II

104TH CONGRESS

1ST SESSION S. 422

To authorize the appropriations for international economic and security

assistance.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 15 (legislative day, JANUARY 30), 1995

Mr. MCCONNELL (for himself, Mr. COVERDELL, and Mr. D’AMATO) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations

A BILL

To authorize the appropriations for international economic

and security assistance.

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 ‘‘International Partner5 ship and Prosperity Act of 1995’’.

6 SEC. 2. ORGANIZATION OF ACT AND TABLE OF CONTENTS.

7 (a) ORGANIZATION.—This act is organized into titles

8 as follows:

TITLE I—BILATERAL ECONOMIC ASSISTANCE

TITLE II—SECURITY ASSISTANCE AND RELATED PROGRAMS
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TITLE III—TRADE, INVESTMENT AND EXPORT PROMOTION

TITLE IV—INTERNATIONAL FINANCIAL INSTITUTIONS

TITLE V—MIDDLE EAST

TITLE VI—EUROPE AND THE NEW INDEPENDENT STATES

TITLE VII—SPECIAL AUTHORITIES

TITLE VIII—REPORTS, LIMITATIONS, AND GENERAL PROVISIONS

1 (b) TABLE OF CONTENTS.—The table of contents is

2 as follows:

Sec. 1. Short title.

Sec. 2. Organization of Act and table of contents.

Sec. 3. Statement of United States foreign assistance policy.

TITLE I—BILATERAL ECONOMIC ASSISTANCE

Sec. 101. General policy and objectives.

Sec. 102. International organizations and programs.

Sec. 103. Disaster assistance.

Sec. 104. Migration and refugee assistance.

Sec. 105. Peace corps.

Sec. 106. Authorization of appropriations for economic aid.

Sec. 107. Administrative authority.

TITLE II—SECURITY ASSISTANCE AND RELATED PROGRAMS

Sec. 201. General policy and basic objectives.

Sec. 202. General authority.

Sec. 203. Conditions of eligibility.

Sec. 204. International military education and training.

Sec. 205. Peacekeeping operations.

Sec. 206. Antiterrorism assistance.

Sec. 207. Modernization of defense capabilities.

Sec. 208. Special authority.

Sec. 209. Overseas management of assistance.

Sec. 210. Authorization of appropriation for security assistance and related

programs.

TITLE III—TRADE, INVESTMENT AND EXPORT PROMOTION

Sec. 301. General policy and basic objectives.

Sec. 302. Authority and consolidation of functions.

TITLE IV—INTERNATIONAL FINANCIAL INSTITUTIONS

Sec. 401. Authorization of appropriation.

Sec. 402. Enterprise for the Americas.

TITLE V—MIDDLE EAST

Sec. 501. General policy and basic objectives.

Sec. 502. Camp David accord authorization of appropriation.
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Sec. 503. Middle East Peace Facilitation Act.

Sec. 504. Loan guarantees for Israel.

TITLE VI—EUROPE AND THE NEW INDEPENDENT STATES

Sec. 601. General policy.

Sec. 602. Authorization for appropriation for SEED Act activities.

Sec. 603. Authorization of assistance for the new independent states.

Sec. 604. Eligibility for assistance for new independent states.

Sec. 605. Administrative authorities.

TITLE VII—SPECIAL AUTHORITIES

Sec. 701. Contingencies.

Sec. 702. Transfer between accounts.

Sec. 703. Special waiver authority.

TITLE VIII—REPORTS, LIMITATIONS AND GENERAL PROVISIONS

CHAPTER A—REPORTING REQUIREMENTS

Sec. 801. Report on human rights.

Sec. 802. Report on narcotics control.

Sec. 803. Notification of program changes.

Sec. 804. Annual allocation report.

Sec. 805. Presidential findings and determinations.

CHAPTER B—LIMITATIONS ON ASSISTANCE

Sec. 811. Ineligible countries.

CHAPTER C—ADMINISTRATIVE PROVISIONS

Subchapter 1—Procurement

Sec. 821. Procurement standards and procedures.

Sec. 822. Shipping on United States vessels.

Sec. 823. Retention and use of certain items and funds.

Subchapter 2—Inter-Agency Authorities

Sec. 831. Allocation of funds and reimbursement among agencies.

Sec. 832. Authority to conduct reimbursable programs.

Subchapter 3—General Administration

Sec. 841. General authorities.

Sec. 842. Authorized administrative uses of funds.

Sec. 843. Termination expenses.

Subchapter 4—Personnel

Sec. 851. Employment of personnel.

Sec. 852. Detail of personnel to foreign governments and international organizations.

Sec. 853. Offices abroad.

Subchapter 5—Definitions, Conforming Changes, Repeals

Sec. 861. Definitions.
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Sec. 862. Effective date.

Sec. 863. Savings provisions.

Sec. 864. Conforming amendments.

Sec. 865. Repeal of obsolete provisions.

1 SEC. 3. GENERAL STATEMENT OF UNITED STATES ASSIST2 ANCE POLICY.

3 The Congress finds that American peace and prosper4 ity require the United States to exercise global leadership

5 to advance economic and political freedom. Budgetary con6 straints and the end of the cold war compel a fundamental

7 change in how the United States develops, implements and

8 fulfills its international goals and mandate. Policy, assist9 ance programs, and institutions must be integrated in

10 order to execute a coherent, effective international strat11 egy.

12 Assistance under this Act shall be provided to achieve

13 the following goals:

14 (1) Protect United States security interests.

15 (2) Strengthen United States economic inter16 ests through the promotion of trade, investment, and

17 free market principles.

18 (3) Advance United States interests in stability

19 through the promotion of democratic institutions

20 and the effective management of transnational

21 threats.
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1 TITLE I—BILATERAL ECONOMIC

2 ASSISTANCE

3 SEC. 101. GENERAL POLICY AND OBJECTIVES.

4 (a) GENERAL POLICY.—Development is the respon5 sibility of the citizens of each sovereign nation. In consid6 ering a nation’s request for assistance in carrying out

7 those activities, Congress recognizes that expansion of the

8 private sector produces jobs, income and real economic

9 growth. Nations which emphasize government control and

10 intervention restrict economic opportunity and impede the

11 alleviation of poverty and related health and human crises.

12 (b) BASIC OBJECTIVES.—The President is authorized

13 to provide bilateral economic assistance for the following

14 purposes:

15 (1) To promote economic reforms, conditions,

16 and institutions which contribute to the transition to

17 free markets and democracy.

18 (2) To meet urgent disaster and humanitarian

19 needs.

20 (3) To control transnational threats.

21 (c) ECONOMIC OPPORTUNITY.—United States assist22 ance policy and programs shall take into consideration a

23 nation’s commitment to free market principles. The

24 United States shall provide assistance under subsection
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1 (b)(1) of this section based upon an evaluation of each

2 nation’s progress and plans in the following areas:

3 (1) Limiting the size of the state sector includ4 ing an assessment of policies regarding wage and

5 price controls, state ownership of production and

6 distribution, and control of financial institutions.

7 (2) Encouragement of trade and foreign invest8 ment including an assessment of tariff levels, quotas,

9 and opportunity to repatriate capital and profits.

10 (3) Protection of the private sector including an

11 assessment of general tax policy and rights of own12 ership and property.

13 (d) DEMOCRATIC INSTITUTIONS.—Growth and pros14 perity can best be sustained when all people have the op15 portunity to actively participate in the economic, social,

16 and political life of a nation. United States assistance shall

17 contribute to the strengthening of institutions and organi18 zations which expand political freedom and civil liberty.

19 SEC. 102. INTERNATIONAL ORGANIZATIONS AND PRO20 GRAMS.

21 (a) GENERAL AUTHORITY.—Consistent with the

22 basic objectives in section 102 of this title the President

23 is authorized to make voluntary contributions on a grant

24 basis to international organizations and to programs ad25 ministered by such organizations.
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1 (b) WITHHOLDING OF UNITED STATES SHARE.—

2 Notwithstanding any other provision of law, none of the

3 funds available to carry out this section shall be made

4 available for the United States proportionate share for

5 programs for Iran, Iraq, Libya, Cuba, the Democratic

6 People’s Republic of Korea, or Burma.

7 (c) REPORT.—Beginning on March 15, 1996, and an8 nually thereafter, the Secretary of State shall report to

9 the Committees on Foreign Relations and Appropriations

10 of the Senate and the Committees on International Rela11 tions and Appropriations of the House of Representatives

12 on—

13 (1) the budgets and accounts of all inter14 national organizations receiving payments of any

15 funds available to carry out this section; and

16 (2) the amount of funds expended by each

17 international organization or program including the

18 amount contributed by the United States.

19 (d) AVAILABILITY OF APPROPRIATIONS.—Of the

20 funds appropriated under section 106, up to $200,000,000

21 shall be available to carry out the activities of this section.

22 SEC. 103. DISASTER ASSISTANCE.

23 (a) GENERAL AUTHORITY.—The President is author24 ized to provide assistance under this title, notwithstanding

25 any other provision of law, to alleviate human suffering
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1 caused by man-made and natural disasters, including re2 construction activities arising from such disasters. Em3 phasis should be given to protecting children, the most vul4 nerable population, and may include assistance relating to

5 disaster preparedness, and to the prediction of, and con6 tingency planning for, natural disasters abroad.

7 (b) AVAILABILITY OF APPROPRIATIONS.—Of the

8 funds appropriated under section 106, $170,000,000 shall

9 be available to carry out the activities of this section.

10 SEC. 104. MIGRATION AND REFUGEE ASSISTANCE.

11 (a) GENERAL POLICY.—Record levels of refugees

12 from regional and ethnic conflicts as well as national poli13 cies of persecution continue to strain international re14 sources. Consistent with American humanitarian concerns

15 and traditions, the Congress recognizes the need to pro16 vide assistance in resettling refugees.

17 (b) AVAILABILITY OF APPROPRIATIONS.—Of the

18 funds appropriated under section 106, $721,000,000 shall

19 be available for the purposes of this section, and in accord20 ance with the authorities contained in, the Migration and

21 Refugee Assistance Act of 1962. Of this amount,

22 $80,000,000 shall be provided for refugees from the

23 former Soviet Union, Eastern Europe, and other nations

24 resettling in Israel.
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1 SEC. 105. PEACE CORPS.

2 (a) AVAILABILITY OF APPROPRIATIONS.—Of the

3 funds appropriated under section 106, such funds as may

4 be necessary shall be available for the purposes of, and

5 in accordance with the authorities contained in, the Peace

6 Corps Act.

7 SEC. 106. AUTHORIZATION OF APPROPRIATION.

8 There are authorized to be appropriated to the Presi9 dent to carry out the purposes of this title,

10 $3,100,000,000.

11 SEC. 107. ADMINISTRATIVE AUTHORITY.

12 The Secretary of State shall coordinate all policies

13 and programs and carry out all activities and programs

14 under this title.

15 TITLE II—SECURITY ASSISTANCE AND

16 RELATED PROGRAMS

17 SEC. 201. GENERAL POLICY AND BASIC OBJECTIVES.

18 (a) GENERAL POLICY.—For more than four decades,

19 United States security interests and commitments have re20 flected the imperatives of the cold war. The maintenance

21 of United States military superiority, both nuclear and

22 conventional, remains vital to American interests. Emerg23 ing threats, including the proliferation of weapons of mass

24 destruction, terrorism, and the spread of ethnic and reli25 gious violence, call for new approaches to bilateral, re26 gional and collective security arrangements.
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1 (b) BASIC OBJECTIVES.—United States security as2 sistance shall only be provided to—

3 (1) enhance the military capabilities of a friend4 ly nation to meet legitimate self defense and security

5 needs;

6 (2) strengthen the military capabilities of a

7 friendly nation to permit effective participation in

8 collective security or peacekeeping activities;

9 (3) support the efforts of a foreign government

10 to combat mutual, transnational threats including

11 narcotics trafficking and terrorism;

12 (4) strengthen civilian and military relations

13 consistent with democratic principles with emphasis

14 on improving military standards of professionalism;

15 (5) promote self defense and defense coopera16 tion with United States allies and friendly nations

17 through the acquisition of United States defense ar18 ticles and services; and

19 (6) support the transition to democracy.

