I

103D CONGRESS

2D SESSION H. R. 3765

To repeal the Foreign Assistance Act of 1961 and provide a policy framework

and authorities for programs to promote the prosperity and security

of the United States by supporting bilateral, multilateral, and peopleto-people partnerships for the advancement of market economies and

democracy.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 2, 1994

Mr. HAMILTION (for himself and Mr. GILMAN) (both by request) introduced

the following bill; which was referred to the Committee on Foreign Affairs

A BILL

To repeal the Foreign Assistance Act of 1961 and provide

a policy framework and authorities for programs to promote the prosperity and security of the United States

by supporting bilateral, multilateral, and people-to-people

partnerships for the advancement of market economies

and democracy.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Peace, Prosperity, and

5 Democracy Act of 1994’’.
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1 SEC. 2. TABLE OF CONTENTS.

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

Sec. 3. Statement of Policy.

TITLE I—SUSTAINABLE DEVELOPMENT

CHAPTER 1—SUSTAINABLE DEVELOPMENT AUTHORITIES

Sec. 1101. Statement of policy.

Sec. 1102. Policies concerning sustainable development programs.

Sec. 1103. Voluntary cooperation in development.

Sec. 1104. Microenterprise and other credit programs.

Sec. 1105. Availability of funds.

CHAPTER 2—DEVELOPMENT FUND FOR AFRICA

Sec. 1201. Sustainable development programs for sub-Saharan Africa.

CHAPTER 3—ROLE OF RELATED PROGRAMS

Sec. 1301. Statement of policy regarding role of international financial institutions.

Sec. 1302. Statement of policy regarding role of Peace Corps.

Sec. 1303. Statement of policy regarding role of African Development and

Inter-American Foundations.

Sec. 1304. Statement of policy regarding role of Public Law 480 nonemergency

title II and title III programs.

TITLE II—BUILDING DEMOCRACY

Sec. 2001. Findings and statement of policy.

CHAPTER 1—PROMOTING DEMOCRACY

Subchapter A—Countries in Transition

Sec. 2101. Authority.

Sec. 2102. Objectives and types of assistance.

Sec. 2103. Availability of funds; authorities.

Subchapter B—Independent States of the Former Soviet Union

Sec. 2201. Statement of policy.

Sec. 2202. Availability of funds.

Subchapter C—Central and Eastern Europe

Sec. 2301. Statement of policy.

Sec. 2302. Availability of funds.

CHAPTER 2—INFORMATION AND EXCHANGE

Sec. 2401. Policy.

TITLE III—PROMOTING PEACE

Sec. 3001. Statement of policy.
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CHAPTER 1—PEACEKEEPING AND RELATED PROGRAMS

Sec. 3101. Statement of policy.

Sec. 3102. General authority.

Sec. 3103. Drawdown authorities.

CHAPTER 2—NONPROLIFERATION AND DISARMAMENT FUND

Sec. 3201. Statement of policy.

Sec. 3202. Provision of assistance.

Sec. 3203. Availability of funds.

Sec. 3204. Drawdown authorities.

CHAPTER 3—REGIONAL PEACE, SECURITY AND DEFENSE COOPERATION

Sec. 3301. Statement of policy.

Sec. 3302. Authority and purposes.

Sec. 3303. Considerations in providing defense cooperation assistance.

Sec. 3304. Availability of funds.

CHAPTER 4—INTERNATIONAL NARCOTICS TRAFFICKING, TERRORISM AND

CRIME PREVENTION

Sec. 3401. Statement of policy.

Sec. 3402. Authorities.

Sec. 3403. Provisions related to anti-narcotics programs.

Sec. 3404. Provisions related to law enforcement training.

Sec. 3405. Waiver of certain restrictions on assistance.

Sec. 3406. Availability of funds.

TITLE IV—PROVIDING HUMANITARIAN ASSISTANCE

Sec. 4001. Statement of policy.

CHAPTER 1—REFUGEE ASSISTANCE

Sec. 4101. Statement of policy and purposes.

Sec. 4102. Availability of funds.

CHAPTER 2—DISASTER ASSISTANCE

Sec. 4201. Policy.

Sec. 4202. Authority to provide assistance.

Sec. 4203. Availability of funds.

CHAPTER 3—EMERGENCY FOOD ASSISTANCE

Sec. 4301. Statement of policy regarding emergency food assistance under Public Law 480, title II.

TITLE V—PROMOTING GROWTH THROUGH TRADE AND

INVESTMENT

Sec. 5001. Statement of policy.

CHAPTER 1—OVERSEAS PRIVATE INVESTMENT CORPORATION

Sec. 5101. Purpose and policy.

Sec. 5102. Investment insurance, financing, and other programs.

Sec. 5103. Enhancing private political risk insurance industry.
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Sec. 5104. Issuing authority and reserves.

Sec. 5105. Guidelines and requirements for OPIC support.

CHAPTER 2—TRADE AND DEVELOPMENT AGENCY

Sec. 5201. Purposes.

Sec. 5202. Authority to provide assistance.

Sec. 5203. Availability of funds.

CHAPTER 3—ROLE OF RELATED PROGRAMS

Sec. 5301. Statement of policy regarding role of Public Law 480 title I programs.

Sec. 5302. Statement of policy regarding role of export-import bank.

TITLE VI—ADVANCING DIPLOMACY

Sec. 6001. Statement of policy.

TITLE VII—SPECIAL AUTHORITIES, RESTRICTIONS ON

ASSISTANCE, AND REPORTS

CHAPTER 1—SPECIAL AUTHORITIES

Sec. 7101. Authority to transfer between accounts.

Sec. 7102. Special waiver authority.

Sec. 7103. Unanticipated contingencies.

Sec. 7104. Assistance for law enforcement agencies.

Sec. 7105. Termination expenses.

Sec. 7106. Exemption of assistance through nongovernmental organizations

from restrictions.

Sec. 7107. Exemption of training activities from prohibitions.

Sec. 7108. Nonapplicability to defense assistance of certain neutrality act provisions.

Sec. 7109. Exemption from prohibitions for assistance to address certain special needs.

Sec. 7110. Authority to conduct reimbursable programs.

Sec. 7111. Drawdown authority.

Sec. 7112. Interest accruing to nongovernmental organizations.

Sec. 7113. Development education.

Sec. 7114. Strengthening the capacity of nongovernmental organizations, including research and educational institutions.

Sec. 7115. Violations of international humanitarian law.

Sec. 7116. Laws relating to contracts and government expenditures.

Sec. 7117. Transportation charges incurred by the Red Cross and nongovernmental organizations.

CHAPTER 2—RESTRICTIONS ON ASSISTANCE

Sec. 7201. Ineligible countries.

Sec. 7202. Impact of foreign assistance programs on jobs in the United States.

Sec. 7203. Family planning activities.

Sec. 7204. Competition with United States exports.

Sec. 7205. Nuclear nonproliferation.

Sec. 7206. Major illicit drug producing and drug transit countries.

Sec. 7207. Assistance for elections.

Sec. 7208. Assignment of personnel.

Sec. 7209. Assistance limited to economic programs.
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Sec. 7210. Impact of sustainable development assistance on environment and

natural resources.

CHAPTER 3—REPORTS AND NOTIFICATIONS TO CONGRESS

Sec. 7301. Congressional presentation documents.

Sec. 7302. Human rights policy and reports.

Sec. 7303. International narcotics control report.

Sec. 7304. Annual allocation report.

Sec. 7305. Notification of program changes.

Sec. 7306. Evaluation and monitoring of program performance.

TITLE VIII—GENERAL PROVISIONS

CHAPTER 1—EXERCISE AND COORDINATION OF FUNCTIONS

Sec. 8101. Delegations by the President.

Sec. 8102. Role of the Secretary of State.

Sec. 8103. The Secretary of Defense.

Sec. 8104. United States Agency for International Development.

Sec. 8105. The Director of the Arms Control and Disarmament Agency.

Sec. 8106. Authority to establish offices abroad.

Sec. 8107. Presidential findings and determinations.

CHAPTER 2—ADMINISTRATIVE AUTHORITIES

Subchapter A—General Authorities

Sec. 8201. Allocation of funds and reimbursement among agencies.

Sec. 8202. General authorities.

Sec. 8203. Authorized administrative uses of funds.

Subchapter B—Department of Defense Administrative Authorities

Sec. 8211. Administrative expenses.

Sec. 8212. End use and retransfer assurances.

Sec. 8213. Approval of third country transfers.

Sec. 8214. Exchange training.

CHAPTER 3—SPECIAL REQUIREMENTS AND AUTHORITIES RELATING TO

APPROPRIATIONS AND LOCAL CURRENCIES

Subchapter A—Provisions Relating to Appropriations

Sec. 8301. Requirement for authorization of appropriations.

Sec. 8302. Authority for extended period of availability of apropriations.

Sec. 8303. Reduction in earmarks.

Sec. 8304. Obligation upon apportionment.

Subchapter B—Local Currencies

Sec. 8311. Use of certain foreign currencies.

Sec. 8312. Interest on United States owned foreign currency proceeds.

CHAPTER 4—PROCUREMENT AND DISPOSITION OF ARTICLES

Sec. 8401. Use of private enterprise.

Sec. 8402. Procurement standards and procedures.

Sec. 8403. Shipping on United States vessels.
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Sec. 8404. Excess and other available property.

Sec. 8405. Grant transfers of excess defense articles.

Sec. 8406. Stockpiling of defense articles for foreign countries.

Sec. 8407. Location of stockpiles.

Sec. 8408. Additions to war reserve stocks.

Sec. 8409. Retention and use of certain items and funds.

CHAPTER 5—PERSONNEL AND ADMINISTRATIVE EXPENSES

Subchapter A—General

Sec. 8501. Statutory officers in the United States agency for international development.

Sec. 8502. Employment of personnel.

Sec. 8503. Experts, consultants, and retired officers.

Sec. 8504. Detail of personnel to foreign governments and international organizations.

Sec. 8505. Head of offices abroad.

Sec. 8506. Chairman of OECD development assistance committee.

Sec. 8507. Assignment of DOD personnel to civil offices.

Sec. 8508. Discrimination against United States personnel providing assistance.

Sec. 8509. Availability of funds for operating expenses generally.

Sec. 8510. Availability of funds for operating expenses of the Inspector General.

Sec. 8511. Availability of funds.

Subchapter B—Overseas Management of Assistanceand Sales Programs

Administered Through the Department of Defense

Sec. 8521. Authorized functions.

Sec. 8522. Costs.

Sec. 8523. Role of chief of mission.

Subchapter C—Administrative Provisions for the Trade and Development

Agency

Sec. 8531. Director and personnel.

Sec. 8532. Audits.

Sec. 8533. Annual report.

Subchapter D—Administrative Provisions for the Overseas Private Investment

Corporation

Sec. 8541. Stock of the corporation.

Sec. 8542. Organization and management.

Sec. 8543. Income and revenues.

Sec. 8544. General provisions relating to insurance and financing program.

Sec. 8545. General provisions and powers.

Sec. 8546. Annual report; maintenance of information.

Sec. 8547. Definitions.

Subchapter E—Definitions and Miscellaneous Provisions

Sec. 8551. Definitions.

Sec. 8552. Activities under other laws not affected.

TITLE IX—TECHNICAL AND CONFORMING PROVISIONS
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Sec. 9101. Effective date.

Sec. 9102. Savings provisions.

Sec. 9103. Miscellaneous provisions.

Sec. 9104. Conforming and other amendments.

Sec. 9105. Transition rules for military assistance.

Sec. 9106. Repeal of obsolete provisions.

1 SEC. 3. STATEMENT OF POLICY.

2 STATEMENT OF POLICY.—

3 (1) The people of the United States are em4 barking on a new era of domestic renewal that will

5 draw strength through expanding cooperation

6 abroad to advance United States economic and polit7 ical interests and to meet the challenges of a new

8 century.

9 (2) The interests of the United States are best

10 served by a community of nations that respects indi11 vidual human rights and democracy, resolves con12 flicts peacefully, engages in free and open trade,

13 uses the world’s limited natural resources in a sus14 tainable manner, and in which fundamental human

15 needs are met.

16 (3) Sustainable development is in the long-term

17 interest of the United States because without such

18 development, economic, political and security prob19 lems will multiply and generate future costs and

20 burdens; and because overpopulation and environ21 mental destruction threaten to undercut the best ef22 forts of nations to build peace and prosperity.
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1 (4) Strengthening democracy and human rights

2 advances United States interests: democracies are

3 conducive to free markets; they are more reliable

4 partners, more receptive to cooperation in environ5 mental protection and other global problems, and

6 less prone to wage war on each other or sponsor ter7 rorism. Strengthening democracy is especially criti8 cal to achieving what must remain an overriding

9 goal of the United States: helping to create a world

10 in which respect for human rights and fundamental

11 freedoms can flourish.

12 (5) In this new era of more diffuse challenges

13 to the security of the United States, the United

14 States recognizes the need to maintain and restore

15 peace through arms control, nonproliferation, re16 gional peace processes, and collective defense efforts,

17 and for continued vigilance against a wide-range of

18 increasingly transnational security challenges, in19 cluding international narcotics trafficking, terrorism

20 and other international crime that affect the per21 sonal safety of the people of the United States.

22 (6) United States Government support for ef23 forts to alleviate suffering and help people help

24 themselves reflects the ideals of the people of the

25 United States who have a long and unequaled record
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1 of responding quickly and substantially to humani2 tarian crises caused by natural and manmade disas3 ters.

4 (7) An open and growing world trading system

5 will benefit United States workers through expand6 ing global markets and create a more prosperous

7 and secure world. Promotion of broad-based eco8 nomic growth in developing countries is an impor9 tant means for expanding the fastest growing mar10 kets for United States exports.

11 (8) Diplomacy effectively advances United

12 States security and prosperity, meets long-term glob13 al challenges, and builds cooperative arrangements

14 with allies and multilateral organizations.

15 (9) Foreign assistance programs are in the na16 tional interest of the United States, and to meet the

17 diverse challenges of a new century, the United

18 States must command a full range of creative for19 eign policy tools to shape a comprehensive, long20 term approach to promoting the United States na21 tional interests reflected in the objectives of this Act:

22 Promoting Sustainable Development, Building De23 mocracy, Promoting Peace, Providing Humanitarian

24 Assistance, Promoting Growth Through Trade and

25 Investment, and Advancing Diplomacy.
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1 TITLE I—SUSTAINABLE DEVELOPMENT

2 CHAPTER 1—SUSTAINABLE DEVELOPMENT

3 AUTHORITIES

4 SEC. 1101. STATEMENT OF POLICY.

5 STATEMENT OF POLICY.—

6 (1) United States prosperity and security in the

7 Twenty-first Century will depend on the successful

8 pursuit of global sustainable development based on

9 an abiding commitment to democratic, free-market

10 principles.

11 (2) The transnational threats of persistent pov12 erty, global environmental degradation and rapid

13 population growth threaten to undercut the best ef14 forts of the world community to ensure a more pros15 perous and peaceful future. Addressing these threats

16 will require, among other things, an appropriate mix

17 of people-to-people, bilateral and multilateral assist18 ance to complement local action.

19 (3) The people of the United States have long

20 demonstrated a moral commitment to help those in

21 need and to provide assistance that reflects the tra22 ditional humanitarian ideals of the people of the

23 United States.

24 (4) The promotion of long-term, equitable, and

25 environmentally sustainable development can help to
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1 prevent humanitarian crises and to reduce the vul2 nerability of people, particularly children, to natural

3 and manmade disasters, which are costly in terms of

4 both human life and financial resources.

5 (5) United States support for people-to-people,

6 bilateral and multilateral sustainable development

7 programs must, therefore, be targeted on broad8 based, economic growth that reduces hunger and

9 poverty, protects the environment, enhances human

10 capabilities, upholds democratic values, and improves

11 the quality of life for current generations while pre12 serving that opportunity for future generations

13 through, among other things, helping the poor ma14 jority of women, men, and children in developing

15 countries participate in the development process.

16 (6) Sustainable development efforts will be sig17 nificantly enhanced through the broad participation

18 and active engagement of the United States-based

19 private sector, including universities, labor unions,

20 and private voluntary organizations, and the people

21 of each nation as producers, workers, and citizens of

22 their communities, in shaping development policies

23 and in defining, implementing, and evaluating pro24 grams and projects.
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1 (7) The ultimate measure of success of pro2 grams under this title is to reach a point where im3 provements in the quality of life and the environ4 ment are such that assistance is no longer necessary

5 and can be replaced by new forms of diplomacy, co6 operation and commerce.

7 SEC. 1102. POLICIES CONCERNING SUSTAINABLE DEVELOP8 MENT PROGRAMS.

9 (a) PURPOSES OF SUSTAINABLE DEVELOPMENT

10 PROGRAMS.—The promotion of sustainable development is

11 in the long-term interests of the United States. Sustain12 able development signifies broad-based, economic growth

13 which protects the environment, enhances human capabili14 ties, upholds democratic values, and improves the quality

15 of life for current generations while preserving that oppor16 tunity for future generations. The objectives of sustainable

17 development are pursued by supporting the self-help ef18 forts of people in developing countries to implement sound

19 policies that increase self-reliance, equity, and productive

20 capacity, to invest in their people, and build effective and

21 accountable indigenous political, economic and social insti22 tutions.

23 (b) SUSTAINABLE DEVELOPMENT OBJECTIVES.—

24 The purposes described in subsection (a) can best be

25 achieved through a balanced, participatory and com-
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1 prehensive cooperation program targeted on the following

2 four inter-dependent objectives—

3 (1) ENCOURAGING BROAD-BASED ECONOMIC

4 GROWTH.—

5 (A) RATIONALE.—Broad-based economic

6 growth signifies equitable and inclusive eco7 nomic expansion in developing countries. Such

8 growth is in the economic, political, and strate9 gic interests of the United States because it

10 permits countries to progress toward economic

11 self-reliance, improve the living standards of

12 their citizens, reduce the incidence of poverty,

13 promote food security and nutritional well14 being, slow population growth, and increase op15 portunities for mutually beneficial international

16 trade and investment. Broadly-based economic

17 progress also improves the prospects for the

18 spread of democracy and political pluralism.

19 Economic stagnation or narrowly based-eco20 nomic growth may fuel political instability and

21 threaten international security and cooperation.

22 (B) OBJECTIVE.—Broadly-based, sustain23 able growth requires, in addition to sound eco24 nomic policies:
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1 (i) investments in people, particularly

2 poor people, in the form of health, nutri3 tion, education, shelter and other critical

4 social services;

5 (ii) a broader role for and access to

6 markets for both women and men through

7 improved policies that protect and advance

8 economic rights for all citizens without re9 gard to gender, race, religion, language or

10 social status, increase self-reliance in meet11 ing basic needs, and raise real incomes for

12 poor people;

13 (iii) stronger and more accountable

14 public and private institutions at the local

15 and national level, and sound public invest16 ments;

17 (iv) enhanced food security, including

18 improved access to safe food and adequate

19 nutrition through sustainable improve20 ments in agriculture and post-harvest food

21 preservation;

22 (v) sound debt management, including

23 responsible relief as appropriate;

24 (vi) investments in people’s productive

25 capabilities, including measures to upgrade
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1 people’s technical and managerial knowl2 edge and skills; and

3 (vii) measures to ensure that the poor

4 have access to productive resources, includ5 ing affordable and resource-conserving

6 technologies, technical as well as market7 related information, and credit, especially

8 for small farms, small and micro-enter9 prises, and the poorest self-employed sec10 tor, and otherwise, fully participate in the

11 benefits of growth in employment and in12 come.

13 (2) PROTECTING THE GLOBAL ENVIRON14 MENT.—

15 (A) RATIONALE.—The economic and social

16 well-being and the security of the United

17 States, indeed the health of our citizens, depend

18 critically on the global environment and phys19 ical resource base. Consumption patterns, sys20 tems of industrial and agricultural production,

21 demographic trends, and use of natural re22 sources directly affect the sustainability of long23 term development and growth, and of the eco24 system. Development that does not take ac25 count of its environmental consequences will not
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1 be economically sustainable in the long run. Im2 proved resource management is a critical ele3 ment of a balanced pattern of development.

4 Both developed and developing countries share

5 responsibility to present and future generations

6 for the rational and sustainable management of

7 natural resources and for environmental protec8 tion. Developing countries not only suffer from

9 the consequences of environmental degradation,

10 but also contribute to that degradation as they

11 struggle to meet the basic needs of their people.

12 Therefore, environmental sustainability cannot

13 be secured without reducing poverty, nor can

14 poverty be eliminated without sustainable man15 agement of the natural resource base.

16 (B) OBJECTIVE.—Sustainable development

17 programs authorized by this chapter should ad18 dress the root causes of environmental harm,

19 promote environmentally-sound patterns of

20 growth and support improved management of

21 natural resources and protection of the environ22 ment. These activities shall include efforts to

23 address urgent global environmental challenges,

24 including the loss of biological diversity and

25 global climate change, as well as efforts to ad-
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1 dress significant environmental problems within

2 countries and regions. Such efforts shall seek to

3 promote sound environmental policies and prac4 tices which simultaneously enhance long-term

5 economic growth.

6 (3) SUPPORTING DEMOCRATIC PARTICIPA7 TION.—

8 (A) RATIONALE.—It is in the national in9 terest of the United States and in keeping with

10 our democratic traditions to support democratic

11 aspirations and values, foster the spread of en12 during democratic institutions, and encourage

13 universal respect for civil and human rights.

14 The establishment of local governance, civil so15 ciety and democratic institutions, including

16 business associations and labor unions, is an es17 sential element of the ability of nations to sus18 tain development efforts.

19 (B) OBJECTIVE.—Sustainable development

20 programs must help to build and strengthen or21 ganizations and institutions that foster partici22 pation in economic and political decisionmaking

23 at the local and national levels. Such programs

24 shall help promote: respect for human rights

25 and the rule of law; an expanding role for non-
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1 governmental and citizens organizations and

2 their capacity to effectively participate in politi3 cal and economic decisionmaking and to imple4 ment development programs; means to enhance

5 citizen access to public information; the ability

6 of all citizens to choose freely their government

7 and to hold that government accountable for its

8 actions; efforts which advance legal, social, and

9 economic equality for women, workers, and mi10 norities; respect for the rights of women, work11 ers, and minorities; and principles of tolerance

12 among and within religious and ethnic groups.

13 (4) STABILIZING WORLD POPULATION

14 GROWTH.—

15 (A) RATIONALE.—Excessive population

16 growth rates, among other factors, aggravates

17 poor health, perpetuates poverty, and inhibits

18 saving and investment, particularly investments

19 in people in the form of basic health, child sur20 vival, and education services. Continued exces21 sive growth in world population rates will un22 dercut sustainable development efforts.

23 Unsustainable population growth is directly tied

24 to degradation of the natural resource base and

25 the environment and contributes to economic
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1 stagnation and political instability. The prob2 lems associated with excessive population

3 growth are interrelated with economic and so4 cial inequities, particularly the low status of

5 women, and patterns of resource consumption.

6 Excessive population growth impedes develop7 ment and retards progress on global issues of

8 direct concern to the United States.

9 (B) OBJECTIVE.—The primary objectives

10 are: to reduce population growth to rates that

11 are consistent with sustainable, broadly-based

12 development, to provide women and men with

13 the means to freely and responsibly choose the

14 number and spacing of their children, and to

15 contribute to improved reproductive health.

16 This calls for a focus on enhanced access to and

17 quality of voluntary family planning services

18 and reproductive health care. This also calls for

19 strong and sustained programs in child survival

20 and the prevention of HIV/AIDS. Improvement

21 of female education and raising the economic

22 and social status of women, carried out within

23 the context of encouraging broad-based eco24 nomic growth, are particularly important com-
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1 plementary activities that contribute to these

2 objectives.

3 (c) PRINCIPLES.—To achieve the objectives of this

4 section, sustainable development programs authorized by

5 this chapter shall be carried out in accordance with the

6 following principles—

7 (1) POPULAR PARTICIPATION.—

8 (A) IN GENERAL.—Sustainable develop9 ment depends for its success on the

10 empowerment of people to make political and

11 economic decisions. Participation, in the form of

12 active involvement of program participants in

13 the identification, design, implementation, and

14 evaluation of development programs is critical

15 to the success of those programs. Therefore, as16 sistance under this chapter should incorporate

17 the local-level perspectives of all participants,

18 especially the rural and urban poor and women,

19 in the identification, design, implementation,

20 and evaluation of projects, programs, and devel21 opment policies, as well as in the design of

22 country assistance strategies and overall strate23 gic objectives.

24 (B) ROLE OF WOMEN IN THE DEVELOP25 MENT PROCESS.—The expansion of women’s
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1 opportunities is essential to reduce poverty,

2 lower population growth and bring about effec3 tive and sustainable development. The active in4 volvement of women in economic, political, and

5 social activities is necessary to promote democ6 racy and to assure sustainable development.

7 Women, including local and indigenous women’s

8 groups, must be involved as agents as well as

9 beneficiaries of change in all aspects of the de10 velopment process. Women, therefore, should be

11 integrally involved in policies, programs, and

12 projects undertaken to achieve the objectives

13 and purposes of this section.

14 (C) NONGOVERNMENTAL ORGANIZA15 TIONS.—For development to be broad-based

16 and sustainable, it is imperative to consult with,

17 and fully engage in the policy and program

18 planning process, nongovernmental organiza19 tions representative of, and knowledgeable

20 about, local people and their interests. Non21 governmental organizations, including private

22 voluntary organizations, cooperatives and credit

23 unions, labor unions, women’s groups, and in24 digenous local organizations, should be fully uti25 lized in meeting the objectives and purposes of
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1 this section through, among other things, regu2 lar involvement in the formulation of develop3 ment strategies for countries and sectors.

4 (D) UTILIZATION OF UNITED STATES IN5 STITUTIONAL CAPABILITIES.—Programs under6 taken to achieve the sustainable development

7 objectives of this chapter should recognize and

8 take advantage of—

9 (i) United States capabilities in

10 science and technology;

11 (ii) access to education and training

12 in United States colleges, universities, and

13 technical training facilities; and

14 (iii) United States public sector exper15 tise. This may be encouraged through,

16 among other things, long-term collabora17 tion between public and private institutions

18 of science, technology, and education in the

19 United States and developing countries.

20 (2) MANAGING FOR RESULTS.—

21 (A) IN GENERAL.—Assistance cannot sub22 stitute for a developing country’s own efforts to

23 improve the lives of its people, nor can the

24 United States afford to provide assistance

25 which does not yield enduring results in terms
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1 of improving the lives of the poor, encourage a

2 stable and prosperous global order, and contrib3 ute to the interests of the people of the United

4 States.

5 (B) COUNTRY REQUIREMENTS.—Sustain6 able development programs under this chapter

7 shall be concentrated in countries that have a

8 demonstrated need for such programs, that will

9 make effective use of such programs, and that

10 have a commitment to achieving clear develop11 ment objectives. Indicators of such countries in12 clude the extent to which: there is a high inci13 dence of hunger and poverty, there is an ena14 bling environment in which government econom15 ics and sound policies are conducive to accom16 plishing the sustainable development objectives

17 contained in subsection (b) of this section, gov18 ernment decisionmaking is transparent, govern19 ment institutions are accountable to the public,

20 an independent and honest judiciary is main21 tained, local government bodies are democrat22 ically elected, and political parties, nongovern23 mental organizations and the media operate

24 without undue constraints.
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1 (C) MEASURING RESULTS.—The United

2 States assistance program under this chapter

3 will assess the commitment and progress of

4 countries in moving toward the sustainable de5 velopment objectives contained in subsection (b)

6 of this section and the contributions made to

7 this progress by assistance provided under this

8 chapter. The United States will establish open

9 and transparent systems to monitor these re10 sults, and will be prepared to shift scarce re11 sources from unproductive programs, sectors or

12 countries to those which have demonstrated the

13 commitment and ability to use them effectively.

14 (3) INTERNATIONAL COORDINATION.—The

15 United States shall seek wherever possible to

16 coordinate its sustainable development program

17 with other bilateral and multilateral donors, as

18 well as with the private sector, in order to maxi19 mize the effectiveness of resources allocated to

20 sustainable development.

21 SEC. 1103. VOLUNTARY COOPERATION IN DEVELOPMENT.

22 (a) STATEMENT OF POLICY.—

23 (1) The sustained participation of United

24 States private voluntary organizations, labor unions,

25 cooperatives, and credit unions that are engaged in
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1 activities that are relevant to the development needs

2 of developing countries serves as an important

3 means of improving the lives of the poor in those

4 countries and enhances the likelihood that the goals

5 of this title will be attained.

6 (2) The sustained participation of United

7 States and overseas cooperatives and credit unions

8 provides an opportunity for people in developing

9 countries to participate directly in democratic deci10 sionmaking for their economic and social benefit

11 through ownership and control of business enter12 prises and through the mobilization of local capital

13 and saving. These organizations should be utilized in

14 fostering democracy, free markets, self-help, and

15 community-based development.

16 (3) Similarly, sustained participation of United

17 States colleges and universities in the economic de18 velopment programs of the developing countries and

19 the building of indigenous university systems that

20 support the educational, research, and service needs

21 of their societies is vital to their achieving sustain22 able economic growth and open democratic political

23 systems and, at the same time, supports the inter24 nationalization of United States educational institu-
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1 tions by strengthening their faculty and the pro2 grams available to their students.

3 (4) Such sustained participation would be en4 hanced through provisions within the United States

5 Agency for International Development to provide

6 such organizations and institutions with the oppor7 tunity to participate in the planning, development,

8 implementation, and evaluation of programs that in9 volve those organizations and institutions.

10 (b) PARTNERSHIP RELATIONSHIP.—The President is

11 encouraged to establish a formal, effective, and continuing

12 partnership relationship with private voluntary organiza13 tions, cooperatives, and credit unions which have experi14 ence in working in developing countries, and with United

15 States colleges and universities, with the objective of en16 hancing attainment of the goals set forth in this title. Indi17 viduals who are from such organizations and institutions

18 and who have expertise and administrative experience in

19 programs relevant to the development needs of developing

20 countries should be consulted on a regular basis so as to

21 bring their expertise to bear on those objectives.

22 (c) AMERICAN SCHOOLS AND HOSPITALS.—The

23 President is authorized to use funds made available to

24 carry out the provisions of this Act for support of—
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1 (1) schools and libraries, outside the United

2 States, that are sponsored by United States citizens

3 and serve as study and demonstration centers for

4 ideas and practices of the United States, and

5 (2) hospital centers for medical education and

6 research, outside the United States, that are spon7 sored by United States citizens,

8 where such support is in furtherance of the objectives of

9 this title.

10 SEC. 1104. MICROENTERPRISE AND OTHER CREDIT PRO11 GRAMS.

12 Credit resources can be a cost-effective tool in foster13 ing sustainable development where borrowers and projects

14 are creditworthy and where the costs of such credit assist15 ance are capable of being reasonably estimated. Subject

16 to section 8202(i), the President is authorized to provide

17 assistance for credit programs in furtherance of the sus18 tainable objectives, as follows:

19 (1) MICRO- AND SMALL ENTERPRISE DEVELOP20 MENT.—To promote the full participation in a coun21 try’s economy by all members of society through in22 creased access to formal financial markets.

23 (2) SHELTER, URBAN DEVELOPMENT, AND EN24 VIRONMENTAL INFRASTRUCTURE.—To address

25 needs for shelter, urban services and facilities, and
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1 urban environmental management systems, including

2 water treatment and waste disposal systems.

3 (3) OTHER PROJECTS AND PROGRAMS.—To

4 carry out other purposes of this chapter that can be

5 met with credit resources.

6 SEC. 1105. AVAILABILITY OF FUNDS.

7 The President is authorized to carry out programs

8 in support of the sustainable development objectives of

9 this chapter. Funds shall be available to carry out the pro10 visions of this chapter as authorized and appropriated to

11 the President each fiscal year.

12 CHAPTER 2—DEVELOPMENT FUND FOR AFRICA

13 SEC. 1201. SUSTAINABLE DEVELOPMENT PROGRAMS FOR

14 SUB-SAHARAN AFRICA.

15 (a) STATEMENT OF POLICY.—

16 (1) Sub-Saharan Africa faces serious obstacles

17 to sustainable development, including high levels of

18 poverty, high levels of disease burden especially trop19 ical diseases and HIV/AIDS, environmental degrada20 tion, high population growth rates and, in some

21 countries, civil conflicts that threaten the welfare of

22 millions of people.

23 (2) Sub-Saharan Africa is also undergoing sig24 nificant but fragile economic, social, and political

25 change, including economic reforms and transition to
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1 democracies, which hold promise of progress in sus2 tainable development.

3 (3) Sub-Saharan Africa possesses numerous

4 species, as well as major forest reserves, which will

5 become increasingly threatened in the absence of

6 sustainable development.

7 (4) The challenges facing sub-Saharan Africa

8 require a steady, long-term approach to develop9 ment, and therefore the purpose of the Development

10 Fund for Africa shall continue to be to help the poor

11 majority of men and women in sub-Saharan Africa

12 to participate in a process of long-term development

13 through economic growth that is equitable,

14 participatory, environmentally sustainable and self15 reliant.

16 (5) Experience has shown that in order to be

17 effective and sustainable, assisted development

18 projects and programs must be based on local con19 sultation and involvement.

20 (6) By addressing the broad sustainable devel21 opment objectives of encouraging broad-based eco22 nomic growth, reducing excessive population growth

23 rates, preserving the environment, and strengthening

24 democratic governance and expanding popular par25 ticipation, programs for sub-Saharan Africa can di-
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•HR 3765 IH

1 rectly improve the lives of the poor majority of Afri2 cans.

3 (b) LOCAL PERSPECTIVES.—In carrying out sustain4 able development programs for sub-Saharan Africa, the

5 local-level perspectives of the rural and urban poor, includ6 ing women, in sub-Saharan Africa shall be taken into ac7 count during the planning process for project and program

8 assistance.

9 (c) AVAILABILITY OF FUNDS.—Funds appropriated

10 to carry out the provisions of chapter 1 for sustainable

11 development programs may be made available, in accord12 ance with the provisions of that chapter, to carry out such

13 programs for sub-Saharan Africa.

14 (d) RELATIONSHIP TO CERTAIN PROVISIONS OF

15 LAW.—Assistance may be furnished for activities under

16 this chapter notwithstanding sections 7201(a)(7) and

17 8402 of this Act, and any similar provisions of law.

18 CHAPTER 3—ROLE OF RELATED PROGRAMS

19 SEC. 1301. STATEMENT OF POLICY REGARDING ROLE OF

20 INTERNATIONAL FINANCIAL INSTITUTIONS.

21 (1) By fostering sound macroeconomic policies, the

22 international financial institutions—

23 (A) further the interest of the United States in

24 a free, open, and stable international economic and

25 financial system; and
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•HR 3765 IH

1 (B) encourage developing countries to partici2 pate more fully in the world economy, thus expand3 ing the opportunities for United States exports and

4 investment.

5 (2) At the same time, structural and sectoral level

6 reforms supported by the international financial institu7 tions, and programs aimed at addressing such problems

8 as basic education, environmental protection, health, and

9 population, should reinforce the goals of United States

10 sustainable development programs.

11 (3) The increasing coordination of the activities of the

12 international financial institutions with those of bilateral

13 assistance programs provides an opportunity for those in14 stitutions to be informed of local perspectives, priorities,

15 and capabilities best gained through decentralized, con16 sultative processes.

17 (4) The United States should give priority to develop18 ing an international consensus on good governance, ac19 countability and transparency, the rule of law, and public

20 participation as central to the development process.

21 (5) The ability of international financial institutions

22 to serve these ends depends on maintenance of strong

23 United States influence in them and fulfillment of United

24 States financial commitments.
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1 SEC. 1302. STATEMENT OF POLICY REGARDING ROLE OF

2 PEACE CORPS.

3 (1) The purposes of the Peace Corps, as set forth

4 in the Peace Corps Act, are consistent with a fundamental

5 objective of this Act—to broaden the participation of peo6 ple in developing countries in the economic and social life

7 of their countries.

8 (2) The benefits provided by both the sustainable de9 velopment programs authorized by this Act and programs

10 authorized by the Peace Corps Act will be enhanced by

11 collaboration that, while not infringing on the traditional

12 autonomy of the Peace Corps, recognizes that the ability

13 of the Peace Corps to address issues of concern to the

14 people of developing countries at the grassroots level com15 plements the programs authorized by this Act.

16 SEC. 1303. STATEMENT OF POLICY REGARDING ROLE OF

17 AFRICAN DEVELOPMENT AND INTER-AMER18 ICAN FOUNDATIONS.

19 (1) The purposes of the Inter-American Foundation

20 and the African Development Foundation as set forth in

21 sections 401(b) and 504 of their respective Acts are con22 sistent with fundamental premises of sustainable develop23 ment programs, such as the need to expand the participa24 tion of individuals in social and economic institutions so

25 that they have a stake in the resolution of social and eco26 nomic issues.
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1 (2) Both Foundations have demonstrated that sus2 tainable development may be fostered at the local level by

3 responding to the expressed needs of the people who live

4 and work in the local community, and providing them with

5 the means to carry out their own development initiatives.

6 (3) By working at the grassroots level to enhance in7 comes, expand social benefits, and encourage increased

8 participation, the programs of the African Development

9 Foundation and the Inter-American Foundation, while

10 independent, are part of an overall framework of support

11 for developing countries which aims to see sustainable de12 velopment occur at the local and the national levels.

