```

[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 371 Introduced in Senate (IS)]

106th CONGRESS
  1st Session
                                 S. 371

   To provide assistance to the countries in Central America and the 
Caribbean affected by Hurricane Mitch and Hurricane Georges, to provide 
   additional trade benefits to certain beneficiary countries in the 
                   Caribbean, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            February 4, 1999

 Mr. Graham (for himself, Mr. DeWine, Mr. Coverdell, Mr. Domenici, Ms. 
  Landrieu, Mr. Dodd, Mr. Hatch, Mr. Frist, Mr. Mack, and Mr. Hagel) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL

 
   To provide assistance to the countries in Central America and the 
Caribbean affected by Hurricane Mitch and Hurricane Georges, to provide 
   additional trade benefits to certain beneficiary countries in the 
                   Caribbean, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Central American 
and Caribbean Relief Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
           TITLE I--UNITED STATES-CARIBBEAN TRADE ENHANCEMENT

Sec. 101. Short title.
Sec. 102. Statement of policy.
Sec. 103. Definitions.
Sec. 104. Temporary provisions to provide additional trade benefits to 
                            certain beneficiary countries.
Sec. 105. Adequate and effective protection for intellectual property 
                            rights.
Sec. 106. Duty-free treatment for certain beverages made with Caribbean 
                            rum.
          TITLE II--ECONOMIC SUPPORT FUND AND OTHER ASSISTANCE

Sec. 201. ESF assistance; Habitat for Humanity.
Sec. 202. Disaster assistance.
Sec. 203. Disaster mitigation.
                    TITLE III--DEPARTMENT OF DEFENSE

Sec. 301. Drawdown authority.
Sec. 302. Replacement of funds used for disaster relief and 
                            reconstruction in connection with Hurricane 
                            Mitch.
                TITLE IV--INTERNATIONAL MONETARY RELIEF

Sec. 401. Rescheduling and reduction of indebtedness.
Sec. 402. Contribution to a Central American Emergency Trust Fund.
                             TITLE V--OPIC

Sec. 501. Private sector development activities of the OPIC.
           TITLE VI--MICROCREDIT AND AGRICULTURAL ASSISTANCE

Sec. 601. Declaration of policy.
Sec. 602. Microenterprise assistance.
Sec. 603. Support for producer-owned cooperative marketing 
                            associations.
Sec. 604. Agricultural research and extension activities.
Sec. 605. Nonemergency food assistance programs.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) In October of 1998, Hurricane Mitch devastated areas of 
        the Caribbean and Central America. The National Hurricane 
        Center has called this storm ``the most deadly hurricane in the 
        Atlantic in over 200 years''. Hurricane Mitch killed 9,860 
        people and left approximately 3,000,000 people homeless in the 
        region.
            (2) Hurricane Georges hit the Florida Keys, the islands of 
        the Caribbean, and the Gulf coast of the United States in 
        September of 1998, causing more than $1,000,000,000 in damage. 
        The storm killed 250 people.
            (3) The total direct economic impact of Hurricane Mitch and 
        Hurricane Georges on Honduras, Nicaragua, the Dominican 
        Republic, El Salvador, and Guatemala amounts to $4,200,000,000. 
        Honduras' losses represent more than 50 percent of its gross 
        domestic product and Nicaragua lost a quarter of its gross 
        domestic product.
            (4) The United States must continue to play a leading role 
        in responding to the disaster and encourage others to 
        contribute to the recovery effort. For example, Taiwan has 
        contributed $50,800,000 in assistance for the construction of 
        roads and housing, the rehabilitation of agricultural 
        production, and the distribution of supplies. Sweden, Spain, 
        and France have sent engineering teams to the region to assess 
        damage to roads, and Japan and the European Union have pledged 
        millions of dollars in assistance. The United States praises 
        the efforts of these and other nations in assisting with the 
        rehabilitation of the region.
            (5) Approximately 356 bridges were destroyed in the region, 
        and 57 percent of the region's roads were impacted. The United 
        States equivalent of this would be the destruction of 3,900,000 
        miles of highway. These roads must be reconstructed quickly so 
        that farmers can transport their goods to market and much-
        needed medical supplies can reach rural areas.
            (6) Hurricane Mitch devastated the agricultural sector in 
        the affected areas of Central America and the Caribbean, 
        particularly the countries of Honduras and Guatemala. An 
        estimated 70 percent of Honduras' crops were destroyed by 
        Hurricane Mitch, including 90 percent of the country's banana 
        and grain crops. In Guatemala, an estimated 95 percent of the 
        nation's banana crop was damaged, 25-60 percent of the corn, 
        bean, coffee, and sugar crops were destroyed, and 30 percent of 
        the cattle was lost.
            (7) Approximately 50 percent of Central America and the 
        Caribbean's workforce is employed in agriculture. The 
        devastation to the agriculture sector by Hurricane Mitch has 
        resulted in a widespread shortage of food which is likely to 
        continue in the long term unless the region's agricultural 
sector is rehabilitated.
