not more than $33,500,000 of the funds appropriated

in this Act under the heading ‘‘Economic Support Fund’’ may be

made available to the Government of Turkey.

LIMITATION OF FUNDS FOR NORTH AMERICAN DEVELOPMENT BANK

SEC. 566A. None of the funds appropriated in this Act under

the heading ‘‘North American Development Bank’’ and made available for the Community Adjustment and Investment Program shall

be used for purposes other than those set out in the binational

agreement establishing the Bank.

LIMITATION ON FUNDS FOR BURMA

SEC. 567. None of the funds made available in this Act may

be used for International Narcotics Control or Crop Substitution

Assistance for the Government of Burma.

ASIAN DEVELOPMENT BANK

SEC. 568. The Secretary of the Treasury may, to fulfill commitments of the United States, subscribe to and make payments for

shares of the Asian Development Bank in connection with the

fourth general capital increase of the Bank. The amount authorized

to be appropriated for paid-in shares of the Bank is limited to

$66,614,647; the amount authorized to be appropriated for payment

for callable shares of the Bank is limited to $3,264,178,021. The

amount to be paid in respect of each subscription is authorized

to be appropriated without fiscal year limitation. Any subscription

by the United States to the capital stock of the Bank shall be
H. R. 1868—44

effective only to such extent or in such amounts as are provided

in advance in appropriations Acts.

INTERNATIONAL DEVELOPMENT ASSOCIATION

SEC. 569. In order to pay for the United States contribution

to the tenth replenishment of the resources of the International

Development Association authorized in section 526 of Public Law

103–87, there is authorized to be appropriated, without fiscal year

limitation, $700,000,000 for payment by the Secretary of the Treasury.

SPECIAL DEBT RELIEF FOR THE POOREST

SEC. 570. (a) AUTHORITY TO REDUCE DEBT.—The President

may reduce amounts owed to the United States (or any agency

of the United States) by an eligible country as a result of—

(1) guarantees issued under sections 221 and 222 of the

Foreign Assistance Act of 1961; or

(2) credits extended or guarantees issued under the Arms

Export Control Act.

(b) LIMITATIONS.—

(1) The authority provided by subsection (a) may be exercised only to implement multilateral official debt relief and

referendum agreements, commonly referred to as ‘‘Paris Club

Agreed Minutes’’.

(2) The authority provided by subsection (a) may be exercised only in such amounts or to such extent as is provided

in advance by appropriations Acts. (3) The authority provided by subsection (a) may be exercised only with respect to countries with heavy debt burdens

that are eligible to borrow from the International Development

Association, but not from the International Bank for

Reconstruction and Development, commonly referred to as

‘‘IDA-only’’ countries.

(c) CONDITIONS.—The authority provided by subsection (a) may

be exercised only with respect to a country whose government— (1) does not have an excessive level of military expenditures;

(2) has not repeatedly provided support for acts of international terrorism;

(3) is not failing to cooperate on international narcotics

control matters;

(4) (including its military or other security forces) does

not engage in a consistent pattern of gross violations of internationally recognized human rights; and

(5) is not ineligible for assistance because of the application

of section 527 of the Foreign Relations Authorization Act, fiscal

years 1994 and 1995.

(d) AVAILABILITY OF FUNDS.—The authority provided by subsection (a) may be used only with regard to funds appropriated

by this Act under the heading ‘‘Debt Restructuring’’.

(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduction of debt

pursuant to subsection (a) shall not be considered assistance for

purposes of any provision of law limiting assistance to a country.

The authority provided by subsection (a) may be exercised notwithstanding section 620(r) of the Foreign Assistance Act of 1961.
H. R. 1868—45

AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES

SEC. 571. (a) LOANS ELIGIBLE FOR SALE, REDUCTION, OR CANCELLATION.—

(1) AUTHORITY TO SELL, REDUCE, OR CANCEL CERTAIN

LOANS.—Notwithstanding any other provision of law, the President may, in accordance with this section, sell to any eligible

purchaser any concessional loan or portion thereof made before

January 1, 1995, pursuant to the Foreign Assistance Act of

1961, to the government of any eligible country as defined

in section 702(6) of that Act or on receipt of payment from

an eligible purchaser, reduce or cancel such loan or portion

thereof, only for the purpose of facilitating—

(A) debt-for-equity swaps, debt-for-development swaps,

or debt-for-nature swaps; or

(B) a debt buyback by an eligible country of its own

qualified debt, only if the eligible country uses an additional

amount of the local currency of the eligible country, equal

to not less than 40 percent of the price paid or such

debt by such eligible country, or the difference between

the price paid for such debt and the face value of such

debt, to support activities that link conservation and

sustainable use of natural resources with local community

development, and child survival and other child development, in a manner consistent with section 707 through

710 of the Foreign Assistance Act of 1961, if the sale,

reduction, or cancellation would not contravene any term

or condition of any prior agreement relating to such loan.