13 SEC. 1304. STATEMENT OF POLICY REGARDING ROLE OF

14 PUBLIC LAW 480 NON-EMERGENCY TITLE II

15 AND TITLE III PROGRAMS.

16 STATEMENT OF POLICY.—

17 (1) The use of United States agricultural com18 modities through the Public Law 480 non-emergency

19 title II program, serves the dual purposes of sup20 porting the efforts of poor countries to meet their

21 need for additional food resources while at the same

22 time promoting the long-term sustainable develop23 ment efforts of those countries.

24 (2) By giving priority through the Public Law

25 480 title III program to those least developed, food
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•HR 3765 IH

1 deficit countries with high levels of malnutrition that

2 have long-term plans for broad-based equitable and

3 sustainable development and a demonstrated com4 mitment and capacity to use food assistance effec5 tively, these programs show a consistency of purpose

6 with the sustainable development programs author7 ized by this Act.

8 TITLE II—BUILDING DEMOCRACY

9 SEC. 2001. FINDINGS AND STATEMENT OF POLICY.

10 (a) FINDINGS.—

11 (1) There is a growing worldwide movement to12 ward more open, just and democratic societies. This

13 trend is essential to achieving the United States ulti14 mate objective of worldwide respect for human rights

15 and fundamental freedoms without distinction as to

16 race, sex, language or religion. At the same time,

17 this trend holds great promise for promoting the

18 peace of the world and the foreign policy, security,

19 and general welfare of the United States.

20 (2) Expansion of democratic values and systems

21 must be promoted through bilateral, multilateral,

22 and people-to-people programs with the sustained

23 assistance and moral support of the international

24 community, and of the established democracies in

25 particular.
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1 (3) Democratic development takes time to take

2 root in society and in the political system. There is

3 a need for the international community to assist in

4 the consolidation of democratic values, practices and

5 institutions to prevent the reversal of democratic

6 trends.

7 (4) Frequently, newly democratizing countries

8 are beset by ethnic conflicts, resurgent nationalism

9 and anti-democratic movements, and political reac10 tion to economic reform. A growing number of coun11 tries seek to end years of protracted internal conflict

12 through the implementation of internationally-sanc13 tioned political settlements, designed to create a

14 democratic form of governance, a durable peace, and

15 the institutional requisites for long-term develop16 ment.

17 (5) Furthermore, democratic institutions in

18 countries where democracy has taken root can be

19 similarly threatened by regional and civil unrest, and

20 other threats to international peace and security.

21 (6) Narcotics trafficking, terrorism and other

22 forms of international crime—and the corruption

23 that they engender of political, administrative and

24 other democratic institutions—pose similar threats

25 to such countries, and efforts to combat these
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•HR 3765 IH

1 scourges need to be integrated into and coordinated

2 with broader efforts to develop and consolidate

3 democratic institutions.

4 (7) To advance, countries in such circumstances

5 may require international assistance not normally in6 cluded in humanitarian relief programs, peacekeep7 ing operations, or long-term development programs,

8 and the international community needs to be able to

9 respond swiftly to meet such needs.

10 (8) Failure by the United States to respond ef11 fectively to threats to democracy and human rights

12 abroad could risk important United States interests,

13 jeopardize substantial savings in United States de14 fense that a more democratic and predictable world

15 will bring, imperil United States investments and

16 economic reforms that will result in trade and eco17 nomic benefits to the United States, and heighten

18 the risk that many transitions might ultimately fail

19 and generate costly humanitarian emergencies.

20 (9) Accordingly, the United States must have

21 the capacity to respond rapidly, effectively, and in

22 an integrated fashion to the new opportunities and

23 challenges associated with democratic development.

24 (b) STATEMENT OF POLICY.—
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1 (1) In addition to promoting strong democratic

2 societies as an integral part of the sustainable devel3 opment programs authorized under title I of this

4 Act, it should be the policy of the United States to

5 assist countries making the transition to democracy,

6 and countries where democratic gains are threat7 ened, by providing timely assistance in building ef8 fective democratic institutions and free market

9 economies.

10 (2) At the same time, the promotion of democ11 racy is the responsibility of the global community.

12 The United States should give priority to working

13 bilaterally and multilaterally to ensure commitment

14 of substantial resources toward the promotion of de15 mocracy in transitional countries, and to coordinat16 ing policies and programs among institutions and

17 donors.

18 CHAPTER 1—PROMOTING DEMOCRACY

19 Subchapter A—Countries in Transition

20 SEC. 2101. AUTHORITY.

21 The President may provide assistance under this sub22 chapter for countries—

23 (1) that have recently emerged or are in the

24 process of emerging as democratic societies; or
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•HR 3765 IH

1 (2) that have recently emerged or are emerging

2 from civil strife and either have a democratically3 elected government or are making progress toward

4 developing a democratic form of government; or

5 (3) where democratic progress or institutions

6 are threatened.

7 SEC. 2102. OBJECTIVES AND TYPES OF ASSISTANCE.

8 (a) OBJECTIVES.—Programs under this subchapter

9 should be designed to facilitate the worldwide trend to10 ward more open, just and democratic societies, and may

11 include programs to—

12 (1) promote the development of functioning

13 democratic institutions and political pluralism, in14 cluding programs to facilitate—

15 (A) establishment of fully democratic and

16 representative political systems based on free

17 and fair elections that permit multi-party par18 ticipation;

19 (B) protection of basic human rights and

20 fundamental liberties and individual freedoms

21 including freedom of speech, religion and asso22 ciation, access to information and public par23 ticipation in decisionmaking;

24 (C) development of legal, legislative, con25 stitutional, electoral, journalistic, educational,
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•HR 3765 IH

1 and other institutions, both governmental and

2 nongovernmental which are essential elements

3 of civil society in free pluralistic societies;

4 (D) establishment and professional devel5 opment of non-partisan military, security and

6 police forces, accountable to civil authorities;

7 (E) development of intercommunal conflict

8 resolution mechanisms; and

9 (F) strengthening of policy making skills

10 and accountability of democratic governments.

11 (2) address political, economic and humani12 tarian needs that arise in connection with transi13 tions, or that if unmet undermine or threaten demo14 cratic institutions; and

15 (3) help meet security challenges on a transi16 tional basis that threaten to impede or reverse demo17 cratic reforms or institutions.

18 (b) Assistance may only be provided to military or

19 law enforcement forces under this subchapter—

20 (1) to orient militaries or law enforcement

21 agencies to their respective roles in a democratic

22 order, including through training, contacts with

23 counterparts in established democracies, and other

24 programs designed to enhance respect for human
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1 rights and understanding of principles of civilian

2 control in a democratic society;

3 (2) to enhance the practical accountability of

4 law enforcement agencies to civil justice institutions;

5 (3) to promote demilitarization of society,

6 through programs aimed at demobilization, down7 sizing, and rationalization and professionalization of

8 military structures; or

9 (4) to the extent otherwise permitted under sec10 tion 7104 of this Act; or

11 (5) to meet the challenges described in sub12 section (a)(3).

13 In providing assistance under this subsection the Presi14 dent shall consider the extent to which the recipients dem15 onstrate a commitment to respect human rights and fun16 damental freedoms.

17 SEC. 2103. AVAILABILITY OF FUNDS; AUTHORITIES.

18 (a) AVAILABILITY OF FUNDS.—Funds shall be avail19 able to carry out the provisions of this subchapter as au20 thorized and appropriated to the President each fiscal

21 year. The amount of funds that are authorized and appro22 priated to carry out the provisions of this subchapter that

23 may be made available for assistance administered

24 through the Department of Defense shall be authorized

25 and appropriated separately.
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1 (b) AUTHORITY.—Assistance may be provided under

2 this subchapter notwithstanding any other provision of

3 law.

4 Subchapter B—Independent States of the Former Soviet

5 Union

6 SEC. 2201. STATEMENT OF POLICY.

7 (1) The international community has an unparalleled

8 stake in the success of the democratic and economic trans9 formation taking place in the independent states of the

10 former Soviet Union, and the integration of those states

11 into the community of peaceful and democratic nations.

12 (2) United States programs that facilitate this proc13 ess constitute and should be seen as critical investments

14 in America’s future. The people of the United States and

15 the independent states share an interest in ensuring that

16 assistance is focused on programs that will have lasting

17 effect, that support an ongoing process which can survive

18 the buffeting of political and economic setbacks, and that

19 lay a broad foundation for reform that is not dependent

20 on the success or failure of particular initiatives.

21 (3) United States leadership in supporting reform in

22 the independent states will remain critical. At the same

23 time, the United States must work closely with allies and

24 international institutions to ensure that international sup25 port for reform in these states is coordinated, and that
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1 the costs of programs to support the ongoing trans2 formation is allocated fairly among those with a shared

3 stake in it success.

4 (4) The establishment and development of democratic

5 institutions and market economies in the independent

6 states of the former Soviet Union present among the most

7 important foreign policy challenges of our times. Failure

8 to meet these challenges could threaten United States na9 tional security interests and jeopardize substantial savings

10 in United States defense. Success will generate trade and

11 investment opportunities for American businesses from

12 which the United States stands to reap enduring employ13 ment and other economic benefits, and the prospects of

14 a more peaceful and stable world having lasting benefits

15 for all.

16 SEC. 2202. AVAILABILITY OF FUNDS.

17 Funds shall be available to carry out the provisions

18 of this subchapter as authorized and appropriated to the

19 President each fiscal year. Such funds may be made avail20 able on the same basis as funds authorized to be appro21 priated for fiscal year 1993 under chapter 11 of part I

22 of the Foreign Assistance Act of 1961. Such funds shall

23 be considered to be assistance under this Act for purposes

24 of making available the administrative authorities con25 tained in this Act.
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1 Subchapter C—Central and Eastern Europe

2 SEC. 2301. STATEMENT OF POLICY.

3 It should be the policy of the United States to con4 tinue to facilitate the reintegration of Central and East

5 European countries into the community of democratic na6 tions based on free enterprise, market economies. United

7 States assistance programs can continue to make a sub8 stantial contribution to these objectives by building on ear9 lier initiatives, including important ongoing initiatives that

10 were established under the Support for East European

11 Democracy (SEED) Act of 1989. In furtherance of these

12 objectives, the United States should support economic and

13 political reform in Central and East European countries

14 by making available assistance for SEED Actions as au15 thorized by the SEED Act and for assistance provided

16 under the authorities of this Act to such countries that

17 are taking steps toward—

18 (1) constitutional democracy and political plu19 ralism, based on progress toward free and fair elec20 tions, and a multi-party political system;

21 (2) economic reform, based on progress toward

22 a market-oriented economy;

23 (3) respect for internationally recognized

24 human rights, and the protection of fundamental
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1 civil liberties based on progress toward democratic

2 and independent judicial institutions; and

3 (4) a willingness to build, or continue, a con4 structive and lasting relationship with the United

5 States based on shared values and principles.

6 SEC. 2302. AVAILABILITY OF FUNDS.

7 Funds shall be available to carry out the provisions

8 of this subchapter as authorized and appropriated to the

9 President each fiscal year. Such funds shall be considered

10 to be assistance under this Act for purposes of making

11 available the administrative authorities contained in this

12 Act.

13 CHAPTER 2—INFORMATION AND EXCHANGE

14 SEC. 2401. POLICY.

15 (a) IN GENERAL.—The fostering of democratic soci16 eties, values, and institutions abroad is crucial to the fu17 ture security and prosperity of the United States. Infor18 mation and exchange programs carried out by the United

19 States are central to fostering such democratic values and

20 encouraging the development of democratic institutions

21 and processes around the world.

22 (b) ROLE OF PROGRAMS CONDUCTED BY USIA.—

23 Programs administered by the United States Information

24 Agency should support democratization abroad through

25 the communication of knowledge and the exchange of peo-
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1 ple, ideas and values, and should promote, through in2 country personal contacts, exchanges, training programs,

3 and informational activities, a better understanding of the

4 nature of democracy in such areas as—

5 (1) the role of the citizen and government in

6 democracy and civil society;

7 (2) the principles of a free market economy;

8 (3) respect for the rule of law;

9 (4) the free flow of information;

10 (5) free and fair elections;

11 (6) responsible and representative local govern12 ment; and

13 (7) democratic reform of education.

14 TITLE III—PROMOTING PEACE

15 SEC. 3001. STATEMENT OF POLICY.

16 (1) For over forty years the specter of international

17 communism weighed heavily on United States economic

18 and military assistance priorities. The collapse of com19 munism and the end of the Cold War have opened up new

20 possibilities for international cooperation to contain and,

21 more importantly, to prevent conflict, thereby creating the

22 opportunity for realizing international peace and security.

23 (2) Political destabilization, prompted in part by the

24 demise of communism, has also unleashed long suppressed

25 internal and regional conflict in Eastern Europe, the
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1 former Soviet Union, and elsewhere. At the same time,

2 the proliferation of weapons of mass destruction and tech3 nologies poses unrelenting challenges for peace and secu4 rity that the international community cannot afford to ig5 nore.

6 (3) In addition, the transnational scourges of narcot7 ics trafficking, terrorism and other international criminal

8 activity threaten at the most fundamental level the ability

9 of Americans and others to live their lives in safety.

10 (4) To address such problems during this historic

11 transition in post-Cold War world affairs, United States

12 bilateral and multilateral assistance under this title will

13 be a necessary complement to effective diplomacy and

14 international efforts to secure lasting peace. Failure to in15 vest at this time in programs designed to prevent conflict,

16 and to promote international peace and security, threatens

17 the prospects for substantial savings in United States de18 fense and other expenditures in the future.

19 CHAPTER 1—PEACEKEEPING AND RELATED PROGRAMS

20 SEC. 3101. STATEMENT OF POLICY.

21 (1) In the wake of the Cold War, serious threats per22 sist to the security and interests of the United States, and

23 a range of conflicts within and among states and other

24 humanitarian disasters continue to threaten international

25 peace and security, undermine the stability of regions in
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1 the world, generate disruptive flows of refugees, and cause

2 human suffering on a large scale. When the interests of

3 the United States are at stake, including its treaty obliga4 tions and humanitarian concerns, it will rely on a variety

5 of unilateral, bilateral, and multilateral means to respond

6 to such conflicts and crises.

7 (2) Diplomacy by our Nation and others can prevent

8 or ameliorate foreign conflicts, crises, and breaches of the

9 peace that could impose higher costs and burdens on the

10 United States if left unaddressed. It is therefore the inten11 tion of the Congress through United States leadership to

12 promote the security, welfare, and other foreign policy

13 goals of the United States by supporting timely, preventive

14 diplomatic efforts, unilaterally and in conjunction with

15 other nations.

16 (3) The United States reaffirms its support for ap17 propriate peace operations when they advance United

18 States interests, including the fulfillment of United States

19 treaty obligations, or foreign policy goals, such as encour20 aging the spread of democratic and market institutions,

21 and addressing grave humanitarian crises. A decision to

22 support or participate in such operations should always

23 be based on an assessment by the United States Govern24 ment as to whether United States interests are best served

25 by doing so.
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1 SEC. 3102. GENERAL AUTHORITY.

2 (a) IN GENERAL.—The President is authorized—

3 (1) to pay assessed and other contributions and

4 expenses of international peacekeeping activities and

5 other international activities directed to the mainte6 nance or restoration of international peace and secu7 rity, including the provision of related humanitarian

8 relief; and

9 (2) to furnish assistance to foreign countries,

10 and international and regional organizations and ar11 rangements for peacekeeping, international activities

12 directed to the restoration or maintenance of inter13 national peace and security and other programs car14 ried out in furtherance of the national interest of the

15 United States.

16 (b) AVAILABILITY OF FUNDS.—

17 (1) Funds shall be available to carry out the

18 provisions of subsection (a)(1) as authorized and ap19 propriated to the President each fiscal year.

20 (2) Funds shall be available to carry out the

21 provisions of subsection (a)(2) as authorized and ap22 propriated to the President each fiscal year.

23 (3) If the President determines and reports to

24 Congress that doing so would promote the purposes

25 of this chapter, funds made available under either

26 paragraph (1) or (2) may be transferred to, and
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•HR 3765 IH

1 consolidated with, funds available for the other such

2 paragraph, and may be used for any of the purposes

3 for which funds under that paragraph may be used.

4 (c) AUTHORITY.—Funds made available to carry out

5 this chapter may be made available notwithstanding any

6 provisions of law that restrict assistance to foreign coun7 tries.

8 SEC. 3103. DRAWDOWN AUTHORITIES.

9 (a) UNFORESEEN EMERGENCIES.—If the President

10 determines that, as the result of an unforeseen emergency,

11 the provision of assistance under this chapter in amounts

12 in excess of funds otherwise available for such purposes

13 is important to the national interests of the United States,

14 the President may direct the drawdown of articles and

15 services, of an aggregate value not to exceed $100,000,000

16 in any fiscal year, from the inventory and resources of any

17 agency of the United States Government.

18 (b) REIMBURSEMENT.—There are authorized to be

19 appropriated to the President such sums as may be nec20 essary to reimburse the applicable appropriation, fund, or

21 account for articles and services provided under this sec22 tion.
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1 CHAPTER 2—NONPROLIFERATION AND DISARMAMENT

2 FUND

3 SEC. 3201. STATEMENT OF POLICY.

4 One of the principal threats to the security of the

5 United States in the post-Cold War era is the risk of pro6 liferation of deadly weapons—nuclear, chemical, biologi7 cal, and advanced conventional weapons—as well as their

8 delivery systems. The United States should give high pri9 ority to pursuing arms control agreements and preventing

10 proliferation by supporting and enhancing bilateral and

11 multilateral efforts to—

12 (1) establish effective controls on destabilizing

13 weapon systems and materials;

14 (2) dismantle existing systems;

15 (3) create verifiable safeguards and regimes and

16 effective export controls on related technologies and

17 materials; and

18 (4) increase the effectiveness and help ensure

19 the implementation of existing nonproliferation and

20 arms control agreements, particularly in the states

21 of the former Soviet Union and in Central and East22 ern Europe.

23 SEC. 3202. PROVISION OF ASSISTANCE.

24 Assistance may be provided under this chapter to fa25 cilitate—
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1 (1) supporting the dismantlement and destruc2 tion of nuclear, biological, and chemical weapons,

3 their delivery systems, and conventional weapons;

4 (2) supporting bilateral and multilateral efforts

5 to halt the proliferation of nuclear, biological, and

6 chemical weapons, their delivery systems, related

7 technologies, and other weapons;

8 (3) establishing programs for safeguarding

9 against the proliferation of nuclear, biological, chem10 ical and other weapons;

11 (4) establishing programs for preventing diver12 sion of weapons-related scientific and technical ex13 pertise to terrorist groups or to third countries;

14 (5) increasing effectiveness of existing non15 proliferation and arms control agreements and pro16 motion of arms control and security in regions of

17 tension;

18 (6) assisting international agencies in the appli19 cation of nonproliferation treaty safeguards, in the

20 verification of international nonproliferation regimes,

21 and in the promotion of peaceful uses of technologies

22 and materials related to such weapons; and

23 (7) establishing programs for facilitating the

24 conversion of military technologies and capabilities

25 and defense industries into civilian activities.
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1 SEC. 3203. AVAILABILITY OF FUNDS.

2 Funds shall be available to carry out the provisions

3 of this chapter as authorized and appropriated to the

4 President each fiscal year.

5 SEC. 3204. DRAWDOWN AUTHORITIES.

6 (a) UNFORESEEN EMERGENCIES.—If the President

7 determines that it is in the national interest of the United

8 States to provide assistance under this chapter in amounts

9 in excess of funds otherwise available under this chapter

10 for such purposes, the President may direct the articles

11 and services, of an aggregate value not to exceed

12 $100,000,000 in any fiscal year, from the inventory and

13 resources of any agency of the United States Government.

14 (b) REIMBURSEMENT.—There are authorized to be

15 appropriated to the President such sums as may be nec16 essary to reimburse the applicable appropriation, fund, or

17 account for articles and services provided under this sec18 tion.

19 CHAPTER 3—REGIONAL PEACE, SECURITY AND

20 DEFENSE COOPERATION

21 SEC. 3301. STATEMENT OF POLICY.

22 (1) During the Cold War, regional conflicts were

23 often inspired by hegemonist aspirations of aggressive

24 communism. In the post-Cold War era, regional and inter25 nal conflicts, fueled by more discrete problems such as eth26 nic discord, competing territorial claims and other sources
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1 of tension, persist and are among the greatest threats and

2 barriers to the achievement of international peace and sta3 bility, and a safe and lawful world order.

4 (2) Prudent investment of United States resources to

5 assist, through bilateral and collective efforts, in prevent6 ing or containing armed conflict, in restoring peace and

7 stability, and in addressing the sources of conflict, is es8 sential for achieving a peaceful world.

9 (3) Recent successes in the Near East exemplify the

10 value of United States dedication to resolving conflict in

11 an area whose security and stability is of vital interest to

12 the United States:

13 (A) To permit continued progress in reaching a

14 full settlement and a comprehensive, just and lasting

15 peace between Israel and its Arab neighbors, the

16 United States must assist Israel in maintaining ade17 quate defense capabilities to ensure its territorial in18 tegrity and continued survival.

19 (B) Recognizing that the success of the agree20 ment between Israel and the Palestine Liberation

21 Organization will depend in large measure on pro22 moting economic development and improving the

23 well-being of people of the West Bank and Gaza, the

24 United States should lead in building peace and

25 prosperity in the Near East through bilateral assist-
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1 ance and by encouraging multilateral and other do2 nors to contribute the necessary resources to pro3 mote sustainable economic development throughout

4 that region.

5 (4) The United States must also build security part6 nerships with other allies and friendly nations to assist

7 in their maintaining adequate capabilities to preserve in8 ternal security, as well as to engage in collective defense

9 efforts against states that seek territorial expansion or re10 gional hegemony.

11 (5) Furthermore, to contribute to an international re12 sponse capability, the United States recognizes the need

13 to provide urgent and immediate assistance, bilaterally

14 and multilaterally, to contain and resolve conflicts. To re15 spond to such urgent challenges and to promote inter16 national vigilance in order to stem incipient regional con17 flicts worldwide, the United States sees great value in

18 maintaining alliances, coalitions and other cooperative de19 fense relationships that permit more effective collective de20 fense efforts.

21 (6) As more conflicts are resolved, and as peacetime

22 conditions permit, continued United States assistance

23 under this chapter should focus increasingly on conflict

24 prevention and the promotion of regional arms control,

25 with an emphasis on nonproliferation and defense edu-
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1 cation and training appropriate for a revised military role

2 in a more peaceful and stable world.

3 SEC. 3302. AUTHORITY AND PURPOSES.

4 Assistance under this chapter may be provided for the

5 following purposes—

6 (1) to support and promote the process of re7 solving conflict and establishing a just and lasting

8 peace, to contribute to the development of institu9 tions of democratic government, and to meet eco10 nomic, political and security needs, in the Near

11 East;

12 (2) to meet immediate threats to international

13 peace and security posed by regional and internal

14 conflicts through bilateral or multilateral collective

15 defense efforts, and to meet other political, economic

16 and humanitarian threats to security; and

17 (3) to enhance the ability of countries world18 wide willing to share the burden of contributing to

19 regional alliances, coalition operations, and other col20 lective security efforts to counter threats to and

21 maintain international peace and security.

22 SEC. 3303. CONSIDERATIONS IN PROVIDING DEFENSE CO23 OPERATION ASSISTANCE.

24 In providing assistance under this chapter, the Presi25 dent should take into account the desirability of shifting
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1 resources away from the provision of defense articles to

2 economic development purposes as rapidly as is warranted

3 by the easing of threats to regional peace and security,

4 and the need to maintain ongoing defense relations.

5 SEC. 3304. AVAILABILITY OF FUNDS.

6 Funds shall be available to carry out the provisions

7 of this chapter as authorized and appropriated to the

8 President each fiscal year. The amount of funds that are

9 authorized and appropriated to carry out the provisions

10 of this chapter that may be made available for assistance

11 administered through the Department of Defense shall be

12 authorized and appropriated separately.

13 CHAPTER 4—INTERNATIONAL NARCOTICS TRAFFICKING,

14 TERRORISM AND CRIME PREVENTION

15 SEC. 3401. STATEMENT OF POLICY.

16 (1) International criminal activities, particularly

17 international narcotics trafficking and international ter18 rorism, pose insidious, unparalleled transnational threats

19 in the post-Cold War period, and endanger stability and

20 democratic development.

21 (2) The political and economic upheavals triggered

22 worldwide by international narcotics and crime-related vio23 lence and corruption have had a devastating effect in the

24 United States and elsewhere, and make the prevention and

25 suppression of such international criminal activities
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1 among the most important foreign policy objectives of the

2 United States.

3 (3) Failure to address the problems of narcotics traf4 ficking and related illicit activities will lead inevitably to

5 further and intensified crime, violence, corruption, disease

6 and poverty.

7 (4) The threats posed by terrorism to international

8 peace and security and a stable, safe world order are

9 equally profound, and must be combatted through effec10 tive international cooperation, including the provision of

11 training and equipment.

12 (5) The war against narcotics trafficking, inter13 national terrorism and other forms of international crimi14 nal activity requires the provision of bilateral and multilat15 eral assistance by the United States, including as appro16 priate through defense establishments, and can be waged

17 most successfully by enlisting broad-based international

18 cooperation that facilitates flexible responses to stem all

19 such activity.

20 (6) In order to combat such activities, it is imperative

21 that international cooperation be improved, and efforts in

22 this regard should include assistance to promote enhanced

23 police investigative techniques, prosecutorial and defense

24 skills, and judicial training and administration.
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1 SEC. 3402. AUTHORITIES.

2 Assistance under this chapter may be provided for the

3 following purposes—

4 (1) to control narcotics and psychotropic drugs

5 and other controlled substances including through

6 programs to promote alternative development, and

7 including through enforcement, demand reduction

8 and treatment programs;

9 (2) to enhance the rule of law and the ability

10 of law enforcement and, as appropriate, defense per11 sonnel of foreign countries to combat international

12 criminal activity including corruption, money laun13 dering, economic crimes, illegal trade, narcotics

14 manufacturing and trafficking and terrorism;

15 (3) to enhance anti-terrorism skills of foreign

16 law enforcement and, as appropriate, defense per17 sonnel to deter terrorists and terrorist groups from

18 engaging in international terrorist acts such as

19 bombing, kidnapping, assassination, hostage-taking

20 and hijacking; and

21 (4) to provide concrete anti-crime, anti-terror22 ism and anti-narcotics assistance to friendly coun23 tries to strengthen bilateral ties and to increase re24 spect for human rights by sharing with foreign civil

25 authorities modern, humane and effective anti-crime

26 and anti-terrorism techniques; and
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1 (5) to combat through effective cooperation

2 international criminal activity, including organized

3 crime and its role in attempting to influence the

4 process of government, and to increase international

5 awareness of the need for concerted efforts through

6 bilateral and multilateral means, such as the United

7 Nations Commission on Crime Prevention and

8 Criminal Justice; and

9 (6) to promote international criminal justice, in10 cluding through assistance to promote enhanced po11 lice investigative techniques, prosecutorial and de12 fense skills, and judicial training and administration.

13 SEC. 3403. PROVISIONS RELATED TO ANTI-NARCOTICS PRO14 GRAMS.

15 (a) FURNISHING ASSISTANCE.—The President is au16 thorized to furnish assistance under this chapter for the

17 purposes of controlling narcotic and psychotropic drugs

18 and other controlled substances notwithstanding any other

19 provision of law, and is authorized to furnish narcotics20 related assistance under other provisions of this title not21 withstanding any other provision of law that restricts as22 sistance to foreign countries (except section 7201(a)(6)).

23 (b) AGREEMENTS WITH OTHER COUNTRIES.—In

24 order to promote cooperation for the purposes of this

25 chapter, the President is authorized to conclude agree-
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1 ments, including reciprocal maritime agreements, with

2 other countries to facilitate control of the production,

3 processing, transportation, and distribution of narcotics

4 analgesics, including opium and its derivatives, other nar5 cotic and psychotropic drugs, and other controlled sub6 stances.

7 (c) CONTRIBUTION BY RECIPIENT COUNTRY TO

8 COUNTER-NARCOTICS EFFORTS.—To ensure local com9 mitment to the anti-narcotics activities assisted under this

10 chapter, the government of a country receiving such assist11 ance under this chapter should bear an appropriate share

12 of the costs of any narcotics control program, project, or

13 activity for which such assistance is to be provided. The

14 government of a country may bear such costs on an ‘‘in

15 kind’’ basis.

16 (d) USE OF HERBICIDES FOR AERIAL ERADICATION

17 OF NARCOTICS.—The President, with the assistance of ap18 propriate Federal agencies, shall monitor the use of any

19 herbicides provided under this chapter for aerial eradi20 cation in order to determine the impact of such use on

21 the environment and on the health of individuals.

22 (e) LIMITATIONS ON USES OF AIRCRAFT AND OTHER

23 EQUIPMENT.—The President shall take all reasonable

24 steps to ensure that aircraft and other equipment made

25 available to foreign countries for purposes described in
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1 section 3402(1) are used only in ways that are consistent

2 with the purposes for which such equipment was made

3 available. In the reports submitted pursuant to section

4 7303, the President shall discuss any evidence indicating

5 misuse by a foreign country of aircraft or other equipment

6 made available for purposes described in section 3402(1),

7 and the actions taken by the United States Government

8 in accordance with this Act to prevent future misuse of

9 such equipment by that foreign country.

10 (f) PROHIBITION ON ASSISTANCE TO DRUG TRAF11 FICKERS.—The President shall take all reasonable steps

12 to ensure that assistance under this Act is not provided

13 to or through any individual or entity that has been con14 victed of, or against whom a government has formal crimi15 nal charges pending regarding, a violation of, or a conspir16 acy to violate, any law or regulation of the United States,

17 a State or the District of Columbia, or a foreign country,

18 relating to narcotic or psychotropic drugs or other con19 trolled substances. This subsection shall not be construed

20 to restrict assistance that is provided under this Act to

21 facilitate alternative development programs.

22 (g) COORDINATION OF ALL UNITED STATES ANTI23 NARCOTICS ASSISTANCE.—Consistent with subtitle A of

24 title I of the Anti-Drug Abuse Act of 1988, the Secretary

25 of State shall be responsible for coordinating all assistance
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1 provided by the United States Government to support

2 international efforts to combat illicit narcotics production

3 or trafficking. Nothing contained in this subsection shall

4 be construed to limit or impair the authority or respon5 sibility of any other Federal agency with respect to law

6 enforcement, domestic security operations, or intelligence

7 activities as defined in Executive Order 12333.

8 SEC. 3404. PROVISIONS RELATED TO LAW ENFORCEMENT

9 TRAINING.

10 (a) TRAINING BY STATE DEPARTMENT PERSON11 NEL.—Employees of the Department of State shall not en12 gage in the training of law enforcement personnel for anti13 terrorism programs under this chapter, with the exception

14 of training (including short term refresher training) or

15 services provided to law enforcement personnel by employ16 ees of the Bureau of Diplomatic Security with regard to

17 crisis management, facility security, or VIP protection.

18 (b) ASSISTANCE RELATING TO INTELLIGENCE AC19 TIVITIES.—Anti-terrorism assistance under this chapter

20 shall not include activities involved in the collection of in21 telligence as defined in Executive Order 12333, other than

22 limited training in the organization of intelligence for

23 antiterrorism purposes under the provisions of this chap24 ter.
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1 (c) TYPES OF ASSISTANCE.—Anti-crime and anti-ter2 rorism assistance under this chapter should emphasize the

3 provision of training rather than the provision of articles.

4 Such training should be provided with due regard for a

5 country’s commitment to democracy and respect for

6 human rights, and where appropriate should incorporate

7 a component to promote respect for human rights. To the

8 extent equipment or other articles are provided under as9 sistance programs pursuant to this chapter, items that

10 support more effective administrative efforts should re11 ceive the highest consideration.

12 SEC. 3405. WAIVER OF CERTAIN RESTRICTIONS ON ASSIST13 ANCE.

14 Section 7201(a)(7) of this Act and any similar provi15 sions of law shall not apply to the provision of assistance

16 under this chapter.

17 SEC. 3406. AVAILABILITY OF FUNDS.

18 Funds shall be available to carry out the provisions

19 of this chapter as authorized and appropriated to the

20 President each fiscal year. The amount of funds that are

21 authorized and appropriated to carry out the provisions

22 of this chapter that may be made available for assistance

23 administered through the Department of Defense shall be

24 authorized and appropriated separately.
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1 TITLE IV—PROVIDING HUMANITARIAN

2 ASSISTANCE

3 SEC. 4001. STATEMENT OF POLICY.

4 (1) The post-Cold War era has been marked by a sud5 den proliferation of crises and transitions that have led

6 to a massive civilian death toll, widespread human suffer7 ing, and an unprecedented number of people becoming ref8 ugees and displaced persons.

9 (2) Civil war, international conflict, and natural dis10 asters have all contributed to these humanitarian crises

11 which have jeopardized the stability of nascent democ12 racies and strained the ability of fragile economies to meet

13 these unexpected requirements.

14 (3) In significant measure, the effects of manmade

15 and natural disasters, at times amplified by prolonged en16 vironmental degradation, threaten continued sustained de17 velopment and are at the same time magnified by the lack

18 of that development.

19 (4) Bilateral and multilateral programs that provide

20 support to countries faced with large numbers of refugees,

21 rapidly respond to natural and manmade disasters, and

22 otherwise meet humanitarian and crisis needs are essential

23 for the continued democratization and economic growth of

24 countries that, by themselves, do not have the resources

25 to cope with crises of such magnitude.
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1 CHAPTER 1—REFUGEE ASSISTANCE

2 SEC. 4101. STATEMENT OF POLICY AND PURPOSES.

3 (a) STATEMENT OF POLICY.—

4 (1) United States leadership in international

5 refugee and migration affairs reflects our humani6 tarian values and traditions.

7 (2) United States refugee assistance upholds

8 humanitarian principles that the United States

9 shares with others in the international community.

10 (3) Too often, situations involving serious viola11 tions of human rights, conflict, or disaster create or

12 threaten to create large-scale refugee and migration

13 problems in which the victims are forced to flee their

14 homes for safety and survival.

15 (4) United States advances the ability of the

16 international community to address humanitarian

17 crises involving the forced migration of peoples

18 through support for, participation in and assistance

19 to, the international and other institutions involved

20 in the protection of and assistance to victims of per21 secution, conflict and other forms of human rights

22 violations and forced displacements.

23 (5) United States efforts to improve inter24 national cooperation and burdensharing in carrying

25 out these programs underscore that these issues are
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1 the subject of international concern and shared re2 sponsibility.

3 (6) Prompt and effective responses can avert

4 further crises and instability and can alleviate the

5 suffering of the victims of displacement.

6 (7) It is imperative that the United States have

7 the resources and the flexibility to be able to provide

8 effective and immediate assistance in this regard.

9 (b) PURPOSES OF ASSISTANCE.—Assistance under

10 this chapter may be made available to—

11 (1) provide assistance to or on behalf of refu12 gees, conflict victims, displaced persons, and other

13 victims of forced migration, who are outside the

14 United States, including assistance on behalf of

15 those persons who will be considered for admission

16 to the United States and for the initial reintegration

17 of persons who have been repatriated to their coun18 tries of origin;

19 (2) contribute to the activities of the United

20 Nations High Commissioner for Refugees, the Inter21 national Organization for Migration, the Inter22 national Committee of the Red Cross, the United

23 Nations Relief and Works Agency for Palestine Ref24 ugees in the Near East, and other relevant organiza25 tions and institutions; and
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1 (3) provide such other assistance as may be

2 necessary to promote the prevention and solution of

3 refugee and other migration problems, in countries

4 of origin as well as in countries of asylum, and in5 cluding for resettlement and demining efforts.

6 (c) EMERGENCY REFUGEE AND MIGRATION ASSIST7 ANCE.—

8 (1) Whenever the President determines it to be

9 important to the national interest he is authorized to

10 furnish assistance for the purposes of section 4102

11 when such needs are unexpected and urgent.

12 (2) There is established a United States Emer13 gency Refugee and Migration Assistance Fund to

14 carry out the purposes of this subsection. There is

15 authorized to be appropriated to the President from

16 time to time such amounts as may be necessary for

17 the fund to carry out the purposes of this sub18 section. The President shall promptly notify the

19 Congress concerning the use of funds under this

20 subsection.

21 (d) WAIVER OF RESTRICTIONS ON ASSISTANCE.—

22 The President may carry out activities under this chapter

23 notwithstanding any other provision of law.
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1 SEC. 4102. AVAILABILITY OF FUNDS.

2 Funds shall be available to carry out the provisions

3 of this chapter as authorized and appropriated to the

4 President each fiscal year.

5 CHAPTER 2—DISASTER ASSISTANCE

6 SEC. 4201. POLICY.

7 (a) HUMANITARIAN CONCERNS AND TRADITIONS OF

8 THE AMERICAN PEOPLE.—Prompt United States assist9 ance to alleviate human suffering caused by natural and

10 manmade disasters is a longstanding tradition and an im11 portant expression of the humanitarian interest of the peo12 ple of the United States. The willingness of the United

13 States to provide assistance through bilateral, multilat14 eral, and people-to-people means for the relief and reha15 bilitation of people and countries affected by such disas16 ters is hereby reaffirmed.

17 (b) REACHING THOSE MOST IN NEED.—In carrying

18 out this chapter, the President shall insure that, to the

19 greatest extent possible, the assistance provided by the

20 United States reaches those most in need of relief and re21 habilitation as a result of natural and manmade disasters.

22 SEC. 4202. AUTHORITY TO PROVIDE ASSISTANCE.

23 (a) IN GENERAL.—The President is authorized to

24 furnish assistance for international disaster relief and re25 habilitation. Such assistance may include assistance relat26 ing to disaster preparedness, prevention, and mitigation,
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1 and to the prediction of, and contingency planning for,

2 natural and manmade disasters abroad.

