II

103D CONGRESS

2D SESSION S. 1856

Entitled the ‘‘Peace, Prosperity, and Democracy Act of 1994’’.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 22, 1994

Mr. PELL (by request) introduced the following bill; which was read twice and

referred to the Committee on Foreign Relations

A BILL

Entitled the ‘‘Peace, Prosperity, and Democracy Act of

1994’’.

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

3 SECTION 1. SHORT TITLE.

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

5 Democracy Act of 1994’’.

6 SEC. 2. TABLE OF CONTENTS.

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

TITLE I—SUSTAINABLE DEVELOPMENT

CHAPTER 1—SUSTAINABLE DEVELOPMENT AUTHORITIES

Sec. 1101. Statement of policy.

Sec. 1102. Policies concerning sustainable development programs.

Sec. 1103. Voluntary cooperation in development.

Sec. 1104. Microenterprise and other credit programs.

Sec. 1105. Availability of funds.
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CHAPTER 2—DEVELOPMENT FUND FOR AFRICA

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

CHAPTER 3—ROLE OF RELATED PROGRAMS

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

Sec. 1302. Statement of policy regarding role of peace corps.

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

Inter-American Foundations.

Sec. 1304. Statement of policy regarding role of Public Law 480 Non-Emergency title II and title III programs.

TITLE II—BUILDING DEMOCRACY

Sec. 2001. Findings and statement of policy.

CHAPTER 1—PROMOTING DEMOCRACY

Subchapter A—Countries in Transition

Sec. 2101. Authority.

Sec. 2102. Objectives and types of assistance.

Sec. 2103. Availability of funds; authorities.

Subchapter B—Independent States of the Former Soviet Union

Sec. 2201. Statement of policy.

Sec. 2202. Availability of funds.

Subchapter C—Central and Eastern Europe

Sec. 2301. Statement of policy.

Sec. 2302. Availability of funds.

CHAPTER 2—INFORMATION AND EXCHANGE

Sec. 2401. Policy.

TITLE III—PROMOTING PEACE

Sec. 3001. Statement of policy.

CHAPTER 1—PEACEKEEPING AND RELATED PROGRAMS

Sec. 3101. Statement of policy.

Sec. 3102. General authority.

Sec. 3103. Drawdown authorities.

CHAPTER 2—NONPROLIFERATION AND DISARMAMENT FUND

Sec. 3201. Statement of policy.

Sec. 3202. Provision of assistance.

Sec. 3203. Availability of funds.

Sec. 3204. Drawdown authorities.

CHAPTER 3—REGIONAL PEACE, SECURITY AND DEFENSE COOPERATION

Sec. 3301. Statement of policy.
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Sec. 3302. Authority and purposes.

Sec. 3303. Considerations in providing defense cooperation assistance.

Sec. 3304. Availability of funds.

CHAPTER 4—INTERNATIONAL NARCOTICS TRAFFICKING, TERRORISM AND

CRIME PREVENTION

Sec. 3401. Statement of policy.

Sec. 3402. Authorities.

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

Sec. 3404. Provisions related to law enforcement training.

Sec. 3405. Waiver of certain restrictions on assistance.

Sec. 3406. Availability of funds.

TITLE IV—PROVIDING HUMANITARIAN ASSISTANCE

Sec. 4001. Statement of policy.

CHAPTER 1—REFUGEE ASSISTANCE

Sec. 4101. Statement of policy and purposes.

Sec. 4102. Availability of funds.

CHAPTER 2—DISASTER ASSISTANCE

Sec. 4201. Policy.

Sec. 4202. Authority to provide assistance.

Sec. 4203. Availability of funds.

CHAPTER 3—EMERGENCY FOOD ASSISTANCE

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

TITLE V—PROMOTING GROWTH THROUGH TRADE AND

INVESTMENT

Sec. 5001. Statement of policy.

CHAPTER 1—OVERSEAS PRIVATE INVESTMENT CORPORATION

Sec. 5101. Purpose and policy.

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

Sec. 5103. Enhancing private political risk insurance industry.

Sec. 5104. Issuing authority and reserves.

Sec. 5105. Guidelines and requirements for OPIC support.

CHAPTER 2—TRADE AND DEVELOPMENT AGENCY

Sec. 5201. Purposes.

Sec. 5202. Authority to provide assistance.

Sec. 5203. Availability of funds.

CHAPTER 3—ROLE OF RELATED PROGRAMS

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

Sec. 5302. Statement of policy regarding role of Export-Import Bank.

TITLE VI—ADVANCING DIPLOMACY
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Sec. 6001. Statement of policy.

TITLE VII—SPECIAL AUTHORITIES, RESTRICTIONS ON

ASSISTANCE, AND REPORTS

CHAPTER 1—SPECIAL AUTHORITIES

Sec. 7101. Authority to transfer between accounts.

Sec. 7102. Special waiver authority.

Sec. 7103. Unanticipated contingencies.

Sec. 7104. Assistance for law enforcement agencies.

Sec. 7105. Termination expenses.

Sec. 7106. Exemption of assistance through nongovernmental organizations

from restrictions.

Sec. 7107. Exemption of training activities from prohibitions.

Sec. 7108. Nonapplicability to defense assistance of certain Neutrality Act Provisions.

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

Sec. 7110. Authority to conduct reimbursable programs.

Sec. 7111. Drawdown authority.

Sec. 7112. Interest accruing to nongovernmental organizations.

Sec. 7113. Development education.

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

Sec. 7115. Violations of international humanitarian law.

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

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

CHAPTER 2—RESTRICTIONS ON ASSISTANCE

Sec. 7201. Ineligible countries.

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

Sec. 7203. Family planning activities.

Sec. 7204. Competition with United States exports.

Sec. 7205. Nuclear nonproliferation.

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

Sec. 7207. Assistance for elections.

Sec. 7208. Assignment of personnel.

Sec. 7209. Assistance limited to economic programs.

Sec. 7210. Impact of sustainable development assistance on environment and

natural resources.

CHAPTER 3—REPORTS AND NOTIFICATIONS TO CONGRESS

Sec. 7301. Congressional presentation documents.

Sec. 7302. Human rights policy and reports.

Sec. 7303. International narcotics control report.

Sec. 7304. Annual allocation report.

Sec. 7305. Notification of program changes.

Sec. 7306. Evaluation and monitoring of program performance.

TITLE VIII—GENERAL PROVISIONS

CHAPTER 1—EXERCISE AND COORDINATION OF FUNCTIONS
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Sec. 8101. Delegations by the President.

Sec. 8102. Role of the Secretary of State.

Sec. 8103. The Secretary of Defense.

Sec. 8104. United States Agency for International Development.

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

Sec. 8106. Authority to establish offices abroad.

Sec. 8107. Presidential findings and determinations.

CHAPTER 2—ADMINISTRATIVE AUTHORITIES

Subchapter A—General Authorities

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

Sec. 8202. General authorities.

Sec. 8203. Authorized administrative uses of funds.

Subchapter B—Department of Defense Administrative Authorities

Sec. 8211. Administrative expenses.

Sec. 8212. End use and retransfer assurances.

Sec. 8213. Approval of third country transfers.

Sec. 8214. Exchange training.

CHAPTER 3—SPECIAL REQUIREMENTS AND AUTHORITIES RELATING TO

APPROPRIATIONS AND LOCAL CURRENCIES

Subchapter A—Provisions Relating to Appropriations

Sec. 8301. Requirement for authorization of appropriations.

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

Sec. 8303. Reduction in earmarks.

Sec. 8304. Obligation upon apportionment.

Subchapter B—Local Currencies

Sec. 8311. Use of certain foreign currencies.

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

CHAPTER 4—PROCUREMENT AND DISPOSITION OF ARTICLES

Sec. 8401. Use of private enterprise.

Sec. 8402. Procurement standards and procedures.

Sec. 8403. Shipping on United States vessels.

Sec. 8404. Excess and other available property.

Sec. 8405. Grant transfers of excess defense articles.

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

Sec. 8407. Location of stockpiles.

Sec. 8408. Additions to war reserve stocks.

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

CHAPTER 5—PERSONNEL AND ADMINISTRATIVE EXPENSES

Subchapter A—General

Sec. 8501. Statutory officers in the United States Agency for International

Development.

Sec. 8502. Employment of personnel.

Sec. 8503. Experts, consultants, and retired officers.
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Sec. 8504. Detail of personnel to foreign governments and international organizations.

Sec. 8505. Head of offices abroad.

Sec. 8506. Chairman of OECD Development Assistance Committee.

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

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

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

Sec. 8510. Availability of funds for operating expenses of the inspector general.

Sec. 8511. Availability of funds.

Subchapter B—Overseas Management of Assistance and Sales Programs

Administered Through the Department of Defense

Sec. 8521. Authorized functions.

Sec. 8522. Costs.

Sec. 8523. Role of Chief of Mission.

Subchapter C—Administrative Provisions for the Trade and Development

Agency

Sec. 8531. Director and personnel.

Sec. 8532. Audits.

Sec. 8533. Annual report.

Subchapter D—Administrative Provisions for the Overseas Private Investment

Corporation

Sec. 8541. Stock of the corporation.

Sec. 8542. Organization and management.

Sec. 8543. Income and revenues.

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

Sec. 8545. General provisions and powers.

Sec. 8546. Annual report; maintenance of information.

Sec. 8547. Definitions.

Subchapter E—Definitions and Miscellaneous Provisions

Sec. 8551. Definitions.

Sec. 8552. Activities under other laws not affected.

TITLE IX—TECHNICAL AND CONFORMING PROVISIONS

Sec. 9101. Effective date.

Sec. 9102. Savings provisions.

Sec. 9103. Miscellaneous provisions.

Sec. 9104. Conforming and other amendments.

Sec. 9105. Transition rules for military assistance.

Sec. 9106. Repeal of obsolete provisions.

1 SEC. 3. STATEMENT OF POLICY.

2 STATEMENT OF POLICY.—

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

2 abroad to advance United States economic and polit3 ical interests and to meet the challenges of a new

4 century.

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

6 served by a community of nations that respects indi7 vidual human rights and democracy, resolves con8 flicts peacefully, engages in free and open trade,

9 uses the world’s limited natural resources in a sus10 tainable manner, and in which fundamental human

11 needs are met.

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

13 interest of the United States because without such

14 development, economic, political and security prob15 lems will multiply and generate future costs and

16 burdens; and because overpopulation and environ17 mental destruction threaten to undercut the best ef18 forts of nations to build peace and prosperity.

19 (4) Strengthening democracy and human rights

20 advances United States interests: democracies are

21 conducive to free markets; they are more reliable

22 partners, more receptive to cooperation in environ23 mental protection and other global problems, and

24 less prone to wage war on each other or sponsor ter25 rorism. Strengthening democracy is especially criti-
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1 cal to achieving what must remain an overriding

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

3 in which respect for human rights and fundamental

4 freedoms can flourish.

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

6 to the security of the United States, the United

7 States recognizes the need to maintain and restore

8 peace through arms control, nonproliferation, re9 gional peace processes, and collective defense efforts,

10 and for continued vigilance against a wide-range of

11 increasingly transnational security challenges, in12 cluding international narcotics trafficking, terrorism

13 and other international crime that affect the per14 sonal safety of the people of the United States.

15 (6) United States Government support for ef16 forts to alleviate suffering and help people help

17 themselves reflects the ideals of the people of the

18 United States who have a long and unequaled record

19 of responding quickly and substantially to humani20 tarian crises caused by natural and manmade disas21 ters.

22 (7) An open and growing world trading system

23 will benefit United States workers through expand24 ing global markets and create a more prosperous

25 and secure world. Promotion of broad-based eco-
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1 nomic growth in developing countries is an impor2 tant means for expanding the fastest growing mar3 kets for United States exports.

4 (8) Diplomacy effectively advances United

5 States security and prosperity, meets long-term glob6 al challenges, and builds cooperative arrangements

7 with allies and multilateral organizations.

8 (9) Foreign assistance programs are in the na9 tional interest of the United States, and to meet the

10 diverse challenges of a new century, the United

11 States must command a full range of creative for12 eign policy tools to shape a comprehensive, long13 term approach to promoting the United States na14 tional interests reflected in the objectives of this Act:

15 Promoting Sustainable Development, Building De16 mocracy, Promoting Peace, Providing Humanitarian

17 Assistance, Promoting Growth Through Trade and

18 Investment, and Advancing Diplomacy.

19 TITLE I—SUSTAINABLE DEVELOPMENT

20 CHAPTER 1—SUSTAINABLE DEVELOPMENT

21 AUTHORITIES

22 SEC. 1101. STATEMENT OF POLICY.

23 STATEMENT OF POLICY.—

24 (1) United States prosperity and security in the

25 Twenty-first Century will depend on the successful
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1 pursuit of global sustainable development based on

2 an abiding commitment to democratic, free-market

3 principles.

4 (2) The transnational threats of persistent pov5 erty, global environmental degradation and rapid

6 population growth threaten to undercut the best ef7 forts of the world community to ensure a more pros8 perous and peaceful future. Addressing these threats

9 will require, among other things, an appropriate mix

10 of people-to-people, bilateral and multilateral assist11 ance to complement local action.

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

13 demonstrated a moral commitment to help those in

14 need and to provide assistance that reflects the tra15 ditional humanitarian ideals of the people of the

16 United States.

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

18 environmentally sustainable development can help to

19 prevent humanitarian crises and to reduce the vul20 nerability of people, particularly children, to natural

21 and manmade disasters, which are costly in terms of

22 both human life and financial resources.

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

24 bilateral and multilateral sustainable development

25 programs must, therefore, be targeted on broad-
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1 based, economic growth that reduces hunger and

2 poverty, protects the environment, enhances human

3 capabilities, upholds democratic values, and improves

4 the quality of life for current generations while pre5 serving that opportunity for future generations

6 through, among other things, helping the poor ma7 jority of women, men, and children in developing

8 countries participate in the development process.

9 (6) Sustainable development efforts will be sig10 nificantly enhanced through the broad participation

11 and active engagement of the United States-based

12 private sector, including universities, labor unions,

13 and private voluntary organizations, and the people

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

15 their communities, in shaping development policies

16 and in defining, implementing, and evaluating pro17 grams and projects.

18 (7) The ultimate measure of success of pro19 grams under this title is to reach a point where im20 provements in the quality of life and the environ21 ment are such that assistance is no longer necessary

22 and can be replaced by new forms of diplomacy, co23 operation and commerce.
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1 SEC. 1102. POLICIES CONCERNING SUSTAINABLE DEVELOP2 MENT PROGRAMS.

3 (a) PURPOSES OF SUSTAINABLE DEVELOPMENT

4 PROGRAMS.—The promotion of sustainable development is

5 in the long-term interests of the United States. Sustain6 able development signifies broad-based, economic growth

7 which protects the environment, enhances human capabili8 ties, upholds democratic values, and improves the quality

9 of life for current generations while preserving that oppor10 tunity for future generations. The objectives of sustainable

11 development are pursued by supporting the self-help ef12 forts of people in developing countries to implement sound

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

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

15 accountable indigenous political, economic and social insti16 tutions.

17 (b) SUSTAINABLE DEVELOPMENT OBJECTIVES.—

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

19 achieved through a balanced, participatory and com20 prehensive cooperation program targeted on the following

21 four inter-dependent objectives—

22 (1) ENCOURAGING BROAD-BASED ECONOMIC

23 GROWTH.—

24 (A) RATIONALE.—Broad-based economic

25 growth signifies equitable and inclusive eco26 nomic expansion in developing countries. Such
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1 growth is in the economic, political, and strate2 gic interests of the United States because it

3 permits countries to progress toward economic

4 self-reliance, improve the living standards of

5 their citizens, reduce the incidence of poverty,

6 promote food security and nutritional well7 being, slow population growth, and increase op8 portunities for mutually beneficial international

9 trade and investment. Broadly-based economic

10 progress also improves the prospects for the

11 spread of democracy and political pluralism.

12 Economic stagnation or narrowly based-eco13 nomic growth may fuel political instability and

14 threaten international security and cooperation.

15 (B) OBJECTIVE.—Broadly-based, sustain16 able growth requires, in addition to sound eco17 nomic policies—

18 (i) investments in people, particularly

19 poor people, in the form of health, nutri20 tion, education, shelter and other critical

21 social services;

22 (ii) a broader role for and access to

23 markets for both women and men through

24 improved policies that protect and advance

25 economic rights for all citizens without re-
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1 gard to gender, race, religion, language or

2 social status, increase self-reliance in meet3 ing basic needs, and raise real incomes for

4 poor people;

5 (iii) stronger and more accountable

6 public and private institutions at the local

7 and national level, and sound public invest8 ments;

9 (iv) enhanced food security, including

10 improved access to safe food and adequate

11 nutrition through sustainable improve12 ments in agriculture and post-harvest food

13 preservation;

14 (v) sound debt management, including

15 responsible relief as appropriate;

16 (vi) investments in people’s productive

17 capabilities, including measures to upgrade

18 people’s technical and managerial knowl19 edge and skills; and

20 (vii) measures to ensure that the poor

21 have access to productive resources, includ22 ing affordable and resource-conserving

23 technologies, technical as well as market24 related information, and credit, especially

25 for small farms, small and micro-enter-
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1 prises, and the poorest self-employed sec2 tor, and otherwise, fully participate in the

3 benefits of growth in employment and

4 income.

5 (2) PROTECTING THE GLOBAL ENVIRON6 MENT.—

7 (A) RATIONALE.—The economic and social

8 well-being and the security of the United

9 States, indeed the health of our citizens, depend

10 critically on the global environment and phys11 ical resource base. Consumption patterns, sys12 tems of industrial and agricultural production,

13 demographic trends, and use of natural re14 sources directly affect the sustainability of long15 term development and growth, and of the eco16 system. Development that does not take ac17 count of its environmental consequences will not

18 be economically sustainable in the long run. Im19 proved resource management is a critical ele20 ment of a balanced pattern of development.

21 Both developed and developing countries share

22 responsibility to present and future generations

23 for the rational and sustainable management of

24 natural resources and for environmental protec25 tion. Developing countries not only suffer from
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1 the consequences of environmental degradation,

2 but also contribute to that degradation as they

3 struggle to meet the basic needs of their people.

4 Therefore, environmental sustainability cannot

5 be secured without reducing poverty, nor can

6 poverty be eliminated without sustainable man7 agement of the natural resource base.

8 (B) OBJECTIVE.—Sustainable development

9 programs authorized by this chapter should ad10 dress the root causes of environmental harm,

11 promote environmentally-sound patterns of

12 growth and support improved management of

13 natural resources and protection of the environ14 ment. These activities shall include efforts to

15 address urgent global environmental challenges,

16 including the loss of biological diversity and

17 global climate change, as well as efforts to ad18 dress significant environmental problems within

19 countries and regions. Such efforts shall seek to

20 promote sound environmental policies and prac21 tices which simultaneously enhance long-term

22 economic growth.

23 (3) SUPPORTING DEMOCRATIC PARTICIPA24 TION.—
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1 (A) RATIONALE.—It is in the national in2 terest of the United States and in keeping with

3 our democratic traditions to support democratic

4 aspirations and values, foster the spread of en5 during democratic institutions, and encourage

6 universal respect for civil and human rights.

7 The establishment of local governance, civil so8 ciety and democratic institutions, including

9 business associations and labor unions, is an es10 sential element of the ability of nations to sus11 tain development efforts.

12 (B) OBJECTIVE.—Sustainable development

13 programs must help to build and strengthen or14 ganizations and institutions that foster partici15 pation in economic and political decision-mak16 ing at the local and national levels. Such pro17 grams shall help promote: respect for human

18 rights and the rule of law; an expanding role

19 for nongovernmental and citizens organizations

20 and their capacity to effectively participate in

21 political and economic decision-making and to

22 implement development programs; means to en23 hance citizen access to public information; the

24 ability of all citizens to choose freely their gov25 ernment and to hold that government account-
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1 able for its actions; efforts which advance legal,

2 social, and economic equality for women, work3 ers, and minorities; respect for the rights of

4 women, workers, and minorities; and principles

5 of tolerance among and within religious and

6 ethnic groups.

7 (4) STABILIZING WORLD POPULATION

8 GROWTH.—

9 (A) RATIONALE.—Excessive population

10 growth rates, among other factors, aggravates

11 poor health, perpetuates poverty, and inhibits

12 saving and investment, particularly investments

13 in people in the form of basic health, child sur14 vival, and education services. Continued exces15 sive growth in world population rates will un16 dercut sustainable development efforts.

17 Unsustainable population growth is directly tied

18 to degradation of the natural resource base and

19 the environment and contributes to economic

20 stagnation and political instability. The prob21 lems associated with excessive population

22 growth are interrelated with economic and so23 cial inequities, particularly the low status of

24 women, and patterns of resource consumption.

25 Excessive population growth impedes develop-
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1 ment and retards progress on global issues of

2 direct concern to the United States.

3 (B) OBJECTIVE.—The primary objectives

4 are: to reduce population growth to rates that

5 are consistent with sustainable, broadly-based

6 development, to provide women and men with

7 the means to freely and responsibly choose the

8 number and spacing of their children, and to

9 contribute to improved reproductive health.

10 This calls for a focus on enhanced access to and

11 quality of voluntary family planning services

12 and reproductive health care. This also calls for

13 strong and sustained programs in child survival

14 and the prevention of HIV/AIDS. Improvement

15 of female education and raising the economic

16 and social status of women, carried out within

17 the context of encouraging broad-based eco18 nomic growth, are particularly important com19 plementary activities that contribute to these

20 objectives.

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

22 section, sustainable development programs authorized by

23 this chapter shall be carried out in accordance with the

24 following principles:

25 (1) POPULAR PARTICIPATION.—
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1 (A) IN GENERAL.—Sustainable develop2 ment depends for its success on the

3 empowerment of people to make political and

4 economic decisions. Participation, in the form of

5 active involvement of program participants in

6 the identification, design, implementation, and

7 evaluation of development programs is critical

8 to the success of those programs. Therefore, as9 sistance under this chapter should incorporate

10 the local-level perspectives of all participants,

11 especially the rural and urban poor and women,

12 in the identification, design, implementation,

13 and evaluation of projects, programs, and devel14 opment policies, as well as in the design of

15 country assistance strategies and overall strate16 gic objectives.

17 (B) ROLE OF WOMEN IN THE DEVELOP18 MENT PROCESS.—The expansion of women’s

19 opportunities is essential to reduce poverty,

20 lower population growth and bring about effec21 tive and sustainable development. The active in22 volvement of women in economic, political, and

23 social activities is necessary to promote democ24 racy and to assure sustainable development.

25 Women, including local and indigenous women’s
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1 groups, must be involved as agents as well as

2 beneficiaries of change in all aspects of the de3 velopment process. Women, therefore, should be

4 integrally involved in policies, programs, and

5 projects undertaken to achieve the objectives

6 and purposes of this section.

7 (C) NONGOVERNMENTAL ORGANIZA8 TIONS.—For development to be broad-based

9 and sustainable, it is imperative to consult with,

10 and fully engage in the policy and program

11 planning process, nongovernmental organiza12 tions representatives of, and knowledgeable

13 about, local people and their interests. Non14 governmental organizations, including private

15 voluntary organizations, cooperatives and credit

16 unions, labor unions, women’s groups, and in17 digenous local organizations, should be fully uti18 lized in meeting the objectives and purposes of

19 this section through, among other things, regu20 lar involvement in the formulation of develop21 ment strategies for countries and sectors.

22 (D) UTILIZATION OF UNITED STATES IN23 STITUTIONAL CAPABILITIES.—Programs under24 taken to achieve the sustainable development
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1 objectives of this chapter should recognize and

2 take advantage of—

3 (i) United States capabilities in

4 science and technology;

5 (ii) access to education and training

6 in United States colleges, universities, and

7 technical training facilities; and

8 (iii) United States public sector exper9 tise.

10 This may be encouraged through, among other

11 things, long-term collaboration between public

12 and private institutions of science, technology,

13 and education in the United States and devel14 oping countries.

15 (2) MANAGING FOR RESULTS.—

16 (A) IN GENERAL.—Assistance cannot sub17 stitute for a developing country’s own efforts to

18 improve the lives of its people, nor can the

19 United States afford to provide assistance

20 which does not yield enduring results in terms

21 of improving the lives of the poor, encourage a

22 stable and prosperous global order, and contrib23 ute to the interests of the people of the United

24 States.
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1 (B) COUNTRY REQUIREMENTS.—Sustain2 able development programs under this chapter

3 shall be concentrated in countries that have a

4 demonstrated need for such programs, that will

5 make effective use of such programs, and that

6 have a commitment to achieving clear develop7 ment objectives. Indicators of such countries in8 clude the extent to which: there is a high inci9 dence of hunger and poverty, there is an ena10 bling environment in which government econom11 ics and sound policies are conducive to accom12 plishing the sustainable development objectives

13 contained in subsection (b) of this section, gov14 ernment decision-making is transparent, gov15 ernment institutions are accountable to the

16 public, an independent and honest judiciary is

17 maintained, local government bodies are demo18 cratically elected, and political parties, non19 governmental organizations and the media oper20 ate without undue constraints.