20 SEC. 202. GENERAL AUTHORITY.

21 The President is authorized to furnish security assist22 ance to any friendly country, which is otherwise eligible

23 to receive such assistance, by—
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1 (1) acquiring from any source and providing

2 (by loan or grant) any defense article or defense

3 service;

4 (2) assigning or detailing members of the

5 Armed Forces of the United States and other per6 sonnel to perform duties of a noncombatant nature;

7 or

8 (3) transferring such of the funds appropriated

9 or otherwise made available under this section as the

10 President may determine for assistance to a recipi11 ent country, to the account in which funds for the

12 procurement of defense articles and defense services

13 under sections 21 and 22 of the Arms Export Con14 trol Act have been deposited for such recipient, to be

15 merged with such deposited funds, and to be used

16 solely to meet obligations of the recipient for pay17 ment for sales under that Act. Sales which are whol18 ly paid from funds transferred under paragraph (3)

19 or from funds made available on a nonrepayable

20 basis under section 23 of the Arms Export Control

21 Act shall be priced to exclude the cost of salaries of

22 Members of the Armed Forces of the United States

23 (other than the Coast Guard).
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1 SEC. 203. CONDITIONS OF ELIGIBILITY.

2 In addition to such other provisions as the President

3 may require, no defense articles, related training or other

4 defense services under this title shall be furnished to any

5 country unless it shall have agreed that—

6 (1) it will not, without the consent of the Presi7 dent—

8 (A) transfer title to or possession of such

9 articles or services to anyone who is not an offi10 cer, employees or agent of that country; or

11 (B) use or permit the use of such article

12 or services for purposes other than those for

13 which furnished; and

14 (2) it will maintain the security of such articles

15 or services, and will provide substantially the same

16 security protection afforded such article or services

17 by the United States Government.

18 SEC. 204. INTERNATIONAL MILITARY EDUCATION AND

19 TRAINING.

20 (a) GENERAL AUTHORITY.—The President is author21 ity to furnish on such terms and conditions consistent with

22 this title, military education and training to military and

23 related civilian personnel of foreign nations. Such civilian

24 personnel may include foreign government personnel of

25 ministries other than defense, or legislators, if the training

26 or education contributes to responsible defense resource
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1 management, improvement in the relationship and under2 standing between the civilian and military sectors, or im3 provements in military justice systems. Such training and

4 education may be provided through attendance in the

5 United States of military educational and training facili6 ties (other than the Service academies), attendance at spe7 cial courses of instruction at schools and institutes of

8 learning, or observation and orientation visits to military

9 facilities.

10 (b) AVAILABILIY OF APPROPRIATIONS.—Of the funds

11 appropriated under Section 210, $55,000,000 shall be

12 available to carry out this section. Of these funds,

13 $15,000,000 shall be available to develop and administer

14 programs in Lithuania, Estonia, Latvia, Poland, Hungary,

15 the Czech Republic, and Slovakia.

16 SEC. 205. PEACEKEEPING OPERATIONS.

17 (a) GENERAL AUTHORITY.—The President is author18 ized to furnish assistance to friendly countries and inter19 national organizations for peacekeeping operations in fur20 therance of the national security interests of the United

21 States. Such assistance may include reimbursement to the

22 Department of Defense for expense incurred pursuant to

23 section 7 of the United Nations Participation Act, except

24 that such reimbursement may not exceed $10,000,000,

25 unless specifically authorized and appropriated.
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1 (b) None of the funds made available under this sec2 tion may be used to train, equip, or support United States

3 military personnel serving under United Nation’s com4 mand.

5 (c) AVAILABILITY OF APPROPRIATIONS.—Of the

6 funds appropriated under section 210, up to $75,000,000

7 shall be available to carry out this section. Of these funds,

8 $10,000,000 shall be available to support a joint Baltic

9 peacekeeping battalion, including training, equipment and

10 other necessary services.

11 SEC. 206. ANTITERRORISM ASSISTANCE.

12 (a) GENERAL AUTHORITY.—The President is author13 ized to provide assistance, training, services and commod14 ities to foreign governments to enhance their ability to

15 deter terrorists and terrorist groups from engaging in

16 international acts such as bombings, hijackings,

17 kidnappings, hostage taking, and assassinations.

18 (b) REPORT.—Not less than thirty days before pro19 viding assistance to a foreign government under this sec20 tion, the President shall submit to the Committees on For21 eign Relations and Appropriations of the Senate and the

22 Committees on Appropriations and International Rela23 tions of the House of Representatives, a written notifica24 tion which specifies—

25 (1) the country receiving the assistance;
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1 (2) the value and type of services, equipment,

2 or other commodities to be provided;

3 (3) the terms and duration of assistance; and

4 (4) an explanation of how the assistance will

5 further the objectives of subsection (a).

6 SEC. 207. MODERNIZATION OF DEFENSE CAPABILITIES.

7 (a) AUTHORITY TO TRANSFER EXCESS DEFENSE

8 ARTICLES.—Notwithstanding any other provision of law

9 and subject to subsection (b) the President may transfer—

10 (1) to those member countries of the North At11 lantic Treaty Organization which are eligible for

12 United States security assistance and which are in13 tegrated into NATO’s military structure;

14 (2) to major non-NATO allies on the south and

15 southeastern flank of NATO which are eligible for

16 United States security assistance;

17 (3) to Latvia, Lithuania, Estonia, Poland, Hun18 gary, the Czech Republic, and Slovakia; and

19 (4) to those countries in Latin America or the

20 Caribbean which have democratic governments and

21 are major drug producing or drug transit countries,

22 such excess defense articles as the President determines

23 necessary to help modernize the defense capabilities of

24 such countries. Such excess defense articles may be trans25 ferred without cost to the recipient countries.
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1 (b) ADDITIONAL TRANSFER AUTHORITIES.—The

2 President may transfer to countries which are otherwise

3 eligible, such nonlethal excess defense articles as the Presi4 dent deems necessary.

5 (c) NOTIFICATIONS.—The President may not trans6 fer excess defense articles under this section until thirty

7 days after he has notified the Committees on Foreign Re8 lations, Appropriations, and Armed Services of the Senate

9 and the Committees on International Relations, Appro10 priations, and National Security of the House of Rep11 resentatives, of the proposed transfer.

12 SEC. 208. SPECIAL AUTHORITY.

13 (a) DRAWDOWN OF DEFENSE ARTICLES.—If the

14 President determines and reports to Congress in advance

15 that—

16 (1) an unforeseen emergency exists which re17 quires immediate military assistance to a foreign

18 government or international organization;

19 (2) the emergency requirement cannot be met

20 under the authority of the Arms Export and Control

21 Act, or any other law except this section; and

22 (3) the emergency threatens the vital national

23 security interests of the United States,

24 he may direct the drawdown of defense articles from the

25 stocks of the Department of Defense, defense services of
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1 the Department of Defense and military education and

2 training.

3 (b) DRAWDOWN FOR HUMANITARIAN PURPOSES.—If

4 the President determines and reports in writing to Con5 gress in advance that it is the national interest to draw

6 down defense articles of the Department of Defense, de7 fense services of the Department of Defense or military

8 education or training, he may direct—

9 (1) the drawdown of such articles, services or

10 provision of training under the purposes and under

11 the authority of section 103 of title I of this Act; or

12 (2) the drawdown of such articles, services, or

13 provision of training for the purposes and under the

14 authority of the Migration and Refugee Act of 1962.

15 (c) CEILING ON THE USE OF AUTHORITY.—An ag16 gregate value of not to exceed $75,000,000 in any fiscal

17 year of defense articles, services, education or training

18 may be provided pursuant to this section.

19 SEC. 209. OVERSEAS MANAGEMENT OF ASSISTANCE.

20 (a) AUTHORITY TO ASSIGN.—In order to carry out

21 his responsibilities for the management of international se22 curity assistance programs under this title, and the Arms

23 Export Control Act, the President may assign members

24 of the Armed Forces of the United States to a foreign

25 country to perform one or more of the following functions:
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1 (1) Equipment and services case management.

2 (2) Training management.

3 (3) Program monitoring.

4 (4) Evaluation and planning of the host govern5 ment’s military capabilities and requirements.

6 (5) Administrative support.

7 (6) Promoting rationalization, standardization,

8 interoperability, and other defense cooperation meas9 ures.

10 (7) Liaison functions exclusive of advisory and

11 training assistance.

12 (b) COST OF MANAGEMENT.—The entire costs (ex13 cluding the salaries of military personnel other than the

14 Coast Guard) of management of international security as15 sistance programs under this section shall be charged to

16 or reimbursed from funds made available to carry out this

17 title or the Arms Export Control Act, other than such

18 costs which are either directly paid for such defense serv19 ices under section 21(a) of the Arms Export Control Act

20 or reimbursed from charges for services collected from for21 eign governments, pursuant to sections 21(e) and 43(b)

22 of that Act.

23 (c) SUPERVISION.—Members of the Armed Forces

24 assigned to a foreign country under this section shall serve
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1 under the direction and supervision of the Chief of the

2 United States Diplomatic Mission to that country.

3 SEC. 210. AUTHORIZATION OF APPROPRIATION FOR SECU4 RITY ASSISTANCE AND RELATED PROGRAMS.

5 There are authorized to be appropriated to the Presi6 dent to carry out the purposes of this title, $400,000,000

7 including for the subsidy cost of direct and guaranteed

8 loans under section 23 of the Arms Export Control Act.

9 TITLE III—TRADE, INVESTMENT AND

10 EXPORT PROMOTION

11 SEC. 301. GENERAL POLICY AND BASIC OBJECTIVES.

12 (a) GENERAL POLICY.—With the end of the Cold

13 War’s military rivalry, policy and resources should focus

14 on the importance of establishing the United States as a

15 competitive international economic power. Developing na16 tions represent the largest and fastest growing markets

17 for American goods and services. United States govern18 ment support for American led private sector activities

19 promotes economic growth abroad while increasing export

20 and job opportunities at home.

21 (b) BASIC OBJECTIVES.—United States assistance

22 shall be provided to expand American job, trade, and in23 vestment opportunities abroad.
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1 SEC. 302. AUTHORITY AND CONSOLIDATION OF FUNC2 TIONS.

3 (a) GENERAL AUTHORITY.—

4 (1) AUTHORITY.—Sections 231 through 240B

5 of the Foreign Assistance Act of 1961, as in effect

6 before the effective date of this Act, shall be deemed

7 to remain in effect on and after that date.

8 (2) CONSOLIDATION OF FUNCTIONS.—To effec9 tively coordinate the use of resources available to

10 promote United States trade and investment oppor11 tunities, notwithstanding any other provision of law,

12 the President shall consolidate the activities and pro13 grams of the Trade and Development Agency with

14 those of the Overseas Private Investment Corpora15 tion, and the functions and programs contained in

16 sections 661(a) and (b) of the Foreign Assistance

17 Act of 1961 as in effect before the effective date of

18 this Act shall be performed by such Corporation.

