Calendar No. 132

104TH CONGRESS

1ST SESSION S. 961

[Report No. 104–99]

A BILL

To amend the Foreign Assistance Act of 1961 and

and for other purposes.ance programs for fiscal years 1996 and 1997,duced levels of appropriations for foreign assistthe Arms Export Control Act to authorize reJUNE 23 (legislative day, JUNE 19), 1995

Read twice and placed on the calendar
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Calendar No. 132

104TH CONGRESS

1ST SESSION S. 961

[Report No. 104–99]

To amend the Foreign Assistance Act of 1961 and the Arms Export Control

Act to authorize reduced levels of appropriations for foreign assistance

programs for fiscal years 1996 and 1997, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 23 (legislative day, JUNE 19), 1995

Mr. HELMS, from the Committee on Foreign Relations, reported the following

original bill; which was read twice and placed on the calendar

A BILL

To amend the Foreign Assistance Act of 1961 and the Arms

Export Control Act to authorize reduced levels of appropriations for foreign assistance programs for fiscal years

1996 and 1997, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Foreign Aid Reduction

5 Act of 1995’’.
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1 SEC. 2. TABLE OF CONTENTS.

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

Sec. 1. Short title.

Sec. 2. Table of contents.

Sec. 3. Congressional findings; statement of policy.

Sec. 4. Definition.

TITLE I—DEFENSE AND SECURITY ASSISTANCE

CHAPTER 1—MILITARY AND RELATED ASSISTANCE

SUBCHAPTER A—FOREIGN MILITARY FINANCING PROGRAM

Sec. 101. Authorization of appropriations.

Sec. 102. Loans for Greece and Turkey.

Sec. 103. Loans for European countries emerging from communist domination.

Sec. 104. Terms of loans.

Sec. 105. Nonrepayment of grant assistance.

SUBCHAPTER B—OTHER ASSISTANCE

Sec. 111. Defense drawdown special authorities.

Sec. 112. Stockpiles of defense articles.

Sec. 113. Transfer of excess defense articles.

CHAPTER 2—INTERNATIONAL MILITARY EDUCATION AND TRAINING

Sec. 121. Authorization of appropriations.

Sec. 122. Additional requirements relating to international military education

and training.

CHAPTER 3—ANTITERRORISM ASSISTANCE

Sec. 131. Authorization of appropriations.

Sec. 132. Antiterrorism training assistance.

CHAPTER 4—NARCOTICS CONTROL ASSISTANCE

Sec. 141. Authorization of appropriations.

CHAPTER 5—PEACEKEEPING OPERATIONS

Sec. 151. Peacekeeping operations.

CHAPTER 6—OTHER PROVISIONS

Sec. 161. Standardization of congressional review procedures for arms transfers.

Sec. 162. Standardization of third country transfers of defense articles.

Sec. 163. Increased standardization, rationalization, and interoperability of assistance and sales programs.

Sec. 164. Repeal of price and availability reporting requirement relating to proposed sale of defense articles and services.

Sec. 165. Definition of significant military equipment.

Sec. 166. Designation of major non-NATO allies.

Sec. 167. Competitive pricing for sales of defense articles and services.

Sec. 168. Depleted uranium ammunition.
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Sec. 169. Police training for certain foreign countries.

Sec. 170. Utilization of defense articles and services.

Sec. 171. Reports on arms sales.

Sec. 172. Elimination of the requirement for recoupment of nonrecurring cost

charges.

Sec. 173. Reduction in valuation of defense articles not intended for replacement.

Sec. 174. Elimination of special defense acquisition fund annual report.

TITLE II—TRADE AND EXPORT DEVELOPMENT

Sec. 201. Trade and Development Agency.

Sec. 202. Countries in transition to a free market economy.

TITLE III—PRIVATE SECTOR, ECONOMIC, AND DEVELOPMENT

ASSISTANCE

CHAPTER 1—PRIVATE SECTOR ENTERPRISE FUNDS

Sec. 301. Support for private sector enterprise funds.

Sec. 302. Micro- and small-enterprise development credit program.

CHAPTER 2—DEVELOPMENT ASSISTANCE FUND AND OTHER AUTHORITIES

Sec. 311. Development Assistance Fund.

Sec. 312. Economic Support Fund.

Sec. 313. Nonintervention concerning abortion.

Sec. 314. Host country cost-sharing.

Sec. 315. Private funding of private and voluntary organizations.

Sec. 316. Documentation requested of private and voluntary organizations.

Sec. 317. Prohibition on use of foreign assistance by private and voluntary organizations for office equipment in the United States.

Sec. 318. Prohibition on circumvention of aid restrictions.

Sec. 319. Foreign government parking fines.

Sec. 320. Limitation on waiver of sanctions against major drug producing and

drug-transit countries.

Sec. 321. Engaging the United States private sector in development.

CHAPTER 3—PEACE CORPS

Sec. 331. Peace Corps.

Sec. 332. Deadlines for evaluation of and report on health care services provided to Peace Corps volunteers.

CHAPTER 4—INTERNATIONAL DISASTER ASSISTANCE PROGRAMS

Sec. 341. International disaster assistance.

TITLE IV—PEACE AND SECURITY IN THE MIDDLE EAST

Sec. 401. Economic Support Fund assistance for Israel.

Sec. 402. Foreign Military Financing for Israel.

Sec. 403. Economic Support Fund assistance for Egypt.

Sec. 404. Foreign Military Financing for Egypt.

Sec. 405. Establishment of a free trade area for Taba, Elat, and Aqaba.

Sec. 406. Continuation of free trade treatment for Gaza and Jericho.

Sec. 407. Authorization for an industrial park on the border between the territories and Israel.
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TITLE V—OTHER REGIONAL ISSUES

Sec. 501. Lending to the independent states of the former Soviet Union required to be secured by certain export earnings.

Sec. 502. Restrictions on assistance for Nicaragua.

Sec. 503. Restrictions on assistance to North Korea and the Korean Peninsula

Energy Development Organization.

Sec. 504. Future of the United States military presence in Panama.

Sec. 505. Eligibility of Panama under the Arms Export Control Act.

Sec. 506. Certification requirements for Colombia with respect to illegal drug

production and drug trafficking activity for fiscal years 1996

and 1997.

Sec. 507. Report on Israeli debt.

Sec. 508. Report on involvement by senior Mexican government officials in illegal drug trafficking.

Sec. 509. Prohibition on anti-narcotics assistance to Burma.

Sec. 510. Clarification of restrictions under section 620E of the Foreign Assistance Act of 1961.

Sec. 511. Statement of policy and requirement for report on oil pipeline

through Azerbaijan, Armenia, Georgia, and Turkey.

Sec. 512. Reports on eradication of production and trafficking in narcotic drugs

and marijuana.

Sec. 513. Reports on commercial disputes with Pakistan.

Sec. 514. Nonproliferation and Disarmament Fund.

Sec. 515. Russian nuclear technology agreement with Iran.

Sec. 516. Supporting a resolution to the long-standing dispute regarding Cyprus.

Sec. 517. Reports on certain activities of the City of Moscow government.

Sec. 518. Statement of policy on Africa.

TITLE VI—INTERNATIONAL ORGANIZATIONS AND PROGRAMS

Sec. 601. Voluntary contributions; United Nations Children’s Fund.

Sec. 602. United Nations Fund for Population Activities.

Sec. 603. Withholding of United States proportionate share for programs of

international organizations.

Sec. 604. Reports on voluntary contributions to international organizations by

all United States Government agencies.

Sec. 605. Restrictions on funding for United Nations Development Program.

Sec. 606. Replenishment of the Asian Development Bank.

Sec. 607. Republic of China (Taiwan’s) participation in the United Nations.

Sec. 608. Republic of China (Taiwan’s) participation in the World Trade Organization.

TITLE VII—SPECIAL AUTHORITIES AND GENERAL PROVISIONS

CHAPTER 1—REPORTING REQUIREMENTS

Sec. 701. Annual allocation reports.

Sec. 702. Report on expropriation of United States property.

CHAPTER 2—GENERAL PROVISIONS

Sec. 711. National interest, economic freedom, and graduation requirements.

Sec. 712. Termination of assistance.

Sec. 713. Prohibition on assistance to foreign governments engaged in espionage against the United States.
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Sec. 714. Foreign state support for acts of international terrorism.

Sec. 715. Restriction on assistance to nuclear proliferators.

Sec. 716. Prohibition on foreign assistance to foreign governments not implementing extradition treaties.

Sec. 717. Impact on jobs in the United States.

Sec. 718. Nonapplicability of cargo preference requirements.

Sec. 719. Prohibition on foreign assistance to foreign governments employing

mercenary forces.

Sec. 720. Transportation expenses for delivery of humanitarian assistance.

Sec. 721. Prohibition on assistance to countries blocking or restricting humanitarian aid corridors.

CHAPTER 3—REPEALS

Sec. 731. Repeal of obsolete provisions.

TITLE VIII—EFFECTIVE DATE

Sec. 801. Effective date.

1 SEC. 3. CONGRESSIONAL FINDINGS; STATEMENT OF POL2 ICY.

3 (a) CONGRESSIONAL FINDINGS.—Congress finds the

4 following:

5 (1) The United States has been more generous

6 than any other country in providing assistance to

7 other countries, as evidenced by the following:

8 (A) Since 1945, American taxpayers have

9 provided more than $450,000,000,000 in for10 eign aid. Because these foreign aid expenditures

11 and the interest accrued thereon have been fi12 nanced by borrowing, the actual cost to United

13 States taxpayers has been nearly

14 $2,000,000,000,000.

15 (B) In fiscal year 1995, the United States

16 provided foreign aid to 148 countries.
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1 (C) For fiscal year 1996, the President has

2 recommended assistance to 145 countries.

3 (2) No country is entitled to United States for4 eign assistance. Many recipients of United States

5 foreign assistance have received this assistance for

6 40 years and must recognize that the United States

7 does not have the luxury of providing unlimited as8 sistance.

9 (3) Despite billions of dollars in assistance over

10 more than 40 years, many countries are economi11 cally worse off today than they were before United

12 States assistance began.

13 (4) Foreign aid must be reduced by at least the

14 same percentage as domestic discretionary spending

15 if the goal of balancing the Federal budget by the

16 year 2002 is to be achieved.

17 (b) STATEMENT OF POLICY.—To further the national

18 security and prosperity of the United States and to ensure

19 that American tax dollars are wisely spent, United States

20 assistance shall be provided only to achieve the following

21 goals:

22 (1) To enhance the security of the United

23 States.

24 (2) To promote United States trade and invest25 ment.
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1 (3) To combat transnational threats to United

2 States security, including terrorism, weapons pro3 liferation, narcotics trafficking, and organized crime.

4 (4) To assist the process of privatization and

5 economic development in countries which have com6 mitted themselves to democratic values and institu7 tions, which respect human rights, and which are

8 undertaking free market economic reforms.

9 (5) To provide urgent humanitarian assistance

10 to countries and people suffering from natural and

11 man-made disasters.

12 SEC. 4. DEFINITION.

13 (a) AMENDMENT OF THE FOREIGN ASSISTANCE

14 ACT.—Section 644 of the Foreign Assistance Act of 1961

15 (22 U.S.C. 2403) is amended by adding at the end the

16 following new subsection:

17 ‘‘(q) ‘Appropriate congressional committees’ means,

18 except as otherwise provided, the Committee on Foreign

19 Relations and the Committee on Appropriations of the

20 Senate and the Committee on International Relations and

21 the Committee on Appropriations of the House of Rep22 resentatives.’’.

23 (b) APPROPRIATE CONGRESSIONAL COMMITTEES.—

24 Except as otherwise provided, as used in this Act, the term

25 ‘‘appropriate congressional committees’’ has the same
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1 meaning given the term in section 644(q) of the Foreign

2 Assistance Act of 1961.

3 TITLE I—DEFENSE AND

4 SECURITY ASSISTANCE

5 CHAPTER 1—MILITARY AND RELATED

6 ASSISTANCE

7 Subchapter A—Foreign Military Financing

8 Program

9 SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

10 There are authorized to be appropriated for grant as11 sistance under section 23 of the Arms Export Control Act

12 (22 U.S.C. 2763) and for the subsidy cost, as defined in

13 section 502(5) of the Federal Credit Reform Act of 1990,

14 of direct loans under such section—

15 (1) $3,185,000,000 for fiscal year 1996; and

16 (2) $3,160,000,000 for fiscal year 1997.

17 SEC. 102. LOANS FOR GREECE AND TURKEY.

18 Of the amounts made available for fiscal years 1996

19 and 1997 under section 23 of the Arms Export Control

20 Act (22 U.S.C. 2763)—

21 (1) $26,620,000 shall be made available each

22 such fiscal year for the subsidy cost, as defined in

23 section 502(5) of the Federal Credit Reform Act of

24 1990, of direct loans for Greece; and
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1 (2) $37,800,000 shall be made available each

2 such fiscal year for the subsidy cost, as defined in

3 section 502(5) of the Federal Credit Reform Act of

4 1990, of direct loans for Turkey.

5 SEC. 103. LOANS FOR EUROPEAN COUNTRIES EMERGING

6 FROM COMMUNIST DOMINATION.

7 Of the amounts made available for fiscal years 1996

8 and 1997 under section 23 of the Arms Export Control

9 Act (22 U.S.C. 2763), not more than $25,000,000 for

10 each such fiscal year shall be made available for the sub11 sidy cost, as defined in section 502(5) of the Federal Cred12 it Reform Act of 1990, of direct loans for the Czech Re13 public, Hungary, Poland, Estonia, Latvia, Lithuania, and

14 Slovenia.

15 SEC. 104. TERMS OF LOANS.

16 Section 31(c) of the Arms Export Control Act (22

17 U.S.C. 2771(c)) is amended to read as follows:

18 ‘‘(c) Loans available under section 23 shall be pro19 vided at rates of interest that are not less than the current

20 average market yield on outstanding marketable obliga21 tions of the United States of comparable maturities.’’.

22 SEC. 105. NONREPAYMENT OF GRANT ASSISTANCE.

23 Section 23 of the Arms Export Control Act (22

24 U.S.C. 2763) is amended by adding at the end the follow25 ing new subsection:
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1 ‘‘(f) Notwithstanding any other provision of this sec2 tion, the President shall not require repayment of any as3 sistance provided on a grant basis under this section to

4 a foreign country or international organization.’’.

5 Subchapter B—Other Assistance

6 SEC. 111. DEFENSE DRAWDOWN SPECIAL AUTHORITIES.

7 (a) UNFORESEEN EMERGENCY DRAWDOWN.—Sec8 tion 506(a)(1) of the Foreign Assistance Act of 1961 (22

9 U.S.C. 2318(a)(1)) is amended by striking ‘‘$75,000,000’’

10 and inserting ‘‘$100,000,000’’.

11 (b) ADDITIONAL DRAWDOWN.—Section 506 of such

12 Act (22 U.S.C. 2318) is amended—

13 (1) in subsection (a)(2)(A), by striking ‘‘defense

14 articles from the stocks’’ and all that follows and in15 serting the following: ‘‘articles and services from the

16 inventory and resources of any agency of the United

17 States Government and military education and

18 training from the Department of Defense, the Presi19 dent may direct the drawdown of such articles, serv20 ices, and military education and training—

21 ‘‘(i) for the purposes and under the au22 thorities of—

23 ‘‘(I) chapter 8 of part I (relating to

24 international narcotics control assistance);
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1 ‘‘(II) chapter 9 of part I (relating to

2 international disaster assistance); or

3 ‘‘(III) the Migration and Refugee As4 sistance Act of 1962; or

5 ‘‘(ii) for the purpose of providing such arti6 cles, services, and military education and train7 ing to Vietnam, Cambodia, and Laos as the

8 President determines are necessary—

9 ‘‘(I) to support efforts to locate and

10 repatriate members of the United States

11 Armed Forces and civilians employed di12 rectly or indirectly by the United States

13 Government who remain unaccounted for

14 from the Vietnam War; and

15 ‘‘(II) to ensure the safety of United

16 States Government personnel engaged in

17 such cooperative efforts and to support De18 partment of Defense-sponsored humani19 tarian projects associated with such ef20 forts.’’;

21 (2) in subsection (a)(2)(B), by striking

22 ‘‘$75,000,000’’ and all that follows and inserting

23 ‘‘$150,000,000 in any fiscal year of such articles,

24 services, and military education and training may be
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1 provided pursuant to subparagraph (A) of this para2 graph—

3 ‘‘(i) not more than $75,000,000 of which

4 may be provided from the drawdown from the

5 inventory and resources of the Department of

6 Defense;

7 ‘‘(ii) not more than $75,000,000 of which

8 may be provided pursuant to clause (i)(I) of

9 such subparagraph; and

10 ‘‘(iii) not more than $15,000,000 of which

11 may be provided to Vietnam, Cambodia, and

12 Laos pursuant to clause (ii) of such subpara13 graph.’’; and

14 (3) in subsection (b)(1), by adding at the end

15 the following: ‘‘In the case of drawdowns authorized

16 by subclauses (I) and (III) of subsection

17 (a)(2)(A)(i), notifications shall be provided to those

18 committees at least 15 days in advance in accord19 ance with the procedures applicable to

20 reprogramming notifications under section 634A.’’.

21 (c) NOTICE TO CONGRESS OF EXERCISE OF SPECIAL

22 AUTHORITIES.—Section 652 of such Act (22 U.S.C.

23 2411) is amended by striking ‘‘prior to the date’’ and in24 serting ‘‘before’’.
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1 SEC. 112. STOCKPILES OF DEFENSE ARTICLES.

2 (a) LIMITATION ON VALUE OF ADDITIONS.—Section

3 514(b)(1) of the Foreign Assistance Act of 1961 (22

4 U.S.C. 2321h(b)(1)) is amended by inserting ‘‘or in the

5 implementation of agreements with Israel’’ after ‘‘North

6 Atlantic Treaty Organization’’.

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

8 Section 514(b)(2) of such Act (22 U.S.C. 2321h(b)(2))

9 is amended to read as follows:

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

11 defense articles in foreign countries shall not exceed

12 $50,000,000 for each of the fiscal years 1996 and 1997.

13 ‘‘(B) Of the amount specified in subparagraph (A)

14 for each of the fiscal years 1996 and 1997, not more than

15 $40,000,000 may be made available for stockpiles in the

16 Republic of Korea and not more than $10,000,000 may

17 be made available for stockpiles in Thailand.’’.

18 (c) LOCATION OF STOCKPILES OF DEFENSE ARTI19 CLES.—Section 514(c) of such Act (22 U.S.C. 2321h(c))

20 is amended to read as follows:

21 ‘‘(c) LOCATION OF STOCKPILES OF DEFENSE ARTI22 CLES.—

23 ‘‘(1) LIMITATION.—Except as provided in para24 graph (2), no stockpile of defense articles may be lo25 cated outside the boundaries of a United States mili-
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1 tary base or a military base used primarily by the

2 United States.

3 ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not

4 apply with respect to stockpiles of defense articles

5 located in the Republic of Korea, Thailand, any

6 country that is a member of the North Atlantic

7 Treaty Organization, any country that is a major

8 non-NATO ally, or any other country the President

9 may designate. At least 15 days before designating

10 a country pursuant to the last clause of the preced11 ing sentence, the President shall notify the congres12 sional committees specified in section 634A(a) in ac13 cordance with the procedures applicable to

14 reprogramming notifications under that section.’’.

15 SEC. 113. TRANSFER OF EXCESS DEFENSE ARTICLES.

16 (a) IN GENERAL.—Section 516 of the Foreign Assist17 ance Act of 1961 (22 U.S.C. 2321j) is amended to read

18 as follows:

19 ‘‘SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE AR20 TICLES.

21 ‘‘(a) AUTHORIZATION.—The President is authorized

22 to transfer excess defense articles under this section to

23 countries for which receipt of such articles was justified

24 pursuant to the annual congressional presentation docu25 ments for military assistance programs, or for programs
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1 under chapter 8 of part I of this Act, submitted under

2 section 634 of this Act, or for which receipt of such arti3 cles was separately justified to Congress, for the fiscal

4 year in which the transfer is authorized.

5 ‘‘(b) LIMITATIONS ON TRANSFERS.—The President

6 may transfer excess defense articles under this section

7 only if—

8 ‘‘(1) such articles are drawn from existing

9 stocks of the Department of Defense;

10 ‘‘(2) funds available to the Department of De11 fense for the procurement of defense equipment are

12 not expended in connection with the transfer;

13 ‘‘(3) the transfer of such articles will not have

14 an adverse impact on the military readiness of the

15 United States;

16 ‘‘(4) with respect to a proposed transfer of such

17 articles on a grant basis, such a transfer is pref18 erable to a transfer on a sales basis, after taking

19 into account the potential proceeds from, and likeli20 hood of, such sales, and the comparative foreign pol21 icy benefits that may accrue to the United States as

22 the result of a transfer on either a grant or sales

23 basis;

24 ‘‘(5) the President determines that the transfer

25 of such articles will not have an adverse impact on
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1 the national technology and industrial base and, par2 ticularly, will not reduce the opportunities of entities

3 in the national technology and industrial base to sell

4 new or used equipment to the countries to which

5 such articles are transferred; and

6 ‘‘(6) the transfer of such articles is consistent

7 with the policy framework for the Eastern Medi8 terranean established under section 620C of this

9 Act.

10 ‘‘(c) TERMS OF TRANSFERS.—

11 ‘‘(1) NO COST TO RECIPIENT COUNTRY.—Ex12 cess defense articles may be transferred under this

13 section without cost to the recipient country.

14 ‘‘(2) PRIORITY.—Notwithstanding any other

15 provision of law, the delivery of excess defense arti16 cles under this section to member countries of the

17 North Atlantic Treaty Organization (NATO) on the

18 southern and southeastern flank of NATO and to

19 major non-NATO allies on such southern and south20 eastern flank shall be given priority to the maximum

21 extent feasible over the delivery of such excess de22 fense articles to other countries.

23 ‘‘(d) WAIVER OF REQUIREMENT FOR REIMBURSE24 MENT OF DEPARTMENT OF DEFENSE EXPENSES.—Sec25 tion 632(d) shall not apply with respect to transfers of
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1 excess defense articles (including transportation and relat2 ed costs) under this section.

3 ‘‘(e) TRANSPORTATION AND RELATED COSTS.—

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), funds available to the Department of De6 fense may not be expended for crating, packing,

7 handling, and transportation of excess defense arti8 cles transferred under the authority of this section.