(2) TERMS AND CONDITIONS.—Notwithstanding any other

provision of law, the President shall, in accordance with this

section, establish the terms and conditions under which loans

may be sold, reduced, or canceled pursuant to this section. (3) ADMINISTRATION.—The Facility, as defined in section 702(8) of the Foreign Assistance Act of 1961, shall notify the

administrator of the agency primarily responsible for administering part I of the Foreign Assistance Act of 1961 of purchasers that the President has determined to be eligible, and

shall direct such agency to carry out the sale, reduction, or

cancellation of a loan pursuant to this section. Such agency

shall make an adjustment in its accounts to reflect the sale,

reduction, or cancellation.

(4) LIMITATION.—The authorities of this subsection shall

be available only to the extent that appropriations for the

cost of the modification, as defined in section 502 of the

Congressional Budget Act of 1974, are made in advance.

(b) DEPOSIT OF PROCEEDS.—The proceeds from the sale, reduction, or cancellation of any loan sold, reduced, or canceled pursuant

to this section shall be deposited in the United States Government

account or accounts established for the repayment of such loan.

(c) ELIGIBLE PURCHASERS.—A loan may be sold pursuant to

subsection (a)(1)(A) only to a purchaser who presents plans satisfactory to the President for using the loan for the purpose of engaging

in debt-for-equity swaps, debt-for-development swaps, or debt-fornature swaps.

(d) DEBTOR CONSULTATIONS.—Before the sale to any eligible

purchaser, or any reduction or cancellation pursuant to this section,

of any loan made to an eligible country, the President shall consult
H. R. 1868—46

with the country concerning the amount of loans to be sold, reduced,

or canceled and their uses for debt-for-equity swaps, debt-for-development swaps, or debt-for-nature swaps.

(e) AVAILABILITY OF FUNDS.—The authority provided by subsection (a) may be used only with regard to funds appropriated

by this Act under the heading ‘‘Debt Restructuring’’.

DRAWDOWN AUTHORITY FOR JORDAN

SEC. 572. During fiscal year 1996, the President may direct,

for the purposes of part II of the Foreign Assistance Act of 1961,

the drawdown for Jordan of defense articles from the stocks of

the Department of Defense, defense services of the Department

of Defense, and military education and training of up to an aggregate of $100,000,000: Provided, That—

(a) within six months of the last drawdown under subsection (a), the President shall submit a report to the Committee

on Appropriations identifying the articles, services, training

or education provided;

(b) section 506(c) of the Foreign Assistance Act of 1961

shall apply to the drawdown authority in this section; and

(c) section 632(d) of the Foreign Assistance Act of 1961

shall not apply with respect to drawdowns under this section.

LIBERIA

SEC. 573. (a) Public Law 102–270 is amended—

(1) in subsection (b) by striking ‘‘Notwithstanding section 620(q) of the Foreign Assistance Act of 1961 or any other

similar provision, the’’ and inserting ‘‘The’’; and (2) in subsection (b)(2) by striking ‘‘to implement the

Yamoussoukro peace accord’’.

(b) Funds appropriated by this Act may be made available for assistance for Liberia notwithstanding section 620(q) of the

Foreign Assistance Act of 1961 and section 512 of this Act.

ANNUAL REPORT ON ECONOMIC AND SOCIAL GROWTH

SEC. 574. (a) REPORTING REQUIREMENT.—The President shall

submit to the appropriate congressional committees an annual

report providing a concise overview of the prospects for economic

and social growth on a broad, equitable, and sustainable basis

in the countries receiving economic assistance under title II of

this Act. For each country, the report shall discuss the laws, policies

and practices of that country that most contribute to or detract

from the achievement of this kind of growth. The report should

address relevant macroeconomic, microeconomic, social, legal,

environmental, and political factors and include criteria regarding

wage and price controls, State ownership of production and distribution, State control of financial institutions, trade and foreign investment, capital and profit repatriation, tax and private property

protections and a country’s commitment to stimulate education,

health and human development.

(b) COUNTRIES.—The countries referred to in subsection (a)

are countries—

(1) for which in excess of $5,000,000 has been obligated

during the previous fiscal year for assistance under sections

103 through 106, chapters 10 and 11 of part I, and chapter
H. R. 1868—47

4 of part II of the Foreign Assistance of 1961, and under

the Support for East European Democracy Act of 1989; or

(2) for which in excess of $1,000,000 has been obligated

during the previous fiscal year by the Overseas Private Investment Corporation.