19 (b) REPORT.—Within sixty days from the date of en20 actment of this Act, the President shall submit a report

21 to the Committees on Foreign Relations and Appropria22 tions of the Senate and the Committees on International

23 Relations and Appropriations of the House of Representa24 tives on plans and legislative requirements necessary to

25 achieve the goals of subsection (a)(2).

26 (c) AUTHORIZATION OF APPROPRIATIONS.—
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1 (1) There are authorized to be appropriated to

2 the President to carry out the purposes of subsection

3 (a)(1), $135,000,000 for the subsidy cost of direct

4 loans and guarantees for activities in furtherance of

5 the objectives of such subsection. In addition, there

6 are authorized to be appropriated to the President

7 $40,000,000 for administrative expenses to carry

8 out the programs referenced in subsection (a)(1).

9 (2) There are authorized to be appropriated to

10 the President to carry out the consolidation of the

11 Trade and Development Agency and the Overseas

12 Private Investment Corporation, such funds as may

13 be necessary.

14 TITLE IV—INTERNATIONAL FINANCIAL

15 INSTITUTIONS

16 SEC. 401. AUTHORIZATION OF APPROPRIATION.

17 There are authorized to be appropriated to the Presi18 dent to fulfill obligations to international financial institu19 tions, $1,800,000,000.

20 SEC. 402. ENTERPRISE FOR THE AMERICAS.

21 Part IV of the Foreign Assistance Act of 1961, as

22 in effect before the effective date of this Act, shall be

23 deemed to remain in effect on and after that date.
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1 TITLE V—MIDDLE EAST

2 SEC. 501. GENERAL POLICY AND BASIC OBJECTIVES.

3 (a) GENERAL POLICY.—(1) American interests in re4 gional stability and security have been directly served by

5 the close, cooperative relationship between Israel and the

6 United States. The Congress strongly supports continuing

7 to build and expand this economic, political and security

8 partnership.

9 (2) American interests are also enhanced by an ex10 pansion of the peace process begun with the historic ac11 cord achieved between Israel and Egypt at Camp David.

12 Egypt’s leadership during the Gulf war and the peace

13 process has been key to expanding regional stability.

14 (3) The Congress also recognizes the important ac15 complishments of the signing of the Declaration of Prin16 ciples between Israel and the Palestinian Liberation Orga17 nization and the Peace Treaty signed between Israel and

18 Jordan. The Congress supports a continued United States

19 role in facilitating the fulfillment of the obligations and

20 commitments included in these agreements, as well as ex21 panding the peace process and improving regional eco22 nomic ties.

23 (b) BASIC OBJECTIVES.—United States policy and

24 assistance should—
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1 (1) expand the political, economic, and security

2 alliance between the United States and Israel;

3 (2) sustain the commitments achieved in the

4 Camp David accord recognizing Egypt’s leadership

5 and contribution to expanding regional cooperation,

6 security and peace;

7 (3) contribute to and encourage multilateral ef8 forts to support the implementation of the Declara9 tion of Principles;

10 (4) support the implementation of the Peace

11 Treaty between Israel and Jordan;

12 (5) support regional efforts to combat terrorism

13 and political extremism; and

14 (6) pursue concrete steps to end the Arab boy15 cott.

16 SEC. 502. CAMP DAVID ACCORD AUTHORIZATION OF AP17 PROPRIATION.

18 There are authorized to be appropriated to the Presi19 dent to carry out the purposes of this title and, as appro20 priate, section 23 of the Arms Export Control Act, the

21 following amounts:

22 (1) For Israel, $1,800,000,000 for the fiscal

23 year 1996. This amount shall be made available on

24 a grant basis as a cash transfer and shall be dis25 bursed thirty days after enactment of an Act or
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1 Joint Resolution appropriating funds for foreign op2 erations, export financing, and related programs for

3 fiscal year 1996, or October 31, 1995, whichever is

4 later. Of these funds, up to $150,000,000 shall be

5 available for research and development in the United

6 States and $475,000,000 shall be available for pro7 curement in Israel of defense articles and defense

8 services, including research and development. Provi9 sions relating to such assistance are included in sec10 tion 201 and section 501 of this Act.

11 (2) For Israel, $1,200,000,000 for fiscal year

12 1996. This amount shall be made available on a

13 grant basis as a cash transfer and shall be disbursed

14 thirty days after enactment of an Act or Joint Reso15 lution appropriating funds for foreign operations, ex16 port financing, and related programs for fiscal year

17 1996, or by October 31, 1995, whichever is later.

18 Provisions relating to such assistance are included

19 in section 3, section 101, section 201, and section

20 501 of this Act.

21 (3) For Egypt, $1,300,000,000 for fiscal year

22 1996. Provisions relating to such assistance are in23 cluded in section 201 and section 501 of this Act.

24 (4) For Egypt, $815,000,000 for fiscal year

25 1996. Provisions relating to this assistance are in-
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1 cluded in section 3, section 101, section 201, and

2 section 501 of this Act.

3 SEC. 503. MIDDLE EAST PEACE FACILITATION ACT.

4 (a) GENERAL POLICY.—The Congress reaffirms the

5 expectations contained in the Middle East Peace Facilita6 tion Act regarding progress in implementing the Declara7 tion of Principles and necessary Presidential certifications.

8 (b) AUTHORIZATION OF APPROPRIATIONS.—There

9 are authorized to be appropriated to the President,

10 $75,000,000 to facilitate progress in fulfilling conditions

11 of agreements reached between Israel and the PLO, and

12 between Israel and Jordan.

13 SEC. 504. LOAN GUARANTEES FOR ISRAEL.

14 Section 226 of the Foreign Assistance Act of 1961,

15 as in effect before the effective date of this Act, shall be

16 deemed to remain in effect on and after that date.

17 TITLE VI—EUROPE AND THE NEW

18 INDEPENDENT STATES

19 SEC. 601. GENERAL POLICY.

20 The United States has a direct interest in supporting

21 and sustaining economic and political reform in Eastern

22 Europe and the New Independent States. If reform fails

23 and the former Soviet Republics revert to dictatorship or

24 anarchy the potential for nuclear confrontation could be

25 revived. In enacting the Support for East European De-
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1 mocracy (SEED) Act and the Freedom Support Act, the

2 Congress recognized that economic growth and political

3 freedom cannot be subsidized by the American taxpayer.

4 Real change will be generated by the expansion of the pri5 vate sector and meaningful participation of all citizens in

6 the political process. Nonetheless, given the dramatic

7 scope and pace of the changes needed, the Congress sup8 ports carefully targeted, timely assistance to facilitate the

9 full transition to free markets and democracy.

10 SEC. 602. AUTHORIZATION OF APPROPRIATION FOR SEED

11 ACT ACTIVITIES.

12 There are authorized to be appropriated to the Presi13 dent, $355,000,000 to carry out activities and programs

14 in Eastern Europe and the Baltics consistent with the

15 terms and conditions, and in furtherance of the purposes

16 of the SEED Act.

17 SEC. 603. AUTHORIZATION OF ASSISTANCE FOR THE NEW

18 INDEPENDENT STATES.

19 (a) AUTHORIZATION OF APPROPRIATIONS.—There

20 are authorized to be appropriated to the President,

21 $750,000,000 to carry out activities and programs de22 scribed in subsection (b) for the New Independent States.

23 Of the amount appropriated under this section—

24 (1) not less than $200,000,000 shall be avail25 able for Ukraine;
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1 (2) not less than $75,000,000 shall be available

2 for Armenia;

3 (3) not less than $50,000,000 shall be available

4 for Georgia; and

5 (4) not less than $15,000,000 shall be available

6 to carry out joint law enforcement and training ac7 tivities.

8 (b) ELIGIBLE ACTIVITIES AND PROGRAMS.—The ac9 tivities and programs referred to in subsection (a) are in

10 support of the following purposes:

11 (1) Private sector development, including enter12 prise funds, technical assistance and training, and

13 support for small and medium private enterprise and

14 privatization efforts.

15 (2) Enhancing trade with and investment in the

16 New Independent States.

17 (3) Enhancing democratic initiatives, including

18 through exchange programs and training, rule of law

19 programs, and fostering independent media.

20 (4) Support troop withdrawal, including

21 through officer resettlement programs and technical

22 assistance for the housing sector.

23 (5) Supporting the energy and environment sec24 tors.

25 (6) Meeting humanitarian assistance needs.
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1 SEC. 604. ELIGIBILITY FOR ASSISTANCE FOR THE NEW

2 INDEPENDENT STATES.

3 (a) PROHIBITION.—None of the funds appropriated

4 under section 603(a) may be made available to Russia if

5 the Government of Russia directs, supports, or encourages

6 any action which violates the territorial integrity or na7 tional sovereignty of any other state, other than consistent

8 with the articles of self defense in the Charter of the

9 United Nations.

10 (b) HUMANITARIAN ASSISTANCE.—Subsection (a)

11 shall not apply to the provision of assistance for disaster,

12 humanitarian, or refugee relief.

13 (c) The Secretary of State shall submit a report to

14 Congress, no later than January 15 of each fiscal year,

15 on any steps taken by any government of a nation in the

16 New Independent States in violation of the territorial in17 tegrity or national sovereignty of any other state. In pre18 paring this report the Secretary shall provide a full ac19 count of any extra territorial deployment of a nation’s

20 troops, including the number, equipment and activities of

21 those troops, and an assessment of the terms governing

22 the deployment. If the troops are deployed consistent with

23 a formal understanding or agreement the Secretary shall

24 include copies of such agreements with the transmittal of

25 the report.
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1 SEC. 605. ADMINISTRATIVE AUTHORITIES.

2 (a) BILATERAL NATURE OF PROGRAMS.—Assistance

3 programs under this title shall be developed and carried

4 out exclusively on a bilateral basis.

5 (b) ADMINISTRATIVE AUTHORITIES.—The provisions

6 of section 498B of the Foreign Assistance Act of 1961,

7 as in effect before the effective date of this Act, shall be

8 applicable to amounts appropriated under sections 602

9 and 603 of this Act. References in section 498B of the

10 Foreign Assistance Act of 1961 to other provisions of that

11 Act shall be deemed to be references, as appropriate, to

12 comparable provisions in this Act or the Arms Export

13 Control Act.

14 SEC. 701. CONTINGENCIES.

15 (a) AUTHORITY.—Notwithstanding any other provi16 sion of law, the President is authorized to use funds made

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

18 to provide, for any unanticipated contingencies, assistance

19 authorized by this Act in accordance with the provisions

20 applicable to the furnishing of such assistance, except that

21 the authority of this subsection may not be used to author22 ize the use of more than $75,000,000 during any fiscal

23 year.

24 (b) PRIOR REPORT.—The President shall report in

25 advance to the Committees on Appropriations and Foreign

26 Relations of the Senate and the Committees on Appropria-
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1 tions and International Relations of the House of Rep2 resentatives the justification of the use of the authority,

3 each time he exercises the authority.

4 SEC. 702. TRANSFER BETWEEN ACCOUNTS.

5 (a) GENERAL AUTHORITY.—Whenever the President

6 determines it to be necessary for the purposes of this Act,

7 not to exceed 10 percent of the funds made available to

8 carry out any provision of this Act, or for section 23 of

9 the Arms Export Control Act—

10 (1) may be transferred to, and consolidated

11 with the funds in any other account or fund avail12 able to carry out any provision of such Act; and

13 (2) may be used for any purposes for which

14 funds in that account or fund may be used.