9 ‘‘(2) EXCEPTION.—The President may provide

10 for the transportation of excess defense articles with11 out charge to a country for the costs of such trans12 portation if—

13 ‘‘(A) it is determined that it is in the na14 tional interest of the United States to do so;

15 ‘‘(B) the recipient is a developing country

16 receiving less than $10,000,000 of assistance

17 under chapter 5 of part II of this Act (relating

18 to international military education and train19 ing) or section 23 of the Arms Export Control

20 Act (22 U.S.C. 2763; relating to the Foreign

21 Military Financing program) in the fiscal year

22 in which the transportation is provided;

23 ‘‘(C) the total weight of the transfer does

24 not exceed 25,000 pounds; and
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1 ‘‘(D) such transportation is accomplished

2 on a space available basis.

3 ‘‘(f) ADVANCE NOTIFICATION TO CONGRESS FOR

4 TRANSFER OF CERTAIN EXCESS DEFENSE ARTICLES.—

5 ‘‘(1) IN GENERAL.—The President may not

6 transfer excess defense articles that are significant

7 military equipment (as defined in section 47(9) of

8 the Arms Export Control Act) or excess defense arti9 cles valued (in terms of original acquisition cost) at

10 $7,000,000 or more, under this section or under the

11 Arms Export Control Act (22 U.S.C. 2751 et seq.)

12 until 15 days after the date on which the President

13 has provided notice of the proposed transfer to the

14 congressional committees specified in section

15 634A(a) in accordance with procedures applicable to

16 reprogramming notifications under that section.

17 ‘‘(2) CONTENTS.—Such notification shall in18 clude—

19 ‘‘(A) a statement outlining the purposes

20 for which the article is being provided to the

21 country, including whether such article has

22 been previously provided to such country;

23 ‘‘(B) an assessment of the impact of the

24 transfer on the military readiness of the United

25 States;
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1 ‘‘(C) an assessment of the impact of the

2 transfer on the national technology and indus3 trial base and, particularly, the impact on op4 portunities of entities in the national technology

5 and industrial base to sell new or used equip6 ment to the countries to which such articles are

7 to be transferred; and

8 ‘‘(D) a statement describing the current

9 value of such article and the value of such arti10 cle at acquisition.

11 ‘‘(g) AGGREGATE ANNUAL LIMITATION.—The aggre12 gate value of excess defense articles transferred to coun13 tries under this section in any fiscal year may not exceed

14 $350,000,000.

15 ‘‘(h) CONGRESSIONAL PRESENTATION DOCU16 MENTS.—Documents described in subsection (a) justifying

17 the transfer of excess defense articles shall include an ex18 planation of the general purposes of providing excess de19 fense articles as well as a table which provides an aggre20 gate annual total of transfers of excess defense articles

21 in the preceding year by country in terms of offers and

22 actual deliveries and in terms of acquisition cost and cur23 rent value. Such table shall indicate whether such excess

24 defense articles were provided on a grant or sale basis.
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1 ‘‘(i) EXCESS COAST GUARD PROPERTY.—For pur2 poses of this section, the term ‘excess defense articles’

3 shall be deemed to include excess property of the Coast

4 Guard, and the term ‘Department of Defense’ shall be

5 deemed, with respect to such excess property, to include

6 the Coast Guard.’’.

7 (b) CONFORMING AMENDMENTS.—

8 (1) ARMS EXPORT CONTROL ACT.—Section

9 21(k) of the Arms Export Control Act (22 U.S.C.

10 2761(k)) is amended by striking ‘‘the President

11 shall’’ and all that follows and inserting the follow12 ing: ‘‘the President shall determine that the sale of

13 such articles will not have an adverse impact on the

14 national technology and industrial base and, particu15 larly, will not reduce the opportunities of entities in

16 the national technology and industrial base to sell

17 new or used equipment to the countries to which

18 such articles are transferred.’’.

19 (2) REPEALS.—The following provisions of law

20 are hereby repealed:

21 (A) Section 502A of the Foreign Assist22 ance Act of 1961 (22 U.S.C. 2303).

23 (B) Sections 517 through 520 of the For24 eign Assistance Act of 1961 (22 U.S.C. 2321k

25 through 2321n).
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1 (C) Section 31(d) of the Arms Export Con2 trol Act (22 U.S.C. 2771(d)).

3 CHAPTER 2—INTERNATIONAL MILITARY

4 EDUCATION AND TRAINING

5 SEC. 121. AUTHORIZATION OF APPROPRIATIONS.

6 There are authorized to be appropriated $27,000,000

7 for each of the fiscal years 1996 and 1997 to carry out

8 chapter 5 of part II of the Foreign Assistance Act of 1961

9 (22 U.S.C. 2347 et seq.).

10 SEC. 122. ADDITIONAL REQUIREMENTS RELATING TO

11 INTERNATIONAL MILITARY EDUCATION AND

12 TRAINING.

13 (a) GENERAL AUTHORITY.—Section 541 of the For14 eign Assistance Act of 1961 (22 U.S.C. 2347) is amended

15 in the second sentence in the matter preceding clause (i)

16 by inserting ‘‘and individuals who are not members of the

17 government’’ after ‘‘legislators’’.

18 (b) TEST PILOT EXCHANGE TRAINING.—Section 544

19 of such Act (22 U.S.C. 2347c) is amended—

20 (1) by striking ‘‘In carrying out this chapter’’

21 and inserting ‘‘(a) In carrying out this chapter’’; and

22 (2) by adding at the end the following new sub23 section:

24 ‘‘(b) The President may provide for the attendance

25 of foreign military and civilian defense personnel at test
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1 pilot flight schools in the United States without charge,

2 and without charge to funds available to carry out this

3 chapter (notwithstanding section 632(d) of this Act), if

4 such attendance is pursuant to an agreement providing

5 for the exchange of students on a one-for-one basis each

6 fiscal year between those United States test pilot flight

7 schools and comparable flight test pilot schools of foreign

8 countries.’’.

9 CHAPTER 3—ANTITERRORISM

10 ASSISTANCE

11 SEC. 131. AUTHORIZATION OF APPROPRIATIONS.

12 (a) IN GENERAL.—There are authorized to be appro13 priated $15,000,000 for fiscal year 1996 and $15,000,000

14 for fiscal year 1997 to carry out chapter 8 of part II of

15 the Foreign Assistance Act of 1961 (22 U.S.C. 2349aa

16 et seq.).

17 (b) AVAILABILITY OF AMOUNTS.—Amounts author18 ized to be appropriated under subsection (a) are author19 ized to remain available until expended.

20 SEC. 132. ANTITERRORISM TRAINING ASSISTANCE.

21 (a) IN GENERAL.—Section 571 of the Foreign Assist22 ance Act of 1961 (22 U.S.C. 2349aa) is amended by strik23 ing ‘‘Subject to the provisions of this chapter’’ and insert24 ing ‘‘Notwithstanding any other provision of law that re-
23

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1 stricts assistance to foreign countries (other than sections

2 502B and 620A of this Act)’’.

3 (b) LIMITATIONS.—Section 573 of such Act (22

4 U.S.C. 2349aa–2) is amended—

5 (1) in the heading, by striking ‘‘SPECIFIC AU6 THORITIES AND’’;

7 (2) by striking subsection (a);

8 (3) by redesignating subsections (b) through (f)

9 as subsections (a) through (e), respectively; and

10 (4) in subsection (c) (as redesignated)—

11 (A) by striking paragraphs (1) and (2);

12 (B) by redesignating paragraphs (3)

13 through (5) as paragraphs (1) through (3), re14 spectively; and

15 (C) by amending paragraph (2) (as redes16 ignated) to read as follows:

17 ‘‘(2)(A) Except as provided in subparagraph (B),

18 funds made available to carry out this chapter shall not

19 be made available for the procurement of weapons and am20 munition.

21 ‘‘(B) Subparagraph (A) shall not apply to small arms

22 and ammunition in categories I and III of the United

23 States Munitions List that are integrally and directly re24 lated to antiterrorism training provided under this chapter

25 if, at least 15 days before obligating those funds, the
24

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1 President notifies the appropriate congressional commit2 tees in accordance with the procedures applicable to

3 reprogramming notifications under section 634A.

4 ‘‘(C) The value (in terms of original acquisition cost)

5 of all equipment and commodities provided under this

6 chapter in any fiscal year may not exceed 25 percent of

7 the funds made available to carry out this chapter for that

8 fiscal year.’’.

9 (c) ANNUAL REPORT.—Section 574 of such Act (22

10 U.S.C. 2349aa–3) is hereby repealed.

11 (d) TECHNICAL CORRECTIONS.—Section 575 (22

12 U.S.C. 2349aa–4) and section 576 (22 U.S.C. 2349aa 5)

13 of such Act are redesignated as sections 574 and 575, re14 spectively.

15 CHAPTER 4—NARCOTICS CONTROL

16 ASSISTANCE

17 SEC. 141. AUTHORIZATION OF APPROPRIATIONS.

18 (a) IN GENERAL.—There are authorized to be appro19 priated $105,000,000 for each of the fiscal years 1996

20 and 1997 to carry out chapter 8 of part I of the Foreign

21 Assistance Act of 1961 (22 U.S.C. 2291 et seq.).

22 (b) AVAILABILITY OF AMOUNTS.—Amounts author23 ized to be appropriated under subsection (a) are author24 ized to remain available until expended.
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1 CHAPTER 5—PEACEKEEPING

2 OPERATIONS

3 SEC. 151. PEACEKEEPING OPERATIONS.

4 Section 552(a) of the Foreign Assistance Act of 1961

5 (22 U.S.C. 2348a(a)) is amended to read as follows:

6 ‘‘(a) There are authorized to be appropriated to the

7 President to carry out the purposes of this chapter, in ad8 dition to amounts otherwise available for such purposes,

9 $40,000,000 for fiscal year 1996 and $35,000,000 for fis10 cal year 1997.’’.

11 CHAPTER 6—OTHER PROVISIONS

12 SEC. 161. STANDARDIZATION OF CONGRESSIONAL REVIEW

13 PROCEDURES FOR ARMS TRANSFERS.

14 (a) THIRD COUNTRY TRANSFERS UNDER FMS

15 SALES.—Section 3(d)(2) of the Arms Export Control Act

16 (22 U.S.C. 2753(d)(2)) is amended—

17 (1) in subparagraph (A), by striking ‘‘, as pro18 vided for in sections 36(b)(2) and 36(b)(3) of this

19 Act’’;

20 (2) in subparagraph (B), by striking ‘‘law’’ and

21 inserting ‘‘joint resolution’’; and

22 (3) by adding at the end the following:

23 ‘‘(C) If the President states in his certification under

24 subparagraph (A) or (B) that an emergency exists which

25 requires that consent to the proposed transfer become ef-
26

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1 fective immediately in the national security interests of the

2 United States, thus waiving the requirements of that sub3 paragraph, the President shall set forth in the certification

4 a detailed justification for his determination, including a

5 description of the emergency circumstances which neces6 sitate immediate consent to the transfer and a discussion

7 of the national security interests involved.

8 ‘‘(D)(i) Any joint resolution under this paragraph

9 shall be considered in the Senate in accordance with the

10 provisions of section 601(b) of the International Security

11 Assistance and Arms Export Control Act of 1976.

12 ‘‘(ii) For the purpose of expediting the consideration

13 and enactment of joint resolutions under this paragraph,

14 a motion to proceed to the consideration of any such joint

15 resolution after it has been reported by the appropriate

16 committee shall be treated as highly privileged in the

17 House of Representatives.’’.

18 (b) THIRD COUNTRY TRANSFERS UNDER COMMER19 CIAL SALES.—Section 3(d)(3) of such Act (22 U.S.C.

20 2753(d)(3)) is amended—

21 (1) by inserting ‘‘(A)’’ after ‘‘(3)’’;

22 (2) in the first sentence—

23 (A) by striking ‘‘at least 30 calendar

24 days’’; and
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1 (B) by striking ‘‘report’’ and inserting

2 ‘‘certification’’; and

3 (3) by striking the last sentence and inserting

4 the following: ‘‘Such certification shall be submit5 ted—

6 ‘‘(i) at least 15 calendar days before such con7 sent is given in the case of a transfer to a country

8 which is a member of the North Atlantic Treaty Or9 ganization or Australia, Japan, or New Zealand; and

10 ‘‘(ii) at least 30 calendar days before such con11 sent is given in the case of a transfer to any other

12 country,

13 unless the President states in his certification that an

14 emergency exists which requires that consent to the pro15 posed transfer become effective immediately in the na16 tional security interests of the United States. If the Presi17 dent states in his certification that such an emergency ex18 ists (thus waiving the requirements of clause (i) or (ii),

19 as the case may be, and of subparagraph (B)) the Presi20 dent shall set forth in the certification a detailed justifica21 tion for his determination, including a description of the

22 emergency circumstances which necessitate that consent

23 to the proposed transfer become effective immediately and

24 a discussion of the national security interests involved.
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1 ‘‘(B) Consent to a transfer subject to subparagraph

2 (A) shall become effective after the end of the 15-day or

3 30-day period specified in subparagraph (A) (i) or (ii), as

4 the case may be, only if the Congress does not enact, with5 in that period, a joint resolution prohibiting the proposed

6 transfer.

7 ‘‘(C)(i) Any joint resolution under this paragraph

8 shall be considered in the Senate in accordance with the

9 provisions of section 601(b) of the International Security

10 Assistance and Arms Export Control Act of 1976.

11 ‘‘(ii) For the purpose of expediting the consideration

12 and enactment of joint resolutions under this paragraph,

13 a motion to proceed to the consideration of any such joint

14 resolution after it has been reported by the appropriate

15 committee shall be treated as highly privileged in the

16 House of Representatives.’’.

17 (c) COMMERCIAL SALES.—Section 36(c)(2) of such

18 Act (22 U.S.C. 2776(c)(2)) is amended by amending sub19 paragraphs (A) and (B) to read as follows:

20 ‘‘(A) in the case of a license for an export to

21 the North Atlantic Treaty Organization, any mem22 ber country of that Organization or Australia,

23 Japan, or New Zealand, shall not be issued until at

24 least 15 calendar days after the Congress receives

25 such certification, and shall not be issued then if the
29

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1 Congress, within that 15-day period, enacts a joint

2 resolution prohibiting the proposed export; and

3 ‘‘(B) in the case of any other license, shall not

4 be issued until at least 30 calendar days after the

5 Congress receives such certification, and shall not be

6 issued then if the Congress, within that 30-day pe7 riod, enacts a joint resolution prohibiting the pro8 posed export.’’.

9 (d) COMMERCIAL MANUFACTURING AGREEMENTS.—

10 Section 36(d) of such Act (22 U.S.C. 2776(d)) is amend11 ed—

12 (1) by inserting ‘‘(1)’’ after ‘‘(d)’’;

13 (2) by striking ‘‘for or in a country not a mem14 ber of the North Atlantic Treaty Organization’’; and

15 (3) by adding at the end the following:

16 ‘‘(2) A certification under this subsection shall be

17 submitted—

18 ‘‘(A) at least 15 days before approval is given

19 in the case of an agreement for or in a country

20 which is a member of the North Atlantic Treaty Or21 ganization or Australia, Japan, or New Zealand; and

22 ‘‘(B) at least 30 days before approval is given

23 in the case of an agreement for or in any other

24 country;
30

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1 unless the President states in his certification that an

2 emergency exists which requires the immediate approval

3 of the agreement in the national security interests of the

4 United States.

5 ‘‘(3) If the President states in his certification that

6 an emergency exists which requires the immediate ap7 proval of the agreement in the national security interests

8 of the United States, thus waiving the requirements of

9 paragraph (4), he shall set forth in the certification a de10 tailed justification for his determination, including a de11 scription of the emergency circumstances which neces12 sitate the immediate approval of the agreement and a dis13 cussion of the national security interests involved.

14 ‘‘(4) Approval for an agreement subject to paragraph

15 (1) may not be given under section 38 if the Congress,

16 within the 15-day or 30-day period specified in paragraph

17 (2) (A) or (B), as the case may be, enacts a joint resolu18 tion prohibiting such approval.

19 ‘‘(5)(A) Any joint resolution under paragraph (4)

20 shall be considered in the Senate in accordance with the

21 provisions of section 601(b) of the International Security

22 Assistance and Arms Export Control Act of 1976.

23 ‘‘(B) For the purpose of expediting the consideration

24 and enactment of joint resolutions under paragraph (4),

25 a motion to proceed to the consideration of any such joint
31

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1 resolution after it has been reported by the appropriate

2 committee shall be treated as highly privileged in the

3 House of Representatives.’’.

4 (e) GOVERNMENT-TO-GOVERNMENT LEASES.—

5 (1) CONGRESSIONAL REVIEW PERIOD.—Section

6 62 of such Act (22 U.S.C. 2796a) is amended—

7 (A) in subsection (a), by striking ‘‘Not less

8 than 30 days before’’ and inserting ‘‘Before’’;

9 (B) in subsection (b)—

10 (i) by striking ‘‘determines, and im11 mediately reports to the Congress’’ and in12 serting ‘‘states in his certification’’; and

13 (ii) by adding at the end of the sub14 section the following: ‘‘If the President

15 states in his certification that such an

16 emergency exists, he shall set forth in the

17 certification a detailed justification for his

18 determination, including a description of

19 the emergency circumstances which neces20 sitate that the lease be entered into imme21 diately and a discussion of the national se22 curity interests involved.’’; and

23 (C) by adding at the end of the section the

24 following:
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1 ‘‘(c) The certification required by subsection (a) shall

2 be transmitted—

3 ‘‘(1) not less than 15 calendar days before the

4 agreement is entered into or renewed in the case of

5 an agreement with the North Atlantic Treaty Orga6 nization, any member country of that Organization

7 or Australia, Japan, or New Zealand; and

8 ‘‘(2) not less than 30 calendar days before the

9 agreement is entered into or renewed in the case of

10 an agreement with any other organization or coun11 try.’’.

12 (2) CONGRESSIONAL DISAPPROVAL.—Section

13 63(a) of such Act (22 U.S.C. 2796b(a)) is amend14 ed—

15 (A) by striking ‘‘(a)(1)’’ and inserting

16 ‘‘(a)’’;

17 (B) by striking out the ‘‘30 calendar days

18 after receiving the certification with respect to

19 that proposed agreement pursuant to section

20 62(a),’’ and inserting in lieu thereof ‘‘the 15-

21 day or 30-day period specified in section 62(c)

22 (1) or (2), as the case may be,’’; and

23 (C) by striking paragraph (2).

24 (f) EFFECTIVE DATE.—The amendments made by

25 this section apply with respect to certifications required
33

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1 to be submitted on or after the date of the enactment of

2 this Act.

3 SEC. 162. STANDARDIZATION OF THIRD COUNTRY TRANS4 FERS OF DEFENSE ARTICLES.

5 Section 3 of the Arms Export Control Act (22 U.S.C.

6 2753) is amended by inserting after subsection (a) the fol7 lowing new subsection:

8 ‘‘(b) The consent of the President under paragraph

9 (2) of subsection (a) or under paragraph (1) of section

10 505(a) of the Foreign Assistance Act of 1961 (as it relates

11 to subparagraph (B) of such paragraph) shall not be re12 quired for the transfer by a foreign country or inter13 national organization of defense articles sold by the United

14 States under this Act if—

15 ‘‘(1) such articles constitute components incor16 porated into foreign defense articles;

17 ‘‘(2) the recipient is the government of a mem18 ber country of the North Atlantic Treaty Organiza19 tion, the Government of Australia, the Government

20 of Japan, or the Government of New Zealand;

21 ‘‘(3) the recipient is not a country designated

22 under section 620A of the Foreign Assistance Act of

23 1961;

24 ‘‘(4) the United States-origin components are

25 not—
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1 ‘‘(A) significant military equipment (as de2 fined in section 47(9));

3 ‘‘(B) defense articles for which notification

4 to Congress is required under section 36(b); or

5 ‘‘(C) identified by regulation as Missile

6 Technology Control Regime items; and

7 ‘‘(5) the foreign country or international orga8 nization provides notification of the transfer of the

9 defense articles to the United States Government

10 not later than 30 days after the date of such trans11 fer.’’.

12 SEC. 163. INCREASED STANDARDIZATION, RATIONALIZA13 TION, AND INTEROPERABILITY OF ASSIST14 ANCE AND SALES PROGRAMS.

15 Paragraph (6) of section 515(a) of the Foreign As16 sistance Act of 1961 (22 U.S.C. 2321i(a)(6)) is amended

17 by striking ‘‘among members of the North Atlantic Treaty

18 Organization and with the Armed Forces of Japan, Aus19 tralia, and New Zealand’’.

20 SEC. 164. REPEAL OF PRICE AND AVAILABILITY REPORT21 ING REQUIREMENT RELATING TO PROPOSED

22 SALE OF DEFENSE ARTICLES AND SERVICES.

23 (a) IN GENERAL.—Section 28 of the Arms Export

24 Control Act (22 U.S.C. 2768) is hereby repealed.
35

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1 (b) CONFORMING AMENDMENT.—Section 36(b) of

2 such Act (22 U.S.C. 2776(b)) is amended by striking

3 paragraph (4) of such section.

4 SEC. 165. DEFINITION OF SIGNIFICANT MILITARY EQUIP5 MENT.

6 Section 47 of the Arms Export Control Act (22

7 U.S.C. 2794) is amended—

8 (1) in paragraph (7), by striking ‘‘and’’ at the

9 end;

10 (2) in paragraph (8), by striking the period at

11 the end and inserting ‘‘; and’’; and

12 (3) by adding at the end the following new

13 paragraph:

14 ‘‘(9) ‘significant military equipment’ means articles—

15 ‘‘(A) for which special export controls are war16 ranted because of the capacity of such articles for

17 substantial military utility or capability; and

18 ‘‘(B) identified on the United States Munitions

19 List.’’.

20 SEC. 166. DESIGNATION OF MAJOR NON-NATO ALLIES.

21 (a) DESIGNATION.—

22 (1) NOTICE TO CONGRESS.—Chapter 2 of part

23 II of the Foreign Assistance Act of 1961 (22 U.S.C.

24 2311 et seq.), as amended by this Act, is further
36

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1 amended by adding at the end the following new sec2 tion:

3 ‘‘SEC. 517. DESIGNATION OF MAJOR NON-NATO ALLIES.