            (8) Agricultural assistance and training and microcredit 
        assistance will provide much needed aid to the affected areas 
        of Central America and the Caribbean as the areas rebuild their 
        agriculture sectors. The immediate distribution of food aid is 
        important in the short term, but it is essential that the 
        region be able to return to self-sufficiency in food production 
        so the citizens of Central America and the Caribbean will be 
        able to feed themselves once again.
            (9) The goal of United States assistance to the region 
        should focus on, in addition to the short-term disaster 
        assistance, long-term solutions for a successful economic 
        recovery of Central America and the Caribbean. Successful 
        economic recovery lies in the region's ability to expand its 
        international trade with important trading partners such as the 
        United States.
            (10) The Caribbean Basin Economic Recovery Act (referred to 
        in this Act as ``CBERA'') represents a permanent commitment by 
        the United States to encourage the development of strong 
        democratic governments and revitalized economies in neighboring 
        countries in the Caribbean Basin.
            (11) Thirty-four democratically elected leaders agreed at 
        the 1994 Summit of the Americas to conclude negotiation of a 
        Free Trade Area of the Americas (referred to in this title as 
        ``FTAA'') by the year 2005.
            (12) The economic security of the countries in the 
        Caribbean Basin will be enhanced by the completion of the FTAA.
            (13) Offering temporary benefits to Caribbean Basin 
        countries will enhance trade between the United States and the 
        Caribbean Basin, encourage development of trade and investment 
        policies that will facilitate participation of Caribbean Basin 
        countries in the FTAA, preserve the United States commitment to 
        Caribbean Basin beneficiary countries, help further economic 
        development in the Caribbean Basin region, and accelerate the 
        trend toward more open economies in the region.
            (14) Promotion of the growth of free enterprise and 
        economic opportunity in the Caribbean Basin will enhance the 
        national security interests of the United States.
            (15) Increased trade and economic activity between the 
        United States and Caribbean Basin beneficiary countries will 
        create expanding export opportunities for United States 
        businesses and workers.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the United States Agency for International 
        Development.
            (2) Affected areas of central america and the caribbean.--
        The term ``affected areas of Central America and the 
        Caribbean'' means areas in the Central American countries and 
        the Caribbean countries that incurred damage from Hurricane 
        Mitch in October of 1998.
            (3) Caribbean countries.--The term ``Caribbean countries'' 
        means any country listed in section 212(b) of the Caribbean 
        Basin Economic Recovery Act (19 U.S.C. 2702(b)) (other than 
        Central American countries).
            (4) Central american countries.--The term ``Central 
        American countries'' means Belize, Costa Rica, El Salvador, 
        Guatemala, Honduras, Nicaragua, and Panama.
            (5) OPIC.--The term ``OPIC'' means the Overseas Private 
        Investment Corporation.

           TITLE I--UNITED STATES-CARIBBEAN TRADE ENHANCEMENT

SEC. 101. SHORT TITLE.

    This title may be cited as the ``United States-Caribbean Basin 
Trade Enhancement Act''.

SEC. 102. STATEMENT OF POLICY.

    It is the policy of the United States to--
            (1) offer Caribbean Basin beneficiary countries willing to 
        prepare to become a party to the FTAA, or a comparable trade 
        agreement, tariff treatment essentially equivalent to that 
        accorded to products of NAFTA countries for certain products 
        not currently eligible for duty-free treatment under the CBERA; 
        and
            (2) seek the participation of Caribbean Basin beneficiary 
        countries in the FTAA or a trade agreement comparable to the 
        FTAA at the earliest possible date, with the goal of achieving 
        full participation in such agreement not later than 2005.

SEC. 103. DEFINITIONS.

    In this title:
            (1) Beneficiary country.--The term ``beneficiary country'' 
        has the meaning given the term in section 212(a)(1)(A) of the 
Caribbean Basin Economic Recovery Act (19 U.S.C. 2702(a)(1)(A)).
            (2) NAFTA.--The term ``NAFTA'' means the North American 
        Free Trade Agreement entered into between the United States, 
        Mexico, and Canada on December 17, 1992.
            (3) NAFTA country.--The term ``NAFTA country'' means any 
        country with respect to which the NAFTA is in force.

SEC. 104. TEMPORARY PROVISIONS TO PROVIDE ADDITIONAL TRADE BENEFITS TO 
              CERTAIN BENEFICIARY COUNTRIES.