15 (b) LIMITATION ON AMOUNT OF INCREASE.—The

16 total amount in the account or fund for the benefit of

17 which transfer is made under subsection (a) during any

18 fiscal year may not be increased by more than 20 percent

19 of the amount of funds otherwise made available.

20 (c) NOTIFICATION.—The Secretary shall notify in

21 writing the Committees on Foreign Relations and Appro22 priations of the Senate and the Committees on Inter23 national Relations and Appropriations of the House of

24 Representatives at least fifteen days in advance of such

25 transfer between accounts.
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1 SEC. 703. SPECIAL WAIVER AUTHORITY.

2 (a) GENERAL AUTHORITY.—The President may au3 thorize the furnishing of assistance under this Act, the

4 Arms Export Control Act, or any foreign assistance au5 thorization or appropriations Acts, without regard to any

6 of the provisions described in subsection (c), if he deter7 mines that to do so is in the national security interests

8 of the United States and so notifies in writing the Speaker

9 of the House of Representatives and the Chairmen of the

10 Committees on Foreign Relations and Appropriations in

11 the Senate.

12 (b) LIMITATIONS.—The authority of subsection (a)

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

14 (1) more than $750,000,000 in sales under the

15 Arms Export Control Act;

16 (2) more than $250,000,000 of funds made

17 available for use under this Act or the Arms Export

18 Control Act; and

19 (3) the use of more than $100,000,000 of for20 eign currencies accruing under this Act.

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

22 referred to in subsection (a) are—

23 (1) the provisions of this Act,

24 (2) the provisions of the Arms Export Control

25 Act,
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1 (3) any other provisions of law that restrict the

2 authority to provide assistance or make sales or

3 leases under the Acts in paragraphs (1) and (2), and

4 (4) any law relating to receipts and credits ac5 cruing to the United States, except for those provi6 sions of law contained in section 861(6).

7 (d) COUNTRY LIMITATION.—Not more than

8 $50,000,000 of the $250,000,000 made available in sub9 section (a)(2) may be allocated to one country in any fiscal

10 year unless that country is a victim of active aggression.

11 (e) APPLICATION TO TRANSFERS.—The authority of

12 this section may not be used to waive the limitations on

13 transfer in section 702 of this Act.

14 TITLE VIII—REPORTS, LIMITATIONS, AND

15 GENERAL PROVISIONS

16 Chapter A—Reporting Requirements

17 SEC. 801. REPORT ON HUMAN RIGHTS.

18 (a) REQUIREMENT FOR REPORTS.—The Secretary of

19 State shall transmit to the Speaker of the House and the

20 Committees on Foreign Relations and Appropriations of

21 the Senate, by January 31 of each year, a full and com22 plete report on all countries which receive assistance under

23 this Act or are members of the United Nations regard24 ing—
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1 (1) the status of internationally recognized

2 human rights, including torture or cruel, inhuman,

3 or degrading treatment or punishment, prolonged

4 detention without charges, causing the disappear5 ance of persons by abduction and clandestine deten6 tion of such persons, or other flagrant denial of the

7 right to life, liberty and the security of a person;

8 (2) wherever applicable, practices regarding co9 ercion in population control, including coerced abor10 tion and involuntary sterilization; and

11 (3) the steps the Secretary has taken to alter

12 United States programs because of human rights

13 considerations.

14 SEC. 802. REPORT ON NARCOTICS CONTROL.

15 Consistent with the terms and conditions of the Inter16 national Narcotics Control Act of 1992, as amended, the

17 Secretary shall report to the Committee on Foreign Rela18 tions. The report shall include the same information, and

19 shall be submitted in the same manner, as the report re20 quired by Section 489 of the Foreign Assistance Act of

21 1961 as in effect before the effective date of this Act.

22 SEC. 803. NOTIFICATION OF PROGRAM CHANGES.

23 (a) GENERAL REQUIREMENT.—Except as provided in

24 subsection (b), none of the funds appropriated pursuant

25 to authority contained in this Act may be obligated for
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1 any activities, programs, projects, types of materiel assist2 ance, countries, or other operations not justified, or in ex3 cess of the amount justified to the Congress for obligation,

4 unless the Committees on Appropriations and Foreign Re5 lations of the Senate and the Committees on Appropria6 tions and International Relations of the House of Rep7 resentatives are notified fifteen days in advance of such

8 obligation.

9 (b) EXCEPTION.—The requirement contained in sub10 section (a) shall not apply to funds appropriated or other11 wise made available for—

12 (1) international disaster assistance,

13 (2) emergency refugee and migration assistance

14 activities under section 2(c) of the Migration and

15 Refugee Assistance Act of 1962,

16 (3) the Overseas Private Investment Corpora17 tion or successor organization, and

18 (4) title IV of this Act.

19 (c) LIMITED REPROGRAMMINGS.—The notification

20 requirement of this section does not apply to—

21 (1) reprogramming of funds to be used for an

22 activity, program, or project under title I if the

23 amounts to be obligated for that activity, program,

24 or project for the appropriate fiscal year do not ex25 ceed by more than 20 percent the amount justified
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1 to the Congress for that activity, program, or project

2 for that fiscal year;

3 (2) reprogramming of less than $25,000 to be

4 used under section 204 of this Act, for a country for

5 which a program under that section for that fiscal

6 year was justified to the Congress; and

7 (3) the commitment of funds appropriated for

8 the purposes of section 23 of the Arms Export Con9 trol Act for the provision of major defense equip10 ment, other than conventional ammunition, or other

11 major defense items defined to be aircraft, ships,

12 missiles, or combat vehicles, if the quantity of such

13 equipment or defense items does not exceed by more

14 than 20 percent the amount justified to the Con15 gress.

16 SEC. 804. ANNUAL ALLOCATION REPORT.

17 (a) REPORT ON ALLOCATIONS OF ASSISTANCE.—Not

18 later than thirty days after the enactment of any law ap19 propriating funds to carry out any provision of this Act,

20 the President shall notify the Congress of—

21 (1) each foreign country and international orga22 nization to which the United States Government in23 tends to provide any portion of the funds under such

24 law; and
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1 (2) the amount of funds under that law, by cat2 egory of assistance, that the United States Govern3 ment intends to provide to each such country or or4 ganization.

5 (b) EXCEPTIONS.—Subsection (a) does not apply

6 with respect to any law making continuing appropriations.

7 (c) USE OF SPECIAL AUTHORITY.—The authority of

8 section 703 of this Act may not be used to waive the provi9 sions of this section.

10 SEC. 805. PRESIDENTIAL FINDINGS AND DETERMINATIONS.

11 (a) FINDINGS AND DETERMINATIONS TO BE WRIT12 TEN AND SIGNED.—In any case in which the President

13 is required to make a report by any provision of this Act,

14 the Arms Export Control Act, or any annual or periodic

15 foreign assistance authorizing or appropriations legisla16 tion, to the Congress or to any committee or officer of

17 either House of Congress concerning any finding or deter18 mination, that finding or determination shall be reduced

19 to writing and signed by the President.

20 (b) RESTRICTION.—No action shall be taken pursu21 ant to any such finding or determination prior to the date

22 on which that finding or determination is reduced to writ23 ing and signed by the President.

24 (c) PUBLICATION IN FEDERAL REGISTER.—Each

25 such finding or determination shall be published in the
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1 Federal Register as soon as practicable after it has been

2 reduced to writing and signed by the President. In any

3 case in which the President concludes that such publica4 tion would be harmful to the national security of the

5 United States, only a statement that a determination or

6 finding has been made by the President, including the

7 name and section of the Act under which it was made,

8 shall be published.

9 (d) COMMITTEE ACCESS.—No committee or officer of

10 either House of Congress shall be denied any requested

11 information relating to any finding or determination which

12 the President is required to report to the Congress, or to

13 any committee or officer of either House of Congress,

14 under any provision of this Act, the Arms Export Control

15 Act, or any annual or periodic foreign assistance authoriz16 ing or appropriations legislation, even though such report

17 has not yet been transmitted to the appropriate committee

18 or officer of either House of Congress.

19 Chapter B—Limitations on Assistance

20 SEC. 811. INELIGIBLE COUNTRIES.

21 (a) RESTRICTIONS.—Except as provided in sub22 section (b), assistance under this Act may not be furnished

23 to the government of a country that is:

24 (1) COMMUNIST COUNTRIES.—A communist

25 country, as designated under subsection (d).
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1 (2) HUMAN RIGHTS VIOLATORS.—A country de2 scribed in subsection (e).

3 (3) COUNTRY INDEBTED TO UNITED STATES

4 CITIZENS.—A country whose government is indebted

5 to any United States citizen or person under section

6 527 of the Foreign Relations Authorization Act, fis7 cal years 1994 and 1995.

8 (4) MILITARY COUPS.—A country whose duly9 elected Head of Government is deposed by military

10 coup or decree unless subsequent to the military

11 coup or decree a democratically-elected government

12 has taken office.

13 (5) TERRORIST COUNTRIES.—A country whose

14 government the President determines repeatedly pro15 vides support for acts of international terrorism.

16 (6) MAJOR ILLICIT DRUG PRODUCING OR

17 MAJOR DRUG TRANSIT COUNTRIES.—A country that

18 is ineligible for assistance under section 490 of the

19 Foreign Assistance Act of 1961 in effect before the

20 effective date of this Act.

21 (7) COUNTRIES IN ARREARS.—A country that

22 is more than one year in arrears to the United

23 States Government on any payment of interest or

24 principal on any loan made or credit extended under

25 this Act, the Arms Export Control Act, or the
39

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1 former authorities of the Foreign Assistance Act of

2 1961.

3 (b) EXCEPTIONS.—Funds may be obligated and ex4 pended for assistance restricted by subsection (a), or com5 parable provisions of law that restrict assistance to coun6 tries, under any of the following circumstances:

7 (1) NATIONAL SECURITY INTEREST.—The

8 President determines that the furnishing of such as9 sistance is important to the national security inter10 ests of the United States.

11 (2) ALLEVIATING SUFFERING RESULTING FROM

12 A DISASTER.—The assistance is for the alleviation of

13 suffering resulting from a natural or manmade dis14 aster.

15 (3) REFUGEES AND DISPLACED PERSONS.—The

16 assistance is for the purposes described in section

17 104.

18 (c) REPORT TO CONGRESS.—Assistance restricted by

19 subsection (a) may not be provided under subsection (b)

20 until the President has submitted to the Committees on

21 Appropriations and Foreign Relations of the Senate and

22 the Committees on Appropriations and International Rela23 tions of the House of Representatives, a report with re24 spect to such assistance. Any such report shall include a

25 detailed explanation of the assistance to be provided, in-
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1 cluding the estimated dollar amount of such assistance,

2 and an explanation of how the assistance meets the cri3 teria specified in subsection (b).

4 (d) COMMUNIST COUNTRY LIST.—

5 (1) ESTABLISHMENT.—The President shall des6 ignate those countries that are communist countries

7 for purposes of subsection (a)(1).

8 (2) PUBLICATION OF LIST.—The initial list of

9 countries designated pursuant to this subsection

10 shall be published in the Federal Register and shall

11 be provided to the Congress. Thereafter, any addi12 tions to or deletions from such list shall be similarly

13 published and provided.

14 (3) REMOVAL OF COUNTRIES FROM THE LIST;

15 EXEMPTIONS.—The President may remove a country

16 from the communist country list established pursu17 ant to this section, or may exempt a listed country

18 from the application of subsection (a)(1) or other

19 provisions of law that reference subsection (a)(1), if

20 the President promptly reports such removal or ex21 emption to the Speaker of the House of Representa22 tives and the chairman of the Committee on Foreign

23 Relations of the Senate.

24 (e) HUMAN RIGHTS VIOLATORS.—
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1 (1) INELIGIBILITY.—Subsection (a)(2) shall

2 apply to any country the government of which en3 gages in a consistent pattern of gross violations of

4 internationally recognized human rights.