4 ‘‘(a) NOTICE TO CONGRESS.—The President shall no5 tify the Congress in writing at least 30 days before—

6 ‘‘(1) designating a country as a major non7 NATO ally for purposes of this Act and the Arms

8 Export Control Act (22 U.S.C. 2751 et seq.); or

9 ‘‘(2) terminating such a designation.

10 ‘‘(b) INITIAL DESIGNATIONS.—Australia, Egypt, Is11 rael, Japan, the Republic of Korea, and New Zealand shall

12 be deemed to have been so designated by the President

13 as of the effective date of this section, and the President

14 is not required to notify the Congress of such designation

15 of those countries.’’.

16 (2) DEFINITION.—Section 644 of such Act (22

17 U.S.C. 2403), as amended by section 4 of this Act,

18 is further amended by adding at the end the follow19 ing:

20 ‘‘(r) ‘Major non-NATO ally’ means a country which

21 is designated in accordance with section 517 as a major

22 non-NATO ally for purposes of this Act and the Arms Ex23 port Control Act (22 U.S.C. 2751 et seq.).’’.

24 (3) EXISTING DEFINITIONS.—(A) The last sen25 tence of section 21(g) of the Arms Export Control
37

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1 Act (22 U.S.C. 2761(g)) is amended by striking ‘‘for

2 purposes of section 2350(a)(i)(3) of title 10, United

3 States Code’’ and inserting ‘‘in accordance with sec4 tion 517 of the Foreign Assistance Act of 1961’’.

5 (B) Section 65(d) of such Act (22 U.S.C.

6 2796d(d)) is amended—

7 (i) by striking ‘‘or major non-NATO’’; and

8 (ii) by striking out ‘‘or a’’ and all that fol9 lows through ‘‘Code’’.

10 (b) COOPERATIVE TRAINING AGREEMENTS.—Section

11 21(g) of the Arms Export Control Act (22 U.S.C.

12 2761(g)) is amended in the first sentence by striking

13 ‘‘similar agreements’’ and all that follows through ‘‘other

14 countries’’ and inserting ‘‘similar agreements with coun15 tries’’.

16 SEC. 167. COMPETITIVE PRICING FOR SALES OF DEFENSE

17 ARTICLES AND SERVICES.

18 (a) COSTING BASIS.—Section 22 of the Arms Export

19 Control Act (22 U.S.C. 2762) is amended by adding at

20 the end the following:

21 ‘‘(d) COMPETITIVE PRICING.—Procurement con22 tracts made in implementation of sales under this section

23 for defense articles and defense services wholly paid from

24 funds made available on a nonrepayable basis shall be

25 priced on the same costing basis with regard to profit,
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1 overhead, independent research and development, bid and

2 proposal, and other costing elements, as is applicable to

3 procurements of like items purchased by the Department

4 of Defense for its own use.’’.

5 (b) EFFECTIVE DATE AND IMPLEMENTING REGULA6 TIONS.—Section 22(d) of the Arms Export Control Act,

7 as added by subsection (a)—

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

9 the date of the enactment of this Act;

10 (2) shall be applicable only to contracts made in

11 implementation of sales made after such effective

12 date; and

13 (3) shall be implemented by revised procure14 ment regulations, which shall be issued prior to such

15 effective date.

16 SEC. 168. DEPLETED URANIUM AMMUNITION.

17 Chapter 1 of part III of the Foreign Assistance Act

18 of 1961 (22 U.S.C. 2370 et seq.) is amended by adding

19 at the end the following new section:

20 ‘‘SEC. 620G. DEPLETED URANIUM AMMUNITION.

21 ‘‘(a) PROHIBITION.—Except as provided in sub22 section (b), none of the funds made available to carry out

23 this Act or any other Act may be made available to facili24 tate in any way the sale of M–833 antitank shells or any
39

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1 comparable antitank shells containing a depleted uranium

2 penetrating component to any country other than—

3 ‘‘(1) a country that is a member of the North

4 Atlantic Treaty Organization;

5 ‘‘(2) a country that has been designated as a

6 major non-NATO ally (as defined in section 644(r));

7 or

8 ‘‘(3) Taiwan.

9 ‘‘(b) EXCEPTION.—The prohibition contained in sub10 section (a) shall not apply with respect to the use of funds

11 to facilitate the sale of antitank shells to a country if the

12 President determines that to do so is in the national secu13 rity interest of the United States.’’.

14 SEC. 169. POLICE TRAINING FOR CERTAIN FOREIGN COUN15 TRIES.

16 (a) IN GENERAL.—Part II of the Foreign Assistance

17 Act of 1961 is amended by adding at the end the following

18 new chapter:

19 ‘‘CHAPTER 9—POLICE TRAINING

20 ‘‘SEC. 581. POLICE TRAINING FOR CERTAIN FOR21 EIGN COUNTRIES.—The President is authorized to pro22 vide, on such terms and conditions as he may determine,

23 training, advice, financial support, and equipment for po24 lice, prisons, or other law enforcement forces of a foreign

25 government, unless the President determines that—
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1 ‘‘(1) such foreign government is not democrat2 ically elected; or

3 ‘‘(2) notwithstanding paragraph (1)—

4 ‘‘(A) such forces engage in a consistent

5 pattern of gross violations of internationally

6 recognized human rights; or

7 ‘‘(B) such forces do not maintain an effec8 tive policy against the trafficking or production

9 of illegal drugs by the members of the force or

10 the participants in the program.’’.

11 (b) REPEAL.—Section 660 of the Foreign Assistance

12 Act of 1961 (22 U.S.C. 2420) is repealed.

13 SEC. 170. UTILIZATION OF DEFENSE ARTICLES AND SERV14 ICES.

15 Section 502 of the Foreign Assistance Act of 1961

16 (22 U.S.C. 2302) is amended in the first sentence—

17 (1) by striking ‘‘solely’’ after furnished; and

18 (2) by inserting ‘‘(including for law enforcement

19 purposes)’’ after ‘‘internal security’’.

20 SEC. 171. REPORTS ON ARMS SALES.

21 Section 36 of the Arms Export Control Act (22

22 U.S.C. 2776) is amended—

23 (1) in subsection (a) (in the text following para24 graph (11))—
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1 (A) by striking out ‘‘and (iv)’’ and insert2 ing in lieu thereof ‘‘(iv)’’; and

3 (B) by striking out the period at the end

4 and inserting in lieu thereof ‘‘; (v) the com5 parable kinds and amounts of similar major de6 fense equipment or defense articles or services

7 that are available from other countries; and (vi)

8 the other countries, if any, to which the United

9 States has already offered the major defense

10 equipment or defense articles or services.’’;

11 (2) in subsection (b)(1)—

12 (A) by striking out ‘‘information specified

13 in clauses (i) through (iv)’’ and inserting ‘‘in14 formation specified in clauses (i) through (vi)’’;

15 (B) by striking out subparagraph (K); and

16 (C) by redesignating subparagraphs (L),

17 (M), (N), (O), and (P) as subparagraphs (K),

18 (L), (M), (N), and (O), respectively; and

19 (3) in subsection (c)(1)—

20 (A) by striking out ‘‘and (C)’’ and insert21 ing ‘‘(C)’’; and

22 (B) by inserting before the period at the

23 end of the first sentence the following: ‘‘, (D)

24 a statement on the extent to which comparable

25 kinds and amounts of similar major defense
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1 equipment or defense articles or services are

2 available from other countries, and (E) the

3 other countries, if any, to which the United

4 States has already offered the major defense

5 equipment or defense articles or services’’.

6 SEC. 172. ELIMINATION OF THE REQUIREMENT FOR

7 RECOUPMENT OF NONRECURRING COST

8 CHARGES.

9 (a) AMENDMENT OF THE ARMS EXPORT CONTROL

10 ACT.—Section 21(e) of the Arms Export Control Act (22

11 U.S.C. 2761(e)) is amended—

12 (1) by striking paragraph (1)(B);

13 (2) by adding ‘‘and’’ at the end of paragraph

14 (1)(A);

15 (3) by redesignating paragraph (1)(C) as para16 graph (1)(B);

17 (4) by striking paragraph (2); and

18 (5) by redesignating paragraph (3) as para19 graph (2).

20 (b) EFFECTIVE DATE.—The amendments made by

21 subsection (a) shall apply to letters of offer issued on or

22 after the date of enactment of this Act.
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1 SEC. 173. REDUCTION IN VALUATION OF DEFENSE ARTI2 CLES NOT INTENDED FOR REPLACEMENT.

3 (a) AUTHORITY.—Section 21(a) of the Arms Export

4 Control Act (22 U.S.C. 2761(a)) is amended by adding

5 at the end the following new paragraph:

6 ‘‘(3) The President may reduce the price required to

7 be paid under paragraph (1)(A) for the sale of a defense

8 article if such sale would—

9 ‘‘(A) facilitate the sale of a similar or related

10 new defense article;

11 ‘‘(B) support the national defense industrial

12 base; and

13 ‘‘(C) serve the national security interests of the

14 United States.’’.

15 (b) CONFORMING AMENDMENT.—Section

16 21(a)(1)(A) of such Act (22 U.S.C. 2761(a)(1)(A)) is

17 amended by inserting ‘‘, except as provided in paragraph

18 (3)’’ after ‘‘actual value thereof’’.

19 (c) AVAILABILITY OF APPROPRIATIONS.—The Presi20 dent may only exercise the authority contained in the

21 amendment made by subsection (a) subject to the avail22 ability of appropriations.

23 SEC. 174. ELIMINATION OF SPECIAL DEFENSE ACQUISITION

24 FUND ANNUAL REPORT.

25 (a) IN GENERAL.—Section 53 of the Arms Export

26 Control Act (22 U.S.C. 2795b) is hereby repealed.
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1 (b) CONFORMING AMENDMENT.—Section 51(a)(4) of

2 such Act (22 U.S.C. 2795(a)(4)) is amended—

3 (1) by striking ‘‘(A)’’ immediately after ‘‘(4)’’;

4 and

5 (2) by striking subparagraph (B) of such sec6 tion.

7 TITLE II—TRADE AND EXPORT

8 DEVELOPMENT

9 SEC. 201. TRADE AND DEVELOPMENT AGENCY.

10 (a) AUTHORITY TO PROVIDE ASSISTANCE.—Section

11 661(b) of the Foreign Assistance Act of 1961 (22 U.S.C.

12 2421(b)) is amended—

13 (1) in paragraph (2)—

14 (A) by striking ‘‘for’’ after ‘‘feasibility

15 studies’’ and inserting ‘‘and other activities re16 lated to’’; and

17 (B) by striking the second sentence; and

18 (2) in paragraph (3)—

19 (A) by striking ‘‘(A)’’; and

20 (B) by striking subparagraph (B).

21 (b) ANNUAL REPORT.—Section 661(d) of such Act

22 (22 U.S.C. 2421(d)) is amended by striking ‘‘President’’

23 and inserting ‘‘Director of the Trade and Development

24 Agency’’.
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1 (c) AUTHORIZATION OF APPROPRIATIONS.—Section

2 661(f)(1) of the Foreign Assistance Act of 1961 (22

3 U.S.C. 2421(f)(1)) is amended to read as follows: ‘‘There

4 are authorized to be appropriated to the President for pur5 poses of this section, in addition to funds otherwise avail6 able for such purposes, $67,000,000 for fiscal year 1996

7 and $75,000,000 for fiscal year 1997.’’.

8 (d) AVAILABILITY OF APPROPRIATIONS.—Section

9 661(f) of such Act (22 U.S.C. 2421(f)) is amended by

10 striking paragraph (2) and inserting the following:

11 ‘‘(2) AVAILABILITY OF APPROPRIATIONS.—

12 Amounts appropriated pursuant to paragraph (1)

13 are authorized to remain available until expended.’’.

14 SEC. 202. COUNTRIES IN TRANSITION TO A FREE MARKET

15 ECONOMY.

16 (a) FINDINGS.—The Congress finds that—

17 (1) many of the nations of Central and Eastern

18 Europe in transition from centrally planned econo19 mies to free market economies have made important

20 progress in reforming their economic systems in a

21 short time period;

22 (2) as these countries continue to transition,

23 long-term economic growth for the region rests upon

24 the successful integration of these emerging free
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1 markets into western markets and other world trad2 ing structures;

3 (3) trade has been the key to rapid integration

4 of the markets of countries in transition to democ5 racy; and

6 (4) the success of United States efforts to ex7 pand the ability of these nations in transition to

8 trade with the West has not rested solely upon tradi9 tional foreign assistance programs, but has been

10 greatly enhanced by the extension of the generalized

11 system of preferences for these countries.

12 (b) SENSE OF CONGRESS.—It is the sense of the

13 Congress that—

14 (1) the efforts of the United States to assist

15 countries of Central and Eastern Europe in transi16 tion from centrally planned economies to free market

17 economies should focus first on efforts to effectively

18 integrate them into the world trading system;

19 (2) the extension by the United States of trade

20 benefits under the generalized system of preferences

21 has been of crucial importance to the rapid economic

22 transformation of countries of Central and Eastern

23 Europe in transition from centrally planned econo24 mies to free market economies; and
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1 (3) the United States should continue to accord

2 treatment under the generalized system of pref3 erences (GSP) for all countries of Central and East4 ern Europe in transition to a free market economy,

5 including but not limited to Poland, Hungary, the

6 Czech Republic, Slovakia, the Baltic countries, Ro7 mania, and Bulgaria, if these countries are comply8 ing with all applicable statutory requirements.

9 TITLE III—PRIVATE SECTOR,

10 ECONOMIC, AND DEVELOP11 MENT ASSISTANCE

12 CHAPTER 1—PRIVATE SECTOR

13 ENTERPRISE FUNDS

14 SEC. 301. SUPPORT FOR PRIVATE SECTOR ENTERPRISE

15 FUNDS.

16 Chapter 1 of part III of the Foreign Assistance Act

17 of 1961 is amended by inserting after section 601 (22

18 U.S.C. 2351) the following new section:

19 ‘‘SEC. 601A. PRIVATE SECTOR ENTERPRISE FUNDS.

20 ‘‘(a) AUTHORITY.—(1) The President may provide

21 funds and support to Enterprise Funds designated in ac22 cordance with subsection (b) that are or have been estab23 lished for the purposes of promoting—

24 ‘‘(A) development of the private sectors of eligi25 ble countries, including small businesses, the agricul-
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1 tural sector, and joint ventures with United States

2 and host country participants; and

3 ‘‘(B) policies and practices conducive to private

4 sector development in eligible countries;

5 on the same basis as funds and support may be provided

6 with respect to Enterprise Funds for Poland and Hungary

7 under the Support for East European Democracy (SEED)

8 Act of 1989.

9 ‘‘(2) Funds may be made available under this section

10 notwithstanding any other provision of law.

11 ‘‘(b) COUNTRIES ELIGIBLE FOR ENTERPRISE

12 FUNDS.—(1) Except as provided in paragraph (2), the

13 President is authorized to designate a private, nonprofit

14 organization as eligible to receive funds and support pur15 suant to this section with respect to any country eligible

16 to receive assistance under part I of this Act in the same

17 manner and with the same limitations as set forth in sec18 tion 201(d) of the Support for East European Democracy

19 (SEED) Act of 1989.

20 ‘‘(2)(A) Except as provided in subparagraph (B), the

21 authority of paragraph (1) shall not apply to any country

22 with respect to which the President is authorized to des23 ignate an enterprise fund under section 498B(c) of this

24 Act or section 201 of the Support for East European De25 mocracy (SEED) Act of 1989.
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1 ‘‘(B) The prohibition of subparagraph (A) shall not

2 apply to the Trans-Caucasus Enterprise Fund established

3 under subsection (c).

4 ‘‘(c) TRANS-CAUCASUS ENTERPRISE FUND.—The

5 President shall designate a private, nonprofit organization

6 under subsection (b) to carry out this section with respect

7 to the Trans-Caucasus region of the former Soviet Union.

8 Such organization shall be known as the ‘Trans-Caucasus

9 Enterprise Fund’.

10 ‘‘(d) TREATMENT EQUIVALENT TO ENTERPRISE

11 FUNDS FOR POLAND AND HUNGARY.—Except as other12 wise specifically provided in this section, the provisions

13 contained in section 201 of the Support for East Euro14 pean Democracy (SEED) Act of 1989 (excluding the au15 thorizations of appropriations provided in subsection (b)

16 of that section) shall apply to any Enterprise Fund that

17 receives funds and support under this section. The offi18 cers, members, or employees of an Enterprise Fund that

19 receive funds and support under this section shall enjoy

20 the same status under law that is applicable to officers,

21 members, or employees of the Enterprise Funds for Po22 land and Hungary under the Support for East European

23 Democracy (SEED) Act of 1989.

24 ‘‘(e) REPORTING REQUIREMENT.—Notwithstanding

25 any other provision of this section, the requirement of sec-
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1 tion 201(p) of the Support for East European Democracy

2 (SEED) Act of 1989, that an Enterprise Fund shall be

3 required to publish an annual report not later than Janu4 ary 31 each year shall not apply with respect to an Enter5 prise Fund that receives funds and support under this sec6 tion for the first twelve months after it is designated as

7 eligible to receive such funds and support.

8 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—(1)

9 There are authorized to be appropriated to the President

10 for purposes of this section, in addition to funds otherwise

11 available for such purposes—

12 ‘‘(A) $12,000,000 for fiscal year 1996 to fund

13 the Trans-Caucasus Enterprise Fund established

14 under subsection (d); and

15 ‘‘(B) $52,000,000 for fiscal year 1996 to fund

16 any enterprise fund authorized to receive funds

17 under this section other than the Trans-Caucasus

18 Enterprise Fund.

19 ‘‘(2) Funds appropriated under this subsection are

20 authorized to remain available until expended.’’.

21 SEC. 302. MICRO- AND SMALL-ENTERPRISE DEVELOPMENT

22 CREDIT PROGRAM.

23 Section 108 of the Foreign Assistance Act of 1961

24 (22 U.S.C. 2151f) is amended to read as follows:
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1 ‘‘SEC. 108. MICRO- AND SMALL-ENTERPRISE DEVELOPMENT

2 CREDIT PROGRAM.

3 ‘‘(a) FINDINGS AND POLICY.—The Congress finds

4 and declares that—

5 ‘‘(1) the development of micro- and small enter6 prise, including cooperatives, is a vital factor in the

7 private sector growth of developing countries and in

8 the development and stability of a free, open, and

9 equitable international economic system;

10 ‘‘(2) it is, therefore, in the best interests of the

11 United States to assist the development of the pri12 vate sector in developing countries and to engage the

13 United States private sector in that process; and

14 ‘‘(3) the support of private enterprise can be

15 served by programs providing credit, training, and

16 technical assistance for the benefit of micro- and

17 small enterprises.

18 ‘‘(b) PROGRAM.—To carry out the policy set forth in

19 subsection (a), the President is authorized to provide as20 sistance to increase the availability of credit to micro- and

21 small enterprises lacking full access to credit, including

22 through—

23 ‘‘(1) loans and guarantees to credit institutions

24 for the purpose of expanding the availability of cred25 it to micro- and small enterprises;
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1 ‘‘(2) training programs for lenders in order to

2 enable them to better meet the credit needs of

3 micro- and small entrepreneurs; and

4 ‘‘(3) training programs for micro- and small en5 trepreneurs in order to enable them to make better

6 use of credit and to better manage their enter7 prises.’’.

8 CHAPTER 2—DEVELOPMENT ASSISTANCE

9 FUND AND OTHER AUTHORITIES

10 SEC. 311. DEVELOPMENT ASSISTANCE FUND.

11 (a) SINGLE AUTHORIZATION OF APPROPRIATIONS.—

12 There are authorized to be appropriated to the President

13 the total amount of $2,475,000,000 for fiscal year 1996

14 and the total amount of $2,324,000,000 for fiscal year

15 1997 to carry out the following authorities in law:

16 (1) Sections 103, 104, 105, 106, and 108 of the

17 Foreign Assistance Act of 1961 (relating to develop18 ment assistance).

19 (2) Chapter 10 of part I of the Foreign Assist20 ance Act of 1961 (22 U.S.C. 2294; relating to the

21 Development Fund for Africa).

22 (3) Chapter 11 of part I of the Foreign Assist23 ance Act of 1961 (22 U.S.C. 2295 et seq.).

24 (4) The Support for East European Democracy

25 (SEED) Act of 1989 (Public Law 101–179).
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1 (5) Title III of chapter 2 of part I of the For2 eign Assistance Act of 1961 (22 U.S.C. 2181 et

3 seq.; relating to housing and other credit guaranty

4 programs).

5 (6) Section 214 of the Foreign Assistance Act

6 of 1961 (22 U.S.C. 2174; relating to American

7 Schools and Hospitals Abroad).

8 (b) POPULAR NAME.—Appropriations made pursuant

9 to subsection (a) may be referred to as the ‘‘Development

10 Assistance Fund’’.

11 (c) PRIVATE AND VOLUNTARY ORGANIZATIONS AND

12 COOPERATIVES.—The President shall seek to ensure that,

13 in each fiscal year, the percentage of funds made available

14 under this section for the activities of private and vol15 untary organizations and cooperatives is at least equal to

16 the percentage of funds made available pursuant to cor17 responding authorities in law for the activities of private

18 and voluntary organizations and cooperatives in fiscal year

19 1995.

20 (d) PROPORTIONAL ASSISTANCE TO AFRICA.—Of the

21 funds authorized to be appropriated by subsection (a), not

22 less than 25 percent each fiscal year shall be used to carry

23 out chapter 10 of part I of the Foreign Assistance Act

24 of 1961 (22 U.S.C. 2294 et seq.; relating to the Develop25 ment Fund for Africa).
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1 SEC. 312. ECONOMIC SUPPORT FUND.

2 Subsection (a) of section 532 of the Foreign Assist3 ance Act of 1961 (22 U.S.C. 2346a) is amended to read

4 as follows:

5 ‘‘(a)(1) There are authorized to be appropriated to

6 the President to carry out the purposes of this chapter

7 $2,375,000,000 for the fiscal year 1996 and

8 $2,340,000,000 for the fiscal year 1997.

9 ‘‘(2) Of the amount authorized to be appropriated by

10 paragraph (1) for each of the fiscal years 1996 and 1997,

11 $15,000,000 shall be available only for Cyprus.