    (a) Temporary Provisions.--Section 213(b) of the Caribbean Basin 
Economic Recovery Act (19 U.S.C. 2703(b)) is amended to read as 
follows:
    ``(b) Import-Sensitive Articles.--
            ``(1) In general.--Subject to paragraphs (2) through (4), 
        the duty-free treatment provided under this title does not 
        apply to--
                    ``(A) textile and apparel articles which were not 
                eligible articles for purposes of this title on January 
                1, 1994, as this title was in effect on that date;
                    ``(B) footwear not designated at the time of the 
                effective date of this title as eligible articles for 
                the purpose of the generalized system of preferences 
                under title V of the Trade Act of 1974;
                    ``(C) tuna, prepared or preserved in any manner, in 
                airtight containers;
                    ``(D) petroleum, or any product derived from 
                petroleum, provided for in headings 2709 and 2710 of 
                the HTS;
                    ``(E) watches and watch parts (including cases, 
                bracelets, and straps), of whatever type including, but 
                not limited to, mechanical, quartz digital, or quartz 
                analog, if such watches or watch parts contain any 
                material which is the product of any country with 
                respect to which HTS column 2 rates of duty apply; or
                    ``(F) articles to which reduced rates of duty apply 
                under subsection (h).
            ``(2) Transition period treatment of certain textile and 
        apparel articles.--
                    ``(A) Products covered.--During the transition 
                period, the preferential treatment described in 
                subparagraph (B) shall apply to the following products:
                            ``(i) Apparel articles assembled in a 
                        beneficiary country.--Apparel articles 
                        assembled in a beneficiary country from fabrics 
                        wholly formed and cut in the United States, 
                        from yarns wholly formed in the United States 
                        that are--
                                    ``(I) entered under subheading 
                                9802.00.80 of the HTS; or
                                    ``(II) entered under chapter 61 or 
                                62 of the HTS, if, after such assembly, 
                                the articles would have qualified for 
                                entry under subheading 9802.00.80 of 
                                the HTS but for the fact that the 
                                articles were subjected to stone-
                                washing, enzyme-washing, acid washing, 
                                perma-pressing, oven-baking, bleaching, 
                                garment-dyeing, or other similar 
                                processes.
                            ``(ii) Apparel articles cut and assembled 
                        in a beneficiary country.--Apparel articles cut 
                        in a beneficiary country from fabric wholly 
                        formed in the United States from yarns wholly 
                        formed in the United States, if such articles 
                        are assembled in such country with thread 
                        formed in the United States.
                            ``(iii) Handloomed, handmade, and folklore 
                        articles.--A handloomed, handmade, or folklore 
                        article of a beneficiary country identified 
                        under subparagraph (C) that is certified as 
                        such by the competent authority of such 
                        beneficiary country.
                            ``(iv) Textile luggage.--Textile luggage--
                                    ``(I) assembled in a beneficiary 
                                country from fabric wholly formed and 
                                cut in the United States, from yarns 
                                wholly formed in the United States, 
                                that is entered under subheading 
                                9802.00.80 of the HTS; or
                                    ``(II) assembled from fabric cut in 
                                a beneficiary country from fabric 
                                wholly formed in the United States from 
                                yarns wholly formed in the United 
                                States, if such luggage is assembled in 
                                such country with thread formed in the 
                                United States.
                            ``(v) Knit-to-shape.--Any textile or 
                        apparel article imported into the United States 
                        from a beneficiary country that is knit-to-
                        shape in a beneficiary country from yarns 
                        wholly formed in the United States.
                            ``(vi) Special rule for findings and 
                        trimmings.--
                                    ``(I) In general.--Textile and 
                                apparel articles imported into the 
                                United States from a beneficiary 
                                country may contain findings and 
                                trimmings of non-United States origin 
                                incorporated into the assembled product 
                                if the findings and trimmings do not 
                                exceed 25 percent of the cost of the 
                                components of the assembled product.
                                    ``(II) Definition.--For purposes of 
                                this clause, the term `findings and 
                                trimmings' includes sewing thread, 
                                hooks and eyes, snaps, buttons, bow 
                                buds, decorative lace trim, elastic 
                                strips, zippers (including zipper 
                                tapes), and labels. Elastic strips 
                                shall be treated as findings and 
                                trimmings only if they are less than 1 
                                inch in width and used in the 
                                production of brassieres.
                                    ``(III) Suit linings.--Certain non-
                                United States formed, United States cut 
                                interlinings for suit jackets and suit-
                                type jackets may be treated as findings 
                                and trimmings if the interlinings meet 
                                the requirements of the amendment to 
                                the Special Access Program in effect on 
                                April 3, 1998.
                    ``(B) Preferential treatment.--Except as provided 
                in subparagraph (E), during the transition period, the 
                articles described in subparagraph (A) shall enter the 
                United States free of duty and free of any quantitative 
                limitations.
                    ``(C) Handloomed, handmade, and folklore articles 
                defined.--For purposes of subparagraph (A)(iii), the 
                President, after consultation with the beneficiary 
                country concerned, shall determine which, if any, 
                particular textile and apparel goods of the country 
                shall be treated as being handloomed, handmade, or 
                folklore goods of a kind described in section 2.3 (a), 
                (b), or (c) or Appendix 3.1.B.11 of the Annex.