(c) CONSULTATION.—The Secretary of State shall submit the

report required by subsection (a) in consultation with the Secretary

of the Treasury, the Administrator of the Agency for International

Development, and the President of the Overseas Private Investment

Corporation. The report shall be submitted with the annual congressional presentation for appropriations.

SEC. 575. To the maximum extent possible, the funds provided

by this Act shall be used to provide surveying and mapping related

services through contracts entered into through competitive bidding

to qualified United States contractors.

REPORTS REGARDING HONG KONG

SEC. 576. (a) Section 301 of the United States-Hong Kong

Policy Act of 1992 (22 U.S.C. 5731) is amended in the text above

paragraph (1) by inserting ‘‘March 31, 1996,’’ after ‘‘March 31,

1995,’’.

(b) In light of the deficiencies in reports submitted to the

Congress pursuant to section 301 of the United States-Hong Kong

Policy Act (22 U.S.C. 5731), the Congress directs that the additional

report required to be submitted under such section by subsection

(a) of this section include detailed information on the status of,

and other developments affecting, implementation of the Sino-British Joint Declaration on the Question of Hong Kong, including— (1) the Basic Law and its consistency with the Joint

Declaration;

(2) the openness and fairness of elections to the legislature;

(3) the openness and fairness of the election of the

chief executive and the executive’s accountability to the

legislature; (4) the treatment of political parties;

(5) the independence of the judiciary and its ability

to exercise the power of final judgment over Hong Kong

law; and

(6) the Bill of Rights.

SEC. 577. Notwithstanding any other provision of this Act,

$20,000,000 of the funds made available under the headings ‘‘Development Assistance’’ and/or ‘‘Economic Support Fund’’ may be transferred to, and merged with, the appropriations account entitled

‘‘International Narcotics Control’’ and may be available for the

same purposes for which funds in such account are available.

GUATEMALA

SEC. 578. (a) Funds provided in this Act may be made available

for the Guatemalan military or security forces, and the restrictions

on Guatemala under the headings ‘‘International Military Education

and Training’’ and ‘‘Foreign Military Financing Program’’ shall not

apply, only if the President determines and certifies to the Congress

that the Guatemalan military is cooperating with efforts to resolve

human rights abuses which elements of the Guatemalan military
H. R. 1868—48

or security forces are alleged to have committed, ordered or

attempted to thwart the investigation of.

(b) The prohibition contained in subsection (a) shall not apply

to funds made available to implement a cease-fire or peace agreement.

(c) Any funds made available pursuant to subsections (a) or

(b) shall be subject to the regular notification procedures of the

Committees on Appropriations.

(d) Any funds made available pursuant to subsections (a) and

(b) for international military education and training may only be

for expanded international military education and training.

EXTENSION OF TIED AID CREDIT PROGRAM

SEC. 579. (a) Section 10(c)(2) of the Export-Import Bank Act

of 1945 (12 U.S.C. 635i–3(c)(2) is amended by striking ‘‘1995’’ and

inserting ‘‘1997’’.

(b) Section 10(e) of the Export-Import Bank Act of 1945 (12

U.S.C. 635i–3(e)) is amended by striking ‘‘1993, 1994, and 1995’’

and inserting ‘‘1996 and 1997’’.

MORATORIUM ON USE OF ANTIPERSONNEL LANDMINES

SEC. 580. (a) UNITED STATES MORATORIUM.—For a period of

one year beginning three years after the date of enactment of

this Act, the United States shall not use antipersonnel landmines

except along internationally recognized national borders or in

demilitarized zones within a perimeter marked area that is monitored by military personnel and protected by adequate means to

ensure the exclusion of civilians.

(b) DEFINITION AND EXEMPTIONS.—For the purposes of this

section:

(1) ANTIPERSONNEL LANDMINE.—The term ‘‘antipersonnel

landmine’’ means any munition placed under, on, or near the

ground or other surface area, delivered by artillery, rocket,

mortar, or similar means, or dropped from an aircraft and

which is designed, constructed or adapted to be detonated or

exploded by the presence, proximity, or contact of a person. (2) EXEMPTIONS.—The term ‘‘antipersonnel landmine’’ does

not include command detonated Claymore munitions.

EXTENSION OF AU PAIR PROGRAMS

SEC. 581. Section 8 of the Eisenhower Exchange Fellowship

Act of 1990 is amended in the last sentence by striking ‘‘fiscal

year 1995’’ and inserting ‘‘fiscal year 1996’’.

SANCTIONS AGAINST COUNTRIES HARBORING WAR CRIMINALS

SEC. 582. (a) BILATERAL ASSISTANCE.—Funds appropriated by

this Act under the Foreign Assistance Act of 1961 or the Arms

Export Control Act may not be provided for any country described

in subsection (c).