3 (b) NONAPPLICABILITY OF OTHER PROVISIONS.—

4 Assistance may be furnished under this chapter notwith5 standing any other provision of this or any other Act.

6 (c) BORROWING AUTHORITY.—

7 (1) AUTHORITY.—In addition to amounts oth8 erwise available to carry out this chapter, up to

9 $50,000,000 in any fiscal year may be obligated

10 against appropriations available to carry out other

11 titles of this Act for use in providing assistance in

12 accordance with the authorities and general policies

13 of this chapter.

14 (2) REIMBURSEMENT.—Amounts subsequently

15 appropriated to carry out this chapter with respect

16 to a disaster may be used to reimburse any appro17 priation account against which obligations were in18 curred under this subsection with respect to that

19 disaster.

20 (d) RECONSTRUCTION.—A portion of the funds made

21 available to carry out this section may be used, in addition

22 to amounts otherwise available for such purposes, to re23 spond rapidly to reconstruction and institution-building

24 needs arising from natural or manmade disasters.
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1 SEC. 4203. AVAILABILITY OF FUNDS.

2 Funds shall be available to carry out the provisions

3 of this chapter as authorized and appropriated to the

4 President each fiscal year.

5 CHAPTER 3—EMERGENCY FOOD ASSISTANCE

6 SEC. 4301. STATEMENT OF POLICY REGARDING EMER7 GENCY FOOD ASSISTANCE UNDER PUBLIC

8 LAW 480, TITLE II.

9 (1) The United States continues to provide leadership

10 in addressing famine and other urgent or extraordinary

11 worldwide relief needs.

12 (2) In particular, the use of United States agricul13 tural commodities through bilateral and multilateral chan14 nels to meet emergency food needs has saved lives, amelio15 rated suffering, and has been a tangible expression of the

16 best in the humanitarian spirit of the American people.

17 (3) This assistance is often provided in conjunction

18 with assistance furnished under the other chapters of this

19 title to provide a comprehensive program of relief for those

20 less fortunate than we who are refugees or other victims

21 of forced migration, or are suffering the consequences of

22 natural or manmade disasters.
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1 TITLE V—PROMOTING GROWTH THROUGH

2 TRADE AND INVESTMENT

3 SEC. 5001. STATEMENT OF POLICY.

4 (1) In an increasingly interdependent world, the secu5 rity and well-being of the United States will be shaped

6 by the ability of the United States to compete and prosper

7 in a global economy.

8 (2) The United States remains committed to the

9 principles of free trade among nations as the most effec10 tive means to promote expanding international markets

11 and global economic prosperity.

12 (3) Economic growth and creation of employment op13 portunities in the United States are directly and materi14 ally enhanced by international economic growth and trade

15 liberalization.

16 (4) United States trade and investment represent a

17 powerful means of promoting economic growth and devel18 opment in emerging economies and economies in transi19 tion. Expanding United States trade and investment op20 portunities in the markets of the future is best sustained

21 by free-market orientation and sustained development in

22 those countries.

23 (5) The twin tracks of commercial engagement and

24 longer-term sustainable development represent com-
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1 plementary means of advancing United States interests by

2 creating a more prosperous, therefore more secure world.

3 (6) The provision of a comprehensive and coordinated

4 program of export financing, investment insurance, guar5 anties and feasibility studies significantly enhances the

6 ability of the private sector to pursue trade and investment

7 opportunities in developing countries.

8 CHAPTER 1—OVERSEAS PRIVATE INVESTMENT

9 CORPORATION

10 SEC. 5101. PURPOSE AND POLICY.

11 (a) PURPOSE.—The Overseas Private Investment

12 Corporation shall be an agency of the United States under

13 the foreign policy guidance of the Secretary of State. The

14 purpose of the Corporation is to mobilize and facilitate

15 the participation of United States private capital and skills

16 in the economic and social development of less developed

17 friendly countries and areas, and countries in transition

18 from nonmarket to market economies, thereby com19 plementing the development assistance objectives of the

20 United States, facilitating the competitiveness of the Unit21 ed States private sector, and promoting United States eco22 nomic growth.

23 (b) DEVELOPMENT, EXPORT, AND PER CAPITA IN24 COME CRITERIA.—The Corporation, in determining
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1 whether to provide insurance, reinsurance, or financing for

2 a project, shall especially—

3 (1) be guided by the economic and social devel4 opment impact and benefits of such a project and

5 the ways in which such a project complements, or is

6 compatible with, other development assistance pro7 grams or projects of the United States or other do8 nors;

9 (2) give preference to projects which promote

10 United States exports and increase United States

11 economic growth; and

12 (3) give preferential consideration to investment

13 projects in countries that have per capita incomes of

14 $1,230 or less in 1992 United States dollars; and re15 strict its activities in countries with per capita in16 comes of $5,335 or more in 1992 United States dol17 lars (other than countries designated as beneficiary

18 countries under section 212 of the Caribbean Basin

19 Economic Recovery Act (19 U.S.C.2702)).

20 (c) GUIDELINES FOR ACTIVITIES OF OPIC.—In car21 rying out its purpose, the Corporation, utilizing broad cri22 teria, shall undertake—

23 (1) to conduct insurance, reinsurance, and fi24 nancing operations on a self-sustaining basis, taking
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1 into account in its financing operations the economic

2 and financial soundness of projects;

3 (2) to utilize private credit and investment in4 stitutions and the Corporation’s financing authority

5 as the principal means of mobilizing capital invest6 ment funds;

7 (3) to broaden private participation and revolve

8 its funds through selling its direct investments to

9 private investors whenever it can appropriately do so

10 on satisfactory terms;

11 (4) to conduct its insurance operations with due

12 regard to principles of risk management, including

13 efforts to share its insurance risks and reinsurance

14 risks;

15 (5) to consider in the conduct of its operations

16 the extent to which the governments of less devel17 oped countries are receptive to private enterprise,

18 domestic and foreign, and their willingness and abil19 ity to maintain conditions which enable private en20 terprise to make its full contribution to the develop21 ment process;

22 (6) to foster private initiative and competition

23 and discourage monopolistic practices;

24 (7) to further to the greatest degree possible, in

25 a manner consistent with its goals, the balance-of-
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1 payments and economic and employment objectives

2 of the United States;

3 (8) to conduct its activities in consonance with

4 the international trade, investment, and financial

5 policies of the United States Government, and to

6 seek to support those developmental projects having

7 positive trade benefits for the United States; and

8 (9) to advise and assist, within its field of com9 petence, interested agencies of the United States and

10 other organizations, both public and private, na11 tional and international, with respect to projects and

12 programs relating to the development of private en13 terprise in less developed countries and areas.

14 SEC. 5102. INVESTMENT INSURANCE, FINANCING, AND

15 OTHER PROGRAMS.

16 (a) INVESTMENT INSURANCE.—

17 (1) RISKS FOR WHICH INSURANCE ISSUED.—

18 The Corporation is authorized to issue insurance,

19 upon such terms and conditions as the Corporation

20 may determine, to eligible investors assuring protec21 tion in whole or in part against any or all of the fol22 lowing risks with respect to projects which the Cor23 poration has approved:

24 (A) Inability to convert into United States

25 dollars other currencies, or credits in such cur-
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1 rencies, received as earnings or profits from the

2 approved project, as repayment or return of the

3 investment in the project, in whole or in part,

4 or as compensation for the sale or disposition of

5 all or any part of the investment.

6 (B) Loss of investment, in whole or in

7 part, in the approved project due to expropria8 tion or confiscation by action of a foreign gov9 ernment.

10 (C) Loss due to war, revolution, insurrec11 tion, or civil strife.

12 (D) Loss due to business interruption

13 caused by any of the risks set forth in subpara14 graphs (A), (B), and (C).

15 (2) RISK SHARING ARRANGEMENTS WITH FOR16 EIGN GOVERNMENTS AND MULTILATERAL ORGANIZA17 TIONS.—Recognizing that major private investments

18 in emerging democracies, economies in trans19 formation and less developed friendly countries or

20 areas are often made by enterprises in which there

21 is multinational participation, including significant

22 United States private participation, the Corporation

23 may make arrangements with foreign governments

24 (including agencies, instrumentalities, and political

25 subdivisions thereof) and with multilateral organiza-
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•HR 3765 IH

1 tions and institutions for sharing liabilities assumed

2 under investment insurance for such investments

3 and may, in connection with such arrangements,

4 issue insurance to investors not otherwise eligible for

5 insurance under this chapter, except that—

6 (A) liabilities assumed by the Corporation

7 under the authority of this paragraph shall be

8 consistent with the purposes of this chapter,

9 and

10 (B) the maximum share of liabilities so as11 sumed shall not exceed the proportionate par12 ticipation by eligible investors in the project.

13 (3) MAXIMUM CONTINGENT LIABILITY WITH

14 RESPECT TO SINGLE INVESTOR.—Not more than 10

15 percent of the maximum contingent liability for in16 vestment insurance which the Corporation is per17 mitted to have outstanding under section 5104(a)(1)

18 shall be issued to a single investor.

19 (4) OTHER INSURANCE FUNCTIONS.—

20 (A) IN GENERAL.—The Corporation is au21 thorized to—

22 (i) make and carry out contracts of

23 insurance or reinsurance, or agreements to

24 associate or share risks, with insurance
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1 companies, financial institutions, any other

2 persons, or groups thereof, and

3 (ii) employ such insurance companies,

4 financial institutions, other persons, or

5 groups, where appropriate, as its agent, or

6 to act as their agent, in the issuance and

7 servicing of insurance, the adjustment of

8 claims, the exercise of subrogation rights,

9 the ceding and accepting of reinsurance,

10 and in any other matter incident to an in11 surance business, except that such agree12 ments and contracts shall be consistent

13 with the purposes of the Corporation set

14 forth in section 5101 and shall be on equi15 table terms.

16 (B) RISK-SHARING AGREEMENTS.—The

17 Corporation is authorized to enter into pooling

18 or other risk-sharing agreements with multilat19 eral insurance or financing agencies or groups

20 of such agencies.

21 (C) OWNERSHIP INTEREST IN RISK-SHAR22 ING ENTITIES.—The Corporation is authorized

23 to hold an ownership interest in any association

24 or other entity established for the purposes of

25 sharing risks under investment insurance.
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1 (b) INVESTMENT FINANCING.—

2 (1) DIRECT LENDING.—

3 (A) IN GENERAL.—The Corporation is au4 thorized to make loans in United States dollars,

5 repayable in dollars, and to make loans in for6 eign currencies, to firms privately owned or of

7 mixed private and public ownership, upon such

8 terms and conditions as the Corporation may

9 determine.

10 (B) USE OF LOAN FOR NEW TECH11 NOLOGIES, PRODUCTS, OR SERVICES.—The Cor12 poration may designate up to 25 percent of any

13 loan under this subsection for use in the devel14 opment or adaptation in the United States of

15 new technologies or new products or services

16 that are to be used in the project for which the

17 loan is made and are likely to contribute to the

18 economic or social development of less devel19 oped countries.

20 (2) EQUITY INVESTMENT.—

21 (A) IN GENERAL.—The Corporation is au22 thorized to purchase, invest in, or otherwise ac23 quire equity securities or securities with equity

24 characteristics of any firm or entity, upon such

25 terms and conditions as the Corporation may
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1 determine, to be funded in the same manner as

2 direct loans under the Federal Credit Reform

3 Act of 1990 for the purpose of providing capital

4 for any project which is consistent with the pro5 visions of this chapter, except that—

6 (i) the aggregate amount of the Cor7 poration’s equity investment with respect

8 to any project shall not exceed 30 percent

9 of the aggregate amount of all equity in10 vestment made with respect to such project

11 at the time that the Corporation’s equity

12 investment is made, except for securities

13 acquired through the enforcement of any

14 lien, pledge, or contractual arrangement as

15 a result of a default by any party under

16 any agreement relating to the terms of the

17 Corporation’s investment; and

18 (ii) the Corporation’s equity invest19 ment under this paragraph with respect to

20 any project, when added to any other in21 vestments made or guaranteed by the Cor22 poration under this paragraph with respect

23 to such project, shall not cause the aggre24 gate amount of all such investment to ex25 ceed, at the time any such investment is
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1 made or guaranteed by the Corporation,

2 75 per centum of the total investment com3 mitted to such project as determined by

4 the Corporation. Such determination under

5 this clause shall be conclusive for purposes

6 of the Corporation’s authority to make or

7 guarantee any such investment.

8 (B) ADDITIONAL CRITERIA.—In making

9 investment decisions under this paragraph, the

10 Corporation shall give consideration to the ex11 tent to which the Corporation’s equity invest12 ment will assist in obtaining the financing re13 quired for such projects.

14 (C) DISPOSITION OF EQUITY INTEREST.—

15 Taking into consideration, among other things,

16 the Corporation’s financial interests and the de17 sirability of fostering the development of local

18 capital markets in emerging democracies,

19 economies in transformation and less developed

20 countries, the Corporation shall endeavor to dis21 pose of any equity interest it may acquire under

22 this subsection within a period of ten years

23 from the date of acquisition of such interest.

24 (3) INVESTMENT GUARANTEES.—
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1 (A) AUTHORITY.—The Corporation is au2 thorized to issue to eligible investors guarantees

3 of loans and other investments made by such

4 investors assuring against loss due to such risks

5 and upon such terms and conditions as the Cor6 poration may determine, subject to subpara7 graphs (B), (C), and (D).

8 (B) GUARANTEES ON OTHER THAN LOAN

9 INVESTMENTS.—A guarantee issued under sub10 paragraph (A) on other than a loan investment

11 may not exceed 75 per centum of such invest12 ment.

13 (C) LIMIT ON AMOUNT OF INVESTMENT

14 GUARANTEED.—Except for loan investments for

15 credit unions made by eligible credit unions or

16 credit union associations, the aggregate amount

17 of investment (exclusive of interest and earn18 ings) for which guarantees are issued under

19 subparagraph (A) with respect to any project

20 shall not exceed, at the time of issuance of any

21 such guarantee, 75 per centum of the total in22 vestment committed to any such project as de23 termined by the Corporation. Such determina24 tion by the Corporation shall be conclusive for
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1 purposes of the Corporation’s authority to issue

2 any such guarantee.

3 (D) MAXIMUM CONTINGENT LIABILITY

4 WITH RESPECT TO SINGLE INVESTOR.—Not

5 more than 15 per centum of the maximum con6 tingent liability for investment guarantees

7 which the Corporation is permitted to have out8 standing under section 5104(a)(2) may be is9 sued to a single investor.

10 (c) INVESTMENT ENCOURAGEMENT.—The Corpora11 tion is authorized to initiate and support through financial

12 participation, incentive grant, or otherwise, and on such

13 terms and conditions as the Corporation may determine,

14 the identification, assessment, surveying, and promotion

15 of private investment opportunities, using wherever fea16 sible and effective the facilities of private investors, except

17 that the Corporation shall not finance any survey to ascer18 tain the existence, location, extent, or quality of oil or gas

19 resources.

20 (d) SPECIAL ACTIVITIES.—The Corporation is au21 thorized to administer and manage special projects and

22 programs, including programs of financial and advisory

23 support, which provide private technical, professional, or

24 managerial assistance in the development of human re25 sources, skills, technology, capital savings, intermediate fi-
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1 nancial and investment institutions, and cooperatives. The

2 funds for these projects and programs may, with the Cor3 poration’s concurrence, be transferred to it for such pur4 poses under the authority of section 8201 of this Act or

5 from other sources, public or private.

6 SEC. 5103. ENHANCING PRIVATE POLITICAL RISK INSUR7 ANCE INDUSTRY.

8 In order to encourage greater availability of political

9 risk insurance for eligible investors by enhancing the pri10 vate political risk insurance industry in the United States,

11 and to the extent consistent with this chapter, the Cor12 poration shall undertake programs of cooperation with

13 such industry, and in connection with such programs may

14 engage in the following activities:

15 (1) Utilizing its statutory authorities, encourage

16 the development of associations, pools, or consortia

17 of United States private political risk insurers.

18 (2) Share insurance risks (through coinsurance,

19 contingent insurance, or other means) in a manner

20 that is conducive to the growth and development of

21 the private political risk insurance industry in the

22 United States.

23 (3) Notwithstanding section 8544(e), upon the

24 expiration of insurance provided by the Corporation

25 for an investment, enter into risk-sharing agree-
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1 ments with United States private political risk insur2 ers to insure any such investment; except that, in co3 operating in the offering of insurance under this

4 paragraph, the Corporation shall not assume respon5 sibility for more than 50 per centum of the insur6 ance being offered in each separate transaction.

7 SEC. 5104. ISSUING AUTHORITY AND RESERVES.

8 (a) ISSUING AUTHORITY.—

9 (1) INSURANCE.—The maximum contingent li10 ability outstanding at any one time pursuant to in11 surance issued under section 5102(a) shall not ex12 ceed in the aggregate $15,000,000,000.

13 (2) FINANCING.—The Corporation is authorized

14 to commit investment financing under section

15 5102(b) of up to $5,000,000,000 for the period of

16 fiscal years beginning October 1, 1994, terminating

17 on the date specified in paragraph (3).

18 (3) TERMINATION OF AUTHORITY.—The au19 thority of subsection (a) and (b) of section 5102

20 shall continue until September 30, 1999.

21 (b) INSURANCE RESERVE.—

22 (1) MAINTENANCE AND PURPOSES.—The Cor23 poration shall maintain an insurance reserve. Such

24 reserve shall be available for the discharge of liabil25 ities, as provided in subsection (d), until such time
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1 as all such liabilities have been discharged or have

2 expired or until such reserve has been expended in

3 accordance with the provisions of this section.

4 (2) FUNDING.—The insurance reserve shall

5 consist of—

6 (A) any funds in the insurance reserve of

7 the Corporation on September 30, 1993,

8 (B) amounts transferred to the reserve

9 pursuant to this Act, and

10 (C) such sums as are appropriated pursu11 ant to subsection (d) of this section for such

12 purposes.

13 (c) ORDER OF PAYMENTS TO DISCHARGE LIABIL14 ITIES.—Any payment made to discharge liabilities under

15 investment insurance or reinsurance issued under section

16 5102, under similar predecessor guarantee authority, or

17 under section 5103, shall be paid first out of the insurance

18 reserve, as long as such reserve remains available, and

19 thereafter out of funds made available pursuant to sub20 section (d) of this section. Any payments made to dis21 charge liabilities under guarantees issued under section

22 5102(b) shall be paid in accordance with the Federal

23 Credit Reform Act of 1990.

24 (d) AVAILABILITY OF FUNDS.—
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1 (1) AVAILABILITY.—Subject to paragraph (2),

2 funds shall be available to carry out the provisions

3 of this chapter as authorized and appropriated to

4 the President to replenish or increase the insurance

5 reserve, to discharge the liabilities under insurance

6 or reinsurance issued by the Corporation, or to dis7 charge obligations of the Corporation purchased by

8 the Secretary of the Treasury pursuant to subsection

9 (e).

10 (2) LIMITATION ON APPROPRIATIONS.—No ap11 propriation shall be made under paragraph (1) to

12 augment the insurance reserve until the amount of

13 funds in the insurance reserve is less than

14 $25,000,000. Any appropriations to augment the in15 surance reserve shall then only be made to satisfy

16 the full faith and credit provision of section 8545(c).

17 (e) ISSUANCE OF OBLIGATIONS.—In order to dis18 charge liabilities under investment insurance or reinsur19 ance, the Corporation is authorized to issue from time to

20 time for purchase by the Secretary of the Treasury its

21 notes, debentures, bonds, or other obligations; except that

22 the aggregate amount of such obligations outstanding at

23 any one time may not exceed $100,000,000. Any such ob24 ligation shall be repaid to the Treasury within one year

25 after the date of issue of such obligation. Any such obliga-
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1 tion shall bear interest at a rate determined by the Sec2 retary of the Treasury, taking into consideration the cur3 rent average market yield on outstanding marketable obli4 gations of the United States of comparable maturities dur5 ing the month preceding the issuance of any obligation

6 authorized by this subsection. The Secretary of the Treas7 ury shall purchase any obligation of the Corporation is8 sued under this subsection, and for such purchase the Sec9 retary may use as a public debt transaction the proceeds

10 of the sale of any securities issued under chapter 31 of

11 title 31, United States Code. The purpose for which secu12 rities may be issued under chapter 31 of title 31, United

13 States Code, shall include any such purchase.

14 SEC. 5105. GUIDELINES AND REQUIREMENTS FOR OPIC

15 SUPPORT.

16 (a) DEVELOPMENT IMPACT PROFILE.—In order to

17 carry out the policy set forth in section 5101(b)(1), the

18 Corporation shall prepare and maintain for each invest19 ment project it insures, reinsures, or finances a develop20 ment impact profile consisting of data appropriate to

21 measure the projected and actual effects of such project

22 on development.

23 (b) SMALL BUSINESS DEVELOPMENT.—

24 (1) BROADENED PARTICIPATION BY SMALL

25 BUSINESSES.—The Corporation shall undertake, in
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1 cooperation with appropriate departments, agencies,

2 and instrumentalities of the United States as well as

3 private entities and others, to broaden the participa4 tion of United States small business, cooperatives,

5 and other small United States investors in the devel6 opment of small private enterprise in less developed

7 friendly countries or areas.

8 (2) PREFERENTIAL CONSIDERATION.—The Cor9 poration shall undertake to the maximum degree

10 possible consistent with its purposes—

11 (A) to give preferential consideration in its

12 investment insurance, reinsurance, financing,

13 and investment encouragement activities to in14 vestment projects sponsored by or involving

15 United States small business or cooperatives;

16 (B) to maintain the proportion of projects

17 sponsored by or significantly involving United

18 States small business to at least 30 per centum

19 of all projects insured, reinsured, financed or

20 encouraged by the Corporation.

21 (c) ENVIRONMENTAL CONSIDERATIONS.—

22 (1) ENVIRONMENTAL, HEALTH, OR SAFETY

23 HAZARD.—The Corporation shall refuse to insure,

24 reinsure, or finance any investment in connection

25 with a project which the Corporation determines will
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1 pose an unreasonable or major environmental,

2 health, or safety hazard, or will result in the signifi3 cant degradation of national parks or similar pro4 tected areas.

5 (2) RESOURCE SUSTAINABLE DEVELOPMENT.—

6 The Corporation, in determining whether to provide

7 insurance, reinsurance, or financing for a project,

8 shall ensure that the project is consistent with the

9 goals set forth in section 7210 of this Act.

10 (3) ENVIRONMENTAL IMPACT STATEMENTS AND

11 ASSESSMENTS.—The requirements of section

12 7210(b) relating to environmental impact statements

13 and environmental assessments shall apply to any

14 investment which the Corporation insures, reinsures,

15 guarantees, or finances under this chapter in con16 nection with a project in a country.

17 (4) NOTIFICATION OF FOREIGN GOVERN18 MENTS.—Before finally providing insurance, reinsur19 ance, guarantees, or financing under this chapter for

20 any environmentally sensitive investment in connec21 tion with a project in a country, the Corporation

22 shall notify appropriate government officials of that

23 country of—

24 (A) all guidelines and other standards

25 adopted by the International Bank for Recon-
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1 struction and Development and any other inter2 national organization relating to the public

3 health or safety or the environment which are

4 applicable to the project; and

5 (B) to the maximum extent practicable,

6 any restriction under any law of the United

7 States relating to public health or safety or the

8 environment that would apply to the project if

9 the project were undertaken in the United

10 States.

11 The notification under the preceding sentence shall in12 clude a summary of the guidelines, standards, and restric13 tions referred to in subparagraphs (A) and (B).

14 (5) CONSIDERATION OF COMMENTS RE15 CEIVED.—Before finally providing insurance, rein16 surance, or financing for any investment subject to

17 paragraph (4), the Corporation shall take into ac18 count any comments it receives on the project in19 volved.

20 (d) HUMAN RIGHTS.—The Corporation shall take

21 into account in the conduct of its programs in a country,

22 in consultation with the Secretary of State, all available

23 information about observance of and respect for human

24 rights and fundamental freedoms in such country and the
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1 effect the operation of such programs will have on human

2 rights and fundamental freedoms in such country.

3 (e) WORKER RIGHTS.—

4 (1) LIMITATION ON OPIC ACTIVITIES.—The

5 Corporation may insure, reinsure, or finance a

6 project only if the country in which the project is to

7 be undertaken is taking steps to adopt and imple8 ment laws that extend internationally recognized

9 worker rights, as defined in section 502(a)(4) of the

10 Trade Act of 1974 (19 U.S.C. 2462(a)(4)), to work11 ers in that country (including any designated zone in

12 that country). The Corporation shall also include the

13 following language, in substantially the following

14 form, in all contracts which the Corporation enters

15 into with eligible investors to provide financial sup16 port under this chapter: ‘‘The investor agrees not to

17 take actions to prevent employees of the foreign en18 terprise from lawfully exercising their right of asso19 ciation and their right to organize and bargain col20 lectively. The investor further agrees to observe ap21 plicable laws relating to a minimum age for employ22 ment of children, acceptable conditions of work with

23 respect to minimum wages, hours of work, and occu24 pational health and safety, and not to use forced
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1 labor. The investor is not responsible under this

2 paragraph for the actions of a foreign government.’’.

3 (2) USE OF ANNUAL REPORTS ON WORKER

4 RIGHTS.—The Corporation shall, in making its de5 terminations under paragraph (1), use the reports

6 submitted to the Congress pursuant to section

7 505(c) of the Trade Act of 1974 (19 U.S.C.

8 2465(c)).

9 (3) WAIVER.—Paragraph (1) shall not prohibit

10 the Corporation from providing any insurance, rein11 surance, or financing with respect to a country if the

12 President determines that such activities by the Cor13 poration would be in the national economic interests

14 of the United States. Any such determination shall

15 be reported in writing to the Congress, together with

16 the reasons for the determination.

17 (f) HARM TO EMPLOYMENT IN THE UNITED

18 STATES.—

19 (1) REPLACEMENT OF UNITED STATES PRO20 DUCTION.—(A) The Corporation shall refuse to in21 sure, reinsure, or finance an investment if the Cor22 poration determines that such investment is likely to

23 cause such investor (or the sponsor of an investment

24 project in which such investor is involved) signifi25 cantly to reduce the number of the investor’s or
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1 sponsor’s employees in the United States because

2 the investor or sponsor is replacing his or her United

3 States production with production from such invest4 ment, and the production from such investment in5 volves substantially the same product for substan6 tially the same market as the investor’s or sponsor’s

7 United States production.

8 (B) If the Corporation determines that an in9 vestment is not likely to have the effects described

10 in subparagraph (A), the Corporation shall monitor

11 conformance with the representations made by the

12 investor on which the Corporation relied in making

13 that determination.

14 (2) REDUCTION OF EMPLOYEES IN THE UNITED

15 STATES.—The Corporation shall refuse to insure, re16 insure, or finance an investment if the Corporation

17 determines that such investment is likely to cause a

18 significant reduction in the number of employees in

19 the United States.

20 (3) EXPORT PROCESSING ZONES.—Notwith21 standing any other provision of law, the Corporation

22 shall refuse to insure, reinsure, or finance an invest23 ment for the purpose of establishing or developing in

24 a foreign country any export processing zone or des25 ignated area in which the tax, tariff, labor, environ-
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1 ment, and safety laws of that country do not apply,

2 in part or in whole, to activities carried out within

3 that zone or area, unless such assistance is not likely

4 to cause a loss of jobs within the United States as

5 determined in consideration of the restrictions con6 tained in paragraphs (1) and (2).

7 (g) PERFORMANCE REQUIREMENTS.—The Corpora8 tion shall refuse to insure, reinsure, or finance an invest9 ment which is subject to performance requirements which

10 would reduce substantially the positive trade benefits like11 ly to accrue to the United States from the investment.

12 (h) PROHIBITED TRADE PRACTICES.—

13 (1) PAYMENTS TO VIOLATORS BARRED.—No

14 payment may be made under any insurance or rein15 surance which is issued under this chapter on or

16 after April 24, 1978, for any loss occurring with re17 spect to a project, if the preponderant cause of such

18 loss was an act by the investor seeking payment

19 under this chapter, by a person possessing majority

20 ownership and control of the investor at the time of

21 the act, or by any agent of such investor or control22 ling person, and a court of the United States has en23 tered a final judgment that such act constituted a

24 violation of section 30A of the Securities Exchange
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1 Act of 1934 or section 104 of the Foreign Corrupt

2 Practices Act of 1977.

3 (2) REGULATIONS.—The Corporation shall have

4 in effect regulations setting forth appropriate condi5 tions under which any person who has been finally

6 determined by a court of the United States to have

7 violated section 30A of the Securities Exchange Act

8 of 1934 or section 104 of the Foreign Corrupt Prac9 tices Act of 1977 shall be suspended, for a period

10 of not more than 5 years, from eligibility to receive

11 any insurance, reinsurance, guarantee, financing, or

12 other financial support authorized by this chapter, if

13 that violation related to a project insured, reinsured,

14 guaranteed, financed, or otherwise supported by the

15 Corporation under this chapter.

16 (i) FRAUD OR MISREPRESENTATION.—No payment

17 may be made under any guarantee, insurance, or reinsur18 ance issued under this chapter for any loss arising out

19 of fraud or misrepresentation for which the party seeking

20 payment is responsible.

21 (j) PUBLIC HEARING.—The Board shall hold at least

22 one public hearing each year in order to afford an oppor23 tunity for any person to present views as to whether the

24 Corporation is carrying out its activities in accordance

25 with this chapter 1 and this section or whether any invest-
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1 ment in a particular country shall have been or shall be

2 extended insurance, reinsurance, or financing under this

3 chapter.

4 (k) RESTRICTIONS.—Restrictions in this or any other

5 Act to the government of a country do not apply with re6 spect to this title.

7 CHAPTER 2—TRADE AND DEVELOPMENT AGENCY

8 SEC. 5201. PURPOSES.

9 The Trade and Development Agency shall be an

10 agency of the United States under the foreign policy guid11 ance of the Secretary of State. The purpose of the Trade

12 and Development Agency is to promote United States pri13 vate sector participation in developing and middle-income

14 countries.

15 SEC. 5202. AUTHORITY TO PROVIDE ASSISTANCE.

16 (a) AUTHORITY.—The Director of the Trade and De17 velopment Agency is authorized to work with foreign coun18 tries to carry out the purposes of this chapter by providing

19 funds for feasibility studies, architectural and engineering

20 design, and other activities related to development projects

21 which provide opportunities for the use of United States

22 exports.

23 (b) USE OF FUNDS.—Funds under this chapter may

24 be used to provide support for feasibility studies for plan25 ning, development, and management of, and procurement
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1 for, bilateral and multilateral development projects, in2 cluding training activities undertaken in connection with

3 a project, for the purpose of promoting the use of United

4 States goods and services in such projects. Funds under

5 this chapter may also be used for architectural and engi6 neering design, including—

7 (1) concept design, which establishes the basic

8 technical and operational criteria for a project, such

9 as architectural drawings for a proposed facility,

10 evaluation of site constraints, procurement require11 ments, and equipment specifications; and

12 (2) detail design, which sets forth specific di13 mensions and criteria for structural, mechanical,

14 electrical, and architectural operations, and identi15 fies other resources required for project operations.

16 (c) INFORMATION DISSEMINATION.—

17 (1) The Trade and Development Agency shall

18 disseminate information about its project activities

19 to the private sector.

20 (2) Other agencies of the United States Govern21 ment shall cooperate with the Trade And Develop22 ment Agency in order for the Agency to provide

23 more effectively informational services to persons in

24 the private sector concerning trade and development
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1 and export promotion related to development

2 projects.

3 (d) NONAPPLICABILITY OF OTHER PROVISIONS.—

4 Funds made available to carry out this chapter may be

5 made available notwithstanding any other provision of law.

6 SEC. 5203. AVAILABILITY OF FUNDS.

7 Funds shall be available to carry out the provisions

8 of this chapter as authorized and appropriated to the

9 President each fiscal year.

10 CHAPTER 3—ROLE OF RELATED PROGRAMS

11 SEC. 5301. STATEMENT OF POLICY REGARDING ROLE OF

12 PUBLIC LAW 480 TITLE I PROGRAMS.

13 (1) Public Law 480 Title I programs provide an

14 important resource in the efforts of the United

15 States to support continued growth in the world

16 economy.

17 (2) By using the abundant agricultural produc18 tivity of the United States to enhance the food secu19 rity of developing countries, these programs com20 plement other international programs of the United

21 States to—

22 (A) help to combat world hunger and mal23 nutrition and their causes,

24 (B) promote broad-based, equitable, and

25 sustainable development,
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1 (C) expand international trade, and

2 (D) develop and expand export markets for

3 United States agricultural commodities.

4 (3) By fostering the demand for United States

5 agricultural commodities and helping to meet the

6 food needs of developing countries that have dif7 ficulty meeting those needs through commercial

8 channels, Public Law 480 title I programs are an in9 tegral part of United States efforts to encourage ex10 pansion of the world economy and the participation

11 of the United States private sector in that expan12 sion.

13 SEC. 5302. STATEMENT OF POLICY REGARDING ROLE OF

14 EXPORT-IMPORT BANK.

15 (1) While the Export-Import Bank of the United

16 States does not provide foreign assistance, its programs

17 can complement sustainable development programs in

18 helping to expand United States exports.

19 (2) The purpose of the Export-Import Bank of the

20 United States is to provide financing support for United

21 States exports, thereby creating and maintaining jobs in

22 the United States.

23 (3) The role of the Export-Import Bank of the United

24 States is an important factor in bolstering global free
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1 trade and fair trade, and its programs help to level the

2 global playing field in export financing.

3 (4) The Export-Import Bank of the United States is

4 an important supplement to the private sector’s export fi5 nancing capacities for creating and maintaining jobs.

6 (5) With one out of every six manufacturing jobs in

7 the United States dependent on exports, it is necessary

8 to promote trade with both existing and developing mar9 kets.

10 (6) The programs of the Export-Import Bank of the

11 United States serve to provide inroads for United States

12 exporters into developing country markets.

13 (7) The role of the Export-Import Bank of the United

14 States in providing trade and project finance supports

15 United States domestic employment and global economic

16 growth and development.

17 TITLE VI—ADVANCING DIPLOMACY

18 SEC. 6001. STATEMENT OF POLICY.

19 (1) Success in achieving the goals of this Act depends

20 above all on the skills of those who serve America in the

21 Department of State and other United States government

22 departments and agencies engaged in international pro23 grams.

24 (2) Diplomacy is the most cost-effective foreign policy

25 instrument for promoting American prosperity and safe-
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1 guarding United States security by managing crises and

2 preventing future conflict.

3 (3) United States leadership in addressing emerging

4 global challenges will depend increasingly on skillful diplo5 macy to build cooperative arrangements with major allies

6 and multilateral organizations that leverage our political

7 influence, and our economic, technical, military and hu8 manitarian assistance.

9 (4) Diplomacy is essential to the realization of each

10 of the five other Titles of this Act—

11 (A) Promoting Sustainable Development re12 quires integrated and coordinated efforts between

13 diplomats and aid specialists to deal with immediate

14 environmental, economic, and cultural challenges

15 and opportunities abroad while building the founda16 tion for long-term bilateral, regional and global co17 operation.

18 (B) Promoting Democracy requires foreign af19 fairs professionals in the Department of State and

20 other United States government departments and

21 agencies engaged in international programs to reach

22 out beyond traditional bilateral and multilateral rela23 tions to inform foreign publics about the virtues and

24 challenges of democracy and market economics and
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1 to promote human rights, democratic institution

2 building, and development of open, civil societies.

3 (C) Promoting Peace requires creative and sus4 tained diplomacy—backed by economic, technical,

5 humanitarian and military resources—to avert con6 flict, facilitate negotiated resolution of disputes, and

7 render peace processes irreversible; and to build re8 gimes to restrain proliferation, narcotics trafficking,

9 terrorism and other forms of criminal activity.

10 (D) Humanitarian Assistance requires dip11 lomats and other involved United States government

12 personnel to respond promptly to facilitate bilateral

13 relief, engage relevant multilateral organizations,

14 and ensure that relief programs do not become ob15 jects of political manipulation locally or among

16 donor agencies; at the same time, effective preven17 tive diplomacy can forestall costly political and mili18 tary disasters.

19 (E) Promoting Growth Through Trade and In20 vestment requires diplomats with advanced technical

21 knowledge, legal skills, and shrewd political judg22 ment to assist economic reform, develop commercial

23 opportunities, and structure regional and global

24 agreements to achieve more open markets and great25 er economic integration.
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1 (5) Advancing diplomacy in all of the above areas will

2 require—

3 (A) Funds that can be used flexibly by the

4 President to respond decisively to unforeseen oppor5 tunities and dangers and for structuring new multi6 lateral arrangements that can become the basis for

7 sustainable cooperation to prevent future crises and

8 solve long-term problems.

9 (B) Foreign assistance, public diplomacy

10 abroad, and a national consensus at home in support

11 of the goals of American foreign policy.

12 (C) Modern technology and infrastructure to

13 support foreign and civil service professionals who

14 must deal with international transactions that are

15 rising exponentially in volume, speed and complexity.

16 (D) Greater harmonization of our foreign af17 fairs institutions and instruments, with a view to

18 avoiding duplicative administrative structures, staffs

19 and programs.

20 TITLE VII—SPECIAL AUTHORITIES,

21 RESTRICTIONS ON ASSISTANCE, AND REPORTS

22 CHAPTER 1—SPECIAL AUTHORITIES

23 SEC. 7101. AUTHORITY TO TRANSFER BETWEEN ACCOUNTS.

24 (a) GENERAL TRANSFER AUTHORITY.—Whenever

25 the President determines it to be necessary for the pur-
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1 poses of this Act, not to exceed 10 per centum of the funds

2 made available to carry out any provision of this Act—

3 (1) may be transferred to, and consolidated

4 with, the funds in any other account or fund avail5 able to carry out any provision of this Act; and

6 (2) may be used for any of the purposes for

7 which funds in that account or fund may be used.