21 (C) MEASURING RESULTS.—The United

22 States assistance program under this chapter

23 will assess the commitment and progress of

24 countries in moving toward the sustainable de25 velopment objectives contained in subsection (b)
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1 of this section and the contributions made to

2 this progress by assistance provided under this

3 chapter. The United States will establish open

4 and transparent systems to monitor these re5 sults, and will be prepared to shift scarce re6 sources from unproductive programs, sectors or

7 countries to those which have demonstrated the

8 commitment and ability to use them effectively.

9 (3) INTERNATIONAL COORDINATION.—The

10 United States shall seek wherever possible to coordi11 nate its sustainable development program with other

12 bilateral and multilateral donors, as well as with the

13 private sector, in order to maximize the effectiveness

14 of resources allocated to sustainable development.

15 SEC. 1103 VOLUNTARY COOPERATION IN DEVELOPMENT.

16 (a) STATEMENT OF POLICY.—

17 (1) The sustained participation of United

18 States private voluntary organizations, labor unions,

19 cooperatives, and credit unions that are engaged in

20 activities that are relevant to the development needs

21 of developing countries serves as an important

22 means of improving the lives of the poor in those

23 countries and enhances the likelihood that the goals

24 of this title will be attained.
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1 (2) The sustained participation of United

2 States and overseas cooperatives and credit unions

3 provides an opportunity for people in developing

4 countries to participate directly in democratic deci5 sionmaking for their economic and social benefit

6 through ownership and control of business enter7 prises and through the mobilization of local capital

8 and saving. These organizations should be utilized in

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

10 community-based development.

11 (3) Similarly, sustained participation of United

12 States colleges and universities in the economic de13 velopment programs of the developing countries and

14 the building of indigenous university systems that

15 support the educational, research, and service needs

16 of their societies is vital to their achieving sustain17 able economic growth and open democratic political

18 systems and, at the same time, supports the inter19 nationalization of United States educational institu20 tions by strengthening their faculty and the pro21 grams available to their students.

22 (4) Such sustained participation would be en23 hanced through provisions within the United States

24 Agency for International Development to provide

25 such organizations and institutions with the oppor-
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1 tunity to participate in the planning, development

2 and implementation and evaluation of programs that

3 involve those organizations and institutions.

4 (b) PARTNERSHIP RELATIONSHIP.—The President is

5 encouraged to establish a formal, effective, and continuing

6 partnership relationship with private voluntary organiza7 tions, cooperatives, and credit unions which have experi8 ence in working in developing countries, and with United

9 States colleges and universities, with the objective of en10 hancing attainment of the goals set forth in this title. Indi11 viduals who are from such organizations and institutions

12 and who have expertise and administrative experience in

13 programs relevant to the development needs of developing

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

15 bring their expertise to bear on those objectives.

16 (c) AMERICAN SCHOOLS AND HOSPITALS.—The

17 President is authorized to use funds made available to

18 carry out the provisions of this Act for support of—

19 (1) schools and libraries, outside the United

20 States, that are sponsored by United States citizens

21 and serve as study and demonstration centers for

22 ideas and practices of the United States, and

23 (2) hospital centers for medical education and

24 research, outside the United States, that are spon25 sored by United States citizens,
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1 where such support is in furtherance of the objectives of

2 this title.

3 SEC. 1104. MICROENTERPRISE AND OTHER CREDIT PRO4 GRAMS.

5 Credit resources can be a cost effective tool in foster6 ing sustainable development where borrowers and projects

7 are credit worth and where the costs of such credit assist8 ance are capable of being reasonably estimated. Subject

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

10 assistance for credit programs in furtherance of the sus11 tainable objectives, as follows:

12 (1) MICRO- AND SMALL-ENTERPRISE DEVELOP13 MENT.—To promote the full participation in a coun14 try’s economy by all members of society through in15 creased access to formal financial markets.

16 (2) SHELTER, URBAN DEVELOPMENT, AND EN17 VIRONMENTAL INFRASTRUCTURE.—To address

18 needs and shelter, urban services and facilities, and

19 urban environmental management systems, including

20 water treatment and waste disposal systems.

21 (3) OTHER PROJECTS AND PROGRAMS.—To

22 carry out other purposes of this chapter that can be

23 met with credit resources.
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1 SEC. 1105. AVAILABILITY OF FUNDS.

2 The President is authorized to carry out programs

3 in support of the sustainable development objectives of

4 this chapter. Funds shall be available to carry out the pro5 visions of this chapter as authorized and appropriated to

6 the President each fiscal year.

7 CHAPTER 2—DEVELOPMENT FUND FOR AFRICA

8 SEC. 1201. SUSTAINABLE DEVELOPMENT PROGRAMS AND

9 SUB-SAHARAN AFRICA.

10 (a) STATEMENT OF POLICY.—

11 (1) Sub-Saharan Africa faces serious obstacles

12 to sustainable development, including high levels of

13 poverty, high levels of disease burden especially trop14 ical diseases and HIV/AIDS, environmental degrada15 tion, high population growth rates and, in some

16 countries, civil conflicts that threaten the welfare of

17 millions of people.

18 (2) Sub-Saharan Africa is also undergoing sig19 nificant but fragile economic, social, and political

20 change, including economic reforms and transition to

21 democracies, which hold promise of progress in sus22 tainable development.

23 (3) Sub-Saharan Africa possesses numerous

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

25 become increasingly threatened in the absence of

26 sustainable development.
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1 (4) The challenges facing sub-Saharan Africa

2 require a steady, long-term approach to develop3 ment, and therefore the purpose of the Development

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

5 majority of men and women in sub-Saharan Africa

6 to participate in a process of long-term development

7 through economic growth that is equitable,

8 participatory, environmentally sustainable and self9 reliant.

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

11 effective and sustainable, assisted development

12 projects and programs must be based on local con13 sultation and involvement.

14 (6) By addressing the broad sustainable devel15 opment objectives of encouraging broad-based eco16 nomic growth, reducing excessive population growth

17 rates, preserving the environment, and strengthening

18 democratic governance and expanding popular par19 ticipation, programs for sub-Saharan Africa can di20 rectly improve the lives of the poor majority of Afri21 cans.

22 (b) LOCAL PERSPECTIVES.—In carrying out sustain23 able development programs for sub-Saharan Africa, the

24 local-level perspectives of the rural and urban poor, includ25 ing women, in sub-Saharan Africa shall be taken into ac-
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1 count during the planning process for project and program

2 assistance.

3 (c) AVAILABILITY OF FUNDS.—Funds appropriated

4 to carry out the provisions of chapter 1 for sustainable

5 development programs may be made available, in accord6 ance with the provisions of that chapter, to carry out such

7 programs for sub-Saharan Africa.

8 (d) RELATIONSHIP TO CERTAIN PROVISIONS OF

9 LAW.—Assistance may be furnished for activities under

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

11 8402 of this Act, and any similar provisions of law.

12 CHAPTER 3—ROLE OF RELATED PROGRAMS

13 SEC. 1301. STATEMENT OF POLICY REGARDING ROLE OF

14 INTERNATIONAL FINANCIAL INSTITUTIONS.

15 (a) By fostering sound macroeconomic policies, the

16 international financial institutions—

17 (1) further the interest of the United States in

18 a free, open, and stable international economic and

19 financial system; and

20 (2) encourage developing countries to partici21 pate more fully in the world economy, thus expand22 ing the opportunities for United States exports and

23 investment.

24 (b) At the same time, structural and sectoral level

25 reforms supported by the international financial institu-
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1 tions, and programs aimed at addressing such problems

2 as basic education, environmental protection, health, and

3 population, should reinforce the goals of United States

4 sustainable development programs.

5 (c) The increasing coordination of the activities of the

6 international financial institutions with those of bilateral

7 assistance programs provides an opportunity for those in8 stitutions to be informed of local perspectives, priorities,

9 and capabilities best gained through decentralized, con10 sultative processes.

11 (d) The United States should give priority to develop12 ing an international consensus on good governance, ac13 countability and transparency, the rule of law, and public

14 participation as central to the development process.

15 (e) The ability of international financial institutions

16 to serve these ends depends on maintenance of strong

17 United States influence in them and fulfillment of United

18 States financial commitments.

19 SEC. 1302. STATEMENT OF POLICY REGARDING ROLE OF

20 PEACE CORPS.

21 (a) The purposes of the Peace Corps, as set forth in

22 the Peace Corps Act, are consistent with a fundamental

23 objective of this Act—to broaden the participation of peo24 ple in developing countries in the economic and social life

25 of their countries.
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1 (b) The benefits provided by both the sustainable de2 velopment programs authorized by this Act and programs

3 authorized by the Peace Corps Act will be enhanced by

4 collaboration that, while not infringing on the traditional

5 autonomy of the Peace Corps, recognizes that the ability

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

7 people of developing countries at the grassroots level com8 plements the programs authorized by this Act.

9 SEC. 1303. STATEMENT OF POLICY REGARDING ROLE OF

10 AFRICAN DEVELOPMENT AND INTER-AMER11 ICAN FOUNDATIONS.

12 (a) The purposes of the Inter-American Foundation

13 and the African Development Foundation as set forth in

14 section 401(b) and 504 of their respective Acts are con15 sistent with fundamental premises of sustainable develop16 ment programs, such as the need to expand the participa17 tion of individuals in social and economic institutions so

18 that they have a stake in the resolution of social and eco19 nomic issues.

20 (b) Both Foundations have demonstrated that sus21 tainable development may be fostered at the local level by

22 responding to the expressed needs of the people who live

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

24 the means to carry out their own development initiatives.
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1 (c) By working at the grassroots level to enhance in2 comes, expand social benefits, and encourage increased

3 participation, the programs of the African Development

4 Foundation and the Inter-American Foundation, while

5 independent, are part of an overall framework of support

6 for developing countries which aims to see sustainable de7 velopment occur at the local and the national levels.

8 SEC. 1304. STATEMENT OF POLICY REGARDING ROLE OF

9 PUBLIC LAW 480 NON-EMERGENCY TITLE II

10 AND TITLE III PROGRAMS.

11 STATEMENT OF POLICY.—

12 (1) The use of United States agricultural com13 modities through the Public Law 480 non-emergency

14 title II program, serves the dual purposes of sup15 porting the efforts of poor countries to meet their

16 need for additional food resources while at the same

17 time promoting the long-term sustainable develop18 ment efforts of those countries.

19 (2) By giving priority through the Public Law

20 480 title III program to those least developed, food

21 deficit countries with high levels of malnutrition that

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

23 sustainable development and a demonstrated com24 mitment and capacity to use food assistance effec25 tively, these programs show a consistency of purpose
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1 with the sustainable development programs author2 ized by this Act.

3 TITLE II—BUILDING DEMOCRACY

4 SEC. 2001. FINDINGS AND STATEMENT OF POLICY.

5 (a) FINDINGS.—

6 (1) There is a growing worldwide movement to7 ward more open, just and democratic societies. This

8 trend is essential to achieving the United States ulti9 mate objective of worldwide respect for human rights

10 and fundamental freedoms without distinction as to

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

12 this trend holds great promise for promoting the

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

14 and general welfare of the United States.

15 (2) Expansion of democratic values and systems

16 must be promoted through bilateral, multilateral,

17 and people-to-people programs with the sustained

18 assistance and moral support of the international

19 community, and of the established democracies in

20 particular.

21 (3) Democratic development takes time to take

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

23 a need for the international community to assist in

24 the consolidation of democratic values, practices and
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1 institutions to prevent the reversal of democratic

2 trends.

3 (4) Frequently, newly democratizing countries

4 are beset by ethnic conflicts, resurgent nationalism

5 and anti-democratic movements, and political reac6 tion to economic reform. A growing number of coun7 tries seek to end years of protracted internal conflict

8 through the implementation of internationally-sanc9 tioned political settlements, designed to create a

10 democratic form of governance, a durable peace, and

11 the institutional requisites for long-term develop12 ment.

13 (5) Furthermore, democratic institutions in

14 countries where democracy has taken root can be

15 similarly threatened by regional and civil unrest, and

16 other threats to international peace and security.

17 (6) Narcotics trafficking, terrorism and other

18 forms of international crime—and the corruption

19 that they engender of political, administrative and

20 other democratic institutions—pose similar threats

21 to such countries, and efforts to combat these

22 scourges need to be integrated into and coordinated

23 with broader efforts to develop and consolidate

24 democratic institutions.
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1 (7) To advance, countries in such circumstances

2 may require international assistance not normally in3 cluded in humanitarian relief programs, peacekeep4 ing operations, or long-term development programs,

5 and the international community needs to be able to

6 respond swiftly to meet such needs.

7 (8) Failure by the United States to respond ef8 fectively to threats to democracy and human rights

9 abroad could risk important United States interests,

10 jeopardize substantial savings in United States de11 fense that a more democratic and predictable world

12 will bring, imperil United States investments and

13 economic reforms that will result in trade and eco14 nomic benefits to the United States, and heighten

15 the risk that many transitions might ultimately fail

16 and generate costly humanitarian emergencies.

17 (9) Accordingly, the United States must have

18 the capacity to respond rapidly, effectively, and in

19 an integrated fashion to the new opportunities and

20 challenges associated with democratic development.

21 (b) STATEMENT OF POLICY.—

22 (1) In addition to promoting strong democratic

23 societies as an integral part of the sustainable devel24 opment programs authorized under title I of this

25 Act, it should be the policy of the United States to
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1 assist countries making the transition to democracy,

2 and countries where democratic gains are threat3 ened, by providing timely assistance in building ef4 fective democratic institutions and free market

5 economies.

6 (2) At the same time, the promotion of democ7 racy is the responsibility of the global community.

8 The United States should give priority to working

9 bilaterally and multilaterally to ensure commitment

10 of substantial resources toward the promotion of de11 mocracy in transitional countries, and to coordinat12 ing policies and programs among institutions and

13 donors.

14 CHAPTER 1—PROMOTING DEMOCRACY

15 Subchapter A—Countries in Transition

16 SEC. 2101. AUTHORITY.

17 The President may provide assistance under this sub18 chapter for countries—

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

20 process of emerging as democratic societies; or

21 (2) that have recently emerged or are emerging

22 from civil strife and either have a democratically23 elected government or are making progress toward

24 developing a democratic form of government; or
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1 (3) where democratic progress or institutions

2 are threatened.

3 SEC. 2102. OBJECTIVES AND TYPES OF ASSISTANCE.

4 (a) OBJECTIVES.—Programs under this subchapter

5 should be designed to facilitate the worldwide trend to6 ward more open, just and democratic societies, and may

7 include programs to—

8 (1) promote the development of functioning

9 democratic institutions and political pluralism, in10 cluding programs to facilitate—

11 (A) establishment of fully democratic and

12 representative political systems based on free

13 and fair elections that permit multi-party par14 ticipation;

15 (B) protection of basic human rights and

16 fundamental liberties and individual freedoms

17 including freedom of speech, religion and asso18 ciation, access to information and public par19 ticipation in decisionmaking;

20 (C) development of legal, legislative, con21 stitutional, electoral, journalistic, educational,

22 and other institutions, both governmental and

23 nongovernmental which are essential elements

24 of civil society in free pluralistic societies;
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1 (D) establishment and professional devel2 opment of non-partisan military, security and

3 police forces, accountable to civil authorities;

4 (E) development of intercommunal conflict

5 resolution mechanisms; and

6 (F) strengthening of policy making skills

7 and accountability of democratic governments;

8 (2) address political, economic and humani9 tarian needs that arise in connection with transi10 tions, or that if unmet undermine or threaten demo11 cratic institutions; and

12 (3) help meet security challenges on a transi13 tional basis that threaten to impede or reverse demo14 cratic reforms or institutions.

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

16 law enforcement forces under this subchapter—

17 (1) to orient militaries or law enforcement

18 agencies to their respective roles in a democratic

19 order, including through training, contacts with

20 counterparts in established democracies, and other

21 programs designed to enhance respect for human

22 rights and understanding of principles of civilian

23 control in a democratic society;

24 (2) to enhance the practical accountability of

25 law enforcement agencies to civil justice institutions;
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1 (3) to promote demilitarization of society,

2 through programs aimed at demobilization, down3 sizing, and rationalization and professionalization of

4 military structures;

5 (4) to the extent otherwise permitted under sec6 tion 7104 of this Act; or

7 (5) to meet the challenges described in sub8 section (a)(3).

9 In providing assistance under this subsection the Presi10 dent shall consider the extent to which the recipients dem11 onstrate a commitment to respect human rights and fun12 damental freedoms.

13 SEC. 2103. AVAILABILITY OF FUNDS; AUTHORITIES.

14 (a) AVAILABILITY OF FUNDS.—Funds shall be avail15 able to carry out the provisions of this subchapter as au16 thorized and appropriated to the President each fiscal

17 year. The amount of funds that are authorized and appro18 priated to carry out the provisions of this subchapter that

19 may be made available for assistance administered

20 through the Department of Defense shall be authorized

21 and appropriated separately.

22 (b) AUTHORITY.—Assistance may be provided under

23 this subchapter notwithstanding any other provision of

24 law.
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1 Subchapter B—Independent States of the Former

2 Soviet Union

3 SEC. 2201. STATEMENT OF POLICY.

4 (a) The international community has an unparalleled

5 stake in the success of the democratic and economic trans6 formation taking place in the independent states of the

7 former Soviet Union, and the integration of those states

8 into the community of peaceful and democratic nations.

9 (b) United States programs that facilitate this proc10 ess constitute and should be seen as critical investments

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

12 the independent states share an interest in ensuring that

13 assistance is focused on programs that will have lasting

14 effect, that support an ongoing process which can survive

15 the buffeting of political and economic setbacks, and that

16 lay a broad foundation for reform that is not dependent

17 on the success or failure of particular initiatives.

18 (c) United States leadership in supporting reform in

19 the independent states will remain critical. At the same

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

21 international institutions to ensure that international sup22 port for reform in these states is coordinated, and that

23 the costs of programs to support the ongoing trans24 formation is allocated fairly among those with a shared

25 stake in its success.
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1 (d) The establishment and development of democratic

2 institutions and market economies in the independent

3 states of the former Soviet Union present among the most

4 important foreign policy challenges of our times. Failure

5 to meet these challenges could threaten United States na6 tional security interests and jeopardize substantial savings

7 in United States defense. Success will generate trade and

8 investment opportunities for American businesses from

9 which the United States stands to reap enduring employ10 ment and other economic benefits, and the prospects of

11 a more peaceful and stable world having lasting benefits

12 for all.

13 SEC. 2202. AVAILABILITY OF FUNDS.

14 Funds shall be available to carry out the provisions

15 of this subchapter as authorized and appropriated to the

16 President each fiscal year. Such funds may be made avail17 able on the same basis as funds authorized to be appro18 priated for fiscal year 1993 under chapter 11 of part I

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

20 be considered to be assistance under this Act for purposes

21 of making available the administrative authorities con22 tained in this Act.
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1 Subchapter C—Central and Eastern Europe

2 SEC. 2301. STATEMENT OF POLICY.

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

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

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

10 were established under the Support for East European

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

12 objectives, the United States should support economic and

13 political reform in Central and East European countries

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

16 under the authorities of this Act to such countries that

17 are taking steps toward—

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

21 (2) economic reform, based on progress toward

22 a market-oriented economy;

23 (3) respect for internationally recognized

24 human rights, and the protection of fundamental

25 civil liberties based on progress toward democratic

26 and independent judicial institutions; and
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1 (4) a willingness to build, or continue, a con2 structive and lasting relationship with the United

3 States based on shared values and principles.

4 SEC. 2302. AVAILABILITY OF FUNDS.

5 Funds shall be available to carry out the provisions

6 of this subchapter as authorized and appropriated to the

7 President each fiscal year. Such funds shall be considered

8 to be assistance under this Act for purposes of making

9 available the administrative authorities contained in this

10 Act.

11 CHAPTER 2—INFORMATION AND EXCHANGE

12 SEC. 2401. POLICY.

13 (a) IN GENERAL.—The fostering of democratic soci14 eties, values, and institutions abroad is crucial to the fu15 ture security and prosperity of the United States. Infor16 mation and exchange programs carried out by the United

17 States are central to fostering such democratic values and

18 encouraging the development of democratic institutions

19 and processes around the world.

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

21 Programs administered by the United States Information

22 Agency should support democratization abroad through

23 the communication of knowledge and the exchange of peo24 ple, ideas and values, and should promote, through in25 country personal contacts, exchanges, training programs,
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1 and informational activities, a better understanding of the

2 nature of democracy in such areas as—

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

4 democracy and civil society;

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

6 (3) respect for the rule of law;

7 (4) the free flow of information;

8 (5) free and fair elections;

9 (6) responsible and representive local govern10 ment; and

11 (7) democratic reform of education.

12 TITLE III—PROMOTING PEACE

13 SEC. 3001. STATEMENT OF POLICY.

14 (a) For over forty years the specter of international

15 communism weighed heavily on United States economic

16 and military assistance priorities. The collapse of com17 munism and the end of the Cold War have opened up new

18 possibilities for international cooperation to contain and,

19 more importantly, to prevent conflict, thereby creating the

20 opportunity for realizing international peace and security.

21 (b) Political destabilization, prompted in part by the

22 demise of communism, has also unleashed long suppressed

23 internal and regional conflict in Eastern Europe, the

24 former Soviet Union, and elsewhere. At the same time,

25 the proliferation of weapons of mass destruction and tech-
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1 nologies pose unrelenting challenges for peace and security

2 that the international community cannot afford to ignore.

3 (c) In addition, the transnational scourges of narcot4 ics trafficking, terrorism and other international criminal

5 activity threaten at the most fundamental level the ability

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

7 (d) To address such problems during this historic

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

9 bilateral and multilateral assistance under this title will

10 be a necessary complement to effective diplomacy and

11 international efforts to secure lasting peace. Failure to in12 vest at this time in programs designed to prevent conflict,

13 and to promote international peace and security, threatens

14 the prospects for substantial savings in United States de15 fense and other expenditures in the future.

16 CHAPTER 1—PEACEKEEPING AND RELATED

17 PROGRAMS

18 SEC. 3101. STATEMENT OF POLICY.

19 (a) In the wake of the Cold War, serious threats per20 sist to the security and interests of the United States, and

21 a range of conflicts within and among states and other

22 humanitarian disasters continue to threaten international

23 peace and security, undermine the stability of regions in

24 the world, generate disruptive flows of refugees, and cause

25 human suffering on a large scale. When the interests of
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1 the United States are at stake, including its treaty obliga2 tions and humanitarian concerns, it will rely on a variety

3 of unilateral, bilateral, and multilateral means to respond

4 to such conflicts and crises.

5 (b) Diplomacy by our Nation and others can prevent

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

7 peace that could impose higher costs and burdens on the

8 United States if left unaddressed. It is therefore the inten9 tion of the Congress through United States leadership to

10 promote the security, welfare, and other foreign policy

11 goals of the United States by supporting timely, preventive

12 diplomatic efforts, unilaterally and in conjunction with

13 other nations.

14 (c) The United States reaffirms its support for ap15 propriate peace operations when they advance United

16 States interests, including the fulfillment of United States

17 treaty obligations, or foreign policy goals, such as encour18 aging the spread of democratic and market institutions,

19 and addressing grave humanitarian crises. A decision to

20 support or participate in such operations should always

21 be based on an assessment by the United States Govern22 ment as to whether United States interests are best served

23 by doing so.

24 SEC. 3102. GENERAL AUTHORITY.

25 (a) IN GENERAL.—The President is authorized—
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1 (1) to pay assessed and other contributions and

2 expenses of international peacekeeping activities and

3 other international activities directed to the mainte4 nance or restoration of international peace and secu5 rity, including the provision of related humanitarian

6 relief; and

7 (2) to furnish assistance to foreign countries,

8 and international and regional organizations and ar9 rangements for peacekeeping, international activities

10 directed to the restoration or maintenance of inter11 national peace and security and other programs car12 ried out in furtherance of the national interest of the

13 United States.

14 (b) AVAILABILITY OF FUNDS.—

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

16 provisions of subsection (a)(1) as authorized and ap17 propriated to the President each fiscal year.

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

19 provisions of subsection (a)(2) as authorized and ap20 propriated to the President each fiscal year.

21 (3) If the President determines and reports to

22 Congress that doing so would promote the purposes

23 of this chapter, funds made available under either

24 paragraph (1) or (2) may be transferred to, and

25 consolidated with, funds available for the other such
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1 paragraph, and may be used for any of the purposes

2 for which funds under that paragraph may be used.

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

4 this chapter may be made available notwithstanding any

5 provisions of law that restrict assistance to foreign coun6 tries.

7 SEC. 3103. DRAWDOWN AUTHORITIES.

8 (a) UNFORESEEN EMERGENCIES.—If the President

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

10 the provision of assistance under this chapter in amounts

11 in excess of funds otherwise available for such purposes

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

13 the President may direct the drawdown of articles and

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

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

16 agency of the United States Government.