12 ‘‘(3) Of the amount authorized to be appropriated by

13 paragraph (1) for fiscal year 1996, $15,000,000 shall be

14 available only for the International Fund for Ireland.

15 ‘‘(4) Of the amount authorized to be appropriated by

16 paragraph (1) for fiscal year 1996, $10,000,000 shall be

17 available only for the rapid development of a prototype in18 dustrial park in the Gaza Strip.’’.

19 SEC. 313. NONINTERVENTION CONCERNING ABORTION.

20 Section 104(f) of the Foreign Assistance Act of 1961

21 (22 U.S.C. 215b(f)) is amended by adding at the end the

22 following new paragraph:

23 ‘‘(4)(A) None of the funds made available to carry

24 out this part may be used for any program, project, or

25 activity that violates the laws of a foreign country concern26 ing the circumstances under which abortion is permitted,
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1 regulated, or prohibited, or which seeks to alter the laws

2 or policies in effect in any foreign country concerning the

3 circumstances under which abortion is permitted, regu4 lated, or prohibited.

5 ‘‘(B) Subparagraph (A) shall not apply to activities

6 in opposition to coercive abortion or involuntary steriliza7 tion.’’.

8 SEC. 314. HOST COUNTRY COST-SHARING.

9 Section 110 of the Foreign Assistance Act of 1961

10 (22 U.S.C. 2151h) is amended by striking ‘‘25 per cen11 tum’’ and inserting ‘‘30 per centum’’.

12 SEC. 315. PRIVATE FUNDING OF PRIVATE AND VOLUNTARY

13 ORGANIZATIONS.

14 Chapter 1 of part I of the Foreign Assistance Act

15 of 1961 (relating to development assistance) is amended

16 by adding at the end the following new section:

17 ‘‘SEC. 129. PRIVATE FUNDING OF PRIVATE AND

18 VOLUNTRARY ORGANIZATIONS.

19 ‘‘(a) RESTRICTION.—None of the funds made avail20 able to carry out this chapter may be made available to

21 any United States private and voluntary organization, ex22 cept any cooperative development organization, which ob23 tains less than 25 per centum of its total annual funding

24 for international activities from sources other than the

25 United States Government.
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1 ‘‘(b) WAIVER.—The President may, on a case-by-case

2 basis, waive the restriction established by subsection (a),

3 after taking into account the effectiveness of the overseas

4 development activities of the organization, its level of vol5 unteer support, its financial viability and stability, and the

6 degree of its dependence for its financial support on the

7 United States Government.’’.

8 SEC. 316. DOCUMENTATION REQUESTED OF PRIVATE AND

9 VOLUNTARY ORGANIZATIONS.

10 Section 620 of the Foreign Assistance Act of 1961

11 (22 U.S.C. 2370) is amended by inserting after subsection

12 (u) the following new subsection:

13 ‘‘(v) None of the funds made available to carry out

14 this Act shall be available to any private and voluntary

15 organization which—

16 ‘‘(1) fails to provide upon timely request any

17 document, file, or record necessary to the auditing

18 requirements of the agency primarily responsible for

19 administering part I of this Act, or

20 ‘‘(2) is not registered with the agency primarily

21 responsible for administering part I of this Act.’’.
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1 SEC. 317. PROHIBITION ON USE OF FOREIGN ASSISTANCE

2 BY PRIVATE AND VOLUNTARY ORGANIZA3 TIONS FOR OFFICE EQUIPMENT IN THE UNIT4 ED STATES.

5 Section 620 of the Foreign Assistance Act of 1961

6 (22 U.S.C. 2370) is amended by inserting after subsection

7 (v), as added by section 316, the following new subsection:

8 ‘‘(w) No assistance made available under chapter 1

9 (relating to development assistance), chapter 10 (relating

10 to the Development Fund for Africa), or chapter 11 (relat11 ing to support for the independent states of the former

12 Soviet Union) of part I of this Act or chapter 4 of part

13 II of this Act (relating to the Economic Support Fund),

14 Support for East European Democracy (SEED) Act of

15 1989 may be used by any private and voluntary organiza16 tion to pay for the purchase or lease of office equipment

17 for use in the United States.’’.

18 SEC. 318. PROHIBITION ON CIRCUMVENTION OF AID RE19 STRICTIONS.

20 Chapter 1 of part III of the Foreign Assistance Act

21 of 1961 (22 U.S.C. 2351 et seq.), as amended by this Act,

22 is further amended by adding at the end the following new

23 section:
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1 ‘‘SEC. 620H. PROHIBITION ON CIRCUMVENTION OF AID RE2 STRICTIONS.

3 ‘‘(a) PROHIBITION.—No officer or employee of the

4 United States may engage in any activity, or assist any

5 person to engage in any activity, which is intended to cir6 cumvent a statutory prohibition or restriction in the provi7 sion of United States assistance.

8 ‘‘(b) RULE OF STATUTORY CONSTRUCTION.—Noth9 ing in this section may be construed to limit—

10 ‘‘(1) the ability of the President, the Vice Presi11 dent, or any officer or employee of the United States

12 to make statements or otherwise express their views

13 to any party on any subject;

14 ‘‘(2) the ability of an officer or employee of the

15 United States to express the policies of the Presi16 dent; or

17 ‘‘(3) the ability of an officer or employee of the

18 United States to communicate with any foreign

19 country government, group, or individual, either di20 rectly or through a third party, with respect to the

21 prohibitions or restriction under this Act, including

22 the reasons for any such prohibitions or restriction,

23 and the actions, terms, or conditions which might

24 lead to the removal of the prohibition or restriction.

25 ‘‘(c) DEFINITION.—For purposes of this section, the

26 term ‘United States assistance’ includes—
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1 ‘‘(1) assistance provided under this Act; and

2 ‘‘(2) grants and loan subsidies under the Arms

3 Export Control Act.

4 ‘‘(d) CRIMINAL PENALTY.—An officer or employee of

5 the United States who knowingly and willfully violates

6 subsection (a) shall be fined in accordance with title 18,

7 imprisoned for not more than 2 years, or both.’’.

8 SEC. 319. FOREIGN GOVERNMENT PARKING FINES.

9 (a) AMENDMENT OF THE FOREIGN ASSISTANCE

10 ACT.—Chapter 1 of part III of the Foreign Assistance Act

11 of 1961 (22 U.S.C. 2351 et seq.), as amended by this Act,

12 is further amended by adding at the end the following new

13 section:

14 ‘‘SEC. 620I. FOREIGN GOVERNMENT PARKING FINES.

15 ‘‘(a) WITHHOLDING OF FUNDS.—An amount equiva16 lent to 110 percent of the total unpaid fully adjudicated

17 parking fines and penalties owed to the District of Colum18 bia, Virginia, and Maryland, by the government of a for19 eign country as of the end of a fiscal year, as certified

20 to the President by the chief executive officer of each State

21 or District, shall be withheld from obligation for such

22 country out of funds available in the next fiscal year to

23 carry out part I of this Act, until the requirement of sub24 section (b) is satisfied.
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1 ‘‘(b) CERTIFICATION REQUIREMENT.—The require2 ment of this subsection is satisfied when the Secretary of

3 State determines and certifies to the appropriate congres4 sional committees that such fines and penalties are fully

5 paid to the governments of the District of Columbia, Vir6 ginia, and Maryland.’’.

7 (b) EFFECTIVE DATE.—The amendment made by

8 subsection (a) shall apply with respect to fines certified

9 as of the end of fiscal year 1995 or any fiscal year there10 after.

11 SEC. 320. LIMITATION ON WAIVER OF SANCTIONS AGAINST

12 MAJOR DRUG PRODUCING AND DRUG-TRAN13 SIT COUNTRIES.

14 Section 490A(b) of the Foreign Assistance Act of

15 1961 (22 U.S.C. 2291k(b)) is amended—

16 (1) in paragraph (1), by inserting ‘‘and para17 graph (6) of this subsection’’ after ‘‘subsection (d)’’;

18 and

19 (2) by adding at the end the following new

20 paragraph:

21 ‘‘(6) LIMITATION.—Beginning with the annual

22 certification required on March 1, 1996, the Presi23 dent may not make a certification under this para24 graph with respect to a country in any year which

25 immediately follows a period of two consecutive
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1 years in which such certifications have been made

2 with respect to that country.’’.

3 SEC. 321. ENGAGING THE UNITED STATES PRIVATE SECTOR

4 IN DEVELOPMENT.

5 (a) ALLOCATION OF RESOURCES.—(1) Of the funds

6 authorized to be appropriated by section 311 of this Act,

7 significant resources shall be made available to engage the

8 United States private sector, including small- and me9 dium-size businesses, farm groups, entrepreneurs, and

10 others, with indigenous private enterprises in developing

11 nations.

12 (2) To the extent practicable, these funds shall be

13 made available through intermediary development organi14 zations committed to private enterprise.

15 (3) The ratio of private sector investment to United

16 States Government assistance in these projects shall be

17 no less than a ratio of 2.5:1.

18 (b) REPORTING REQUIREMENT.—Beginning January

19 1, 1996, and annually thereafter, the Secretary of State

20 shall report in writing to Congress regarding efforts by

21 the Department of State and the Agency for International

22 Development to meet the requirements of this section.
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1 CHAPTER 3—PEACE CORPS

2 SEC. 331. PEACE CORPS.

3 Section 3(b) of the Peace Corps Act (22 U.S.C.

4 2502(b)) is amended to read as follows:

5 ‘‘(b) There are authorized to be appropriated to carry

6 out the purposes of this Act $234,000,000 for each of the

7 fiscal years 1996 and 1997.’’.

8 SEC. 332. DEADLINES FOR EVALUATION OF AND REPORT

9 ON HEALTH CARE SERVICES PROVIDED TO

10 PEACE CORPS VOLUNTEERS.

11 (a) EVALUATION DEADLINE.—Section 3(a) of the

12 Act of October 28, 1992 (Public Law 102–565) is amend13 ed by striking ‘‘1997’’ and inserting ‘‘1998’’.

14 (b) REPORT DEADLINE.—Section 3(c) of such Act is

15 amended by striking ‘‘1996’’ and inserting ‘‘1997’’.

16 CHAPTER 4—INTERNATIONAL DISASTER

17 ASSISTANCE PROGRAMS

18 SEC. 341. INTERNATIONAL DISASTER ASSISTANCE.

19 Section 492(a) of the Foreign Assistance Act of 1961

20 (22 U.S.C. 2292a) is amended to read as follows:

21 ‘‘(a) There are authorized to be appropriated to the

22 President to carry out section 491, in addition to funds

23 otherwise available for such purposes, $200,000,000 for

24 fiscal year 1996 and $200,000,000 for fiscal year 1997.’’.
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1 TITLE IV—PEACE AND SECURITY

2 IN THE MIDDLE EAST

3 SEC. 401. ECONOMIC SUPPORT FUND ASSISTANCE FOR IS4 RAEL.

5 (a) MINIMUM ALLOCATION.—Of the amounts made

6 available to carry out chapter 4 of part II of the Foreign

7 Assistance Act of 1961 (relating to the Economic Support

8 Fund) for fiscal years 1996 and 1997, not less than

9 $1,200,000,000 for each such fiscal year shall be available

10 only for Israel.

11 (b) TERMS OF ASSISTANCE.—The total amount of

12 funds allocated for Israel each fiscal year under subsection

13 (a) shall be made available as a cash transfer on a grant

14 basis. Such transfer shall be made on an expedited basis

15 within 30 days after the beginning of the fiscal year or

16 the date of enactment of the Act appropriating such funds,

17 whichever is later. In exercising the authority of this sub18 section, the President shall ensure that the level of cash

19 transfer made to Israel does not cause an adverse impact

20 on the total level of nonmilitary exports from the United

21 States to Israel.

22 SEC. 402. FOREIGN MILITARY FINANCING FOR ISRAEL.

23 (a) MINIMUM ALLOCATION.—Of the amounts made

24 available for fiscal years 1996 and 1997 for assistance

25 under the ‘‘Foreign Military Financing Program’’ account
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1 under section 23 of the Arms Export Control Act (22

2 U.S.C. 2763), not less than $1,800,000,000 for each such

3 fiscal year shall be available only for Israel.

4 (b) TERMS OF ASSISTANCE.—

5 (1) GRANT BASIS.—The assistance provided for

6 Israel for each fiscal year under subsection (a) shall

7 be provided on a grant basis.

8 (2) EXPEDITED DISBURSEMENT.—Such assist9 ance shall be disbursed—

10 (A) with respect to fiscal year 1996, not

11 later than 30 days after the date of the enact12 ment of the Foreign Operations, Export Fi13 nancing, and Related Programs Appropriations

14 Act, 1996, or by October 31, 1995, whichever

15 is later; and

16 (B) with respect to fiscal year 1997, not

17 later than 30 days after the date of the enact18 ment of the Foreign Operations, Export Fi19 nancing, and Related Programs Appropriations

20 Act, 1997, or by October 31, 1996, whichever

21 is later.

22 (3) ADVANCED WEAPONS SYSTEMS.—To the ex23 tent that the Government of Israel requests that

24 funds be used for such purposes, funds described in

25 subsection (a) shall, as agreed by the Government of
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1 Israel and the Government of the United States, be

2 available for advanced weapons systems, of which

3 not less than $475,000,000 for each fiscal year shall

4 be available only for procurement in Israel of de5 fense articles and defense services, including re6 search and development.

7 (c) FOREIGN MILITARY SALES.—Section 21(h) of the

8 Arms Export Control Act (22 U.S.C. 2761(h)) is amend9 ed—

10 (1) in paragraph (1)(A), by inserting ‘‘or the

11 Government of Israel’’ after ‘‘North Atlantic Treaty

12 Organization’’; and

13 (2) in paragraph (2), by striking ‘‘or to any

14 member government of that Organization if that Or15 ganization or member government’’ and inserting ‘‘,

16 any member government of that Organization, or the

17 Government of Israel, if the Organization, member

18 government, or Government of Israel, as the case

19 may be,’’.

20 SEC. 403. ECONOMIC SUPPORT FUND ASSISTANCE FOR

21 EGYPT.

22 Of the amounts made available to carry out chapter

23 4 of part II of the Foreign Assistance Act of 1961 (relat24 ing to the Economic Support Fund) for fiscal years 1996
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1 and 1997, not less than $815,000,000 for each such fiscal

2 year shall be available only for Egypt.

3 SEC. 404. FOREIGN MILITARY FINANCING FOR EGYPT.

4 (a) MINIMUM ALLOCATION.—Of the amounts made

5 available for fiscal years 1996 and 1997 for assistance

6 under the ‘‘Foreign Military Financing Program’’ account

7 under section 23 of the Arms Export Control Act (22

8 U.S.C. 2763), not less than $1,300,000,000 for each such

9 fiscal year shall be available only for Egypt.

10 (b) TERMS OF ASSISTANCE.—The assistance pro11 vided for Egypt for each fiscal year under subsection (a)

12 shall be provided on a grant basis.

13 SEC. 405. ESTABLISHMENT OF A FREE TRADE AREA FOR

14 TABA, ELAT, AND AQABA.

15 (a) FINDINGS.—The Congress finds that—

16 (1) the development of trading relationships

17 that permit the free flow of goods and services be18 tween Israel and countries with which Israel is now

19 at peace is essential to a lasting peace in the Middle

20 East;

21 (2) the President’s recent decision to establish

22 a free trade area that includes the Egyptian city of

23 Taba, the Israeli city of Elat and the Jordanian city

24 of Aqaba will provide an important beginning for re-
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1 gional cooperation and the integration of regional

2 commerce; and

3 (3) the development of successful trading rela4 tionships between the countries who have agreed to

5 a warm peace with Israel and the United States is

6 a top priority of the United States.

7 (b) SENSE OF CONGRESS.—It is the sense of the

8 Congress that the President should extend duty free treat9 ment to products of Taba, Egypt, and Aqaba, Jordan if—

10 (1) such extension will significantly benefit the

11 development of regional economic development and

12 integration in the Middle East;

13 (2) such extension will include only goods which

14 have experienced significant manufacturing change

15 in Taba or Aqaba;

16 (3) effective procedures exist to ensure that

17 Taba and Aqaba are not merely transshipment

18 points for goods manufactured outside of these two

19 cities; and

20 (4) Egypt, Israel, and Jordan are developing

21 laws and procedures to encourage the free flow of

22 goods and people between the cities of Taba, Elat,

23 and Aqaba.
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1 SEC. 406. CONTINUATION OF FREE TRADE TREATMENT FOR

2 GAZA AND JERICHO.

3 (a) FINDINGS.—The Congress finds that—

4 (1) the Congress approved a free trade agree5 ment with Israel on April 29, 1985;

6 (2) when approved in 1985, eligibility under the

7 free trade agreement extended to the occupied terri8 tories of the West Bank and Gaza;

9 (3) the Declaration of Principles, signed by Is10 rael and the Palestinian Authority in 1993, is a sig11 nificant step forward in bringing peace to the region;

12 (4) sending an unambiguous signal of United

13 States support for peace in the Middle East is a top

14 United States priority;

15 (5) removing free trade treatment for goods

16 manufactured in Gaza and Jericho after the signing

17 of the Declaration of Principles economically penal18 izes the Palestinian Authority for entering into a

19 peace agreement with Israel; and

20 (6) goods manufactured in Gaza and Jericho

21 after the signing of the Declaration of Principles

22 should not be subjected to less favorable treatment

23 than those manufactured in Gaza and Jericho before

24 the signing.

25 (b) SENSE OF CONGRESS.—It is the sense of the

26 Congress that the United States should grant duty free
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1 access to the United States market for products of the

2 West Bank and Gaza.

3 SEC. 407. AUTHORIZATION FOR AN INDUSTRIAL PARK ON

4 THE BORDER BETWEEN THE TERRITORIES

5 AND ISRAEL.

6 (a) FINDINGS.—The Congress finds that—

7 (1) extremists in Hamas and Islamic Jihad who

8 reject the gains made since the signing of the Dec9 laration of Principles have used terrorist tactics to

10 force the closing of the territories;

11 (2) these terrorist acts have exacerbated exist12 ing problems and Gaza is now experiencing stagger13 ing unemployment nearing 50 percent, increasing

14 chaos and a downward spiral of dashed hopes and

15 deepening poverty;

16 (3) Israel’s legitimate security concerns neces17 sitate creative new methods of ensuring continued

18 economic opportunity for the Palestinians; and

19 (4) the development of industrial parks along

20 the border between Gaza, the West Bank and Israel

21 sponsored by individual nations provides an impor22 tant means of providing both development for Pal23 estinians while maintaining border security.

24 (b) SENSE OF CONGRESS.—It is the sense of Con25 gress that—
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1 (1) the United States should take prompt, visi2 ble action before the coming elections in Gaza and

3 Jericho that promises hope and jobs to Palestinians;

4 (2) the rapid development of an industrial park,

5 closely coordinated with private sector investors, will

6 provide a clear sign of opportunity resulting from

7 peace with Israel;

8 (3) the decision to site the industrial park

9 should give special consideration to the extremely

10 difficult economic conditions in Gaza;

11 (4) the President should appoint a Special Co12 ordinator to coordinate the rapid development of an

13 industrial park in Gaza and to begin the recruitment

14 of United States investors; and

15 (5) the Secretary of State should direct a short16 term review and implementation of United States as17 sistance plans to assist in speeding the flow of goods

18 and services between Israel and Gaza while increas19 ing security between the two areas.
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1 TITLE V—OTHER REGIONAL

2 ISSUES

3 SEC. 501. LENDING TO THE INDEPENDENT STATES OF THE

4 FORMER SOVIET UNION REQUIRED TO BE SE5 CURED BY CERTAIN EXPORT EARNINGS.

6 (a) RESTRICTION ON LENDING.—For fiscal years

7 1996 and 1997, in the case of an independent state of

8 the former Soviet Union that does not satisfy the require9 ments of subsection (b)—

10 (1) no loan or credit may be extended by the

11 United States under any provision of law to the gov12 ernment of such state, including loans or credits ex13 tended under—

14 (A) the Foreign Assistance Act of 1961;

15 (B) the Arms Export Control Act;

16 (C) the Agricultural Trade Development

17 and Assistance Act of 1954 (Public Law 83–

18 480);

19 (D) the Agricultural Trade Act of 1978;

20 (E) section 416(b) of the Agricultural Act

21 of 1949;

22 (F) the Commodity Credit Corporation

23 Charter Act; and

24 (G) the Export-Import Bank Act of 1945;

25 and
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1 (2) the Secretary of the Treasury shall in2 struct—

3 (A) the United States executive directors

4 to the International Bank for Reconstruction

5 and Development, the European Bank for Re6 construction and Development, and the Asian

7 Development Bank to vote against the exten8 sion of any credit, or the issuance of any guar9 antee with respect to any credit, by the Banks

10 for the purpose of assisting such state, and

11 (B) the United States executive director of

12 the International Monetary Fund to vote

13 against any use of the resources of the Fund,

14 including any use of United States currency

15 under the Fund’s General Arrangements to

16 Borrow (GAB) as part of any currency sta17 bilization fund or otherwise, for the purpose of

18 assisting such state.

19 (b) REQUIREMENTS.—The requirements of this sec20 tion are that—

21 (1) the President has certified that the inde22 pendent state of the former Soviet Union is adhering

23 to the debt repayment schedules of the multilateral

24 lending institutions and the debt repayment sched-
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1 ules of private lenders pursuant to agreements with

2 the multilateral development banks; or

3 (2) the repayment by such state of the loan,

4 credit, or other financial resources of multilateral

5 lending institutions, as the case may be, is secured

6 by the royalties or other revenues, if any, earned by

7 the state from the export of petroleum products,

8 minerals, or other commodities.

9 (c) MULTILATERAL ACTIONS.—The Secretary of the

10 Treasury shall instruct the United States executive direc11 tors of the International Bank for Reconstruction and De12 velopment, the European Bank for Reconstruction and

13 Development, the Asian Development Bank, and the

14 International Monetary Fund to propose that such institu15 tions establish policies in opposition to the making of any

16 loan, the extension of any credit, or the use of other finan17 cial resources of their respective institutions for the inde18 pendent states of the former Soviet Union unless the re19 payment of such loans, credits, or other resources is se20 cured in accordance with subsection (b)(2).