8 (b) LIMITATION ON AMOUNT OF INCREASE IN AN AC9 COUNT.—The total amount in the account or fund for the

10 benefit of which a transfer is made under subsection (a)

11 during any fiscal year may not be increased by more than

12 20 per centum of the amount of funds otherwise made

13 available for such account or fund.

14 (c) EXCEPTIONS.—

15 (1) The percentage limitations contained in

16 subsections (a) and (b) shall not be applicable with

17 regard to transfers of funds to carry out the provi18 sions of subchapter A of chapter 1 of title II or of

19 chapter 1 of title III.

20 (2) The authority of this section shall not be

21 used to transfer funds from amounts made available

22 to carry out the provisions of title I of this Act, ex23 cept that the authority of this section may be used

24 to transfer such funds for the purposes of section

25 8509 in an amount not to exceed 5 per centum of
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1 the amount of the funds made available for section

2 8509(a).

3 (d) NOTIFICATION TO CONGRESS.—The authority of

4 subsection (a) may be exercised only if the Committee on

5 Foreign Affairs and the Committee on Appropriations of

6 the House of Representatives and the Committee on For7 eign Relations and the Committee on Appropriations of

8 the Senate are notified in advance of the exercise of that

9 authority.

10 SEC. 7102. SPECIAL WAIVER AUTHORITY.

11 (a) AUTHORITY.—The President may authorize the

12 taking of any action (or the refraining from the taking

13 of any action) under this Act, any annual (or periodic)

14 foreign assistance authorization or appropriations Acts, or

15 the Arms Export Control Act without regard to any of

16 the provisions described in subsection (c) if he deter17 mines—

18 (1) in cases under the Arms Export Control

19 Act, that to do so is essential to the national inter20 ests of the United States; and

21 (2) in any other cases under such Acts, that to

22 do so is important to the national interests of the

23 United States.

24 (b) OTHER ACTS.—The President may authorize the

25 taking of any action (or the refraining from the taking
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1 of any action) under any other Act without regard to the

2 provisions described in paragraphs (1) and (2) of sub3 section (c), or of any annual (or periodic) foreign assist4 ance authorization or appropriations Acts, if the President

5 determines that to do so is important to the national inter6 est of the United States.

7 (c) LAWS WHICH MAY BE WAIVED.—The provisions

8 referred to in subsections (a) and (b) are—

9 (1) the provisions of this Act,

10 (2) the provisions of the Arms Export Control

11 Act,

12 (3) any other provisions of law that restrict the

13 authority to provide assistance, make sales or leases,

14 or take other actions (or refrain from taking ac15 tions) under the Acts in paragraphs (1) and (2), and

16 (4) any law relating to receipts and credits ac17 cruing to the United States, except for those provi18 sions of law contained in section 8551(a)(7).

19 (d) CONSULTATION WITH CONGRESS.—Before exer20 cising the authority granted in this section, the President

21 shall consult with, and shall provide a written policy jus22 tification to, the Committee on Foreign Affairs and the

23 Committee on Appropriations of the House of Representa24 tives and the Committee on Foreign Relations and the

25 Committee on Appropriations of the Senate.
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1 (e) NOTIFICATION TO CONGRESS.—A determination

2 under subsection (a) or (b) shall be effective only if the

3 President notifies the Speaker of the House of Represent4 atives and the chairman of the Committee on Foreign Re5 lations of the Senate, in writing, of that determination.

6 (f) ANNUAL CEILINGS.—

7 (1) IN GENERAL.—The authority of this section

8 may not be used in any fiscal year to authorize—

9 (A) more than $1,000,000,000 in sales or

10 leases to be made under the Arms Export Con11 trol Act;

12 (B) the use of more than $500,000,000 of

13 funds made available for use under this Act;

14 and

15 (C) the use of more than $100,000,000 of

16 foreign currencies accruing under this Act or

17 any other law.

18 (2) SALES UNDER THE ARMS EXPORT CONTROL

19 ACT.—If the authority of this section is used both to

20 authorize a sale or lease under the Arms Export

21 Control Act and to authorize funds to be used under

22 this Act with respect to the financing of that sale or

23 lease, then the use of the funds shall be counted

24 against the limitation in paragraph (1)(B) and the

25 portion, if any, of the sale or lease which is not so
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1 financed shall be counted against the limitation in

2 paragraph (1)(A).

3 (3) LEASES.—For purposes of paragraph

4 (1)(A) the replacement cost, less any depreciation in

5 the value, of the defense articles authorized to be

6 leased shall be counted against the limitation in that

7 paragraph.

8 (4) COUNTRY LIMITS.—(A) Not more than

9 $100,000,000 of the $500,000,000 limitation pro10 vided in paragraph (1)(B) may be allocated to any

11 one country in any fiscal year unless that country is

12 a victim of active aggression.

13 (B) Not more than $750,000,000 of the aggre14 gate limitation of $1,500,000,000 provided in para15 graphs (1)(A) and (1)(B) may be allocated to any

16 one country in any fiscal year.

17 SEC. 7103. UNANTICIPATED CONTINGENCIES.

18 (a) AUTHORITY.—Notwithstanding any other provi19 sion of law, the President is authorized to use funds made

20 available to carry out any provision of this Act in order

21 to furnish, for any unanticipated contingency, assistance

22 or contributions authorized by any provision of this Act

23 in accordance with the provisions applicable to the furnish24 ing of such assistance or contributions.
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1 (b) ANNUAL CEILING.—The authority of this section

2 may not be used to authorize the use of more than

3 $100,000,000 during any fiscal year.

4 (c) REPORT TO CONGRESS.—The President shall re5 port promptly to the Speaker of the House of Representa6 tives and to the Committee on Foreign Relations and the

7 Committee on Appropriations of the Senate each time the

8 authority of this section is exercised.

9 (d) PROHIBITION ON GIFTS.—Funds used under the

10 authority of this section may not be used to pay for any

11 gifts to any official of any foreign government.

12 SEC. 7104. ASSISTANCE FOR LAW ENFORCEMENT AGEN13 CIES.

14 (a) STATEMENT OF POLICY.—

15 (1) In many countries, law enforcement agen16 cies may lag behind other institutions in their devel17 opment as democratic organizations and in their

18 ability to contribute to civilian order and may lack

19 autonomy from military authorities.

20 (2) Absent external assistance and encourage21 ment, such agencies may, in fact, undermine civilian

22 democratic rule.

23 (3) United States and international assistance

24 to these agencies may therefore be critical for the

25 support of fragile and emerging democracies.
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1 (b) USES OF ASSISTANCE.—In addition to assistance

2 provided in support of the functions of law enforcement

3 agencies under chapter 4 of title III, assistance may be

4 provided under other provisions of this Act in support of

5 the functions of law enforcement agencies only:

6 (1) to reinforce the civilian democratic role of

7 agencies through, to the extent practicable as part of

8 a larger effort to support the development of the ad9 ministration of justice in the country—

10 (A) programs to enhance professionalism

11 (including programs to improve investigative

12 and forensic capabilities, to enhance protection

13 of participants in judicial cases, and to improve

14 administrative and management functions);

15 (B) contacts with counterparts in estab16 lished democracies; and

17 (C) programs designed to enhance respect

18 for human rights and understanding of prin19 ciples of civilian control in a democratic society;

20 (2) to enhance the practical accountability of

21 law enforcement agencies to civil justice institutions;

22 (3) to improve penal institutions and the reha23 bilitation of offenders when doing so is considered

24 part of a larger administration of justice program;
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1 (4) to assist a country which has a democratic

2 tradition, does not have standing armed forces, and

3 does not engage in a consistent pattern of gross vio4 lations of internationally recognized human rights;

5 (5) for maritime law enforcement and other

6 maritime skills, including training;

7 (6) to protect and maintain wildlife habitats

8 and to develop sound wildlife management and plant

9 conservation programs;

10 (7) to improve the functioning of customs agen11 cies, exclusive of traditional law enforcement activi12 ties;

13 (8) for assistance to police forces in connection

14 with their participation in the regional security sys15 tem of the Eastern Caribbean; and

16 (9) to meet the challenges described in section

17 2102(a)(3).

18 (c) OTHER ASSISTANCE.—Funds made available to

19 carry out the provisions of title I, and chapter 2 of title

20 IV (insofar as such funds are used for reconstruction ac21 tivities), may be used in support of law enforcement func22 tions only pursuant to subsections (b)(1), (2), and (6) of

23 this section.
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1 SEC. 7105. TERMINATION EXPENSES.

2 (a) IN GENERAL.—Funds made available under this

3 Act, the former authority of the Foreign Assistance Act

4 of 1961, the former authority of section 23 of the Arms

5 Export Control Act, or other predecessor legislation shall

6 remain available for obligation for a period not to exceed

7 8 months from the date of any termination of assistance

8 under such Acts for the necessary expenses of winding up

9 programs related to such termination and may remain

10 available until expended. Funds obligated under the au11 thority of such Acts prior to the effective date of the termi12 nation of assistance may remain available for expenditure

13 for the necessary expenses of winding up programs related

14 to such termination notwithstanding any provision of law

15 restricting the expenditure of funds. In order to ensure

16 the effectiveness of such assistance, such expenses for or17 derly termination of programs may include the obligation

18 and expenditure of funds to complete the training or stud19 ies outside their countries of origin of students whose

20 course of study or training program began before assist21 ance was terminated.

22 (b) LIABILITY TO CONTRACTORS.—For the purpose

23 of making an equitable settlement of termination claims

24 under extraordinary contractual relief standards, the

25 President is authorized to adopt as a contract or other

26 obligation of the United States Government, and assume
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1 (in whole or in part) any liabilities arising thereunder, any

2 contract with a United States or third-country contractor

3 that had been funded with assistance under such Acts

4 prior to the termination of assistance.

5 (c) TERMINATION EXPENSES.—Amounts certified as

6 having been obligated for assistance subsequently termi7 nated by the President, or pursuant to any provision of

8 law, shall continue to remain available and may be

9 reobligated to meet any necessary expenses arising from

10 the termination of such assistance.

11 (d) GUARANTY PROGRAMS.—Provisions of this or

12 any other Act requiring the termination of assistance

13 under this or any other Act shall not be construed to re14 quire the termination of guarantee commitments that were

15 entered into prior to the effective date of the termination

16 of assistance.

17 (e) RELATION TO OTHER PROVISIONS.—Unless spe18 cifically made inapplicable by another provision of law, the

19 provisions of this section shall be applicable to the termi20 nation of assistance pursuant to any provision of law.

21 SEC. 7106. EXEMPTION OF ASSISTANCE THROUGH NON22 GOVERNMENTAL ORGANIZATIONS FROM RE23 STRICTIONS.

24 (a) RESTRICTIONS NOT APPLICABLE.—Subject to

25 subsection (c), restrictions contained in this or any other
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1 Act with respect to assistance for a country shall not be

2 construed to restrict assistance in support of programs of

3 nongovernmental organizations or programs of inter4 national organizations or arrangements.

5 (b) NATIONAL INTEREST CRITERIA.—The President

6 shall take into consideration, in any case in which a re7 striction on assistance would be applicable but for this sec8 tion, whether assistance for programs of nongovernmental

9 organizations or programs of international organizations

10 or arrangements is in the national interest of the United

11 States.

12 (c) NOTICE TO CONGRESS.—Whenever the authority

13 of this section is used to furnish assistance for a program

14 of a nongovernmental organization or of an international

15 organization or arrangement, the President shall notify

16 the Committee on Foreign Affairs and the Committee on

17 Appropriations of the House of Representatives and the

18 Committee on Foreign Relations and the Committee on

19 Appropriations of the Senate. Such notification shall de20 scribe the program assisted, the assistance provided, and

21 the reasons for furnishing such assistance.

22 SEC. 7107. EXEMPTION OF TRAINING ACTIVITIES FROM

23 PROHIBITIONS.

24 Provisions of this or any other Act shall not be con25 strued to prohibit assistance for any training activity
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1 funded under this Act for a country as long as that coun2 try has a democratically elected government and the as3 sistance is otherwise consistent with section 7201(a)(1),

4 section 7201(a)(2) and section 7201(a)(5).

5 SEC. 7108. NONAPPLICABILITY TO DEFENSE ASSISTANCE

6 OF CERTAIN NEUTRALITY ACT PROVISIONS.

7 The functions authorized under this Act may be per8 formed without regard to such provisions as the President

9 may specify of the Neutrality Act of 1939.

10 SEC. 7109. EXEMPTION FROM PROHIBITIONS FOR ASSIST11 ANCE TO ADDRESS CERTAIN SPECIAL NEEDS.

12 (a) EXEMPTION.—Unless expressly provided to the

13 contrary, provisions of this or any other Act, including

14 provisions in previously enacted legislation, shall not be

15 construed to prohibit the following activities:

16 (1) meeting the needs of individuals with dis17 abilities;

18 (2) addressing the needs of displaced children;

19 (3) child survival activities;

20 (4) the prevention and control of acquired im21 mune deficiency syndrome (AIDS);

22 (5) environmentally sound, sustainable resource

23 management, and more efficient energy systems;

24 (6) reconstruction as a result of natural or

25 manmade disasters; or
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1 (7) helping to reduce excessive population

2 growth rates.

3 (b) EXCEPTIONS.—Subsection (a) does not apply to

4 governments of countries to which assistance is prohibited

5 under paragraphs (2) and (5) of section 7201(a).

6 SEC. 7110. AUTHORITY TO CONDUCT REIMBURSABLE PRO7 GRAMS.

8 (a) GENERAL AUTHORITY.—Whenever the President

9 considers it consistent with and within the limitations of

10 this Act, any agency of the United States Government is

11 authorized to furnish services and articles on an advance12 of-funds or reimbursement basis to friendly countries,

13 international organizations and arrangements, and non14 governmental organizations and may contract in advance

15 of appropriations or reimbursement for such purposes.

16 (b) PERSONAL SERVICE CONTRACTS.—When any

17 agency of the United States Government provides services

18 on an advance-of-funds or reimbursable basis under this

19 section, such agency may contract with individuals for per20 sonal service abroad or in the United States to perform

21 such services or to replace officers or employees of the

22 United States Government in a manner otherwise per23 mitted by law (or Office of Management and Budget Cir24 cular A–76 or any successor circular) who are assigned

25 by the agency to provide such services. Such individuals
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1 shall not be regarded as employees of the United States

2 Government for the purpose of any law administered by

3 the Office of Personnel Management.

4 (c) LIMITATIONS ON ASSISTANCE NOT APPLICA5 BLE.—Limitations in this or any other Act on assistance

6 do not apply with respect to this section.

7 (d) USE OF PAYMENTS.—Advances and reimburse8 ments received under this section may either be credited

9 to the currently applicable appropriation, account, or fund

10 of the agency concerned or shall be available until ex11 pended.

12 SEC. 7111. DRAWDOWN AUTHORITY.

13 (a) UNFORESEEN EMERGENCIES.—If the President

14 determines that—

15 (1) an unforeseen emergency exists which re16 quires immediate military assistance to a foreign

17 country or international organization, and

18 (2) the emergency requirement cannot be met

19 under the authority of the Arms Export Control Act

20 or any other law except this section,

21 the President may direct, for the purposes of this Act, the

22 drawdown of articles and services, of an aggregate value

23 not to exceed $100,000,000 in any fiscal year, from the

24 inventory and resources of the Department of Defense.
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1 (b) SPECIAL CIRCUMSTANCES.—If the President de2 termines that it is in the national interest of the United

3 States to do so, the President may direct the drawdown

4 of articles and services, of an aggregate value not to ex5 ceed $150,000,000 in any fiscal year, from the inventory

6 and resources of any agency of the United States Govern7 ment for the purposes and under the authorities of—

8 (1) chapter 4 of title III of this Act;

9 (2) chapter 1 of title IV of this Act; or

10 (3) chapter 2 of title IV of this Act.

11 (c)(1) The authority of this section may be exercised

12 only if the Committee on Foreign Affairs and the Commit13 tee on Appropriations of the House of Representatives and

14 the Committee on Foreign Relations and the Committee

15 on Appropriations of the Senate are notified in advance

16 of the exercise of that authority.

17 (2) CONTINUING INFORMATION.—The President

18 shall keep the Congress fully and currently informed of

19 all articles and services provided under this section.

20 (d) AUTHORIZATION OF APPROPRIATIONS.—There

21 are authorized to be appropriated to the President such

22 sums as may be necessary to reimburse the applicable ap23 propriation, fund, or account for articles and services pro24 vided under this section.
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1 SEC. 7112. INTEREST ACCRUING TO NONGOVERNMENTAL

2 ORGANIZATIONS.

3 Upon the approval of the President, a nongovern4 mental organization may place in an interest bearing ac5 count—

6 (1) funds made available on a grant basis under

7 this Act (or predecessor legislation); and

8 (2) local currencies which accrue to that organi9 zation as a result of grant assistance provided under

10 this Act (or predecessor legislation) or assistance

11 under titles I through III of the Agricultural Trade

12 Development and Assistance Act of 1954, section

13 416(b) of the Agricultural Act of 1949, or the Food

14 for Progress Act of 1985.

15 Any interest so earned may be retained by the nongovern16 mental organization and used for the purpose for which

17 the assistance was provided to that organization, which

18 may include support for an endowment.

19 SEC. 7113. DEVELOPMENT EDUCATION.

20 The President may use funds made available for sus21 tainable development assistance under this Act to support

22 development education programs, with emphasis on those

23 conducted by private voluntary organizations and coopera24 tives, in order to assist in the education of United States

25 citizens about developing countries, the development proc26 ess, the interdependence of developed and developing coun-
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1 tries, and the importance to the United States of develop2 ing countries.

3 SEC. 7114. STRENGTHENING THE CAPACITY OF NON4 GOVERNMENTAL ORGANIZATIONS, INCLUD5 ING RESEARCH AND EDUCATIONAL INSTITU6 TIONS.

7 The President may use funds made available for as8 sistance under this Act to furnish assistance to nongovern9 mental organizations, including research and educational

10 institutions, in the United States and abroad for the pur11 pose of strengthening their capacity to develop and carry

12 out programs concerned with the economic and social de13 velopment of developing countries.

14 SEC. 7115. VIOLATIONS OF INTERNATIONAL HUMANI15 TARIAN LAW.

16 (a) AUTHORITY FOR USE OF FUNDS.—The President

17 may use funds made available to carry out the purposes

18 of chapters 1 and 4 of title III of this Act to support ac19 tivities of international tribunals, commissions, or panels

20 to investigate or prosecute persons responsible for geno21 cide, crimes against humanity, and other violations of

22 international humanitarian law.

23 (b) DRAWDOWN AUTHORITY.—If the President de24 termines that doing so is important to support the activi25 ties described in subsection (a), the President may direct
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1 the drawdown of articles and services, of an aggregate

2 value not to exceed $25,000,000 in any fiscal year, from

3 the inventory and resources of any agency of the United

4 States.

5 (c) REIMBURSEMENT.—There are authorized to be

6 appropriated to the President such sums as may be nec7 essary to reimburse the applicable appropriation, fund, or

8 account for articles and services provided under this sub9 section (b).

10 SEC. 7116. LAWS RELATING TO CONTRACTS AND GOVERN11 MENT EXPENDITURES.

12 Whenever the President determines it to be in fur13 therance of the purposes of this Act, the functions author14 ized under this Act may be performed without regard to

15 such provisions of law regulating the making, perform16 ance, amendment, or modification of contracts and the ex17 penditure of funds of the United States Government as

18 the President may specify, except for those provisions con19 tained in section 8551(a)(7) of this Act.

20 SEC. 7117. TRANSPORTATION CHARGES INCURRED BY THE

21 RED CROSS AND NONGOVERNMENTAL ORGA22 NIZATIONS.

23 In order to further the efficient use of United States

24 voluntary contributions for development and for relief and

25 rehabilitation in furtherance of the purposes of this Act,
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1 the President may use funds made available for assistance

2 under this Act, to pay transportation charges on ship3 ments by the American National Red Cross and by United

4 States nongovernmental organizations.

5 CHAPTER 2—RESTRICTIONS ON ASSISTANCE

6 SEC. 7201. INELIGIBLE COUNTRIES.

7 (a) Restrictions.—Except as provided in subsection

8 (b), assistance under this Act may not be furnished to the

9 government of a country that is:

10 (1) COMMUNIST COUNTRIES.—A communist

11 country, as designated under subsection (d).

12 (2) HUMAN RIGHTS VIOLATORS.—A country de13 scribed in subsection (e).

14 (3) EXPROPRIATION OF UNITED STATES PROP15 ERTY.—A country whose government—

16 (A) has on or after January 1, 1962—

17 (i) expropriated the property of any

18 United States person,

19 (ii) repudiated or nullified any con20 tract with any United States person, or

21 (iii) taken any other action (such as

22 discriminatory taxes or other exactions)

23 which has the effect of seizing ownership

24 or control of the property of any United

25 States person, and
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1 (B) has not within a reasonable period of

2 time provided adequate and effective compensa3 tion or is not engaged in good faith efforts to

4 negotiate a settlement, if the United States per5 son has exhausted host country legal and other

6 formal remedies.

7 (4) MILITARY COUPS.—A country whose duly8 elected Head of Government is deposed by military

9 coup or decree unless subsequent to the military

10 coup or decree a democratically-elected government

11 has taken office.

12 (5) TERRORIST COUNTRIES.—A country whose

13 government the President determines repeatedly pro14 vides support for acts of international terrorism.

15 (6) MAJOR ILLICIT DRUG PRODUCING OR

16 MAJOR DRUG TRANSIT COUNTRIES.—A country de17 scribed in section 7206.

18 (7) COUNTRIES IN ARREARS.—A country that

19 is more than one year in arrears to the United

20 States Government on any payment of interest or

21 principal on any loan made or credit extended under

22 this Act, the Arms Export Control Act, or the

23 former authorities of the Foreign Assistance Act of

24 1961.

25 (b) EXCEPTIONS.—
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1 (1) IN GENERAL.—Funds may be obligated and

2 expended for assistance restricted by subsection (a),

3 or other provisions of law that restrict assistance to

4 countries, under any of the following circumstances:

5 (A) NATIONAL INTEREST.—The President

6 determines that the furnishing of such assist7 ance is important to the national interests of

8 the United States.

9 (B) ALLEVIATING SUFFERING RESULTING

10 FROM A DISASTER.—The assistance is for the

11 alleviation of suffering resulting from a natural

12 or manmade disaster.

13 (C) DIRECTLY BENEFITTING THE

14 NEEDY.—The assistance will directly benefit the

15 needy people in the country.

16 (D) REFUGEES AND DISPLACED PER17 SONS.—The assistance is for the purposes de18 scribed in section 4101(b).

19 (E) PROMOTING HUMAN RIGHTS AND DE20 MOCRACY.—The assistance will be furnished

21 through nongovernmental organizations to di22 rectly promote increased respect for internation23 ally recognized human rights and the develop24 ment of democracy.
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1 (2) With respect to the restrictions imposed by

2 subsection (g) or any other provision of law to which

3 this subsection applies, references in this subsection

4 to furnishing assistance shall be deemed to include

5 the taking of other action that, but for this sub6 section, would be restricted by such provision.

7 (c) REPORT TO CONGRESS.—Assistance restricted by

8 subsection (a) may not be provided under subsection (b)

9 until the President has submitted to the Speaker of the

10 House of Representatives and the chairman of the Com11 mittee on Foreign Relations of the Senate, a report with

12 respect to such assistance. Any such report shall include

13 a detailed explanation of the assistance to be provided, in14 cluding the estimated dollar amount of such assistance,

15 and an explanation of how the assistance meets the cri16 teria specified in subsection (b).

17 (d) COMMUNIST COUNTRY LIST.—

18 (1) ESTABLISHMENT.—The President shall des19 ignate those countries that are communist countries

20 for purposes of subsection (a)(1).

21 (2) PUBLICATION OF LIST.—The initial list of

22 countries designated pursuant to this subsection

23 shall be published in the Federal Register and shall

24 be provided to the Congress. Thereafter, any addi-
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1 tions to or deletions from such list shall be similarly

2 published and provided.

3 (3) REMOVAL OF COUNTRIES FROM THE LIST;

4 EXEMPTIONS.—The President may remove a country

5 from the communist country list established pursu6 ant to this section, or may exempt a listed country

7 from the application of subsection (a)(1) or other

8 provisions of law that reference subsection (a)(1), if

9 the President promptly reports such removal or ex10 emption to the Speaker of the House of Representa11 tives and the chairman of the Committee on Foreign

12 Relations of the Senate.

13 (e) HUMAN RIGHTS VIOLATORS.—

14 (1) INELIGIBILITY.—Subsection (a)(2) shall

15 apply to any country the government of which en16 gages in a consistent pattern of gross violations of

17 internationally recognized human rights.

18 (2) MATTERS TO BE CONSIDERED.—In imple19 menting subsection (a)(2), consideration shall be

20 given to the following:

21 (A) The relevant findings of appropriate

22 international organizations and nongovern23 mental organizations.

24 (B) The extent of cooperation by the gov25 ernment in question in permitting an
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1 unimpeded investigation by indigenous non2 governmental organizations, other nongovern3 mental organizations, and international organi4 zations (such as the International Committee of

5 the Red Cross), of alleged violations of inter6 nationally recognized human rights.

7 (C) Specific actions that have been taken

8 by the President or the Congress relating to the

9 human rights practices of the government in

10 question.

11 (D) The likely effect that a determination

12 of ineligibility under this subsection is expected

13 to have on the human rights process of the

14 country concerned.

15 (f) TERRORIST COUNTRIES.—The President shall

16 promptly report to the Speaker of the House of Represent17 atives and the chairman of the Committee on Foreign Re18 lations of the Senate the rescission of a determination that

19 the government of a country repeatedly provides support

20 for acts of international terrorism.

21 (g) RELATED RESTRICTIONS ON ASSISTANCE.—

22 (1) HUMAN RIGHTS VIOLATORS.—Subsection

23 (a)(2) shall be deemed to prohibit, in addition to the

24 furnishing of assistance under this Act—
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1 (A) sales of defense articles, defense serv2 ices, or design and construction services under

3 the Arms Export Control Act;

4 (B) licenses under section 38 of the Arms

5 Export Control Act with respect to the export

6 of defense articles or defense services to or for

7 the armed forces, police, intelligence, or other

8 internal security forces of a foreign country;

9 and

10 (C) licenses required under the Export Ad11 ministration Act of 1979 for the export of crime

12 control and detection instruments and equip13 ment.

14 (2) TERRORIST COUNTRIES.—Subsection (a)(5)

15 shall be deemed to prohibit, in addition to the fur16 nishing of assistance under this Act, the furnishing

17 of assistance under the Agricultural Trade Develop18 ment and Assistance Act of 1954 and the Peace

19 Corps Act, and the provision of loans, guaranties,

20 and insurance under the Export-Import Bank Act of

21 1945.

22 (3) MAJOR ILLICIT DRUG PRODUCING AND

23 MAJOR DRUG TRANSIT COUNTRIES.—

24 (A) Subsection (a)(6) shall be deemed to

25 prohibit, in addition to the furnishing of assist-
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1 ance under this Act, (i) sales under the Arms

2 Export Control Act, (ii) the provision of agri3 cultural commodities other than food under the

4 Agricultural Trade Development and Assistance

5 Act of 1954, and (iii) loans, guarantees and in6 surance under the Export-Import Bank Act of

7 1945.

8 (B) Notwithstanding subparagraph (A),

9 subsection (a)(6) shall not be deemed to pro10 hibit (i) disaster relief assistance, refugee as11 sistance or assistance that involves the provi12 sion of food (including monetization of food) or

13 medicine (including any such assistance pro14 vided under title IV), and (ii) assistance for

15 narcotics education and awareness activities.

16 (C) With respect to any country for which

17 assistance is prohibited under section (a)(6),

18 the President should instruct the United States

19 Executive Director of the International Bank

20 for Reconstruction and Development, the Unit21 ed States Executive Director of the Inter22 national Development Association, the United

23 States Executive Director of the Inter-American

24 Development Bank, and the United States Ex25 ecutive Director of the Asian Development
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1 Bank to vote, during the period in which assist2 ance is prohibited under subsection (a)(6),

3 against any loan or other utilization of the

4 funds of their respective institution to or for

5 any major illicit drug producing country or

6 major drug-transit country, except as provided

7 in subsection (b).

8 SEC. 7202. IMPACT OF FOREIGN ASSISTANCE PROGRAMS

9 ON JOBS IN THE UNITED STATES.

10 Funds made available to carry out the provisions of

11 this Act may not be made available to provide—

12 (1) any financial incentive to a business enter13 prise located in the United States for the purpose of

14 inducing that enterprise to relocate outside the Unit15 ed States if such incentive or inducement is likely to

16 reduce the number of individuals employed in the

17 United States by that enterprise because that enter18 prise would replace production in the United States

19 with production outside the United States;

20 (2) assistance for the purpose of establishing or

21 developing in a foreign country any export process22 ing zone or designated area in which the tax, tariff,

23 labor, environment, and safety laws of that country

24 do not apply, in part or in whole, to activities car25 ried out within that zone or area, unless the Presi-
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1 dent determines and certifies that such assistance is

2 not likely to cause a loss of jobs within the United

3 States; or

4 (3) assistance for any project or activity that

5 contributes to the violation of internationally recog6 nized workers rights (as defined in section 502(a)(4)

7 of the Trade Act of 1974) of workers in the recipi8 ent country, including in any designated zone or

9 area in that country.

10 In recognition that the application of paragraph (3) should

11 be commensurate with the level of development of the re12 cipient country and sector, that paragraph does not pre13 clude assistance for the informal sector in such country,

14 for microenterprises and small-scale enterprises, or for

15 small-holder agriculture.

16 SEC. 7203. FAMILY PLANNING ACTIVITIES.

17 Funds made available to carry out this Act may not

18 be—

19 (1) used to coerce any person to practice abor20 tions; or

21 (2) used to pay for the performance of involun22 tary sterilizations or to coerce or provide any finan23 cial incentive to any person to undergo sterilizations.
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1 SEC. 7204. COMPETITION WITH UNITED STATES EXPORTS.

2 In determining whether to provide assistance under

3 this Act, the President should take into consideration

4 whether such assistance would be furnished for direct sup5 port for any project or activity that is specifically designed

6 to increase exports of any agricultural, textile, or apparel

7 commodity from a developing country where such ex8 ports—

9 (1) would be in direct competition with United

10 States exports, and

11 (2) can reasonably be expected to cause sub12 stantial injury to United States exporters of the

13 same or substantially similar commodity.

14 SEC. 7205. NUCLEAR NONPROLIFERATION.

15 (a) NUCLEAR ENRICHMENT TRANSFERS.—

16 (1) Except as provided in paragraph (2) of this

17 subsection, no funds made available to carry out the

18 provisions of this Act may be used for the purpose

19 of providing assistance, to any country that, on or

20 after the date of enactment of the International Se21 curity Assistance Act of 1977, delivers nuclear en22 richment equipment, materials, or technology to a

23 nonnuclear weapon state or, if a nonnuclear weapon

24 state, receives such equipment, materials, or tech25 nology from any other country, unless before such

26 delivery—
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1 (A) the supplying country and receiving

2 country have reached agreement to place all

3 such equipment, materials, or technology, upon

4 delivery, under multilateral auspices and man5 agement when available; and

6 (B) the recipient country has entered into

7 an agreement with the International Atomic

8 Energy Agency to place all such equipment,

9 materials, technology, and all nuclear fuel and

10 facilities in such country under the safeguards

11 system of such Agency.

12 (2)(A) Notwithstanding paragraph (1) of this

13 subsection, the President may furnish assistance

14 which would otherwise be prohibited under such sub15 section if he determines and certifies in writing to

16 the Speaker of the House of Representatives and the

17 Committee on Foreign Relations of the Senate

18 that—

19 (i) the termination of such assistance

20 would have a serious adverse effect on vital

21 United States interests; and

22 (ii) the President has received reliable as23 surances that the country in question will not

24 acquire or develop nuclear weapons or assist

25 other nations in doing so.
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1 A certification under subparagraph (A) of this para2 graph shall set forth the reasons supporting such de3 termination in each particular case.

4 (B) A certification under subparagraph (A) of

5 this paragraph shall take effect on the date on which

6 the certification is received by the Congress. How7 ever, if, within 30 calendar days after receiving this

8 certification, the Congress adopts a joint resolution

9 stating in substance that the Congress disapproves

10 the furnishing of assistance pursuant to the certifi11 cation, then upon the adoption of that resolution the

12 certification shall cease to be effective and all deliv13 eries of assistance furnished under the authority of

14 that certification shall be suspended immediately.

15 (C) Any joint resolution under this paragraph

16 shall be considered in the Senate in accordance with

17 the provisions of section 601(b) of the International

18 Security Assistance and Arms Export Control Act of

19 1976.

20 (D) For the purpose of expediting the consider21 ation and adoption of joint resolutions under this

22 paragraph, a motion to proceed to the consideration

23 of any such resolution after it has been reported by

24 the appropriate committee shall be treated as highly

25 privileged in the House of Representatives.
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1 (b) NUCLEAR REPROCESSING TRANSFERS, ILLEGAL

2 EXPORTS FOR NUCLEAR EXPLOSIVE DEVICES.—

3 (1) Except as provided in paragraph (2) of this

4 subsection, no funds made available to carry out the

5 provisions of this Act may be used for the purpose

6 of providing assistance to any country that—

7 (A) on or after the date of enactment of

8 the International Security Assistance Act of

9 1977, delivers nuclear reprocessing equipment,

10 materials, or technology to a nonnuclear weap11 on state or, if a nonnuclear weapon state, re12 ceives such equipment, materials, or technology

13 from any other country (except for the transfer

14 of reprocessing technology associated with the

15 investigation, under international evaluation

16 programs in which the United States partici17 pates, or technologies which are alternatives to

18 pure plutonium reprocessing); or

19 (B) is a nonnuclear-weapon state which, on

20 or after the date of enactment of the Inter21 national Security and Development Cooperation

22 Act of 1985, exports illegally or attempts to ex23 port illegally from the United States any mate24 rial, equipment, or technology which would con25 tribute significantly to the ability of such coun-
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1 try to manufacture a nuclear explosive device, if

2 the President determines that the material,

3 equipment, or technology was to be used by

4 such country in the manufacture of a nuclear

5 explosive device; for purposes of this subpara6 graph, an export or attempted export by a per7 son who is an agent of, or is otherwise acting

8 on behalf of or in the interests of, a country

9 shall be considered to be an export or at10 tempted export by that country.

11 (2) Notwithstanding paragraph (1) of this sub12 section, the President may furnish assistance which

13 would otherwise be prohibited under that paragraph

14 if the President determines and certifies in writing

15 to the Speaker of the House of Representatives and

16 the Committee on Foreign Relations of the Senate

17 that the termination of such assistance would be se18 riously prejudicial to the achievement of United

19 States nonproliferation objectives or otherwise jeop20 ardize the common defense and security. The Presi21 dent shall transmit with such certification a state22 ment setting forth the specific reasons therefor.

23 (3)(A) A certification under paragraph (2) of

24 this subsection shall take effect on the day on which

25 the certification is received by the Congress. How-
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1 ever, if, within 30 calendar days after receiving this

2 certification, the Congress adopts a joint resolution

3 stating in substance that the Congress disapproves

4 the furnishing of assistance pursuant to the certifi5 cation, then upon the adoption of that resolution the

6 certification shall cease to be effective and all deliv7 eries of assistance furnished under the authority of

8 that certification shall be suspended immediately.

9 (B) Any joint resolution under this paragraph

10 shall be considered in the Senate in accordance with

11 the provisions of section 601(b) of the International

12 Security Assistance and Arms Export Control Act of

13 1976.

14 (C) For the purpose of expediting the consider15 ation and adoption of joint resolutions under this

16 paragraph, a motion to proceed to the consideration

17 of any such resolution after it has been reported by

18 the appropriate committee shall be treated as highly

19 privileged in the House of Representatives.

20 (c) TRANSFERS OF NUCLEAR EXPLOSIVE DEVICES

21 AND NUCLEAR DETONATIONS.—

22 (1) Except as provided in paragraphs (2) and

23 (3) of this subsection, no funds made available to

24 carry out the provisions of this Act may be used for

25 the purpose of providing assistance to any country
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1 that, on or after the date of enactment of the Inter2 national Security Assistance Act of 1977—

3 (A) transfers a nuclear explosive device to

4 a nonnuclear-weapon state, or

5 (B) is a nonnuclear-weapon state and ei6 ther—

7 (i) receives a nuclear explosive device,

8 or

9 (ii) detonates a nuclear explosive de10 vice.

11 (2)(A) Notwithstanding paragraph (1) of this

12 subsection, the President may, for a period of not

13 more than 30 days of continuous session, furnish as14 sistance which would otherwise be prohibited under

15 paragraph (1) of this subsection if, before furnishing

16 such assistance, the President transmits to the

17 Speaker of the House of Representatives, and to the

18 Chairman of the Committee on Foreign Relations of

19 the Senate, a certification that the President has de20 termined that an immediate termination of assist21 ance to that country would be detrimental to the na22 tional security of the United States. Not more than

23 one such certification may be transmitted for a

24 country with respect to the same detonation, trans25 fer, or receipt of a nuclear explosive device.
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1 (B) If the President transmits a certification to

2 the Congress under subparagraph (A), a joint reso3 lution which would permit the President to exercise

4 the waiver authority of subparagraph (3) of this

5 subsection shall, if introduced in either House within

6 30 days of continuous session after the Congress re7 ceives this certification, be considered in the Senate

8 and House of Representatives in accordance with

9 subparagraphs (C) and (D) of this paragraph.