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

18 appropriated to the President such sums as may be nec19 essary to reimburse the applicable appropriation, fund, or

20 account for articles and services provided under this sec21 tion.
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1 CHAPTER 2—NONPROLIFERATION AND

2 DISARMAMENT FUND

3 SEC. 3201. STATEMENT OF POLICY.

4 One of the principal threats to the security of the

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

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

10 proliferation by supporting and enhancing bilateral and

11 multilateral efforts to—

12 (1) establish effective controls on destabilizing

13 weapon systems and materials;

14 (2) dismantle existing systems;

15 (3) create verifiable safeguards and regimes and

16 effective export controls on related technologies and

17 materials; and

18 (4) increase the effectiveness and help ensure

19 the implementation of existing nonproliferation and

20 arms control and agreements, particularly in the

21 states of the former Soviet Union and in Central

22 and Eastern Europe.

23 SEC. 3202. PROVISION OF ASSISTANCE.

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

3 their delivery systems, and conventional weapons;

4 (2) supporting bilateral and multilateral efforts

5 to halt the proliferation on nuclear, biological, and

6 chemical weapons, their delivery systems, related

7 technologies, and other weapons;

8 (3) establishing programs for safeguarding

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

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

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

17 tension;

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

20 verification of international nonproliferation regimes,

21 and in the promotion of peaceful uses of technologies

22 and materials related to such weapons; and

23 (7) establishing programs for facilitating the

24 conversion of military technologies and capabilities

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

2 Funds shall be available to carry out the provisions

3 of this chapter as authorized and appropriated to the

4 President each fiscal year.

5 SEC. 3204. DRAWDOWN AUTHORITIES.

6 (a) UNFORESEEN EMERGENCIES.—If the President

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

8 States to provide assistance under this chapter in amounts

9 in excess of funds otherwise available under this chapter

10 for such purposes, the President may direct the articles

11 and services, of an aggregate value not to exceed

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

13 resources of any agency of the United States Government.

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

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

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

19 CHAPTER 3—REGIONAL PEACE, SECURITY AND

20 DEFENSE COOPERATION

21 SEC. 3301. STATEMENT OF POLICY.

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

23 often inspired by hegemonist aspirations of aggressive

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

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

4 (b) Prudent investment of United States resources to

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

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

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

10 value of United States dedication to resolving conflict in

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

12 the United States—

13 (1) to permit continued progress in reaching a

14 full settlement and a comprehensive, just and lasting

15 peace between Israel and its Arab neighbors, the

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

19 (2) recognizing that the success of the agree20 ment between Israel and the Palestine Liberation

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

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

24 United States should lead in building peace and

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

4 that region.

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

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

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

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

13 to provide urgent and immediate assistance, bilaterally

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

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

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

22 conditions permit, continued United States assistance

23 under this chapter should focus increasingly on conflict

24 prevention and the promotion of regional arms control,

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

2 in a more peaceful and stable world.

3 SEC. 3302. AUTHORITY AND PURPOSES.

4 Assistance under this chapter may be provided for the

5 following purposes:

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

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

11 East.

12 (2) To meet immediate threats to international

13 peace and security posed by regional and internal

14 conflicts through bilateral or multilateral collective

15 defense efforts, and to meet other political, economic

16 and humanitarian threats to security.

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

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

21 maintain international peace and security.

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

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

2 economic development purposes as rapidly as is warranted

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

4 and the need to maintain ongoing defense relations.

5 SEC. 3304. AVAILABILITY OF FUNDS.

6 Funds shall be available to carry out the provisions

7 of this chapter as authorized and appropriated to the

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

9 authorized and appropriated to carry out the provisions

10 of this chapter that may be made available for assistance

11 administered through the Department of Defense shall be

12 authorized and appropriated separately.

13 CHAPTER 4—INTERNATIONAL NARCOTICS TRAF14 FICKING, TERRORISM AND CRIME PREVEN15 TION

16 SEC. 3401. STATEMENT OF POLICY.

17 (a) International criminal activities, particularly

18 international narcotics trafficking and international ter19 rorism, pose insidious, unparalleled transnational threats

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

21 democratic development.

22 (b) The political and economic upheavals triggered

23 worldwide by international narcotics and crime-related vio24 lence and corruption have had a devastating effect in the

25 United States and elsewhere, and make the prevention and
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1 suppression of such international criminal activities

2 among the most important foreign policy objectives of the

3 United States.

4 (c) Failure to address the problems of narcotics traf5 ficking and related illicit activities will lead inevitably to

6 further and intensified crime, violence, corruption, disease

7 and poverty.

8 (d) The threats posed by terrorism to international

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

10 equally profound, and must be combatted through effec11 tive international cooperation, including the provision of

12 training and equipment.

13 (e) The war against narcotics trafficking, inter14 national terrorism and other forms of international crimi15 nal activity requires the provision of bilateral and multilat16 eral assistance by the United States, including as appro17 priate through defense establishments, and can be waged

18 most successfully by enlisting broad-based international

19 cooperation that facilitates flexible responses to stem all

20 such activity.

21 (f) In order to combat such activities, it is imperative

22 that international cooperation be improved, and efforts in

23 this regard should include assistance to promote enhanced

24 police investigative techniques, prosecutorial and defense

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

2 Assistance under this chapter may be provided for the

3 following purposes:

4 (1) To control narcotics and psychotropic drugs

5 and other controlled substances including through

6 programs to promote alternative development, and

7 including through enforcement, demand reduction

8 and treatment programs.

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

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

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

14 manufacturing and trafficking and terrorism.

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

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

18 engaging in international terrorist acts such as

19 bombing, kidnapping, assassination, hostage-taking

20 and hijacking.

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

25 authorities modern, humane and effective anti-crime

26 and anti-terrorism techniques.
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1 (5) To combat through effective cooperation

2 international criminal activity, including organized

3 crime and its role in attempting to influence the

4 process of government, and to increase international

5 awareness of the need for concerted efforts through

6 bilateral and multilateral means, such as the United

7 Nations Commission on Crime Prevention and

8 Criminal Justice.

9 (6) To promote international criminal justice,

10 including through assistance to promote enhanced

11 police investigative techniques, prosecutional and de12 fense skills, and judicial training and administration.

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

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

17 purposes of controlling narcotics and psychotropic drugs

18 and other controlled substances notwithstanding any other

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

23 (b) AGREEMENTS WITH OTHER COUNTRIES.—In

24 order to promote cooperation for the purposes of this

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

2 other countries to facilitate control of the production,

3 processing, transportation, and distribution of narcotics

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

7 (c) CONTRIBUTION BY RECIPIENT COUNTRY TO

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

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

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

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

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

15 kind’’ basis.

16 (d) USE OF HERBICIDES FOR AERIAL ERADICATION

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

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

21 the environment and on the health of individuals.

22 (e) LIMITATIONS ON USES OF AIRCRAFT AND OTHER

23 EQUIPMENT.—The President shall take all reasonable

24 steps to ensure that aircraft and other equipment made

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

2 with the purposes for which such equipment was made

3 available. In the reports submitted pursuant to section

4 7303, the President shall discuss any evidence indicating

5 misuse by a foreign country of aircraft or other equipment

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

7 and the actions taken by the United States Government

8 in accordance with this Act to prevent future misuse of

9 such equipment by that foreign country.

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

12 to ensure that assistance under this Act is not provided

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

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

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

20 to restrict assistance that is provided under this Act to

21 facilitate alternative development programs.

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

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

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

2 international efforts to combat illicit narcotics production

3 or trafficking. Nothing contained in this subsection shall

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

6 enforcement, domestic security operations, or intelligence

7 activities as defined in Executive Order 12333.

8 SEC. 3404. PROVISIONS RELATED TO LAW ENFORCEMENT

9 TRAINING.

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

14 of training (including short term refresher training) or

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

17 crisis management, facility security, or VIP protection.

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

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

22 limited training in the organization of intelligence for

23 antiterrorism purposes under the provisions of this

24 chapter.
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1 (c) TYPES OF ASSISTANCE.—Anti-crime and anti-ter2 rorism assistance under this chapter should emphasize the

3 provision of training rather than the provision of articles.

4 Such training should be provided with due regard for a

5 country’s commitment to democracy and respect for

6 human rights, and where appropriate should incorporate

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

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

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

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

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

16 under this chapter.

17 SEC. 3406. AVAILABILITY OF FUNDS.

18 Funds shall be available to carry out the provisions

19 of this chapter as authorized and appropriated to the

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

21 authorized and appropriated to carry out the provisions

22 of this chapter that may be made available for assistance

23 administered through the Department of Defense shall be

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

2 ASSISTANCE

3 SEC. 4001. STATEMENT OF POLICY.

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

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

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

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

13 these unexpected requirements.

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

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

18 of that development.

19 (d) Bilateral and multilateral programs that provide

20 support to countries faced with large numbers of refugees,

21 rapidly respond to natural and manmade disasters, and

22 otherwise meet humanitarian and crisis needs are essential

23 for the continued democratization and economic growth of

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

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

2 SEC. 4101. STATEMENT OF POLICY AND PURPOSES.

3 (a) STATEMENT OF POLICY.—

4 (1) United States leadership in international

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

7 (2) United States refugee assistance upholds

8 humanitarian principles that the United States

9 shares with others in the international community.

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

12 threaten to create large-scale refugee and migration

13 programs in which the victims are forced to flee

14 their homes for safety and survival.

15 (4) United States advances the ability of the

16 international community to address humanitarian

17 crises involving the forced migration of peoples

18 through support for, participation in and assistance

19 to, the international and other institutions involved

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

22 violations and forced displacements.

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

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

3 (6) Prompt and effective responses can avert

4 further crises and instability and can alleviate the

5 suffering of the victims of displacement.

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

7 the resources and the flexibility to be able to provide

8 effective and immediate assistance in this regard.

9 (b) PURPOSES OF ASSISTANCE.—Assistance under

10 this chapter may be made available to—

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

13 victims of forced migration, who are outside the

14 United States, including assistance on behalf of

15 those persons who will be considered for admission

16 to the United States and for the initial reintegration

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

19 (2) contribute to the activities of the United

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

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

2 necessary to promote the prevention and solution of

3 refugee and other migration problems, in countries

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

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

8 (1) Whenever the President determines it to be

9 important to the national interest he is authorized to

10 furnish assistance for the purposes of section 4102

11 when such needs are unexpected and urgent.

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

14 carry out the purposes of this subsection. There is

15 authorized to be appropriated to the President from

16 time to time such amounts as may be necessary for

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

19 Congress concerning the use of funds under this

20 subsection.

21 (d) WAIVER OF RESTRICTIONS ON ASSISTANCE.—

22 The President may carry out activities under this chapter

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

2 Funds shall be available to carry out the provisions

3 of this chapter as authorized and appropriated to the

4 President each fiscal year.

5 CHAPTER 2—DISASTER ASSISTANCE

6 SEC. 4201. POLICY

7 (a) HUMANITARIAN CONCERNS AND TRADITIONS OF

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

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

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

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

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

19 greatest extent possible, the assistance provided by the

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

22 SEC. 4202. AUTHORITY TO PROVIDE ASSISTANCE.

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

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

2 natural and manmade disasters abroad.

3 (b) NONAPPLICABILITY OF OTHER PROVISIONS.—

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

6 (c) BORROWING AUTHORITY.—

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

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

10 against appropriations available to carry out other

11 titles of this Act for use in providing assistance in

12 accordance with the authorities and general policies

13 of this chapter.

14 (2) REIMBURSEMENT.—Amounts subsequently

15 appropriated to carry out this chapter with respect

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

19 disaster.

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

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

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

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

2 Funds shall be available to carry out the provisions

3 of this chapter as authorized and appropriated to the

4 President each fiscal year.

5 CHAPTER 3—EMERGENCY FOOD ASSISTANCE

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

8 LAW 480, TITLE II.

9 (a) The United States continues to provide leadership

10 in addressing famine and other urgent or extraordinary

11 worldwide relief needs.

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

16 best in the humanitarian spirit of the American people.

17 (c) This assistance is often provided in conjunction

18 with assistance furnished under the other chapters of this

19 title to provide a comprehensive program of relief for those

20 less fortunate that we who are refugees or other victims

21 of forced migration, or are suffering the consequences of

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

2 TRADE AND INVESTMENT

3 SEC. 5001. STATEMENT OF POLICY.

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

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

7 in a global economy.

8 (b) The United States remains committed to the prin9 ciples of free trade among nations as the most effective

10 means to promote expanding international markets and

11 global economic prosperity.

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

15 liberalization.

16 (d) United States trade and investment represent a

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

21 by free-market orientation and sustained developmemt in

22 those countries.

23 (e) The twin tracks of commercial engagement and

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

2 creating a more prosperous, therefore more secure, world.

3 (f) The provision of a comprehensive and coordinated

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

6 ability of the private sector to pursue trade and investment

7 opportunities in developing countries.

8 CHAPTER 1—OVERSEAS PRIVATE INVESTMENT

9 CORPORATION

10 SEC. 5101. PURPOSE AND POLICY.

11 (a) PURPOSE.—The Overseas Private Investment

12 Corporation shall be an agency of the United States under

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

14 purpose of the Corporation is to mobilize and facilitate

15 the participation of United States private capital and skills

16 in the economic and social development of less developed

17 friendly countries and areas, and countries in transition

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

20 United States, facilitating the competitiveness of the Unit21 ed States private sector, and promoting United States

22 economic growth.

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

2 a project, shall especially—

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

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

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

9 (2) give preference to projects which promote

10 United States exports and increase United States

11 economic growth; and

12 (3) give preferential consideration to investment

13 projects in countries that have per capita incomes of

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

18 countries under section 212 of the Caribbean Basin

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

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

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

2 and financial soundness of projects;

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

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

7 (3) to broaden private participation and revolve

8 its funds through selling its direct investments to

9 private investors whenever it can appropriately do so

10 on satisfactory terms;

11 (4) to conduct its insurance operations with due

12 regard to principles to risk management, including

13 efforts to share its insurance risks and reinsurance

14 risks;

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

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

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

22 (6) to foster private initiative and competition

23 and discourage monopolistic practices;

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

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

2 of the United States;

3 (8) to conduct its activities in consonance with

4 the international trade, investment, and financial

5 policies of the United States Government, and to

6 seek to support those developmental projects having

7 positive trade benefits for the United States; and

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

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

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

14 SEC. 5102. INVESTMENT INSURANCE, FINANCING, AND

15 OTHER PROGRAMS.

16 (a) INVESTMENT INSURANCE.—

17 (1) RISKS FOR WHICH INSURANCE ISSUED.—

18 The Corporation is authorized to issue insurance,

19 upon such terms and conditions as the Corporation

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

24 (A) Inability to convert into United States

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

2 approved project, as repayment or return of the

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

4 or as compensation for the sale or disposition of

5 all or any part of the investment.

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

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

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

12 (D) Loss due to business interruption

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

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

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

20 areas are often made by enterprises in which there

21 is multinational participation, including significant

22 United States private participation, the Corporation

23 may make arrangements with foreign governments

24 (including agencies, instrumentalities, and political

25 subdivisions thereof) and with multilateral organiza-
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1 tions and institutions for sharing liabilities assumed

2 under investment insurance for such investments

3 and may, in connection with such arrangements,

4 issue insurance to investors not otherwise eligible for

5 insurance under this chapter, except that—

6 (A) liabilities assumed by the Corporation

7 under the authority of this paragraph shall be

8 consistent with the purposes of this chapter,

9 and

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

13 (3) MAXIMUM CONTINGENT LIABILITY WITH

14 RESPECT TO SINGLE INVESTOR.—Not more than 10

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

18 shall be issued to a single investor.

19 (4) OTHER INSURANCE FUNCTIONS.—

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

22 (i) make and carry out contracts of

23 insurance or reinsurance, or agreements to

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

2 persons, or groups thereof, and

3 (ii) employ such insurance companies,

4 financial institutions, other persons, or

5 groups, where appropriate, as its agent, or

6 to act as their agent, in the issuance and

7 servicing of insurance, the adjustment of

8 claims, the exercise of subrogation rights,

9 the ceding and accepting of reinsurance,

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

13 with the purposes of the Corporation set

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

16 (B) RISK-SHARING AGREEMENTS.—The

17 Corporation is authorized to enter into pooling

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

20 of such agencies.

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

23 to hold an ownership interest in any association

24 or other entity established for the purposes of

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

2 (1) DIRECT LENDING.—

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

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

7 mixed private and public ownership, upon such

8 terms and conditions as the Corporation may

9 determine.

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

13 loan under this subsection of use in the develop14 ment or adaptation in the United States of new

15 technologies or new products or services that

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

17 is made and are likely to contribute to the eco18 nomic or social development of less developed

19 countries.

20 (2) EQUITY INVESTMENT.—

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

24 characteristics of any firm or entity, upon such

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

2 direct loans under the Federal Credit Reform

3 Act of 1990 for the purpose of providing capital

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

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

8 to any project shall not exceed 30 percent

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

11 at the time that the Corporation’s equity

12 investment is made, except for securities

13 acquired through the enforcement of any

14 lien, pledge, or contractual arrangement as

15 a result of a default by any party under

16 any agreement relating to the terms of the

17 Corporation’s investment; and

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

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

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

2 75 percent of the total investment commit3 ted to such project as determined by the

4 Corporation. Such determination under

5 this clause shall be conclusive for purposes

6 of the Corporation’s authority to make or

7 guarantee any such investment.

8 (B) ADDITIONAL CRITERIA.—In making

9 investment decisions under this paragraph, the

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

14 (C) DISPOSITION OF EQUITY INTEREST.—

15 Taking into consideration, among other things,

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

18 capital markets in emerging democracies,

19 economies in transformation and less developed

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

22 this subsection within a period of 10 years from

23 the date of acquisition of such interest.

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

3 of loans and other investments made by such

4 investors assuring against loss due to such risks

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

8 (B) GUARANTEES ON OTHER THAN LOAN

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

11 may not exceed 75 percent of such investment.

12 (C) LIMIT ON AMOUNT OF INVESTMENT

13 GUARANTEED.—Except for loan investments for

14 credit unions made by eligible credit unions or

15 credit union associations, the aggregate amount

16 of investment (exclusive of interest and earn17 ings) for which guarantees are issued under

18 subparagraph (A) with respect to any project

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

20 such guarantee, 75 percent of the total invest21 ment committed to any such project as deter22 mined by the Corporation. Such determination

23 by the Corporation shall be conclusive for pur24 poses of the Corporation’s authority to issue

25 any such guarantee.
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1 (D) MAXIMUM CONTINGENT LIABILITY

2 WITH RESPECT TO SINGLE INVESTOR.—Not

3 more than 15 percent of the maximum contin4 gent liability for investment guarantees which

5 the Corporation is permitted to have outstand6 ing under section 5104(a)(2) may be issued to

7 a single investor.

8 (c) INVESTMENT ENCOURAGEMENT.—The Corpora9 tion is authorized to initiate and support through financial

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

11 terms and conditions as the Corporation may determine,

12 the identification, assessment, surveying, and promotion

13 of private investment opportunities, using wherever fea14 sible and effective the facilities of private investors, except

15 that the Corporation shall not finance any survey to ascer16 tain the existence, location, extent, or quality of oil or gas

17 resources.

18 (d) SPECIAL ACTIVITIES.—The Corporation is au19 thorized to administer and manage special projects and

20 programs, including programs of financial and advisory

21 support, which provide private technical, professional, or

22 managerial assistance in the development of human re23 sources, skills, technology, capital savings, intermediate fi24 nancial and investment institutions, and cooperatives. The

25 funds for these projects and programs may, with the Cor-
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1 poration’s concurrence, be transferred to it for such pur2 poses under the authority of section 8201 of this Act or

3 from other sources, public or private.

4 SEC. 5103. ENHANCING PRIVATE POLITICAL RISK INSUR5 ANCE INDUSTRY.

6 In order to encourage greater availability of political

7 risk insurance for eligible investors by enhancing the pri8 vate political risk insurance industry in the United States,

9 and to the extent consistent with this chapter, the Cor10 poration shall undertake programs of cooperation with

11 such industry, and in connection with such programs may

12 engage in the following activities:

13 (1) Utilizing its statutory authorities, encourage

14 the development of associations, pools, or consortia

15 of United States private political risk insurers.

16 (2) Share insurance risks (through coinsurance,

17 contingent insurance, or other means) in a manner

18 that is conducive to the growth and development of

19 the private political risk insurance industry in the

20 United States.

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

22 expiration of insurance provided by the Corporation

23 for an investment, enter into risk-sharing agree24 ments with United States private political risk insur25 ers to insure any such investment; except that, in co-
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1 operating in the offering of insurance under this

2 paragraph, the Corporation shall not assume respon3 sibility for more than 50 percent of the insurance

4 being offered in each separate transaction.

5 SEC. 5104. ISSUING AUTHORITY AND RESERVES.

6 (a) ISSUING AUTHORITY.—

7 (1) INSURANCE.—The maximum contingent li8 ability outstanding at any one time pursuant to in9 surance issued under section 5102(a) shall not ex10 ceed in the aggregate $15,000,000,000.

11 (2) FINANCING.—The Corporation is authorized

12 to commit investment financing under section

13 5102(b) of up to $5,000,000,000 for the period of

14 fiscal years beginning October 1, 1994, terminating

15 on the date specified in paragraph (3).

16 (3) TERMINATION OF AUTHORITY.—The au17 thority of subsection (a) and (b) of section 5102

18 shall continue until September 30, 1999.

19 (b) INSURANCE RESERVE.—

20 (1) MAINTENANCE AND PURPOSES.—The Cor21 poration shall maintain an insurance reserve. Such

22 reserve shall be available for the discharge of liabil23 ities, as provided in subsection (d), until such time

24 as all such liabilities have been discharged or have
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1 expired or until such reserve has been expended in

2 accordance with the provisions of this section.

3 (2) FUNDING.—The insurance reserve shall

4 consist of—

5 (A) any funds in the insurance reserve of

6 the Corporation on September 30, 1993,

7 (B) amounts transferred to the reserve

8 pursuant to this Act, and

9 (C) such sums as are appropriated pursu10 ant to subsection (d) of this section for such

11 purposes.

12 (c) ORDER OF PAYMENTS TO DISCHARGE LIABIL13 ITIES.—Any payment made to discharge liabilities under

14 investment insurance or reinsurance issued under section

15 5102, under similar predecessor guarantee authority, or

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

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

18 thereafter out of funds made available pursuant to sub19 section (d) of this section. Any payments made to dis20 charge liabilities under guarantees issued under section

21 5102(b) shall be paid in accordance with the Federal

22 Credit Reform Act of 1990.

23 (d) AVAILABILITY OF FUNDS.—

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

25 funds shall be available to carry out the provisions
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1 of this chapter as authorized and appropriated to

2 the President to replenish or increase the insurance

3 reserve, to discharge the liabilities under insurance

4 or reinsurance issued by the Corporation, or to dis5 charge obligations of the Corporation purchased by

6 the Secretary of the Treasury pursuant to subsection

7 (e).

8 (2) LIMITATION ON APPROPRIATIONS.—No ap9 propriation shall be made under paragraph (1) to

10 augment the insurance reserve until the amount of

11 funds in the insurance reserve is less than

12 $25,000,000. Any appropriations to augment the in13 surance reserve shall then only be made to satisfy

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

15 (e) ISSUANCE OF OBLIGATIONS.—In order to dis16 charge liabilities under investment insurance or reinsur17 ance, the Corporation is authorized to issue from time to

18 time for purchase by the Secretary of the Treasury its

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

20 the aggregate amount of such obligations outstanding at

21 any one time may not exceed $100,000,000. Any such ob22 ligation shall be repaid to the Treasury within one year

23 after the date of issue of such obligation. Any such obliga24 tion shall bear interest at a rate determined by the Sec25 retary of the Treasury, taking into consideration the cur-
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1 rent average market yield on outstanding marketable obli2 gations of the United States of comparable maturities dur3 ing the month preceding the issuance of any obligation

4 authorized by this subsection. The Secretary of the Treas5 ury shall purchase any obligation of the Corporation is6 sued under this subsection, and for such purchase the Sec7 retary may use as a public debt transaction the proceeds

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

9 title 31, United States Code. The purpose for which secu10 rities may be issued under chapter 31 of title 31, United

11 States Code, shall include any such purchase.

12 SEC. 5105. GUIDELINES AND REQUIREMENTS FOR OPIC

13 SUPPORT.

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

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

16 Corporation shall prepare and maintain for each invest17 ment project it insures, reinsures, or finances a develop18 ment impact profile consisting of data appropriate to

19 measure the projected and actual effects of such project

20 on development.

21 (b) SMALL BUSINESS DEVELOPMENT.—

22 (1) BROADENED PARTICIPATION BY SMALL

23 BUSINESSES.—The Corporation shall undertake, in

24 cooperation with appropriate departments, agencies,

25 and instrumentalities of the United States as well as
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1 private entities and others, to broaden the participa2 tion of United States small business, cooperatives,

3 and other small United States investors in the devel4 opment of small private enterprise in less developed

5 friendly countries or areas.