(b) MULTILATERAL ASSISTANCE.—The Secretary of the Treasury

shall instruct the United States executive directors of the international financial institutions to work in opposition to, and vote

against, any extension by such institutions of financing or financial

or technical assistance to any country described in subsection (c).
H. R. 1868—49

(c) SANCTIONED COUNTRIES.—A country described in this subsection is a country the government of which knowingly grants

sanctuary to persons in its territory for the purpose of evading

prosecution, where such persons—

(1) have been indicted by the International Criminal Tribunal for the former Yugoslavia, the International Criminal Tribunal for Rwanda, or any other international tribunal with similar

standing under international law, or

(2) have been indicted for war crimes or crimes against

humanity committed during the period beginning March 23,

1933 and ending on May 8, 1945 under the direction of, or

in association with—

(A) the Nazi government of Germany;

(B) any government in any area occupied by the military forces of the Nazi government of Germany;

(C) any government which was established with the

assistance or cooperation of the Nazi government; or

(D) any government which was an ally of the Nazi

government of Germany.

LIMITATION ON ASSISTANCE FOR HAITI

SEC. 583. (a) LIMITATION.—None of the funds appropriated

or otherwise made available by this Act, may be provided to the

Government of Haiti until the President reports to Congress that—

(1) the Government is conducting thorough investigations

of extrajudicial and political killings; and

(2) the Government is cooperating with United States

authorities in the investigations of political and extrajudicial

killings.

(b) Nothing in this section shall be construed to restrict the

provision of humanitarian or electoral assistance.

(c) The President may waive the requirements of this section

if he determines and certifies to the appropriate committees of

Congress that it is in the national interest of the United States

or necessary to assure the safe and timely withdrawal of American

forces from Haiti.

LIMITATION ON FUNDS TO THE TERRITORY OF THE BOSNIAC-CROAT

FEDERATION.

SEC. 584. Funds appropriated by this Act for activities in the internationally-recognized borders of Bosnia and Herzegovina (other

than refugee and disaster assistance and assistance for restoration

of infrastructure, to include power grids, water supplies and natural

gas) may only be made available for activities in the territory

of the Bosniac-Croat Federation.

NATO PARTICIPATION

SEC. 585. REVISIONS TO PROGRAM TO FACILITATE TRANSITION

TO NATO MEMBERSHIP.—

(a) ELIGIBLE COUNTRIES.—Subsection (d) of section 203 of the

NATO Participation Act of 1994 (title II of Public Law 103–447;

22 U.S.C. 1928 note) is amended to read as follows:

‘‘(d) DESIGNATION OF ELIGIBLE COUNTRIES.—

‘‘(1) INITIAL PRESIDENTIAL REVIEW AND DESIGNATION.—

Within 60 days of the enactment of the NATO Participation
H. R. 1868—50

Act Amendments of 1995, the President should evaluate the

degree to which any country emerging from communist domination which has expressed its interest in joining NATO meets

the criteria set forth in paragraph (3), and may designate

one or more of these countries as eligible to receive assistance

under the program established under subsection (a). The President shall, at the time of designation of any country pursuant

to this paragraph, determine and report to the Committees

on International Relations and Appropriations of the House

of Representatives and the Committees on Foreign Relations

and Appropriations of the Senate with respect to each country

so designated that such country meets the criteria set forth

in paragraph (3).

‘‘(2) OTHER EUROPEAN COUNTRIES EMERGING FROM COMMUNIST DOMINATION.—In addition to the countries designated

pursuant to paragraph (1), the President may at any time

designate other European countries emerging from communist

domination as eligible to receive assistance under the program

established under subsection (a). The President shall, at the

time of designation of any country pursuant to this paragraph,

determine and report to the Committees on International Relations and Appropriations of the House of Representatives and

the Committees on Foreign Relations and Appropriations of

the Senate with respect to each country so designated that

such country meets the criteria set forth in paragraph (3).

‘‘(3) CRITERIA.—The criteria referred to in paragraphs (1)

and (2) are, with respect to each country, that the country—

‘‘(A) has made significant progress toward establishing— ‘‘(i) shared values and interests;

‘‘(ii) democratic governments;

‘‘(iii) free market economies;

‘‘(iv) civilian control of the military, of the police,

and of intelligence services, so that these organizations

do not pose a threat to democratic institutions,

neighboring countries, or the security of NATO or the

United States;

‘‘(v) adherence to the rule of law and to the values,

principles, and political commitments set forth in the

Helsinki Final Act and other declarations by the members of the Organization on Security and Cooperation

in Europe;

‘‘(vi) commitment to further the principles of NATO

and to contribute to the security of the North Atlantic

area;