5 (f) TERRORIST COUNTRIES.—

6 (1) ESTABLISHMENT.—The President shall des7 ignate those countries which are terrorist countries

8 for the purposes of subsection (a)(5) and shall pub9 lish the initial list in the Federal Register.

10 (2) RESCISSION.—Any determination made

11 under subsection (a)(5) may not be rescinded unless

12 the President submits thirty days in advance to the

13 Speaker of the House of Representatives and the

14 chairman of the Committee on Foreign Relations of

15 the Senate the proposed rescission and a report cer16 tifying—

17 (A) there has been a fundamental change

18 of leadership and policies of the government

19 concerned; or

20 (B) the government concerned has not pro21 vided any support for international terrorism or

22 terrorist organizations during the preceding six

23 month period, and the government concerned

24 has provided assurances that it will not support

25 such acts.
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1 (g) RELATED RESTRICTIONS ON ASSISTANCE.—

2 (1) HUMAN RIGHTS VIOLATORS.—Subsection

3 (a)(2) shall be deemed to prohibit, in addition to the

4 furnishing of assistance under this Act—

5 (A) sales of defense articles, defense serv6 ices, or design and construction services under

7 the Arms Export Control Act;

8 (B) licenses under section 38 of the Arms

9 Export Control Act with respect to the export

10 of defense articles or defense services to or for

11 the armed forces, police, intelligence, or other

12 internal security forces of a foreign country;

13 and

14 (C) licenses required under the Export Ad15 ministration Act of 1979 for the export of crime

16 control and detection instruments and equip17 ment.

18 (2) TERRORIST COUNTRIES.—Subsection (a)(5)

19 shall be deemed to prohibit, in addition to the fur20 nishing of assistance under this Act, the furnishing

21 of assistance under the Agricultural Trade Develop22 ment and Assistance Act of 1954 and the Peace

23 Corps Act, and the provision of loans, guaranties,

24 and insurance under the Export-Import Bank Act of

25 1945.
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1 (3) MAJOR ILLICIT DRUG PRODUCING AND

2 MAJOR DRUG TRANSIT COUNTRIES—

3 (A) Subsection (a)(6) shall be deemed to

4 prohibit, in addition to the furnishing of assist5 ance under this Act, (i) sales under the Arms

6 Export Control Act, (ii) the provision of agri7 cultural commodities other than food under the

8 Agricultural Trade Development and Assistance

9 Act of 1954, and (iii) loans, guarantees and in10 surance under the Export-Import Bank Act of

11 1945.

12 (B) Notwithstanding subparagraph (A),

13 subsection (a)(6) shall not be deemed to pro14 hibit (i) disaster relief assistance, refugee as15 sistance or assistance that involves the provi16 sion of food (including monetization of food) or

17 medicine and (ii) assistance for narcotics edu18 cation and awareness activities.

19 (C) With respect to any country for which

20 assistance is prohibited under section (a)(6),

21 the President shall instruct the United States

22 Executive Director of the International Bank

23 for Reconstruction and Development, the

24 United States Executive Director of the Inter25 national Development Association, the United
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1 States Executive Director of the Inter-American

2 Development Bank, and the United States Ex3 ecutive Director of the Asian Development

4 Bank to vote, during the period in which assist5 ance is prohibited under subsection (a)(6),

6 against any loan or other utilization of the

7 funds of their respective institution to or for

8 any major illicit drug producing country or

9 major drug-transit country, except as provided

10 in subsection (b).

11 (h) RETENTION OF EXISTING CERTIFICATION RE12 QUIREMENT.—Section 490 of the Foreign Assistance Act

13 of 1961, as in effect before the effective date of this Act,

14 shall be deemed to remain in effect on and after that date.

15 Chapter C—Administrative Provisions

16 Subchapter 1—Procurement

17 SEC. 821. 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) EXCEPTION.—The provisions of this section shall

21 not apply to sections 102 through 105 and title IV of this

22 Act.

23 SEC. 822. SHIPPING ON UNITED STATES VESSELS.

24 (a) CERTAIN LAWS NOT APPLICABLE.—The ocean

25 transportation between foreign countries of articles pur-
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1 chased with foreign currencies made available or derived

2 from funds made available under this Act or the Agricul3 tural Trade Development and Assistance Act of 1954 (7

4 U.S.C. 1691 and following), or any predecessor Acts, and

5 transfers of fresh fruit and fresh fruit products under this

6 Act, shall not be governed by section 901(b) of the Mer7 chant Marine Act, 1936 (49 U.S.C. app. 1241(b)), or any

8 other law relating to the ocean transportation of commod9 ities on United States flag vessels.

10 (b) SHIPPING DIFFERENTIAL.—For purposes of fa11 cilitating implementation of section 901(b) of the Mer12 chant Marine Act, 1936 (46 U.S.C. app. 1241(b)), funds

13 made available for commodities and services under this

14 Act may be used to make grants to recipients or otherwise

15 pay all or any portion of such differential as is determined

16 by the Secretary of Transportation to exist between

17 United States and foreign-flag vessel charter or freight

18 rates. Grants made under this section shall be paid with

19 United States-owned foreign currencies wherever feasible.

20 SEC. 823. RETENTION AND USE OF CERTAIN ITEMS AND

21 FUNDS.

22 (a) RETENTION AND USE OF CERTAIN ARTICLES.—

23 (1) AUTHORITY TO RETAIN, TRANSFER, AND

24 USE.—Any articles procured to carry out this Act

25 shall be retained by, or (upon reimbursement) trans-
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1 ferred to and for the use of, such agency of the

2 United States Government as the President deems

3 appropriate in lieu of being disposed of to a foreign

4 country or international organization, whenever in

5 the judgment of the President the best interests of

6 the United States will be served thereby.

7 (2) LAWS GOVERNING DISPOSAL OF GOVERN8 MENT PROPERTY.—Any articles so retained may be

9 disposed of without regard to provisions of law relat10 ing to the disposal of property owned by the United

11 States Government, when necessary to prevent spoil12 age or wastage of such articles or to conserve their

13 usefulness.

14 (3) PROCEEDS CREDITED TO APPROPRIA15 TIONS.—Funds realized from any disposal or trans16 fer shall revert to the respective appropriation, fund,

17 or account used to procure such articles or to the

18 appropriation, fund, or account currently available

19 for the same general purpose.

20 (b) ARTICLES RECEIVED AS PAYMENT.—Whenever

21 articles are transferred to the United States Government

22 as repayment of assistance under this Act or the former

23 authority of the Foreign Assistance Act, such articles may

24 be used in furtherance of the purposes and within the limi25 tations of this Act.
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1 (c) FAILED TRANSACTIONS.—Funds realized as a re2 sult of any failure of a transaction financed under this

3 Act to conform to the requirements of this Act, to applica4 ble rules and regulations of the United States Govern5 ment, or to the terms of any agreement or contract en6 tered into under this Act, shall revert to the respective

7 appropriation, fund, or account used to finance such

8 transaction or to the appropriation, fund, or account cur9 rently available for the same general purpose.

10 (d) DISPOSAL OF DEFENSE ARTICLES.—Funds real11 ized by the United States Government from the sale,

12 transfer, or disposal of defense articles furnished under

13 the former authority of chapter 2 of part II of the Foreign

14 Assistance Act of 1961, and no longer needed for the pur15 poses for which furnished, shall be credited to the respec16 tive appropriation, fund, or account currently available for

17 the same general purpose.

18 Subchapter 2—Inter-Agency Authorities

19 SEC. 831. ALLOCATION OF FUNDS AND REIMBURSEMENT

20 AMONG AGENCIES.

21 (a) ALLOCATIONS OR TRANSFERS TO AGENCIES.—

22 The President, or with respect to funds appropriated to

23 any agency, the head of such agency, as the case may be,

24 may allocate or transfer to any agency of the United

25 States Government any funds available for providing for-
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1 eign assistance under this or any other Act, including any

2 advance to the United States Government by any country

3 or international organization of the procurement of arti4 cles or services. Such funds shall be available for obliga5 tion and expenditure for the purposes for which author6 ized, in accordance with the authority pursuant to which

7 they were made available or the authority governing the

8 activities of the agency to which such funds are allocated

9 or transferred.

10 (b) PROCUREMENT FROM OTHER AGENCIES.—

11 (1) AUTHORITY.—Any officer of the United

12 States Government carrying out functions under this

13 Act may utilize the services and the facilities of, or

14 procure articles from, any agency of the United

15 States Government as the President shall direct, or

16 with the consent of the head of such agency.

17 (2) SEPARATE ACCOUNT.—Funds allocated pur18 suant to this subsection to any such agency may be

19 established in separate appropriation accounts on

20 the books of the Treasury.

21 (c) REIMBURSEMENT TO AGENCIES.——

22 (1) GENERAL.—In the case of any article, serv23 ice, or facility procured from any agency of the

24 United States Government to carry out any provi25 sion of this Act (except with respect to assistance
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1 under section 208), reimbursement or payment shall

2 be made to such agency from funds available to

3 carry out that provision.

4 (2) AMOUNT OF REIMBURSEMENT.—Such reim5 bursement or payment shall be at—

6 (A) replacement cost,

7 (B) if required by law, actual cost,

8 (C) in the case of defense articles procured

9 from the Department of Defense, value as de10 fined in section 861(15), or, if required by law,

11 actual costs,

12 (D) in the case of services procured from

13 the Department of Defense, the amount of the

14 additional costs incurred by the Department of

15 Defense in providing such services, or, if re16 quired by law, actual costs, or

17 (E) at any other cost agreed to by the

18 owning or disposing agency.

19 (3) CREDITING OF REIMBURSEMENT.—The

20 amount of any such reimbursement or payment shall

21 either be credited to current applicable appropria22 tions, funds, or accounts of such agency, to be avail23 able for the same purposes and for the same time

24 period as the appropriation, fund or account to
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1 which transferred, or any such credited funds shall

2 remain available for such purposes until expended.

3 (d) REIMBURSEMENT TO THE DEPARTMENT OF DE4 FENSE.—Reimbursement or payment to the Department

5 of Defense under subsection (c) shall exclude salaries of

6 members of the Armed Forces (other than the Coast

7 Guard) and unfunded estimated costs of civilian retire8 ment and other benefits, unless otherwise required by law.

9 (e) ESTABLISHMENT OF ACCOUNTS.—

10 (1) AUTHORITY TO ESTABLISH; USES.—In fur11 nishing assistance under this or any other Act, ac12 counts may be established on the books of any agen13 cy of the United States Government or, on terms

14 and conditions approved by the Secretary of the

15 Treasury, in banking institutions in the United

16 States—

17 (A) against which letters of commitment

18 may be issued which shall constitute recordable

19 obligations of the United States Government,

20 and moneys due or to become due under such

21 letters of commitment shall be assignable under

22 the last sentence of section 3727(b) and section

23 3727(c) of title 31, United States Code, and the

24 second and third paragraphs of section 3737 of
52

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1 the Revised Statutes of the United States (41

2 U.S.C. 15); and

3 (B) from which disbursements may be

4 made to, or withdrawals may be made by, recip5 ient countries or agencies, organizations, or per6 sons upon presentation of contracts, invoices, or

7 other appropriate documentation.