6 (2) PREFERENTIAL CONSIDERATION.—The Cor7 poration shall undertake to the maximum degree

8 possible consistent with its purposes—

9 (A) to give preferential consideration in its

10 investment insurance, reinsurance, financing,

11 and investment encouragement activities to in12 vestment projects sponsored by or involving

13 United States small business or cooperatives;

14 and

15 (B) to maintain the proportion of projects

16 sponsored by or significantly involving United

17 States small business to at least 30 percent of

18 all projects insured, reinsured, financed or en19 couraged by the Corporation.

20 (c) ENVIRONMENTAL CONSIDERATIONS.—

21 (1) ENVIRONMENTAL, HEALTH, OR SAFETY

22 HAZARD.—The Corporation shall refuse to insure,

23 reinsure, or finance any investment in connection

24 with a project which the Corporation determines will

25 pose an unreasonable or major environmental,
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1 health, or safety hazard, or will result in the signifi2 cant degradation of national parks or similar pro3 tected areas.

4 (2) RESOURCE SUSTAINABLE DEVELOPMENT.—

5 The Corporation, in determining whether to provide

6 insurance, reinsurance, or financing for a project,

7 shall ensure that the project is consistent with the

8 goals set forth in section 7210 of this Act.

9 (3) ENVIRONMENTAL IMPACT STATEMENTS AND

10 ASSESSMENTS.—The requirements of section

11 7210(b) relating to environmental impact statements

12 and environmental assessments shall apply to any

13 investment which the Corporation insures, reinsures,

14 guarantees, or finances under this chapter in con15 nection with a project in a country.

16 (4) NOTIFICATION OF FOREIGN GOVERN17 MENTS.—Before finally providing insurance, reinsur18 ance, guarantees, or financing under this chapter for

19 any environmentally sensitive investment in connec20 tion with a project in a country, the Corporation

21 shall notify appropriate government officials of that

22 country of—

23 (A) all guidelines and other standards

24 adopted by the International Bank for Recon25 struction and Development and any other inter-
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1 national organization relating to the public

2 health or safety or the environment which are

3 applicable to the project; and

4 (B) to the maximum extent practicable,

5 any restriction under any law of the United

6 States relating to public health or safety or the

7 environment that would apply to the project if

8 the project were undertaken in the United

9 States.

10 The notification under the preceding sentence shall

11 include a summary of the guidelines, standards, and

12 restrictions referred to in subparagraphs (A) and

13 (B).

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

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

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

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

22 in consultation with the Secretary of State, all available

23 information about observance of and respect for human

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

2 rights and fundamental freedoms in such country.

3 (e) WORKER RIGHTS.—

4 (1) LIMITATION ON OPIC ACTIVITIES.—The

5 Corporation may insure, reinsure, or finance a

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

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

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

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

12 that country). The Corporation shall also include the

13 following language, in substantially the following

14 form, in all contracts which the Corporation enters

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

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

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

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

3 (2) USE OF ANNUAL REPORTS ON WORKER

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

6 submitted to the Congress pursuant to section

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

8 2465(c)).

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

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

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

14 of the United States. Any such determination shall

15 be reported in writing to the Congress, together with

16 the reasons for the determination.

17 (f) HARM TO EMPLOYMENT IN THE UNITED

18 STATES.—

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

23 cause such investor (or the sponsor of an investment

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

2 the investor or sponsor is replacing his or her United

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

7 United States production.

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

10 in subparagraph (A), the Corporation shall monitor

11 conformance with the representations made by the

12 investor on which the Corporation relied in making

13 that determination.

14 (2) REDUCTION OF EMPLOYEES IN THE UNITED

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

17 determines that such investment is likely to cause a

18 significant reduction in the number of employees in

19 the United States.

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

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

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

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

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

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

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

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

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

12 (h) PROHIBITED TRADE PRACTICES.—

13 (1) PAYMENTS TO VIOLATORS BARRED.—No

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

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

18 loss was an act by the investor seeking payment

19 under this chapter, by a person possessing majority

20 ownership and control of the investor at the time of

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

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

2 Practices Act of 1977.

3 (2) REGULATIONS.—The Corporation shall have

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

6 determined by a court of the United States to have

7 violated section 30A of the Securities Exchange Act

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

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

11 any insurance, reinsurance, guarantee, financing, or

12 other financial support authorized by this chapter, if

13 that violation related to a project insured, reinsured,

14 guaranteed, financed, or otherwise supported by the

15 Corporation under this chapter.

16 (i) FRAUD OR MISREPRESENTATION.—No payment

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

19 of fraud or misrepresentation for which the party seeking

20 payment is responsible.

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

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

24 Corporation is carrying out its activities in accordance

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

2 extended insurance, reinsurance, or financing under this

3 chapter.

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

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

7 CHAPTER 2—TRADE AND DEVELOPMENT

8 AGENCY

9 SEC. 5201. PURPOSES.

10 The Trade and Development Agency shall be an

11 agency of the United States under the foreign policy guid12 ance of the Secretary of State. The purpose of the Trade

13 and Development Agency is to promote United States pri14 vate sector participation in developing and middle-income

15 countries.

16 SEC. 5202. AUTHORITY TO PROVIDE ASSISTANCE.

17 (a) AUTHORITY.—The Director of the Trade and De18 velopment Agency is authorized to work with foreign coun19 tries to carry out the purposes of this chapter by providing

20 funds for feasibility studies, architectural and engineering

21 design, and other activities related to development projects

22 which provide opportunities for the use of United States

23 exports.

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

25 be used to provide support for feasibility studies for plan-
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1 ning, development, and management of, and procurement

2 for, bilateral and multilateral development projects, in3 cluding training activities undertaken in connection with

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

5 States goods and services in such projects. Funds under

6 this chapter may also be used for architectural and engi7 neering design, including—

8 (1) concept design, which establishes the basic

9 technical and operational criteria for a project, such

10 as architectural drawings for a proposed facility,

11 evaluation of site constraints, procurement require12 ments, and equipment specifications; and

13 (2) detail design, which sets forth specific di14 mensions and criteria for structural, mechanical,

15 electrical, and architectural operations, and identi16 fies other resources required for project operations.

17 (c) INFORMATION DISSEMINATION.—

18 (1) The Trade and Development Agency shall

19 disseminate information about its project activities

20 to the private sector.

21 (2) Other agencies of the United States Govern22 ment shall cooperate with the Trade And Develop23 ment Agency in order for the Agency to provide

24 more effectively informational services to persons in

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

2 projects.

3 (d) NONAPPLICABILITY OF OTHER PROVISIONS.—

4 Funds made available to carry out this chapter may be

5 made available notwithstanding any other provision of law.

6 SEC. 5203. AVAILABILITY OF FUNDS.

7 Funds shall be available to carry out the provisions

8 of this chapter as authorized and appropriated to the

9 President each fiscal year.

10 CHAPTER 3—ROLE OF RELATED PROGRAMS

11 SEC. 5301. STATEMENT OF POLICY REGARDING ROLE OF

12 PUBLIC LAW 480 TITLE I PROGRAMS.

13 (a) Public Law 480 title I programs provide an im14 portant resource in the efforts of the United States to sup15 port continued growth in the world economy.

16 (b) By using the abundant agricultural productivity

17 of the United States to enhance the food security of devel18 oping countries, these programs complement other inter19 national programs of the United States to—

20 (1) help to combat world hunger and malnutri21 tion and their causes,

22 (2) promote broad-based, equitable, and sus23 tainable development,

24 (3) expand international trade, and
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1 (4) develop and expand export markets for

2 United States agricultural commodities.

3 (c) By fostering the demand for United States agri4 cultural commodities and helping to meet the food needs

5 of developing countries that have difficulty meeting those

6 needs through commercial channels, Public Law 480 title

7 I programs are an integral part of United States efforts

8 to encourage expansion of the world economy and the par9 ticipation of the United States private sector in that ex10 pansion.

11 SEC. 5302. STATEMENT OF POLICY REGARDING ROLE OF

12 EXPORT-IMPORT BANK.

13 (a) While the Export-Import Bank of the United

14 States does not provide foreign assistance, its programs

15 can complement sustainable development programs in

16 helping to expand United States exports.

17 (b) The purpose of the Export-Import Bank of the

18 United States is to provide financing support for United

19 States exports, thereby creating and maintaining jobs in

20 the United States.

21 (c) The role of the Export-Import Bank of the United

22 States is an important factor in bolstering global free

23 trade and fair trade, and its programs help to level the

24 global playing field in export financing.
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1 (d) The Export-Import Bank of the United States is

2 an important supplement to the private sector’s export fi3 nancing capacities for creating and maintaining jobs.

4 (e) With one out of every six manufacturing jobs in

5 the United States dependent on exports, it is necessary

6 to promote trade with both existing and developing

7 markets.

8 (f) The programs of the Export-Import Bank of the

9 United States serve to provide inroads for United States

10 exporters into developing country markets.

11 (g) The role of the Export-Import Bank of the United

12 States in providing trade and project finance supports

13 United States domestic employment and global economic

14 growth and development.

15 TITLE VI—ADVANCING DIPLOMACY

16 SEC. 6001. STATEMENT OF POLICY.

17 (a) Success in achieving the goals of this Act depends

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

19 Department of State and other United States Government

20 departments and agencies engaged in international pro21 grams.

22 (b) Diplomacy is the most cost-effective foreign policy

23 instrument for promoting American prosperity and safe24 guarding United States security by managing crises and

25 preventing future conflict.
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1 (c) United States leadership in addressing emerging

2 global challenges will depend increasingly on skillful diplo3 macy to build cooperative arrangements with major allies

4 and multilateral organizations that leverage our political

5 influence, and our economic, technical, military and hu6 manitarian assistance.

7 (d) Diplomacy is essential to the realization of each

8 of the five other titles of this Act:

9 (1) Promoting Sustainable Development re10 quires integrated and coordinated efforts between

11 diplomats and aid specialists to deal with immediate

12 environmental, economic, and cultural challenges

13 and opportunities abroad while building the founda14 tion for long-term bilateral, regional and global co15 operation.

16 (2) Promoting Democracy requires foreign af17 fairs professionals in the Department of State and

18 other United States Government departments and

19 agencies engaged in international programs to reach

20 out beyond traditional bilateral and multilateral rela21 tions to inform foreign publics about the virtues and

22 challenges of democracy and market economics and

23 to promote human rights, democratic institution

24 building, and development of open, civil societies.
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1 (3) Promoting Peace requires creative and sus2 tained diplomacy—backed by economic, technical,

3 humanitarian and military resources—to avert con4 flict, facilitate negotiated resolution of disputes, and

5 render peace processes irreversible; and to build re6 gimes to restrain proliferation, narcotics trafficking,

7 terrorism and other forms of criminal activity.

8 (4) Humanitarian Assistance requires diplomats

9 and other involved United States government per10 sonnel to respond promptly to facilitate bilateral re11 lief, engage relevant multilateral organizations, and

12 ensure that relief programs do not become objects of

13 political manipulation locally or among donor agen14 cies; at the same time, effective preventive diplomacy

15 can forestall costly political and military disasters.

16 (5) Promoting Growth Through Trade and In17 vestment requires diplomats with advanced technical

18 knowledge, legal skills, and shrewd political judg19 ment to assist economic reform, develop commercial

20 opportunities, and structure regional and global

21 agreements to achieve more open markets and great22 er economic integration.

23 (e) Advancing diplomacy in all of the above areas will

24 require—
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1 (1) funds that can be used flexibly by the Presi2 dent to respond decisively to unforeseen opportuni3 ties and dangers and for structuring new multilat4 eral arrangements that can become the basis for sus5 tainable cooperation to prevent future crises and

6 solve long-term problems;

7 (2) foreign assistance, public diplomacy abroad,

8 and a national consensus at home in support of the

9 goals of American foreign policy;

10 (3) modern technology and infrastructure to

11 support foreign and civil service professionals who

12 must deal with international transactions that are

13 rising exponentially in volume, speed and complexity;

14 and

15 (4) greater harmonization of our foreign affairs

16 institutions and instruments, with a view to avoiding

17 duplicative administrative structures, staffs and pro18 grams.

19 TITLE VII—SPECIAL AUTHORITIES, RE20 STRICTIONS ON ASSISTANCE, AND

21 REPORTS

22 CHAPTER 1—SPECIAL AUTHORITIES

23 SEC. 7101. AUTHORITY TO TRANSFER BETWEEN ACCOUNTS.

24 (a) GENERAL TRANSFER AUTHORITY.—Whenever

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

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

3 (1) may be transferred to, and consolidated

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

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

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

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

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

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

12 20 percent of the amount of funds otherwise made avail13 able for such account or fund.

14 (c) EXCEPTIONS.—

15 (1) The percentage limitations contained in

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

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

19 chapter 1 of title III.

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

21 used to transfer funds from amounts made available

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

24 to transfer such funds for the purposes of section

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

2 8509(a).

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

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

5 Foreign Affairs and the Committee on Appropriations of

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

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

9 authority.

10 SEC. 7102. SPECIAL WAIVER AUTHORITY.

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

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

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

14 foreign assistance authorization or appropriations Acts, or

15 the Arms Export Control Act without regard to any of

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

18 (1) in cases under the Arms Export Control

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

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

22 do so is important to the national interests of the

23 United States.

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

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

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

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

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

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

9 (1) the provisions of this Act,

10 (2) the provisions of the Arms Export Control

11 Act,

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

13 authority to provide assistance, make sales or leases,

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

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

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

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

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

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

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

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

6 (f) ANNUAL CEILINGS.—

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

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

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

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

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

13 funds made available for use under this Act;

14 and

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

16 foreign currencies accruing under this Act or

17 any other law.

18 (2) SALES UNDER THE ARMS EXPORT CONTROL

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

20 authorize a sale or lease under the Arms Export

21 Control Act and to authorize funds to be used under

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

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

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

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

2 paragraph (1)(A).

3 (3) LEASES.—For purposes of paragraph

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

5 the value, of the defense articles authorized to be

6 leased shall be counted against the limitation in that

7 paragraph.

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

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

11 one country in any fiscal year unless that country is

12 a victim of active aggression.

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

16 one country in any fiscal year.

17 SEC. 7103. UNANTICIPATED CONTINGENCIES.

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

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

21 to furnish, for any unanticipated contingency, assistance

22 or contributions authorized by any provision of this Act

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

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

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

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

7 Committee on Appropriations of the Senate each time the

8 authority of this section is exercised.

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

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

11 gifts to any official of any foreign government.

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

14 (a) STATEMENT OF POLICY.—

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

18 ability to contribute to civilian order and may lack

19 autonomy from military authorities.

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

22 democratic rule.

23 (3) United States and international assistance

24 to these agencies may therefore be critical for the

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

2 provided in support of the functions of law enforcement

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

4 provided under other provisions of this Act in support of

5 the functions of law enforcement agencies only—

6 (1) to reinforce the civilian democratic role of

7 agencies through, to the extent practicable as part of

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

10 (A) programs to enhance professionalism

11 (including programs to improve investigative

12 and forensic capabilities, to enhance protection

13 of participants in judicial cases, and to improve

14 administrative and management functions);

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

17 (C) programs designed to enhance respect

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

20 (2) to enhance the practical accountability of

21 law enforcement agencies to civil justice institutions;

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

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

2 tradition, does not have standing armed forces, and

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

5 (5) for maritime law enforcement and other

6 maritime skills, including training;

7 (6) to protect and maintain wildlife habitats

8 and to develop sound wildlife management and plant

9 conservation programs;

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

13 (8) for assistance to police forces in connection

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

16 (9) to meet the challenges described in section

17 2102(a)(3).

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

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

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

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

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

3 Act, the former authority of the Foreign Assistance Act

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

5 Export Control Act, or other predecessor legislation shall

6 remain available for obligation for a period not to exceed

7 8 months from the date of any termination of assistance

8 under such Acts for the necessary expenses of winding up

9 programs related to such termination and may remain

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

13 for the necessary expenses of winding up programs related

14 to such termination notwithstanding any provision of law

15 restricting the expenditure of funds. In order to ensure

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

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

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

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

23 of making an equitable settlement of termination claims

24 under extraordinary contractual relief standards, the

25 President is authorized to adopt as a contract or other

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

2 contract with a United States or third-country contractor

3 that had been funded with assistance under such Acts

4 prior to the termination of assistance.

5 (c) TERMINATION EXPENSES.—Amounts certified as

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

8 law, shall continue to remain available and may be

9 reobligated to meet any necessary expenses arising from

10 the termination of such assistance.

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

12 any other Act requiring the termination of assistance

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

15 entered into prior to the effective date of the termination

16 of assistance.

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

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

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

24 (a) RESTRICTIONS NOT APPLICABLE.—Subject to

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

2 construed to restrict assistance in support of programs of

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

5 (b) NATIONAL INTEREST CRITERIA.—The President

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

9 organizations or programs of international organizations

10 or arrangements is in the national interest of the United

11 States.

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

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

14 of a nongovernmental organization or of an international

15 organization or arrangement, the President shall notify

16 the Committee on Foreign Affairs and the Committee on

17 Appropriations of the House of Representatives and the

18 Committee on Foreign Relations and the Committee on

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

21 the reasons for furnishing such assistance.

22 SEC. 7107. EXEMPTION OF TRAINING ACTIVITIES FROM

23 PROHIBITIONS.

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

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

5 SEC. 7108. NONAPPLICABILITY TO DEFENSE ASSISTANCE

6 OF CERTAIN NEUTRALITY ACT PROVISIONS.

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

9 may specify of the Neutrality Act of 1939.

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

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

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

14 provisions in previously enacted legislation, shall not be

15 construed to prohibit the following activities:

16 (1) Meeting the needs of individuals with dis17 abilities.

18 (2) Addressing the needs of displaced children.

19 (3) Child survival activities.

20 (4) The prevention and control of acquired im21 mune deficiency syndrome (AIDS).

22 (5) Environmentally sound, sustainable re23 source management, and more efficient energy sys24 tems.
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1 (6) Reconstruction as a result of natural or

2 manmade disasters.

3 (7) Helping to reduce excessive population

4 growth rates.

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

6 governments of countries to which assistance is prohibited

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

8 SEC. 7110. AUTHORITY TO CONDUCT REIMBURSABLE PRO9 GRAMS.

10 (a) GENERAL AUTHORITY.—Whenever the President

11 considers it consistent with and within the limitations of

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

13 authorized to furnish services and articles on an advance14 of-funds or reimbursement basis to friendly countries,

15 international organizations and arrangements, and non16 governmental organizations and may contract in advance

17 of appropriations or reimbursement of such purposes.

18 (b) PERSONAL SERVICE CONTRACTS.—When any

19 agency of the United States Government provides services

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

21 section, such agency may contract with individuals for per22 sonal service abroad or in the United States to perform

23 such services or to replace officers or employees of the

24 United States Government in a manner otherwise per25 mitted by law (or Office of Management and Budget Cir-
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1 cular A–76 or any successor circular) who are assigned

2 by the agency to provide such services. Such individuals

3 shall not be regarded as employees of the United States

4 Government for the purpose of any law administered by

5 the Office of Personnel Management.

6 (c) LIMITATIONS ON ASSISTANCE NOT APPLICA7 BLE.—Limitations in this or any other Act on assistance

8 do not apply with respect to this section.

9 (d) USE OF PAYMENTS.—Advances and reimburse10 ments received under this section may either be credited

11 to the currently applicable appropriation, account, or fund

12 of the agency concerned or shall be available until ex13 pended.

14 SEC. 7111. DRAWDOWN AUTHORITY.

15 (a) UNFORESEEN EMERGENCIES.—If the President

16 determines that—

17 (1) an unforeseen emergency exists which re18 quires immediate military assistance to a foreign

19 country or international organization, and

20 (2) the emergency requirement cannot be met

21 under the authority of the Arms Export Control Act

22 or any other law except this section,

23 the President may direct, for the purposes of this Act, the

24 drawdown of articles and services, of an aggregate value
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1 not to exceed $100,000,000 in any fiscal year, from the

2 inventory and resources of the Department of Defense.

3 (b) SPECIAL CIRCUMSTANCES.—If the President de4 termines that it is in the national interest of the United

5 States to do so, the President may direct the drawdown

6 of articles and services, of an aggregate value not to ex7 ceed $150,000,000 in any fiscal year, from the inventory

8 and resources of any agency of the United States Govern9 ment for the purposes and under the authorities of—

10 (1) chapter 4 of title III of this Act;

11 (2) chapter 1 of title IV of this Act; or

12 (3) chapter 2 of title IV of this Act.

13 (c)(1) The authority of this section may be exercised

14 only if the Committee on Foreign Affairs and the Commit15 tee on Appropriations of the House of Representatives and

16 the Committee on Foreign Relations and the Committee

17 on Appropriations of the Senate are notified in advance

18 of the exercise of that authority.

19 (2) CONTINUING INFORMATION.—The President

20 shall keep the Congress fully and currently informed of

21 all articles and services provided under this section.

22 (d) AUTHORIZATION OF APPROPRIATIONS.—There

23 are authorized to be appropriated to the President such

24 sums as may be necessary to reimburse the applicable ap-
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1 propriation, fund, or account for articles and services pro2 vided under this section.

3 SEC. 7112. INTEREST ACCRUING TO NONGOVERNMENTAL

4 ORGANIZATIONS.

5 Upon the approval of the President, a nongovern6 mental organization may place in an interest bearing ac7 count—

8 (1) funds made available on a grant basis under

9 this Act (or predecessor legislation); and

10 (2) local currencies which accrue to that organi11 zation as a result of grant assistance provided under

12 this Act (or predecessor legislation) or assistance

13 under titles I through III of the Agricultural Trade

14 Development and Assistance Act of 1954, section

15 416(b) of the Agricultural Act of 1949, or the Food

16 for Progress Act of 1985.

17 Any interest so earned may be retained by the nongovern18 mental organization and used for the purpose for which

19 the assistance was provided to that organization, which

20 may include support for an endowment.

21 SEC. 7113. DEVELOPMENT EDUCATION.

22 The President may use funds made available for sus23 tainable development assistance under this Act to support

24 development education programs, with emphasis on those

25 conducted by private voluntary organizations and coopera-
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1 tives, in order to assist in the education of United States

2 citizens about developing countries, the development proc3 ess, the interdependence of developed and developing coun4 tries, and the importance to the United States of develop5 ing countries.

6 SEC. 7114. STRENGTHENING THE CAPACITY OF NON7 GOVERNMENTAL ORGANIZATIONS, INCLUD8 ING RESEARCH AND EDUCATIONAL INSTITU9 TIONS.

10 The President may use funds made available for as11 sistance under this Act to furnish assistance to nongovern12 mental organizations, including research and educational

13 institutions, in the United States and abroad for the pur14 pose of strengthening their capacity to develop and carry

15 out programs concerned with the economic and social de16 velopment of developing countries.

17 SEC. 7115. VIOLATIONS OF INTERNATIONAL HUMANI18 TARIAN LAW.

19 (a) AUTHORITY FOR USE OF FUNDS.—The President

20 may use funds made available to carry out the purposes

21 of chapters 1 and 4 of title III of this Act to support ac22 tivities of international tribunals, commissions, or panels

23 to investigate or prosecute persons responsible for geno24 cide, crimes against humanity, and other violations of

25 international humanitarian law.
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1 (b) DRAWDOWN AUTHORITY.—If the President de2 termines that doing so is important to support the activi3 ties described in subsection (a), the President may direct

4 the drawdown of articles and services, of an aggregate

5 value not to exceed $25,000,000 in any fiscal year, from

6 the inventory and resources of any agency of the United

7 States.

8 (c) REIMBURSEMENT.—There are authorized to be

9 appropriated to the President such sums as may be nec10 essary to reimburse the applicable appropriation, fund, or

11 account for articles and services provided under this sub12 section (b).

13 SEC. 7116. LAWS RELATING TO CONTRACTS AND GOVERN14 MENT EXPENDITURES.

15 Whenever the President determines it to be in fur16 therance of the purposes of this Act, the functions author17 ized under this Act may be performed without regard to

18 such provisions of law regulating the making, perform19 ance, amendment, or modification of contracts and the ex20 penditure of funds of the United States Government as

21 the President may specify, except for those provisions con22 tained in section 8551(a)(7) of this Act.
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1 SEC. 7117. TRANSPORTATION CHARGES INCURRED BY THE

2 RED CROSS AND NONGOVERNMENTAL ORGA3 NIZATIONS.

4 In order to further the efficient use of United States

5 voluntary contributions for development and for relief and

6 rehabilitation in furtherance of the purposes of this Act,

7 the President may use funds made available for assistance

8 under this Act, to pay transportation charges on ship9 ments by the American National Red Cross and by United

10 States nongovernmental organizations.

11 CHAPTER 2—RESTRICTIONS ON ASSISTANCE

12 SEC. 7201. INELIGIBLE COUNTRIES.

13 (a) RESTRICTIONS.—Except as provided in sub14 section (b), assistance under this Act may not be furnished

15 to the government of a country that is:

16 (1) COMMUNIST COUNTRIES.—A communist

17 country, as designated under subsection (d).