                    ``(D) Penalties for transshipments.--
                            ``(i) Penalties for exporters.--If the 
                        President determines, based on sufficient 
                        evidence, that an exporter has engaged in 
                        transshipment with respect to textile or 
                        apparel products from a beneficiary country, 
                        the President shall deny all benefits under 
                        this title to such exporter, and any successor 
                        of such exporter, for a period of 2 years.
                            ``(ii) Penalties for countries.--Whenever 
                        the President finds, based on sufficient 
                        evidence, that transshipment has occurred, the 
                        President shall request that the beneficiary 
                        country or countries through whose territory 
                        the transshipment has occurred take all 
                        necessary and appropriate actions to prevent 
                        such transshipment. If the President determines 
                        that a country is not taking such actions, the 
                        President shall reduce the quantities of 
                        textile and apparel articles that may be 
                        imported into the United States from such 
                        country by the quantity of the transshipped 
                        articles multiplied by 3.
                            ``(iii) Transshipment described.--
                        Transshipment within the meaning of this 
                        subparagraph has occurred when preferential 
                        treatment for a textile or apparel article 
                        under subparagraph (B) has been claimed on the 
                        basis of material false information concerning 
                        the country of origin, manufacture, processing, 
                        or assembly of the article or any of its 
                        components. For purposes of this clause, false 
                        information is material if disclosure of the 
                        true information would mean or would have meant 
                        that the article is or was ineligible for 
                        preferential treatment under subparagraph (B).
                    ``(E) Bilateral emergency actions.--
                            ``(i) In general.--The President may take 
                        bilateral emergency tariff actions of a kind 
                        described in section 4 of the Annex with 
                        respect to any apparel article imported from a 
                        beneficiary country if the application of 
                        tariff treatment under subparagraph (B) to such 
                        article results in conditions that would be 
                        cause for the taking of such actions under such 
                        section 4 with respect to a like article 
                        described in the same 8-digit subheading of the 
                        HTS that is imported from Mexico.
                            ``(ii) Rules relating to bilateral 
                        emergency action.--For purposes of applying 
                        bilateral emergency action under this 
                        subparagraph--
                                    ``(I) the requirements of paragraph 
                                (5) of section 4 of the Annex (relating 
                                to providing compensation) shall not 
                                apply;
                                    ``(II) the term `transition period' 
                                in section 4 of the Annex shall have 
                                the meaning given that term in 
                                paragraph (4)(C) of this subsection; 
                                and
                                    ``(III) the requirements to consult 
                                specified in section 4 of the Annex 
                                shall be treated as satisfied if the 
                                President requests consultations with 
                                the beneficiary country in question and 
                                the country does not agree to consult 
                                within the time period specified under 
                                section 4.
            ``(3) Customs procedures.--
                    ``(A) In general.--
                            ``(i) Regulations.--Any importer that 
                        claims preferential treatment under paragraph 
                        (2) shall comply with customs procedures 
                        similar in all material respects to the 
                        requirements of Article 502(1) of the NAFTA as 
                        implemented pursuant to United States law, in 
                        accordance with regulations promulgated by the 
                        Secretary of the Treasury.
                            ``(ii) Determination.--
                                    ``(I) In general.--In order to 
                                qualify for the preferential treatment 
                                under paragraph (2) and for a 
                                Certificate of Origin to be valid with 
                                respect to any article for which such 
                                treatment is claimed, there shall be in 
                                effect a determination by the President 
                                that each country described in 
                                subclause (II)--
                                            ``(aa) has implemented and 
                                        follows, or
                                            ``(bb) is making 
                                        substantial progress toward 
                                        implementing and following,
                                procedures and requirements similar in 
                                all material respects to the relevant 
                                procedures and requirements under 
                                chapter 5 of the NAFTA.
                                    ``(II) Country described.--A 
                                country is described in this subclause 
                                if it is a beneficiary country--
                                            ``(aa) from which the 
                                        article is exported, or
                                            ``(bb) in which materials 
                                        used in the production of the 
                                        article originate or in which 
                                        the article or such materials 
                                        undergo production that 
                                        contributes to a claim that the 
                                        article is eligible for 
                                        preferential treatment.
                    ``(B) Certificate of origin.--The Certificate of 
                Origin that otherwise would be required pursuant to the 
                provisions of subparagraph (A) shall not be required in 
                the case of an article imported under paragraph (2) if 
                such Certificate of Origin would not be required under 
                Article 503 of the NAFTA (as implemented pursuant to 
                United States law), if the article were imported from 
                Mexico.
            ``(4) Definitions and special rules.--For purposes of this 
        subsection--
                    ``(A) Annex.--The term `the Annex' means Annex 300-
                B of the NAFTA.