8 (2) ACCOUNTING FOR EXPENDITURES.—Ex9 penditure of funds which have been made available

10 through accounts established under paragraph (1)

11 shall be accounted for on standard documentation

12 required for expenditure of funds of the United

13 States Government.

14 (f) CHARGING TO APPROPRIATIONS.—

15 (1) INITIAL CHARGING.—Any appropriation or

16 account available to carry out provisions of this Act

17 may initially be charged in any fiscal year, within

18 the limit of available funds, to finance expenses for

19 which funds are available in other appropriations or

20 accounts under that title.

21 (2) FINAL CHARGING.—As of the end of such

22 fiscal year, such expenses shall be finally charged to

23 applicable appropriations or accounts with proper

24 credit to the appropriations or accounts initially uti25 lized for financing purposes, except that such final
53

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1 charges shall not be required in the case of expenses

2 incurred in furnishing assistance where it is deter3 mined that the accounting costs of identifying the

4 applicable appropriation or account to which such

5 expenses should be charged would be disproportion6 ate to the advantage to be gained.

7 (3) APPLICATION TO PROGRAMS ADMINISTERED

8 THROUGH DOD.—This subsection shall not apply to

9 assistance administered through the Department of

10 Defense under this Act.

11 (g) RESPONSIBILITY OF AGENCIES.—The agency re12 ceiving the funds pursuant to the authority of subsection

13 (a) shall be the agency responsible for the management

14 and use of such funds.

15 SEC. 832. AUTHORITY TO CONDUCT REIMBURSABLE PRO16 GRAMS.

17 (a) GENERAL AUTHORITY.—Whenever the President

18 considers it consistent with and within the limitations of

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

20 authorized to furnish services and articles on an advance21 of-funds or reimbursement basis to friendly countries,

22 international organizations and arrangements, and non23 governmental organizations and may contract in advance

24 of appropriations or reimbursement for such purposes.
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1 (b) PERSONAL SERVICE CONTRACTS.—When any

2 agency of the United States Government provides services

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

4 section, such agency may contract with individuals for per5 sonal service abroad or in the United States to perform

6 such services or to replace officers or employees of the

7 United States Government in a manner otherwise per8 mitted by law (or Office of Management and Budget Cir9 cular A–76 or any successor circular) who are assigned

10 by the agency to provide such services. Such individuals

11 shall not be regarded as employees of the United States

12 Government for the purpose of any law administered by

13 the Office of Personnel Management.

14 (c) LIMITATIONS ON ASSISTANCE NOT APPLICA15 BLE.—Limitations in this or any other Act on assistance

16 do not apply with respect to this section.

17 (d) USE OF PAYMENTS.—Advances and reimburse18 ments received under this section may either be credited

19 to the currently applicable appropriation, account, or fund

20 of the agency concerned or shall be available until ex21 pended.

22 Subchapter 3—General Administration

23 SEC. 841. GENERAL AUTHORITIES.

24 (a) TERMS OF ASSISTANCE.—Except as otherwise

25 specifically prohibited in this Act, assistance under this
55

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1 Act may be furnished on a grant, loan, or guaranty basis,

2 or on such terms, including cash, credit, or other terms

3 of repayment (including repayment in foreign currencies

4 or by transfer to the United States Government of arti5 cles), or as a contribution to an international organization

6 or arrangement, as may be determined to be best suited

7 to the achievement of the purposes of this Act.

8 (b) TERMS AND CONDITIONS.—The President may

9 furnish assistance under this Act on such terms and condi10 tions (consistent with other provisions of law) as the Presi11 dent deems appropriate, and, consistent with the provi12 sions of this Act, may charge such fees for guarantees and

13 loans under this Act as the President deems appropriate.

14 Credit assistance shall be consistent with the provisions

15 of the Federal Credit Reform Act of 1990. In the case

16 of contributions or other assistance provided for an inter17 national organization or arrangement under this or any

18 other Act, such organization or arrangement may utilize

19 its own procurement, administrative, accounting, and

20 audit rules and procedures.

21 (c) ADVANCES, CONTRACTS, ETC.—In furtherance of

22 the purposes and subject to the limitations of this Act,

23 the President in providing assistance under this or any

24 other Act may make loans (in conformity with the provi25 sions of the Federal Credit Reform Act of 1990), ad-
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1 vances, and grants to, make and perform agreements and

2 contracts with, or enter into other transactions with, any

3 person, corporation, or other body of persons, any govern4 ment or government agency, and any international organi5 zation or arrangement.

6 (d) GIFTS.—The President may accept and use in

7 furtherance of the purposes of this Act, money, funds,

8 property, and services of any kind made available by gift,

9 devise, bequest, grant, or otherwise for such purpose.

10 (e) INSURANCE.—

11 (1) FOREIGN PARTICIPANTS.—Any agency of

12 the United States Government is authorized to pay

13 the cost of health and accident insurance for foreign

14 participants in any program of furnishing assistance

15 administered by such agency while such participants

16 are absent from their homes for the purpose of par17 ticipation in such program.

18 (2) FOREIGN EMPLOYEES.—Any agency of the

19 United States Government is authorized to pay the

20 cost of health and accident insurance for foreign em21 ployees of that agency while those employees are ab22 sent from their places of employment abroad for

23 purposes of training or other official duties.

24 (f) ADMISSION TO UNITED STATES.—Alien partici25 pants in any program of furnishing assistance under this
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1 Act may be admitted to the United States if otherwise

2 qualified as nonimmigrants under section 101(a)(15) of

3 the Immigration and Nationality Act (8 U.S.C.

4 1101(a)(15)), for such time and under such conditions as

5 may be prescribed by regulations promulgated by the Sec6 retary of State and the Attorney General.

7 (g) ASSISTANCE AUTHORITIES.—In furnishing and

8 administering assistance under this Act, the President—

9 (1) may issue letters of credit and letters of

10 commitment;

11 (2) may collect, compromise, reschedule or oth12 erwise settle any obligations assigned to, or held by,

13 and any legal or equitable rights accruing to, the

14 President and may (as the President deems appro15 priate) refer any such obligations or rights to the

16 Attorney General for suit or collection;

17 (3) may—

18 (A) acquire and dispose of (upon such

19 terms and conditions as the President deems

20 appropriate) any property, including any instru21 ment evidencing indebtedness of ownership, and

22 (B) guarantee payment against any such

23 instrument;

24 (4) may establish the character of, and decide

25 the necessity for, obligations, and expenditures of
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1 funds used in furnishing and administering such as2 sistance and the manner in which such obligations

3 and expenditures shall be incurred, allowed, and

4 paid, subject to provisions of law specifically applica5 ble to corporations of the United States Govern6 ment; and

7 (5) shall cause to be maintained in integral set

8 of accounts which shall be audited by the General

9 Accounting Office in accordance with principles and

10 procedures applicable to commercial corporate trans11 actions as provided by chapter 91 of title 31, United

12 States Code;

13 (h) GUARANTEES.—Guarantees issued to carry out

14 the purposes of this Act shall be subject to the following:

15 (1) FULL FAITH AND CREDIT.—The full faith

16 and credit of the United States may be pledged for

17 the full payment and performance of guarantees is18 sued under this Act of predecessor legislation.

19 (2) CHARGES.—The President may charge ap20 propriate fees and/or interest in connection with the

21 activities carried out under such authority.

22 (3) RELATIONSHIP TO OTHER PROVISIONS OF

23 LAW.—Guarantees may be provided under this Act

24 without regard to section 821 of this Act.
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1 (4) DENOMINATION OF LIABILITY.—The losses

2 guaranteed may be in dollars or in other currencies.

3 In the case of losses guaranteed in currencies other

4 than dollars, the guarantees issued shall be subject

5 to an overall payment limitation expressed in dollars.

6 (i) SUBSIDY COST OF GUARANTEES AND LOANS.—

7 The President may use funds made available under this

8 Act to pay the cost (as defined in section 502 of the Con9 gressional Budget Enforcement Act of 1974) of direct

10 loans and loan guarantees made or entered into (and asso11 ciated administrative costs) in furtherance of the purposes

12 of this Act. Funds appropriated to pay the cost (as defined

13 in section 502 of the Congressional Budget Act of 1974)

14 of direct loans and loan guarantees made or entered into

15 the carry out the provisions of this Act shall be provided

16 in conformity with section 504(b)(1) of such Act.

17 (j) CLAIMS RELATING TO GUARANTEES.—Claims

18 arising as a result of any guarantee program authorized

19 by this Act may be settled, and disputes arising as the

20 result thereof may be arbitrated with the consent of the

21 parties, on such terms and conditions as the President

22 may direct. Payment made pursuant to any such settle23 ment, or as a result of an arbitration award, shall be final

24 and conclusive notwithstanding any other provision of law.
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1 (k) FINANCIAL TRANSACTIONS WITH FOREIGN GOV2 ERNMENTS IN DEFAULT OF OBLIGATIONS TO THE

3 UNITED STATES.—Section 955 of title 18, United States

4 Code, shall not apply to any person—

5 (1) who acts for or participates in any oper6 ation or transaction arising under this Act, or

7 (2) who acquires any obligation issued in con8 nection with any operation or transaction arising

9 under this Act.

10 (l) 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. 842. 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 sections 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 852.
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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, for replacement only, subject to

18 clause (ii).

19 (ii) Passenger motor vehicles may be pur20 chased for use in the United States only as may

21 be specifically provided in an appropriation or

22 other Act.

23 (E) Entertainment and representation.

24 (F) Exchange of funds without regard to

25 loss by exchange.
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1 (G) Insurance of official motor vehicles or

2 aircraft acquired for use in foreign countries.

3 (H) Expenses of—

4 (i) preparing and transporting to their

5 former homes (or with respect to foreign

6 participants engaged in any program under

7 this Act to their former homes or places of

8 burial), and

9 (ii) caring for and disposing of the re10 mains of an individual, or the remains of

11 a member of an individual’s family, who

12 may die while such individual is away from

13 home participating in activities carried out

14 with funds described in paragraph (2).

15 (I) Payment of per diem in lieu of subsist16 ence to foreign participants engaged in any pro17 gram under this Act while such participants are

18 away from their homes in countries other than

19 the United States, at rates not in excess of

20 those prescribed by the standardized Govern21 ment travel regulations, notwithstanding any

22 other provision of law.

23 (J) Use in accordance with authorities of

24 the Foreign Service Act of 1980 (22 U.S.C.

25 3901 et seq.) not otherwise provided for.
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1 (K) Services of commissioned officers of

2 the National Oceanic and Atmospheric Admin3 istration. For the purposes of providing such

4 services, the National Oceanic and Atmospheric

5 Administration may appoint not to exceed 20

6 commissioned officers in addition to those oth7 erwise authorized.

8 (L) Expenses in connection with—

9 (i) travel of personnel outside the

10 United States, including travel expenses of

11 dependents (including expenses during nec12 essary stopovers while engaged in such

13 travel), and the transportation of personal

14 effects, household goods, and automobiles

15 of such personnel when any part of such

16 travel or transportation begins in one fiscal

17 year pursuant to travel orders issued in

18 that fiscal year, notwithstanding the fact

19 that such travel or transportation may not

20 be completed during the same fiscal year;

21 and

22 (ii) the costs of transporting auto23 mobiles to and from a place of storage,

24 and the costs of storing automobiles of

25 such personnel, when it is in the public in-
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1 terest or more economical to authorize

2 storage.