18 (2) HUMAN RIGHTS VIOLATORS.—A country de19 scribed in subsection (e).

20 (3) EXPROPRIATION OF UNITED STATES PROP21 ERTY.—A country whose government—

22 (A) has on or after January 1, 1962—

23 (i) expropriated the property of any

24 United States person,

25 (ii) repudiated or nullified any con26 tract with any United States person, or
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1 (iii) taken any other action (such as

2 discriminatory taxes or other exactions)

3 which has the effect of seizing ownership

4 or control of the property of any United

5 States person, and

6 (B) has not within a reasonable period of

7 time provided adequate and effective compensa8 tion or is not engaged in good faith efforts to

9 negotiate a settlement, if the United States per10 son has exhausted host country legal and other

11 formal remedies.

12 (4) MILITARY COUPS.—A country whose duly13 elected Head of Government is deposed by military

14 coup or decree unless subsequent to the military

15 coup or decree a democratically-elected government

16 has taken office.

17 (5) TERRORIST COUNTRIES.—A country whose

18 government the President determines repeatedly pro19 vides support for acts of international terrorism.

20 (6) MAJOR ILLICIT DRUG PRODUCING OR

21 MAJOR DRUG TRANSIT COUNTRIES.—A country de22 scribed in section 7206.

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

24 is more than one year in arrears to the United

25 States Government on any payment of interest or
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1 principal on any loan made or credit extended under

2 this Act, the Arms Export Control Act, or the

3 former authorities of the Foreign Assistance Act of

4 1961.

5 (b) EXCEPTIONS.—

6 (1) IN GENERAL.—Funds may be obligated and

7 expended for assistance restricted by subsection (a),

8 or other provisions of law that restrict assistance to

9 countries, under any of the following circumstances:

10 (A) NATIONAL INTEREST.—The President

11 determines that the furnishing of such assist12 ance is important to the national interests of

13 the United States.

14 (B) ALLEVIATING SUFFERING RESULTING

15 FROM A DISASTER.—The assistance is for the

16 alleviation of suffering resulting from a natural

17 or manmade disaster.

18 (C) DIRECTLY BENEFITTING THE

19 NEEDY.—The assistance will directly benefit the

20 needy people in the country.

21 (D) REFUGEES AND DISPLACED PER22 SONS.—The assistance is for the purposes de23 scribed in section 4101(b).

24 (E) PROMOTING HUMAN RIGHTS AND DE25 MOCRACY.—The assistance will be furnished
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1 through nongovernmental organizations to di2 rectly promote increased respect for internation3 ally recognized human rights and the develop4 ment of democracy.

5 (2) With respect to the restrictions imposed by

6 subsection (g) or any other provision of law to which

7 this subsection applies, references in this subsection

8 to furnishing assistance shall be deemed to include

9 the taking of other action that, but for this sub10 section, would be restricted by such provision.

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

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

13 until the President has submitted to the Speaker of the

14 House of Representatives and the chairman of the Com15 mittee on Foreign Relations of the Senate, a report with

16 respect to such assistance. Any such report shall include

17 a detailed explanation of the assistance to be provided, in18 cluding the estimated dollar amount of such assistance,

19 and an explanation of how the assistance meets the cri20 teria specified in subsection (b).

21 (d) COMMUNIST COUNTRY LIST.—

22 (1) ESTABLISHMENT.—The President shall des23 ignate those countries that are Communist countries

24 for purposes of subsection (a)(1).
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1 (2) PUBLICATION OF LIST.—The initial list of

2 countries designated pursuant to this subsection

3 shall be published in the Federal Register and shall

4 be provided to the Congress. Thereafter, any addi5 tions to or deletions from such list shall be similarly

6 published and provided.

7 (3) REMOVAL OF COUNTRIES FROM THE LIST;

8 EXEMPTIONS.—The President may remove a country

9 from the Communist country list established pursu10 ant to this section, or may exempt a listed country

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

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

13 the President promptly reports such removal or ex14 emption to the Speaker of the House of Representa15 tives and the chairman of the Committee on Foreign

16 Relations of the Senate.

17 (e) HUMAN RIGHTS VIOLATORS.—

18 (1) INELIGIBILITY.—Subsection (a)(2) shall

19 apply to any country the government of which en20 gages in a consistent pattern of gross violations of

21 internationally recognized human rights.

22 (2) MATTERS TO BE CONSIDERED.—In imple23 menting subsection (a)(2), consideration shall be

24 given to the following:
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1 (A) The relevant findings of appropriate

2 international organizations and nongovern3 mental organizations.

4 (B) The extent of cooperation by the gov5 ernment in question in permitting an

6 unimpeded investigation by indigenous non7 governmental organizations, other nongovern8 mental organizations, and international organi9 zations (such as the International Committee of

10 the Red Cross), of alleged violations of inter11 nationally recognized human rights.

12 (C) Specific actions that have been taken

13 by the President or the Congress relating to the

14 human rights practices of the government in

15 question.

16 (D) The likely effect that a determination

17 of ineligibility under this subsection is expected

18 to have on the human rights process of the

19 country concerned.

20 (f) TERRORIST COUNTRIES.—The President shall

21 promptly report to the Speaker of the House of Represent22 atives and the chairman of the Committee on Foreign Re23 lations of the Senate the rescission of a determination that

24 the government of a country repeatedly provides support

25 for acts of international terrorism.
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1 (g) RELATED RESTRICTIONS ON ASSISTANCE.—

2 (1) HUMAN RIGHTS VIOLATORS.—Subsection

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

4 furnishing of assistance under this Act—

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

7 the Arms Export Control Act;

8 (B) licenses under section 38 of the Arms

9 Export Control Act with respect to the export

10 of defense articles or defense services to or for

11 the armed forces, police, intelligence, or other

12 internal security forces of a foreign country;

13 and

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

16 control and detection instruments and equip17 ment.

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

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

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

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

24 and insurance under the Export-Import Bank Act of

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

2 MAJOR DRUG TRANSIT COUNTRIES.—

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

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

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

8 Agricultural Trade Development and Assistance

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

11 1945.

12 (B) Notwithstanding subparagraph (A),

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

17 medicine (including any such assistance pro18 vided under title IV), and (ii) assistance for

19 narcotics education and awareness activities.

20 (C) With respect to any country for which

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

22 the President should instruct the United States

23 Executive Director of the International Bank

24 for Reconstruction and Development, the

25 United States Executive Director of the Inter-
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1 national Development Association, the United

2 States Executive Director of the Inter-American

3 Development Bank, and the United States Ex4 ecutive Director of the Asian Development

5 Bank to vote, during the period in which assist6 ance is prohibited under subsection (a)(6),

7 against any loan or other utilization of the

8 funds of their respective institution to or for

9 any major illicit drug producing country or

10 major drug-transit country, except as provided

11 in subsection (b).

12 SEC. 7202. IMPACT OF FOREIGN ASSISTANCE PROGRAMS

13 ON JOBS IN THE UNITED STATES.

14 Funds made available to carry out the provisions of

15 this Act may not be made available to provide—

16 (1) 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

19 United States if such incentive or inducement is

20 likely to reduce the number of individuals employed

21 in the United States by that enterprise because that

22 enterprise would replace production in the United

23 States with production outside the United States;

24 (2) assistance for the purpose of establishing or

25 developing in a foreign country any export process-
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1 ing zone or designated area in which the tax, tariff,

2 labor, environment, and safety laws of that country

3 do not apply, in part or in whole, to activities car4 ried out within that zone or area, unless the Presi5 dent determines and certifies that such assistance is

6 not likely to cause a loss of jobs within the United

7 States; or

8 (3) assistance for any project or activity that

9 contributes to the violation of internationally recog10 nized workers rights (as defined in section 502(a)(4)

11 of the Trade Act of 1974) of workers in the recipi12 ent country, including in any designated zone or

13 area in that country.

14 In recognition that the application of paragraph (3) should

15 be commensurate with the level of development of the re16 cipient country and sector, that paragraph does not pre17 clude assistance for the informal section in such country,

18 for microenterprises and small-scale enterprises, or for

19 small-holder agriculture.

20 SEC. 7203. FAMILY PLANNING ACTIVITIES.

21 Funds made available to carry out this Act may not

22 be—

23 (1) used to coerce any person to practice abor24 tions; or
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1 (2) used to pay for the performance of involun2 tary sterilizations or to coerce or provide any finan3 cial incentive to any person to undergo sterilizations.

4 SEC. 7204. COMPETITION WITH UNITED STATES EXPORTS.

5 In determining whether to provide assistance under

6 this Act, the President should take into consideration

7 whether such assistance would be furnished for direct sup8 port for any project or activity that is specifically designed

9 to increase exports of any agricultural, textile, or apparel

10 commodity from a developing country where such ex11 ports—

12 (1) would be in direct competition with United

13 States exports, and

14 (2) can reasonably be expected to cause sub15 stantial injury to United States exporters of the

16 same or substantially similar commodity.

17 SEC. 7205. NUCLEAR NONPROLIFERATION.

18 (a) NUCLEAR ENRICHMENT TRANSFERS.—

19 (1) Except as provided in paragraph (2) of this

20 subsection, no funds made available to carry out the

21 provisions of this Act may be used for the purpose

22 of providing assistance, to any country that, on or

23 after the date of enactment of the International Se24 curity Assistance Act of 1977, delivers nuclear en25 richment equipment, materials, or technology to a
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1 nonnuclear weapon state or, if a nonnuclear weapon

2 state, receives such equipment, materials, or tech3 nology from any other country, unless before such

4 delivery—

5 (A) the supplying country and receiving

6 country have reached agreement to place all

7 such equipment, materials, or technology, upon

8 delivery, under multilateral auspices and man9 agement when available; and

10 (B) the recipient country has entered into

11 an agreement with the International Atomic

12 Energy Agency to place all such equipment,

13 materials, technology, and all nuclear fuel and

14 facilities in such country under the safeguards

15 system of such Agency.

16 (2)(A) Notwithstanding paragraph (1) of the

17 subsection, the President may furnish assistance

18 which would otherwise be prohibited under such sub19 section if he determines and certifies in writing to

20 the Speaker of the House of Representatives and the

21 Committee on Foreign Relations of the Senate

22 that—

23 (i) the termination of such assistance

24 would have a serious adverse effect on vital

25 United States interests; and
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1 (ii) the President has received reliable as2 surances that the country in question will not

3 acquire or develop nuclear weapons or assist

4 other nations in doing so.

5 A certification under subparagraph (A) of this para6 graph shall set forth the reasons supporting such de7 termination in each particular case.

8 (B) A certification under subparagraph (A) of

9 this paragraph shall take effect on the date on which

10 the certification is received by the Congress. How11 ever, if, within 30 calendar days after receiving this

12 certification, the Congress adopts a joint resolution

13 stating in substance that the Congress disapproves

14 the furnishing of assistance pursuant to the certifi15 cation, then upon the adoption of that resolution the

16 certification shall cease to be effective and all deliv17 eries of assistance furnished under the authority of

18 that certification shall be suspended immediately.

19 (C) Any joint resolution under this paragraph

20 shall be considered in the Senate in accordance with

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

22 Security Assistance and Arms Export Control Act of

23 1976.

24 (D) For the purpose of expediting the consider25 ation and adoption of joint resolutions under this
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1 paragraph, a motion to proceed to the consideration

2 of any such resolution after it has been reported by

3 the appropriate committee shall be treated as highly

4 privileged in the House of Representatives.

5 (b) NUCLEAR REPROCESSING TRANSFERS, ILLEGAL

6 EXPORTS FOR NUCLEAR EXPLOSIVE DEVICES.—

7 (1) Except as provided in paragraph (2) of this

8 subsection, no funds made available to carry out the

9 provisions of this Act may be used for the purpose

10 of providing assistance to any country that—

11 (A) on or after the date of enactment of

12 the International Security Assistance Act of

13 1977, delivers nuclear reprocessing equipment,

14 materials, or technology to a nonnuclear weap15 on state or, if a nonnuclear weapon state, re16 ceives such equipment, materials, or technology

17 from any other country (except for the transfer

18 of reprocessing technology associated with the

19 investigation, under international evaluation

20 programs in which the United States partici21 pates, or technologies which are alternatives to

22 pure plutonium reprocessing); or

23 (B) is a nonnuclear-weapon state which, on

24 or after the date of enactment of the Inter25 national Security and Development Cooperation
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1 Act of 1985, exports illegally or attempts to ex2 port illegally from the United States any mate3 rial, equipment, or technology which would con4 tribute significantly to the ability of such coun5 try to manufacture a nuclear explosive device, if

6 the President determines that the material,

7 equipment, or technology was to be used by

8 such country in the manufacture of a nuclear

9 explosive device; for purposes of this subpara10 graph, an export or attempted export by a per11 son who is an agent of, or is otherwise acting

12 on behalf of or in the interests of, a country

13 shall be considered to be an export or at14 tempted export by that country.

15 (2) Notwithstanding paragraph (1) of this sub16 section, the President may furnish assistance which

17 would otherwise be prohibited under that paragraph

18 if the President determines and certifies in writing

19 to the Speaker of the House of Representatives and

20 the Committee on Foreign Relations of the Senate

21 that the termination of such assistance would be se22 riously prejudicial to the achievement of United

23 States nonproliferation objectives or otherwise jeop24 ardize the common defense and security. The Presi-
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1 dent shall transmit with such certification a state2 ment setting forth the specific reasons therefor.

3 (3)(A) A certification under paragraph (2) of

4 this subsection shall take effect on the day on which

5 the certification is received by the Congress. How6 ever, if within 30 calendar days after receiving this

7 certification, the Congress adopts a joint resolution

8 stating in substance that the Congress disapproves

9 the furnishing of assistance pursuant to the certifi10 cation, then upon the adoption of that resolution the

11 certification shall cease to be effective and all deliv12 eries of assistance furnished under the authority of

13 that certification shall be suspended immediately.

14 (B) Any joint resolution under this paragraph

15 shall be considered in the Senate in accordance with

16 the provisions of section 601(b) of the International

17 Security Assistance and Arms Export Control Act of

18 1976.

19 (C) For the purpose of expediting the consider20 ation and adoption of joint resolutions under this

21 paragraph, a motion to proceed to the consideration

22 of any such resolution after it has been reported by

23 the appropriate committee shall be treated as highly

24 privileged in the House of Representatives.
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1 (c) TRANSFERS OF NUCLEAR EXPLOSIVE DEVICES

2 AND NUCLEAR DETONATIONS.—

3 (1) Except as provided in paragraphs (2) and

4 (3) of this subsection, no funds made available to

5 carry out the provisions of this Act may be used for

6 the purpose of providing assistance to any country

7 that, on or after the date of enactment of the Inter8 national Security Assistance Act of 1977—

9 (A) transfers a nuclear explosive device to

10 a nonnuclear-weapon state, or

11 (B) is a nonnuclear-weapon state and ei12 ther—

13 (i) receives a nuclear explosive device,

14 or

15 (ii) detonates a nuclear explosive de16 vice.

17 (2)(A) Notwithstanding paragraph (1) of this

18 subsection, the President may, for a period of not

19 more than 30 days of continuous session, furnish as20 sistance which would otherwise be prohibited under

21 paragraph (1) of this subsection if, before furnishing

22 such assistance, the President transmits to the

23 Speaker of the House of Representatives, and to the

24 Chairman of the Committee on Foreign Relations of

25 the Senate, a certification that the President has de-
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1 termined that an immediate termination of assist2 ance to that country would be detrimental to the na3 tional security of the United States. Not more than

4 one such certification may be transmitted for a

5 country with respect to the same detonation, trans6 fer, or receipt of a nuclear explosive device.

7 (B) If the President transmits a certification to

8 the Congress under subparagraph (A), a joint reso9 lution which would permit the President to exercise

10 the waiver authority of subparagraph (3) of this

11 subsection shall, if introduced in either House within

12 30 days of continuous session after the Congress re13 ceives this certification, be considered in the Senate

14 and House of Representatives in accordance with

15 subparagraphs (C) and (D) of this paragraph.

16 (C) Any joint resolution under this paragraph

17 shall be considered in the Senate in accordance with

18 the provisions of section 601(b) of the International

19 Security Assistance and Arms Export Control Act of

20 1976.

21 (D) For the purpose of expediting the consider22 ation and adoption of a joint resolution under this

23 paragraph, a motion to proceed to the consideration

24 of such a joint resolution after it has been reported
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1 by the appropriate committee shall be treated as

2 highly privileged in the House of Representatives.

3 (E) For purposes of this paragraph, the term

4 ‘‘joint resolution’’ means a joint resolution the mat5 ter after the resolving clause of which is as follows:

6 ‘‘That the Congress having received on a certifi7 cation by the President under section 7205(c)(2) of

8 the Peace, Prosperity, and Democracy Act of 1994

9 with respect to * * *, the Congress hereby author10 izes the President to exercise the waiver authority

11 contained in section 7205(c)(3) of that Act.’’, with

12 the date of receipt of the certification inserted in the

13 first blank and the name of the country inserted in

14 the second blank.

15 (3) Notwithstanding paragraph (1) of this sub16 section, if the Congress enacts a joint resolution

17 under paragraph (2) of this subsection, the Presi18 dent may furnish assistance which would otherwise

19 be prohibited under paragraph (1) if he determines

20 and certifies in writing to the Speaker of the House

21 of Representatives and the Committee on Foreign

22 Relations of the Senate that the termination of such

23 assistance would be seriously prejudicial to the

24 achievement of United States nonproliferation objec25 tives or otherwise jeopardize the common defense
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1 and security. The President shall transmit with such

2 certification a statement setting forth the specific

3 reasons therefor.

4 (4) For purposes of this subsection, continuity

5 of session is broken only by an adjournment of Con6 gress sine die and the days on which either House

7 is not in session because of an adjournment of more

8 than three days to a day certain are excluded in the

9 computation of any period of time in which Congress

10 is in continuous session.

11 (d) As used in this section, the term ‘‘nonnuclear12 weapon state’’ means any country which is not a nuclear13 weapon state, as defined in article IX(3) of the Treaty

14 on the Non-Proliferation of Nuclear Weapons.

15 (e) PAKISTAN.—No assistance shall be furnished to

16 Pakistan and no military equipment or technology shall

17 be sold or transferred to Pakistan, pursuant to the au18 thorities contained in this Act or any other Act, unless

19 the President shall have certified in writing to the Speaker

20 of the House of Representatives and the chairman of the

21 Committee on Foreign Relations of the Senate, during the

22 fiscal year in which assistance is to be furnished or mili23 tary equipment or technology is to be sold or transferred,

24 that Pakistan does not possess a nuclear explosive device

25 and that the proposed United States assistance program
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1 will reduce significantly the risk that Pakistan will possess

2 a nuclear explosive device.

3 SEC. 7206. MAJOR ILLICIT DRUG PRODUCING AND DRUG

4 TRANSIT COUNTRIES.

5 (a) APPLICATION OF RESTRICTION.—Section

6 7201(a)(6) shall apply to any major illicit drug producing

7 country and any major drug-transit country if the Presi8 dent determines, at the time of the submission of the re9 port required by section 7303, that during the previous

10 fiscal year the country has not cooperated with the United

11 States, and has otherwise not taken adequate steps to con12 trol the illicit cultivation, production, and smuggling of,

13 trafficking in, and abuse of narcotic and psychotropic

14 drugs. The President may rescind such a determination,

15 and section 7201(a)(6) shall cease to apply, if the Presi16 dent subsequently determines that the country has re17 sumed cooperating with the United States, or otherwise

18 has taken adequate steps to control the illicit cultivation,

19 production, and smuggling of, trafficking in, and abuse

20 of narcotic and psychotropic drugs.

21 (b) WITHHOLDING.—For any country that was a

22 major illicit drug producing or drug-transit country (as

23 defined in sections 8551(a) (11) and (12)) during the pre24 vious fiscal year, the President may withhold from obliga25 tion or expenditure up to fifty percent of assistance which
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1 is allocated to such country each fiscal year in the report

2 required by section 7304 until the determination provided

3 for in section 7206 is made.

4 (c) In implementing subsection (a), the President

5 should consider the extent to which the country has—

6 (1) accomplished the goals described in an ap7 plicable bilateral narcotics agreement with the Unit8 ed States or a multilateral agreement;

9 (2) investigated and immobilized major organi10 zations involved in the production, processing, or

11 distribution of narcotics and dangerous drugs;

12 (3) achieved significant increases in seizures of

13 the proceeds and instrumentalities of the illicit drug

14 trade;

15 (4) achieved significant reductions, where appli16 cable, in the net production of illicit narcotic crops

17 through forced or voluntary eradication efforts;

18 (5) prevented and punished the laundering in

19 that country of drug-related moneys;

20 (6) prevented and punished public corruption

21 that facilitates the production, processing, or ship22 ment of narcotic and psychotropic drugs and other

23 controlled substances, or that discourages the inves24 tigation or prosecution of such acts;
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1 (7) processed expeditiously United States and

2 other extradition requests related to narcotics traf3 ficking;

4 (8) increased public awareness of the heinous

5 nature of drug abuse and reduced the demand and

6 the consumption of narcotics and dangerous drugs;

7 and

8 (9) if it is a producer of licit opium, taken steps

9 to prevent significant diversion of its licit cultivation

10 and production into the illicit market, to maintain

11 production of stockpiles at levels no higher than

12 those consistent with licit market demands, and to

13 prevent illicit cultivation and production.

14 SEC. 7207. ASSISTANCE FOR ELECTIONS.

15 Funds made available for assistance under this Act

16 that are used to enhance the independence and perform17 ance of electoral processes may not be used for the pur18 pose of influencing the outcome of any election in any

19 country.

20 SEC. 7208. ASSIGNMENT OF PERSONNEL.

21 (a) ASSIGNMENT OR DETAIL.—Members of the

22 Armed Forces may be assigned or detailed to perform

23 functions related to assistance under this Act adminis24 tered through the Department of Defense, provided they

25 not perform duties of a combatant nature, including any
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1 duty related to training and advising that may engage

2 United States Armed Forces personnel in combat activi3 ties, outside the United States in connection with the per4 formance of those defense services.

5 (b) EXCEPTION.—The limitation contained in sub6 section (a) shall not apply if the President determines, and

7 reports to the Congress, that its application would not be

8 in the national interest of the United States.

9 SEC. 7209. ASSISTANCE LIMITED TO ECONOMIC PROGRAMS.

10 (a) IN GENERAL.—Assistance provided under title I

11 of this Act may not be used for military or paramilitary

12 purposes.

13 (b) EXCEPTION FOR CERTAIN PROGRAMS.—The pro14 visions of subsection (a) of this section shall not apply to

15 economic assistance involving the participation of military

16 personnel in training activities, conferences, and other sus17 tainable development programs consistent with the pur18 poses of section 1102.

19 SEC. 7210. IMPACT OF SUSTAINABLE DEVELOPMENT AS20 SISTANCE ON ENVIRONMENT AND NATURAL

21 RESOURCES.

22 (a) STATEMENT OF POLICY.—It is the sense of the

23 Congress that—

24 (1) the economic and social well-being and the

25 security of the United States and other countries are
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1 affected by how the world’s environment and phys2 ical resource base are managed, and that consump3 tion patterns, systems of industrial and agricultural

4 production, and the manner of use of natural re5 sources all have an impact on the opportunities for

6 long-term development and growth and survival for

7 all countries;

8 (2) environmentally responsible management of

9 physical resources is necessary by both developed

10 and developing countries to insure their availability

11 for future generations and to assure that the bur12 dens of improved resource management do not fall

13 disproportionately on the poor;

14 (3) sustainable development is development that

15 meets the needs of the present without compromis16 ing the ability of future generations to meet their

17 own needs; and

18 (4) sustainable development programs author19 ized by this Act should assist countries to adopt poli20 cies and to carry out programs that promote eco21 nomic growth that is environmentally sound.

22 (b) IMPACT ASSESSMENT.—The President, in imple23 menting sustainable development programs under this

24 Act, should take fully into account the impact of such pro25 grams and projects upon the environment and natural re-
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1 sources of developing countries. Subject to such proce2 dures as the President considers appropriate, the Presi3 dent should—

4 (1) prepare and take fully into account an ini5 tial environmental examination of every program or

6 project to determine whether it significantly affects

7 the environment;

8 (2) prepare and take fully into account an envi9 ronmental impact statement for any program or

10 project significantly affecting the environment of the

11 global commons outside the jurisdiction of any coun12 try, the environment of the United States, or other

13 aspects of the environment which the President may

14 specify; and

15 (3) prepare and take fully into account an envi16 ronmental assessment of any proposed program or

17 project significantly affecting the environment of any

18 foreign country.

19 Where appropriate, local technical resources should be

20 used in preparing environmental impact statements and

21 environmental assessments pursuant to this section.