21 (d) DEFINITIONS.—As used in this section:

22 (1) INDEPENDENT STATES OF THE FORMER SO23 VIET UNION.—The term ‘‘independent states of the

24 former Soviet Union’’ has the same meaning given
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1 to that term by section 3 of the FREEDOM Sup2 port Act (22 U.S.C. 5801).

3 (2) PETROLEUM PRODUCT.—The term ‘‘petro4 leum product’’ means crude oil, residual fuel oil, or

5 any refined petroleum product (including any natu6 ral liquid and any natural gas liquid product).

7 SEC. 502. RESTRICTIONS ON ASSISTANCE FOR NICARAGUA.

8 (a) RESTRICTIONS.—Amounts made available for fis9 cal years 1996 and 1997 for assistance under chapter 1

10 of part I of the Foreign Assistance Act of 1961 (22 U.S.C.

11 2151 et seq. relating to development assistance) or chap12 ter 4 of part II of such Act (22 U.S.C. 2346 et seq. relat13 ing to economic support fund), including any unobligated

14 balances of prior appropriations, may only be made avail15 able to the Government of Nicaragua if the Secretary of

16 State, in consultation with the Secretary of Defense and

17 the Director of Central Intelligence, determines and cer18 tifies to the appropriate congressional committees that the

19 Government of Nicaragua—

20 (1) has completed a full and independent inves21 tigation of the May 23, 1993, Santa Rosa arms

22 cache explosion, including an investigation of pass23 ports, identity papers, and other documents found at

24 weapons sites indicating the existence of a terrorist

25 or kidnapping ring and whether the terrorist net-
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1 work was involved in the February 1993 World

2 Trade Center bombing;

3 (2) has made substantial and tangible progress

4 in meeting the requirements of section 527 of the

5 Foreign Relations Authorization Act for Fiscal

6 Years 1994 and 1995 (relating to expropriation of

7 United States property);

8 (3) has removed from the military and security

9 forces of Nicaragua all individuals implicated in the

10 murders of Jean Paul Genie, Arges Sequeira, and

11 Enrique Bermudez, and judicial proceedings against

12 those charged with these murders have been initi13 ated; and

14 (4) is making significant and tangible progress

15 in—

16 (A) prosecuting all individuals, including

17 government officials and members of the armed

18 forces or security forces of Nicaragua identified

19 by the Secretary of State or the Attorney Gen20 eral as being part of a terrorist or kidnapping

21 ring;

22 (B) implementing all recommendations

23 made by the Tripartite Commission with re24 spect to individuals responsible for assassina25 tions, including the immediate suspension of all
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1 individuals from the Nicaraguan military and

2 security forces who are named in such rec3 ommendations and the expeditious prosecution

4 of such individuals;

5 (C) implementing specific changes which

6 result in verifiable civilian control over the Nic7 araguan military, security forces, and police;

8 and

9 (D) making genuine, effective, and con10 crete reforms in the Nicaraguan judicial sys11 tem.

12 (b) DENIAL OF WAIVER AUTHORITY.—The waiver

13 authority provided for in section 527(g) of the Foreign

14 Relations Authorization Act for Fiscal Years 1994 and

15 1995 (Public Law 103–236) shall not apply to Nicaragua

16 for fiscal years 1996 and 1997.

17 (c) CONTENTS OF CERTIFICATION.—(1) A certifi18 cation made pursuant to subsection (a) shall include a de19 tailed accounting of all evidence in support of the deter20 minations listed in paragraphs (1) through (4) of sub21 section (a).

22 (2) A certification made pursuant to subsection (a)

23 shall be submitted in unclassified form and, to the extent

24 necessary to fulfill subsection (b)(1), classified form.
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1 (d) EXCEPTIONS.—Notwithstanding any other provi2 sion of this section, the President may support and provide

3 assistance to the Government of Nicaragua for—

4 (1) programs facilitating the resolution of

5 United States citizen property claims;

6 (2) the International Commission for Support

7 and Verification of the Organization of American

8 States for human rights monitoring, related assist9 ance programs or election observation;

10 (3) programs to facilitate free and fair elections

11 in 1996;

12 (4) programs in support of child survival,

13 health, and education;

14 (5) democracy building programs administered

15 through the National Endowment for Democracy or

16 related nongovernmental groups; or

17 (6) environmental programs.

18 SEC. 503. RESTRICTIONS ON ASSISTANCE TO NORTH

19 KOREA AND THE KOREAN PENINSULA EN20 ERGY DEVELOPMENT ORGANIZATION.

21 (a) IN GENERAL.—Chapter 1 of part III of the For22 eign Assistance Act of 1961 (22 U.S.C. 2370 et seq.), as

23 amended by this Act, is further amended by adding at the

24 end the following new section:
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1 ‘‘SEC. 620J. RESTRICTIONS ON ASSISTANCE TO NORTH

2 KOREA AND THE KOREAN PENINSULA EN3 ERGY DEVELOPMENT ORGANIZATION.

4 ‘‘(a) RESTRICTIONS.—No assistance may be provided

5 under this Act or any other provision of law to the Demo6 cratic People’s Republic of Korea unless—

7 ‘‘(1) such assistance is provided in accordance

8 with all requirements, limitations, and procedures

9 otherwise applicable to the provision of such assist10 ance for such purposes; and

11 ‘‘(2) the President—

12 ‘‘(A) notifies the congressional committees

13 specified in section 634(a) of this Act prior to

14 obligation of such assistance in accordance with

15 the procedures applicable to reprogramming no16 tifications under that section, irrespective of the

17 amount of the proposed obligation of such as18 sistance; and

19 ‘‘(B) determines and reports to such com20 mittees that the provision of such assistance is

21 vital to the national interests of the United

22 States.

23 ‘‘(b) CONGRESSIONAL REPORT.—Whenever the

24 President notifies the congressional committees under the

25 provisions of subsection (a)(2), he shall submit a report

26 on—
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1 ‘‘(1) the exact dollar amounts pledged by every

2 country contributing to the Korean Peninsula En3 ergy Development Organization, itemized by fiscal

4 year, including those amounts requested in budget

5 documents for future fiscal years;

6 ‘‘(2) the exact dollar amount transferred to the

7 Korean Peninsula Energy Development Organization

8 as of the date of submission of the report, itemized

9 by country and the purpose for which the funds were

10 donated; and

11 ‘‘(3) the extent to which North Korea has com12 plied with all aspects of the Agreed Framework up

13 to the time the report is submitted, including, but

14 not limited to, the manner in which deliveries of

15 heavy fuel oil have been used and the extent to

16 which dialogue between the Republic of Korea and

17 the Democratic People’s Republic of Korea has

18 taken place.

19 ‘‘(c) ASSISTANCE TO THE KOREAN PENINSULA EN20 ERGY DEVELOPMENT ORGANIZATION.—For purposes of

21 providing assistance under this Act or under any provision

22 of law, the obligation of assistance to the Korean Penin23 sula Energy Development Organization shall be consid24 ered to be obligated under the same terms, conditions, and
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1 limitations as are applicable to United States assistance

2 to the Democratic People’s Republic of Korea.’’.

3 (b) EFFECTIVE DATE.—Section 620J of the Foreign

4 Assistance Act of 1961, as added by subsection (a), ap5 plies with respect to assistance provided to the Democratic

6 People’s Republic of Korea on or after the date of enact7 ment of this Act.

8 SEC. 504. FUTURE OF THE UNITED STATES MILITARY PRES9 ENCE IN PANAMA.

10 (a) CONGRESSIONAL FINDINGS.—The Congress

11 makes the following findings:

12 (1) The Panama Canal is a vital strategic asset

13 to the United States, its allies, and the world.

14 (2) The Treaty on the Permanent Neutrality

15 and Operation of the Panama Canal signed on Sep16 tember 7, 1977, provides that Panama and the

17 United States have the responsibility to assure that

18 the Panama Canal will remain open and secure.

19 (3) Such Treaty also provides that each of the

20 two countries shall, in accordance with their respec21 tive constitutional processes, defend the Canal

22 against any threat to the regime of neutrality, and

23 consequently shall have the right to act against any

24 aggression or threat directed against the Canal or
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1 against the peaceful transit of vessels through the

2 Canal.

3 (4) The United States instrument of ratifica4 tion of such Treaty includes specific language that

5 the two countries should consider negotiating future

6 arrangements or agreements to maintain military

7 forces necessary to fulfill the responsibility of the

8 two countries of maintaining the neutrality of the

9 Canal after 1999.

10 (5) The Government of Panama, in the bilateral

11 Protocol of Exchange of instruments of ratification,

12 expressly ‘‘agreed upon’’ such arrangements or

13 agreements.

14 (6) The Navy depends upon the Panama Canal

15 for rapid transit in times of emergency, as dem16 onstrated during World War II, the Korean War,

17 the Vietnam conflict, the Cuban Missile Crisis, and

18 the Persian Gulf conflict.

19 (7) Drug trafficking and money laundering has

20 proliferated in the Western Hemisphere since the

21 Treaty on the Permanent Neutrality and Operation

22 of the Panama Canal was signed on September 7,

23 1977, and such trafficking and laundering poses a

24 grave threat to peace and security in the region.
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1 (8) Certain facilities now utilized by the United

2 States Armed Forces in Panama are critical to com3 bat the trade in illegal drugs.

4 (9) The United States and Panama share com5 mon policy goals such as strengthening democracy,

6 expanding economic trade, and combating illegal

7 narcotics throughout Latin America.

8 (10) The Government of Panama has dissolved

9 its military forces and has maintained only a civilian

10 police organization to defend the Panama Canal

11 against aggression.

12 (11) Certain public opinion polls in Panama

13 suggest that many Panamanians desire a continued

14 United States military presence in Panama.

15 (b) SENSE OF THE CONGRESS.—It is the sense of

16 the Congress that—

17 (1) the President should negotiate a new base

18 rights agreement with the Government of Panama—

19 (A) to allow the stationing of United

20 States Armed Forces in Panama beyond De21 cember 31, 1999, and

22 (B) to ensure that the United States will

23 be able to act appropriately, consistent with the

24 Panama Canal Treaty, the Treaty Concerning

25 the Permanent Neutrality and Operation of the
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1 Panama Canal, and the resolutions of ratifica2 tion thereto, for the purpose of assuring that

3 the Panama Canal shall remain open, neutral,

4 secure, and accessible; and

5 (2) the President should consult with the Con6 gress throughout the negotiations described in para7 graph (1).

8 SEC. 505. ELIGIBILITY OF PANAMA UNDER THE ARMS EX9 PORT CONTROL ACT.

10 The Republic of Panama shall be eligible to purchase

11 defense articles and defense services under the Arms Ex12 port Control Act (22 U.S.C. 2751 et seq.), except as other13 wise specifically provided by law.

14 SEC. 506. CERTIFICATION REQUIREMENTS FOR COLOMBIA

15 WITH RESPECT TO ILLEGAL DRUG PRODUC16 TION AND DRUG TRAFFICKING ACTIVITY FOR

17 FISCAL YEARS 1996 AND 1997.

18 Section 490A of the Foreign Assistance Act of 1961

19 (22 U.S.C. 2291k) is amended as follows:

20 (1) In subsection (a), by striking ‘‘subsection

21 (b)’’ each place it appears and inserting ‘‘subsections

22 (b) and (h)’’.

23 (2) In subsection (b)(1), as amended by section

24 320, by inserting ‘‘and except as provided for in sub25 section (h),’’ after ‘‘this subsection,’’.
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1 (3) In subsection (d), by inserting ‘‘or sub2 section (h)’’ after ‘‘subsection (b)’’.

3 (4) In subsection (e)—

4 (A) by inserting ‘‘(1)’’ after ‘‘DECERTI5 FIED.—’’,

6 (B) by striking ‘‘(1) funds’’ and inserting

7 ‘‘(A) funds’’,

8 (C) by striking ‘‘(2) the’’ and inserting

9 ‘‘(B) the’’, and

10 (D) by adding at the end the following new

11 paragraph:

12 ‘‘(2) If the President does not make a certification

13 under subsection (h) with respect to Colombia or the Con14 gress enacts a joint resolution disapproving such certifi15 cation, then until such time as the conditions specified in

16 subsection (f)(1)(B) are satisfied, subparagraphs (A) and

17 (B) of paragraph (1) shall apply.’’.

18 (5) In subsection (f)(1)—

19 (A) by striking ‘‘(A) the President’’ and

20 inserting ‘‘(A)(i) the President’’,

21 (B) by striking ‘‘(B) the President’’ and

22 inserting ‘‘(ii) the President’’,

23 (C) by striking the period at the end of

24 subparagraph (B) and inserting ‘‘; or’’, and
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1 (D) by adding at the end the following new

2 subparagraph:

3 ‘‘(B) the President makes a certification

4 under subsection (h) with respect to Colombia,

5 and the Congress does not enact a joint resolu6 tion under subsection (d) disapproving the de7 termination of the President contained in that

8 certification.’’.

9 (6) At the end of the section, by adding the fol10 lowing new subsections:

11 ‘‘(h) SPECIAL DETERMINATION AND CERTIFICATION

12 PROCEDURES FOR COLOMBIA.—For fiscal years 1996 and

13 1997, the following certification procedures shall apply for

14 Colombia in lieu of the procedures provided for in sub15 section (b)(1):

16 ‘‘(1) WHAT MUST BE CERTIFIED.—Subject to

17 subsection (d), the assistance withheld from Colom18 bia pursuant to subsection (a)(1) may be obligated

19 and expended, and the requirement of subsection

20 (a)(2) to vote against multilateral development bank

21 assistance to or for a country shall not apply with

22 respect to Colombia—

23 ‘‘(A)(i) for fiscal year 1996 if the Presi24 dent determines and certifies to the Congress
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1 by March 1, 1996, the matters set forth in

2 paragraph (2), and

3 ‘‘(ii) for fiscal year 1997 if the President

4 determines and certifies to the Congress by

5 March 1, 1997, the matters set forth in para6 graph (3); or

7 ‘‘(B) for either fiscal year 1996 or fiscal

8 year 1997, if the President determines and cer9 tifies to the Congress by March 1 of the rel10 evant fiscal year that the vital national interests

11 of the United States require that the assistance

12 withheld pursuant to subsection (a)(1) be pro13 vided and that the United States not vote

14 against multilateral development bank assist15 ance for that country pursuant to subsection

16 (a)(2).

17 ‘‘(2) MATTERS REQUIRED TO BE CERTIFIED

18 FOR FISCAL YEAR 1996.—The matters referred to in

19 paragraph (1)(A) are:

20 ‘‘(A) That the Government of Colombia

21 has made substantial progress in the following

22 matters specifically committed to by the Presi23 dent of Colombia:
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1 ‘‘(i) Investigating contributions by

2 drug traffickers to political parties in Co3 lombia.

4 ‘‘(ii) Providing funding for a sustain5 able alternative development program to

6 encourage Colombian farmers to grow legal

7 crops.

8 ‘‘(iii) Utilizing the law enforcement

9 resources of Colombia to investigate, cap10 ture, convict, and imprison major drug

11 lords in Colombia and their accomplices.

12 ‘‘(iv) Implementing and funding a

13 proposed plan for the improvement of the

14 administration of the Ministry of Justice of

15 Colombia.

16 ‘‘(v) Acting effectively to confiscate

17 profits from activities related to illegal

18 drugs and drug trafficking.

19 ‘‘(vi) Enacting legislation to imple20 ment the United Nations Convention

21 Against Illicit Traffic in Narcotic Drugs

22 and Psychotropic Substances.

23 ‘‘(vii) Dismantling the infrastructure

24 in Colombia that is used for processing il25 legal drugs, interdicting the chemicals used
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1 for such processing, and seizing or dis2 abling vehicles (including airplanes and

3 ships) used to transport processed illegal

4 drugs.

5 ‘‘(viii) Investing in technology to im6 prove surveillance of airports, waterways,

7 and seaports in Colombia.

8 ‘‘(ix) Tightening the law enforcement

9 capabilities and commencing construction

10 of an installation for the Colombia Coast

11 Guard on San Andres Island, Colombia, in

12 order to provide effective surveillance of

13 airplane and ship traffic that departs from

14 the island.

15 ‘‘(x) Improving the aircraft detection

16 and interception systems of Colombia, in17 cluding the purchase of aircraft detectors.

18 ‘‘(xi) Encouraging the adoption of an

19 Inter-American convention to ban the es20 tablishment of a financial safe haven in

21 any country in the Western Hemisphere.

22 ‘‘(B) That the Government of Colombia

23 has accomplished the following matters specifi24 cally committed to by the President of Colom25 bia:
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1 ‘‘(i) The implementation of necessary

2 reforms to increase the sentences served by

3 drug traffickers so that the penalties be

4 commensurate with the serious nature of

5 their crimes and to remove loopholes for

6 such traffickers to enter into lenient plea

7 bargaining arrangements.

8 ‘‘(ii) The creation of an effective in9 vestigation unit to detect and bring to

10 prosecution individuals in Colombia who

11 engage in corrupt activities related to

12 drugs and drug trafficking.

13 ‘‘(iii) The implementation of legisla14 tion to prohibit money laundering.

15 ‘‘(iv) Implementation of Plan

16 Resplandor, which calls for the destruction

17 of at least 37,000 hectares of coca and

18 poppy plants in Colombia by January 1,

19 1996.

20 ‘‘(3) MATTERS REQUIRED TO BE CERTIFIED

21 FOR FISCAL YEAR 1997.—The matters referred to in

22 paragraph (1)(B) are:

23 ‘‘(A) That the Government of Colombia

24 continues to make substantial progress with re-
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1 spect to the following matters specifically com2 mitted to by the President of Colombia:

3 ‘‘(i) Investigating contributions by

4 drug traffickers to political parties in Co5 lombia and prosecuting those found re6 sponsible for such contributions or the ac7 ceptance of the same.

8 ‘‘(ii) Providing funding for a sustain9 able alternative development program to

10 encourage Colombian farmers to grow legal

11 crops.

12 ‘‘(iii) Utilizing the law enforcement

13 resources of Colombia to investigate, cap14 ture, convict, and imprison major drug

15 lords in Colombia and their accomplices.

16 ‘‘(iv) Implementing and funding fully

17 a proposed plan for the improvement of

18 the administration of the Ministry of Jus19 tice of Colombia.

20 ‘‘(v) Acting effectively to confiscate

21 profits from activities related to illegal

22 drugs and drug trafficking.

23 ‘‘(vi) Enforcing effectively a statute

24 prohibiting money laundering.
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1 ‘‘(vii) Implementing necessary reforms

2 to make drug traffickers’ sentences com3 mensurate with the nature of their crimes

4 and to eliminate loopholes by which such

5 traffickers enter into lenient plea bargain6 ing arrangements.

7 ‘‘(viii) Deploying an effective inves8 tigation unit to detect and bring to pros9 ecution individuals in Colombia who en10 gage in corrupt activities related to illegal

11 drugs and drug trafficking.

12 ‘‘(ix) Dismantling the infrastructure

13 in Colombia that is used for processing il14 legal drugs, interdicting the chemicals used

15 for such processing, and seizing or dis16 abling vehicles (including airplanes and

17 ships) used to transport processed illegal

18 drugs.

19 ‘‘(x) Investing in technology to im20 prove surveillance of airports, waterways,

21 and seaports in Colombia.

22 ‘‘(xi) Improving the aircraft detection

23 and interception systems of Colombia and

24 utilizing such systems.
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1 ‘‘(xii) Encouraging the adoption of an

2 Inter-American convention to ban the es3 tablishment of a financial safe haven in

4 any country in the Western Hemisphere.

5 ‘‘(B) That the Government of Colombia

6 has accomplished the following matters specifi7 cally committed to by the President of Colom8 bia:

9 ‘‘(i) The enactment of legislation to

10 implement the United Nations Convention

11 Against Illicit Traffic in Narcotic Drugs

12 and Psychotropic Substances.

13 ‘‘(ii) The destruction of all illicit

14 crops, estimated at 70,000 hectares.

15 ‘‘(iii) The construction of an installa16 tion for the Colombia Coast Guard on San

17 Andres Island, Colombia, in order to pro18 vide effective surveillance of airplane and

19 ship traffic that departs from the island.

20 ‘‘(4) REPORTS.—The Secretary of State shall

21 submit to the appropriate congressional committees

22 a report—

23 ‘‘(A) not later than September 1, 1995, on

24 the progress and accomplishments made by the
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1 Government of Colombia in the matters set

2 forth in paragraph (2); and

3 ‘‘(B) not later than September 1, 1996, on

4 the progress and accomplishments made by the

5 Government of Colombia in the matters set

6 forth in paragraph (3).

7 ‘‘(i) ADDITIONAL SANCTIONS.—

8 ‘‘(1) APPLICABILITY.—Notwithstanding any

9 other provision of law, and after transmitting the

10 notice provided for in paragraph (3), in any instance

11 where the President does not make a determination

12 regarding a major illicit drug-producing country or

13 major drug-transit country pursuant to subsection

14 (b) or (h), or the Congress enacts a joint resolution

15 disapproving such certification, the President, in ad16 dition to those actions required by subsection (a),

17 may take any or all of the following actions that the

18 President deems appropriate to achieve the objec19 tives of this section:

20 ‘‘(A) SUSPENSION OF BILATERAL ASSIST21 ANCE.—Suspend all funds, or any combination

22 of funds, activities, or programs, authorized

23 under the Foreign Assistance Act of 1961 or

24 the Arms Export Control Act.
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1 ‘‘(B) EXPORT-IMPORT BANK.—Suspend fi2 nancing by the Export-Import Bank of the

3 United States under the Export-Import Bank

4 Act of 1945.

5 ‘‘(C) LICENSES FOR COMMERCIAL ARMS

6 EXPORTS.—Suspend the obligation or expendi7 ture of all funds to license the commercial ex8 port of items on the United States Munitions

9 List under section 38 of the Arms Export Con10 trol Act.

11 ‘‘(D) MILITARY ACTIVITIES.—Suspend the

12 obligation and expenditure of all funds ex13 pended for purposes of carrying out military ac14 tivities in Colombia or that benefit Colombia,

15 including joint military activities.

16 ‘‘(E) EXCLUSION FROM ENTRY INTO THE

17 UNITED STATES.—Take all reasonable steps

18 provided by law to ensure that public officials

19 of such country, regardless of rank, who are im20 plicated in drug-related corruption, their imme21 diate relatives, and their business partners are

22 not permitted entry into the United States, con23 sistent with the provisions of the Immigration

24 and Nationality Act (8 U.S.C. 1101 et seq.),

25 until the completion by the government of that
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1 country of an investigation into the drug-related

2 corruption of the official that is satisfactory to

3 the Secretary of State and the Attorney Gen4 eral of the United States.