10 (C) Any joint resolution under this paragraph

11 shall be considered in the Senate in accordance with

12 the provisions of section 601(b) of the International

13 Security Assistance and Arms Export Control Act of

14 1976.

15 (D) For the purpose of expediting the consider16 ation and adoption of a joint resolution under this

17 paragraph, a motion to proceed to the consideration

18 of such a joint resolution after it has been reported

19 by the appropriate committee shall be treated as

20 highly privileged in the House of Representatives.

21 (E) For purposes of this paragraph, the term

22 ‘‘joint resolution’’ means a joint resolution the mat23 ter after the resolving clause of which is as follows:

24 ‘‘That the Congress having received on a certifi25 cation by the President under section 7205(c)(2) of
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•HR 3765 IH

1 the Peace, Prosperity, and Democracy Act of 1994

2 with respect to , the Congress hereby au3 thorizes the President to exercise the waiver author4 ity contained in section 7205(c)(3) of that Act.’’,

5 with the date of receipt of the certification inserted

6 in the first blank and the name of the country in7 serted in the second blank.

8 (3) Notwithstanding paragraph (1) of this sub9 section, if the Congress enacts a joint resolution

10 under paragraph (2) of this subsection, the Presi11 dent may furnish assistance which would otherwise

12 be prohibited under paragraph (1) if he determines

13 and certifies in writing to the Speaker of the House

14 of Representatives and the Committee on Foreign

15 Relations of the Senate that the termination of such

16 assistance would be seriously prejudicial to the

17 achievement of United States nonproliferation objec18 tives or otherwise jeopardize the common defense

19 and security. The President shall transmit with such

20 certification a statement setting forth the specific

21 reasons therefor.

22 (4) For purposes of this subsection, continuity

23 of session is broken only by an adjournment of Con24 gress sine die and the days on which either House

25 is not in session because of an adjournment of more
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1 than three days to a day certain are excluded in the

2 computation of any period of time in which Congress

3 is in continuous session.

4 (d) As used in this section, the term ‘‘nonnuclear5 weapon state’’ means any country which is not a nuclear6 weapon state, as defined in article IX(3) of the Treaty

7 on the Non-Proliferation of Nuclear Weapons.

8 (e) PAKISTAN.—No assistance shall be furnished to

9 Pakistan and no military equipment or technology shall

10 be sold or transferred to Pakistan, pursuant to the au11 thorities contained in this Act or any other Act, unless

12 the President shall have certified in writing to the Speaker

13 of the House of Representatives and the chairman of the

14 Committee on Foreign Relations of the Senate, during the

15 fiscal year in which assistance is to be furnished or mili16 tary equipment or technology is to be sold or transferred,

17 that Pakistan does not possess a nuclear explosive device

18 and that the proposed United States assistance program

19 will reduce significantly the risk that Pakistan will possess

20 a nuclear explosive device.

21 SEC. 7206. MAJOR ILLICIT DRUG PRODUCING AND DRUG

22 TRANSIT COUNTRIES.

23 (a) APPLICATION OF RESTRICTION.—Section

24 7201(a)(6) shall apply to any major illicit drug producing

25 country and any major drug-transit country if the Presi-
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1 dent determines, at the time of the submission of the re2 port required by section 7303, that during the previous

3 fiscal year the country has not cooperated with the United

4 States, and has otherwise not taken adequate steps to con5 trol the illicit cultivation, production, and smuggling of,

6 trafficking in, and abuse of narcotic and psychotropic

7 drugs. The President may rescind such a determination,

8 and section 7201(a)(6) shall cease to apply, if the Presi9 dent subsequently determines that the country has re10 sumed cooperating with the United States, or otherwise

11 has taken adequate steps to control the illicit cultivation,

12 production, and smuggling of, trafficking in, and abuse

13 of narcotic and psychotropic drugs.

14 (b) WITHHOLDING.—For any country that was a

15 major illicit drug producing or drug-transit country (as

16 defined in sections 8551(a)(11) and (12)) during the pre17 vious fiscal year, the President may withhold from obliga18 tion or expenditure up to fifty percent of assistance which

19 is allocated to such country each fiscal year in the report

20 required by section 7304 until the determination provided

21 for in section 7206 is made.

22 (c) In implementing subsection (a), the President

23 should consider the extent to which the country has—
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1 (1) accomplished the goals described in an ap2 plicable bilateral narcotics agreement with the Unit3 ed States or a multilateral agreement;

4 (2) investigated and immobilized major organi5 zations involved in the production, processing, or

6 distribution of narcotics and dangerous drugs;

7 (3) achieved significant increases in seizures of

8 the proceeds and instrumentalities of the illicit drug

9 trade;

10 (4) achieved significant reductions, where appli11 cable, in the net production of illicit narcotic crops

12 through forced or voluntary eradication efforts;

13 (5) prevented and punished the laundering in

14 that country of drug-related monies;

15 (6) prevented and punished public corruption

16 that facilitates the production, processing, or ship17 ment of narcotic and psychotropic drugs and other

18 controlled substances, or that discourages the inves19 tigation or prosecution of such acts;

20 (7) processed expeditiously United States and

21 other extradition requests related to narcotics traf22 ficking;

23 (8) increased public awareness of the heinous

24 nature of drug abuse and reduced the demand and
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1 the consumption of narcotics and dangerous drugs;

2 and

3 (9) if it is a producer of licit opium, taken steps

4 to prevent significant diversion of its licit cultivation

5 and production into the illicit market, to maintain

6 production of stockpiles at levels no higher than

7 those consistent with licit market demands, and to

8 prevent illicit cultivation and production.

9 SEC. 7207. ASSISTANCE FOR ELECTIONS.

10 Funds made available for assistance under this Act

11 that are used to enhance the independence and perform12 ance of electoral processes may not be used for the pur13 pose of influencing the outcome of any election in any

14 country.

15 SEC. 7208. ASSIGNMENT OF PERSONNEL.

16 (a) ASSIGNMENT OR DETAIL.—Members of the

17 Armed Forces may be assigned or detailed to perform

18 functions related to assistance under this Act adminis19 tered through the Department of Defense, provided they

20 not perform duties of a combatant nature, including any

21 duty related to training and advising that may engage

22 United States Armed Forces personnel in combat activi23 ties, outside the United States in connection with the per24 formance of those defense services.
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1 (b) EXCEPTION.—The limitation contained in sub2 section (a) shall not apply if the President determines, and

3 reports to the Congress, that its application would not be

4 in the national interest of the United States.

5 SEC. 7209. ASSISTANCE LIMITED TO ECONOMIC PROGRAMS.

6 (a) IN GENERAL.—Assistance provided under title I

7 of this Act may not be used for military or paramilitary

8 purposes.

9 (b) EXCEPTION FOR CERTAIN PROGRAMS.—The pro10 visions of subsection (a) of this section shall not apply to

11 economic assistance involving the participation of military

12 personnel in training activities, conferences, and other sus13 tainable development programs consistent with the pur14 poses of section 1102.

15 SEC. 7210. IMPACT OF SUSTAINABLE DEVELOPMENT AS16 SISTANCE ON ENVIRONMENT AND NATURAL

17 RESOURCES.

18 (a) STATEMENT OF POLICY.—It is the sense of the

19 Congress that—

20 (1) the economic and social well-being and the

21 security of the United States and other countries are

22 affected by how the world’s environment and phys23 ical resource base are managed, and that consump24 tion patterns, systems of industrial and agricultural

25 production, and the manner of use of natural re-
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1 sources all have an impact on the opportunities for

2 long-term development and growth and survival for

3 all countries;

4 (2) environmentally responsible management of

5 physical resources is necessary by both developed

6 and developing countries to insure their availability

7 for future generations and to assure that the bur8 dens of improved resource management do not fall

9 disproportionately on the poor;

10 (3) sustainable development is development that

11 meets the needs of the present without compromis12 ing the ability of future generations to meet their

13 own needs; and

14 (4) sustainable development programs author15 ized by this Act should assist countries to adopt poli16 cies and to carry out programs that promote eco17 nomic growth that is environmentally sound.

18 (b) IMPACT ASSESSMENT.—The President, in imple19 menting sustainable development programs under this

20 Act, should take fully into account the impact of such pro21 grams and projects upon the environment and natural re22 sources of developing countries. Subject to such proce23 dures as the President considers appropriate, the Presi24 dent should—
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1 (1) prepare and take fully into account an ini2 tial environmental examination of every program or

3 project to determine whether it significantly affects

4 the environment;

5 (2) prepare and take fully into account an envi6 ronmental impact statement for any program or

7 project significantly affecting the environment of the

8 global commons outside the jurisdiction of any coun9 try, the environment of the United States, or other

10 aspects of the environment which the President may

11 specify; and

12 (3) prepare and take fully into account an envi13 ronmental assessment of any proposed program or

14 project significantly affecting the environment of any

15 foreign country.

16 Where appropriate, local technical resources should be

17 used in preparing environmental impact statements and

18 environmental assessments pursuant to this section.

19 (c) EXCEPTIONS.—The President should establish ex20 ceptions for emergency conditions and for cases in which

21 implementation of procedures described in subsection (b)

22 would be seriously detrimental to the foreign policy inter23 ests of the United States.
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1 CHAPTER 3—REPORTS AND NOTIFICATIONS TO

2 CONGRESS

3 SEC. 7301. CONGRESSIONAL PRESENTATION DOCUMENTS.

4 (a) REQUIREMENT FOR SUBMISSION.—The President

5 shall prepare, and submit to the Congress in a timely man6 ner, annual congressional documents for the programs au7 thorized under titles I, II, and III of this Act.

8 (b) MATERIALS TO BE INCLUDED.—The documents

9 submitted pursuant to subsection (a) shall include—

10 (1) the rationale for the allocation of assistance

11 or contributions to each country, regional, or cen12 trally funded program, or activities under section

13 3102;

14 (2) a description of how each program or activ15 ity under section 3102 supports the objectives of the

16 title for which such program is being justified in17 cluding, for programs administered by the United

18 States Agency for International Development, to the

19 extent determined at the time of submission of these

20 documents, the strategic objectives for such pro21 grams; and

22 (3) a description of planned country, regional,

23 or centrally funded programs or activities under sec24 tion 3102 for the coming fiscal year.
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1 SEC. 7302. HUMAN RIGHTS POLICY AND REPORTS.

2 (a) PROMOTION OF HUMAN RIGHTS.—It is the sense

3 of the Congress that the United States should, in accord4 ance with its international obligations as set forth in the

5 charter of the United Nations and in keeping with the con6 stitutional heritage and traditions of the United States,

7 promote and encourage increased respect for human rights

8 and fundamental freedoms throughout the world without

9 distinction as to race, sex, language, or religion.

10 (b) CONDUCT OF ASSISTANCE.—In furtherance of

11 subsection (a), the President should formulate and con12 duct United States assistance in a manner which will—

13 (1) promote and advance human rights;

14 (2) strengthen a relationship between civilian

15 and military sectors appropriate to a democratic sys16 tem of government; and

17 (3) avoid identification of the United States,

18 through these programs, with governments which

19 deny to their people internationally recognized

20 human rights and fundamental freedoms in violation

21 of international law or in contravention of the policy

22 of the United States as expressed in this section or

23 otherwise.

24 (c) MATTERS TO BE CONSIDERED.—In carrying out

25 subsection (b) and in preparing the annual reports re-
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1 quired by subsection (d), consideration should be given to

2 the following:

3 (1) The relevant findings of appropriate inter4 national organizations and nongovernmental organi5 zations.

6 (2) The extent of cooperation by the govern7 ment in question in permitting an unimpeded inves8 tigation by indigenous nongovernmental organiza9 tions, other nongovernmental organizations, and

10 international organizations (such as the Inter11 national Committee of the Red Cross), of alleged

12 violations of internationally recognized human

13 rights.

14 (d) ANNUAL HUMAN RIGHTS REPORT.—In further15 ance of subsections (a) and (b), the President shall trans16 mit to the Congress, not later than January 31 each year,

17 a full and complete report with respect to practices regard18 ing the status of internationally recognized human rights,

19 regarding whether the country engages in a consistent pat20 tern of gross violations of internationally recognized

21 human rights within the meaning of section 8551(a)(5).

22 The report shall be submitted with respect to every foreign

23 country that is a member of the United Nations. Wherever

24 appropriate, such reports shall include information on

25 practices regarding coercion in population control, includ-
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1 ing coerced abortion and involuntary sterilization. The re2 port shall also include the steps taken to alter United

3 States programs under this Act in any country because

4 of human rights considerations.

5 (e) INFORMATION TO BE PROVIDED.—Each annual

6 report under subsection (d), shall include—

7 (1) information about observance of and respect

8 for human rights and fundamental freedom in the

9 country in question, and

10 (2) a detailed description of practices by the re11 cipient government with respect to human rights and

12 fundamental freedom, including where appropriate

13 information provided by organizations, including

14 nongovernmental organizations.

15 SEC. 7303. INTERNATIONAL NARCOTICS CONTROL REPORT.

16 Not later than March 1 of each year, the President

17 shall transmit to the Speaker of the House of Representa18 tives, and to the Committee on Foreign Relations of the

19 Senate, a comprehensive report on the state of inter20 national narcotics production and trafficking, and on

21 United States efforts to prevent the illicit cultivation and

22 manufacture of and trafficking in narcotics and psycho23 tropic drugs and other controlled substances.
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1 SEC. 7304. ANNUAL ALLOCATION REPORT.

2 (a) REPORT ON ALLOCATIONS OF ASSISTANCE.—Not

3 later than 30 days after the enactment of any law appro4 priating funds to carry out any provision of this Act, the

5 President shall notify the Congress of—

6 (1) each foreign country and international orga7 nization to which the United States Government in8 tends to provide any portion of the funds under such

9 law; and

10 (2) the amount of funds under that law, by cat11 egory of assistance, that the United States Govern12 ment intends to provide to each such country or or13 ganization.

14 (b) EXCEPTIONS.—Subsection (a) does not apply

15 with respect to—

16 (1) funds appropriated under section 8509 or

17 section 8510 (relating to operating expenses of the

18 United States Agency for International Development

19 and the Inspector General of that agency, respec20 tively); or

21 (2) any law making continuing appropriations.

22 (c) USE OF SPECIAL AUTHORITY.—The authority of

23 section 7201 of this Act may not be used to waive the

24 provisions of this section.
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1 SEC. 7305. NOTIFICATION OF PROGRAM CHANGES.

2 (a) NOTIFICATION OF PROGRAM CHANGES.—Unless

3 the Committee on Foreign Affairs and the Committee on

4 Appropriations of the House of Representatives and the

5 Committee on Foreign Relations and the Committee on

6 Appropriations of the Senate are notified at least fifteen

7 days in advance, funds appropriated for a fiscal year to

8 carry out this Act may not be obligated for any assistance

9 or contributions under any title of this Act—

10 (1) for programs administered by the United

11 States Agency for International Development under

12 title I—

13 (A) for a country, regional, or centrally

14 funded program for which assistance under that

15 title was not justified in congressional presen16 tation documents for that fiscal year;

17 (B) for a country, regional, or centrally

18 funded program in excess of the amount justi19 fied under that title in congressional presen20 tation documents or allocated pursuant to sec21 tion 7304 for that fiscal year;

22 (C) for a project or activity not previously

23 justified to such Committees or, in the case of

24 programs that are administered through strate25 gic objectives, for a new strategic objective for
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1 a country, regional or centrally funded pro2 gram; or

3 (D) for a nonproject assistance activity, in4 cluding commodity import program assistance;

5 (2) for assistance administered through the De6 partment of Defense under this Act—

7 (A) for a country, international organiza8 tion or arrangement, for which assistance under

9 that title was not justified in congressional

10 presentation documents for that fiscal year;

11 (B) in excess of the amount allocated pur12 suant to section 7304 for that country, organi13 zation or arrangement, under that title for that

14 fiscal year; or

15 (C) for the provision of major defense

16 equipment, other than conventional ammuni17 tion, or other major defense items defined to be

18 aircraft, ships, missiles, or combat vehicles not

19 previously justified to Congress or twenty per20 cent in excess of the quantities justified to Con21 gress.

22 (3) for other programs under this Act—

23 (A) for a country, international organiza24 tion or arrangement, or operation for which as25 sistance or contribution under that title was not
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1 justified in congressional presentation docu2 ments for that fiscal year;

3 (B) in excess of the amount allocated pur4 suant to section 7304 for that country or orga5 nization or arrangement under that title for

6 that fiscal year; or

7 (C) for a project, activity, or operation not

8 previously justified, or in excess of the amount

9 previously justified, to such Committees.

10 (b) APPROPRIATIONS SUBJECT TO REQUIRE11 MENTS.—Subsection (a) applies with respect to all funds

12 appropriated for assistance and contributions under this

13 Act other than—

14 (1) chapters 1 and 2 of title V (relating to the

15 Overseas Private Investment Corporation and the

16 Trade and Development Agency, respectively),

17 (2) section 1104 (relating to the micro and

18 small enterprise development, housing and urban,

19 and other guaranty programs),

20 (3) programs for refugee assistance and for dis21 aster relief and rehabilitation, including assistance

22 programs under title IV of this Act.

23 (c) EMERGENCY EXCEPTIONS.—

24 (1) WAIVER.—Subsection (a), or any similar re25 quirement to provide advance notification to the
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1 Congress or Congressional committees, may be

2 waived if the President determines that doing so is

3 necessitated by emergency circumstances.

4 (2) EXERCISE OF AUTHORITY.—In the case of

5 any waiver under paragraph (1) notification to the

6 Congress or the appropriate Congressional commit7 tees shall be provided as early as practicable, but in

8 no event later than three days after taking the ac9 tion to which such notification requirement was ap10 plicable. Any notification under this paragraph shall

11 contain an explanation of the circumstances neces12 sitating the use of the authority of this subsection.

13 SEC. 7306. EVALUATION AND MONITORING OF PROGRAM

14 PERFORMANCE.

15 (a) NEED FOR EVALUATION.—In order to effectively

16 and responsibly manage the resources made available for

17 sustainable development purposes, the President must

18 have a capacity to evaluate objectively the extent of

19 progress in achieving development results and to derive

20 lessons from that development experience.

21 (b) ACTIONS TO BE TAKEN.—In furtherance of sub22 section (a), the President shall establish a program per23 formance, monitoring, and evaluation capacity within the

24 United States Agency for International Development that

25 will do the following:
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1 (1) Enhance, through training and other

2 means, the use of program performance, monitoring,

3 and evaluation as a management tool, by both the

4 agency and its counterparts in countries receiving

5 assistance, in the planning, designing, and imple6 mentation of foreign assistance projects and pro7 grams.

8 (2) Develop a program performance information

9 system to afford agency managers at all levels, and

10 counterparts in countries receiving assistance, a

11 means for monitoring and assessing achievement of

12 impact and interim performance of the agency’s

13 major programs in support of the strategic manage14 ment of economic assistance.

15 (3) Prepare and disseminate objective and peri16 odic reports on the progress of the agency in meet17 ing development objectives and on lessons learned

18 from its development programs and assure the

19 widest possible distribution of findings, particularly

20 to beneficiaries of projects and programs.

21 (4) Establish a system which ensures the incor22 poration of evaluation findings in decisions of the

23 agency about program direction and resource alloca24 tion.
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1 (c) The President shall prepare an annual report to

2 the Congress to include the following:

3 (1) An assessment of progress toward the

4 achievement of sustainable development objectives,

5 based on the findings of program performance mon6 itoring and evaluation studies conducted by the

7 United States Agency for International Development

8 and on such other empirical analyses as may be ap9 propriate.

10 (2) An analysis, on a country-by-country basis,

11 of the results of sustainable development in each

12 country receiving assistance under title I from such

13 Agency, including a discussion of the United States

14 interests and objectives that were served by such as15 sistance.

16 TITLE VIII—GENERAL PROVISIONS

17 CHAPTER 1—EXERCISE AND COORDINATION OF

18 FUNCTIONS

19 SEC. 8101. DELEGATIONS BY THE PRESIDENT.

20 (a) IN GENERAL.—The President may exercise any

21 functions conferred upon the President by this Act

22 through such agency or officer of the United States Gov23 ernment as the President shall direct.
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1 (b) AUTHORITY TO ISSUE REGULATIONS AND DELE2 GATE.—The head of any agency or such officer exercising

3 functions under this Act—

4 (1) may from time to time promulgate such

5 rules and regulations as may be necessary to carry

6 out such functions; and

7 (2) may delegate authority, including to any

8 other agency upon obtaining the concurrence of the

9 head of that agency, to perform any such functions,

10 including, if he or she shall so specify, the authority

11 successively to redelegate any of such functions.

12 SEC. 8102. ROLE OF THE SECRETARY OF STATE.

13 (a) CONTINUOUS SUPERVISION.—Under the direction

14 of the President, the Secretary of State shall be respon15 sible for the continuous supervision and general direction

16 of assistance under this Act, including determining wheth17 er such assistance shall involve the provision of defense

18 articles and defense services, to the end that all such as19 sistance is effectively integrated both at home and abroad

20 and the foreign policy of the United States is best served

21 thereby.

22 (b) POWERS AND FUNCTIONS.—Nothing in this Act

23 shall be construed to infringe upon the powers and func24 tions of the Secretary of State.
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1 SEC. 8103. THE SECRETARY OF DEFENSE.

2 (a) With respect to assistance under this Act admin3 istered through the Department of Defense, the Secretary

4 of Defense shall have primary responsibility for—

5 (1) the determination of military end-item re6 quirements;

7 (2) the procurement of military equipment in a

8 manner which permits its integration with service

9 programs;

10 (3) the monitoring of end-item use by the recip11 ient countries;

12 (4) the supervision of the training of foreign

13 military and related civilian personnel;

14 (5) the movement and delivery of military end15 items; and

16 (6) within the Department of Defense the per17 formance of any other functions with respect to the

18 furnishing of assistance administered through the

19 Department of Defense under this Act.

20 (b) The establishment of priorities in the procure21 ment, delivery, and the allocation of military equipment

22 shall be determined by the Secretary of Defense.

23 SEC. 8104. UNITED STATES AGENCY FOR INTERNATIONAL

24 DEVELOPMENT.

25 The United States Agency for International Develop26 ment shall be an agency of the United States under the
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1 foreign policy guidance and subject to the supervision and

2 direction of the Secretary of State.

3 SEC. 8105. THE DIRECTOR OF THE ARMS CONTROL AND

4 DISARMAMENT AGENCY.

5 Decisions to furnish assistance administered through

6 the Department of Defense under subchapter A, chapter

7 1, title II, and chapter 3, title III shall be made in coordi8 nation with the Director of the United States Arms Con9 trol and Disarmament Agency and shall take into account

10 the Director’s opinion as to whether such assistance will—

11 (1) contribute to an arms race;

12 (2) increase the possibility of outbreak or esca13 lation of conflict; or

14 (3) prejudice the development of bilateral or

15 multilateral arms control arrangements.

16 SEC. 8106. AUTHORITY TO ESTABLISH OFFICES ABROAD.

17 The President may maintain offices or staffs outside

18 the United States in such countries and for such periods

19 of time as may be necessary to carry out this Act.

20 SEC. 8107. PRESIDENTIAL FINDINGS AND DETERMINA21 TIONS.

22 (a) FINDINGS AND DETERMINATIONS TO BE WRIT23 TEN AND SIGNED.—In any case in which the President

24 is required to make a report by any provision of this Act,

25 the Arms Export Control Act, or any annual or periodic
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1 foreign assistance authorizing or appropriations legisla2 tion, to the Congress or to any committee or officer of

3 either House of Congress concerning any finding or deter4 mination, that finding or determination shall be reduced

5 to writing and signed by the President.

6 (b) RESTRICTION.—No action shall be taken pursu7 ant to any such finding or determination prior to the date

8 on which that finding or determination is reduced to writ9 ing and signed by the President.

10 (c) PUBLICATION IN FEDERAL REGISTER.—Each

11 such finding or determination shall be published in the

12 Federal Register as soon as practicable after it has been

13 reduced to writing and signed by the President. In any

14 case in which the President concludes that such publica15 tion would be harmful to the national security of the Unit16 ed States, only a statement that a determination or find17 ing has been made by the President, including the name

18 and section of the Act under which it was made, shall be

19 published.

20 CHAPTER 2—ADMINISTRATIVE AUTHORITIES

21 Subchapter A—General Authorities

22 SEC. 8201. ALLOCATION OF FUNDS AND REIMBURSEMENT

23 AMONG AGENCIES.

24 (a) ALLOCATIONS OR TRANSFERS TO AGENCIES.—

25 The President, or with respect to funds appropriated to
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1 any agency, the head of such agency, as the case may be,

2 may allocate or transfer to any agency of the United

3 States Government any funds available for providing as4 sistance under this or any other Act, including any ad5 vance to the United States Government by any country

6 or international organization for the procurement of arti7 cles or services. Such funds shall be available for obliga8 tion and expenditure for the purposes for which author9 ized, in accordance with the authority pursuant to which

10 they were made available or the authority governing the

11 activities of the agency to which such funds are allocated

12 or transferred.

13 (b) PROCUREMENT FROM OTHER AGENCIES.—

14 (1) AUTHORITY.—Any officer of the United

15 States Government carrying out functions under this

16 Act may utilize the services and the facilities of, or

17 procure articles from, any agency of the United

18 States Government as the President shall direct, or

19 with the consent of the head of such agency.

20 (2) SEPARATE ACCOUNT.—Funds allocated pur21 suant to this subsection to any such agency may be

22 established in separate appropriation accounts on

23 the books of the Treasury.

24 (c) REIMBURSEMENT TO AGENCIES.—
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1 (1) GENERAL.—In the case of any article, serv2 ice, or facility procured from any agency of the Unit3 ed States Government to carry out any provision of

4 this Act (except with respect to assistance under sec5 tions 3103, 3204 and 7111, 7115(b)), reimburse6 ment or payment shall be made to such agency from

7 funds available to carry out that provision.

8 (2) AMOUNT OF REIMBURSEMENT.—Such reim9 bursement or payment shall be at—

10 (A) replacement cost,

11 (B) if required by law, actual cost,

12 (C) in the case of defense articles procured

13 from the Department of Defense, value as de14 fined in section 8551(20), or, if required by

15 law, actual costs,

16 (D) in the case of services procured from

17 the Department of Defense, the amount of the

18 additional costs incurred by the Department of

19 Defense in providing such services, or, if re20 quired by law, actual costs, or

21 (E) at any other cost agreed to by the

22 owning or disposing agency.

23 (3) CREDITING OF REIMBURSEMENT.—The

24 amount of any such reimbursement or payment shall

25 either be credited to current applicable appropria-
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1 tions, funds, or accounts of such agency, to be avail2 able for the same purposes and for the same time

3 period as the appropriation, fund or account to

4 which transferred, or any such credited funds shall

5 remain available for such purposes until expended.

6 (4) LIMITATION ON DEPARTMENT OF DEFENSE

7 DRAWDOWNS.—During any fiscal year, the aggre8 gate value of articles and services of which the

9 President may direct the drawdown from the inven10 tory and resources of the Department of Defense

11 may not exceed—

12 (A) $50,000,000 under section 3103,

13 (B) $15,000,000 under section 3204,

14 (C) $75,000,000 under section 7111(b),

15 and

16 (D) $5,000,000 under section 7115(b).

17 (d) REIMBURSEMENT TO THE DEPARTMENT OF DE18 FENSE.—Reimbursement or payment to the Department

19 of Defense under subsection (c) shall exclude salaries of

20 members of the Armed Forces (other than the Coast

21 Guard) and unfunded estimated costs of civilian retire22 ment and other benefits, unless otherwise required by law.

23 (e) ESTABLISHMENT OF ACCOUNTS.—

24 (1) AUTHORITY TO ESTABLISH; USES.—In fur25 nishing assistance under this or any other Act, ac-
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1 counts may be established on the books of any agen2 cy of the United States Government or, on terms

3 and conditions approved by the Secretary of the

4 Treasury, in banking institutions in the United

5 States—

6 (A) against which letters of commitment

7 may be issued which shall constitute recordable

8 obligations of the United States Government,

9 and moneys due or to become due under such

10 letters of commitment shall be assignable under

11 the last sentence of section 3727(b) and section

12 3727(c) of title 31, United States Code, and the

13 second and third paragraphs of section 3737 of

14 the Revised Statutes of the United States (41

15 U.S.C. 15); and

16 (B) from which disbursements may be

17 made to, or withdrawals may be made by, recip18 ient countries or agencies, organizations, or per19 sons upon presentation of contracts, invoices, or

20 other appropriate documentation.

21 (2) ACCOUNTING FOR EXPENDITURES.—Ex22 penditure of funds which have been made available

23 through accounts established under paragraph (1)

24 shall be accounted for on standard documentation
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1 required for expenditure of funds of the United

2 States Government.

3 (f) CHARGING TO APPROPRIATIONS.—

4 (1) INITIAL CHARGING.—Any appropriation or

5 account available to carry out provisions of this Act

6 may initially be charged in any fiscal year, within

7 the limit of available funds, to finance expenses for

8 which funds are available in other appropriations or

9 accounts under that title.

10 (2) FINAL CHARGING.—As of the end of such

11 fiscal year, such expenses shall be finally charged to

12 applicable appropriations or accounts with proper

13 credit to the appropriations or accounts initially uti14 lized for financing purposes, except that such final

15 charges shall not be required in the case of expenses

16 (other than those provided under sections 8509 and

17 8510) incurred in furnishing assistance where it is

18 determined that the accounting costs of identifying

19 the applicable appropriation or account to which

20 such expenses should be charged would be dispropor21 tionate to the advantage to be gained.

22 (3) APPLICATION TO PROGRAMS ADMINISTERED

23 THROUGH DOD.—This subsection shall not apply to

24 assistance administered through the Department of

25 Defense under this Act.
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1 (g) RESPONSIBILITY OF AGENCIES.—The agency re2 ceiving the funds pursuant to the authority of subsections

3 (a) or (b) shall be the agency responsible for the manage4 ment and use of such funds.

5 SEC. 8202. GENERAL AUTHORITIES.

6 (a) TERMS OF ASSISTANCE.—Except as otherwise

7 specifically prohibited in this Act, assistance under this

8 Act may be furnished on a grant, loan, or guaranty basis,

9 or on such terms, including cash, credit, or other terms

10 of repayment (including repayment in foreign currencies

11 or by transfer to the United States Government of arti12 cles), or as a contribution to an international organization

13 or arrangement, as may be determined to be best suited

14 to the achievement of the purposes of this Act.

15 (b) TERMS AND CONDITIONS.—The President may

16 furnish assistance under this Act on such terms and condi17 tions (consistent with other provisions of law) as the Presi18 dent deems appropriate, and, consistent with the provi19 sions of this Act, may charge such fees for guarantees and

20 loans under this Act as the President deems appropriate.

21 Credit assistance shall be consistent with the provisions

22 of the Federal Credit Reform Act of 1990. In the case

23 of contributions or other assistance provided for an inter24 national organization or arrangement under this or any

25 other Act, such organization or arrangement may utilize
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1 its own procurement, administrative, accounting, and

2 audit rules and procedures.

3 (c) ADVANCES, CONTRACTS, ETC.—In furtherance of

4 the purposes and subject to the limitations of this Act,

5 the President in providing assistance under this or any

6 other Act may make loans (in conformity with the provi7 sions of the Federal Credit Reform Act of 1990), ad8 vances, and grants to, make and perform agreements and

9 contracts with, or enter into other transactions with, any

10 person, corporation, or other body of persons, any govern11 ment or government agency, and any international organi12 zation or arrangement.

13 (d) GIFTS.—The President may accept and use in

14 furtherance of the purposes of this Act, money, funds,

15 property, and services of any kind made available by gift,

16 devise, bequest, grant, or otherwise for such purpose.

17 (e) INSURANCE.—

18 (1) FOREIGN PARTICIPANTS.—Any agency of

19 the United States Government is authorized to pay

20 the cost of health and accident insurance for foreign

21 participants in any program of furnishing assistance

22 administered by such agency while such participants

23 are absent from their homes for the purpose of par24 ticipation in such program.
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1 (2) FOREIGN EMPLOYEES.—Any agency of the

2 United States Government is authorized to pay the

3 cost of health and accident insurance for foreign em4 ployees of that agency while those employees are ab5 sent from their places of employment abroad for

6 purposes of training or other official duties.

7 (f) ADMISSION TO UNITED STATES.—Alien partici8 pants in any program of furnishing assistance under this

9 Act may be admitted to the United States if otherwise

10 qualified as nonimmigrants under section 101(a)(15) of

11 the Immigration and Nationality Act (8 U.S.C.

12 1101(a)(15)), for such time and under such conditions as

13 may be prescribed by regulations promulgated by the Sec14 retary of State and the Attorney General.

15 (g) ASSISTANCE AUTHORITIES.—In furnishing and

16 administering assistance under this Act, the President—

17 (1) may issue letters of credit and letters of

18 commitment;

19 (2) may collect, compromise, reschedule or oth20 erwise settle any obligations assigned to, or held by,

21 and any legal or equitable rights accruing to, the

22 President and may (as the President deems appro23 priate) refer any such obligations or rights to the

24 Attorney General for suit or collection;

25 (3) may—
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1 (A) acquire and dispose of (upon such

2 terms and conditions as the President deems

3 appropriate) any property, including any instru4 ment evidencing indebtedness or ownership, and

5 (B) guarantee payment against any such

6 instrument;

7 (4) may establish the character of, and decide

8 the necessity for, obligations and expenditures of

9 funds used in furnishing and administering such as10 sistance and the manner in which such obligations

11 and expenditures shall be incurred, allowed, and

12 paid, subject to provisions of law specifically applica13 ble to corporations of the United States Govern14 ment;

15 (5) shall cause to be maintained an integral set

16 of accounts which shall be audited by the General

17 Accounting Office in accordance with principles and

18 procedures applicable to commercial corporate trans19 actions as provided by chapter 91 of title 31, United

20 States Code;

21 (6) may transfer such of the funds appropriated

22 or otherwise made available under titles II and III

23 of this Act as the President may determine for as24 sistance to a recipient country to the account in

25 which funds for the procurement of defense articles
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1 and defense services under section 21 and section 22

2 of the Arms Export Control Act have been deposited

3 for such recipient, to be merged with such deposited

4 funds, and to be used solely to meet obligations of

5 the recipient for payment for sales under that Act.

6 Sales which are wholly paid from funds made avail7 able on a nonrepayable basis and transferred under

8 this paragraph, from funds made available under the

9 former authority of section 503(a)(3) of the Foreign

10 Assistance Act of 1961, or from funds made avail11 able on a non-repayable basis under the former au12 thority of section 23 of the Arms Export Control Act

13 shall be priced to exclude the costs of salaries of

14 members of the Armed Forces of the United States

15 (other than the Coast Guard).

16 (h) GUARANTEES.—Guarantees issued to carry out

17 the purposes of this Act shall be subject to the following:

18 (1) FULL FAITH AND CREDIT.—The full faith

19 and credit of the United States may be pledged for

20 the full payment and performance of guarantees is21 sued under this Act or predecessor legislation.

22 (2) CHARGES.—The President may charge ap23 propriate fees and/or interest in connection with the

24 activities carried out under such authority.
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1 (3) RELATIONSHIP TO OTHER PROVISIONS OF

2 LAW.—Guarantees may be provided under this Act

3 without regard to section 8402 of this Act.

4 (4) DENOMINATION OF LIABILITY.—The losses

5 guaranteed may be in dollars or in other currencies.

6 In the case of losses guaranteed in currencies other

7 than dollars, the guarantees issued shall be subject

8 to an overall payment limitation expressed in dollars.

9 (i) SUBSIDY COST OF GUARANTEES AND LOANS.—

10 The President may use funds made available under this

11 Act to pay the cost (as defined in section 13201 of the

12 Budget Enforcement Act of 1990) of direct loans and loan

13 guarantees made or entered into (and associated adminis14 trative costs) in furtherance of the purposes of this Act.

15 Funds appropriated to pay the cost (as defined in section

16 13201 of the Budget Enforcement Act of 1990) of direct

17 loans and loan guarantees made or entered into to carry

18 out the provisions of this Act shall be provided in conform19 ity with section 504(b)(1) of the Federal Credit Reform

20 Act of 1990.

21 (j) CLAIMS RELATING TO GUARANTEES.—Claims

22 arising as a result of any guarantee program authorized

23 by this Act may be settled, and disputes arising as the

24 result thereof may be arbitrated with the consent of the

25 parties, on such terms and conditions as the President
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1 may direct. Payment made pursuant to any such settle2 ment, or as a result of an arbitration award, shall be final

3 and conclusive notwithstanding any other provision of law.

4 (k) FINANCIAL TRANSACTIONS WITH FOREIGN GOV5 ERNMENTS IN DEFAULT OF OBLIGATIONS TO THE UNIT6 ED STATES.—Section 955 of title 18, United States Code,

7 shall not apply to any person—

8 (1) who acts for or participates in any oper9 ation or transaction arising under this Act, or

10 (2) who acquires any obligation issued in con11 nection with any operation or transaction arising

12 under this Act.

13 (l) EDUCATIONAL INSTITUTIONS.—Any cost-type

14 contract or agreement (including grants) entered into with

15 an institution of higher education for the purpose of carry16 ing out programs authorized by this Act may provide for

17 the payment of the reimbursable indirect costs of that in18 stitution on the basis of predetermined fixed-percentage

19 rates applied to the total or an element thereof, of the

20 reimbursable direct costs incurred.