22 (c) EXCEPTIONS.—The President should establish ex23 ceptions for emergency conditions and for cases in which

24 implementation of procedures described in subsection (b)
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1 would be seriously detrimental to the foreign policy inter2 ests of the United States.

3 CHAPTER 3—REPORTS AND NOTIFICATIONS TO

4 CONGRESS

5 SEC. 7301. CONGRESSIONAL PRESENTATION DOCUMENTS.

6 (a) REQUIREMENT FOR SUBMISSION.—The President

7 shall prepare, and submit to the Congress in a timely man8 ner, annual congressional documents for the programs au9 thorized under titles I, II, and III of this Act.

10 (b) MATERIALS TO BE INCLUDED.—The documents

11 submitted pursuant to subsection (a) shall include—

12 (1) the rationale for the allocation of assistance

13 or contributions to each country, regional, or cen14 trally funded program, or activities under section

15 3102;

16 (2) a description of how each program or activ17 ity under section 3102 supports the objectives of the

18 title for which such program is being justified in19 cluding, for programs administered by the United

20 States Agency for International Development, to the

21 extent determined at the time of submission of these

22 documents, the strategic objectives for such pro23 grams; and
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1 (3) a description of planned country, regional,

2 or centrally funded programs or activities under sec3 tion 3102 for the coming fiscal year.

4 SEC. 7302. HUMAN RIGHTS POLICY AND REPORTS.

5 (a) PROMOTION OF HUMAN RIGHTS.—It is the sense

6 of the Congress that the United States should, in accord7 ance with its international obligations as set forth in the

8 Charter of the United Nations and in keeping with the

9 constitutional heritage and traditions of the United States,

10 promote and encourage increased respect for human rights

11 and fundamental freedoms throughout the world without

12 distinction as to race, sex, language, or religion.

13 (b) CONDUCT OF ASSISTANCE.—In furtherance of

14 subsection (a), the President should formulate and con15 duct United States assistance in a manner which will—

16 (1) promote and advance human rights;

17 (2) strengthen a relationship between civilian

18 and military sectors appropriate to a democratic sys19 tem of government; and

20 (3) avoid identification of the United States,

21 through these programs, with governments which

22 deny to their people internationally recognized

23 human rights and fundamental freedoms in violation

24 of international law or in contravention of the policy
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1 of the United States as expressed in this section or

2 otherwise.

3 (c) MATTERS TO BE CONSIDERED.—In carrying out

4 subsection (b) and in preparing the annual reports re5 quired by subsection (d), consideration should be given to

6 the following:

7 (1) The relevant findings of appropriate inter8 national organizations and nongovernmental organi9 zations.

10 (2) The extent of cooperation by the govern11 ment in question in permitting an unimpeded inves12 tigation by indigenous nongovernmental organiza13 tions, other nongovernmental organizations, and

14 international organizations (such as the Inter15 national Committee of the Red Cross), of alleged

16 violations of internationally recognized human

17 rights.

18 (d) ANNUAL HUMAN RIGHTS REPORT.—In further19 ance of subsections (a) and (b), the President shall trans20 mit to the Congress, not later than January 31 each year,

21 a full and complete report with respect to practices regard22 ing the status of internationally recognized human rights,

23 regarding whether the country engages in a consistent pat24 tern of gross violations of internationally recognized

25 human rights within the meaning of section 8551(a)(5).
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1 The report shall be submitted with respect to every foreign

2 country that is a member of the United Nations. Wherever

3 appropriate, such reports shall include information on

4 practices regarding coercion in population control, includ5 ing coerced abortion and involuntary sterilization. The re6 port shall also include the steps taken to alter United

7 States programs under this Act in any country because

8 of human rights considerations.

9 (e) INFORMATION TO BE PROVIDED.—Each annual

10 report under subsection (d), shall include—

11 (1) information about observance of and respect

12 for human rights and fundamental freedom in the

13 country in question, and

14 (2) a detailed description of practices by the re15 cipient government with respect to human rights and

16 fundamental freedom, including where appropriate

17 information provided by organizations, including

18 nongovernmental organizations.

19 SEC. 7303. INTERNATIONAL NARCOTICS CONTROL REPORT.

20 Not later than March 1 of each year, the President

21 shall transmit to the Speaker of the House of Representa22 tives, and to the Committee on Foreign Relations of the

23 Senate, a comprehensive report on the state of inter24 national narcotics production and trafficking, and on

25 United States efforts to prevent the illicit cultivation and
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1 manufacture of and trafficking in narcotics and psycho2 tropic drugs and other controlled substances.

3 SEC. 7304. ANNUAL ALLOCATION REPORT.

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

5 later than 30 days after the enactment of any law appro6 priating funds to carry out any provision of this Act, the

7 President shall notify the Congress of—

8 (1) each foreign country and international orga9 nization to which the United States Government in10 tends to provide any portion of the funds under such

11 law; and

12 (2) the amount of funds under that law, by cat13 egory of assistance, that the United States Govern14 ment intends to provide to each such country or or15 ganization.

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

17 with respect to—

18 (1) funds appropriated under section 8509 or

19 section 8510 (relating to operating expenses of the

20 United States Agency for International Development

21 and the Inspector General of that agency, respec22 tively); or

23 (2) any law making continuing appropriations.
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1 (c) USE OF SPECIAL AUTHORITY.—The authority of

2 section 7201 of this Act may not be used to waive the

3 provisions of this section.

4 SEC. 7305. NOTIFICATION OF PROGRAM CHANGES.

5 (a) NOTIFICATION OF PROGRAM CHANGES.—Unless

6 the Committee on Foreign Affairs and the Committee on

7 Appropriations of the House of Representatives and the

8 Committee on Foreign Relations and the Committee on

9 Appropriations of the Senate are notified at least fifteen

10 days in advance, funds appropriated for a fiscal year to

11 carry out this Act may not be obligated for any assistance

12 or contributions under any title of this Act—

13 (1) for programs administered by the United

14 States Agency for International Development under

15 title I—

16 (A) for a country, regional, or centrally

17 funded program for which assistance under that

18 title was not justified in congressional presen19 tation documents for that fiscal year;

20 (B) for a country, regional, or centrally

21 funded program in excess of the amount justi22 fied under that title in congressional presen23 tation documents or allocated pursuant to sec24 tion 7304 for that fiscal year;
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1 (C) for a project or activity not previously

2 justified to such Committees or, in the case of

3 programs that are administered through strate4 gic objectives, for a new strategic objective for

5 a country, regional or centrally funded pro6 gram; or

7 (D) for a nonproject assistance activity, in8 cluding commodity import program assistance;

9 (2) for assistance administered through the De10 partment of Defense under this Act—

11 (A) for a country, international organiza12 tion or arrangement, for which assistance under

13 that title was not justified in congressional

14 presentation documents for that fiscal year;

15 (B) in excess of the amount allocated pur16 suant to section 7304 for that country, organi17 zation or arrangement, under that title for that

18 fiscal year; or

19 (C) for the provision of major defense

20 equipment, other than conventional ammuni21 tion, or other major defense items defined to be

22 aircraft, ships, missiles, or combat vehicles not

23 previously justified to Congress or twenty per24 cent in excess of the quantities justified to Con25 gress; and
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1 (3) for other programs under this Act—

2 (A) for a country, international organiza3 tion or arrangement, or operation for which as4 sistance or contribution under that title was not

5 justified in congressional presentation docu6 ments for that fiscal year;

7 (B) in excess of the amount allocated pur8 suant to section 7304 for that country or orga9 nization or arrangement under that title for

10 that fiscal year; or

11 (C) for a project, activity, or operation not

12 previously justified, or in excess of the amount

13 previously justified, to such Committees.

14 (b) APPROPRIATIONS SUBJECT TO REQUIRE15 MENTS.—Subsection (a) applies with respect to all funds

16 appropriated for assistance and contributions under this

17 Act other than—

18 (1) chapters 1 and 2 of title V (relating to the

19 Overseas Private Investment Corporation and the

20 Trade and Development Agency, respectively),

21 (2) section 1104 (relating to the micro and

22 small enterprise development, housing and urban,

23 and other guaranty programs), or
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1 (3) programs for refugee assistance and for dis2 aster relief and rehabilitation, including assistance

3 programs under title IV of this Act.

4 (c) EMERGENCY EXCEPTIONS.—

5 (1) WAIVER.—Subsection (a), or any similar re6 quirement to provide advance notification to the

7 Congress or Congressional committees, may be

8 waived if the President determines that doing so is

9 necessitated by emergency circumstances.

10 (2) EXERCISE OF AUTHORITY.—In the case of

11 any waiver under paragraph (1) notification to the

12 Congress or the appropriate Congressional commit13 tees shall be provided as early as practicable, but in

14 no event later than three days after taking the ac15 tion to which such notification requirement was ap16 plicable. Any notification under this paragraph shall

17 contain an explanation of the circumstances neces18 sitating the use of the authority of this subsection.

19 SEC. 7306. EVALUATION AND MONITORING OF PROGRAM

20 PERFORMANCE.

21 (a) NEED FOR EVALUATION.—In order to effectively

22 and responsibly manage the resources made available for

23 sustainable development purposes, the President must

24 have a capacity to evaluate objectively the extent of
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1 progress in achieving development results and to derive

2 lessons from that development experience.

3 (b) ACTIONS TO BE TAKEN.—In furtherance of sub4 section (a), the President shall establish a program per5 formance, monitoring, and evaluation capacity within the

6 United States Agency for International Development that

7 will do the following:

8 (1) Enhance, through training and other

9 means, the use of program performance, monitoring,

10 and evaluation as a management tool, by both the

11 agency and its counterparts in countries receiving

12 assistance, in the planning, designing, and imple13 mentation of foreign assistance projects and pro14 grams.

15 (2) Develop a program performance information

16 system to afford agency managers at all levels, and

17 counterparts in countries receiving assistance, a

18 means for monitoring and assessing achievement of

19 impact and interim performance of the agency’s

20 major programs in support of the strategic manage21 ment of economic assistance.

22 (3) Prepare and disseminate objective and peri23 odic reports on the progress of the agency in meet24 ing development objectives and on lessons learned

25 from its development programs and assure the
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1 widest possible distribution of findings, particularly

2 to beneficiaries of projects and programs.

3 (4) Establish a system which ensures the incor4 poration of evaluation findings in decisions of the

5 agency about program direction and resource alloca6 tion.

7 (c) The President shall prepare an annual report to

8 the Congress to include the following:

9 (1) An assessment of progress toward the

10 achievement of sustainable development objectives,

11 based on the findings of program performance mon12 itoring and evaluation studies conducted by the

13 United States Agency for International Development

14 and on such other empirical analyses as may be ap15 propriate.

16 (2) An analysis, on a country-by-country basis,

17 of the results of sustainable development in each

18 country receiving assistance under title I from such

19 Agency, including a discussion of the United States

20 interests and objectives that were served by such as21 sistance.
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1 TITLE VIII—GENERAL PROVISIONS

2 CHAPTER 1—EXERCISE AND COORDINATION OF

3 FUNCTIONS

4 SEC. 8101. DELEGATIONS BY THE PRESIDENT.

5 (a) IN GENERAL.—The President may exercise any

6 functions conferred upon the President by this Act

7 through such agency or officer of the United States Gov8 ernment as the President shall direct.

9 (b) AUTHORITY TO ISSUE REGULATIONS AND DELE10 GATE.—The head of any agency or such officer exercising

11 functions under this Act—

12 (1) may from time to time promulgate such

13 rules and regulations as may be necessary to carry

14 out such functions; and

15 (2) may delegate authority, including to any

16 other agency upon obtaining the concurrence of the

17 head of that agency, to perform any such functions,

18 including, if he or she shall so specify, the authority

19 successively to redelegate any of such functions.

20 SEC. 8102. ROLE OF THE SECRETARY OF STATE.

21 (a) CONTINUOUS SUPERVISION.—Under the direction

22 of the President, the Secretary of State shall be respon23 sible for the continuous supervision and general direction

24 of assistance under this Act, including determining wheth25 er such assistance shall involve the provision of defense
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1 articles and defense services, to the end that all such as2 sistance is effectively integrated both at home and abroad

3 and the foreign policy of the United States is best served

4 thereby.

5 (b) POWERS AND FUNCTIONS.—Nothing in this Act

6 shall be construed to infringe upon the powers and func7 tions of the Secretary of State.

8 SEC. 8103. THE SECRETARY OF DEFENSE.

9 (a) With respect to assistance under this Act admin10 istered through the Department of Defense, the Secretary

11 of Defense shall have primary responsibility for—

12 (1) the determination of military end-item re13 quirements;

14 (2) the procurement of military equipment in a

15 manner which permits its integration with service

16 programs;

17 (3) the monitoring of end-item use by the recip18 ient countries;

19 (4) the supervision of the training of foreign

20 military and related civilian personnel;

21 (5) the movement and delivery of military end22 items; and

23 (6) within the Department of Defense the per24 formance of any other functions with respect to the
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1 furnishing of assistance administered through the

2 Department of Defense under this Act.

3 (b) The establishment of priorities in the procure4 ment, delivery, and the allocation of military equipment

5 shall be determined by the Secretary of Defense.

6 SEC. 8104. UNITED STATES AGENCY FOR INTERNATIONAL

7 DEVELOPMENT.

8 The United States Agency for International Develop9 ment shall be an agency of the United States under the

10 foreign policy guidance and subject to the supervision and

11 direction of the Secretary of State.

12 SEC. 8105. THE DIRECTOR OF THE ARMS CONTROL AND

13 DISARMAMENT AGENCY.

14 Decisions to furnish assistance administered through

15 the Department of Defense under subchapter A, chapter

16 1, title II, and chapter 3, title III shall be made in coordi17 nation with the Director of the United States Arms Con18 trol and Disarmament Agency and shall take into account

19 the Director’s opinion as to whether such assistance will—

20 (1) contribute to an arms race;

21 (2) increase the possibility of outbreak or esca22 lation of conflict; or

23 (3) prejudice the development of bilateral or

24 multilateral arms control arrangements.
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1 SEC. 8106. AUTHORITY TO ESTABLISH OFFICES ABROAD.

2 The President may maintain offices or staffs outside

3 the United States in such countries and for such period

4 of time as may be necessary to carry out this Act.

5 SEC. 8107. PRESIDENTIAL FINDINGS AND DETERMINA6 TIONS.

7 (a) FINDINGS AND DETERMINATIONS TO BE WRIT8 TEN AND SIGNED.—In any case in which the President

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

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

11 foreign assistance authorizing or appropriations legisla12 tion, to the Congress or to any committee or officer of

13 either House of Congress concerning any finding or deter14 mination, that finding or determination shall be reduced

15 to writing and signed by the President.

16 (b) RESTRICTION.—No action shall be taken pursu17 ant to any such finding or determination prior to the date

18 on which that finding or determination is reduced to writ19 ing and signed by the President.

20 (c) PUBLICATION IN FEDERAL REGISTER.—Each

21 such finding or determination shall be published in the

22 Federal Register as soon as practicable after it has been

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

24 case in which the President concludes that such publica25 tion would be harmful to the national security of the Unit26 ed States, only a statement that a determination or find-
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1 ing has been made by the President, including the name

2 and section of the Act under which it was made, shall be

3 published.

4 CHAPTER 2—ADMINISTRATIVE AUTHORITIES

5 Subchapter A—General Authorities

6 SEC. 8201. ALLOCATION OF FUNDS AND REIMBURSEMENT

7 AMONG AGENCIES.

8 (a) ALLOCATIONS OR TRANSFERS TO AGENCIES.—

9 The President, or with respect to funds appropriated to

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

11 may allocate or transfer to any agency of the United

12 States Government any funds available for providing as13 sistance under this or any other Act, including any ad14 vance to the United States Government by any country

15 or international organization for the procurement of arti16 cles or services. Such funds shall be available for obliga17 tion and expenditure for the purposes for which author18 ized, in accordance with the authority pursuant to which

19 they were made available or the authority governing the

20 activities of the agency to which such funds are allocated

21 or transferred.

22 (b) PROCUREMENT FROM OTHER AGENCIES.—

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

24 States Government carrying out functions under this

25 Act may utilize the services and the facilities of, or
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1 procure articles from, any agency of the United

2 States Government as the President shall direct, or

3 with the consent of the head of such agency.

4 (2) SEPARATE ACCOUNT.—Funds allocated pur5 suant to this subsection to any such agency may be

6 established in separate appropriation accounts on

7 the books of the Treasury.

8 (c) REIMBURSEMENT TO AGENCIES.—

9 (1) GENERAL.—In the case of any article, serv10 ice, or facility procured from any agency of the

11 United States Government to carry out any provi12 sion of this Act (except with respect to assistance

13 under sections 3103, 3204 and 7111, 7115(b)), re14 imbursement or payment shall be made to such

15 agency from funds available to carry out that provi16 sion.

17 (2) AMOUNT OF REIMBURSEMENT.—Such reim18 bursement or payment shall be at—

19 (A) replacement cost,

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

21 (C) in the case of defense articles procured

22 from the Department of Defense, value as de23 fined in section 8551(20), or, if required by

24 law, actual costs,
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1 (D) in the case of services procured from

2 the Department of Defense, the amount of the

3 additional costs incurred by the Department of

4 Defense in providing such services, or, if re5 quired by law, actual costs, or

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

7 owning or disposing agency.

8 (3) CREDITING OF REIMBURSEMENT.—The

9 amount of any such reimbursement or payment shall

10 either be credited to current applicable appropria11 tions, funds, or accounts of such agency, to be avail12 able for the same purposes and for the same time

13 period as the appropriation, fund or account to

14 which transferred, or any such credited funds shall

15 remain available for such purposes until expended.

16 (4) LIMITATION ON DEPARTMENT OF DEFENSE

17 DRAWDOWNS.—During any fiscal year, the aggre18 gate value of articles and services of which the

19 President may direct the drawdown from the inven20 tory and resources of the Department of Defense

21 may not exceed—

22 (A) $50,000,000 under section 3103,

23 (B) $15,000,000 under section 3204,

24 (C) $75,000,000 under section 7111(b),

25 and
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1 (D) $5,000,000 under section 7115(b).

2 (d) REIMBURSEMENT TO THE DEPARTMENT OF DE3 FENSE.—Reimbursement or payment to the Department

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

5 members of the Armed Forces (other than the Coast

6 Guard) and unfunded estimated costs of civilian retire7 ment and other benefits, unless otherwise required by law.

8 (e) ESTABLISHMENT OF ACCOUNTS.—

9 (1) AUTHORITY TO ESTABLISH; USES.—In fur10 nishing assistance under this or any other Act, ac11 counts may be established on the books of any agen12 cy of the United States Government or, on terms

13 and conditions approved by the Secretary of the

14 Treasury, in banking institutions in the United

15 States—

16 (A) against which letters of commitment

17 may be issued which shall constitute recordable

18 obligations of the United States Government,

19 and moneys due or to become due under such

20 letters of commitment shall be assignable under

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

22 3727(c) of title 31, United States Code, and the

23 second and third paragraphs of section 3737 of

24 the Revised Statutes of the United States (41

25 U.S.C. 15); and
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1 (B) from which disbursements may be

2 made to, or withdrawals may be made by, recip3 ient countries or agencies, organizations, or per4 sons upon presentation of contracts, invoices, or

5 other appropriate documentation.

6 (2) ACCOUNTING FOR EXPENDITURES.—Ex7 penditure of funds which have been made available

8 through accounts established under paragraph (1)

9 shall be accounted for on standard documentation

10 required for expenditure of funds of the United

11 States Government.

12 (f) CHARGING TO APPROPRIATIONS.—

13 (1) INITIAL CHARGING.—Any appropriation or

14 account available to carry out provisions of this Act

15 may initially be charged in any fiscal year, within

16 the limit of available funds, to finance expenses for

17 which funds are available in other appropriations or

18 accounts under that title.

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

20 fiscal year, such expenses shall be finally charged to

21 applicable appropriations or accounts with proper

22 credit to the appropriations or accounts initially uti23 lized for financing purposes, except that such final

24 charges shall not be required in the case of expenses

25 (other than those provided under sections 8509 and
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1 8510) incurred in furnishing assistance where it is

2 determined that the accounting costs of identifying

3 the applicable appropriation or account to which

4 such expenses should be charged would be dispropor5 tionate to the advantage to be gained.

6 (3) APPLICATION TO PROGRAMS ADMINISTERED

7 THROUGH DOD.—This subsection shall not apply to

8 assistance administered through the Department of

9 Defense under this Act.

10 (g) RESPONSIBILITY OF AGENCIES.—The agency re11 ceiving the funds pursuant to the authority of subsections

12 (a) or (b) shall be the agency responsible for the manage13 ment and use of such funds.

14 SEC. 8202. GENERAL AUTHORITIES.

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

16 specifically prohibited in this Act, assistance under this

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

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

19 or repayment (including repayment in foreign currencies

20 or by transfer to the United States Government of arti21 cles), or as a contribution to an international organization

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

23 to the achievement of the purposes of this Act.

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

25 furnish assistance under this Act on such terms and condi-
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1 tions (consistent with other provisions of law) as the Presi2 dent deems appropriate, and, consistent with the provi3 sions of this Act, may charge such fees for guarantees and

4 loans under this Act as the President deems appropriate.

5 Credit assistance shall be consistent with the provisions

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

7 of contributions or other assistance provided for an inter8 national organization or arrangement under this or any

9 other Act, such organization or arrangement may utilize

10 its own procurement, administrative, accounting, and

11 audit rules and procedures.

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

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

14 the President in providing assistance under this or any

15 other Act may make loans (in conformity with the provi16 sions of the Federal Credit Reform Act of 1990), ad17 vances, and grants to, make and perform agreements and

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

19 person, corporation, or other body of persons, any govern20 ment or government agency, and any international organi21 zation or arrangement.

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

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

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

25 devise, bequest, grant, or otherwise for such purpose.
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1 (e) INSURANCE.—

2 (1) FOREIGN PARTICIPANTS.—Any agency of

3 the United States Government is authorized to pay

4 the cost of health and accident insurance for foreign

5 participants in any program of furnishing assistance

6 administered by such agency while such participants

7 are absent from their homes for the purpose of par8 ticipation in such program.

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

10 United States Government is authorized to pay the

11 cost of health and accident insurance for foreign em12 ployees of that agency while those employees are ab13 sent from their places of employment abroad for

14 purposes of training or other official duties.

15 (f) ADMISSION TO UNITED STATES.—Alien partici16 pants in any program of furnishing assistance under this

17 Act may be admitted to the United States if otherwise

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

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

20 1101(A)(15)), for such time and under such conditions as

21 may be prescribed by regulations promulgated by the Sec22 retary of State and the Attorney General.

23 (g) ASSISTANCE AUTHORITIES.—In furnishing and

24 administering assistance under this Act, the President—
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1 (1) may issue letters of credit and letters of

2 commitment;

3 (2) may collect, compromise, reschedule or oth4 erwise settle any obligations assigned to, or held by,

5 and any legal or equitable rights accruing to, the

6 President and may (as the President deems appro7 priate) refer any such obligations or rights to the

8 Attorney General for suit or collection;

9 (3) may—

10 (A) acquire and dispose of (upon such

11 terms and conditions as the President deems

12 appropriate) any property, including any instru13 ment evidencing indebtedness or ownership, and

14 (B) guarantee payment against any such

15 instrument;

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

17 the necessity for, obligations and expenditures of

18 funds used in furnishing and administering such as19 sistance and the manner in which such obligations

20 and expenditures shall be incurred, allowed, and

21 paid, subject to provisions of law specifically applica22 ble to corporations of the United States Govern23 ment;

24 (5) shall cause to be maintained an integral set

25 of accounts which shall be audited by the General
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1 Accounting Office in accordance with principles and

2 procedures applicable to commercial corporate trans3 actions as provided by chapter 91 of title 31, United

4 States Code; and

5 (6) may transfer such of the funds appropriated

6 or otherwise made available under titles II and III

7 of this Act as the President may determine for as8 sistance to a recipient country to the account in

9 which funds for the procurement of defense articles

10 and defense services under section 21 and section 22

11 of the Arms Export Control Act have been deposited

12 for such recipient, to be merged with such deposited

13 funds, and to be used solely to meet obligations of

14 the recipient for payment for sales under that Act.

15 Sales which are wholly paid from funds made avail16 able on a nonrepayable basis and transferred under

17 his paragraph, from funds made available under the

18 former authority of section 503(a)(3) of the Foreign

19 Assistance Act of 1961, or from funds made avail20 able on a non-repayable basis under the former au21 thority of section 23 of the Arms Export Control Act

22 shall be priced to exclude the costs of salaries of

23 members of the Armed Forces of the United States

24 (other than the Coast Guard).
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1 (h) GUARANTEES.—Guarantees issued to carry out

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

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

4 and credit of the United States may be pledged for

5 the full payment and performance of guarantees is6 sued under this Act or predecessor legislation.