5 ‘‘(F) TRADE PREFERENCES.—

6 ‘‘(i) ANDEAN TRADE PREFERENCE

7 ACT.—Withdraw the designation of such

8 country as a beneficiary country under sec9 tion 203 of the Andean Trade Preference

10 Act (19 U.S.C. 3202), if applicable, pursu11 ant to the procedures set forth in sub12 section (e) of that section.

13 ‘‘(ii) TRADE ACT OF 1974.—Terminate

14 the designation of such country as a bene15 ficiary developing country under section

16 502 of the Trade Act of 1974 (19 U.S.C.

17 2462), pursuant to the procedures set

18 forth in subsection (a)(2) of that section.

19 ‘‘(iii) FREE TRADE AGREEMENTS.—

20 Deny such country participation in the dis21 cussion or implementation of a free trade

22 agreement involving Western Hemisphere

23 countries, if applicable.
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1 ‘‘(2) SENSE OF THE CONGRESS REGARDING

2 PARTICIPATION IN FREE TRADE AGREEMENTS.—It

3 is the sense of the Congress that—

4 ‘‘(A) the United States should not extend

5 tariff or quota treatment equivalent to that ac6 corded to members of the North American Free

7 Trade Agreement, or extend participation in the

8 North American Free Trade Agreement, to any

9 major drug-producing country or major drug10 transit country not certified under subsection

11 (b) or (h); and

12 ‘‘(B) such a country should not be allowed

13 to participate in the discussion or implementa14 tion of a free trade agreement involving West15 ern Hemisphere countries.

16 ‘‘(3) REQUIREMENTS FOR IMPOSITION AND

17 TERMINATION OF SANCTIONS.—

18 ‘‘(A) IMPOSITION OF SANCTIONS.—

19 ‘‘(i) CONGRESSIONAL NOTIFICA20 TION.—The President shall impose sanc21 tions under this subsection by transmitting

22 to the appropriate congressional commit23 tees a notice setting forth the sanctions to

24 be imposed.
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1 ‘‘(ii) EFFECTIVE DATE.—Any sanc2 tions selected by the President to be im3 posed under this subsection shall take ef4 fect 7 calendar days after the notice has

5 been received by the Congress.

6 ‘‘(B) TERMINATION OF SANCTIONS.—(i)

7 Sanctions imposed under this subsection shall

8 terminate 15 calendar days after the date on

9 which the President transmits to the appro10 priate congressional committees a notice termi11 nating the sanctions.

12 ‘‘(ii) Upon the termination of sanctions

13 under paragraph (1)(F), any trade designation

14 withdrawn or terminated under paragraph

15 (1)(F) shall be reinstated pursuant to the provi16 sions of the applicable law under which the

17 trade benefits were extended.’’.

18 SEC. 507. REPORT ON ISRAELI DEBT.

19 Not later than 90 days after the date of enactment

20 of this Act, and on October 1 of each year thereafter, the

21 Secretary of State, in consultation with the Secretary of

22 the Treasury, the Secretary of Defense, and the Secretary

23 of Agriculture, shall submit to the appropriate congres24 sional committees a report itemizing all United States

25 Government held and guaranteed debt owed by the Gov-
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1 ernment of Israel to the United States, including but not

2 limited to, an accounting of—

3 (1) United States guaranteed debt held by com4 mercial banks;

5 (2) debt held by the Federal Financing Bank;

6 (3) maturity dates of loans, the amount of an7 nual interest payments, and amounts of principal

8 and interest; and

9 (4) the estimated budgetary cost to the United

10 States Government of canceling Israeli government

11 debt to the United States held by the United States

12 Government and the Federal Financing Bank.

13 SEC. 508. REPORT ON INVOLVEMENT BY SENIOR MEXICAN

14 GOVERNMENT OFFICIALS IN ILLEGAL DRUG

15 TRAFFICKING.

16 (a) REPORT.—Not later than 30 days after the date

17 of enactment of this Act, the President shall transmit a

18 report to the appropriate congressional committees setting

19 forth all information available to the United States Gov20 ernment with respect to the involvement, since March 1,

21 1991, by senior officials of the Government of Mexico,

22 their relatives, and close associates in the illegal traffick23 ing in controlled substances (as defined in section 102(6)

24 of the Controlled Substances Act (21 U.S.C. 802(6)) or

25 in any act to aid or abet such illegal trafficking.
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1 (b) DEFINITIONS.—As used in this section:

2 (1) AID OR ABET.—The phrase ‘‘aid or abet’’

3 includes any act to facilitate illegal trafficking in

4 controlled substances, including any solicitation or

5 receipt of anything of value in consideration of aid6 ing a person to engage in illegal trafficking of such

7 substances.

8 (2) TRAFFICKING.—The term ‘‘trafficking’’

9 means transporting, transferring, or otherwise dis10 posing of, to another, as consideration for anything

11 of value, or making or obtaining control of with the

12 intent to so transport, transfer, or dispose of.

13 SEC. 509. PROHIBITION ON ANTI-NARCOTICS ASSISTANCE

14 TO BURMA.

15 (a) PROHIBITION.—None of the funds made available

16 under this or any other Act may be used to provide assist17 ance to the State Law Order Restoration Council

18 (SLORC) to support efforts to combat illicit narcotics pro19 duction and trafficking in Burma (Myanmar).

20 (b) EXCEPTIONS.—Subsection (a) shall not apply

21 to—

22 (1) United States funded crop-substitution

23 projects funded through nongovernmental organiza24 tions in an area controlled by a Burmese ethnic mi25 nority; or
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1 (2) antinarcotics training conducted by any

2 agency of the United States Government, as long as

3 the training does not involve the transfer of equip4 ment, lethal, or nonlethal.

5 (c) INTELLIGENCE SHARING.—None of the funds

6 made available under this or any other Act may be used

7 to provide intelligence information based on sensitive

8 sources and methods of intelligence gathering to the State

9 Law and Order Restoration Council (SLORC) in Burma

10 (Myanmar).

11 SEC. 510. CLARIFICATION OF RESTRICTIONS UNDER SEC12 TION 620E OF THE FOREIGN ASSISTANCE ACT

13 OF 1961.

14 Section 620E of the Foreign Assistance Act of 1961

15 (22 U.S.C. 2375) is amended—

16 (1) in subsection (e)—

17 (A) by striking ‘‘No assistance’’ and insert18 ing ‘‘No military assistance’’;

19 (B) by striking ‘‘in which assistance is to

20 be furnished or military equipment or tech21 nology’’ and inserting ‘‘in which military assist22 ance is to be furnished or military equipment or

23 technology’’;
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1 (C) by striking ‘‘the proposed United

2 States assistance’’ and inserting ‘‘the proposed

3 United States military assistance’’;

4 (D) by inserting ‘‘(1)’’ immediately after

5 ‘‘(e)’’; and

6 (E) by adding at the end the following new

7 paragraph:

8 ‘‘(2) The prohibitions in this subsection do not apply

9 to any assistance or transfer provided for the purposes

10 of—

11 ‘‘(A) international narcotics control (including

12 chapter 8 of part I of this Act) or any other provi13 sion of law available for providing assistance for

14 counternarcotics purposes;

15 ‘‘(B) facilitating military-to-military contact,

16 training (including chapter 5 of part II of this Act),

17 or humanitarian or civic assistance projects;

18 ‘‘(C) peacekeeping and other multilateral oper19 ations (including chapter 6 of part II of this Act, re20 lating to peacekeeping) or any provisions of law

21 available for providing assistance for peacekeeping

22 purposes, except that any lethal military equipment

23 provided under this subparagraph shall be provided

24 on a lease or loan basis only and shall be returned
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1 upon completion of the operation for which it was

2 provided; or

3 ‘‘(D) antiterrorism assistance (including chap4 ter 8 of part II of this Act, relating to antiterrorism

5 assistance) or any other provision of law available

6 for antiterrorism assistance purposes.’’; and

7 (2) by adding at the end the following new sub8 sections:

9 ‘‘(f) STORAGE COSTS.—The President may release

10 the Government of Pakistan of its contractual obligation

11 to pay the United States Government for the storage costs

12 of items purchased prior to October 1, 1990, but not deliv13 ered by the United States Government by virtue of the

14 application of subsection (e) and may reimburse the Gov15 ernment of Pakistan for any such amounts paid, on such

16 terms and conditions as the President may prescribe, if

17 such payments would have no impact on the scoring of

18 United States budget authority or outlays.

19 ‘‘(g) RETURN OF MILITARY EQUIPMENT.—The

20 President may return to the Government of Pakistan mili21 tary equipment paid for and delivered to Pakistan and

22 subsequently transferred for repair or upgrade to the

23 United States but not returned to Pakistan by virtue of

24 the application of subsection (e). Such equipment or its

25 equivalent may be returned to the Government of Pakistan
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1 if the President determines and so certifies to the appro2 priate congressional committees that such equipment or

3 equivalent neither constitutes nor has received any signifi4 cant qualitative upgrade since being transferred to the

5 United States.

6 ‘‘(h) SENSE OF CONGRESS; REPORT.—

7 ‘‘(1) SENSE OF CONGRESS.—It is the sense of

8 the Congress that—

9 ‘‘(A) fundamental United States policy in10 terests in South Asia include—

11 ‘‘(i) resolving underlying disputes that

12 create the conditions for nuclear prolifera13 tion, missile proliferation, and the threat of

14 regional catastrophe created by weapons of

15 mass destruction;

16 ‘‘(ii) achieving cooperation with the

17 United States on counterterrorism,

18 counternarcotics, international peacekeep19 ing, and other United States international

20 efforts; and

21 ‘‘(iii) achieving mutually verifiable

22 limitations on fissile material production,

23 expansion and enhancement of the mutual

24 ‘no first strike pledge’, and a commitment

25 to work with the United States to limit,
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1 rollback, and eliminate all nuclear weapons

2 programs in South Asia;

3 ‘‘(B) to create the conditions for lasting

4 peace in South Asia, United States policy to5 ward the region must be balanced and should

6 not reward any country for actions inimical to

7 the United States interest;

8 ‘‘(C) the President should initiate a re9 gional peace process in South Asia with both bi10 lateral and multilateral tracks that includes

11 both India and Pakistan; and

12 ‘‘(D) the South Asian peace process should

13 have on its agenda the resolution of the follow14 ing:

15 ‘‘(i) South Asian nuclear proliferation,

16 including mutually verifiable limitations on

17 fissile material production, expansion, and

18 enhancement of the mutual ‘no first strike’

19 pledge, and a commitment to work with

20 the United States to limit, rollback, and

21 eliminate all nuclear weapons programs in

22 South Asia.

23 ‘‘(ii) South Asian missile proliferation.

24 ‘‘(iii) Indian and Pakistani coopera25 tion with Iran.
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1 ‘‘(iv) The resolution of existing terri2 torial disputes, including Kashmir.

3 ‘‘(v) Regional economic cooperation.

4 ‘‘(vi) Regional threats, including

5 threats posed by Russia and China.

6 ‘‘(2) REPORT.—Whenever a report is required

7 to be submitted under section 620F(c) of the For8 eign Assistance Act of 1961, the President shall sub9 mit a report to the appropriate congressional com10 mittees on the progress of the South Asian peace

11 process described in paragraph (1). Each report

12 shall describe—

13 ‘‘(A) whether South Asian countries are

14 working to further United States interests;

15 ‘‘(B) proposed United States actions to

16 further the resolution of the conflict in South

17 Asia as described in paragraph (1) and to fur18 ther United States international interests;

19 ‘‘(C) the degree and extent of cooperation

20 by South Asian countries with all United States

21 international efforts, including voting support

22 within the United Nations; and

23 ‘‘(D) whether withholding of military as24 sistance, dual-use technology, economic assist-
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1 ance, and trade sanctions would further United

2 States interests.’’.

3 SEC. 511. STATEMENT OF POLICY AND REQUIREMENT FOR

4 REPORT ON OIL PIPELINE THROUGH AZER5 BAIJAN, ARMENIA, GEORGIA, AND TURKEY.

6 (a) POLICY.—It is the sense of the Senate that the

7 United States should support the construction of an oil

8 pipeline through Azerbaijan, Armenia, and Turkey.

9 (b) REPORT.—Not later than 60 days after the date

10 of the enactment of this Act, the President shall submit

11 to the Committee on Foreign Relations of the Senate and

12 the Committee on International Relations of the House

13 of Representatives a report analyzing potential routes for

14 the construction of an oil pipeline on and through the ter15 ritories of Azerbaijan, Armenia, Georgia, and Turkey. The

16 report shall include a discussion of the advantages and

17 disadvantages of different routes for the pipeline, includ18 ing—

19 (1) the amount of oil that could be transported

20 along each route of the pipeline;

21 (2) the cost of constructing the pipeline along

22 each route;

23 (3) options for commercial and public financing

24 of construction of each route of the pipeline; and
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1 (4) the impact on regional stability of the oper2 ation of the pipeline along each route.

3 SEC. 512. REPORTS ON ERADICATION OF PRODUCTION AND

4 TRAFFICKING IN NARCOTIC DRUGS AND

5 MARIJUANA.

6 Chapter 8 of part I of the Foreign Assistance Act

7 of 1961 (22 U.S.C. 2291 et seq.) is amended by adding

8 at the end the following:

9 ‘‘SEC. 490B. REPORTS ON ERADICATION OF PRODUCTION

10 AND TRAFFICKING IN NARCOTIC DRUGS AND

11 MARIJUANA.

12 ‘‘(a) IN GENERAL.—Not later than January 30 and

13 June 30 of each year, the President shall submit to the

14 appropriate congressional committees a report on the

15 progress made by the United States in eradicating produc16 tion of and trafficking in illicit drugs. The report shall

17 be submitted in unclassified form with a classified annex,

18 if required.

19 ‘‘(b) REPORT ELEMENTS.—Each report under sub20 section (a) shall include the following:

21 ‘‘(1) A description of the actions taken by the

22 United States during the 6-month period preceding

23 the date of the report—

24 ‘‘(A) to assist countries in which illicit

25 drugs are produced in arresting, convicting, and
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1 imprisoning individuals and groups that

2 produce such drugs; and

3 ‘‘(B) to assist countries through which il4 licit drugs destined for the United States are

5 shipped in arresting, convicting, and imprison6 ing individuals and groups that ship such

7 drugs.

8 ‘‘(2) A description of other actions taken by the

9 United States during that period—

10 ‘‘(A) to assist countries in which cocaine is

11 produced in eradicating the production of coca;

12 and

13 ‘‘(B) to decrease the flow of illicit drugs

14 into the United States.

15 ‘‘(3) An assessment of the effectiveness of the

16 actions covered by paragraphs (1) and (2).

17 ‘‘(4) A description of the major drug trafficking

18 organizations that operate in the United States and

19 a plan that sets forth the manner in which the law

20 enforcement resources of the United States will be

21 utilized to dismantle such organizations.

22 ‘‘(5) A statement of the number of deaths due

23 to illicit drugs (including deaths due to drug-related

24 murders and deaths by drug-induced overdoses) in

25 the United States during that period.
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1 ‘‘(6) A statement of the number of arrests and

2 incarcerations related to illicit drugs in the United

3 States during that period.

4 ‘‘(c) REQUIREMENT FOR JANUARY 30, 1996, RE5 PORT.—In addition to the matters set forth in subsection

6 (b), the report submitted by the President under sub7 section (a) for January 30, 1996, shall include an assess8 ment of the capability of the United States to eradicate

9 coca production in the Western Hemisphere, including—

10 ‘‘(1) an assessment of whether or not complete

11 eradication of coca production in the Western Hemi12 sphere is technologically feasible; and

13 ‘‘(2) if eradication of such production is consid14 ered feasible, an assessment of—

15 ‘‘(A) the resources (including any herbi16 cides and aircraft) required for the eradication;

17 ‘‘(B) the environmental consequences of

18 the utilization of any herbicide proposed for use

19 in the eradication;

20 ‘‘(C) the time required for completion of

21 the eradication; and

22 ‘‘(D) the cost of the eradication.

23 ‘‘(d) DEFINITIONS.—As used in this section—

24 ‘‘(1) The term ‘illicit drugs’ means marihuana

25 and narcotic drugs.
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1 ‘‘(2) The term ‘marijuana’ has the meaning

2 given such term in section 102(16) of the Controlled

3 Substances Act (21 U.S.C. 802(16)).

4 ‘‘(3) The term ‘narcotic drug’ has the meaning

5 given such term in section 102(17) of such Act (21

6 U.S.C. 802(17)).’’.

7 SEC. 513. REPORTS ON COMMERCIAL DISPUTES WITH PAKI8 STAN.

9 (a) REPORTING REQUIREMENT.—Thirty days after

10 the date of enactment of this Act, and every 90 days there11 after, the Secretary of State, in consultation with the Sec12 retary of Commerce, shall report to the Committee on

13 Foreign Relations of the Senate and the Committee on

14 International Relations of the House of Representatives

15 on the status of disputes between the Government of Paki16 stan and United States persons with respect to cellular

17 telecommunications, and on the progress of efforts to re18 solve such disputes.

19 (b) TERMINATION OF REPORTING REQUIREMENT.—

20 The requirement of subsection (a) shall terminate upon

21 certification by the Secretary of State to the Committee

22 on International Relations of the House of Representa23 tives and the Committee on Foreign Relations of the Sen24 ate that all significant disputes between the Government
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1 of Pakistan and United States persons with respect to cel2 lular communications have been satisfactorily resolved.

3 SEC. 514. NONPROLIFERATION AND DISARMAMENT FUND.

4 (a) IN GENERAL.—There are authorized to be appro5 priated $25,000,000 for each of the fiscal years 1996 and

6 1997 to carry out bilateral and multilateral nonprolifera7 tion and disarmament activities for the independent states

8 of the former Soviet Union, countries other than the inde9 pendent states of the former Soviet Union, and inter10 national organizations under section 504 of the Freedom

11 for Russia and Emerging Eurasian Democracies and Open

12 Markets Support Act of 1992 (22 U.S.C. 5854).

13 (b) SUPERSEDES OTHER LAWS.—Funds made avail14 able for fiscal years 1996 and 1997 under subsection (a)

15 may be used notwithstanding any other provision of law.

16 (c) AVAILABILITY OF AMOUNTS.—Amounts author17 ized to be appropriated under subsection (a) are author18 ized to remain available until expended.

19 SEC. 515. RUSSIAN NUCLEAR TECHNOLOGY AGREEMENT

20 WITH IRAN.

21 (a) FINDINGS.—The Congress finds that—

22 (1) Iran is aggressively pursuing a program to

23 acquire or develop nuclear weapons, or both;
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1 (2) the Director of Central Intelligence, in Sep2 tember of 1994, confirmed that Iran is manufactur3 ing and stockpiling chemical weapons;

4 (3) Iran has opposed the Middle East peace

5 process and continues to support the terrorist group

6 Hezballah in Lebanon and radical Palestinian

7 groups;

8 (4) Iran has asserted control over the Persian

9 Gulf island of Abu Musa, which it had been pre10 viously sharing with the United Arab Emirates;

11 (5) during the last few years Iran has report12 edly acquired several hundred improved Seud mis13 siles from North Korea;

14 (6) Iran has moved modern air defense missile

15 systems, tanks, additional troops, artillery, and sur16 face-to-surface missiles onto islands in the Persian

17 Gulf, some of which are disputed between Iran and

18 the United Arab Emirates;

19 (7) Iran has already taken delivery of as many

20 as 30 modern MiG–29 fighter aircraft from the Rus21 sian Federation;

22 (8) the Russian Federation has sold modern

23 conventionally powered submarines to Iran, which

24 increases Iran’s capability to blockade the Straits of

25 Hormuz and the Persian Gulf; and
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1 (9) the Russian Federation has continued to

2 pursue a commercial agreement intended to provide

3 Iran with nuclear technology despite being provided

4 with a detailed description by the President of

5 United States of Iran’s nuclear weapons program.

6 (b) SENSE OF CONGRESS.—It is the sense of Con7 gress that the Russian Federation should be strongly con8 demned if it continues with a commercial agreement to

9 provide Iran with nuclear technology which would assist

10 that country in its development of nuclear weapons, and,

11 if such transfer occurs, that the Russian Federation would

12 be ineligible for assistance under the terms of the Freedom

13 Support Act.

14 SEC. 516. SUPPORTING A RESOLUTION TO THE LONG15 STANDING DISPUTE REGARDING CYPRUS.

16 (a) FINDINGS.—The Congress finds that—

17 (1) the long-standing dispute regarding Cyprus

18 remains unresolved;

19 (2) the Turkish military presence in the terri20 tory of the Republic of Cyprus has continued for

21 more than 20 years;

22 (3) the status quo on Cyprus remains unaccept23 able;
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1 (4) the United States attaches great importance

2 to a just and peaceful resolution of the dispute re3 garding Cyprus;

4 (5) the United Nations and the United States

5 are using their good offices to resolve such dispute;

6 (6) on January 5, 1995, President Clinton ap7 pointed a Special Presidential Emissary for Cyprus;

8 (7) the United Nations has adopted numerous

9 resolutions that set forth the basis of a solution for

10 the dispute regarding Cyprus;

11 (8) paragraph (2) of United Nations Security

12 Council Resolution 939 of July 29, 1994, reaffirms

13 that a solution must be based on a state of Cyprus

14 with a single sovereignty and international personal15 ity, and a single citizenship, with its independence

16 and territorial integrity safeguarded, and comprising

17 two politically equal communities as described in the

18 relevant Security Council resolutions, in a

19 bicommunal and bizonal federation, and that such a

20 settlement must exclude union in whole or in part

21 with any other country or any form of partition or

22 secession;

23 (9) the United Nations Secretary General has

24 described the militarily occupied part of Cyprus as

25 one of the most highly militarized areas in the world;
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1 (10) the continued Turkish military presence on

2 Cyprus hampers the search for a freely negotiated

3 solution to the dispute regarding Cyprus;

4 (11) the United Nations and the United States

5 have called for the withdrawal of all foreign troops

6 from the territory of the Republic of Cyprus; and

7 (12) comprehensive plans for the demilitariza8 tion of the Republic of Cyprus have been proposed.