21 (m) TRAINING WORKING CAPITAL FUND.—The head

22 of any agency administering assistance under this Act is

23 authorized to establish, with funds made available for as24 sistance under this Act (or predecessor legislation) admin25 istered by such agency, a working capital fund, which shall
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1 be available without fiscal year limitation, for expenses

2 and equipment necessary to the maintenance and oper3 ation of a program of providing short-term and long-term

4 training and training-related services of foreign nationals

5 in the United States or third countries, including such ex6 penses as (1) tuition and fees, (2) room, board, and main7 tenance allowances, and (3) contracts and the cost of ad8 ministering contracts entered into in furtherance of the

9 program.

10 (n) MULTIYEAR COMMITMENTS.—A contract or

11 agreement which entails commitments for the expenditure

12 of funds under this Act may, subject to any future action

13 of the Congress, extend at any time for not more than

14 5 years.

15 SEC. 8203. AUTHORIZED ADMINISTRATIVE USES OF FUNDS.

16 (a) PERSONNEL, PRINTING, PROCUREMENT OF SUP17 PLIES, AND OTHER ADMINISTRATIVE EXPENSES.—Funds

18 made available to carry out this Act may be used for the

19 following:

20 (1) Compensation, allowances, and travel of

21 personnel, including Foreign Service personnel,

22 whose services are utilized primarily for the purposes

23 of this Act, and for other administrative and operat24 ing expense purposes (other than compensation of

25 personnel) without regard to such laws and regula-
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1 tions governing the obligation and expenditure of

2 funds of the United States Government as may be

3 necessary to accomplish the purposes of this Act.

4 (2) Printing and binding without regard to the

5 provisions of any other law.

6 (3) Expenditures outside the United States for

7 the procurement of supplies and services and for

8 other administrative and operating purposes (other

9 than compensation of personnel) without regard to

10 the Claims Act, 31 U.S.C. 3721 and such laws and

11 regulations governing the obligation and expenditure

12 of funds of the United States Government (other

13 than sections 1341, 1342, and 1517 of title 31,

14 United States Code) as may be necessary to accom15 plish the purposes of this Act.

16 (b) USES OF ASSISTANCE FUNDS.—

17 (1) AUTHORIZED USES.—Funds described in

18 paragraph (2) shall be available for the following:

19 (A) Expenses of attendance at meetings

20 concerned with the purposes of this Act, includ21 ing (notwithstanding section 1346(a) and

22 1346(c) of title 31, United States Code), ex23 penses in connection with meetings of persons

24 whose employment is authorized by section

25 8503.
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1 (B) Contracting with individuals for per2 sonal services. Such individuals shall not be re3 garded as employees of the United States Gov4 ernment for the purpose of any law adminis5 tered by the Office of Personnel Management,

6 except that the head of the contracting agency

7 may determine the applicability to such individ8 uals of any other law administered by such

9 agency concerning the employment of such indi10 viduals.

11 (C) Purchase, maintenance, operation, and

12 hire of aircraft, except that aircraft for admin13 istrative purposes may be purchased only as

14 specifically provided for in an appropriation or

15 other Act.

16 (D)(i) Purchase and hire of passenger

17 motor vehicles, subject to clause (ii).

18 (ii) Passenger motor vehicles other than

19 one for the official use of the Administrator of

20 the United States Agency for International De21 velopment may be purchased for use in the

22 United States only as may be specifically pro23 vided in an appropriation or other Act.

24 (E) Entertainment and representation.

25 (F) Awards.
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1 (G) Exchange of funds without regard to

2 loss by exchange.

3 (H) Expenditures (not to exceed $50,000

4 in any fiscal year except as may otherwise be

5 provided in an appropriation or other Act) of a

6 confidential character other than entertainment.

7 A certificate of the amount of such expenditure,

8 the nature of which it is considered inadvisable

9 to specify, shall be made by the President, and

10 every such certificate shall be deemed a suffi11 cient voucher for the amount therein specified.

12 (I) Insurance of official motor vehicles or

13 aircraft acquired for use in foreign countries.

14 (J) Expenses of—

15 (i) preparing and transporting to their

16 former homes (or with respect to foreign

17 participants engaged in any program under

18 this Act to their former homes or places of

19 burial), and

20 (ii) caring for and disposing of the re21 mains of an individual, or the remains of

22 a member of an individual’s family, who

23 may die while such individual is away from

24 home participating in activities carried out

25 with funds described in paragraph (2).
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1 (K) Purchase of uniforms.

2 (L) Payment of per diem in lieu of subsist3 ence to foreign participants engaged in any pro4 gram under this Act while such participants are

5 away from their homes in countries other than

6 the United States, at rates not in excess of

7 those prescribed by the standardized Govern8 ment travel regulations, notwithstanding any

9 other provision of law.

10 (M) Use in accordance with authorities of

11 the Foreign Service Act of 1980 (22 U.S.C.

12 3901 et seq.) not otherwise provided for.

13 (N) Ice and drinking water for use outside

14 the United States.

15 (O) Services of commissioned officers of

16 the National Oceanic and Atmospheric Admin17 istration. For the purposes of providing such

18 services, the National Oceanic and Atmospheric

19 Administration may appoint not to exceed 20

20 commissioned officers in addition to those oth21 erwise authorized.

22 (P) Expenses in connection with—

23 (i) travel of personnel outside the

24 United States, including travel expenses of

25 dependents (including expenses during nec-
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1 essary stopovers while engaged in such

2 travel), and the transportation of personal

3 effects, household goods, and automobiles

4 of such personnel when any part of such

5 travel or transportation begins in one fiscal

6 year pursuant to travel orders issued in

7 that fiscal year, notwithstanding the fact

8 that such travel or transportation may not

9 be completed during the same fiscal year;

10 and

11 (ii) the costs of transporting auto12 mobiles to and from a place of storage,

13 and the costs of storing automobiles of

14 such personnel, when it is in the public in15 terest or more economical to authorize

16 storage.

17 (Q) Assistance for the implementation of

18 programs under the Agricultural Trade Devel19 opment and Assistance Act of 1954, the Agri20 cultural Act of 1949, and the Food for Progress

21 Act of 1985.

22 (R) Other expenses determined by the

23 President to be necessary to carry out the pur24 poses of this Act.
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1 (2) FUNDS WHICH MAY BE USED.—Paragraph

2 (1) applies to—

3 (A) appropriations to carry out this Act,

4 (B) allocations or transfers to or from any

5 agency of the United States Government, from

6 other appropriations, for functions directly re7 lated to the purposes of this Act, and

8 (C) funds made available for other pur9 poses to the United States Agency for Inter10 national Development.

11 (c) FACILITIES.—

12 (1) LIVING QUARTERS, OFFICES, SCHOOLS, AND

13 HOSPITALS.—Notwithstanding any other provision

14 of law, funds available for assistance under this Act

15 may be used in any fiscal year (in addition to funds

16 available for such use under other authorities in this

17 Act)—

18 (A) to rent, lease, construct or otherwise

19 acquire essential living quarters, office space,

20 and necessary supporting facilities for use of

21 personnel carrying out activities authorized by

22 this Act, including to maintain, furnish, im23 prove, and make necessary repairs to such

24 property, which may also include the cost of

25 fuel, water, and utilities for such properties;
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1 (B) to construct or otherwise acquire out2 side the United States schools (including dor3 mitories and boarding facilities) and hospitals

4 for use of personnel carrying out activities au5 thorized by this Act, United States Government

6 personnel, and their dependents; and

7 (C) to staff, operate, and maintain such

8 schools and hospitals.

9 (2) DISPOSAL.—Property acquired under this

10 subsection (or predecessor provisions of this Act)

11 may be disposed of, and the proceeds of such dis12 posal shall remain available until expended for use

13 for the purposes specified in paragraph (1).

14 (d) EDUCATION OF DEPENDENTS.—Funds available

15 for assistance under this Act may be used in any fiscal

16 year to provide assistance to schools established, or to be

17 established, outside the United States whenever it is deter18 mined that such action would be more economical or would

19 best serve the interests of the United States in providing

20 for the education of dependents of personnel carrying out

21 activities authorized by this Act and dependents of United

22 States Government personnel, in lieu of acquisition or con23 struction pursuant to subsection (c) of this section.

24 (e) TRAINING OF PERSONNEL.—
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1 (1) PAYMENT OF COSTS.—Funds available

2 under this Act may be used to pay costs of training

3 United States citizen personnel employed or assigned

4 pursuant to section 8502(d), through interchange or

5 otherwise, at any State or local unit of government,

6 public or private nonprofit institution, trade, labor,

7 agricultural, or scientific association or organization,

8 or commercial firm.

9 (2) LIMITATION ON DUAL EMPLOYMENT.—Such

10 training shall not be considered employment or hold11 ing of office under section 5533 of title 5, United

12 States Code.

13 (3) ACCEPTANCE OF CERTAIN PAYMENTS.—Any

14 payments or contributions in connection with such

15 training may, as deemed appropriate by the head of

16 the agency of the United States Government author17 izing such training, be made by private or public

18 sources and be accepted by any trainee, or may be

19 accepted by and credited to the current applicable

20 appropriation of such agency. Any such payments or

21 contributions to any employee in the nature of com22 pensation shall be in lieu, or in reduction, of com23 pensation received from the United States Govern24 ment.
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1 Subchapter B—Department of Defense Administrative

2 Authories

3 SEC. 8211. ADMINISTRATIVE EXPENSES.

4 Funds allocated to the Department of Defense for the

5 purpose of providing assistance under this Act shall be

6 available for the following:

7 (1) Administrative, extraordinary (not to exceed

8 $300,000 in any fiscal year), and operating expenses

9 incurred in furnishing assistance under this Act ad10 ministered through the Department of Defense, in11 cluding the purchase of passenger motor vehicles for

12 replacement only for use outside of the United

13 States.

14 (2) Reimbursement of actual expenses of mili15 tary officers detailed or assigned as tour directors in

16 connection with orientation visits of foreign military

17 and related civilian personnel, in accordance with the

18 provisions of section 5702 of title 5, United States

19 Code, applicable to civilian officers and employees.

20 (3) Maintenance, repair, alteration, and fur21 nishing of United States-owned facilities in the Dis22 trict of Columbia or elsewhere for the training of

23 foreign military and related civilian personnel with24 out regard to the provisions of section 3733 of the

25 Revised Statutes (41 U.S.C. 12) or other provision
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1 of law requiring a specific authorization or specific

2 appropriation for such public contracts.

3 SEC. 8212. END USE AND RETRANSFER ASSURANCES.

4 (a) CONDITIONS.—Defense articles or defense serv5 ices may not be made available under this Act to a foreign

6 country, unless that country has agreed to the following

7 (in addition to such other provisions as the President may

8 require):

9 (1) The country will not, without the consent of

10 the President—

11 (A) transfer title to, or possession of, any

12 defense articles or defense services so furnished

13 to it to anyone not an officer, employee, or

14 agent of that country, and

15 (B) use or permit the use of such articles

16 or services for purposes other than those for

17 which furnished.

18 (2) The country will maintain the security of

19 such articles or services, and will provide substan20 tially the same degree of security protection afforded

21 to such articles or services by the United States

22 Government.

23 (b) INELIGIBILITY.—

24 (1) TERMINATION OF ASSISTANCE FOR SUB25 STANTIAL VIOLATIONS.—Assistance administered by
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1 the Department of Defense under this Act to any

2 country and deliveries of defense articles and defense

3 services provided with such assistance shall be termi4 nated, and new commitments to provide such assist5 ance to that country shall not be made, as herein6 after provided if such country uses defense articles

7 or defense services described in paragraph (2) in

8 substantial violation (either in terms of quantities or

9 in terms of the gravity of the consequences regard10 less of the quantities involved) of any agreement

11 pursuant to which those defense articles or defense

12 services were furnished—

13 (A) by using such articles or services for a

14 purpose not provided for in this Act or, if such

15 agreement provides that such articles or serv16 ices may only be used for purposes more lim17 ited, for a purpose not authorized under such

18 agreement;

19 (B) by transferring such articles or serv20 ices to, or permitting any use of such articles

21 or services by, anyone not an officer, employee,

22 or agent of the recipient country; or

23 (C) by failing to maintain the security of

24 such articles or services.
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1 (2) DEFENSE ARTICLES AND DEFENSE SERV2 ICES SUBJECT TO REQUIREMENTS.—Paragraph (1)

3 applies with respect to any defense articles or de4 fense services furnished (through financing or other5 wise) under this Act, or furnished under any prede6 cessor foreign assistance legislation.

7 (c) EXCEPTION.—No prior consent shall be required

8 under this subchapter and section 3 of the Arms Export

9 Control Act for transfer by a foreign country of defense

10 articles sold by the United States under that Act under

11 the following circumstances—

12 (1) such articles constitute components incor13 porated into a foreign defense article;

14 (2) the recipient is the government of a NATO

15 country, or the government of Australia or Japan;

16 (3) the United States-origin components were

17 not significant military equipment, were not military

18 defense equipment for which notification to Congress

19 was required by section 36(b) of the Arms Export

20 Control Act, and are not identified by regulation as

21 Missile Technology Control Regime items; and

22 (4) the foreign country or persons transferring

23 the items provide notification to the United States

24 Government within thirty days following such trans25 fer.
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1 SEC. 8213. APPROVAL OF THIRD COUNTRY TRANSFERS.

2 (a) IN GENERAL.—In considering a request for ap3 proval of any transfer of any weapon, weapons system,

4 munitions, aircraft, military vessel, or other implement of

5 war to another country, the President shall not give his

6 consent under section 8212 to the transfer unless the

7 United States itself would transfer the defense article

8 under consideration to that country.

9 (b) SIGNIFICANT MILITARY EQUIPMENT.—In addi10 tion, the President shall not give consent under this sub11 chapter to the transfer of any significant military equip12 ment on the United States Munitions List unless the for13 eign country requesting consent to transfer agrees to de14 militarize such equipment prior to transfer, or the pro15 posed recipient provides a commitment in writing to the

16 United States Government that it will not transfer such

17 equipment if not demilitarized to any other foreign coun18 try or person without first obtaining the consent of the

19 President.

20 SEC. 8214. EXCHANGE TRAINING.

21 The President is authorized to provide for attendance

22 of foreign military personnel at professional military edu23 cation institutions in the United States (other than service

24 academies) without charge, and without charge to funds

25 available to carry out titles II and III notwithstanding sec26 tion 8201, if such attendance is pursuant to an agreement
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1 providing for the exchange of students on a generally re2 ciprocal basis each fiscal year between those United States

3 professional military education institutions and com4 parable institutions of foreign countries and international

5 organizations.

6 CHAPTER 3—SPECIAL REQUIREMENTS AND AUTHORI7 TIES RELATING TO APPROPRIATIONS AND LOCAL

8 CURRENCIES

9 Subchapter A—Provisions Relating to Appropriations

10 SEC. 8301. REQUIREMENT FOR AUTHORIZATION OF APPRO11 PRIATIONS.

12 (a) REQUIREMENT FOR AUTHORIZATION.—Funds

13 appropriated for foreign assistance under this Act shall

14 not be available for obligation or expenditure—

15 (1) unless the appropriation thereof has been

16 specifically authorized by law; or

17 (2) in excess of an amount prescribed by law.

18 (b) SUBSEQUENT AUTHORIZATIONS.—To the extent

19 that legislation enacted after the making of an appropria20 tion for foreign assistance under this Act authorizes the

21 obligation or expenditure thereof, the limitation contained

22 in subsection (a) shall not apply.

23 (c) RELATION TO OTHER PROVISIONS.—The provi24 sions of this section shall not be superseded except by a
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1 provision of law that specifically repeals or modifies the

2 provisions of this section.

3 SEC. 8302. AUTHORITY FOR EXTENDED PERIOD OF AVAIL4 ABILITY OF APPROPRIATIONS.

5 Amounts appropriated to carry out this Act are au6 thorized—

7 (1) to be made available, in appropriations

8 Acts, until expended; and

9 (2) in addition to amounts otherwise available

10 for such purposes.

11 SEC. 8303. REDUCTION IN EARMARKS.

12 (a) PROPORTIONAL REDUCTIONS.—If—

13 (1) the amount appropriated for a fiscal period

14 to carry out any provision of this Act is less than

15 the amount authorized to be appropriated to carry

16 out such provision, and

17 (2) the provision or provisions authorizing such

18 appropriations provides that a specified amount of

19 the amount authorized to be appropriated to carry

20 out that provision for that fiscal period shall be

21 available only for a particular country, organization,

22 or purpose,

23 then the amount so specified shall be deemed to be re24 duced to the amount which bears the same ratio to the
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1 specified amount as the amount appropriated bears to the

2 amount authorized to be appropriated.

3 (b)(1) Funds may be made available notwithstanding

4 any provision of law described in paragraph (2) if—

5 (A) compliance with such provision is made im6 possible by operation of law, or

7 (B) the President determines that the country

8 or organization for whom such funds would have

9 been made available has significantly reduced its

10 military, political, or economic cooperation with the

11 United States during the preceding 12 month pe12 riod.

13 (2) The provisions of law to which this subsection ap14 plies are any provisions requiring that a specified amount

15 of funds appropriated to carry out any provision of this

16 Act shall be available only for a particular country, organi17 zation, or purpose.

18 SEC. 8304. OBLIGATION UPON APPORTIONMENT.

19 Funds appropriated to carry out this Act may be obli20 gated upon apportionment in accordance with title 31, sec21 tion 1501(a)(5)(C), United States Code.

22 Subchapter B—Local Currencies

23 SEC. 8311. USE OF CERTAIN FOREIGN CURRENCIES.

24 (a) AUTHORITY TO USE FOREIGN CURRENCIES FOR

25 ASSISTANCE PROGRAMS.—Except as otherwise provided
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1 in this Act or other provisions of law, foreign currencies

2 described in subsection (b) are authorized to be appro3 priated for use in providing assistance under this Act.

4 (b) FOREIGN CURRENCIES WHICH MAY BE USED

5 FOR ASSISTANCE.—The foreign currencies which may be

6 used under subsection (a) are any foreign currencies re7 ceived as a result of the furnishing of assistance under

8 this Act (or any predecessor legislation authorizing non9 military assistance) other than assistance administered

10 through the Department of Defense which are in excess

11 of—

12 (1) the amounts reserved under authority of

13 section 105(d) of the Mutual Educational and Cul14 tural Exchange Act of 1961 or any other Act relat15 ing to educational and cultural exchanges; and

16 (2) the amounts required for payment by the

17 agencies of the United States Government of their

18 obligations outside the United States, as such re19 quirements may be established from time to time by

20 the President.

21 (c) PAYMENT OF OBLIGATIONS OF GOVERNMENT

22 AGENCIES.—Foreign currencies described in subsection

23 (b) which are in excess of the amounts described in para24 graph (1) of that subsection may be sold by the Secretary

25 of the Treasury to agencies of the United States Govern-
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1 ment for payment of their obligations outside the United

2 States.

3 (d) USE OF FOREIGN CURRENCIES NOT OWNED BY

4 THE UNITED STATES GOVERNMENT.—With the concur5 rence of the relevant inspector general, the use of foreign

6 currencies that accrue or are otherwise available as a re7 sult of assistance provided under this Act (including pred8 ecessor legislation) that are not owned by the United

9 States Government, shall be the responsibility of the gov10 ernment owning such currencies to audit.

11 SEC. 8312. INTEREST ON U.S. OWNED FOREIGN CURRENCY

12 PROCEEDS.

13 (a) REQUIREMENT FOR PAYMENT OF INTEREST.—

14 In cases where assistance is to be furnished to any recipi15 ent country under this Act on a basis which will result

16 in the accrual of foreign currency proceeds to the United

17 States, agreements with respect to such assistance should

18 include provisions for the receipt of interest income on the

19 foreign currency proceeds deposited in authorized deposi20 tories.

21 (b) WAIVER OF REQUIREMENT.—The President may

22 waive any requirement for receipt of such income if the

23 President decides it would not be in the national interest

24 to conclude arrangements for the receipt of interest in25 come pursuant to subsection (a).
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1 CHAPTER 4—PROCUREMENT AND DISPOSITION OF

2 ARTICLES

3 SEC. 8401. USE OF PRIVATE ENTERPRISE.

4 (a) IN GENERAL.—In order to encourage and facili5 tate participation by private enterprise to the maximum

6 extent practicable in achieving any of the purposes of this

7 Act, the President shall—

8 (1) to the maximum extent practicable carry

9 out programs of assistance through private channels

10 and, to the extent practicable, in conjunction with

11 local private or governmental participation; and

12 (2) utilize wherever practicable the products

13 and services of United States private enterprise to

14 provide the necessary equipment, supplies, and skills

15 to develop and operate a specific project or program

16 of assistance in a developing country or area in any

17 case in which direct private investment is not readily

18 encouraged, and provide where appropriate for the

19 transfer of equity ownership in such project or pro20 gram to private investors at the earliest feasible

21 time.

22 (b) TECHNICAL ASSISTANCE.—In providing technical

23 assistance under this Act, the President shall utilize, to

24 the fullest extent practicable, goods and professional and

25 other services from private enterprise on a contract basis.
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1 In such fields as education, health, housing, engineering,

2 surveying, mapping, construction or agriculture, the facili3 ties and resources of Federal agencies, which do not ad4 minister programs under this Act, may be utilized when

5 such facilities are particularly or uniquely suitable for

6 technical assistance, are not competitive with private en7 terprise, and can be made available without interfering un8 duly with domestic programs.

9 (c) ASSISTANCE PROVIDED THROUGH THE DEPART10 MENT OF DEFENSE.—The President shall assure that

11 there is made available to suppliers in the United States,

12 and particularly to small independent enterprises, infor13 mation with respect to purchases of defense articles and

14 defense services made by the Department of Defense pur15 suant to this Act. Such information shall be furnished as

16 far in advance as possible.

17 SEC. 8402. PROCUREMENT STANDARDS AND PROCEDURES.

18 (a)(1) LIMITATIONS ON PROCUREMENT OUTSIDE

19 THE UNITED STATES.—Funds made available for pro20 grams under this Act may be used by the President for

21 procurement—

22 (A) only in the United States, the recipient

23 country, or developing countries; or

24 (B) in any other country but only if—
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1 (i) such program requires articles or serv2 ices of a type that are not produced in and

3 available for purchase in any country specified

4 in subparagraph (A); or

5 (ii) the President determines, on a case-by6 case basis, that procurement in such other

7 country is necessary—

8 (I) to meet unforeseen circumstances,

9 such as emergency situations, where it is

10 important to permit procurement in a

11 country not specified in subparagraph (A);

12 or

13 (II) to promote efficiency in the use of

14 United States foreign assistance resources,

15 including to avoid impairment of foreign

16 assistance objectives.

17 (2) For purposes of this subsection, the term ‘‘devel18 oping countries’’ shall not include advanced developing

19 countries.

20 (b) BULK COMMODITIES.—No funds made available

21 under this Act shall be used for the purchase in bulk of

22 any commodities at prices higher than the market price

23 prevailing in the United States at the time of purchase,

24 adjusted for differences in the cost of transportation to

25 destination, quality, and terms of payment.
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1 (c) PROCUREMENT METHOD FOR INSTITUTIONS OF

2 HIGHER EDUCATION.—The President may establish sepa3 rate procurement standards and procedures for projects

4 under this Act to limit competition to a selection among

5 institutions of higher education when the projects would

6 benefit substantially from the resources and special capa7 bilities of such institutions.

8 SEC. 8403. SHIPPING ON UNITED STATES VESSELS.

9 (a) CERTAIN LAWS NOT APPLICABLE.—The ocean

10 transportation between foreign countries of articles pur11 chased with foreign currencies made available or derived

12 from funds made available under this Act or the Agricul13 tural Trade Development and Assistance Act of 1954 (7

14 U.S.C. 1691 and following), or any predecessor Acts, and

15 transfers of fresh fruit and fresh fruit products under this

16 Act, shall not be governed by section 901(b) of the Mer17 chant Marine Act, 1936 (46 U.S.C. app. 1241(b)), or any

18 other law relating to the ocean transportation of commod19 ities on United States flag vessels.

20 (b) SHIPPING DIFFERENTIAL.—For purposes of fa21 cilitating implementation of section 901(b) of the Mer22 chant Marine Act, 1936 (46 U.S.C. app. 1241(b)), funds

23 made available for commodities and services under this

24 Act may be used to make grants to recipients or otherwise

25 pay all or any portion of such differential as is determined
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1 by the Secretary of Transportation to exist between Unit2 ed States and foreign-flag vessel charter or freight rates.

3 Grants made under this section shall be paid with United

4 States-owned foreign currencies wherever feasible.

5 SEC. 8404. EXCESS AND OTHER AVAILABLE PROPERTY.

6 (a) POLICY REGARDING USE OF EXCESS AND OTHER

7 AVAILABLE PROPERTY.—In furnishing assistance under

8 this Act—

9 (1) excess personal property, or

10 (2) if a substantial savings would occur, other

11 property already owned by an agency of the United

12 States Government,

13 may be utilized wherever practicable in lieu of or supple14 mentary to the procurement of new items for United

15 States-assisted projects and programs.

16 (b) AUTHORITY TO USE CERTAIN PROPERTY FOR

17 ASSISTANCE PURPOSES.—The President is authorized to

18 use funds made available under this Act to acquire—

19 (1) property classified as domestic or foreign

20 excess pursuant to the Federal Property and Admin21 istrative Services Act of 1949 (40 U.S.C. 471 and

22 following);

23 (2) any property available from an agency of

24 the United States Government; or

25 (3) other property,
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1 for use of such property as assistance in furtherance of

2 the purposes of this Act. Property acquired pursuant to

3 this section may be furnished pursuant to any provision

4 of this Act for which funds are authorized for the furnish5 ing of assistance.

6 (c)(1) The President is also authorized for purposes

7 described in subsection (b) to maintain in a separate ac8 count funds made available under this Act, free from fiscal

9 year limitations (notwithstanding section 1535(d) of title

10 31, United States Code) to pay costs (including personnel

11 costs) of acquisition and storage (including in advance of

12 known requirements), renovation and rehabilitation, pack13 ing, crating, handling, transportation, and related costs of

14 handling and providing such property as assistance.

15 (2) The separate account established pursuant to this

16 section may be repaid—

17 (A) from funds made available pursuant to any

18 provision of this Act for which funds are authorized

19 for the furnishing of assistance for all costs in20 curred; or

21 (B) pursuant to section 7110 for all costs in22 curred.

23 (d) CONDITIONS ON USE OF EXCESS PROPERTY.—

24 (1) LIMITATION.—Government-owned excess

25 property may not be made available for use under
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1 this Act unless approval is given and a determina2 tion is made in accordance with paragraph (2)—

3 (A) before the shipment of such property

4 for use in a specified country, or

5 (B) if the property is already in such coun6 try, before the transfer of the property.

7 (2) DETERMINATION.—A shipment or transfer

8 subject to paragraph (1) may take place only after

9 the President approves the shipment or transfer and

10 makes a written determination—

11 (A) that there is a need for such property

12 in the quantity requested and that such prop13 erty is suitable for the purpose requested;

14 (B) as to the status and responsibility of

15 the designated end-user and his ability effec16 tively to use and maintain such property; and

17 (C) that the residual value, serviceability,

18 and appearance of such property would not re19 flect unfavorably on the image of the United

20 States and would justify the costs of packing,

21 crating, handling, transportation, and other ac22 cessorial costs, and that the residual value at

23 least equals the total of these costs.

24 (e) THIS SECTION SHALL NOT APPLY.—
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1 (1) in the case of excess property of the De2 partment of Defense that is furnished as assistance

3 under section 8405 of this Act; and

4 (2) in the case of funds made available for as5 sistance under this Act that is administered through

6 the Department of Defense.

7 SEC. 8405. GRANT TRANSFERS OF EXCESS DEFENSE ARTI8 CLES.

9 (a) AUTHORITY.—Notwithstanding any other provi10 sion of law, the President may transfer excess defense ar11 ticles to countries for which receipt of such articles was

12 separately justified in the fiscal year in which the transfer

13 is authorized, such excess defense articles as may be nec14 essary to carry out the purposes of titles II or III of this

15 Act.

16 (b) GENERALLY APPLICABLE PROVISIONS.—

17 (1) DEFINITION.—For purposes of this section,

18 excess property of the Coast Guard may be trans19 ferred on the same basis as excess defense articles

20 otherwise authorized to be transferred by this sec21 tion.

22 (2) TERMS OF TRANSFERS.—Excess defense ar23 ticles may be transferred under this section without

24 cost to the recipient country or international organi25 zation.
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1 (3) LIMITATIONS ON TRANSFERS.—The Presi2 dent may transfer excess defense articles under this

3 section only if—

4 (A) they are drawn from existing stocks of

5 the Department of Defense (or the Coast

6 Guard);

7 (B) funds available to the Department of

8 Defense (or the Coast Guard) for the procure9 ment of defense equipment are not expended in

10 connection with the transfer;

11 (C) the transfer of the excess defense arti12 cles will not have an adverse impact on the mili13 tary readiness of the United States; and

14 (D) transferring the articles under the au15 thority of those sections is preferable to selling

16 them, after taking into account the potential

17 proceeds from, and likelihood of, such sales,

18 and the comparative foreign policy benefits that

19 may accrue to the United States as the result

20 of either a transfer or sale.

21 (4) ADVANCE NOTIFICATION TO CONGRESS.—

22 The President may not transfer excess defense arti23 cles that are significant military equipment or an ar24 ticle valued (in terms of its original acquisition cost)

25 at $7,000,000 or more, under this section until 15
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1 days after the President has provided notice of the

2 proposed transfer to the Committee on Armed Serv3 ices, the Committee on Foreign Affairs, and the

4 Committee on Appropriations of the House of Rep5 resentatives and the Committee on Armed Services,

6 the Committee on Foreign Relations, and the Com7 mittee on Appropriations of the Senate.

8 (5) WAIVER OF REQUIREMENT FOR REIM9 BURSEMENT OF DEPARTMENT OF DEFENSE EX10 PENSES.—Section 8201 shall not apply with respect

11 to transfers of excess defense articles under this sec12 tion.

13 (6) TRANSPORTATION AND RELATED COSTS.—

14 Funds available to the Department of Defense (or

15 the Coast Guard) shall not be expended for crating,

16 packing, handling and transportation of excess de17 fense articles transferred under the authority of this

18 section, except under the following conditions:

19 (A) where it is determined that it is in the

20 United States national interest to do so,

21 (B) the recipient is an international orga22 nization or is a developing country receiving

23 less than $10,000,000 of assistance described in

24 subparagraphs (A) and (B) of section 8551(21)
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1 of this Act in the fiscal year in which the trans2 portation is provided,

3 (C) the total weight of the transfer does

4 not exceed 25,000 pounds,

5 (D) such overseas transportation is accom6 plished on a space available basis, and

7 (E) the recipient agrees to pay packing,

8 crating, and other handling costs incurred as a

9 result of the transfer.

10 SEC. 8406. STOCKPILING OF DEFENSE ARTICLES FOR FOR11 EIGN COUNTRIES.

12 (a) REMOVAL FROM STOCKPILING.—Defense articles

13 in the inventory of the Department of Defense which are

14 set aside, reserved, or in any way earmarked or intended

15 for future use by any foreign country may not be made

16 available to or for use by any foreign country unless—

17 (1) such transfer is authorized under this Act

18 or the Arms Export Control Act; and

19 (2) the value of such transfer is charged

20 against funds authorized to carry out the provisions

21 of this Act or against any limitations specified in

22 such legislation, as appropriate, for the fiscal period

23 in which the defense articles are transferred.

24 (b) VALUE.—
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1 (1) DEFINITION.—For purposes of subsection

2 (a), ‘value’ means acquisition cost plus crating,

3 packing, handling, and transportation costs incurred

4 in carrying out this section.

5 (2) LIMITATION.—A defense article transferred

6 from any stockpile which is made available to or for

7 use by any foreign country may not be considered an

8 excess defense article for the purpose of determining

9 the value of that defense article.

10 SEC. 8407. LOCATION OF STOCKPILES.

11 Except for stockpiles located in the Republic of

12 Korea, Thailand, a country which is a member of the

13 North Atlantic Treaty Organization, a country which is

14 a major non-NATO ally, or such other countries as the

15 President may designate, no stockpile may be located out16 side the boundaries of a United States military base or

17 a military base used primarily by the United States.

18 SEC. 8408. ADDITIONS TO WAR RESERVE STOCKS.

19 (a) LIMITATION.—The value of defense articles to be

20 added to those set aside, earmarked, reserved, or intended

21 for use as war reserve stocks for allied or other foreign

22 countries (other than for purposes of the North Atlantic

23 Treaty Organization) in stockpiles located in foreign coun24 tries may not exceed in any fiscal year an amount specified
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1 in legislation authorizing military assistance programs for

2 that fiscal year.

3 (b) AUTHORIZATION OF ADDITIONS.—The value of

4 such additions to stockpiles in foreign countries shall not

5 exceed such sums as may be authorized for a fiscal year.

6 SEC. 8409. RETENTION AND USE OF CERTAIN ITEMS AND

7 FUNDS.

8 (a) RETENTION AND USE OF CERTAIN ARTICLES.—

9 (1) AUTHORITY TO RETAIN, TRANSFER, AND

10 USE.—Any articles procured to carry out this Act

11 shall be retained by, or (upon reimbursement) trans12 ferred to and for the use of, such agency of the

13 United States Government as the President deems

14 appropriate in lieu of being disposed of to a foreign

15 country or international organization, whenever in

16 the judgment of the President the best interests of

17 the United States will be served thereby.

18 (2) LAWS GOVERNING DISPOSAL OF GOVERN19 MENT PROPERTY.—Any articles so retained may be

20 disposed of without regard to provisions of law relat21 ing to the disposal of property owned by the United

22 States Government, when necessary to prevent spoil23 age or wastage of such articles or to conserve their

24 usefulness.
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1 (3) PROCEEDS CREDITED TO APPROPRIA2 TIONS.—Funds realized from any disposal or trans3 fer shall revert to the respective appropriation, fund,

4 or account used to procure such articles or to the

5 appropriation, fund, or account currently available

6 for the same general purpose.

7 (b) ARTICLES RECEIVED AS PAYMENT.—Whenever

8 articles are transferred to the United States Government

9 as repayment of assistance under this Act or the former

10 authority of the Foreign Assistance Act, such articles may

11 be used in furtherance of the purposes and within the limi12 tations of this Act.

13 (c) FAILED TRANSACTIONS.—Funds realized as a re14 sult of any failure of a transaction financed under this

15 Act to conform to the requirements of this Act, to applica16 ble rules and regulations of the United States Govern17 ment, or to the terms of any agreement or contract en18 tered into under this Act, shall revert to the respective

19 appropriation, fund, or account used to finance such

20 transaction or to the appropriation, fund, or account cur21 rently available for the same general purpose.

22 (d) DISPOSAL OF DEFENSE ARTICLES.—Funds real23 ized by the United States Government from the sale,

24 transfer, or disposal of defense articles furnished under

25 the former authority of chapter 2 of part II of the Foreign
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1 Assistance Act of 1961, and no longer needed for the pur2 poses for which furnished, shall be credited to the respec3 tive appropriation, fund, or account currently available for

4 the same general purpose.

5 CHAPTER 5—PERSONNEL AND ADMINISTRATIVE

6 EXPENSES

7 Subchapter A—General

8 SEC. 8501. STATUTORY OFFICERS IN THE UNITED STATES

9 AGENCY FOR INTERNATIONAL DEVELOP10 MENT.

11 (a) APPOINTMENT.—The President may appoint, by

12 and with the advice and consent of the Senate, 12 officers

13 in the United States Agency for International Develop14 ment.

15 (b) TITLE.—The President may designate the title of

16 any officer appointed under subsection (a).

17 (c) ORDER OF SUCCESSION.—The President may

18 also fix the order of succession among the officers ap19 pointed under subsection (a) of this section in the event

20 of the absence, death, resignation, or disability of one or

21 more of those officers.

22 SEC. 8502. EMPLOYMENT OF PERSONNEL.

23 (a) AUTHORITY.—Any agency or officer of the United

24 States Government carrying out functions under this Act

25 is authorized to employ such personnel as the President
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1 deems necessary to carry out the provisions and purposes

2 of this Act.

3 (b) ASSISTANCE FUNCTIONS IN THE UNITED

4 STATES.—

5 (1) APPOINTMENTS WITHOUT REGARD TO CER6 TAIN CIVIL SERVICE LAWS.—Of the personnel em7 ployed in the United States by the United States

8 Agency for International Development, 110 may be

9 appointed or removed without regard to the provi10 sions of title 5, United States Code, governing ap11 pointments in the competitive service, and may be

12 compensated without regard to the provisions of

13 chapter 51 or subchapter III of chapter 53 of such

14 title, subject to paragraph (2) of this subsection.

15 (2) COMPENSATION.—Of the personnel ap16 pointed under paragraph (1), 51 may be com17 pensated at rates higher than those payable for GS–

18 15 of the General Schedule under section 5332 of

19 title 5, United States Code, but not in excess of the

20 highest rate payable under section 5376 of such

21 title.

22 (3) REINSTATEMENT RIGHTS.—Under such

23 regulations as the President may prescribe, any indi24 vidual employed under paragraph (1) may be enti25 tled, upon removal (except for cause) from the posi-
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1 tion to which the appointment was made, to rein2 statement to the position occupied by that individual

3 at the time of appointment or to a position of com4 parable grade and pay.