3 (M) Assistance for the implementation of

4 programs under the Agricultural Trade Devel5 opment and Assistance Act of 1954, the Agri6 cultural Act of 1949, and the Food for Progress

7 Act of 1985.

8 (N) Other expenses determined by the

9 President to be necessary to carry out the pur10 poses of this Act.

11 (2) FUNDS WHICH MAY BE USED.—Paragraph

12 (1) applies to—

13 (A) appropriations to carry out this Act,

14 and

15 (B) allocations or transfers to or from any

16 agency of the United States Government, from

17 other appropriations, for functions directly re18 lated to the purposes of this Act.

19 (c) FACILITIES.—

20 (1) LIVING QUARTERS, OFFICES, SCHOOLS, AND

21 HOSPITALS.—Notwithstanding any other provision

22 of law, funds available for assistance under this Act

23 may be used in any fiscal year (in addition to funds

24 available for such use under other authorities in this

25 Act)—
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1 (A) to rent, lease, construct or otherwise

2 acquire essential living quarters, office space,

3 and necessary supporting facilities for use of

4 personnel carrying out activities authorized by

5 this Act, including to maintain, furnish, im6 prove, and make necessary repairs to such

7 property, which may also include the cost of

8 fuel, water, and utilities for such properties;

9 (B) to construct or otherwise acquire out10 side the United States schools (including dor11 mitories and boarding facilities) and hospitals

12 for use of personnel carrying out activities au13 thorized by this Act, United States Government

14 personnel, and their dependents; and

15 (C) to staff, operate, and maintain such

16 schools and hospitals.

17 (2) DISPOSAL.—Property acquired under this

18 subsection (or predecessor provisions of this Act)

19 may be disposed of, and the proceeds of such dis20 posal shall remain available until expended for use

21 for the purposes specified in paragraph (1).

22 (d) EDUCATION OF DEPENDENTS.—Funds available

23 for assistance under this Act may be used in any fiscal

24 year to provide assistance to schools established, or to be

25 established, outside the United States whenever it is deter-
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1 mined that such action would be more economical or would

2 best serve the interests of the United States in providing

3 for the education of dependents of personnel carrying out

4 activities authorized by this Act and dependents of United

5 States Government personnel, in lieu of acquisition or con6 struction pursuant to subsection (c) of this section.

7 (e) TRAINING OF PERSONNEL.—

8 (1) PAYMENT OF COSTS.—Funds available

9 under this Act may be used to pay costs of training

10 United States citizen personnel employed or assigned

11 pursuant to section 852(d), through interchange or

12 otherwise, at any State or local unit of government,

13 public or private nonprofit institution, trade, labor,

14 agricultural, or scientific association or organization,

15 or commercial firm.

16 (2) LIMITATION ON DUAL EMPLOYMENT.—Such

17 training shall not be considered employment or hold18 ing of office under section 5533 of title 5, United

19 States Code.

20 (3) ACCEPTANCE OF CERTAIN PAYMENTS.—Any

21 payments or contributions in connection with such

22 training may, as deemed appropriate by the head of

23 the agency of the United States Government author24 izing such training, be made by private or public

25 sources and be accepted by any trainee, or may be
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1 accepted by and credited to the current applicable

2 appropriation of such agency. Any such payments or

3 contributions to any employee in the nature of com4 pensation shall be in lieu, or in reduction, of com5 pensation received from the United States Govern6 ment.

7 SEC. 843. TERMINATION EXPENSES.

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

9 Act, the former authority of the Foreign Assistance Act

10 of 1961, the authority of section 23 of the Arms Export

11 Control Act, or other predecessor legislation shall remain

12 available for obligation for a period not to exceed eight

13 months from the date of any termination of assistance

14 under such Acts for the necessary expenses of winding up

15 programs related to such termination and may remain

16 available until expended. Funds obligated under the au17 thority of such Acts prior to the effective date of the termi18 nation of assistance may remain available for expenditure

19 for the necessary expenses of winding up programs related

20 to such termination notwithstanding any provision of law

21 restricting the expenditure of funds. In order to ensure

22 the effectiveness of such assistance, such expenses for or23 derly termination of programs may include the obligation

24 and expenditure of funds to complete the training or stud25 ies outside their countries of origin of students whose
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1 course of study or training program began before assist2 ance was terminated.

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

4 of making an equitable settlement of termination claims

5 under extraordinary contractual relief standards, the

6 President is authorized to adopt as a contract or other

7 obligation of the United States Government, and assume

8 (in whole or in part) any liabilities arising thereunder, any

9 contract with a United States or third-country contractor

10 that had been funded with assistance under such Acts

11 prior to the termination of assistance.

12 (c) TERMINATION EXPENSES.—Amounts certified as

13 having been obligated for assistance subsequently termi14 nated by the President, or pursuant to any provision of

15 law, shall continue to remain available and may be

16 reobligated to meet any necessary expenses arising from

17 the termination of such assistance.

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

19 any other Act requiring the termination of assistance

20 under this or any other Act shall not be construed to re21 quire the termination of guarantee commitments that were

22 entered into prior to the effective date of the termination

23 of assistance.

24 (e) RELATION TO OTHER PROVISIONS.—Unless spe25 cifically made inapplicable by another provision of law, the
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1 provisions of this section shall be applicable to the termi2 nation of assistance pursuant to any provision of law.

3 Subchapter 4—Personnel

4 SEC. 851. EMPLOYMENT OF PERSONNEL.

5 (a) AUTHORITY.—Any agency or officer of the United

6 States Government carrying out functions under this Act

7 is authorized to employ such personnel as the President

8 deems necessary to carry out the provisions and purposes

9 of this Act.

10 (b) PERFORMANCE OF FUNCTIONS OUTSIDE THE

11 UNITED STATES.—

12 (1) AUTHORITY TO EMPLOY OR ASSIGN.—For

13 the purpose of performing functions under this Act

14 outside the United States, the President may—

15 (A) employ or assign individuals, or

16 (B) authorize the employment or assign17 ment of officers or employees by agencies of the

18 United States Government which are not au19 thorized to utilize the Foreign Service personnel

20 system.

21 (2) COMPENSATION.—Individuals employed or

22 assigned under paragraph (1) shall receive com23 pensation at any of the rates provided for under sec24 tion 402 or section 403 of the Foreign Service Act

25 of 1980, or under chapter 53 of title 5, United
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1 States Code, or at any other rate authorized by law,

2 together with allowances and benefits under the For3 eign Service Act of 1980.

4 (3) REEMPLOYMENT RIGHTS.—Individuals so

5 employed or assigned shall be entitled to the same

6 benefits as are provided by section 310 of that Act

7 for individuals appointed to the Foreign Service, ex8 cept to the extent that the President may specify

9 otherwise in cases in which the period of employ10 ment or assignment exceeds 30 months.

11 (c) CERTAIN FUNDS DEEMED OBLIGATED FOR CER12 TAIN SERVICES.—Funds provided for in agreements with

13 foreign countries for the furnishing of services under this

14 Act with respect to specific projects shall be deemed to

15 be obligated for the services of personnel employed by

16 agencies of the United States Government (other than the

17 United States Agency for International Development or

18 the Department of Defense) as well as personnel not em19 ployed by the United States Government.

20 SEC. 852. DETAIL OF PERSONNEL TO FOREIGN GOVERN21 MENTS AND INTERNATIONAL ORGANIZA22 TIONS.

23 (a) DETAILS TO FOREIGN GOVERNMENTS.—When

24 consistent with and in furtherance of the purposes of this

25 Act, the head of any agency of the United States Govern-
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1 ment is authorized to detail any officer or employee of that

2 agency to any office or position with any foreign govern3 ment or foreign government agency, where acceptance of

4 such office or position does not involve the taking of an

5 oath of allegiance to another government or acceptance of

6 compensation or other benefits form any foreign country

7 by such officer or employee.

8 (b) DETAILS TO INTERNATIONAL ORGANIZATIONS.—

9 When consistent with and in furtherance of the purposes

10 of this Act, the head of any agency of the United States

11 Government is authorized to detail to any international

12 organization or arrangement, any officer or employee of

13 that agency to serve with, or as a member of, the inter14 national staff of such organization, or to render any tech15 nical, scientific, or professional advice or service to, or in

16 cooperation with, such organization.

17 (c) STATUS OF PERSONNEL DETAILED.—

18 (1) RETENTION OF BENEFITS.—Any officer or

19 employee, while detailed under this section—

20 (A) shall be considered an officer or em21 ployee of the United States Government and of

22 the agency of the United States Government

23 from which detailed for the purpose of preserv24 ing his or her allowances, privileges, rights, se25 niority, and other benefits as such; and
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1 (B) shall continue to receive compensation,

2 allowances, and benefits from funds appro3 priated to that agency or made available to that

4 agency under this Act, or may be detailed on a

5 leave without pay status.

6 (2) ALLOWANCES.—Any officer or employee as7 signed, detailed, or appointed under this section may

8 receive (under such regulations as the President may

9 prescribe) representation allowances similar to those

10 allowed under section 905 of the Foreign Service Act

11 of 1980. The authorization of such allowances and

12 other benefits and the payment thereof out of any

13 appropriations available therefor shall be considered

14 as meeting all the requirements of section 5536 of

15 title 5, United States Code.

16 (d) TERMS OF DETAIL.—Details may be made under

17 this section or section 408 of the Mutual Security Act of

18 1954 in accordance with any of the following paragraphs:

19 (1) Without reimbursement to the United

20 States Government by the foreign government or

21 international organization.

22 (2) Upon agreement by the foreign government

23 or international organization to reimburse the

24 United States Government for compensation, travel

25 expenses, benefits, and allowances, or any part
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1 thereof, payable to the officer or employee concerned

2 during the period of detail. Such reimbursements

3 (including foreign currencies) shall be credited to the

4 appropriation, fund, or account utilized for paying

5 such compensation, travel expenses, benefits, or al6 lowances, or to the appropriation, fund, or account

7 currently available for such purposes.

8 (3) Upon an advance of funds, property, or

9 services by the foreign government or international

10 organization to the United States Government ac11 cepted with the approval of the President for speci12 fied uses in furtherance of the purposes of this Act.

13 Funds so advanced may be established as a separate

14 fund in the Treasury of the United States Govern15 ment, to be available for the specified uses, and to

16 be used for reimbursement of appropriations or di17 rect expenditure subject to the provisions of this

18 Act, any unexpended balance of such account to be

19 returned to the foreign government or international

20 organization.

21 (4) Subject to the receipts by the United States

22 Government of a credit to be applied against the

23 payment by the United States Government of its

24 share of the expenses of the international organiza25 tion to which the officer or employee is detailed,
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1 such credit to be based upon the compensation, trav2 el expenses, benefits and allowances, or any part

3 thereof, payable to such officer or employee during

4 the period of detail in accordance with subsection

5 (c).

6 SEC. 853. OFFICES ABROAD.

7 (a) ESTABLISHMENT.—The President may maintain

8 offices or staffs outside the United States in such coun9 tries and for such periods of time as may be necessary

10 to carry out this Act.

11 (b) APPOINTMENT.—The President may appoint a

12 head and deputy head of each office or staff maintained

13 under subsection (a).

14 (c) COMPENSATION AND ALLOWANCES.—Such head

15 shall be entitled to receive such compensation and allow16 ances as are authorized by the Foreign Service Act of

17 1980, not to exceed those authorized for a chief of mission

18 (as defined in section 102(a)(3) of that Act), as the Presi19 dent deems appropriate.

20 Subchapter 5—Definitions, Conforming

21 Changes, Repeals

22 SEC. 861. DEFINITIONS.

23 For purposes of this Act, the following terms have

24 the following meanings:
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1 (1) AGENCY OF THE UNITED STATES GOVERN2 MENT.—The term ‘‘agency of the United States

3 Government’’ includes any agency, department,

4 board, wholly or partly owned corporation, instru5 mentality, commission, or establishment of the

6 United States Government.

7 (2) COUNTRY.—The term ‘‘country’’ includes

8 area.