                    ``(B) Transition period.--The term `transition 
                period' means, with respect to a beneficiary country, 
                the period that begins on October 1, 1999, and ends on 
                September 30, 2005.''.
    (b) International Trade Commission Reports.--
            (1) Section 215(a) of the Caribbean Basin Economic Recovery 
        Act (19 U.S.C. 2704(a)) is amended to read as follows:
    ``(a) Reporting Requirement.--
            ``(1) In general.--The United States International Trade 
        Commission (in this section referred to as the `Commission') 
        shall submit to Congress and the President biennial reports 
        regarding the economic impact of this title on United States 
        industries and consumers.
            ``(2) First report.--The first report shall be submitted 
        not later than September 30 of the year following the year in 
        which the United States-Caribbean Basin Trade Enhancement Act 
        is enacted. No report shall be required under this section 
        after September 30, 2006.
            ``(3) Treatment of puerto rico, etc.--For purposes of this 
        section, industries in the Commonwealth of Puerto Rico and the 
        insular possessions of the United States are considered to be 
        United States industries.''.
            (2) Section 206(a) of the Andean Trade Preference Act (19 
        U.S.C. 3204(a)) is amended to read as follows:
    ``(a) Reporting Requirements.--
            ``(1) In general.--The United States International Trade 
        Commission (in this section referred to as the `Commission') 
        shall submit to Congress and the President biennial reports 
        regarding the economic impact of this title on United States 
        industries and consumers, and, in conjunction with other 
        agencies, the effectiveness of this title in promoting drug-
        related crop eradication and crop substitution efforts of the 
        beneficiary countries.
            ``(2) Submission.--During the period that this title is in 
        effect, the report required by paragraph (1) shall be submitted 
        on September 30 of each year that the report required by 
        section 215 of the Caribbean Basin Economic Recovery Act is not 
        submitted.
            ``(3) Treatment of puerto rico, etc.--For purposes of this 
        section, industries in the Commonwealth of Puerto Rico and the 
        insular possessions of the United States are considered to be 
        United States industries.''.
    (c) Technical and Conforming Amendments.--
            (1) In general.--
                    (A) Section 211 of the Caribbean Basin Economic 
                Recovery Act (19 U.S.C. 2701) is amended by inserting 
                ``(or other preferential treatment)'' after 
                ``treatment''.
                    (B) Section 213(a)(1) of the Caribbean Basin 
                Economic Recovery Act (19 U.S.C. 2703(a)(1)) is amended 
                by inserting ``and except as provided in subsection 
                (b)(2),'' after ``Tax Reform Act of 1986,''.
            (2) Definitions.--Section 212(a)(1) of the Caribbean Basin 
        Economic Recovery Act (19 U.S.C. 2702(a)(1)) is amended by 
        adding at the end the following new subparagraph:
                    ``(D) The term `NAFTA' means the North American 
                Free Trade Agreement entered into between the United 
                States, Mexico, and Canada on December 17, 1992.''.

SEC. 105. ADEQUATE AND EFFECTIVE PROTECTION FOR INTELLECTUAL PROPERTY 
              RIGHTS.

    Section 212(c) of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2702(c)) is amended by adding at the end the following flush 
sentence:
``Notwithstanding any other provision of law, the President may 
determine that a country is not providing adequate and effective 
protection of intellectual property rights under paragraph (9), even if 
the country is in compliance with the country's obligations under the 
Agreement on Trade-Related Aspects of Intellectual Property Rights 
described in section 101(d)(15) of the Uruguay Round Agreements Act (19 
U.S.C. 3511(d)(15)).''.

SEC. 106. DUTY-FREE TREATMENT FOR CERTAIN BEVERAGES MADE WITH CARIBBEAN 
              RUM.

    Section 213(a) of the Caribbean Basin Economic Recovery Act (19 
U.S.C. 2703(a)) is amended--
            (1) in paragraph (5), by striking ``chapter'' and inserting 
        ``title''; and
            (2) by adding at the end the following new paragraph:
    ``(6) Notwithstanding paragraph (1), the duty-free treatment 
provided under this title shall apply to liqueurs and spirituous 
beverages produced in the territory of Canada and Mexico from rum if--
            ``(A) such rum is the growth, product, or manufacture of a 
        beneficiary country or of the Virgin Islands of the United 
        States;
            ``(B) such rum is imported directly from a beneficiary 
        country or the Virgin Islands of the United States into the 
        territory of Canada and Mexico, and such liqueurs and 
        spirituous beverages are imported directly from the territory 
        of Canada and Mexico into the customs territory of the United 
        States;
            ``(C) when imported into the customs territory of the 
        United States, such liqueurs and spirituous beverages are 
        classified in subheading 2208.90 or 2208.40 of the HTS; and
            ``(D) such rum accounts for at least 90 percent by volume 
        of the alcoholic content of such liqueurs and spirituous 
        beverages.''.