5 (c) DEPARTMENT OF DEFENSE FUNCTIONS IN THE

6 UNITED STATES.—Of the personnel employed in the Unit7 ed States by the Department of Defense to carry out this

8 Act or the Arms Export Control Act not to exceed 8 may

9 be compensated at rates higher than those payable for

10 GS–15 of the General Schedule under section 5332 of title

11 5 of the United States Code, but not in excess of the high12 est rate payable under section 5376 of such title. Such

13 positions shall be in addition to those authorized by law

14 to be filled by Presidential appointment, and in addition

15 to the number authorized by section 5108 of title 5, Unit16 ed States Code.

17 (d) PERFORMANCE OF FUNCTIONS OUTSIDE THE

18 UNITED STATES.—

19 (1) AUTHORITY TO EMPLOY OR ASSIGN.—For

20 the purpose of performing functions under this Act

21 outside the United States, the President may—

22 (A) employ or assign individuals, or

23 (B) authorize the employment or assign24 ment of officers or employees by agencies of the

25 United States Government which are not au-
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1 thorized to utilize the Foreign Service personnel

2 system.

3 (2) COMPENSATION.—Individuals employed or

4 assigned under paragraph (1) shall receive com5 pensation at any of the rates provided for under sec6 tion 402 or section 403 of the Foreign Service Act

7 of 1980, or under chapter 53 of title 5, United

8 States Code, or at any other rate authorized by law,

9 together with allowances and benefits under the For10 eign Service Act of 1980.

11 (3) REEMPLOYMENT RIGHTS.—Individuals so

12 employed or assigned shall be entitled to the same

13 benefits as are provided by section 310 of that Act

14 for individuals appointed to the Foreign Service, ex15 cept to the extent that the President may specify

16 otherwise in cases in which the period of employ17 ment or assignment exceeds 30 months.

18 (e) CERTAIN FUNDS DEEMED OBLIGATED FOR CER19 TAIN SERVICES.—Funds provided for in agreements with

20 foreign countries for the furnishing of services under this

21 Act with respect to specific projects shall be deemed to

22 be obligated for the services of personnel employed by

23 agencies of the United States Government (other than the

24 United States Agency for International Development or
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1 the Department of Defense) as well as personnel not em2 ployed by the United States Government.

3 SEC. 8503. EXPERTS, CONSULTANTS, AND RETIRED OFFI4 CERS.

5 (a) AUTHORITY TO EMPLOY.—Experts and consult6 ants or organizations thereof may, in accordance with sec7 tion 3109 of title 5 of the United States Code, be em8 ployed for the performance of functions under this Act.

9 (b) MANDATORY RETIREMENT AGE NOT APPLICA10 BLE.—Service of an individual as an expert or consultant

11 under subsection (a) of this section shall not be considered

12 as employment or holding of office or position bringing

13 such individual within the provisions of section 3323(a)

14 of title 5 of the United States Code.

15 (c) EMPLOYMENT OF CERTAIN PERSONS WITHOUT

16 COMPENSATION.—Persons of outstanding experience and

17 ability may be employed without compensation by any

18 agency of the United States Government for the perform19 ance of functions under this Act in accordance with the

20 provisions of section 710(b) of the Defense Production Act

21 of 1950 (50 U.S.C. App. 2160(b)), and regulations issued

22 thereunder.
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1 SEC. 8504. DETAIL OF PERSONNEL TO FOREIGN GOVERN2 MENTS AND INTERNATIONAL ORGANIZA3 TIONS.

4 (a) DETAILS TO FOREIGN GOVERNMENTS.—When

5 consistent with and in furtherance of the purposes of this

6 Act, the head of any agency of the United States Govern7 ment is authorized to detail any officer or employee of that

8 agency to any office or position with any foreign govern9 ment or foreign government agency, where acceptance of

10 such office or position does not involve the taking of an

11 oath of allegiance to another government or acceptance of

12 compensation or other benefits from any foreign country

13 by such officer or employee.

14 (b) DETAILS TO INTERNATIONAL ORGANIZATIONS.—

15 When consistent with and in furtherance of the purposes

16 of this Act, the head of any agency of the United States

17 Government is authorized to detail to any international

18 organization or arrangement, any officer or employee of

19 that agency to serve with, or as a member of, the inter20 national staff of such organization, or to render any tech21 nical, scientific, or professional advice or service to, or in

22 cooperation with, such organization.

23 (c) STATUS OF PERSONNEL DETAILED.—

24 (1) RETENTION OF BENEFITS.—Any officer or

25 employee, while detailed under this section—
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1 (A) shall be considered an officer or em2 ployee of the United States Government and of

3 the agency of the United States Government

4 from which detailed for the purpose of preserv5 ing his or her allowances, privileges, rights, se6 niority, and other benefits as such; and

7 (B) shall continue to receive compensation,

8 allowances, and benefits from funds appro9 priated to that agency or made available to that

10 agency under this Act, or may be detailed on a

11 leave without pay status.

12 (2) ALLOWANCES.—Any officer or employee as13 signed, detailed, or appointed under this section, sec14 tion 8503, section 8505, or section 8506 may receive

15 (under such regulations as the President may pre16 scribe) representation allowances similar to those al17 lowed under section 905 of the Foreign Service Act

18 of 1980. The authorization of such allowances and

19 other benefits and the payment thereof out of any

20 appropriations available therefor shall be considered

21 as meeting all the requirements of section 5536 of

22 title 5, United States Code.

23 (d) TERMS OF DETAIL.—Details may be made under

24 this section or section 408 of the Mutual Security Act of

25 1954 in accordance with any of the following paragraphs:
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1 (1) Without reimbursement to the United

2 States Government by the foreign government or

3 international organization;

4 (2) Upon agreement by the foreign government

5 or international organization to reimburse the Unit6 ed States Government for compensation, travel ex7 penses, benefits, and allowances, or any part thereof,

8 payable to the officer or employee concerned during

9 the period of detail. Such reimbursements (including

10 foreign currencies) shall be credited to the appro11 priation, fund, or account utilized for paying such

12 compensation, travel expenses, benefits, or allow13 ances, or to the appropriation, fund, or account cur14 rently available for such purposes;

15 (3) Upon an advance of funds, property, or

16 services by the foreign government or international

17 organization to the United States Government ac18 cepted with the approval of the President for speci19 fied uses in furtherance of the purposes of this Act.

20 Funds so advanced may be established as a separate

21 fund in the Treasury of the United States Govern22 ment, to be available for the specified uses, and to

23 be used for reimbursement of appropriations or di24 rect expenditure subject to the provisions of this

25 Act, any unexpended balance of such account to be
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1 returned to the foreign government or international

2 organization; or

3 (4) Subject to the receipt by the United States

4 Government of a credit to be applied against the

5 payment by the United States Government of its

6 share of the expenses of the international organiza7 tion to which the officer or employee is detailed,

8 such credit to be based upon the compensation, trav9 el expenses, benefits and allowances, or any part

10 thereof, payable to such officer or employee during

11 the period of detail in accordance with subsection

12 (c).

13 SEC. 8505. HEAD OF OFFICES ABROAD.

14 (a) APPOINTMENT.—The President may appoint a

15 head and deputy head of each office or staff maintained

16 under section 8106.

17 (b) COMPENSATION AND ALLOWANCES.—Such head

18 shall be entitled to receive such compensation and allow19 ances as are authorized by the Foreign Service Act of

20 1980, not to exceed those authorized for a chief of mission

21 (as defined in section 102(a)(3) of that Act), as the Presi22 dent deems appropriate.

23 SEC. 8506. CHAIRMAN OF OECD DEVELOPMENT ASSIST24 ANCE COMMITTEE.

25 (a) APPOINTMENT.—The President may—
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1 (1) appoint any United States citizen who is

2 not an employee of the United States Government,

3 or

4 (2) assign any United States citizen who is an

5 employee of the United States Government, to serve

6 as Chairman of the Development Assistance Com7 mittee (or any successor committee) of the Organi8 zation for Economic Cooperation and Development,

9 upon election thereto by members of that Commit10 tee.

11 (b) COMPENSATION AND ALLOWANCES.—An individ12 ual appointed or assigned under subsection (a) may re13 ceive such compensation and allowances as are authorized

14 by the Foreign Service Act of 1980, not to exceed those

15 authorized for a chief of mission (as defined in section

16 102(a)(3) of that Act), as the President deems appro17 priate. Such individual, if appointed under subsection

18 (a)(1), shall be deemed to be an employee of the United

19 States Government for purposes of chapters 81, 83, 84,

20 87, and 89 of title 5, United States Code. Such individual

21 may also, in the President’s discretion, receive any other

22 benefits and perquisites available under this Act to heads

23 of offices or staffs maintained under section 8106.
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1 SEC. 8507. ASSIGNMENT OF DOD PERSONNEL TO CIVIL

2 OFFICES.

3 Notwithstanding section 973(b) of title 10, United

4 States Code, personnel of the Department of Defense may

5 be assigned or detailed to any civil office to carry out this

6 Act.

7 SEC. 8508. DISCRIMINATION AGAINST UNITED STATES PER8 SONNEL PROVIDING ASSISTANCE.

9 It is the Sense of the Congress that—

10 (1) the assignment of officers and employees of

11 the United States to carry out any assistance pro12 gram funded under this Act in any foreign country,

13 should not take into account the race, religion, na14 tional origin, or sex of any such officer or employee,

15 and such assignments should be made solely on the

16 basis of ability and relevant experience; and

17 (2) assistance under this Act should not be fur18 nished to any foreign country, the laws, regulations,

19 official policies, or governmental practices of which

20 prevent any United States person (as defined in sec21 tion 7701(a)(30) of the Internal Revenue Code of

22 1954) from participating in the furnishing of assist23 ance under this Act on the basis of race, religion,

24 national origin, or sex.
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1 SEC. 8509. AVAILABILITY OF FUNDS FOR OPERATING EX2 PENSES GENERALLY.

3 (a) IN GENERAL.—Funds shall be available to carry

4 out the provisions of this section as authorized and appro5 priated to the President each fiscal year.

6 (b) ADDITIONAL AMOUNTS.—There are authorized to

7 be appropriated to the President such additional amounts

8 as may be necessary for increases in salary, pay, retire9 ment, and other employee benefits authorized by law, and

10 for other nondiscretionary costs of such agency.

11 SEC. 8510. AVAILABILITY OF FUNDS FOR OPERATING EX12 PENSES OF THE INSPECTOR GENERAL.

13 (a) IN GENERAL.—Funds shall be available to carry

14 out the provisions of this section as authorized and appro15 priated to the President each fiscal year.

16 (b) ADDITIONAL AMOUNTS.—There are authorized to

17 be appropriated to the President such additional amounts

18 as may be necessary for increases in salary, pay, retire19 ment, and other employee benefits authorized by law, and

20 for other nondiscretionary costs of such office.

21 SEC. 8511. AVAILABILITY OF FUNDS.

22 Notwithstanding any other provision of law, the Unit23 ed States Agency for International Development may obli24 gate and expend funds in advance of appropriations in an

25 amount sufficient to maintain operations at posts abroad

26 for up to three days.
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1 Subchapter B—Overseas Management of Assistance and

2 Sales Programs Administered Through The Depart3 ment of Defense

4 SEC. 8521. AUTHORIZED FUNCTIONS.

5 (a) IN GENERAL.—In order to carry out responsibil6 ities for the management of assistance and sales programs

7 administered through the Department of Defense under

8 this Act and under the Arms Export Control Act, the

9 President may assign members of the Armed Forces to

10 a foreign country to perform one or more of the following

11 functions:

12 (1) Equipment and services case management.

13 (2) Training management.

14 (3) Program monitoring.

15 (4) Evaluation and planning of the host govern16 ment’s military capabilities and requirements.

17 (5) Administrative support.

18 (6) Promoting rationalization, standardization,

19 interoperability, and other defense cooperation meas20 ures.

21 (7) Liaison functions exclusive of advisory and

22 training assistance.

23 (b) ADVISORY AND TRAINING ASSISTANCE.—Advi24 sory and training assistance conducted by members of the

25 Armed Forces assigned for purposes of providing defense
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1 articles or defense services shall be kept to an absolute

2 minimum. Advising and training assistance in countries

3 to which members of the Armed Forces are assigned for

4 such purposes should be provided primarily by other per5 sonnel who are not assigned for such purposes and who

6 are detailed for limited periods to perform specific tasks.

7 SEC. 8522. COSTS.

8 The entire costs (excluding salaries of members of the

9 Armed Forces other than the Coast Guard) of overseas

10 management of programs for providing defense articles

11 and defense services under this Act shall be charged to

12 or reimbursed from funds allocated to the Department of

13 Defense, pursuant to the authorities of this Act, other

14 than any such costs which are either—

15 (1) paid directly for such defense services under

16 section 21(a) of the Arms Export Control Act, or

17 (2) reimbursed from charges for services col18 lected from foreign governments pursuant to section

19 21(e) and section 43(b) of that Act.

20 SEC. 8523. ROLE OF CHIEF OF MISSION.

21 Members of the Armed Forces assigned to a foreign

22 country under section 8521 of this Act shall serve under

23 the direction and supervision of the Chief of the United

24 States Diplomatic Mission to that country.
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1 Subchapter C—Administrative Provisions for the Trade

2 and Development Agency

3 SEC. 8531. DIRECTOR AND PERSONNEL.

4 (a) DIRECTOR.—There shall be at the head of the

5 Trade and Development Agency a Director who shall be

6 appointed by the President, by and with the advice and

7 consent of the Senate.

8 (b) OFFICERS AND EMPLOYEES.—

9 (1) The Director may appoint such officers and

10 employees of the Trade and Development Agency as

11 the Director considers appropriate.

12 (2) The officers and employees appointed under

13 this paragraph shall have such functions as the Di14 rector may determine.

15 (3) Of the officers and employees appointed

16 under this paragraph, two may be appointed without

17 regard to the provisions of title 5, United States

18 Code, governing appointments in the competitive

19 service, and may be compensated without regard to

20 the provisions of chapter 51 or subchapter III of

21 chapter 53 of such title.

22 (4) Under such regulations as the President

23 may prescribe, any individual appointed under sub24 paragraph (C) may be entitled, upon removal (except

25 for cause) from the position to which the appoint-
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1 ment was made, to reinstatement to the position oc2 cupied by that individual at the time of appointment

3 or to a position of comparable grade and pay.

4 SEC. 8532. AUDITS.

5 (a) IN GENERAL.—The Trade and Development

6 Agency shall be subject to the provisions of chapter 35

7 of title 31, United States Code, except as otherwise pro8 vided in this section.

9 (b) INDEPENDENT AUDIT.—An independent certified

10 public accountant shall perform a financial and compli11 ance audit of the financial statements of the Trade and

12 Development Agency each year, in accordance with gen13 erally accepted Government auditing standards for a fi14 nancial and compliance audit, taking into consideration

15 any standards recommended by the Comptroller General.

16 The independent certified public accountant shall report

17 the results of such audit to the Director of the Trade and

18 Development Agency. The financial statements of the

19 Trade and Development Agency shall be presented in ac20 cordance with generally accepted accounting principles.

21 These financial statements and the report of the account22 ant shall be included in a report which contains, to the

23 extent applicable, the information identified in section

24 3512 of title 31, United States Code, and which the Trade

25 and Development Agency shall submit to the Congress not
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later than 61 1 ⁄2 months after the end of the last fiscal year

2 covered by the audit. The Comptroller General may review

3 the audit conducted by the accountant and the report to

4 the Congress in the manner and at such times as the

5 Comptroller General considers necessary.

6 (c) AUDIT BY COMPTROLLER GENERAL.—In lieu of

7 the financial and compliance audit required by paragraph

8 (2), the Comptroller General shall, if the Comptroller Gen9 eral considers it necessary or upon the request of the Con10 gress, audit the financial statements of the Trade and De11 velopment Agency in the manner provided in paragraph

12 (2).

13 (d) AVAILABILITY OF INFORMATION.—All books, ac14 counts, financial records, reports, files, workpapers, and

15 property belonging to or in use by the Trade and Develop16 ment Agency and the accountant who conducts the audit

17 under paragraph (2), which are necessary for purposes of

18 this subsection, shall be made available to the representa19 tives of the General Accounting Office designated by the

20 Comptroller General.

21 SEC. 8533. ANNUAL REPORT.

22 The President shall, not later than December 31 of

23 each year, submit to the Committee on Foreign Affairs

24 of the House of Representatives and the Committee on

25 Foreign Relations of the Senate a report on the activities
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1 of the Trade and Development Agency in the preceding

2 fiscal year.

3 Subchapter D—Administrative Provisions for the

4 Overseas Private Investment Corporation

5 SEC. 8541. STOCK OF THE CORPORATION.

6 The Secretary of the Treasury shall hold the capital

7 stock of the Corporation.

8 SEC. 8542. ORGANIZATION AND MANAGEMENT.

9 (a) STRUCTURE OF THE CORPORATION.—The Cor10 poration shall have a Board of Directors, a President, an

11 Executive Vice President, and such other officers and staff

12 as the Board of Directors may determine.

13 (b) BOARD OF DIRECTORS.—

14 (1) IN GENERAL.—All powers of the Corpora15 tion shall vest in and be exercised by or under the

16 authority of its Board of Directors (hereafter in this

17 subchapter referred to as ‘the Board’) which shall

18 consist of 15 Directors (including the Chair and

19 Vice Chair), with 8 Directors constituting a quorum

20 for the transaction of business.

21 (2) COMPOSITION OF THE BOARD.—

22 (A) CHAIR.—The Chair of the Board shall

23 be the Administrator of the United States

24 Agency for International Development, ex

25 officio.
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1 (B) VICE CHAIR.—The Vice Chair of the

2 Board shall be the United States Trade Rep3 resentative, ex officio, except that the United

4 States Trade Representative may designate the

5 Deputy United States Trade Representative to

6 serve as Vice Chairman in place of the United

7 States Trade Representative.

8 (C) PRESIDENT OF OPIC.—The President

9 of the Corporation shall serve as a Director, ex

10 officio.

11 (D) PUBLIC SECTOR DIRECTORS.—(i) In

12 addition to the directors provided for in sub13 paragraphs (A) through (C), five Directors who

14 are officers or employees of the Government of

15 the United States shall be designated by the

16 President of the United States, including an of17 ficer or employee of the Department of Labor.

18 (ii) The Directors designated under this

19 subparagraph shall receive no additional com20 pensation by virtue of their service as such a

21 Director.

22 (E) PRIVATE SECTOR DIRECTORS.—Eight

23 Directors who are not otherwise officers or em24 ployees of the Government of the United States

25 shall be appointed by the President of the Unit-
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1 ed States, by and with the advice and consent

2 of the Senate. Of these, at least—

3 (i) two shall be experienced in small

4 business,

5 (ii) one shall be experienced in orga6 nized labor, and

7 (iii) one shall be experienced in co8 operatives.

9 (F) EACH DIRECTOR APPOINTED UNDER

10 SUBPARAGRAPH (E)—

11 (i) shall be appointed for a term of

12 not more than 3 years; the terms of not

13 more than three such Directors shall expire

14 in any 1 year;

15 (ii) shall serve until their successors

16 are appointed and qualified and may be

17 reappointed to subsequent terms; and

18 (iii) shall be compensated at the daily

19 equivalent of the annual rate of pay in ef20 fect for level IV of the Executive Schedule

21 under section 5315 of title 5, United

22 States Code, for each day (including travel

23 time) during which such Director is actu24 ally engaged in the business of the Cor25 poration, and may be paid travel or trans-
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1 portation expenses to the extent authorized

2 for employees serving intermittently in the

3 Government service under section 5703 of

4 title 5, United States Code.

5 (c) APPOINTMENT OF THE PRESIDENT.—The Presi6 dent of the Corporation shall be appointed by the Presi7 dent of the United States, by and with the advice and con8 sent of the Senate. In making such appointment, the

9 President shall take into account the private business ex10 perience of the appointee. The President of the Corpora11 tion shall be its Chief Executive Officer and shall be re12 sponsible for the operations and management of the Cor13 poration, subject to bylaws and policies established by the

14 Board.

15 (d) OFFICERS AND STAFF.—

16 (1) EXECUTIVE VICE PRESIDENT.—The Execu17 tive Vice President of the Corporation shall be ap18 pointed by the President of the United States, by

19 and with the advice and consent of the Senate.

20 (2) OTHER OFFICERS AND STAFF.—(A) The

21 Corporation may appoint such other officers and

22 such employees (including attorneys) and agents as

23 the Corporation considers appropriate.
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1 (B) The officers, employees, and agents ap2 pointed under this subsection shall have such func3 tions as the Corporation may determine.

4 (C) Of the officers, employees, and agents ap5 pointed under this paragraph, 20 may be appointed,

6 compensated or removed without regard to civil serv7 ice laws and regulations.

8 (D) Under such regulations as the President of

9 the United States may prescribe, any individual ap10 pointed under subparagraph (C) may be entitled,

11 upon removal (except for cause) from the position to

12 which the appointment was made, to reinstatement

13 to the position occupied by that individual at the

14 time of appointment or to a position of comparable

15 grade and pay.

16 SEC. 8543. INCOME AND REVENUES.

17 In order to carry out the purposes of the Corporation,

18 all revenues and income transferred to or earned by the

19 Corporation, from whatever source derived, except for pay20 ments to the financing account, shall be held by the Cor21 poration and shall be available to carry out its purposes,

22 including without limitation—

23 (1) payment of all expenses of the Corporation,

24 including investment promotion expenses;
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1 (2) transfers and additions to the insurance re2 serve, financing accounts and such other funds, ac3 counts or reserves as the Corporation may establish,

4 at such time and in such amounts as the Board may

5 determine; and

6 (3) payment of dividends, on capital stock,

7 which shall consist of and be paid from net earnings

8 of the Corporation after payments, transfers, and

9 additions under paragraphs (1) and (2).

10 SEC. 8544. GENERAL PROVISIONS RELATING TO INSUR11 ANCE AND FINANCING PROGRAM.

12 (a) AGREEMENTS WITH COUNTRIES.—Insurance, re13 insurance, and guarantees issued under chapter 1 of title

14 V shall not cover investment made in connection with

15 projects in any country or area unless the President of

16 the United States has agreed with the government of such

17 country or area to institute a program for such insurance,

18 reinsurance, or guarantees.

19 (b) PROTECTION OF INTERESTS OF THE CORPORA20 TION.—The Corporation shall determine that suitable ar21 rangements exist for protecting the interest of the Cor22 poration in connection with any insurance, reinsurance, or

23 guarantee issued under chapter 1 of title V, including ar24 rangements concerning ownership, use, and disposition of

25 the currency, credits, assets, or investments on account
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1 of which payment under such insurance, guarantee, or re2 insurance is to be made, and any right, title, claim, or

3 cause of action existing in connection therewith.

4 (c) FULL FAITH AND CREDIT PLEDGED.—All guar5 antees issued pursuant to predecessor guarantee author6 ity, and all insurance, reinsurance, and guarantees issued

7 pursuant to chapter 1 of title V shall constitute obliga8 tions, in accordance with the terms of such insurance, re9 insurance, or guarantees, of the United States of America,

10 and the full faith and credit of the United States of Amer11 ica is hereby pledged for the full payment and performance

12 of such obligations.

13 (d) FEES.—Fees may be charged for providing insur14 ance, reinsurance, financing, and other services under

15 chapter 1 of title V in amounts to be determined by the

16 Corporation. Fees paid for project-specific transaction

17 costs and other transaction costs, including but not limited

18 to project-related travel and expenses for legal representa19 tion, associated with services provided to specific investors

20 or potential investors pursuant to section 5102, including

21 financing, insurance, reinsurance, missions, seminars, con22 ferences, and other pre-investment services, shall be avail23 able for obligation for the purposes for which they were

24 collected notwithstanding any other provision of law.

25 Transaction costs relating to investment financing com-
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1 mitments entered into pursuant to section 5102(b) shall

2 be considered cash flows from the Government resulting

3 from financing commitments and shall be paid out of the

4 appropriate financing account established pursuant to sec5 tion 505(b) of the Federal Credit Reform Act of 1990.

6 (e) INSURANCE, REINSURANCE, AND FINANCING

7 LIMITED TO 20 YEARS.—No insurance, reinsurance, or fi8 nancing of any equity investment under chapter 1 of title

9 V shall extend beyond 20 years from the date on which

10 such insurance, reinsurance, or financing is issued.

11 (f) AMOUNT OF COMPENSATION PAID ON CLAIMS.—

12 Compensation for any insurance, reinsurance, or financing

13 issued under chapter 1 of title V shall not exceed the dol14 lar value, as of the date of the investment, of the invest15 ment made in the project with the approval of the Cor16 poration plus interest, earnings, or profits actually ac17 crued on such investment to the extent provided by such

18 insurance, reinsurance, or guarantee, except that the Cor19 poration may provide that—

20 (1) appropriate adjustments in the insured dol21 lar value may be made to reflect the replacement

22 cost of project assets;

23 (2) compensation for a claim of loss under in24 surance of an equity investment may be computed
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1 on the basis of the net book value attributable to

2 such equity investment on the date of loss; and

3 (3) compensation for loss due to business inter4 ruption may be computed on a basis to be deter5 mined by the Corporation which reflects amounts

6 lost.

7 Notwithstanding the preceding sentence, the Corporation

8 shall limit the amount of direct insurance and reinsurance

9 issued under section 5102 or 5103 so that risk of loss

10 as to at least 10 percent of the total investment of the

11 insured and its affiliates in the project is borne by the

12 insured and such affiliates, except that this limitation

13 shall not apply to direct insurance or reinsurance of loans

14 by banks or other financial institutions to unrelated par15 ties.

16 (g) LIMITATION WITH RESPECT TO FOREIGN CRED17 IT INSTITUTIONS.—Insurance, guarantees, or reinsurance

18 of a loan or equity investment of an eligible investor in

19 a foreign bank, finance company, or other credit institu20 tion shall extend only to such loan or equity investment

21 and not to any individual loan or equity investment made

22 by such foreign bank, finance company, or other credit in23 stitution.

24 (h) SETTLEMENT AND ARBITRATION OF CLAIMS.—

25 Claims arising as a result or insurance, reinsurance, or
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1 guarantee operations under chapter 1 of title V or under

2 predecessor guarantee authority may be settled, and dis3 putes arising as a result thereof may be arbitrated with

4 the consent of the parties, on such terms and conditions

5 as the Corporation may determine. Payment made pursu6 ant to any such settlement, or as a result of an arbitration

7 award, shall be final and conclusive notwithstanding any

8 other provision of law.

9 (i) CONTRACTS PRESUMED TO COMPLY WITH

10 ACT.—Each insurance, reinsurance, or guarantee contract

11 executed by such officer or officers as may be designated

12 by the Board shall be conclusively presumed to be issued

13 in compliance with the requirements of this Act.

14 (j) PENALTIES FOR FRAUD.—Whoever knowingly

15 makes any false statement or report, or willfully

16 overvalues any land, property, or security, for the purpose

17 of influencing in any way the action of the Corporation

18 with respect to any insurance, reinsurance, guarantee,

19 loan, equity investment, or other activity of the Corpora20 tion under section 5102 or any change or extension of any

21 such insurance, reinsurance, guarantee, loan, equity in22 vestment, or activity, by renewal, deferment of action or

23 otherwise, or the acceptance, release, or substitution of se24 curity therefor, shall be fined not more than $1,000,000

25 or imprisoned not more than 30 years, or both.
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1 (k) USE OF LOCAL CURRENCIES.—Direct loans or

2 investments made in order to preserve the value of funds

3 received in inconvertible foreign currency by the Corpora4 tion as a result of activities conducted pursuant to section

5 5102(a) shall not be considered in determining whether

6 the Corporation has made or has outstanding loans, guar7 anties, or investments to the extent of any limitation on

8 obligations, commitments, and equity investment imposed

9 by or pursuant to chapter 1 of title V. The provision of

10 section 504(b) of the Federal Credit Reform Act of 1990

11 shall not apply to direct loan obligations made with funds

12 described in this subsection.

13 (l) TERMINATION.—Provisions of this or any other

14 Act requiring the termination of assistance under this or

15 any other Act shall not be construed to require the termi16 nation of contracts or commitments that were entered or

17 were being processed under chapter 1 of title V prior to

18 the effective date of the termination of assistance.

19 SEC. 8545. GENERAL PROVISIONS AND POWERS.

20 (a) PRINCIPAL OFFICE.—The Corporation shall have

21 its principal office in the District of Columbia and shall

22 be deemed, for purposes of venue in civil actions, to be

23 a resident of the District of Columbia.

24 (b) AUDITS.—
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1 (1) IN GENERAL.—The Corporation shall be

2 subject to the applicable provisions of chapter 91 of

3 title 31, United States Code, except as otherwise

4 provided in this Act.

5 (2) INDEPENDENT AUDIT.—An independent

6 certified public accountant shall perform a financial

7 and compliance audit of the financial statements of

8 the Corporation each year, in accordance with gen9 erally accepted Government auditing standards for a

10 financial and compliance audit. The independent cer11 tified public accountant shall report the results of

12 such audit to the Board. The financial statements of

13 the Corporation shall be presented in accordance

14 with generally accepted accounting principles. These

15 financial statements and the report of the account16 ant shall be included in a report which contains, to

17 the extent applicable, the information identified in

18 section 9106 of title 31, United States Code, and

19 which the Corporation shall submit to the Congress

not later than 61 20 ⁄2 months after the end of the last

21 fiscal year covered by the audit. The Comptroller

22 General may review the audit conducted by the ac23 countant and report to the Congress in the manner

24 and at such times as the Comptroller General con25 siders necessary.
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1 (3) AUDIT BY COMPTROLLER GENERAL.—The

2 Comptroller General shall, if the Comptroller Gen3 eral considers it necessary or upon the request of the

4 Congress, audit the financial statements of the Cor5 poration in the manner provided in paragraph (2).

6 (4) AVAILABILITY OF INFORMATION.—All

7 books, accounts, financial records, reports, files,

8 work papers, and property belonging to or in use by

9 the Corporation and the accountant who conducts

10 the audit under paragraph (2), which are necessary

11 for purposes of this subsection, shall be made avail12 able to the representatives of the General Account13 ing Office designated by the Comptroller General.

14 (c) POWERS.—To carry out the purposes of chapter

15 1 of title V, the Corporation is authorized—

16 (1) to adopt and use a corporate seal, which

17 shall be judicially noticed;

18 (2) to sue and be sued in its corporate name;

19 (3) to adopt, amend, and repeal bylaws govern20 ing the conduct of its business and the performance

21 of the powers and duties granted to or imposed upon

22 it by law;

23 (4) to acquire, hold, or dispose of, upon such

24 terms and conditions as the Corporation may deter-
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1 mine, any property, real, personal, or mixed, tan2 gible or intangible, or any interest therein;

3 (5) to invest funds derived from fees and other

4 revenues in obligations of the United States and to

5 use the proceeds therefrom, including earnings and

6 profits, as it considers appropriate;

7 (6) to indemnify directors, officers, employees,

8 and agents of the Corporation for liabilities and ex9 penses incurred in connection with their Corporation

10 activities;

11 (7) to require bonds of officers, employees, and

12 agents and to pay the premiums therefor;

13 (8) notwithstanding any other provision of law,

14 to represent itself or to contract for representation

15 in all legal and arbitral proceedings;

16 (9) to enter into limited-term contracts with na17 tionals of the United States for personal services to

18 carry out activities in the United States and abroad

19 under section 5102;

20 (10) to purchase, discount, rediscount, sell, and

21 negotiate, with or without its endorsement or guar22 antee, and guarantee notes, participation certifi23 cates, and other evidence of indebtedness (except

24 that the Corporation shall not issue its own securi25 ties, except participation certificates for the purpose
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1 of carrying out section 5101(c)(3), participation cer2 tificates in connection with transactions authorized

3 by 5102(b), or participation certificates as evidence

4 of indebtedness held by the Corporation in connec5 tion with settlement of claims under section

6 8544(h));

7 (11) to make and carry out such contracts and

8 agreements as are necessary and advisable in the

9 conduct of its business;

10 (12) to exercise any priority of the government

11 of the United States in collecting debts from the es12 tates of bankrupt, insolvent, or decedent parties;

13 (13) to determine the character of and the ne14 cessity for its obligations and expenditures, and the

15 manner in which they shall be incurred, allowed, and

16 paid, subject to provisions of law specifically applica17 ble to Government corporations;

18 (14) to collect or compromise any obligations

19 assigned to or held by the Corporation, including

20 any legal or equitable rights accruing to the Cor21 poration; and

22 (15) to take such actions as may be necessary

23 or appropriate to carry out the powers of the Cor24 poration.

25 (d) INSPECTOR GENERAL.—
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1 (1) AUTHORITY.—The Inspector General of the

2 United States Agency for International Development

3 may conduct audits, investigations, and inspections

4 of all phases of the Corporation’s operations and ac5 tivities.

6 (2) RELATION TO PRESIDENT OF CORPORA7 TION.—The Inspector General shall report to and be

8 under the general supervision of the President of the

9 Corporation with respect to activities undertaken

10 pursuant to this subsection, except that the Presi11 dent of the Corporation shall not prevent or prohibit

12 the Inspector General from initiating, carrying out,

13 or completing any such activity in accordance with

14 the duties, authorities, and responsibilities contained

15 in the Inspector General Act of 1978 and any other

16 applicable law or regulation.

17 (3) EXPENSES.—The Inspector General shall be

18 reimbursed by the Corporation for all expenses in19 curred by the Inspector General in connection with

20 the Inspector General’s responsibilities under this

21 subsection.

22 (4) INSPECTOR GENERAL ACT.—For purposes

23 of the Inspector General Act of 1978, the Corpora24 tion shall continue to be considered a Federal entity
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1 and the President of the Corporation shall be consid2 ered the head of the Federal entity.

3 (5) SEMIANNUAL REPORT.—The semiannual re4 port required under section 5 of the Inspector Gen5 eral Act of 1978 shall include information relating

6 to activities of the Inspector General undertaken

7 pursuant to this subsection.

8 (e) EXEMPTION FROM STATE AND LOCAL TAX9 ATION.—The Corporation (including its franchise, capital,

10 reserves, surplus, advances, intangible property, and in11 come) shall be exempt from all taxation at any time im12 posed by any State, the District of Columbia, or any coun13 ty, municipality, or local taxing authority.

14 SEC. 8546. ANNUAL REPORT; MAINTENANCE OF INFORMA15 TION.

16 (a) ANNUAL REPORT.—After the end of each fiscal

17 year, the President shall submit to the Congress a com18 plete and detailed report of the Corporation’s operations

19 during such fiscal year. Such report shall include—

20 (1) an assessment, based upon the development

21 impact profiles required by section 5105(a), of the

22 economic and social development impact and benefits

23 of the projects with respect to which such profiles

24 are prepared, and of the extent to which the oper25 ations of the Corporation complement or are com-
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1 patible with the development assistance programs of

2 the United States and other donors; and

3 (2) a description of any project for which the

4 Corporation refused to provide any insurance, rein5 surance, financing, or other financial support, on ac6 count of violations of human rights referred to in

7 section 8543(d).

8 (b) PROJECTIONS OF EFFECTS ON EMPLOYMENT.—

9 (1) IN GENERAL.—Each annual report required

10 by subsection (a) shall contain projections of the ef11 fects on employment in the United States of all

12 projects for which, during the fiscal year covered by

13 the report, the Corporation initially issued any in14 surance, reinsurance, or guarantee or provided fi15 nancing. Each such report shall include projections

16 of—

17 (A) the amount of United States exports to

18 be generated by those projects, both during the

19 start-up phase and over a period of years;

20 (B) the final destination of the products to

21 be produced as a result of those projects; and

22 (C) the impact such production will have

23 on the production of similar products in the

24 United States with regard to both domestic

25 sales and exports.
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1 (2) INFORMATION IN AGGREGATE FORM.—The

2 projections required by this subsection shall be based

3 on an analysis of each of the projects described in

4 paragraph (1). Such projections may, however,

5 present information and analysis in aggregate form,

6 but only if—

7 (A) those projects which are projected to

8 have a positive effect on employment in the

9 United States and those projects which are pro10 jected to have a negative effect on employment

11 in the United States are grouped separately;

12 and

13 (B) there is set forth for each such group14 ing the key characteristics of the projects within

15 that grouping, including the number of projects

16 in each economic sector, the countries in which

17 the projects in each economic sector are located,

18 and the projected level of the impact of the

19 projects in each economic sector on employment

20 in the United States and on United States

21 trade.

22 (c) MAINTENANCE OF INFORMATION.—The Corpora23 tion shall maintain as part of its records—

24 (1) all information collected in preparing the re25 port required by section 240A(c) of the Foreign As-
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1 sistance Act of 1961 (as in effect before the enact2 ment of the Overseas Private Investment Corpora3 tion Amendments Act of 1988), whether the infor4 mation was collected by the Corporation itself or by

5 a contractor; and

6 (2) a copy of the analysis of each project ana7 lyzed in preparing the projections required by sub8 section (b) of this section or the report required by

9 section 240A(c) of the Foreign Assistance Act of

10 1961 (as in effect before the enactment of the Over11 seas Private Investment Corporation Amendments

12 Act of 1988).

13 (d) PROTECTION OF CERTAIN INFORMATION.—Sub14 section (b) does not require the inclusion in any informa15 tion submitted pursuant to that subsection of any infor16 mation which would not be required to be made available

17 to the public pursuant to section 552 of title 5, United

18 States Code (relating to freedom of information).

19 SEC. 8547. DEFINITIONS.

20 As used in chapter 1 of title V and this subchapter,

21 the following terms have the following meanings:

22 (1) BOARD.—The term ‘‘Board’’ means the

23 Board of Directors of the Overseas Private Invest24 ment Corporation.
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1 (2) CORPORATION.—The term ‘‘Corporation’’

2 means the Overseas Private Investment Corporation.