9 (3) FUNCTION.—The term ‘‘function’’ includes

10 any duty, obligation, power, authority, responsibility,

11 right, privilege, discretion, or activity.

12 (4) GROSS VIOLATIONS OF INTERNATIONALLY

13 RECOGNIZED HUMAN RIGHTS.—The term ‘‘gross vio14 lations of internationally recognized human rights’’

15 includes torture or cruel, inhuman, or degrading

16 treatment or punishment, prolonged detention with17 out charges and trial, causing the disappearance of

18 persons by the abduction and clandestine detention

19 of those persons, and other flagrant denial of the

20 right to life, liberty, or the security of person.

21 (5) INCLUDES.—The term ‘‘includes’’ means in22 cludes but is not limited to.

23 (6) NOTWITHSTANDING.—The terms ‘‘notwith24 standing any other provision of law’’ and ‘‘notwith25 standing any provision of this or any other Act’’
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1 shall not apply to title 31, United States Code, the

2 Congressional Budget and Impoundment Control

3 Act of 1974, the Balanced Budget and Emergency

4 Deficit Control Act of 1985, and the Budget En5 forcement Act of 1990.

6 (7) OFFICER OR EMPLOYEE.—The term ‘‘offi7 cer or employee’’ means civilian personnel of the

8 United States Government and members of the

9 Armed Forces.

10 (8) UNITED STATES.—The term ‘‘United

11 States’’, when used in the geographic sense, includes

12 the Commonwealth of Puerto Rico, the Common13 wealth of the Northern Mariana Islands, Guam,

14 American Samoa, the Virgin Islands, and any other

15 territory or possession of the United States.

16 (9) MAJOR ILLICIT DRUG PRODUCING COUN17 TRY.—The term ‘‘major illicit drug producing coun18 try’’ has the same meaning as is given to such term

19 in section 481(e) of the Foreign Assistance Act of

20 1961 as in effect before the effective date of this

21 Act.

22 (10) MAJOR DRUG TRANSIT COUNTRY.—The

23 term ‘‘major drug transit country’’ means a coun24 try—
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1 (A) that is a significant direct source of il2 licit narcotic or psychotropic drugs or other

3 controlled substances significantly affecting the

4 United States;

5 (B) through which are transported such

6 drugs or substances; or

7 (C) through which significant sums of

8 drug-related profits or monies are laundered

9 with the knowledge or complicity of the govern10 ment.

11 (11) NARCOTIC AND PSYCHOTROPIC DRUGS

12 AND OTHER CONTROLLED SUBSTANCES.—The term

13 ‘‘narcotic and psychotropic drugs and other con14 trolled substances’’ has the same meaning as is

15 given by any applicable international narcotics con16 trol agreement or domestic law of the country or

17 countries concerned.

18 (12) ARMED FORCES.—The term ‘‘Armed

19 Forces’’ means the Army, Navy, Air Force, Marine

20 Corps, and Coast Guard of the United States.

21 (13) DEFENSE ARTICLE AND RELATED

22 TERMS.—The terms ‘‘defense article’’, ‘‘significant

23 military equipment’’, and ‘‘major defense equip24 ment’’ shall have the same meaning as in the Arms

25 Export Control Act. The term ‘‘defense service’’ in-
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1 cludes any service (including education and train2 ing), test, inspection, repair, publication, or technical

3 or other assistance or defense information used for

4 the purpose of furnishing assistance administered

5 through the Department of Defense under this Act.

6 (14) EXCESS DEFENSE ARTICLES.—The term

7 ‘‘excess defense articles’’ means the quantity of de8 fense articles owned by the United States Govern9 ment, and not procured in anticipation of defense

10 assistance or sales requirements, or pursuant to a

11 defense assistance or sales order, which is in excess

12 of the Approved Acquisition Objective of all Depart13 ment of Defense Components at the time such arti14 cles are dropped from inventory by the supplying

15 agency for delivery to countries or international or16 ganizations under this Act.

17 (15) VALUE.—The term ‘‘value’’ means—

18 (A) with respect to an excess defense arti19 cle, the actual value of the article plus the gross

20 cost incurred by the United States Government

21 in repairing, rehabilitating, or modifying the ar22 ticle, except that for purposes of section 831(c)

23 such actual value shall not be taken into ac24 count;
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1 (B) with respect to a nonexcess defense ar2 ticle delivered from inventory to a foreign coun3 try or international organization under this Act,

4 the acquisition cost to the United States Gov5 ernment, adjusted as appropriate for condition

6 and market value; and

7 (C) with respect to a nonexcess defense ar8 ticle delivered from new procurement to a for9 eign country or international organization

10 under this Act, the contract or production costs

11 of such article.

12 SEC. 862. EFFECTIVE DATE.

13 Except as otherwise provided in this Act, the provi14 sions of this Act shall take effect on October 1, 1995.

15 SEC. 863. SAVINGS PROVISIONS.

16 (a) IN GENERAL.—(1) Except as may be expressly

17 provided to the contrary in this Act, all determinations,

18 authorizations, regulations, orders, contracts, agreements,

19 and other actions issued, undertaken, or entered into

20 under authority of any provision of law repealed by this

21 Act shall continue in full force and effect until modified

22 by appropriate authority.

23 (2) Wherever provisions of this Act establish condi24 tions which must be complied with before use may be

25 made of authority contained in, or funds made available
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1 to carry out the provisions of, this Act, compliance with,

2 or satisfaction of, substantially similar conditions under

3 provisions repealed by this Act shall be deemed to con4 stitute compliance with the conditions established by this

5 Act.

6 (3) Funds made available pursuant to provisions of

7 law repealed by this Act shall, unless otherwise authorized

8 or provided by law, remain available for their original pur9 poses in accordance with the provisions of law originally

10 applicable thereto, or in accordance with the provisions of

11 law currently applicable to those purposes.

12 (4) Funds made available pursuant to provisions of

13 this Act may be used to complete or otherwise terminate

14 programs, projects, and activities authorized under prede15 cessor legislation.

16 (5) References in law to provisions repealed by this

17 Act may hereafter be deemed to be references to cor18 responding provisions of this Act, on a case-by-case basis

19 as may be appropriate.

20 (b) CERTAIN PRESIDENTIAL APPOINTEES.—The re21 peal by this Act of any provision of the Foreign Assistance

22 Act of 1961 providing for the appointment of an individual

23 to a position by the President, by and with the advice and

24 consent of the Senate, and the reenactment by this Act

25 of that provision in substantively identical form does not
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1 require the reappointment of the individual holding that

2 position on the effective date specified in section 862.

3 (c) SECTION 124(c) AUTHORITY.—Section 124(c) of

4 the Foreign Assistance Act of 1961, as in effect before

5 the effective date specified in section 862 of this Act, shall

6 be deemed to remain in effect on and after that date. For

7 purposes of this section, references in section 124(c) to

8 sections 101 and 102 of the Foreign Assistance Act of

9 1961 shall be deemed to be references to sections 3 and

10 101 of this Act, respectively.

11 (d) GUARANTEES AND LOANS UNDER FORMER AU12 THORITY.—Guarantees committed or outstanding under

13 the former authorities of sections 108, 222, and 222A of

14 the Foreign Assistance Act of 1961, as in effect before

15 the effective date specified in section 862 of this Act, loans

16 obligated under section 108 on or before such date, the

17 fees and interest collected in connection with such guaran18 tees and loans, and income on claims receivable with re19 spect to such guarantees and loans, shall continue to be

20 subject to provisions of such Act originally applicable to

21 those guarantees and loans and the Federal Credit Reform

22 Act of 1990.

23 (e) If any provision of this Act, or the application

24 of any provision to any circumstances or persons shall be

25 held invalid, the validity of the remainder of this Act, and
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1 of the applicability of such provision to other cir2 cumstances or persons shall not be affected thereby.

3 (f) FEDERAL ACT OF STATE DOCTRINE.—

4 (1) IN GENERAL.—Notwithstanding any other

5 provision of law, no court in the United States shall

6 decline on the ground of the federal act of state doc7 trine to make a determination on the merits giving

8 effect to the principles of international law in a case

9 in which claim of title or other right to property is

10 asserted by any party, including a foreign state (or

11 a party claiming through such state), based upon (or

12 traced through) a confiscation or other taking after

13 January 1, 1959, by an act of that state in violation

14 of the principles of international law, including the

15 principles of compensation and the other standards

16 set out in section 620(e)(1) of the Foreign Assist17 ance Act of 1961 as in effect before the effective

18 date of this section.

19 (2) EXCEPTIONS.—This subsection shall not be

20 applicable—

21 (A) in any case in which an act of a for22 eign state is not contrary to international law

23 or with respect to a claim of title or other right

24 to property acquired pursuant to an irrevocable

25 letter of credit of not more than 180 days dura-
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1 tion issued in good faith prior to the time of the

2 confiscation or other taking; or

3 (B) in any case with respect to which the

4 President determines that application of the act

5 of state doctrine is required in that particular

6 case by the foreign policy interests of the

7 United States and a suggestion to this effect is

8 filed on his behalf in that case with the court.

9 SEC. 864. CONFORMING AMENDMENTS.

10 (a) ADMINISTRATOR OF THE AGENCY FOR INTER11 NATIONAL DEVELOPMENT.—References in any Act to the

12 ‘‘Administrator of the Agency for International Develop13 ment’’, the ‘‘Administrator of the agency primarily respon14 sible for administering part I’’, or the ‘‘Administrator of

15 the agency primarily responsible for administering this

16 part’’ shall be deemed to be a reference to the Secretary

17 of State.

18 (b) AGENCY FOR INTERNATIONAL DEVELOPMENT.—

19 References in any Act to the ‘‘Agency for International

20 Development’’, the ‘‘Agency primarily responsible for ad21 ministering part I’’, or the ‘‘Agency primarily responsible

22 for administering this part’’ shall be deemed to be a ref23 erence to the Department of State.

24 (c) DIRECTOR OF THE TRADE AND DEVELOPMENT

25 AGENCY.—References in any Act to the ‘‘Director of the
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1 Trade and Development Agency’’ shall be deemed to be

2 a reference to the Chair of the Board of Directors of the

3 Overseas Private Investment Corporation.

4 (d) TRADE AND DEVELOPMENT AGENCY.—Ref5 erences in any Act to the ‘‘Trade and Development Agen6 cy’’ shall be deemed to be a reference to the Overseas Pri7 vate Investment Corporation.

8 (e) CHAPTER 1 OF PART I.—References in any Act

9 to ‘‘sections 103 through 106’’ or ‘‘chapter 1 of part I’’

10 of the Foreign Assistance Act of 1961 shall be deemed

11 to be a reference to section 101 of this Act.

12 (f) CHAPTER 4 OF PART II.—References in any Act

13 to ‘‘chapter 4 of part II’’ of the Foreign Assistance Act

14 of 1961 shall be deemed to be a reference to section 101

15 or title V of this Act, as the case may be.

16 SEC. 865. REPEAL OF OBSOLETE PROVISIONS.

17 (a) FOREIGN ASSISTANCE ACT OF 1961.—The For18 eign Assistance Act of 1961, as amended, is repealed ex19 cept for the first section, section 226, chapter 11 of part

20 I, and part IV.

21 (b) 1979 REORGANIZATION PLAN.—Reorganization

22 Plan No. 2 of 1979 is repealed.

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