9 (b) SENSE OF CONGRESS.—The Congress—

10 (1) reaffirms that the status quo on Cyprus is

11 unacceptable;

12 (2) welcomes the appointment of a Special

13 Presidential Emissary for Cyprus;

14 (3) expresses its continued strong support for

15 efforts by the United Nations Secretary General and

16 the United States Government to help resolve the

17 Cyprus problem in a just and viable manner at the

18 earliest possible time;

19 (4) insists that all parties to the dispute regard20 ing Cyprus agree to seek a solution based upon the

21 relevant United Nations resolutions, including para22 graph (2) of United Nations Security Council Reso23 lution 939 of July 29, 1994;
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1 (5) reaffirms the position that all foreign troops

2 should be withdrawn from the territory of the Re3 public of Cyprus;

4 (6) considers that demilitarization of the Re5 public of Cyprus would meet the security concerns of

6 all parties involved, would enhance prospects for a

7 peaceful and lasting resolution of the dispute regard8 ing Cyprus, would benefit all of the people of Cy9 prus, and merits international support; and

10 (7) encourages the United Nations Security

11 Council and the United States Government to con12 sider alternative approaches to promote a resolution

13 of the long-standing dispute regarding Cyprus based

14 upon relevant Security Council resolutions, including

15 incentives to encourage progress in negotiations or

16 effective measures against any recalcitrant party.

17 SEC. 517. REPORTS ON CERTAIN ACTIVITIES OF THE CITY

18 OF MOSCOW GOVERNMENT.

19 (a) REPORTING REQUIREMENT.—The Secretary of

20 State, in consultation with the United States diplomatic

21 chief of mission in Moscow, shall submit to the appropriate

22 congressional committees an annual report on the activi23 ties of the government of the city of Moscow in taking

24 over or seizing control of foreign joint ventures and joint

25 stock companies.
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1 (b) CONTENTS OF REPORTS.—Each report submitted

2 under subsection (a) shall contain the following informa3 tion or answers to the following questions:

4 (1) Has the Moscow City government increased

5 its control over a foreign joint venture or foreign

6 joint stock company by decrees or other unilateral

7 governmental action since the last report or, in the

8 case of the initial report, since the date of enactment

9 of this Act?

10 (2) Have there been any complaints during the

11 past 12 months from American companies against

12 the Moscow City government with regard to interfer13 ing in legal day-to-day management activities of for14 eign joint ventures or foreign joint stock companies?

15 (3) Has the Moscow City government refused to

16 reregister joint ventures or joint stock companies in

17 order to renegotiate already signed contracts and

18 agreements?

19 (4) Has the Moscow City government taken ac20 tions under its ‘‘governmental authority’’ to abridge

21 contracts or other legal rights of foreign joint ven22 tures and foreign stock companies?

23 (5) Has the Moscow City government acted ar24 bitrarily or unilaterally to settle a business dispute

25 by using its inherent governmental powers rather
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1 than submitting the dispute to a proper arbitration

2 tribunal?

3 (6) Is the Moscow City government’s basis for

4 taxation, utilities, licensing, and fees and other city

5 or region-oriented taxes or fees charged on the same

6 basis for Russian-owned or city-owned enterprises as

7 they are to foreign joint ventures or joint stock com8 panies?

9 (7) The report shall include a general descrip10 tion of any complaints made by American businesses

11 to the United States diplomatic mission in Moscow

12 as to corruption in the city of Moscow government

13 or any other Russian governmental entity.

14 SEC. 518. STATEMENT OF POLICY ON AFRICA.

15 (a) FINDINGS.—The Congress makes the following

16 findings:

17 (1) The Sub-Saharan African continent com18 prises one-quarter of the world’s land mass, and in19 cludes 800,000,000 people.

20 (2) Consistent with section 3(b) of this Act,

21 United States assistance to Africa can—

22 (A) enhance the security of the United

23 States;

24 (B) promote United States trade and in25 vestment;
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1 (C) combat transnational threats to United

2 States security, including health, environment,

3 population, and migration;

4 (D) aid the process of private sector eco5 nomic development; and

6 (E) provide urgent humanitarian assist7 ance to countries and people suffering from

8 natural disasters.

9 (3) The United States was engaged militarily

10 and financially in some African countries during the

11 Cold War for national security purposes and, there12 fore, has demonstrated that Africa is important for

13 American strategic interests.

14 (4) The African continent is rich in natural re15 sources, and is the final development frontier for the

16 United States. With the support of the United

17 States, many African countries have taken steps to

18 lift people out of poverty, such as restructuring their

19 economies, beginning to consolidate democratic re20 forms, implementing literacy programs, promoting

21 the growth of capitalism, and encouraging free trade

22 and investment. These factors will benefit United

23 States investors and trade.

24 (5) Transnational threats such as narcotics

25 trafficking, weapons proliferation, the spread of
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1 HIV/AIDS and other diseases, environmental deg2 radation, population explosions, and terrorism, can3 not be combatted if Africa is not a willing and able

4 partner.

5 (6) Many humanitarian and natural disasters

6 have occurred in Africa and have cost the United

7 States in money and troops, but with a small invest8 ment in conflict resolution capacities as well as ade9 quate responses to early warning systems, large ex10 penses and crises in Africa may be avoided.

11 (7) Assistance programs focusing on health

12 care, child survival, population, education and train13 ing, natural resource management, market reform,

14 and human rights education are necessary compo15 nents of sustainable development, and will benefit

16 American business relationships, political partner17 ships, and humanitarian conditions.

18 (b) POLICY.—It shall be the policy of the United

19 States that the African continent is relevant to United

20 States security, economic, political, and humanitarian in21 terests, and that long-term development assistance to Afri22 can nations directly complements United States foreign

23 policy goals and national security interests.
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1 TITLE VI—INTERNATIONAL OR2 GANIZATIONS AND PRO3 GRAMS

4 SEC. 601. VOLUNTARY CONTRIBUTIONS; UNITED NATIONS

5 CHILDREN’S FUND.

6 Section 302(a) of the Foreign Assistance Act of 1961

7 (22 U.S.C. 2222(a)) is amended to read as follows:

8 ‘‘(a)(1) There are authorized to be appropriated to

9 the President, in addition to funds otherwise available for

10 such purpose, $225,000,000 for fiscal year 1996, and

11 $225,000,000 for fiscal year 1997, for voluntary contribu12 tions under this chapter to international organizations and

13 programs, of which amounts not less than $103,000,000

14 for each fiscal year shall be available only for the United

15 Nations Children’s Fund (UNICEF).

16 ‘‘(2) Funds appropriated pursuant to paragraph (1)

17 are authorized to remain available until expended.’’.

18 SEC. 602. UNITED NATIONS FUND FOR POPULATION AC19 TIVITIES.

20 (a) LIMITATION.—(1) Subject to subsections (b), (c),

21 and (d)(2), of the amounts made available for each of the

22 fiscal years 1996 and 1997 to carry out part I of the For23 eign Assistance Act of 1961, not more than $35,000,000

24 shall be available each such fiscal year for the United Na25 tions Fund for Population Activities.
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1 (2) Amounts made available to the Fund for each of

2 the fiscal years 1996 and 1997 under part I of the Foreign

3 Assistance Act of 1961 shall be available for expenditure

4 without fiscal year limitation.

5 (b) PROHIBITION ON USE OF FUNDS FOR CHINA.—

6 None of the funds made available under this section shall

7 be made available for activities in the People’s Republic

8 of China.

9 (c) CONDITIONS ON AVAILABILITY OF FUNDS.—

10 Amounts made available for each of the fiscal years 1996

11 and 1997 under part I of the Foreign Assistance Act of

12 1961 for the United Nations Fund for Population Activi13 ties may not be made available to the Fund unless—

14 (1) the Fund maintains amounts made available

15 to the Fund under this section in an account sepa16 rate from accounts of the Fund for other funds; and

17 (2) the Fund does not commingle amounts

18 made available to the Fund under this section with

19 other funds.

20 (d) REPORTS.—(1) Not later than February 15,

21 1996, and February 15, 1997, the Secretary of State shall

22 submit to the appropriate congressional committees a re23 port indicating the amount of funds in the United Nations

24 Fund for Population Activities that will be used in the
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1 year in which the report is submitted for activities in the

2 People’s Republic of China.

3 (2) If a report under paragraph (1) indicates that

4 the amount of funds in the United Nations Fund for Pop5 ulation Activities that will be used for activities in the Peo6 ple’s Republic of China in the year covered by the report

7 exceeds $7,000,000, then the amount of funds in the Fund

8 available for obligation for the remainder of the fiscal year

9 in which the report is submitted shall be reduced by

10 $7,000,000.

11 SEC. 603. WITHHOLDING OF UNITED STATES PROPOR12 TIONATE SHARE FOR PROGRAMS OF INTER13 NATIONAL ORGANIZATIONS.

14 Section 307 of the Foreign Assistance Act of 1961

15 (22 U.S.C. 2227) is amended to read as follows:

16 ‘‘SEC. 307. WITHHOLDING OF UNITED STATES PROPOR17 TIONATE SHARE FOR PROGRAMS OF INTER18 NATIONAL ORGANIZATIONS.

19 ‘‘(a) REQUIREMENT TO WITHHOLD.—Funds author20 ized to be appropriated by this chapter shall not be avail21 able for the United States proportionate share for pro22 grams, projects, or activities for countries or organizations

23 described in subsection (d). This prohibition applies not24 withstanding any provision of law that earmarks funds
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1 under this chapter for a specified international organiza2 tion or program.

3 ‘‘(b) USE OF FUNDS WITHHELD.—Funds returned

4 or not made available for programs or projects pursuant

5 to subsection (a) shall be returned to the miscellaneous

6 receipts account of the Treasury of the United States.

7 ‘‘(c) OBLIGATIONS.—The President—

8 ‘‘(1) shall review, at least annually, the budgets

9 and accounts of all international organizations re10 ceiving payments of any funds authorized to be ap11 propriated by this chapter; and

12 ‘‘(2) shall report to the appropriate congres13 sional committees the amounts of funds expended by

14 each such organization for programs or projects de15 scribed in subsection (d) and the amount contributed

16 by the United States to each such organization.

17 ‘‘(d) PROGRAMS AND PROJECTS COVERED.—Sub18 section (a) applies with respect to programs, projects, or

19 activities for Cuba, Iran, Libya, Iraq, North Korea,

20 Sudan, Syria, and Burma.’’.

21 SEC. 604. REPORTS ON VOLUNTARY CONTRIBUTIONS TO

22 INTERNATIONAL ORGANIZATIONS BY ALL

23 UNITED STATES GOVERNMENT AGENCIES.

24 Section 306 of the Foreign Assistance Act of 1961

25 (22 U.S.C. 2226) is amended—
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1 (1) in subsection (b)—

2 (A) in paragraph (1), by striking out the

3 first three sentences and inserting in lieu there4 of the following: ‘‘Not later than January 31 of

5 each year, the President shall transmit a report

6 to the appropriate congressional committees

7 listing all voluntary contributions by the United

8 States Government to international organiza9 tions during the preceding fiscal year.’’; and

10 (B) in paragraph (2)—

11 (i) by striking out ‘‘promptly’’; and

12 (ii) by inserting ‘‘on a quarterly

13 basis’’ after ‘‘Budget’’; and

14 (2) by adding at the end the following new sub15 section:

16 ‘‘(c) JUSTIFICATION OF NATIONAL INTEREST.—The

17 President shall transmit as part of each report required

18 by subsection (b)(1) a justification of the manner in which

19 United States voluntary contributions to international or20 ganizations benefit United States national security or

21 other national interests. This justification shall include,

22 for each organization, the purpose and objectives of the

23 United States contribution, a description of the benefits

24 to United States national security or other national inter25 ests.
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1 SEC. 605. RESTRICTIONS ON FUNDING FOR UNITED NA2 TIONS DEVELOPMENT PROGRAM.

3 (a) FUNDS FOR FISCAL YEAR 1996.—(1) Of the

4 funds allocated to the United Nations Development Pro5 gram (UNDP) for fiscal year 1996, 20 percent shall be

6 withheld from disbursement until the President certifies

7 to the appropriate Congressional committees that UNDP

8 has terminated its activities in Burma.

9 (2) Upon making a certification under paragraph (1),

10 the funds withheld under that paragraph are authorized

11 to be made available.

12 (b) FUNDS FOR FISCAL YEAR 1997.—Funds allo13 cated to the United Nations Development Program for fis14 cal year 1997 shall be withheld from disbursement by the

15 amount of funds that the United Nations Development

16 Program made available for activities in Burma in the fis17 cal year 1996, unless the President has made the certifi18 cation under subsection (a)(1) that the United Nations

19 Development Program has terminated its activities in

20 Burma in fiscal year 1996.

21 SEC. 606. REPLENISHMENT OF THE ASIAN DEVELOPMENT

22 BANK.

23 The Asian Development Bank Act (22 U.S.C. 285–

24 285aa) is amended by adding at the end the following new

25 section:
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1 ‘‘SEC. 31. FOURTH REPLENISHMENT.

2 ‘‘(a) SUBSCRIPTION AUTHORITY.—

3 ‘‘(1) IN GENERAL.—The United States Gov4 ernor of the Bank may, on behalf of the United

5 States, subscribe to 276,105 shares of the increase

6 in the capital stock of the Bank—

7 ‘‘(A) 5,522 of which shall be shares of

8 paid-in capital stock; and

9 ‘‘(B) 270,583 of which shall be shares of

10 callable capital stock.

11 ‘‘(2) SUBJECT TO APPROPRIATIONS.—The au12 thority provided by paragraph (1) shall be effective

13 only to such extent or in such amounts as are pro14 vided in advance in appropriations Acts.

15 ‘‘(b) LIMITATIONS ON AUTHORIZATION OF APPRO16 PRIATIONS.—For the subscription authorized by sub17 section (a), there are authorized to be appropriated to the

18 Secretary of the Treasury $13,320,000 for each of the fis19 cal years 1996 and 1997.’’.

20 SEC. 607. REPUBLIC OF CHINA (TAIWAN’S) PARTICIPATION

21 IN THE UNITED NATIONS.

22 (a) FINDINGS.—The Congress finds that—

23 (1) the Republic of China was the first signa24 tory to the Charter of the United Nations in 1945

25 and remained an active member of that world body

26 until 1971;
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1 (2) China was divided in 1949, and the Repub2 lic of China (hereinafter referred to as ‘‘Taiwan’’)

3 and the People’s Republic of China (hereinafter re4 ferred to as ‘‘Mainland China’’) have exercised ex5 clusive jurisdiction over their respective areas since

6 then;

7 (3) Taiwan has the 19th largest gross national

8 product in the world, a strong and vibrant economy,

9 and one of the largest foreign exchange reserves of

10 any nation;

11 (4) Taiwan has dramatically improved its

12 record on human rights and routinely holds free and

13 fair elections in a multiparty system, as evidenced

14 most recently by the December 3, 1994, balloting for

15 local and provincial officials;

16 (5) the 21,000,000 people in Taiwan have not

17 been represented in the United Nations since 1971

18 and their human rights as citizens of the world have

19 therefor been severely abridged;

20 (6) Taiwan has in recent years repeatedly ex21 pressed its strong desire to participate in the United

22 Nations;

23 (7) Taiwan has much to contribute to the work

24 and funding of the United Nations;
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1 (8) Taiwan has demonstrated its commitment

2 to the world community by responding to the inter3 national disasters and crises such as environmental

4 destruction in the Persian Gulf and famine in Rwan5 da by providing financial donations, medical assist6 ance, and other forms of aid;

7 (9) the world community has reacted positively

8 to Taiwan’s desire for international participation, as

9 shown by Taiwan’s continued membership in the

10 Asian Development Bank, the admission of Taiwan

11 into the Asia-Pacific Economic Cooperation Group

12 as a full member, and the accession of Taiwan as an

13 observer at the General Agreement on Tariffs and

14 Trade as the first step toward becoming a contract15 ing party to that organization;

16 (10) the United States has supported Taiwan’s

17 participation in these bodies and indicated, in its

18 policy review of September 1994, a stronger and

19 more active policy of support for Taiwan’s participa20 tion in other international organizations;

21 (11) Taiwan has repeatedly stated that its par22 ticipation in international organizations is one of

23 parallel representation without prejudice to the cur24 rent status of Mainland China in the international
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1 community and does not represent a challenge to

2 that status;

3 (12) the United Nations and other international

4 organizations have established precedents concerning

5 parallel representation, such as the cases of South

6 Korea and North Korea and the two former

7 Germanies;

8 (13) the decision of the United States to estab9 lish diplomatic relations with Mainland China, as ex10 pressed in the Taiwan Relations Act (Public Law

11 96–8), is based ‘‘upon the expectation that the fu12 ture of Taiwan will be determined by peaceful

13 means’’; and

14 (14) Taiwan’s participation in international or15 ganizations would not prevent or imperil the even16 tual resolution of disputes between Taiwan and

17 Mainland China any more than participation in

18 international organizations by the former West Ger19 many and the former East Germany prevented the

20 eventual settlement of Germany’s national status by

21 peaceful and democratic means.

22 (b) SENSE OF CONGRESS.—It is the sense of the

23 Congress that the Government of the United States should

24 immediately encourage the United Nations to take action

25 by considering the unique situation of Taiwan in the inter-
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1 national community and adopting a comprehensive solu2 tion to accommodate Taiwan in the United Nations and

3 its related agencies.

4 SEC. 608. REPUBLIC OF CHINA (TAIWAN’S) PARTICIPATION

5 IN THE WORLD TRADE ORGANIZATION.

6 (a) FINDINGS.—The Congress finds that—

7 (1) the purpose of the General Agreement on

8 Tariffs and Trade (hereafter in this section referred

9 to as the ‘‘GATT’’) and the World Trade Organiza10 tion (hereafter in this section referred to as the

11 ‘‘WTO’’) is to enable member countries to conduct

12 trade based upon free market principles, by limiting

13 government intervention in the form of state sub14 sidies, by limiting nontariff barriers, and by encour15 aging reciprocal reductions in tariffs among mem16 bers;

17 (2) the GATT and the WTO are based on the

18 assumption that the import and export of goods are

19 conducted by independent enterprises responding to

20 profit incentives and market forces;

21 (3) the GATT and the WTO require that

22 nonmarket economies implement significant reforms

23 to change centralized and planned economic systems

24 before becoming a full GATT or WTO member and

25 the existence of a decentralized and a free market
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1 economy is considered a precondition to fair trade

2 among GATT and WTO members;

3 (4) the People’s Republic of China (hereinafter

4 referred to as ‘‘China’’) and the Republic of China

5 on Taiwan (hereinafter referred to as ‘‘Taiwan’’) ap6 plied for membership in the GATT in 1986 and

7 1991, respectively, and Working Parties have been

8 established by the GATT to review their applica9 tions;

10 (5) China insists that Taiwan’s membership in

11 the GATT or the WTO be granted only after China

12 becomes a full member of the GATT or the WTO;

13 (6) Taiwan has a free market economy that has

14 existed for more than 3 decades, and is currently the

15 14th largest trading nation in the world;

16 (7) Taiwan has a gross national product that is

17 the world’s 20th largest, its foreign exchange re18 serves are among the largest in the world, and it has

19 become the world’s 7th largest outbound investor;

20 (8) Taiwan has made substantive progress in

21 agreeing to reduce upon accession to the GATT or

22 the WTO the tariff level of many products, and non23 tariff barriers;

24 (9) Taiwan has also made significant progress

25 in other aspects of international trade, such as in in-
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1 tellectual property protection and opening its finan2 cial services market;

3 (10) despite some progress in reforming its eco4 nomic system, China still retains legal and institu5 tional practices that restrict free market competition

6 and are incompatible with GATT and WTO prin7 ciples;

8 (11) China still uses an intricate system of tar9 iff and nontariff administrative controls to imple10 ment its industrial and trade policies, and China’s

11 tariffs on foreign goods, such as automobiles, can be

12 as high as 150 percent, even though China has made

13 commitments in the market access memorandum of

14 understanding to reform significant parts of its im15 port regime;

16 (12) China continues to use direct and indirect

17 subsidies to promote exports;

18 (13) China often manipulates its exchange rate

19 to impede balance of payments adjustments and

20 gain unfair competitive advantages in trade; and

21 (14) Taiwan’s and China’s accession to the

22 GATT and the WTO have important implications

23 for the United States and the world trading system.

24 (b) SENSE OF CONGRESS.—It is the sense of the

25 Congress that—
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1 (1) the United States should separate Taiwan’s

2 application for membership in the GATT and the

3 WTO from China’s application for membership in

4 those organizations;

5 (2) the United States should support Taiwan’s

6 earliest membership in the GATT and the WTO;

7 (3) the United States should support the mem8 bership of China in the GATT and the WTO only

9 if a sound bilateral commercial agreement is reached

10 between the United States and China, and that

11 China makes significant progress in making its eco12 nomic system compatible with GATT and WTO

13 principles; and

14 (4) China’s application for membership in the

15 GATT and the WTO should be reviewed strictly in

16 accordance with the rules, guidelines, principles,

17 precedents, and practices of the GATT and the

18 WTO.
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1 TITLE VII—SPECIAL AUTHORI2 TIES AND GENERAL PROVI3 SIONS

4 CHAPTER 1—REPORTING REQUIREMENTS

5 SEC. 701. ANNUAL ALLOCATION REPORTS.

6 Section 653(b) of the Foreign Assistance Act of 1961

7 (22 U.S.C. 2395(b)) is amended by inserting ‘‘for a period

8 of less than 90 days’’ after ‘‘continuing appropriations’’.

9 SEC. 702. REPORT ON EXPROPRIATION OF UNITED STATES

10 PROPERTY.

11 (a) REPORTING REQUIREMENT.—At the beginning of

12 each fiscal year, the President shall transmit to the appro13 priate congressional committees a report containing the

14 following:

15 (1) A list of every country in which the United

16 States Government is aware that a United States

17 person has an outstanding expropriation claim.

18 (2) The total number of such outstanding ex19 propriation claims made by United States persons

20 against each such country.

21 (3) The period of time in which each such claim

22 has been outstanding.

23 (4) The status of each case and efforts made by

24 the United States Government and the government

25 of the country in which such claim has been made,
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1 to take one or more of the steps described in section

2 527(a)(2) of the Foreign Relations Authorization

3 Act, Fiscal Years 1994 and 1995 (22 U.S.C.

4 2370a(a)(2)).