          TITLE II--ECONOMIC SUPPORT FUND AND OTHER ASSISTANCE

SEC. 201. ESF ASSISTANCE; HABITAT FOR HUMANITY.

    (a) ESF Assistance.--There is authorized to be appropriated to the 
President for fiscal year 1999 $530,000,000 to carry out chapter 4 of 
part II of the Foreign Assistance Act of 1961 to be used for roads, 
agricultural investment, microcredit loans, water sanitation, health 
clinics, vaccinations, and technical assistance for housing in the 
affected areas of Central America and the Caribbean.
    (b) Assistance for Habitat For Humanity International To Respond to 
the Long-Range Central American Reconstruction.--Of the amount 
authorized to be appropriated under subsection (a), $50,000,000 are 
authorized to be available over a period of 5 years for eligible 
expenses in connection with developing new or renovating existing 
structures to provide decent, safe, and sanitary nonluxury dwellings in 
the countries of Central America and the Caribbean for families and 
persons who otherwise would be unable to afford to purchase a dwelling.
    (c) Availability of Funds.--Amounts appropriated pursuant to 
subsection (b) are authorized to remain available until expended.

SEC. 202. DISASTER ASSISTANCE.

    (a) In General.--In addition to amounts otherwise available for 
such purpose, there are authorized to be appropriated to the President 
for fiscal year 1999 $20,000,000 to carry out chapter 9 of part I of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2292 et seq.; relating to 
international disaster assistance) with respect to affected countries 
of Central America and the Caribbean.
    (b) Availability of Funds.--Amounts appropriated under this section 
are authorized to remain available until expended.

SEC. 203. DISASTER MITIGATION.

    (a) United States Geological Survey Imaging.--There is authorized 
to be appropriated to the United States Geological Survey $15,000,000 
to conduct imaging and analysis in Honduras and Nicaragua to minimize 
future loss of life and property.
    (b) Department of Interior.--There is authorized to be appropriated 
to the Department of the Interior $12,000,000 to develop a river 
monitoring system in Honduras.

                    TITLE III--DEPARTMENT OF DEFENSE

SEC. 301. DRAWDOWN AUTHORITY.

    (a) In General.--The President is authorized to direct the drawdown 
under section 506 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2318) of defense articles from the stocks of the Department of Defense 
and defense services of the Department of Defense for the purposes of 
providing disaster relief and reconstruction to affected areas of 
Central America and the Caribbean.
    (b) Limitation.--The aggregate value (as defined in section 644(m) 
of the Foreign Assistance Act of 1961) of assistance provided under 
this section may not exceed $75,000,000 in fiscal year 1999.
    (c) Additional Existing Authority.--The aggregate value of the 
drawdown authority under this section is provided in addition to the 
aggregate value of drawdown authority otherwise available to the 
President for fiscal year 1999.

SEC. 302. REPLACEMENT OF FUNDS USED FOR DISASTER RELIEF AND 
              RECONSTRUCTION IN CONNECTION WITH HURRICANE MITCH.

    In addition to amounts authorized to be appropriated under any 
other law for the Department of Defense for the fiscal year ending on 
September 30, 1999, funds are hereby authorized to be appropriated for 
the use of the Armed Forces and other activities and agencies of the 
Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
            (1) For the New Horizons Program, $70,000,000, of which 
        $56,000,000 is available for use for Central America and the 
        Dominican Republic, and $14,000,000 is available to pay for the 
        National Guard and Reserve.
            (2) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $50,000,000, to remain available until September 30, 
        2000.
            (3) For the CINC Initiative Fund, $20,000,000.

                TITLE IV--INTERNATIONAL MONETARY RELIEF

SEC. 401. RESCHEDULING AND REDUCTION OF INDEBTEDNESS.

    (a) Authority To Reschedule Debt.--The President is authorized to 
reschedule the repayment of interest owed to the United States (or any 
agency of the United States) in fiscal years 1999 and 2000 by the 
Governments of Honduras and Nicaragua on indebtedness outstanding as of 
October 1, 1998.
    (b) Authority To Reduce Debt.--
            (1) Authority.--The President shall reduce the amount owed 
        to the United States (or any agency of the United States) by 
        the Government of Honduras that is outstanding as of October 1, 
        1998, as a result of concessional loans made to Honduras by the 
        United States under part I or chapter 4 of part II of the 
        Foreign Assistance Act of 1961, or predecessor foreign economic 
        assistance legislation.
            (2) Appropriations requirement.--The authority provided by 
        this section may be exercised only in such amounts or to such 
        extent as is provided in advance by appropriations Acts.
            (3) Certain prohibitions inapplicable.--
                    (A) A reduction of debt pursuant to this section 
                shall not be considered assistance for purposes of any 
                provision of law limiting assistance to a country.
                    (B) The authority of this section may be exercised 
                notwithstanding section 620(r) of the Foreign 
                Assistance Act of 1961 or section 321 of the 
                International Development and Food Assistance Act of 
                1975.