‘‘(vii) commitment to protecting the rights of all

their citizens and respecting the territorial integrity

of their neighbors;

‘‘(viii) commitment and ability to accept the obligations, responsibilities, and costs of NATO membership;

and

‘‘(ix) commitment and ability to implement infrastructure development activities that will facilitate

participation in and support for NATO military activities;

‘‘(B) is likely, within five years of such determination,

to be in a position to further the principles of the North
H. R. 1868—51

Atlantic Treaty and to contribute to the security of the

North Atlantic area; and

‘‘(C) is not ineligible to receive assistance under section

552 of the Foreign Operations, Export Financing, and

Related Programs Appropriations Act, 1996, with respect

to transfers of equipment to a country the government

of which the Secretary of State has determined is a terrorist

government for purposes of section 40(d) of the Arms

Export Control Act.’’.

(2) CONFORMING AMENDMENTS.—

(A) Subsections (b) and (c) of section 203 of such Act are

amended by striking ‘‘countries described in such subsection’’

each of the two places it appears and inserting ‘‘countries

designated under subsection (d)’’.

(B) Subsection (e) of section 203 of such Act is amended

by inserting ‘‘(22 U.S.C. 2394–1), and shall include with such

notification a memorandum of justification with respect to the

proposed designation’’ before the period at the end.

(b) TYPES OF ASSISTANCE.—Section 203(c) of such Act is

amended by inserting after paragraph (4) the following new paragraphs:

‘‘(5) Assistance under chapter 4 of part II of the Foreign

Assistance Act of 1961 (relating to the Economic Support Fund).

‘‘(6) Funds appropriated under the ‘‘Nonproliferation and

Disarmament Fund’’ account.

‘‘(7) Assistance under chapter 6 of part II of the Foreign

Assistance Act of 1961 (relating to peacekeeping operations

and other programs).

‘‘(8) Notwithstanding any other provision of law, including

any restrictions in sections 516 and 519 of the Foreign Assistance Act of 1961, as amended, the President may direct the

crating, packing, handling, and transportation of excess defense

articles provided pursuant to paragraphs (1) and (2) of this

subsection without charge to the recipient of such articles.’’.

(c) EFFECT ON OTHER AUTHORITIES.—Section 203 of the NATO

Participation Act of 1994 (title II of Public Law 103–447, 22 U.S.C.

1928 note), is amended to add a new subsection (g) to read as

follows:

‘‘(g) EFFECT ON OTHER AUTHORITIES.—Nothing in this Act shall

affect the eligibility of countries to participate under other provisions of law in programs described in this Act.’’.

(d) ANNUAL REPORT.—Section 205 of the NATO Participation

Act of 1994 (title II of Public Law 103–447; 22 U.S.C. 1928 note)

is amended:

(1) by inserting ‘‘ANNUAL’’ in the section heading before

the first word;

(2) by inserting ‘‘annual’’ after ‘‘include in the’’ in the matter

preceding paragraph (1); and

(3) in paragraphs (1) and (2), by striking ‘‘and other’’ and

all that follows through the period at the end and in both

instances inserting in lieu thereof ‘‘and any other country designated by the President pursuant to section 203(d).’’.
H. R. 1868—52

TITLE VI—MIDDLE EAST PEACE FACILITATION ACT OF 1995

SHORT TITLE

SEC. 601. This title may be cited as the ‘‘Middle East Peace Facilitation Act of 1995’’.

FINDINGS

SEC. 602. The Congress finds that—

(1) the Palestine Liberation Organization (hereafter the

‘‘P.L.O.’’) has recognized the State of Israel’s right to exist

in peace and security, accepted United Nations Security Council

Resolutions 242 and 338, committed itself to the peace process

and peaceful coexistence with Israel, free from violence and

all other acts which endanger peace and stability, and assumed

responsibility over all P.L.O. elements and personnel in order

to assure their compliance, prevent violations, and discipline

violators;

(2) Israel has recognized the P.L.O. as the representative

of the Palestinian people;

(3) Israel and the P.L.O. signed a Declaration of Principles

on Interim Self-Government Arrangements (hereafter the ‘‘Declaration of Principles’’) on September 13, 1993 at the White

House;

(4) Israel and the P.L.O. signed an Agreement on the

Gaza Strip and the Jericho Area (hereafter the ‘‘Gaza-Jericho

Agreement’’) on May 4, 1994 which established a Palestinian

Authority for the Gaza and Jericho areas;

(5) Israel and the P.L.O. signed an Agreement on Preparatory Transfer of Powers and Responsibilities (hereafter

the ‘‘Early Empowerment Agreement’’) on August 29, 1994

which provided for the transfer to the Palestinian Authority

of certain powers and responsibilities in the West Bank outside

of the Jericho Area;