5 (5) Each project a United States Executive Di6 rector voted against as a result of the action de7 scribed in section 527(b) of the Foreign Relations

8 Authorization Act, Fiscal Years 1994 and 1995 (22

9 U.S.C. 2370a(b)).

10 (b) DEFINITION.—For purposes of this section, the

11 term ‘‘United States person’’ means a United States citi12 zen or corporation, partnership, or association at least 50

13 percent beneficially owned by United States citizens.

14 CHAPTER 2—GENERAL PROVISIONS

15 SEC. 711. NATIONAL INTEREST, ECONOMIC FREEDOM, AND

16 GRADUATION REQUIREMENTS.

17 (a) POLICY.—It shall be United States assistance pol18 icy to recognize that—

19 (1) no amount of foreign assistance can provide

20 sustainable development for the people of a country

21 which is not committed to free market principles and

22 economic freedom; and

23 (2) Congress and the American taxpayers have

24 a right to know how foreign assistance benefits

25 United States national interests, how it supports
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1 economic growth in recipient countries, and when

2 United States bilateral assistance to each foreign as3 sistance recipient will cease.

4 (b) INCLUSION IN CONGRESSIONAL PRESENTATION

5 DOCUMENTS.—The President shall include in the congres6 sional presentation materials on United States bilateral

7 assistance submitted to the appropriate congressional

8 committees for a fiscal year the following information:

9 (1) JUSTIFICATION OF NATIONAL INTEREST.—

10 The manner in which programs, projects, or activi11 ties benefit the national interests of the United

12 States and the qualitative and quantitative indica13 tors for measuring these benefits.

14 (2) CONDITIONS SUPPORTIVE OF ECONOMIC

15 GROWTH.—Efforts taken by countries receiving

16 United States bilateral assistance to limit the size of

17 the State sector, including—

18 (A) an assessment of policies regarding

19 wage and price controls, State ownership of

20 production and distribution, and control of fi21 nancial institutions;

22 (B) encouraging trade and foreign invest23 ment, including an assessment of tariff levels,

24 quotas, and the opportunity to repatriate cap25 ital and profits; and
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1 (C) protection of the private sector, includ2 ing an assessment of tax policies and rights of

3 ownership and property.

4 (3) PROGRESS TOWARD GRADUATION.—A de5 termination on a country-by-country basis estimat6 ing the year in which each foreign country receiving

7 assistance during the preceding calendar year will

8 graduate from United States bilateral assistance.

9 This determination shall include—

10 (A) the number of years the United States

11 has provided assistance to each country;

12 (B) the total amount of United States as13 sistance provided to each country, including all

14 grants, loans, credits, and guarantees; and

15 (C) the total amount of assistance provided

16 to that country from all multilateral organiza17 tions, including all international financial insti18 tutions, the United Nations, and other inter19 national organizations.

20 (c) DEFINITIONS.—For purposes of this section, the

21 term ‘‘United States bilateral assistance’’ includes—

22 (A) assistance provided under this Act;

23 and

24 (B) assistance made available pursuant to

25 section 23 of the Arms Export Control Act.
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1 SEC. 712. TERMINATION OF ASSISTANCE.

2 Section 617 of the Foreign Assistance Act of 1961

3 (22 U.S.C. 2364) is amended to read as follows:

4 ‘‘SEC. 617. TERMINATION OF ASSISTANCE.

5 ‘‘(a) IN GENERAL.—(1) In order to ensure the effec6 tiveness of assistance provided under this Act, funds made

7 available under this Act to carry out any program, project,

8 or activity of assistance shall remain available for obliga9 tion for a period not to exceed 8 months after the date

10 of termination of such assistance for the necessary ex11 penses of winding up such programs, projects, or activities

12 and, notwithstanding any other provision of law, funds so

13 obligated may remain available until expended.

14 ‘‘(2) Funds obligated to carry out any program,

15 project, or activity of assistance before the effective date

16 of the termination of such assistance are authorized to be

17 available for expenditure for the necessary expenses of

18 winding up such programs, projects, and activities, not19 withstanding any provision of law restricting the expendi20 ture of funds, and may be reobligated to meet any other

21 necessary expenses arising from the termination of such

22 assistance.

23 ‘‘(3) The necessary expenses of winding up programs,

24 projects, and activities of assistance include the obligation

25 and expenditure of funds to complete the training or stud26 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 to carry out any program, project, or activity of assistance

11 under this Act that was subsequently terminated pursuant

12 to law.

13 ‘‘(c) GUARANTEE PROGRAMS.—Provisions of this or

14 any other Act requiring the termination of assistance

15 under this Act shall not be construed to require the termi16 nation of guarantee commitments that were entered into

17 before the effective date of the termination of assistance.’’.

18 SEC. 713. PROHIBITION ON ASSISTANCE TO FOREIGN GOV19 ERNMENTS ENGAGED IN ESPIONAGE

20 AGAINST THE UNITED STATES.

21 Chapter 1 of part III of the Foreign Assistance Act

22 of 1961 (22 U.S.C. 2351 et seq.), as amended by this Act,

23 is further amended by adding at the end the following new

24 section:
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1 ‘‘SEC. 620K. PROHIBITION ON ASSISTANCE TO FOREIGN

2 GOVERNMENTS ENGAGED IN ESPIONAGE

3 AGAINST THE UNITED STATES.

4 ‘‘(a) PROHIBITION.—None of the funds made avail5 able to carry out this Act or the Arms Export Control

6 Act (other than humanitarian assistance or assistance for

7 refugees) may be provided to any foreign government

8 which the President determines is engaged in intelligence

9 activities within the United States harmful to the national

10 security of the United States.

11 ‘‘(b) PERIODIC REPORTS.—Beginning one year after

12 the date of enactment of this section, and at intervals of

13 one year thereafter, the President shall prepare and trans14 mit to the Committee on Foreign Relations and the Select

15 Committee on Intelligence of the Senate and the Commit16 tee on International Relations and the Permanent Select

17 Committee on Intelligence of the House of Representatives

18 a report, in classified and unclassified forms, listing all

19 foreign governments which he determines are conducting

20 intelligence activities within the United States harmful to

21 the national security of the United States.

22 ‘‘(c) DEFINITION.—As used in this section, the term

23 ‘humanitarian assistance’ means food (including the

24 monetization of food), clothing, medicine, and medical

25 supplies.’’.
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1 SEC. 714. FOREIGN STATE SUPPORT FOR ACTS OF INTER2 NATIONAL TERRORISM.

3 Section 620A of the Foreign Assistance Act of 1961

4 (22 U.S.C. 2371) is amended—

5 (1) by adding ‘‘and’’ at the end of subsection

6 (c)(1)(B);

7 (2) in subsection (c)(2)(A), by striking ‘‘6-

8 month period’’ and inserting ‘‘one-year period’’;

9 (3) in subsection (d), in the text above para10 graph (1), by striking ‘‘to a country’’ and inserting

11 ‘‘to the people of a country’’;

12 (4) in subsection (d)(1), by striking ‘‘national

13 security’’ and inserting ‘‘vital national security’’;

14 (5) in subsection (d)(2)(B), by striking ‘‘na15 tional security’’ and inserting ‘‘vital national secu16 rity’’; and

17 (6) by adding at the end the following new sub18 section:

19 ‘‘(e) DEFINITION.—As used in this section, the

20 phrases ‘‘provided support for acts of international terror21 ism’’ and ‘‘provided any support for international terror22 ism’’ mean—

23 ‘‘(1) to have knowingly assisted, supported, or24 dered, planned, executed, or otherwise facilitated in25 dividual acts of international terrorism;
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1 ‘‘(2) to have knowingly provided or facilitated

2 the provision of assistance or support to a group or

3 to members of a group that have committed an act

4 or acts of international terrorism; or

5 ‘‘(3) to have knowingly provided safe haven or

6 refuge within any area under its direct or indirect

7 control to a group or to members of a group that

8 have committed an act or acts of international ter9 rorism.’’.

10 SEC. 715. RESTRICTION ON ASSISTANCE TO NUCLEAR

11 PROLIFERATORS.

12 (a) POLICY.—It is the sense of the Congress that the

13 President should instruct the United States Permanent

14 Representative to the United Nations to enhance the role

15 of that institution in the enforcement of nonproliferation

16 treaties and global non-proliferation. It is further the

17 sense of the Congress that the United States should pur18 sue other bilateral and multilateral arrangements to regu19 late and, ultimately, to end the production of special nu20 clear material (as defined in section 11aa. of the Atomic

21 Energy Act of 1954 (42 U.S.C. 2014aa.)), subject to ver22 ification and enforcement by the International Atomic En23 ergy Agency, and to impose sanctions on those states pro24 ducing such material without the benefit of full-scope safe25 guards.
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1 (b) PROHIBITION.—Notwithstanding any other provi2 sion of law, no military assistance shall be made available

3 under this or any other Act, and no military equipment,

4 technology or services shall be sold, transferred, or li5 censed under the Arms Export Control Act, pursuant to

6 the authorities contained in this Act or any other Act, to

7 any non-nuclear weapon state that is found by the Presi8 dent to be diverting unsafeguarded special nuclear mate9 rial from a civilian to a military use.

10 (c) WAIVER.—The President may waive the applica11 tion of subsection (b) for successive 180-day periods if he

12 determines and so certifies to the appropriate congres13 sional committees that—

14 (1) the termination of such assistance would

15 have a serious adverse effect on vital United States

16 interests; and

17 (2) he has received reliable assurances that the

18 country in question will not acquire or develop nu19 clear weapons or assist other nations in doing so.

20 Such certification shall set forth the reasons supporting

21 such determination in each particular case.

22 (d) DEFINITION.—As used in this section, the term

23 ‘‘unsafeguarded special nuclear material’’ means special

24 nuclear material (as defined in section 11aa of the Atomic

25 Energy Act of 1954 (42 U.S.C. 2014aa)) which is pro-
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1 duced in violation of IAEA safeguards or is not subject

2 to IAEA safeguards, and does not include any quantity

3 of material that could, if it were exported from the United

4 States, be exported under a general license by the Nuclear

5 Regulatory Commission.

6 SEC. 716. PROHIBITION ON FOREIGN ASSISTANCE TO FOR7 EIGN GOVERNMENTS NOT IMPLEMENTING

8 EXTRADITION TREATIES.

9 (a) IN GENERAL.—Chapter 1 of part III of the For10 eign Assistance Act of 1961 (22 U.S.C. 2351 et seq.), as

11 amended by this Act, is further amended by adding at the

12 end the following new section:

13 ‘‘SEC. 620L. PROHIBITION ON FOREIGN ASSISTANCE TO

14 FOREIGN GOVERNMENTS NOT IMPLEMENT15 ING EXTRADITION TREATIES.

16 ‘‘(a) PROHIBITION.—The President may not provide

17 foreign assistance to the government of a country that the

18 President determines is not effectively implementing a

19 treaty entered into by such country with the United States

20 relating to the extradition of individuals who have been

21 charged with or who have committed felony offenses.

22 ‘‘(b) DEFINITIONS.—As used in this section:

23 ‘‘(1) FELONY OFFENSE.—The term ‘felony of24 fense’ means an offense punishable by death or im25 prisonment for a term exceeding 1 year.
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1 ‘‘(2) FOREIGN ASSISTANCE.—The term ‘foreign

2 assistance’ means any funds made available to carry

3 out any program, project, or activity funded under

4 major functional budget category 150 (relating to

5 international affairs).’’.

6 (b) EFFECTIVE DATE.—The prohibition contained in

7 the amendment made by subsection (a) applies with re8 spect to the provision of foreign or military assistance on

9 or after the date of the enactment of this Act.

10 SEC. 717. IMPACT ON JOBS IN THE UNITED STATES.

11 Section 636 of the Foreign Assistance Act of 1961

12 (22 U.S.C. 2396) is amended by adding at the end the

13 following new subsection:

14 ‘‘(j)(1) Funds made available to carry out the provi15 sions of this Act may not be made available to provide—

16 ‘‘(A) any financial incentive to a business enter17 prise located in the United States for the purpose of

18 inducing that enterprise to relocate outside the Unit19 ed States if such incentive or inducement is likely to

20 reduce the number of individuals employed in the

21 United States by that enterprise because that enter22 prise would replace production in the United States

23 with production outside the United States;

24 ‘‘(B) assistance for the purpose of establishing

25 or developing in a foreign country any export proc-
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1 essing zone or designated area in which the tax, tar2 iff, labor, environment, and safety laws of that coun3 try do not apply, in part or in whole, to activities

4 carried out within that zone or area, unless the

5 President determines and certifies that such assist6 ance is not likely to cause a loss of jobs within the

7 United States; or

8 ‘‘(C) subject to paragraph (2), assistance for

9 any project or activity that contributes to the viola10 tion of internationally recognized workers rights (as

11 defined in section 502(a)(4) of the Trade Act of

12 1974) of workers in the foreign country, including in

13 any designated zone or area in that country.

14 ‘‘(2) Paragraph (1) shall not apply with respect to

15 the provision of assistance for microenterprises and small16 scale enterprises, or for small-holder agriculture in the in17 formal sector of the foreign country.’’.

18 SEC. 718. NONAPPLICABILITY OF CARGO PREFERENCE RE19 QUIREMENTS.

20 Sections 901(b) and 901b of the Merchant Marine

21 Act of 1936 shall not apply to the transportation of agri22 cultural commodities as part of any United States Govern23 ment-administered program of food assistance to foreign

24 countries.
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1 SEC. 719. PROHIBITION ON FOREIGN ASSISTANCE TO FOR2 EIGN GOVERNMENTS EMPLOYING MERCE3 NARY FORCES.

4 (a) IN GENERAL.—Chapter 1 of part III of the For5 eign Assistance Act of 1961 (22 U.S.C. 2351 et seq.), as

6 amended by this Act, is further amended by adding at the

7 end the following new section:

8 ‘‘SEC. 620M. PROHIBITION ON FOREIGN ASSISTANCE TO

9 FOREIGN GOVERNMENTS EMPLOYING MER10 CENARY FORCES.

11 ‘‘(a) REDUCTION OF ASSISTANCE.—The President

12 should reduce United States foreign assistance to the gov13 ernment of any country that employs mercenary forces by

14 an amount equal to the sum paid by that government to

15 employ mercenary forces.

16 ‘‘(b) DEFINITIONS.—As used in this section:

17 ‘‘(1) MERCENARY.—The term ‘mercenary’ has

18 the meaning given such term in Protocol I Addi19 tional to the Geneva Conventions of 1949 (1125

20 U.N.T.S. 3, adopted on June 8, 1977, at Geneva),

21 namely any person who—

22 ‘‘(A) is specially recruited locally or abroad

23 in order to fight in an armed conflict;

24 ‘‘(B) does, in fact, take a direct part in the

25 hostilities;
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1 ‘‘(C) is motivated to take part in the hos2 tilities essentially by the desire for private gain

3 and, in fact, is promised, by or on behalf of a

4 party to the conflict, material compensation

5 substantially in excess of that promised or paid

6 to combatants of similar ranks and functions in

7 the armed forces of that party;

8 ‘‘(D) is neither a national of a party to the

9 conflict nor a resident of the territory controlled

10 by a party to the conflict;

11 ‘‘(E) is not a member of the armed forces

12 of a party to the conflict; and

13 ‘‘(F) has not been sent by a state which is

14 not a party to the conflict on official duty as a

15 member of its armed forces.

16 ‘‘(2) FOREIGN ASSISTANCE.—The term ‘foreign

17 assistance’ means any funds made available to carry

18 out any program, project, or activity funded under

19 major functional budget category 150 (relating to

20 international affairs).’’.

21 (b) EFFECTIVE DATE.—The prohibition contained in

22 the amendment made by subsection (a) applies with re23 spect to the provision of foreign assistance on or after the

24 date of the enactment of this Act.
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1 SEC. 720. TRANSPORTATION EXPENSES FOR DELIVERY OF

2 HUMANITARIAN ASSISTANCE.

3 Chapter 3 of part III of the Foreign Assistance Act

4 of 1961 is amended by inserting after section 667 (22

5 U.S.C. 2427) the following new section:

6 ‘‘SEC. 668. TRANSPORTATION EXPENSES FOR DELIVERY OF

7 HUMANITARIAN ASSISTANCE.

8 ‘‘(a) AUTHORITY.—The President is authorized to

9 pay the expenses incurred in the transport of humani10 tarian assistance which has been privately donated in the

11 United States to the independent states of the former So12 viet Union, the Baltic states, and the independent states

13 of the former Yugoslavia (excluding Serbia), with the con14 sent of the relevant government.

15 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—(1)

16 There are authorized to be appropriated to the President

17 such sums as may be necessary to carry out this section.

18 ‘‘(2) Amounts appropriated pursuant to paragraph

19 (1) are authorized to remain available until expended.

20 ‘‘(c) DEFINITIONS.—As used in this section:

21 ‘‘(1) HUMANITARIAN ASSISTANCE.—The term

22 ‘humanitarian assistance’ includes the provision of

23 food, medicine, medical supplies, and clothing. The

24 term does not include construction equipment, in25 cluding tractors, scrapers, loaders, graders, bull26 dozers, dump trucks, generators, and compressors.
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1 ‘‘(2) INDEPENDENT STATES OF THE FORMER

2 SOVIET UNION.—The term ‘independent states of

3 the former Soviet Union’ has the same meaning

4 given the term in section 3 of the FREEDOM Sup5 port Act (22 U.S.C. 5801).’’.

6 SEC. 721. PROHIBITION ON ASSISTANCE TO COUNTRIES

7 BLOCKING OR RESTRICTING HUMANITARIAN

8 AID CORRIDORS.

9 (a) FINDINGS.—The Congress makes the following

10 findings:

11 (1) The United States Federal budget deficit

12 and spending constraints require the maximum effi13 ciency in the usage of United States foreign assist14 ance.

15 (2) The delivery of humanitarian assistance to

16 people in need is consistent with the fundamental

17 values of our Nation and is an important component

18 of United States foreign policy.

19 (3) As a matter of principle and in furtherance

20 of fiscal prudence, the United States should seek to

21 promote the delivery of humanitarian assistance to

22 people in need in a manner that is both timely and

23 cost effective.

24 (4) Recipients of United States assistance

25 should not hinder or delay the transport or delivery
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1 of United States humanitarian assistance to other

2 countries.

3 (b) LIMITATION ON ASSISTANCE TO COUNTRIES

4 THAT RESTRICT THE TRANSPORT OR DELIVERY OF

5 UNITED STATES HUMANITARIAN ASSISTANCE.—

6 (1) PROHIBITION ON ASSISTANCE.—Notwith7 standing any other provision of law, funds appro8 priated or otherwise made available for United

9 States assistance may not be made available for any

10 country whose government prohibits or otherwise re11 stricts, directly or indirectly, the transport or deliv12 ery of United States humanitarian assistance.

13 (2) WAIVER.—The prohibition on United States

14 assistance contained in paragraph (1) shall not

15 apply if the President determines and notifies Con16 gress in writing that providing such assistance to a

17 country is in the national interest of the United

18 States.

19 (3) RESUMPTION OF ASSISTANCE.—A suspen20 sion or termination of United States assistance for

21 any country under paragraph (1) shall cease to be

22 effective when the President certifies in writing to

23 the Speaker of the House of Representatives and the

24 Committee on Foreign Relations of the Senate that

25 such country is no longer prohibiting or otherwise
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1 restricting, either directly or indirectly, the transport

2 or delivery of United States humanitarian assist3 ance.

4 (c) REPORT.—

5 (1) IN GENERAL.—At the time of the annual

6 budget submission to Congress, the President shall

7 submit a report to Congress describing any informa8 tion available to the President concerning prohibi9 tions or restrictions, direct or indirect, on the trans10 port or delivery of United States humanitarian as11 sistance by the government of any country receiving

12 or eligible to receive United States foreign assistance

13 during the current or preceding fiscal year.

14 (2) APPLICABILITY OF LAW.—The President

15 shall include in the report required by paragraph (1)

16 a statement as to whether the prohibition in sub17 section (b)(1) is being applied to each country for

18 which the President has information available to him

19 concerning prohibitions or restrictions, direct or in20 direct, on the transport or delivery of United States

21 humanitarian assistance.

22 (d) DEFINITION.—As used in this section, the term

23 ‘‘United States assistance’’ has the same meaning given

24 that term in section 481(e)(4) of the Foreign Assistance

25 Act of 1961.
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1 CHAPTER 3—REPEALS

2 SEC. 731. REPEAL OF OBSOLETE PROVISIONS.

3 (a) 1986 ASSISTANCE ACT.—The Special Foreign

4 Assistance Act of 1986 (Public Law 99–529) is repealed

5 except for section 1 and section 204.

6 (b) 1985 ASSISTANCE ACT.—The International Secu7 rity and Development Cooperation Act of 1985 (Public

8 Law 99–83) is repealed except for section 1(a), section

9 131, section 132, section 504, section 505, part B of title

10 V (other than sections 558 and 559), section 1302, section

11 1303, and section 1304.

12 (c) 1985 JORDAN SUPPLEMENTAL ACT.—The Jor13 dan Supplemental Economic Assistance Authorization Act

14 of 1985 (title IV of Public Law 99–88) is repealed.

15 (d) 1985 AFRICAN FAMINE ACT.—The African Fam16 ine Relief and Recovery Act of 1985 (22 U.S.C. 2292q

17 note) is repealed.

18 (e) 1983 ASSISTANCE ACT.—The International Secu19 rity and Development Assistance Authorization Act of

20 1983 (as contained in section 101(b)(2) of Public Law 98–

21 151) is repealed.

22 (f) 1983 LEBANON ASSISTANCE ACT.—The Lebanon

23 Emergency Assistance Act of 1983 (Public Law 98–43)

24 is repealed.
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1 (g) 1981 ASSISTANCE ACT.—The International Secu2 rity and Development Cooperation Act of 1981 (Public

3 Law 97–113) is repealed except for section 1, section 709,

4 and section 714.

5 (h) SAVINGS PROVISION.—Except as otherwise pro6 vided in this Act, the repeal by this Act of any provision

7 of law that amended or repealed another provision of law

8 does not affect in any way that amendment or repeal.

9 TITLE VIII—EFFECTIVE DATE

10 SEC. 801. EFFECTIVE DATE.

11 Except as otherwise provided, this Act, and the

12 amendments made by this Act, shall take effect on Octo13 ber 1, 1995.

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