    (c) Implementation of Debt Reduction.--
            (1) In general.--The debt reduction pursuant to subsection 
        (b) shall be accomplished by the exchange of a new obligation 
        for obligations outstanding as of the date specified in 
        subsection (b)(1).
            (2) Exchange of obligations.--The President shall notify 
        the agency primarily responsible for administering part I of 
        the Foreign Assistance Act of 1961 of the agreement with 
        Honduras to exchange a new obligation for outstanding 
        obligations pursuant to this subsection. At the direction of 
        the President, the old obligations shall be canceled and a new 
        debt obligation for the country shall be established, and the 
        agency primarily responsible for administering part I of the 
        Foreign Assistance Act of 1961 shall make an adjustment in its 
        accounts to reflect the debt reduction.
    (d) Currency of Payment.--The principal amount of each new 
obligation issued pursuant to subsection (c) shall be repaid in United 
States dollars.
    (e) Deposit of Payments.--Principal repayments of new obligations 
shall be deposited in the United States Government account established 
for principal repayments of the obligations for which those obligations 
were exchanged.
    (f) Rate of Interest.--New obligations issued by a beneficiary 
country pursuant to subsection (c) shall bear interest at concessional 
rates.

SEC. 402. CONTRIBUTION TO A CENTRAL AMERICAN EMERGENCY TRUST FUND.

    (a) Authority To Contribute.--The United States Governor of the 
International Bank for Reconstruction and Development is authorized on 
behalf of the United States to contribute $25,000,000 to the Central 
American Emergency Trust Fund under the Bank, except that any 
commitment to make such contribution shall be made subject to obtaining 
the necessary appropriations.
    (b) Authorization of Appropriations.--In order to pay for the 
United States contribution to the Central American Emergency Trust Fund 
under the International Bank for Reconstruction and Development 
provided for in subsection (a), there is authorized to be appropriated 
to the Department of the Treasury $25,000,000, without fiscal year 
limitation.

                             TITLE V--OPIC

SEC. 501. PRIVATE SECTOR DEVELOPMENT ACTIVITIES OF THE OPIC.

    (a) Purpose.--The purpose of this section is to encourage OPIC to 
work with United States businesses and other United States entities to 
invest in the affected areas of Central America and the Caribbean, 
particularly in ways that will help promote sustainable development.
    (b) Sense of Congress.--It is the sense of Congress that OPIC 
should in accordance with its mandate to foster private investment and 
enhance the ability of private enterprise to make its full contribution 
to the development process, exercise its authority under law to 
increase efforts to promote and support United States sponsored private 
investment in the affected areas of Central America and the Caribbean, 
including--
            (1) issuing loans, guaranties, and insurance, to support 
        infrastructure, agriculture, small business, tourism, and other 
        projects as appropriate; and
            (2) undertaking a special initiative that includes--
                    (A) sending a needs assessment team to the region 
                to determine ways in which OPIC services can best 
                support the essential investment required to restore 
                infrastructure and other critical services in the 
                countries impacted by the disaster;
                    (B) engaging in an exhaustive outreach program to 
                involve United States companies in the recovery process 
                and exploring potential new projects which will assist 
                Central America and the Caribbean;
                    (C) consulting and coordinating with host country 
                governments to promote private investment in priority 
                sectors; and
                    (D) utilizing existing equity funds to support 
                developmental private sector projects.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to OPIC $1,000,000 for fiscal year 1999 to cover the 
administrative costs of the activities described in subsection (b).
    (d) Pilot Equity Finance Program.--Section 234 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2194) is amended--
            (1) in subsection (g)--
                    (A) in paragraph (1), by inserting, ``beginning on 
                the date of establishment of the revolving fund 
                described in paragraph (5)'' after ``4-year pilot 
                program'';
                    (B) in the heading of paragraph (2), by striking 
                ``sub-saharan africa and caribbean basin'' and 
                inserting ``sub-saharan africa, caribbean basin, and 
                central america''; and
                    (C) in paragraph (2), by inserting ``Central 
                American and Caribbean countries affected by Hurricane 
                Mitch and Hurricane Georges,'' after ``Africa''; and
            (2) by redesignating subsection (c) (the second place it 
        appears) as paragraph (5); and
            (3) in paragraph (5) (as redesignated by paragraph (2) of 
        this subsection)--
                    (A) by striking ``$10,000,000'' and inserting 
                ``$250,000,000''; and
                    (B) by indenting the paragraph one full measure.

           TITLE VI--MICROCREDIT AND AGRICULTURAL ASSISTANCE

SEC. 601. DECLARATION OF POLICY.

    It is the policy of the United States, consistent with title XII of 
part I of the Foreign Assistance Act of 1961, to support the 
governments of Central American and Caribbean countries, United States 
and nongovernmental organizations, universities, businesses, and 
international agencies, to help ensure the availability of basic 
nutrition and economic opportunities for individuals in the affected 
region, through sustainable agriculture and rural development.