3 (3) ELIGIBLE INVESTOR.—(A) The term ‘‘eligi4 ble investor’’ means—

5 (i) a United States citizen;

6 (ii) a corporation, partnership, or other as7 sociation, including a nonprofit association,

8 which is created under the laws of the United

9 States, any State, the District of Columbia, or

10 any commonwealth, territory, or possession of

11 the United States, and which is substantially

12 beneficially owned by United States citizens;

13 and

14 (iii) a foreign corporation, partnership, or

15 other association which is wholly owned by one

16 or more United States citizens or corporations,

17 partnerships, or other associations described in

18 clause (ii), except that the eligibility of any such

19 foreign corporation shall be determined without

20 regard to any shares held by other than United

21 States citizens or corporations, partnerships, or

22 other associations described in clause (ii) if, in

23 the aggregate, such shares equal less than 5

24 percent of the total issued and subscribed share

25 capital of such foreign corporation.
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1 (B) For purposes of subparagraph (A)—

2 (i) in the case of insurance or a guarantee

3 for any loan investment, a final determination

4 of whether a person is an eligible investor may

5 be made at the time the insurance or guarantee

6 is issued; and

7 (ii) in the case of insurance or a guarantee

8 for any other investment, an investor must be

9 an eligible investor at the time a claim arises as

10 well as the time the insurance or guarantee is

11 issued.

12 (4) EXPROPRIATION.—The term ‘‘expropria13 tion’’ includes any abrogation, repudiation, or im14 pairment by a foreign government of its own con15 tract with an investor with respect to a project,

16 where such abrogation, repudiation, or impairment

17 is not caused by the investor’s own fault or mis18 conduct, and materially adversely affects the contin19 ued operation of the project.

20 (5) INVESTMENT.—The term ‘‘investment’’ in21 cludes any contribution or commitment of funds,

22 commodities, services, patents, processes, or tech23 niques, in the form of—

24 (A) a loan or loans to an approved project,
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1 (B) the purchase of a share of ownership

2 in any such project,

3 (C) participation in royalties, earnings, or

4 profits of any such project, and

5 (D) the furnishing of commodities or serv6 ices pursuant to a lease or other contract.

7 (6) PREDECESSOR GUARANTEE AUTHORITY.—

8 The term ‘‘predecessor guarantee authority’’ means

9 prior guarantee authorities (other than housing

10 guarantee authorities) repealed by the Foreign As11 sistance Act of 1969, sections 202(b) and 413(b) of

12 the Mutual Security Act of 1954, and section

13 111(b)(3) of the Economic Cooperation Act of 1948

14 (exclusive of authority relating to informational

15 media guarantees).

16 Subchapter E—Definitions and Miscellaneous Provisions

17 SEC. 8551. DEFINITIONS.

18 (a) For purposes of this Act, the following terms have

19 the following meanings:

20 (1) AGENCY OF THE UNITED STATES GOVERN21 MENT.—The term ‘‘agency of the United States

22 Government’’ includes any agency, department,

23 board, wholly or partly owned corporation, instru24 mentality, commission, or establishment of the Unit25 ed States Government.
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1 (2) COUNTRY.—The term ‘‘country’’ includes

2 area.

3 (3) DEVELOPING COUNTRY.—The term ‘‘devel4 oping country’’ includes advanced developing coun5 try.

6 (4) FUNCTION.—The term ‘‘function’’ includes

7 any duty, obligation, power, authority, responsibility,

8 right, privilege, discretion, or activity.

9 (5) GROSS VIOLATIONS OF INTERNATIONALLY

10 RECOGNIZED HUMAN RIGHTS.—The term ‘‘gross vio11 lations of internationally recognized human rights’’

12 includes torture or cruel, inhuman, or degrading

13 treatment or punishment, prolonged detention with14 out charges and trial, causing the disappearance of

15 persons by the abduction and clandestine detention

16 of those persons, and other flagrant denial of the

17 right to life, liberty, or the security of person.

18 (6) INCLUDES.—The term ‘‘includes’’ means in19 cludes but is not limited to.

20 (7) NOTWITHSTANDING.—The terms ‘‘notwith21 standing any other provision of law’’ and ‘‘notwith22 standing any provision of this or any other Act’’

23 shall not apply to title 31, United States Code, the

24 Congressional Budget and Impoundment Control

25 Act of 1974, the Balanced Budget and Emergency
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1 Deficit Control Act of 1985, and the Budget En2 forcement Act of 1990.

3 (8) OFFICER OR EMPLOYEE.—The term ‘‘offi4 cer or employee’’ means civilian personnel of the

5 United States Government and members of the

6 Armed Forces.

7 (9) NONNUCLEAR-WEAPON STATE.—The term

8 ‘‘nonnuclear-weapon state’’ means any country

9 which is not a nuclear-weapon state, as defined in

10 article IX(3) of the Treaty on the Non-Proliferation

11 of Nuclear Weapons.

12 (10) UNITED STATES.—The term ‘‘United

13 States’’, when used in the geographic sense, includes

14 the Commonwealth of Puerto Rico, the Common15 wealth of the Northern Mariana Islands, Guam,

16 American Samoa, the Virgin Islands, and any other

17 territory or possession of the United States.

18 (11) MAJOR ILLICIT DRUG PRODUCING COUN19 TRY.—The term ‘‘major illicit drug producing coun20 try’’ means a country producing five metric tons or

21 more of opium or opium derivative during a fiscal

22 year or producing five hundred metric tons or more

23 of coca or marijuana (as the case may be) during a

24 fiscal year.
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1 (12) MAJOR DRUG TRANSIT COUNTRY.—The

2 term ‘‘major drug transit country’’ means a coun3 try—

4 (A) that is a significant direct source of il5 licit narcotic or psychotropic drugs or other

6 controlled substances significantly affecting the

7 United States;

8 (B) through which are transported such

9 drugs or substances; or

10 (C) through which significant sums of

11 drug-related profits or monies are laundered

12 with the knowledge or complicity of the govern13 ment.

14 (13) NARCOTIC AND PSYCHOTROPIC DRUGS

15 AND OTHER CONTROLLED SUBSTANCES.—The term

16 ‘‘narcotic and psychotropic drugs and other con17 trolled substances’’ has the same meaning as is

18 given by any applicable international narcotics con19 trol agreement or domestic law of the country or

20 countries concerned.

21 (14) AGRICULTURE.—The term ‘‘agriculture’’

22 includes aquaculture and fisheries.

23 (15) FARMERS.—The term ‘‘farmers’’ includes

24 fishermen and other persons employed in cultivating
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1 and harvesting food resources from salt and fresh

2 waters.

3 (16) INSTITUTION OF HIGHER EDUCATION.—

4 The term ‘‘institution of higher education’’ has the

5 same meaning that term is given by section 1201(a)

6 of the Higher Education Act of 1965.

7 (17) ARMED FORCES.—The term ‘‘Armed

8 Forces’’ means the Army, Navy, Air Force, Marine

9 Corps, and Coast Guard of the United States.

10 (18) DEFENSE ARTICLE AND RELATED

11 TERMS.—The terms ‘‘defense article’’, ‘‘significant

12 military equipment’’ and ‘‘major defense equipment’’

13 shall have the same meaning as in the Arms Export

14 Control Act. The term ‘‘defense service’’ includes

15 any service (including education and training), test,

16 inspection, repair, publication, or technical or other

17 assistance or defense information used for the pur18 pose of furnishing assistance administered through

19 the Department of Defense under this Act.

20 (19) EXCESS DEFENSE ARTICLES.—The term

21 ‘‘excess defense articles’’ means the quantity of de22 fense articles owned by the United States Govern23 ment, and not procured in anticipation of defense

24 assistance or sales requirements, or pursuant to a

25 defense assistance or sales order, which is in excess
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1 of the Approved Acquisition Objective of all Depart2 ment of Defense Components at the time such arti3 cles are dropped from inventory by the supplying

4 agency for delivery to countries or international or5 ganizations under this Act.

6 (20) VALUE.—The term ‘‘value’’ means—

7 (A) with respect to an excess defense arti8 cle, the actual value of the article plus the gross

9 cost incurred by the United States Government

10 in repairing, rehabilitating, or modifying the ar11 ticle, except that for purposes of section

12 8201(c) such actual value shall not be taken

13 into account;

14 (B) with respect to a nonexcess defense ar15 ticle delivered from inventory to a foreign coun16 try or international organization under this Act,

17 the acquisition cost to the United States Gov18 ernment, adjusted as appropriate for condition

19 and market value;

20 (C) with respect to a nonexcess defense ar21 ticle delivered from new procurement to a for22 eign country or international organization

23 under this Act, the contract or production costs

24 of such article.
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1 (21) ASSISTANCE ADMINISTERED THROUGH

2 THE DEPARTMENT OF DEFENSE.—The term ‘‘assist3 ance administered through the Department of De4 fense’’ means—

5 (A) the financing (including the guarantee

6 of financing) of sales of defense articles (includ7 ing excess defense articles) and defense services

8 (including education and training) made or li9 censed pursuant to sections 21, 22, 29, and 38

10 of the Arms Export Control Act and the lease

11 of defense articles made pursuant to chapter 6

12 of that Act;

13 (B) the provision of education or training

14 through the Department of Defense under this

15 Act;

16 (C) the provision of excess defense articles

17 through the Department of Defense under sec18 tion 8405 of this Act; or

19 (D) the provision of assistance through the

20 Department of Defense under sections 3103,

21 3204, 7111 and 7115(b) of this Act.

22 SEC. 8552. ACTIVITIES UNDER OTHER LAWS NOT AF23 FECTED.

24 Unless expressly provided to the contrary, provisions

25 of this Act and other provisions of law applicable to for-
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1 eign assistance shall not be construed to prohibit (or, with

2 respect to the Export-Import Bank of the United States,

3 apply to) activities authorized by or conducted under the

4 Peace Corps Act, the United States Information and Edu5 cational Exchange Act of 1948, the Mutual Educational

6 and Cultural Exchange Act of 1961, the Export-Import

7 Bank Act of 1945, the Agricultural Act of 1949, the Agri8 cultural Trade Development and Assistance Act of 1954,

9 the Food for Progress Act of 1985, the Inter-American

10 Foundation Act, the African Development Foundation

11 Act, commercial export promotion activities of the Depart12 ment of Agriculture (including the Commodity Credit Cor13 poration), or to programs for which funds are made avail14 able outside Budget Function 150.

15 TITLE IX—TECHNICAL AND CONFORMING

16 PROVISIONS

17 SEC. 9101. EFFECTIVE DATE.

18 Except as otherwise provided in this Act, the provi19 sions of this Act shall take effect on October 1, 1994.

20 SEC. 9102. SAVINGS PROVISIONS.

21 (a) IN GENERAL.—(1) Except as may be expressly

22 provided to the contrary in this Act, all determinations,

23 authorizations, regulations, orders, contracts, agreements,

24 and other actions issued, undertaken, or entered into

25 under authority of any provision of law repealed by this
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1 Act shall continue in full force and effect until modified

2 by appropriate authority.

3 (2) Wherever provisions of this Act establish condi4 tions which must be complied with before use may be

5 made of authority contained in, or funds made available

6 to carry out the provisions of, this Act, compliance with,

7 or satisfaction of, substantially similar conditions under

8 provisions repealed by this Act shall be deemed to con9 stitute compliance with the conditions established by this

10 Act.

11 (3) Funds made available pursuant to provisions of

12 law repealed by this Act shall, unless otherwise authorized

13 or provided by law, remain available for their original pur14 poses in accordance with the provisions of law originally

15 applicable thereto, or in accordance with the provisions of

16 law currently applicable to those purposes.

17 (4) References in law to provisions repealed by this

18 Act may hereafter be deemed to be references to cor19 responding provisions of this Act, on a case-by-case basis

20 as may be appropriate.

21 (b) CERTAIN PRESIDENTIAL APPOINTEES.—The re22 peal by this Act of any provision of the Foreign Assistance

23 Act of 1961 providing for the appointment of an individual

24 to a position by the President, by and with the advice and

25 consent of the Senate, and the reenactment by this Act
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1 of that provision in substantively identical form does not

2 require the reappointment of the individual holding that

3 position on the effective date specified in section 9101.

4 (c) SECTION 124(c) AUTHORITY.—Section 124(c) of

5 the Foreign Assistance Act of 1961, as in effect before

6 the effective date specified in section 9101 of this Act,

7 shall be deemed to remain in effect on and after that date.

8 For purposes of this section, references in section 124(c)

9 to sections 101 and 102 of the Foreign Assistance Act

10 of 1961 shall be deemed to be references to sections 1101

11 and 1102 of this Act, respectively.

12 (d) GUARANTEES AND LOANS UNDER FORMER AU13 THORITY.—Guarantees committed or outstanding under

14 the former authorities of sections 108, 222, and 222A of

15 the Foreign Assistance Act of 1961, as in effect before

16 the effective date specified in section 9101 of this Act,

17 loans obligated under section 108 on or before such date,

18 the fees and interest collected in connection with such

19 guarantees and loans, and income on claims receivable

20 with respect to such guarantees and loans, shall continue

21 to be subject to provisions of such Act originally applicable

22 to those guarantees and loans and the Federal Credit Re23 form Act of 1990.

24 SEC. 9103. MISCELLANEOUS PROVISIONS.

25 (a) FEDERAL ACT OF STATE DOCTRINE.—
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1 (1) IN GENERAL.—Notwithstanding any other

2 provision of law, no court in the United States shall

3 decline on the ground of the federal act of state doc4 trine to make a determination on the merits giving

5 effect to the principles of international law in a case

6 in which claim of title or other right to property is

7 asserted by any party, including a foreign state (or

8 a party claiming through such state), based upon (or

9 traced through) a confiscation or other taking after

10 January 1, 1959, by an act of that state in violation

11 of the principles of international law, including the

12 principles of compensation and the other standards

13 set out in section 620(e)(1) of the Foreign Assist14 ance Act of 1961 as in effect before the effective

15 date of this section.

16 (2) EXCEPTIONS.—This subsection shall not be

17 applicable—

18 (A) in any case in which an act of a for19 eign state is not contrary to international law

20 or with respect to a claim of title or other right

21 to property acquired pursuant to an irrevocable

22 letter of credit of not more than 180 days dura23 tion issued in good faith prior to the time of the

24 confiscation or other taking; or
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1 (B) in any case with respect to which the

2 President determines that application of the act

3 of state doctrine is required in that particular

4 case by the foreign policy interests of the Unit5 ed States and a suggestion to this effect is filed

6 on his behalf in that case with the court.

7 (b) ACCOUNTING AND VALUATION OF FOREIGN CUR8 RENCIES.—

9 (1) Under the direction of the President, the

10 Secretary of the Treasury shall have responsibility

11 for valuation and central accounting with respect to

12 foreign credits (including currencies) owed to or

13 owned by the United States. In order to carry out

14 such responsibility, the Secretary shall issue regula15 tions binding upon all agencies of the United States

16 Government.

17 (2) The Secretary of the Treasury shall have

18 sole authority to establish for all foreign currencies

19 or credits the exchange rates at which such cur20 rencies are to be reported by all agencies of the Gov21 ernment.

22 (c) VALUATION OF EXPROPRIATED PROPERTY.—

23 (1) VALUATION.—If the President requests

24 such an evaluation, the Foreign Claims Settlement

25 Commission is authorized to evaluate the value of
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1 the property which is the subject of an action de2 scribed in section 7201(a)(3) of this Act and render

3 an advisory report with respect to the value of such

4 property to the President.

5 (2) DEFINITION OF UNITED STATES PERSON.—

6 For purposes of section (a)(3), the term ‘United

7 States person’ means a United States citizen or a

8 corporation, partnership, or association at least 50

9 percent beneficially owned by United States citizens.

10 (d) PARTICIPATION IN FOREIGN POLICE ACTIONS.—

11 (1) PROHIBITION ON EFFECTING AN ARREST.—

12 No officer or employee of the United States may di13 rectly effect an arrest in any foreign country as part

14 of any foreign police action with respect to narcotics

15 control efforts, notwithstanding any other provision

16 of law.

17 (2) EXCEPTIONS.—Paragraph (1) does not pro18 hibit an officer or employee of the United States—

19 (A) with the approval of the United States

20 chief of mission, from being present when for21 eign officers are effecting an arrest or from as22 sisting foreign officers who are effecting an

23 arrest.

24 (B) from taking direct action to protect

25 life or safety if exigent circumstances arise
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1 which are unanticipated and which pose an im2 mediate threat to United States officers or em3 ployees, officers or employees of a foreign gov4 ernment, or members of the public.

5 (3) MARITIME LAW ENFORCEMENT.—With the

6 agreement of a foreign country, paragraph (1) does

7 not apply with respect to maritime law enforcement

8 operations in the territorial sea of that country.

9 (4) INTERROGATIONS.—No officer or employee

10 of the United States may interrogate or be present

11 during the interrogation of any United States person

12 arrested in any foreign country with respect to nar13 cotics control efforts without the written consent of

14 such person.

15 (5) EXCEPTION FOR STATUS OF FORCES AR16 RANGEMENTS.—This section does not apply to the

17 activities of the United States Armed Forces in car18 rying out their responsibilities under applicable Sta19 tus of Forces arrangements.

20 (6) DEFINITION.—For purposes of this sub21 section, the term ‘‘legal and law enforcement meas22 ures’’ means—

23 (A) the enactment and implementation of

24 laws and regulations or the implementation of

25 existing laws and regulations to provide for the
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1 progressive control, reduction, and gradual

2 elimination of the illicit cultivation, production,

3 processing, transportation, and distribution of

4 narcotic drugs and other controlled substances;

5 and

6 (B) the effective organization, staffing,

7 equipping, funding, and activation of those gov8 ernmental authorities responsible for narcotics

9 control.

10 SEC. 9104. CONFORMING AND OTHER AMENDMENTS.

11 (a) TITLE 5, UNITED STATES CODE.—Subchapter II

12 of chapter 53 of title 5, United States Code, is amended—

13 (1) in section 5314, by striking out ‘‘Director,

14 Institute for Scientific and Technological Coopera15 tion.’’;

16 (2) in section 5315, by striking out ‘‘Deputy

17 Director, Institute for Scientific and Technological

18 Cooperation.’’; and

19 (3) in section 5316, by striking out ‘‘Additional

20 officers, Institute for Scientific and Technological

21 Cooperation (2).’’.

22 (b) TITLE 15, UNITED STATES CODE.—Section

23 638(e)(1) of title 15, United States Code is amended by

24 striking out ‘‘for the Agency’’ through ‘‘countries’’ and in25 serting in lieu thereof ‘‘the provisions of this section shall
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1 not be applicable to the programs administered by the

2 United States Agency for International Development’’.

3 (c) ARMS EXPORT CONTROL ACT—The Arms Export

4 Control Act is amended as follows:

5 (1) Section 2(b) is amended by striking out—

6 (A) ‘‘or financing for’’ in paragraph (1);

7 and

8 (B) ‘‘financing,’’ both other places it ap9 pears.

10 (2) Section 3(c) is amended—

11 (A) in paragraph (1), by striking out

12 ‘‘(1)(A) No’’ and all that follows through ‘‘(B)

13 No cash’’ and inserting in lieu thereof ‘‘(1)

14 No’’;

15 (B) in paragraph (1), as amended by sub16 paragraph (A), by striking out ‘‘under this Act,

17 or any predecessor Act,’’ and inserting in lieu

18 thereof ‘‘, through sale, financing or otherwise,

19 under this Act or the Peace, Prosperity, and

20 Democracy Act of 1994 (or under any prede21 cessor military sales or foreign assistance

22 legislation)’’;

23 (C) in paragraph (3)(A), by striking out

24 ‘‘subparagraph (A)’’ and all that follows
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1 through ‘‘such paragraphs,’’ and inserting in

2 lieu thereof ‘‘paragraph (1)’’; and

3 (D) in paragraph (3)(B), by striking out

4 ‘‘subparagraph (B) of’’.

5 (3) Section 3 is amended—

6 (A) in subsection (d), by striking out ‘‘sec7 tion 505(a)(1) or 505(a)(4) of the Foreign As8 sistance Act of 1961’’ and inserting in lieu

9 thereof ‘‘section 8212(a)(1) of the Peace, Pros10 perity, and Democracy Act of 1994’’; and

11 (B) in subsection (e), by striking out ‘‘sec12 tion 505 of the Foreign Assistance Act of

13 1961’’ and inserting in lieu thereof ‘‘section

14 8212(a)(1) of the Peace, Prosperity, and De15 mocracy Act of 1994’’.

16 (4) Section 4 is amended by inserting after

17 ‘‘such friendly countries’’ ‘‘or, if financed with as18 sistance furnished under the Peace, Prosperity, and

19 Democracy Act of 1994, for such other purposes as

20 are provided for under that Act’’.

21 (5) Section 5(a) is amended by striking out ‘‘,

22 and no credits (including participations in credits) or

23 guaranties extended to or for’’ and inserting in lieu

24 thereof ‘‘to’’.

25 (6) Section 6 is amended—
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1 (A) by striking out ‘‘, no credits or guaran2 tees may be extended,’’; and

3 (B) by inserting ‘‘and no assistance admin4 istered through the Department of Defense may

5 be furnished under the Peace, Prosperity, and

6 Democracy Act of 1994’’ after ‘‘this Act’’.

7 (7) Section 21 is amended—

8 (A) by amending (a)(1)(c) to read as fol9 lows, ‘‘in the case of the sale of a defense serv10 ice, the full cost to the United States Govern11 ment of furnishing such service, except that in

12 the case of training sold to a purchaser that is

13 concurrently receiving assistance under the

14 Peace, Prosperity, and Democracy Act of 1994

15 or is separately justified for the fiscal year in

16 which the associated letter of offer is issued,

17 only those additional costs that are incurred by

18 the United States in furnishing such training’’;

19 (B) by amending subsection (c)(1) to read

20 as follows:

21 ‘‘(A) Members of the Armed Forces as22 signed or detailed to provide defense services

23 under this Act may not perform duties of a

24 combatant nature, including any duty related to

25 training and advising that may engage United
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1 States Armed Forces personnel in combat ac2 tivities, outside the United States in connection

3 with the performance of those defense services.

4 ‘‘(B) Subparagraph (A) shall not apply if

5 the President determines, and reports to the

6 Congress, that its application would not be in

7 the national interest of the United States.’’; and

8 (C) in subsection (e)—

9 (i) by deleting subparagraph (1)(B);

10 (ii) by deleting ‘‘(C)’’ in subparagraph

11 (1)(c) and inserting in lieu thereof ‘‘(D)’’;

12 (iii) by deleting paragraph (2); and

13 (iv) by deleting ‘‘(3’’ and inserting in

14 lieu thereof ‘‘(2)’’.

15 (8) Section 23 is repealed.

16 (9) Section 24 is amended—

17 (A) by amending the section caption to

18 read ‘‘Provisions Relating to Former Credit and

19 Guaranty Authorities’’;

20 (B) in subsection (a), by striking out

21 ‘‘The’’ in the first sentence and inserting in lieu

22 thereof ‘‘To the extent necessary to carry out

23 the provisions under the heading ‘‘Foreign Mili24 tary Sales Debt Reform’’ in title III of the For25 eign Operations, Export Financing, and Related
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1 Programs Appropriations Act, 1988 (as con2 tained in section 101(e) of Public Law 100–

3 202), the’’;

4 (C) in subsection (b) by inserting ‘‘be5 fore the effective date of the Peace, Pros6 perity, and Democracy Act of 1994’’ after

7 ‘‘section 23’’; and

8 (D) by striking out subsection (c) and

9 inserting in lieu thereof the following:

10 ‘‘(c) The single reserve established under this section

11 for the payment of claims under guarantees issued under

12 the authority of this section may be referred to as the

13 ‘Foreign Military Loan Liquidating Account’.

14 ‘‘(d) Any guarantees issued under the authority of

15 this section are backed by the full faith and credit of the

16 United States.’’.

17 (10) Section 25(a) is amended—

18 (A) in paragraph (5)(A) by striking out

19 ‘‘military education’’ and all that follows

20 through ‘‘guarantees,’’ and inserting in lieu

21 thereof ‘‘and assistance administered through

22 the Department of Defense under the Peace,

23 Prosperity, and Democracy Act of 1994,’’;

24 (B) in paragraph (5)(B) by striking out

25 ‘‘credits or guaranties under this Act’’ and in-
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1 serting in lieu thereof ‘‘assistance administered

2 through the Department of Defense under the

3 Peace, Prosperity, and Democracy Act of

4 1994’’; and

5 (C) in paragraph (11) by inserting before

6 the semicolon at the end of the paragraph the

7 following: ‘‘, and the status of each provision of

8 assistance administered through the Depart9 ment of Defense for the procurement of defense

10 articles or defense services under the Peace,

11 Prosperity, and Democracy Act of 1994 with

12 respect to which there remains outstanding any

13 unpaid obligation or potential liability’’.

14 (11) Section 25(d), as added by 112(b) of the

15 International Security and Development Cooperation

16 Act of 1985, is amended by striking out ‘‘under this

17 Act or under section 503(a)(3) of the Foreign As18 sistance Act of 1961’’ and inserting in lieu thereof

19 ‘‘with assistance administered through the Depart20 ment of Defense under the Peace, Prosperity, and

21 Democracy Act of 1994’’.

22 (12) Section 31 is amended—

23 (A) by striking out ‘‘Authorization and Ag24 gregate Ceiling on Foreign Military Sales Cred-
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1 its.’’ and all that follows through ‘‘(d)’’ and in2 serting in lieu thereof ‘‘Aggregate Costs’’; and

3 (B) by striking out ‘‘of chapter 2 of part

4 II of the Foreign Assistance Act of 1961’’ and

5 inserting in lieu thereof ‘‘the Peace, Prosperity,

6 and Democracy Act of 1994’’.

7 (13) Section 36(a) is amended—

8 (A) in paragraph (7), by striking out

9 ‘‘under chapters 2, 5, 6 or 8 of part II of the

10 Foreign Assistance Act of 1961’’ and inserting

11 in lieu thereof ‘‘assistance administered through

12 the Department of Defense under the Peace,

13 Prosperity, and Democracy Act of 1994’’; and

14 (B) in paragraph (10), by striking out

15 ‘‘section 505(a)(1)(B) of the Foreign Assistance

16 Act of 1961’’ and inserting in lieu thereof ‘‘sec17 tions 8212 and 8213 of the Peace, Prosperity,

18 and Democracy Act of 1994’’.

19 (14) Section 37 is amended—

20 (A) in the section caption by striking out

21 ‘‘Relating to Foreign Military Sales Credits’’;

22 (B) in subsection (a), by striking out ‘‘sec23 tion 23’’ and inserting in lieu thereof ‘‘the

24 former authority of section 23 or under the au-
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1 thority of the Peace, Prosperity, and Democ2 racy Act of 1994’’; and

3 (C) in subsection (b), by inserting ‘‘the

4 former authority of’’ after ‘‘extended pursuant

5 to’’.

6 (15) Section 42 is amended—

7 (A) in subsection (a) by striking out ‘‘, but

8 subject to subsection (b) of this section,’’ in the

9 first sentence and inserting in lieu thereof ‘‘;’’;

10 (B) in subsection (b), by striking out ‘‘No

11 credit sale shall be extended under section 23,

12 and no guarantee shall be issued under section

13 24’’ and inserting in lieu thereof ‘‘No assistance

14 shall be furnished under the Peace, Prosperity,

15 and Democracy Act of 1994 to be administered

16 through the Department of Defense for the fi17 nancing of sales of defense articles or services’’;

18 and

19 (C) in subsection (d)(1), by striking out

20 ‘‘and guaranties under sections 21, 22, 23, 24,’’

21 and inserting in lieu thereof ‘‘under sections 21,

22 22,’’.

23 (16) Section 47(1) is amended by deleting ‘‘sec24 tion 644(g) of the Foreign Assistance Act of 1991’’
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1 and inserting in lieu thereof, ‘‘section 8551(19) of

2 the Peace, Prosperity, and Democracy Act of 1994’’.

3 (d) UNITED STATES AGENCY FOR INTERNATIONAL

4 DEVELOPMENT.—References in any Act to the ‘‘Agency

5 for International Development’’ shall be deemed to be a

6 reference to the United States Agency for International

7 Development.

8 SEC. 9105. TRANSITION RULES FOR MILITARY ASSISTANCE.

9 (a) DISPOSITION OF CERTAIN PREVIOUSLY PRO10 VIDED MILITARY EQUIPMENT.—The President may waive

11 requirements imposed pursuant to sections 505(a)(4) and

12 (f) of the Foreign Assistance Act of 1961, as in effect be13 fore the effective date of this title, with respect to defense

14 articles or related training or other defense services fur15 nished before that date.

16 (b) COMMITMENT OF PRIOR YEAR MILITARY ASSIST17 ANCE.—If the President at any time notifies Congress

18 that no further sales will be made pursuant to the Arms

19 Export Control Act after the date of such notification to

20 a specified country under circumstances then prevailing,

21 any uncommitted funds allocated for such country that

22 were transferred under the authority of section 8202(g)(6)

23 of this Act, the former authority of section 23 of the Arms

24 Export Control Act, and the former authority of section

25 503(a)(3) of the Foreign Assistance Act of 1961 for the
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1 purpose of financing such sales may be committed to fi2 nance such sales to other eligible countries subject to ad3 vance notification to the Committees on Appropriations

4 and Foreign Relations of the Senate and the Committees

5 on Appropriations and Foreign Affairs of the House of

6 Representatives.

7 (c) SALES.—Sales under the Arms Export Control

8 Act which are wholly paid from funds that, prior to the

9 effective date of this Act, were transferred under the

10 former authority of section 503(a)(3) of the Foreign As11 sistance Act of 1961 or were made available on a

12 nonrepayable or grant basis under section 23 of the Arms

13 Export Control Act, shall be priced on the same basis as

14 described in section 8201(d).

15 SEC. 9106. REPEAL OF OBSOLETE PROVISIONS.

16 (a) 1992 JOBS THROUGH EXPORTS ACT.—Title III

17 of the Jobs Through Exports Act of 1992 is repealed.

18 (b) 1988 OPIC ACT.—The Overseas Private Invest19 ment Corporation Amendments Act of 1988 (as enacted

20 by reference by section 555 of the Foreign Operations, Ex21 port Financing, and Related Programs Appropriations

22 Act, 1989) is repealed.

23 (c) 1988 INTERNATIONAL NARCOTICS CONTROL

24 ACT.—The International Narcotics Control Act of 1988

25 is repealed.
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1 (d) 1988 FOREIGN OPERATIONS APPROPRIATIONS

2 ACT.—Section 537(h)(2) of the Foreign Operations, Ex3 port Financing, and Related Programs Appropriations

4 Act, 1988, as included in Public Law 100–202, is re5 pealed.

6 (e) NARCOTICS CONTROL TRADE ACT.—Sections

7 802(e) and 804 of the Narcotics Control Trade Act (which

8 is title VIII of the Trade Act of 1974) are repealed.

9 (f) 1987 FOREIGN ASSISTANCE APPROPRIATIONS

10 ACT.—Section 539(g)(2) of the Foreign Assistance and

11 Related Programs Appropriations Act, 1987, as included

12 in Public Law 99–591, is repealed.

13 (g) 1986 DRUG ACT.—The International Narcotics

14 Control Act of 1986 (which is title II of the Anti-Drug

15 Abuse Act of 1986) is repealed.

16 (h) 1986 ASSISTANCE ACT.—The Special Foreign

17 Assistance Act of 1986 is repealed except for section 1

18 and section 204.

19 (i) 1986 ANGLO-IRISH AGREEMENT SUPPORT ACT.—

20 Section 6 of the Anglo-Irish Agreement Support Act of

21 1986 is repealed.

22 (j) 1985 ASSISTANCE ACT.—The International Secu23 rity and Development Cooperation Act of 1985 is repealed

24 except for section 1, section 131, section 132, section 504,

25 section 505, part B of title V (other than section 558 and
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1 section 559), section 1302, section 1303, and section

2 1304.

3 (k) 1985 JORDAN SUPPLEMENTAL ACT.—The Jor4 dan Supplemental Economic Assistance Authorization Act

5 of 1985 is repealed.

6 (l) 1985 AFRICAN FAMINE ACT.—The African Fam7 ine Relief and Recovery Act of 1985 is repealed.

8 (m) 1983 ASSISTANCE ACT.—The International Se9 curity and Development Assistance Authorization Act of

10 1983 is repealed.

11 (n) 1983 LEBANON ASSISTANCE ACT.—The Lebanon

12 Emergency Assistance Act of 1983 is repealed.

13 (o) 1981 ASSISTANCE ACT.—The International Secu14 rity and Development Cooperation Act of 1981 is repealed

15 except for section 1, section 709, section 714.

16 (p) 1981 OPIC AMENDMENTS ACT.—The OPIC

17 Amendments Act of 1981 is repealed.

18 (q) 1980 ASSISTANCE ACT.—The International Secu19 rity and Development Cooperation Act of 1980 is repealed

20 except for section 1, section 110, section 315, and title

21 V.

22 (r) 1979 DEVELOPMENT ASSISTANCE ACT.—The

23 International Development Cooperation Act of 1979 is re24 pealed.
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1 (s) 1979 SECURITY ASSISTANCE ACT.—The Inter2 national Security Assistance Act of 1979 is repealed.

3 (t) 1979 SPECIAL SECURITY ASSISTANCE ACT.—The

4 Special International Security Assistance Act of 1979 is

5 repealed.

6 (u) 1978 DEVELOPMENT ASSISTANCE ACT.—The

7 International Development and Food Assistance Act of

8 1978 is repealed, except for section 1, title IV, and section

9 603(a)(2).

10 (v) 1978 SECURITY ASSISTANCE ACT.—The Inter11 national Security Assistance Act of 1978 is repealed.

12 (w) 1977 DEVELOPMENT ASSISTANCE ACT.—The

13 International Development and Food Assistance Act of

14 1977 is repealed except for section 1, section 132(b), and

15 section 133.

16 (x) 1977 SECURITY ASSISTANCE ACT.—The Inter17 national Security Assistance Act of 1977 is repealed.

18 (y) 1976 SECURITY ASSISTANCE ACT.—The Inter19 national Security Assistance and Arms Export Control Act

20 is repealed except for section 1, section 201(b), section

21 212(b), section 601, and section 608.

22 (z) 1975 DEVELOPMENT ASSISTANCE ACT.—The

23 International Development and Food Assistance Act of

24 1975 is repealed.
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1 (aa) 1975 BIB ACT.—Public Law 94–104 is re2 pealed.

3 (bb) 1974 ASSISTANCE ACT.—The Foreign Assist4 ance Act of 1974 is repealed.

5 (cc) 1973 EMERGENCY ASSISTANCE ACT.—The

6 Emergency Security Assistance Act of 1973 is repealed.

7 (dd) 1973 ASSISTANCE ACT.—The Foreign Assist8 ance Act of 1973 is repealed.

9 (ee) 1973 DEPARTMENT OF STATE APPROPRIATIONS

10 AUTHORIZATIONACT.—Section 13 of the Department of

11 State Appropriations Authorization Act of 1973 is re12 pealed.

13 (ff) 1971 ASSISTANCE ACT.—The Foreign Assistance

14 Act of 1971 is repealed.

15 (gg) 1971 SPECIAL ASSISTANCE ACT.—The Special

16 Foreign Assistance Act of 1971 is repealed.

17 (hh) 1971 FMS ACT.—The Act entitled ‘‘An Act to

18 amend the Foreign Military Sales Act, and for other pur19 poses’’, approved January 12, 1971 (Public Law 91–672),

20 is repealed.

21 (ii) 1969 ASSISTANCE ACT.—The Foreign Assistance

22 Act of 1969 is repealed except for the first section and

23 part IV.

24 (jj) 1968 ASSISTANCE ACT.—The Foreign Assistance

25 Act of 1968 is repealed.
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1 (kk) 1964 ASSISTANCE ACT.—The Foreign Assist2 ance Act of 1964 is repealed.

3 (ll) Foreign ASSISTANCE ACT OF 1961.—The For4 eign Assistance Act of 1961, as amended, is repealed ex5 cept for the first section, section 226, chapter 11 of part

6 I, and part IV.

7 (mm) LATIN AMERICAN DEVELOPMENT ACT.—The

8 Latin American Development Act is repealed.

9 (nn) 1959 MUTUAL SECURITY ACT.—The Mutual

10 Security Act of 1959 is repealed.

11 (oo) 1954 MUTUAL SECURITY ACT.—Section 402

12 and section 417 of the Mutual Security Act of 1954 are

13 repealed.

14 (pp) 1979 REORGANIZATION PLAN.—Reorganization

15 Plan No. 2 of 1979 is repealed.

16 (qq) FREEDOM SUPPORT ACT.—Section 907 of the

17 FREEDOM Support Act is repealed.

18 (rr) MIGRATION AND REFUGEE ASSISTANCE ACT.—

19 The Migration and Refugee Assistance Act of 1962 is re20 pealed.

21 (ss) 1982–3 STATE AUTHORIZATION ACT.—Section

22 109 of the Department of State Authorization Act, Fiscal

23 Years 1982 and 1983, is repealed.

24 (tt) 1984–5 DEPARTMENT OF STATE AUTHORIZA25 TION ACT.—Sections 1004 and 1005(a) of the Depart-
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1 ment of State Authorization Act, Fiscal Years 1984 and

2 1985, are repealed.

3 (uu) SAVINGS PROVISION.—Except as otherwise pro4 vided in this Act, the repeal by this Act of any provision

5 of law that amended or repealed another provision of law

6 does not affect in any way that amendment or repeal.

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