(6) under the terms of the Israeli-Palestinian Interim

Agreement on the West Bank and Gaza (hereafter the ‘‘Interim

Agreement) signed on September 28, 1995, the Declaration

of Principles, the Gaza-Jericho Agreement and the Early

Empowerment Agreement, the powers and responsibilities of

the Palestinian Authority are to be assumed by an elected

Palestinian Council with jurisdiction in the West Bank and

Gaza Strip in accordance with the Interim Agreement;

(7) permanent status negotiations relating to the West

Bank and Gaza Strip are scheduled to begin by May 1996;

(8) the Congress has, since the conclusion of the Declaration

of Principles and the P.L.O.’s renunciation of terrorism, provided authorities to the President to suspend certain statutory

restrictions relating to the P.L.O., subject to Presidential certifications that the P.L.O. has continued to abide by commitments

made in and in connection with or resulting from the good

faith implementation of, the Declaration of Principles;

(9) the P.L.O. commitments relevant to Presidential certifications have included commitments to renounce and condemn

terrorism, to submit to the Palestinian National Council for

former approval the necessary changes to those articles of the

Palestinian Covenant which call for Israel’s destruction, and

to prevent acts of terrorism and hostilities against Israel; and
H. R. 1868—53

(10) the United States is resolute in its determination

to ensure that in providing assistance to Palestinians living

under the jurisdiction of the Palestinian Authority or elsewhere,

the beneficiaries of such assistance shall be held to the same

standard of financial accountability and management control

as any other recipient of United States assistance.

SENSE OF CONGRESS

SEC. 603. It is the sense of the Congress that the P.L.O.

must do far more to demonstrate an irrevocable denunciation of

terrorism and ensure a peaceful settlement of the Middle East

dispute, and in particular it must—

(1) submit to the Palestinian National Council for formal

approval the necessary changes to those articles of the Palestinian National Covenant which call for Israel’s destruction;

(2) make greater efforts to pre-empt acts of terror, discipline

violators and contribute to stemming the violence that has

resulted in the deaths of over 140 Israeli and United States

citizens since the signing of the Declaration of Principles; (3) prohibit participation in its activities and in the Palestinian Authority and its successors by any groups or individuals which continue to promote and commit acts of terrorism;

(4) cease all anti-Israel rhetoric, which potentially undermines the peace process;

(5) confiscate all unlicensed weapons;

(6) transfer and cooperate in transfer proceedings relating

to any person accused by Israel to acts of terrorism; and (7) respect civil liberties, human rights and democratic

norms.

AUTHORITY TO SUSPEND CERTAIN PROVISIONS

SEC. 604. (a) IN GENERAL.—Subject to subsection (b), beginning

on the date of enactment of this Act and for eighteen months

thereafter, the President may suspend for a period of not more

than 6 months at a time any provision of law specified in subsection

(d). Any such suspension shall cease to be effective after 6 months,

or at such earlier date as the President may specify. (b) CONDITIONS.— (1) CONSULTATIONS.—Prior to each exercise of the authority provided in subsection (a) or certification pursuant to subsection

(c), the President shall consult with the relevant congressional

committees. The President may not exercise that authority

or make such certification until 30 days after a written policy

justification is submitted to the relevant congressional committees.

(2) PRESIDENTIAL CERTIFICATION.—The President may exercise the authority provided in subsection (a) only if the President certifies to the relevant congressional committees each

time he exercises such authority that—

(A) it is in the national interest of the United States

to exercise such authority;

(B) the P.L.O., the Palestinian Authority, and successor

entities are complying with all the commitments described

in paragraph (4); and

(C) funds provided pursuant to the exercise of this

authority and the authorities under section 583(a) of Public
H. R. 1868—54

Law 103–236 and section 3(a) of Public Law 103–125 have

been used for the purposes for which they were intended.

(3) REQUIREMENT FOR CONTINUING P.L.O. COMPLIANCE.—

(A) The President shall ensure that P.L.O. performance

is continuously monitored and if the President at any time

determines that the P.L.O. has not continued to comply

with all the commitments described in paragraph (4), he

shall so notify the relevant congressional committees and

any suspension under subsection (a) of a provision of law

specified in subsection (d) shall cease to be effective.

(B) Beginning six months after the date of enactment

of this Act, if the President on the basis of the continuous

monitoring of the P.L.O.’s performance determines that

the P.L.O. is not complying with the requirements

described in subsection (c), he shall so notify the relevant

congressional committees and no assistance shall be provided pursuant to the exercise by the President of the

authority provided by subsection (a) until such time as

the President makes the certification provided for in subsection (c).