 SEC. 602. MICROENTERPRISE ASSISTANCE.

    (a) Bilateral Assistance.--In providing disaster assistance in the 
aftermath of Hurricanes Mitch and Georges, the Administrator shall, to 
the extent practicable, use credit and microcredit assistance to 
rehabilitate agriculture production in the affected areas of Central 
America and the Caribbean. In providing assistance, the Administrator 
should use the applied research and technical assistance capabilities 
of United States land-grant universities.
    (b) Multilateral Assistance.--The Administrator shall continue to 
work with other countries, international organizations (including 
multilateral development institutions), and entities assisting 
microenterprises and shall develop a comprehensive and coordinated 
strategy for providing microenterprise assistance for Central America 
and the Caribbean.

SEC. 603. SUPPORT FOR PRODUCER-OWNED COOPERATIVE MARKETING 
              ASSOCIATIONS.

    (a) Purposes.--The purposes of this section are--
            (1) to support producer-owned cooperative purchasing and 
        marketing associations in Central America and the Caribbean;
            (2) to strengthen the capacity of farmers in Central 
        America and the Caribbean to participate in national and 
        international private markets and to promote rural development 
        in the region;
            (3) to encourage the efforts of farmers in Central America 
        and the Caribbean to increase their productivity and income 
        through improved access to farm supplies, seasonal credit, 
        technical expertise; and
            (4) to support small businesses in Central America and the 
        Caribbean as they grow beyond microenterprises.
    (b) Support for Producer-Owned Cooperative Marketing 
Associations.--
            (1) Activities.--The Administrator is authorized to utilize 
        relevant foreign assistance programs and initiatives for 
        Central America and the Caribbean region to support private 
        producer-owned cooperative marketing associations in the 
        region, including rural business associations that are owned 
        and controlled by farmer shareholders.
            (2) Other activities.--In addition to carrying out 
        paragraph (1), the Administrator is encouraged--
                    (A) to cooperate with governments of foreign 
                countries, including governments of political 
                subdivisions of such countries, their agricultural 
                research universities, and particularly with United 
                States nongovernmental organizations and United States 
                land-grant universities, that have demonstrated 
                expertise in the development and promotion of 
                successful private producer-owned cooperative marketing 
                associations; and
                    (B) to facilitate partnerships between United 
                States and Central America and the Caribbean 
                cooperatives and private businesses to enhance the 
                capacity and technical and marketing expertise of 
                business associations in the region.

SEC. 604. AGRICULTURAL RESEARCH AND EXTENSION ACTIVITIES.

    (a) Development of Plan.--The Administrator, in consultation with 
the Secretary of Agriculture and appropriate Department of Agriculture 
agencies, especially the Cooperative State, Research, Education and 
Extension Service (CSREES), shall develop a comprehensive plan to 
coordinate and build on the research and extension activities of United 
States land-grant universities, international agricultural research 
centers, and national agricultural research and extension centers in 
Central America and the Caribbean.
    (b) Additional Requirements.--The plan shall seek to ensure that--
            (1) research and extension activities respond to the needs 
        of the agriculture sectors devastated by Hurricane Mitch while 
        developing the potential and skills of researchers, extension 
        agents, farmers, and agribusiness persons in the region so that 
        these individuals may continue to change others in the future; 
        and
            (2) sustainable agricultural methods of farming will be 
        considered together with new technologies in rehabilitating 
        agricultural production in the region.

SEC. 605. NONEMERGENCY FOOD ASSISTANCE PROGRAMS.

    (a) In General.--In providing nonemergency assistance under title 
II of the Agricultural Trade Development and Assistance Act of 1954 (7 
U.S.C. 1721 et seq.), the Administrator shall ensure that--
            (1) in planning, decisionmaking, and providing assistance, 
        the Administrator takes into consideration local input and 
        participation directly and through United States and indigenous 
        private and voluntary organizations;
            (2) each of the nonemergency activities described in 
        paragraphs (2) through (6) of section 201 of such Act (7 U.S.C. 
        1721), including programs that provide assistance to people of 
        any age group who are otherwise unable to meet their basic food 
        needs (including feeding programs for the disabled, orphaned, 
        elderly, sick and dying), are carried out; and
            (3) greater flexibility is provided for program and 
        evaluation plans so that such assistance may be developed to 
        meet local needs, as provided for in section 202(f) of such Act 
        (7 U.S.C. 1722(f )).
    (b) Other Requirements.--In providing assistance under the 
Agriculture Trade Development and Assistance Act of 1954, the Secretary 
of Agriculture and the Administrator shall ensure that commodities are 
provided in a manner that is consistent with section 403 (a) and (b) of 
such Act (7 U.S.C. 1733 (a) and (b)).
                                 <all>
```