7 (2) CHARGES.—The President may charge ap8 propriate fees and/or interest in connection with the

9 activities carried out under such authority.

10 (3) RELATIONSHIP TO OTHER PROVISIONS OF

11 LAW.—Guarantees may be provided under this Act

12 without regard to section 8402 of this Act.

13 (4) DENOMINATION OF LIABILITY.—The losses

14 guaranteed may be in dollars or in other currencies.

15 In the case of losses guaranteed in currencies other

16 than dollars, the guarantees issued shall be subject

17 to an overall payment limitation expressed in dollars.

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

19 The President may use funds made available under this

20 Act to pay the cost (as defined in section 13201 of the

21 Budget Enforcement Act of 1990) of direct loans and loan

22 guarantees made or entered into (and associated adminis23 trative costs) in furtherance of the purposes of this Act.

24 Funds appropriated to pay the cost (as defined in section

25 13201 of the Budget Enforcement Act of 1990) of direct
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1 loans and loan guarantees made or entered into to carry

2 out the provisions of this Act shall be provided in conform3 ity with section 504(b)(1) of the Federal Credit Reform

4 Act of 1990.

5 (j) CLAIMS RELATING TO GUARANTEES.—Claims

6 arising as a result of any guarantee program authorized

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

8 result thereof may be arbitrated with the consent of the

9 parties, on such terms and conditions as the President

10 may direct. Payment made pursuant to any such settle11 ment, or as a result of an arbitration award, shall be final

12 and conclusive notwithstanding any other provision of law.

13 (k) FINANCIAL TRANSACTIONS WITH FOREIGN GOV14 ERNMENTS IN DEFAULT OF OBLIGATIONS TO THE

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

16 Code, shall not apply to any person—

17 (1) who acts for or participates in any oper18 ation or transaction arising under this Act, or

19 (2) who acquires any obligation issued in con20 nection with any operation or transaction arising

21 under this Act.

22 (l) EDUCATIONAL INSTITUTIONS.—Any cost-type

23 contract or agreement (including grants) entered into with

24 an institution of higher education for the purpose of carry25 ing out programs authorized by this Act may provide for
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1 the payment of the reimbursable indirect costs of that in2 stitution on the basis of predetermined fixed-percentage

3 rates applied to the total or an element thereof, of the

4 reimbursable direct costs incurred.

5 (m) TRAINING WORKING CAPITAL FUND.—The head

6 of any agency administering assistance under this Act is

7 authorized to establish, with funds made available for as8 sistance under this Act (or predecessor legislation) admin9 istered by such agency, a working capital fund, which shall

10 be available without fiscal year limitation, for expenses

11 and equipment necessary to the maintenance and oper12 ation of a program of providing short-term and long-term

13 training and training-related services of foreign nationals

14 in the United States or third countries, including such ex15 penses as (1) tuition and fees, (2) room, board, and main16 tenance allowances, and (3) contracts and the cost of ad17 ministering contracts entered into in furtherance of the

18 program.

19 (n) MULTIYEAR COMMITMENTS.—A contract or

20 agreement which entails commitments for the expenditure

21 of funds under this Act may, subject to any future action

22 of the Congress, extend at any time for not more than

23 5 years.
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1 SEC. 8203. AUTHORIZED ADMINISTRATIVE USES OF FUNDS.

2 (a) PERSONNEL, PRINTING, PROCUREMENT OF SUP3 PLIES, AND OTHER ADMINISTRATIVE EXPENSES.—Funds

4 made available to carry out this Act may be used for the

5 following:

6 (1) Compensation, allowances, and travel of

7 personnel, including Foreign Service personnel,

8 whose services are utilized primarily for the purposes

9 of this Act, and for other administrative and operat10 ing expense purposes (other than compensation of

11 personnel) without regard to such laws and regula12 tions governing the obligation and expenditure of

13 funds of the United States Government as may be

14 necessary to accomplish the purposes of this Act.

15 (2) Printing and binding without regard to the

16 provisions of any other law.

17 (3) Expenditures outside the United States for

18 the procurement of supplies and services and for

19 other administrative and operating purposes (other

20 than compensation of personnel) without regard to

21 the Claims Act, 31 U.S.C. 3721 and such laws and

22 regulations governing the obligation and expenditure

23 of funds of the United States Government (other

24 than sections 1341, 1342, and 1517 of title 31,

25 United States Code) as may be necessary to accom26 plish the purposes of this Act.
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1 (b) USES OF ASSISTANCE FUNDS.—

2 (1) AUTHORIZED USES.—Funds described in

3 paragraph (2) shall be available for the following:

4 (A) Expenses of attendance at meetings

5 concerned with the purposes of this Act, includ6 ing (notwithstanding section 1346(a) and

7 1346(c) of title 31, United States Code), ex8 penses in connection with meetings of persons

9 whose employment is authorized by section

10 8503.

11 (B) Contracting with individuals for per12 sonal services. Such individuals shall not be re13 garded as employees of the United States Gov14 ernment for the purpose of any law adminis15 tered by the Office of Personnel Management,

16 except that the head of the contracting agency

17 may determine the applicability to such individ18 uals of any other law administered by such

19 agency concerning the employment of such indi20 viduals.

21 (C) Purchase, maintenance, operation, and

22 hire of aircraft, except that aircraft for admin23 istrative purposes may be purchased only as

24 specifically provided for in an appropriation or

25 other Act.
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1 (D)(i) Purchase and hire of passenger

2 motor vehicles, subject to clause (ii).

3 (ii) Passenger motor vehicles other than

4 one for the official use of the Administrator of

5 the United States Agency for International De6 velopment may be purchased for use in the

7 United States only as may be specifically pro8 vided in an appropriation or other Act.

9 (E) Entertainment and representation.

10 (F) Awards.

11 (G) Exchange of funds without regard to

12 loss by exchange.

13 (H) Expenditures (not to exceed $50,000

14 in any fiscal year except as may otherwise be

15 provided in an appropriation or other Act) of a

16 confidential character other than entertainment.

17 A certificate of the amount of such expenditure,

18 the nature of which it is considered inadvisable

19 to specify, shall be made by the President, and

20 every such certificate shall be deemed a suffi21 cient voucher for the amount therein specified.

22 (I) Insurance of official motor vehicles or

23 aircraft acquired for use in foreign countries.

24 (J) Expenses of—
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1 (i) preparing and transporting to their

2 former homes (or with respect to foreign

3 participants engaged in any program under

4 this Act to their former homes or places of

5 burial), and

6 (ii) caring for and disposing of the re7 mains of an individual, or the remains of

8 a member of an individual’s family, who

9 may die while such individual is away from

10 home participating in activities carried out

11 with funds described in paragraph (2).

12 (K) Purchase of uniforms.

13 (L) Payment of per diem in lieu of subsist14 ence to foreign participants engaged in any pro15 gram under this Act while such participants are

16 away from their homes in countries other than

17 the United States, at rates not in excess of

18 those prescribed by the standardized Govern19 ment travel regulations, notwithstanding any

20 other provision of law.

21 (M) Use in accordance with authorities of

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

23 3901 et seq.) not otherwise provided for.

24 (N) Ice and drinking water for use outside

25 the United States.
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1 (O) Services of commissioned officers of

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

4 services, the National Oceanic and Atmospheric

5 Administration may appoint not to exceed 20

6 commissioned officers in addition to those oth7 erwise authorized.

8 (P) Expenses in connection with—

9 (i) travel of personnel outside the

10 United States, including travel expenses of

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

13 travel), and the transportation of personal

14 effects, household goods, and automobiles

15 of such personnel when any part of such

16 travel or transportation begins in one fiscal

17 year pursuant to travel orders issued in

18 that fiscal year, notwithstanding the fact

19 that such travel or transportation may not

20 be completed during the same fiscal year;

21 and

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

24 and the costs of storing automobiles of

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

2 storage.

3 (Q) Assistance for the implementation of

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

7 Act of 1985.

8 (R) Other expenses determined by the

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

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

12 (1) applies to—

13 (A) appropriations to carry out this Act,

14 (B) allocations or transfers to or from any

15 agency of the United States Government, from

16 other appropriations, for functions directly re17 lated to the purposes of this Act, and

18 (C) funds made available for other pur19 poses to the United States Agency for Inter20 national Development.

21 (c) FACILITIES.—

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

23 HOSPITALS.—Notwithstanding any other provision

24 of law, funds available for assistance under this Act

25 may be used in any fiscal year (in addition to funds
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1 available for such use under other authorities in this

2 Act)—

3 (A) to rent, lease, construct or otherwise

4 acquire essential living quarters, office space,

5 and necessary supporting facilities for use of

6 personnel carrying out activities authorized by

7 this Act, including to maintain, furnish, im8 prove, and make necessary repairs to such

9 property, which may also include the cost of

10 fuel, water, and utilities for such properties;

11 (B) to construct or otherwise acquire out12 side the United States schools (including dor13 mitories and boarding facilities) and hospitals

14 for use of personnel carrying out activities au15 thorized by this Act, United States Government

16 personnel, and their dependents; and

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

18 schools and hospitals.

19 (2) DISPOSAL.—Property acquired under this

20 subsection (or predecessor provisions of this Act)

21 may be disposed of, and the proceeds of such dis22 posal shall remain available until expended for use

23 for the purposes specified in paragraph (1).

24 (d) EDUCATION OF DEPENDENTS.—Funds available

25 for assistance under this Act may be used in any fiscal
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1 year to provide assistance to schools established, or to be

2 established, outside the United States whenever it is deter3 mined that such action would be more economical or would

4 best serve the interests of the United States in providing

5 for the education of dependents of personnel carrying out

6 activities authorized by this Act and dependents of United

7 States Government personnel, in lieu of acquisition or con8 struction pursuant to subsection (c) of this section.

9 (e) TRAINING OF PERSONNEL.—

10 (1) PAYMENT OF COSTS.—Funds available

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

12 United States citizen personnel employed or assigned

13 pursuant to section 8502(d), through interchange or

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

15 public or private nonprofit institution, trade, labor,

16 agricultural, or scientific association or organization,

17 or commercial firm.

18 (2) LIMITATION ON DUAL EMPLOYMENT.—Such

19 training shall not be considered employment or hold20 ing of office under section 5533 of title 5, United

21 States Code.

22 (3) ACCEPTANCE OF CERTAIN PAYMENTS.—Any

23 payments or contributions in connection with such

24 training may, as deemed appropriate by the head of

25 the agency of the United States Government author-
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1 izing such training, be made by private or public

2 sources and be accepted by any trainee, or may be

3 accepted by and credited to the current applicable

4 appropriation of such agency. Any such payments or

5 contributions to any employee in the nature of com6 pensation shall be in lieu, or in reduction, of com7 pensation received from the United States Govern8 ment.

9 Subchapter B—Department of Defense

10 Administrative Authorities

11 SEC. 8211. ADMINISTRATIVE EXPENSES.

12 Funds allocated to the Department of Defense for the

13 purpose of providing assistance under this Act shall be

14 available for the following:

15 (1) Administrative, extraordinary (not to exceed

16 $300,000 in any fiscal year), and operating expenses

17 incurred in furnishing assistance under this Act ad18 ministered through the Department of Defense, in19 cluding the purchase of passenger motor vehicles for

20 replacement only for use outside of the United

21 States.

22 (2) Reimbursement of actual expenses of mili23 tary officers detailed or assigned as tour directors in

24 connection with orientation visits of foreign military

25 and related civilian personnel, in accordance with the
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1 provisions of section 5702 of title 5, United States

2 Code, applicable to civilian officers and employees.

3 (3) Maintenance, repair, alteration, and fur4 nishing of United States-owned facilities in the Dis5 trict of Columbia or elsewhere for the training of

6 foreign military and related civilian personnel with7 out regard to the provisions of section 3733 of the

8 Revised Statutes (41 U.S.C. 12) or other provision

9 of law requiring a specific authorization or specific

10 appropriation for such public contracts.

11 SEC. 8212. END USE AND RETRANSFER ASSURANCES.

12 (a) CONDITIONS.—Defense articles or defense serv13 ices may not be made available under this Act to a foreign

14 country, unless that country has agreed to the following

15 (in addition to such other provisions as the President may

16 require):

17 (1) The country will not, without the consent of

18 the President—

19 (A) transfer title to, or possession of, any

20 defense articles or defense services so furnished

21 to it to anyone not an officer, employee, or

22 agent of that country,

23 (B) use or permit the use of such articles

24 or services for purposes other than those for

25 which furnished.
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1 (2) The country will maintain the security of

2 such articles or services, and will provide substan3 tially the same degree of security protection afforded

4 to such articles or services by the United States

5 Government.

6 (b) INELIGIBILITY.—

7 (1) TERMINATION OF ASSISTANCE FOR SUB8 STANTIAL VIOLATIONS.—Assistance administered by

9 the Department of Defense under this Act to any

10 country and deliveries of defense articles and defense

11 services provided with such assistance shall be termi12 nated, and new commitments to provide such assist13 ance to that country shall not be made, as herein14 after provided if such country uses defense articles

15 or defense services described in paragraph (2) in

16 substantial violation (either in terms of quantities or

17 in terms of the gravity of the consequences regard18 less of the quantities involved) of any agreement

19 pursuant to which those defense articles or defense

20 services were furnished—

21 (A) by using such articles or services for a

22 purpose not provided for in this Act or, if such

23 agreement provides that such articles or serv24 ices may only be used for purposes more lim-
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1 ited, for a purpose not authorized under such

2 agreement;

3 (B) by transferring such articles or serv4 ices to, or permitting any use of such articles

5 or services by, anyone not an officer, employee,

6 or agent of the recipient country; or

7 (C) by failing to maintain the security of

8 such articles or services.

9 (2) DEFENSE ARTICLES AND DEFENSE SERV10 ICES SUBJECT TO REQUIREMENTS.—Paragraph (1)

11 applies with respect to any defense articles or de12 fense services furnished (through financing or other13 wise) under this Act, or furnished under any prede14 cessor foreign assistance legislation.

15 (c) EXCEPTION.—No prior consent shall be required

16 under this subchapter and section 3 of the Arms Export

17 Control Act for transfer by a foreign country of defense

18 articles sold by the United States under that Act under

19 the following circumstances:

20 (1) such articles constitute components incor21 porated into a foreign defense article;

22 (2) the recipient is the government of a NATO

23 country, or the government of Australia or Japan;

24 (3) the United States-origin components were

25 not significant military equipment, were not military
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1 defense equipment for which notification to Congress

2 was required by section 36(b) of the Arms Export

3 Control Act, and are not identified by regulation as

4 Missile Technology Control Regime items; and

5 (4) the foreign country or persons transferring

6 the items provide notification to the United States

7 Government within thirty days following such trans8 fer.

9 SEC. 8213. APPROVAL OF THIRD COUNTRY TRANSFERS.

10 (a) IN GENERAL.—In considering a request for ap11 proval of any transfer of any weapon, weapons system,

12 munitions, aircraft, military vessel, or other implement of

13 war to another country, the President shall not give his

14 consent under section 8212 to the transfer unless the

15 United States itself would transfer the defense article

16 under consideration to that country.

17 (b) SIGNIFICANT MILITARY EQUIPMENT.—In addi18 tion, the President shall not give consent under this sub19 chapter to the transfer of any significant military equip20 ment on the United States Munitions List unless the for21 eign country requesting consent to transfer agrees to de22 militarize such equipment prior to transfer, or the pro23 posed recipient provides a commitment in writing to the

24 United States Government that it will not transfer such

25 equipment if not demilitarized to any other foreign coun-
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1 try or person without first obtaining the consent of the

2 President.

3 SEC. 8214. EXCHANGE TRAINING.

4 The President is authorized to provide for attendance

5 of foreign military personnel at professional military edu6 cation institutions in the United States (other than service

7 academies) without charge, and without charge to funds

8 available to carry out titles II and III notwithstanding sec9 tion 8201, if such attendance is pursuant to an agreement

10 providing for the exchange of students on a generally re11 ciprocal basis each fiscal year between those United States

12 professional military education institutions and com13 parable institutions of foreign countries and international

14 organizations.

15 CHAPTER 3—SPECIAL REQUIREMENTS AND AU16 THORITIES RELATING TO APPROPRIATIONS

17 AND LOCAL CURRENCIES

18 Subchapter A—Provisions Relating to

19 Appropriations

20 SEC. 8301. REQUIREMENT FOR AUTHORIZATION OF APPRO21 PRIATIONS.

22 (a) REQUIREMENT FOR AUTHORIZATION.—Funds

23 appropriated for foreign assistance under this Act shall

24 not be available for obligation or expenditure—
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1 (1) unless the appropriation thereof has been

2 specifically authorized by law; or

3 (2) in excess of an amount prescribed by law.

4 (b) SUBSEQUENT AUTHORIZATIONS.—To the extent

5 that legislation enacted after the making of an appropria6 tion for foreign assistance under this Act authorizes the

7 obligation or expenditure thereof, the limitation contained

8 in subsection (a) shall not apply.

9 (c) RELATION TO OTHER PROVISIONS.—The provi10 sions of this section shall not be superseded except by a

11 provision of law that specifically repeals or modifies the

12 provisions of this section.

13 SEC. 8302. AUTHORITY FOR EXTENDED PERIOD OF AVAIL14 ABILITY OF APPROPRIATIONS.

15 Amounts appropriated to carry out this Act are au16 thorized—

17 (1) to be made available, in appropriations

18 Acts, until expended; and

19 (2) in addition to amounts otherwise available

20 for such purposes.

21 SEC. 8303. REDUCTION IN EARMARKS.

22 (a) PROPORTIONAL REDUCTIONS.—If—

23 (1) the amount appropriated for a fiscal period

24 to carry out any provision of this Act is less than
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1 the amount authorized to be appropriated to carry

2 out such provision, and

3 (2) the provision or provisions authorizing such

4 appropriations provides that a specified amount of

5 the amount authorized to be appropriated to carry

6 out that provision for that fiscal period shall be

7 available only for a particular country, organization,

8 or purpose,

9 then the amount so specified shall be deemed to be re10 duced to the amount which bears the same ratio to the

11 specified amount as the amount appropriated bears to the

12 amount authorized to be appropriated.

13 (b)(1) Funds may be made available notwithstanding

14 any provision of law described in paragraph (2) if—

15 (A) compliance with such provision is made im16 possible by operation of law, or

17 (B) the President determines that the country

18 or organization for whom such funds would have

19 been made available has significantly reduced its

20 military, political, or economic cooperation with the

21 United States during the preceding 12-month

22 period.

23 (2) The provisions of law to which this subsection ap24 plies are any provisions requiring that a specified amount

25 of funds appropriated to carry out any provision of this
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1 Act shall be available only for a particular country, organi2 zation, or purpose.

3 SEC. 8304. OBLIGATION UPON APPORTIONMENT.

4 Funds appropriated to carry out this Act may be obli5 gated upon apportionment in accordance with title 31, sec6 tion 1501(a)(5)(C), United States Code.

7 Subchapter B—Local Currencies

8 SEC. 8311. USE OF CERTAIN FOREIGN CURRENCIES.

9 (a) AUTHORITY TO USE FOREIGN CURRENCIES FOR

10 ASSISTANCE PROGRAMS.—Except as otherwise provided

11 in this Act or other provisions of law, foreign currencies

12 described in subsection (b) are authorized to be appro13 priated for use in providing assistance under this Act.

14 (b) FOREIGN CURRENCIES WHICH MAY BE USED

15 FOR ASSISTANCE.—The foreign currencies which may be

16 used under subsection (a) are any foreign currencies re17 ceived as a result of the furnishing of assistance under

18 this Act (or any predecessor legislation authorizing non19 military assistance) other than assistance administered

20 through the Department of Defense which are in excess

21 of—

22 (1) the amounts reserved under authority of

23 section 105(d) of the Mutual Educational and Cul24 tural Exchange Act of 1961 or any other Act relat25 ing to educational and cultural exchanges; and
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1 (2) the amounts required for payment by the

2 agencies of the United States Government of their

3 obligations outside the United States, as such re4 quirements may be established from time to time by

5 the President.

6 (c) PAYMENT OF OBLIGATIONS OF GOVERNMENT

7 AGENCIES.—Foreign currencies described in subsection

8 (b) which are in excess of the amounts described in para9 graph (1) of that subsection may be sold by the Secretary

10 of the Treasury to agencies of the United States Govern11 ment for payment of their obligations outside the United

12 States.

13 (d) USE OF FOREIGN CURRENCIES NOT OWNED BY

14 THE UNITED STATES GOVERNMENT.—With the concur15 rence of the relevant inspector general, the use of foreign

16 currencies that accrue or are otherwise available as a re17 sult of assistance provided under this Act (including pred18 ecessor legislation) that are not owned by the United

19 States Government, shall be the responsibility of the gov20 ernment owning such currencies to audit.

21 SEC. 8312. INTEREST ON UNITED STATES-OWNED FOREIGN

22 CURRENCY PROCEEDS.

23 (a) REQUIREMENT FOR PAYMENT OF INTEREST.—

24 In cases where assistance is to be furnished to any recipi25 ent country under this Act on a basis which will result
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1 in the accrual of foreign currency proceeds to the United

2 States, agreements with respect to such assistance should

3 include provisions for the receipt of interest income on the

4 foreign currency proceeds deposited in authorized deposi5 tories.

6 (b) WAIVER OF REQUIREMENT.—The President may

7 waive any requirement for receipt of such income if the

8 President decides it would not be in the national interest

9 to conclude arrangements for the receipt of interest in10 come pursuant to subsection (a).

11 CHAPTER 4—PROCUREMENT AND DISPOSITION

12 OF ARTICLES

13 SEC. 8401. USE OF PRIVATE ENTERPRISE.

14 (a) IN GENERAL.—In order to encourage and facili15 tate participation by private enterprise to the maximum

16 extent practicable in achieving any of the purposes of this

17 Act, the President shall—

18 (1) to the maximum extent practicable carry

19 out programs of assistance through private channels

20 and, to the extent practicable, in conjunction with

21 local private or governmental participation;

22 (2) utilize wherever practicable the products

23 and services of United States private enterprise to

24 provide the necessary equipment, supplies, and skills

25 to develop and operate a specific project or program
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1 of assistance in a developing country or area in any

2 case in which direct private investment is not readily

3 encouraged, and provide where appropriate for the

4 transfer of equity ownership in such project or pro5 gram to private investors at the earliest feasible

6 time.

7 (b) TECHNICAL ASSISTANCE.—In providing technical

8 assistance under this Act, the President shall utilize, to

9 the fullest extent practicable, goods and professional and

10 other services from private enterprise on a contract basis.

11 In such fields as education, health, housing, engineering,

12 surveying, mapping, construction or agriculture, the facili13 ties and resources of Federal agencies, which do not ad14 minister programs under this Act, may be utilized when

15 such facilities are particularly or uniquely suitable for

16 technical assistance, are not competitive with private en17 terprise, and can be made available without interfering un18 duly with domestic programs.

19 (c) ASSISTANCE PROVIDED THROUGH THE DEPART20 MENT OF DEFENSE.—The President shall assure that

21 there is made available to suppliers in the United States,

22 and particularly to small independent enterprises, infor23 mation with respect to purchases of defense articles and

24 defense services made by the Department of Defense pur-
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1 suant to this Act. Such information shall be furnished as

2 far in advance as possible.

3 SEC. 8402. PROCUREMENT STANDARDS AND PROCEDURES.

4 (a)(1) LIMITATIONS ON PROCUREMENT OUTSIDE

5 THE UNITED STATES.—Funds made available for pro6 grams under this Act may be used by the President for

7 procurement—

8 (A) only in the United States, the recipient

9 country, or developing countries; or

10 (B) in any other country but only if—

11 (i) such program requires articles or serv12 ices of a type that are not produced in and

13 available for purchase in any country specified

14 in subparagraph (A); or

15 (ii) the President determines, on a case-by16 case basis, that procurement in such other

17 country is necessary—

18 (I) to meet unforeseen circumstances,

19 such as emergency situations, where it is

20 important to permit procurement in a

21 country not specified in subparagraph (A);

22 or

23 (II) to promote efficiency in the use of

24 United States foreign assistance resources,
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1 including to avoid impairment of foreign

2 assistance objectives.

3 (2) For purposes of this subsection, the term ‘‘devel4 oping countries’’ shall not include advanced developing

5 countries.

6 (b) BULK COMMODITIES.—No funds made available

7 under this Act shall be used for the purchase in bulk of

8 any commodities at prices higher than the market price

9 prevailing in the United States at the time of purchase,

10 adjusted for differences in the cost of transportation to

11 destination, quality, and terms of payment.

12 (c) PROCUREMENT METHOD FOR INSTITUTIONS OF

13 HIGHER EDUCATION.—The President may establish sepa14 rate procurement standards and procedures for projects

15 under this Act to limit competition to a selection among

16 institutions of higher education when the projects would

17 benefit substantially from the resources and special capa18 bilities of such institutions.