(4) P.L.O. COMMITMENTS DESCRIBED.—The commitments

referred to in paragraphs (2)(B) and (3)(A) are the commitments

made by the P.L.O.—

(A) in its letter of September 9, 1993, to the Prime

Minister of Israel; in its letter of September 9, 1993, to

the Foreign Minister of Norway to—

(i) recognize the right of the State of Israel to

exist in peace and security; (ii) accept United Nations Security Council Resolutions 242 and 338;

(iii) renounce the use of terrorism and other acts

of violence;

(iv) assume responsibility over all P.L.O. elements

and personnel in order to assure their compliance,

prevent violations and discipline violators;

(v) call upon the Palestinian people in the West

Bank and Gaza Strip to take part in the steps leading

to the normalization of life, rejecting violence and

terrorism, and contributing to peace and stability; and (vi) submit to the Palestine National Council for

formal approval the necessary changes to the Palestinian National Covenant eliminating calls for Israel’s

destruction, and

(B) in, and resulting from, the good faith implementation of the Declaration of Principles, including good faith

implementation of subsequent agreements with Israel, with

particular attention to the objective of preventing terrorism,

as reflected in the provisions of the Interim Agreement

concerning—

(i) prevention of acts of terrorism and legal measures against terrorists, including the arrest and

prosecution of individuals suspected of perpetrating

acts of violence and terror;

(ii) abstention from and prevention of incitement,

including hostile propaganda;

(iii) operation of armed forces other than the Palestinian Police;
H. R. 1868—55

(iv) possession, manufacture, sale, acquisition or

importation of weapons;

(v) employment of police who have been convicted

of serious crimes or have been found to be actively

involved in terrorist activities subsequent to their

employment;

(vi) transfers to Israel of individuals suspected of,

charged with, or convicted of an offense that falls

within Israeli criminal jurisdiction;

(vii) cooperation with the government of Israel in

criminal matters, including cooperation in the conduct

of investigations; and

(viii) exercise of powers and responsibilities under

the agreement with due regard to internationally

accepted norms and principles of human rights and

the rule of law.

(5) POLICY JUSTIFICATION.—As part of the President’s written policy justification to be submitted to the relevant Congressional Committees pursuant to paragraph (1), the President

will report on—

(A) the manner in which the P.L.O. has complied with

the commitments specified in paragraph (4), including

responses to individual acts of terrorism and violence,

actions to discipline perpetrators of terror and violence,

and actions to preempt acts of terror and violence;

(B) the extent to which the P.L.O. has fulfilled the

requirements specified in subsection (c);

(C) actions that the P.L.O. has taken with regard to

the Arab League boycott of Israel; (D) the status and activities of the P.L.O. office in

the United States;

(E) all United States assistance which benefits, directly

or indirectly, the projects, programs, or activities of the

Palestinian Authority in Gaza, Jericho, or any other area

it may control, since September 13, 1993, including— (i) the obligation and disbursal of such assistance,

by project, activity, and date, as well as by prime

contractor and all subcontractors;

(ii) the organizations or individuals responsible for

the receipt and obligation of such assistance; (iii) the intended beneficiaries of such assistance;

and

(iv) the amount of international donor funds that

benefit the P.L.O. or the Palestinian Authority in Gaza,

Jericho, or any other area the P.L.O. or the Palestinian

Authority may control, and to which the United States

is a contributor; and

(F) statements by senior officials of the P.L.O., the

Palestinian Authority, and successor entities that question

the right of Israel to exist or urge armed conflict with

or terrorism against Israel or its citizens, including an

assessment of the degree to which such statements reflect

official policy of the P.L.O., the Palestinian Authority, or

successor entities.

(c) REQUIREMENT FOR CONTINUED PROVISION OF ASSISTANCE.—

Six months after the enactment of this Act, United States assistance

shall not be provided pursuant to the exercise by the President
H. R. 1868—56

of the authority provided by subsection (a), unless and until the

President determines and so certifies to the Congress that—

(1) if the Palestinian Council has been elected and assumed

its responsibilities, it has, within 2 months, effectively disavowed and thereby nullified the articles of the Palestine

National Covenant which call for Israel’s destruction, unless

the necessary changes to the Covenant have already been

approved by the Palestine National Council;

(2) the P.L.O., the Palestinian Authority, and successor

entities have exercised their authority resolutely to establish

the necessary enforcement institutions; including laws, police,

and a judicial system, for apprehending, transferring, prosecuting, convicting, and imprisoning terrorists;

(3) the P.L.O., has limited participation in the Palestinian

Authority and its successors to individuals and groups that

neither engage in nor practice terrorism or violence in the

implementation of their political goals;

(4) the P.L.O., the Palestinian Authority, and successor

entities have not provided any financial or material assistance

or training to any group, whether or not affiliated with the

P.L.O., to carry out actions inconsistent with the Declaration

of Principles, particularly acts of terrorism against Israel;

(5) the P.L.O., the Palestinian Authority, or successor entities have cooperated in good faith with Israeli authorities in—

(A) the preemption of acts of terrorism;

(B) the apprehension, trial, and punishment of individuals who have planned or committed terrorist acts subject

to the jurisdiction of the Palestinian Authority or any

successor entity; and (C) the apprehension of and transfer to Israeli authorities of individuals suspected of, charged with, or convicted

of, planning or committing terrorist acts subject to Israeli

jurisdiction in accordance with the specific provisions of

the Interim Agreement;

(6) the P.L.O., the Palestinian Authority, and successor

entities have exercised their authority resolutely to enact and

implement laws requiring the disarming of civilians not specifically licensed to possess or carry weapons; (7) the P.L.O., the Palestinian Authority, and successor

entities have not funded, either partially or wholly, or have

ceased funding, either partially or wholly, any office, or other

presence of the Palestinian Authority in Jerusalem unless

established by specific agreement between Israel and the

P.L.O., the Palestinian Authority, or successor entities; (8) the P.L.O., the Palestinian Authority, and successor

entities are cooperating fully with the Government of the

United States on the provision of information on United States

nationals known to have been held at any time by the P.L.O.

or factions thereof; and

(9) the P.L.O., the Palestinian Authority, and successor

entities have not, without the agreement of the Government

of Israel, taken any steps that will change the status of Jerusalem or the West Bank and Gaza Strip, pending the outcome

of the permanent status negotiations.

(d) PROVISIONS THAT MAY BE SUSPENDED.—The provisions that

may be suspended under the authority of subsection (a) are the

following:
H. R. 1868—57

(1) Section 307 of the Foreign Assistance Act of 1961 (22

U.S.C. 2227) as it applies with respect to the P.L.O. or entities

associated with it.

(2) Section 114 of the Department of State Authorization

Act, fiscal years 1984 and 1985 (22 U.S.C. 287e note) as it

applies with respect to the P.L.O. or entities associated with

it.

(3) Section 1003 of the Foreign Relations Authorization

Act, fiscal years 1988 and 1989 (22 U.S.C. 5202).

(4) Section 37 of the Bretton Woods Agreement Act (22

U.S.C. 286W) as it applies on the granting to the P.L.O. of

observer status or other official status at any meeting sponsored

by or associated with the International Monetary Fund. As

used in this paragraph, the term ‘‘other official status’’ does

not include membership in the International Monetary Fund.

(e) DEFINITIONS.—As used in this title:

(1) RELEVANT CONGRESSIONAL COMMITTEES.—The term ‘‘relevant congressional committees’’ mean—

(A) the Committee on International Relations, the

Committee on Banking and Financial Services, and the

Committee on Appropriations of the House of Representatives; and

(B) the Committee on Foreign Relations and the

Committee on Appropriations of the Senate.

(2) UNITED STATES ASSISTANCE.—The term ‘‘United States

assistance’’ means any form of grant, loan, loan guarantee,

credit, insurance, in kind assistance, or any other form of

assistance.

TRANSITION PROVISION

SEC. 605. (a) IN GENERAL.—Section 583(a) of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law

103–236) is amended by striking ‘‘November 1, 1995’’ and inserting

‘‘January 1, 1996’’.

(b) CONSULTATION.—For purposes of any exercise of the authority provided in section 583(a) of the Foreign Relations Authorization

Act, Fiscal Years 1994 and 1995 (Public Law 103–236) prior to

November 15, 1995, the written policy justification dated June

1, 1995, and submitted to the Congress in accordance with section

583(b)(1) of such Act, and the consultations associated with such

policy justification, shall be deemed to satisfy the requirements

of section 583(b)(1) of such Act.

REPORTING REQUIREMENT

SEC. 606. Section 804(b) of the PLO Commitments Compliance

Act of 1989 (title VIII of Public Law 101–246) is amended—

(1) in the matter preceding paragraph (1), by striking ‘‘section (3)(b)(1) of the Middle East Peace Facilitation Act of 1994’’

and inserting ‘‘section 604(b)(1) of the Middle East Peace Facilitation Act of 1995’’; and

(2) in paragraph (1), by striking ‘‘section (4)(a) of the Middle

East Peace Facilitation Act of 1994 (Oslo commitments)’’ and

inserting ‘‘section 604(b)(4) of the Middle East Peace Facilitation Act of 1995’’.
H. R. 1868—58

This Act may be cited as the ‘‘Foreign Operations, Export

Financing, and Related Programs Appropriations Act, 1996’’.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.