19 SEC. 8403. SHIPPING ON UNITED STATES VESSELS.

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

21 transportation between foreign countries of articles pur22 chased with foreign currencies made available or derived

23 from funds made available under this Act or the Agricul24 tural Trade Development and Assistance Act of 1954 (7

25 U.S.C. 1691 and following), or any predecessor Acts, and
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1 transfers of fresh fruit and fresh fruit products under this

2 Act, shall not be governed by section 901(b) of the Mer3 chant Marine Act, 1936 (46 U.S.C. app. 1241(b)), or any

4 other law relating to the ocean transportation of commod5 ities on United States flag vessels.

6 (b) SHIPPING DIFFERENTIAL.—For purposes of fa7 cilitating implementation of section 901(b) of the Mer8 chant Marine Act, 1936 (46 U.S.C. app. 1241(b)), funds

9 made available for commodities and services under this

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

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

12 by the Secretary of Transportation to exist between Unit13 ed States and foreign-flag vessel charter or freight rates.

14 Grants made under this section shall be paid with United

15 States-owned foreign currencies wherever feasible.

16 SEC. 8404. EXCESS AND OTHER AVAILABLE PROPERTY.

17 (a) POLICY REGARDING USE OF EXCESS AND OTHER

18 AVAILABLE PROPERTY.—In furnishing assistance under

19 this Act—

20 (1) excess personal property, or

21 (2) if a substantial savings would occur, other

22 property already owned by an agency of the United

23 States Government,
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1 may be utilized wherever practicable in lieu of or supple2 mentary to the procurement of new items for United

3 States-assisted projects and programs.

4 (b) AUTHORITY TO USE CERTAIN PROPERTY FOR

5 ASSISTANCE PURPOSES.—The President is authorized to

6 use funds made available under this Act to acquire—

7 (1) property classified as domestic or foreign

8 excess pursuant to the Federal Property and Admin9 istrative Services Act of 1949 (40 U.S.C. 471 and

10 following);

11 (2) any property available from an agency of

12 the United States Government; or

13 (3) other property,

14 for use of such property as assistance in furtherance of

15 the purposes of this Act. Property acquired pursuant to

16 this section may be furnished pursuant to any provision

17 of this Act for which funds are authorized for the furnish18 ing of assistance.

19 (c)(1) The President is also authorized for purposes

20 described in subsection (b) to maintain in a separate ac21 count funds made available under this Act, free from fiscal

22 year limitations (notwithstanding section 1535(d) of title

23 31, United States Code) to pay costs (including personnel

24 costs) of acquisition and storage (including in advance of

25 known requirements), renovation and rehabilitation, pack-
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1 ing, crating, handling, transportation, and related costs of

2 handling and providing such property as assistance.

3 (2) The separate account established pursuant to this

4 section may be repaid—

5 (A) from funds made available pursuant to any

6 provision of this Act for which funds are authorized

7 for the furnishing of assistance for all costs in8 curred; or

9 (B) pursuant to section 7110 for all costs in10 curred.

11 (d) CONDITIONS ON USE OF EXCESS PROPERTY.—

12 (1) LIMITATION.—Government-owned excess

13 property may not be made available for use under

14 this Act unless approval is given and a determina15 tion is made in accordance with paragraph (2)—

16 (A) before the shipment of such property

17 for use in a specified country, or

18 (B) if the property is already in such coun19 try, before the transfer of the property.

20 (2) DETERMINATION.—A shipment or transfer

21 subject to paragraph (1) may take place only after

22 the President approves the shipment or transfer and

23 makes a written determination—
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1 (A) that there is a need for such property

2 in the quantity requested and that such prop3 erty is suitable for the purpose requested;

4 (B) as to the status and responsibility of

5 the designated end-user and his ability effec6 tively to use and maintain such property; and

7 (C) that the residual value, serviceability,

8 and appearance of such property would not re9 flect unfavorably on the image of the United

10 States and would justify the costs of packing,

11 crating, handling, transportation, and other ac12 cessorial costs, and that the residual value at

13 least equals the total of these costs.

14 (e) This section shall not apply—

15 (1) in the case of excess property of the De16 partment of Defense that is furnished as assistance

17 under section 8405 of this Act; and

18 (2) in the case of funds made available for as19 sistance under this Act that is administered through

20 the Department of Defense.

21 SEC. 8405. GRANT TRANSFERS OF EXCESS DEFENSE ARTI22 CLES.

23 (a) AUTHORITY.—Notwithstanding any other provi24 sion of law, the President may transfer excess defense ar25 ticles to countries for which receipt of such articles was
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1 separately justified in the fiscal year in which the transfer

2 is authorized, such excess defense articles as may be nec3 essary to carry out the purposes of titles II or III of this

4 Act.

5 (b) GENERALLY APPLICABLE PROVISIONS.—

6 (1) DEFINITION.—For purposes of this section,

7 excess property of the Coast Guard may be trans8 ferred on the same basis as excess defense articles

9 otherwise authorized to be transferred by this sec10 tion.

11 (2) TERMS OF TRANSFERS.—Excess defense ar12 ticles may be transferred under section without cost

13 to the recipient country or international organiza14 tion.

15 (3) LIMITATIONS ON TRANSFERS.—The Presi16 dent may transfer excess defense articles under this

17 section only if—

18 (A) they are drawn from existing stocks of

19 the Department of Defense (or the Coast

20 Guard);

21 (B) funds available to the Department of

22 Defense (or the Coast Guard) for the procure23 ment of defense equipment are not expended in

24 connection with the transfer;
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1 (C) the transfer of the excess defense arti2 cles will not have an adverse impact on the mili3 tary readiness of the United States; and

4 (D) transferring the articles under the au5 thority of those sections is preferable to selling

6 them, after taking into account the potential

7 proceeds from, and likelihood of, such sales,

8 and the comparative foreign policy benefits that

9 may accrue to the United States as the result

10 of either a transfer or sale.

11 (4) ADVANCE NOTIFICATION TO CONGRESS.—

12 The President may not transfer excess defense arti13 cles that are significant military equipment or an ar14 ticle valued (in terms of its original acquisition cost)

15 at $7,000,000 or more, under this section until 15

16 days after the President has provided notice of the

17 proposed transfer to the Committee on Armed Serv18 ices, the Committee on Foreign Affairs, and the

19 Committee on Appropriations of the House of Rep20 resentatives and the Committee on Armed Services,

21 the Committee on Foreign Relations, and the Com22 mittee on Appropriations of the Senate.

23 (5) WAIVER OF REQUIREMENT FOR REIM24 BURSEMENT OF DEPARTMENT OF DEFENSE EX25 PENSES.—Section 8201 shall not apply with respect
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1 to transfers of excess defense articles under this sec2 tion.

3 (6) TRANSPORTATION AND RELATED COSTS.—

4 Funds available to the Department of Defense (or

5 the Coast Guard) shall not be expended for crating,

6 packing, handling and transportation of excess de7 fense articles transferred under the authority of this

8 section, except under the following conditions:

9 (A) where it is determined that it is in the

10 United States national interest to do so,

11 (B) the recipient is an international orga12 nization or is a developing country receiving

13 less than $10,000,000 of assistance described in

14 subparagraphs (A) and (B) of section 8551(21)

15 of this Act in the fiscal year in which the trans16 portation is provided,

17 (C) the total weight of the transfer does

18 not exceed 25,000 pounds,

19 (D) such overseas transportation is accom20 plished on a space available basis, and

21 (E) the recipient agrees to pay packing,

22 crating, and other handling costs incurred as a

23 result of the transfer.
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1 SEC. 8406. STOCKPILING OF DEFENSE ARTICLES FOR FOR2 EIGN COUNTRIES.

3 (a) REMOVAL FROM STOCKPILING.—Defense articles

4 in the inventory of the Department of Defense which are

5 set aside, reserved, or in any way earmarked or intended

6 for future use by any foreign country may not be made

7 available to or for use by any foreign country unless—

8 (1) such transfer is authorized under this Act

9 or the Arms Export Control Act; and

10 (2) the value of such transfer is charged

11 against funds authorized to carry out the provisions

12 of this Act or against any limitations specified in

13 such legislation, as appropriate, for the fiscal period

14 in which the defense articles are transferred.

15 (b) VALUE.—

16 (1) DEFINITION.—For purposes of subsection

17 (a), ‘‘value’’ means acquisition cost plus crating,

18 packing, handling, and transportation costs incurred

19 in carrying out this section.

20 (2) LIMITATION.—A defense article transferred

21 from any stockpile which is made available to or for

22 use by any foreign country may not be considered an

23 excess defense article for the purpose of determining

24 the value of that defense article.
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1 SEC. 8407. LOCATION OF STOCKPILES.

2 Except for stockpiles located in the Republic of

3 Korea, Thailand, a country which is a member of the

4 North Atlantic Treaty Organization, a country which is

5 a major non-NATO ally, or such other countries as the

6 President may designate, no stockpile may be located out7 side the boundaries of a United States military base or

8 a military base used primarily by the United States.

9 SEC. 8408. ADDITIONS TO WAR RESERVE STOCKS.

10 (a) LIMITATION.—The value of defense articles to be

11 added to those set aside, earmarked, reserved, or intended

12 for use as war reserve stocks for allied or other foreign

13 countries (other than for purposes of the North Atlantic

14 Treaty Organization) in stockpiles located in foreign coun15 tries may not exceed in any fiscal year an amount specified

16 in legislation authorizing military assistance programs for

17 that fiscal year.

18 (b) AUTHORIZATION OF ADDITIONS.—The value of

19 such additions to stockpiles in foreign countries shall not

20 exceed such sums as may be authorized for a fiscal year.

21 SEC. 8409. RETENTION AND USE OF CERTAIN ITEMS AND

22 FUNDS.

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

24 (1) AUTHORITY TO RETAIN, TRANSFER, AND

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

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

2 United States Government as the President deems

3 appropriate in lieu of being disposed of to a foreign

4 country or international organization, whenever in

5 the judgment of the President the best interests of

6 the United States will be served thereby.

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

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

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

13 usefulness.

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

17 or account used to procure such articles or to the

18 appropriation, fund, or account currently available

19 for the same general purpose.

20 (b) ARTICLES RECEIVED AS PAYMENT.—Whenever

21 articles are transferred to the United States Government

22 as repayment of assistance under this Act or the former

23 authority of the Foreign Assistance Act, such articles may

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

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

7 appropriation, fund, or account used to finance such

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

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

12 transfer, or disposal of defense articles furnished under

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

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

17 the same general purpose.

18 CHAPTER 5—PERSONNEL AND ADMINISTRATIVE

19 EXPENSES

20 Subchapter A—General

21 SEC. 8501. STATUTORY OFFICERS IN THE UNITED STATES

22 AGENCY FOR INTERNATIONAL DEVELOP23 MENT.

24 (a) APPOINTMENT.—The President may appoint, by

25 and with the advice and consent of the Senate, 12 officers
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1 in the United States Agency for International Develop2 ment.

3 (b) TITLE.—The President may designate the title of

4 any officer appointed under subsection (a).

5 (c) ORDER OF SUCCESSION.—The President may

6 also fix the order of succession among the officers ap7 pointed under subsection (a) of this section in the event

8 of the absence, death, resignation, or disability of one or

9 more of those officers.

10 SEC. 8502. EMPLOYMENT OF PERSONNEL.

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

12 States Government carrying out functions under this Act

13 is authorized to employ such personnel as the President

14 deems necessary to carry out the provisions and purposes

15 of this Act.

16 (b) ASSISTANCE FUNCTIONS IN THE UNITED

17 STATES.—

18 (1) APPOINTMENTS WITHOUT REGARD TO CER19 TAIN CIVIL SERVICE LAWS.—Of the personnel em20 ployed in the United States by the United States

21 Agency for International Development, 110 may be

22 appointed or removed without regard to the provi23 sions of title 5, United States Code, governing ap24 pointments in the competitive service, and may be

25 compensated without regard to the provisions of
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1 chapter 51 or subchapter III of chapter 53 of such

2 title, subject to paragraph (2) of this subsection.

3 (2) COMPENSATION.—Of the personnel ap4 pointed under paragraph (1), 51 may be com5 pensated at rates higher than those payable for GS–

6 15 of the General Schedule under section 5332 of

7 title 5, United States Code, but not in excess of the

8 highest rate payable under section 5376 of such

9 title.

10 (3) REINSTATEMENT RIGHTS.—Under such

11 regulations as the President may prescribe, any indi12 vidual employed under paragraph (1) may be enti13 tled, upon removal (except for cause) from the posi14 tion to which the appointment was made, to rein15 statement to the position occupied by that individual

16 at the time of appointment or to a position or com17 parable grade and pay.

18 (c) DEPARTMENT OF DEFENSE FUNCTIONS IN THE

19 UNITED STATES.—Of the personnel employed in the Unit20 ed States by the Department of Defense to carry out this

21 Act or the Arms Export Control Act not to exceed 8 may

22 be compensated at rates higher than those payable for

23 GS–15 of the General Schedule under section 5332 of title

24 5 of the United States Code, but not in excess of the high25 est rate payable under section 5376 of such title. Such
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1 positions shall be in addition to those authorized by law

2 to be filled by Presidential appointment, and in addition

3 to the number authorized by section 5108 of title 5, Unit4 ed States Code.

5 (d) PERFORMANCE OF FUNCTIONS OUTSIDE THE

6 UNITED STATES.—

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

8 the purpose of performing functions under this Act

9 outside the United States, the President may—

10 (A) employ or assign individuals, or

11 (B) authorize the employment or assign12 ment of officers or employees by agencies of the

13 United States Government which are not au14 thorized to utilize the Foreign Service personnel

15 system.

16 (2) COMPENSATION.—Individuals employed or

17 assigned under paragraph (1) shall receive com18 pensation at any of the rates provided for under sec19 tion 402 or section 403 of the Foreign Service Act

20 of 1980, or under chapter 53 of title 5, United

21 States Code, or at any other rate authorized by law,

22 together with allowances and benefits under the For23 eign Service Act of 1980.

24 (3) REEMPLOYMENT RIGHTS.—Individuals so

25 employed or assigned shall be entitled to the same
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1 benefits as are provided by section 310 of that Act

2 for individuals appointed to the Foreign Service, ex3 cept to the extent that the President may specify

4 otherwise in cases in which the period of employ5 ment or assignment exceeds 30 months.

6 (e) CERTAIN FUNDS DEEMED OBLIGATED FOR CER7 TAIN SERVICES.—Funds provided for in agreements with

8 foreign countries for the furnishing of services under this

9 Act with respect to specific projects shall be deemed to

10 be obligated for the services for personnel employed by

11 agencies of the United States Government (other than the

12 United States Agency for International Development or

13 the Department of Defense) as well as personnel not em14 ployed by the United States Government.

15 SEC. 8503. EXPERTS, CONSULTANTS, AND RETIRED OFFI16 CERS.

17 (a) AUTHORITY TO EMPLOY.—Experts and consult18 ants or organizations thereof may, in accordance with sec19 tion 3109 of title 5 of the United States Code, be em20 ployed for the performance of functions under this Act.

21 (b) MANDATORY RETIREMENT AGE NOT APPLICA22 BLE.—Service of an individual as an expert or consultant

23 under subsection (a) of this section shall not be considered

24 as employment or holding of office or position bringing
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1 such individual within the provisions of section 3323(a)

2 of title 5 of the United States Code.

3 (c) EMPLOYMENT OF CERTAIN PERSONS WITHOUT

4 COMPENSATION.—Persons of outstanding experience and

5 ability may be employed without compensation by any

6 agency of the United States Government for the perform7 ance of functions under this Act in accordance with the

8 provisions of section 710(b) of the Defense Production Act

9 of 1950 (50 U.S.C. App. 2160(b)), and regulations issued

10 thereunder.

11 SEC. 8504. DETAIL OF PERSONNEL TO FOREIGN GOVERN12 MENTS AND INTERNATIONAL ORGANIZA13 TIONS.

14 (a) DETAILS TO FOREIGN GOVERNMENTS.—When

15 consistent with and in furtherance of the purposes of this

16 Act, the head of any agency of the United States Govern17 ment is authorized to detail any officer or employee of that

18 agency to any office or position with any foreign govern19 ment or foreign government agency, where acceptance of

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

21 oath of allegiance to another government or acceptance of

22 compensation or other benefits from any foreign country

23 by such officer or employee.

24 (b) DETAILS TO INTERNATIONAL ORGANIZATIONS.—

25 When consistent with and in furtherance of the purposes
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1 of this Act, the head of any agency of the United States

2 Government is authorized to detail to any international

3 organization or arrangement, any officer or employee of

4 that agency to service with, or as a member of, the inter5 national staff of such organization, or to render any tech6 nical, scientific, or professional advice or service to, or in

7 cooperation with, such organization.

8 (c) STATUS OF PERSONNEL DETAILED.—

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

10 employee, while detailed under this section—

11 (A) shall be considered an officer or em12 ployee of the United States Government and of

13 the agency of the United States Government

14 from which detailed for the purpose of preserv15 ing his or her allowances, privileges, rights, se16 niority, and other benefits as such; and

17 (B) shall continue to receive compensation,

18 allowances, and benefits from funds appro19 priated to that agency or made available to that

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

21 leave without pay status.

22 (2) ALLOWANCES.—Any officer or employee as23 signed, detailed, or appointed under this section, sec24 tion 8503, section 8505, or section 8506 may receive

25 (under such regulations as the President may pre-
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1 scribe) representation allowances similar to those al2 lowed under section 905 of the Foreign Service Act

3 of 1980. The authorization of such allowances and

4 other benefits and the payment thereof out of any

5 appropriations available therefor shall be considered

6 as meeting all the requirements of section 5536 of

7 title 5, United States Code.

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

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

10 1954 in accordance with any of the following paragraphs:

11 (1) Without reimbursement to the United

12 States Government by the foreign government or

13 international organization;

14 (2) Upon agreement by the foreign government

15 or international organization to reimburse the Unit16 ed States Government for compensation, travel ex17 penses, benefits, and allowances, or any part thereof,

18 payable to the officer or employee concerned during

19 the period of detail. Such reimbursements (including

20 foreign currencies) shall be credited to the appro21 priation, fund, or account utilized for paying such

22 compensation, travel expenses, benefits, or allow23 ances, or to the appropriation, fund, or account cur24 rently available for such purposes;
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1 (3) Upon an advance of funds, property, or

2 services by the foreign government or international

3 organization to the United States Government ac4 cepted with the approval of the President for speci5 fied uses in furtherance of the purposes of this Act.

6 Funds so advanced may be established as a separate

7 fund in the Treasury of the United States Govern8 ment, to be available for the specified uses, and to

9 be used for reimbursement of appropriations or di10 rect expenditure subject to the provisions of this

11 Act, any unexpended balance of such account to be

12 returned to the foreign government or international

13 organization; or

14 (4) Subject to the receipt by the United States

15 Government of a credit to be applied against the

16 payment by the United States Government of its

17 share of the expenses of the international organiza18 tion to which the officer or employee is detailed,

19 such credit to be based upon the compensation, trav20 el expenses, benefits and allowances, or any part

21 thereof, payable to such officer or employee during

22 the period of detail in accordance with subsection

23 (c).
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1 SEC. 8505. HEAD OF OFFICES ABROAD.

2 (a) APPOINTMENT.—The President may appoint a

3 head and deputy head of each office or staff maintained

4 under section 8106.

5 (b) COMPENSATION AND ALLOWANCES.—Such head

6 shall be entitled to receive such compensation and allow7 ances as are authorized by the Foreign Service Act of

8 1980, not to exceed those authorized for a chief of mission

9 (as defined in section 102(a)(3) of that Act), as the Presi10 dent deems appropriate.

11 SEC. 8506. CHAIRMAN OF OECD DEVELOPMENT ASSIST12 ANCE COMMITTEE.

13 (a) APPOINTMENT.—The President may—

14 (1) appoint any United States citizen who is

15 not an employee of the United States Government,

16 or

17 (2) assign any United States citizens who is an

18 employee of the United States Government, to serve

19 as Chairman of the Development Assistance Com20 mittee (or any successor committee) of the Organi21 zation for Economic Cooperation and Development,

22 upon election thereto by members of that Commit23 tee.

24 (b) COMPENSATION AND ALLOWANCES.—An individ25 ual appointed or assigned under subsection (a) may re26 ceive such compensation and allowances as are authorized
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1 by the Foreign Service Act of 1980, not to exceed those

2 authorized for a chief of mission (as defined in section

3 102(a)(3) of that Act), as the President deems appro4 priate. Such individual, if appointed under subsection

5 (a)(1), shall be deemed to be an employee of the United

6 States Government for purposes of chapters 81, 83, 84,

7 87, and 89 of title 5, United States Code. Such individual

8 may also, in the President’s discretion, receive any other

9 benefits and perquisites available under this Act to heads

10 of offices or staffs maintained under section 8106.

11 SEC. 8507. ASSIGNMENT OF DOD PERSONNEL TO CIVIL OF12 FICES.

13 Nothwithstanding section 973(b) of title 10, United

14 States Code, personnel of the Department of Defense may

15 be assigned or detailed to any civil office to carry out this

16 Act.

17 SEC. 8508. DISCRIMINATION AGAINST UNITED STATES PER18 SONNEL PROVIDING ASSISTANCE.

19 It is the sense of the Congress that—

20 (1) the assignment of officers and employees of

21 the United States to carry out any assistance pro22 gram funded under this Act in any foreign country,

23 should not take into account the race, religion, na24 tional origin, or sex of any such officer or employee,
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1 and such assignments should be made solely on the

2 basis of ability and relevant experience.

3 (2) assistance under this Act should not be fur4 nished to any foreign country, the laws, regulations,

5 official policies, or governmental practices of which

6 prevent any United States person (as defined in sec7 tion 7701(a)(30) of the Internal Revenue Code of

8 1954) from participating in the furnishing of assist9 ance under this Act on the basis of race, religion,

10 national origin, or sex.

11 SEC. 8509. AVAILABILITY OF FUNDS FOR OPERATING EX12 PENSES GENERALLY.

13 (a) IN GENERAL.—Funds shall be available to carry

14 out the provisions of this section as authorized and appro15 priated to the President each fiscal year.

16 (b) ADDITIONAL AMOUNTS.—There are authorized to

17 be appropriated to the President such additional amounts

18 as may be necessary for increases in salary, pay, retire19 ment, and other employee benefits authorized by law, and

20 for other nondiscretionary costs of such agency.

21 SEC. 8510. AVAILABILITY OF FUNDS FOR OPERATING EX22 PENSES OF THE INSPECTOR GENERAL.

23 (a) IN GENERAL.—Funds shall be available to carry

24 out the provisions of this section as authorized and appro25 priated to the President each fiscal year.
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1 (b) ADDITIONAL AMOUNTS.—There are authorized to

2 be appropriated to the President such additional amounts

3 as may be necessary for increases in salary, pay, retire4 ment, and other employee benefits authorized by law, and

5 for other nondiscretionary costs of such office.

6 SEC. 8511. AVAILABILITY OF FUNDS.

7 Notwithstanding any other provision of law, the Unit8 ed States Agency for International Development may obli9 gate and expend funds in advance of appropriations in an

10 amount sufficient to maintain operations at posts abroad

11 for up to three days.

12 Subchapter B—Overseas Management of Assistance

13 and Sales Programs Administered Through the

14 Department of Defense

15 SEC. 8521. AUTHORIZED FUNCTIONS.

16 (a) IN GENERAL.—In order to carry out responsibil17 ities for the management of assistance and sales programs

18 administered through the Department of Defense under

19 this Act and under the Arms Export Control Act, the

20 President may assign members of the Armed Forces to

21 a foreign country to perform one or more of the following

22 functions:

23 (1) Equipment and services case management.

24 (2) Training management.

25 (3) Program monitoring.
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1 (4) Evaluation and planning of the host govern2 ment’s military capabilities and requirements.

3 (5) Administrative support.

4 (6) Promoting rationalization, standardization,

5 interoperability, and other defense cooperation meas6 ures.

7 (7) Liaison functions exclusive of advisory and

8 training assistance.

9 (b) ADVISORY AND TRAINING ASSISTANCE.—Advi10 sory and training assistance conducted by members of the

11 Armed Forces assigned for purposes of providing defense

12 articles or defense services shall be kept to an absolute

13 minimum. Advising and training assistance in countries

14 to which members of the Armed Forces are assigned for

15 such purposes should be provided primarily by other per16 sonnel who are not assigned for such purposes and who

17 are detailed for limited periods to perform specific tasks.

18 SEC. 8522. COSTS.

19 The entire costs (excluding salaries of members of the

20 Armed Forces other than the Coast Guard) of overseas

21 management of programs for providing defense articles

22 and defense services under this Act shall be charged to

23 or reimbursed from funds allocated to the Department of

24 Defense, pursuant to the authorities of this Act, other

25 than any such costs which are either—
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1 (1) paid directly for such defense services under

2 section 21(a) of the Arms Export Control Act, or

3 (2) reimbursed from charges for services col4 lected from foreign governments pursuant to section

5 21(e) and section 43(b) of that Act.

6 SEC. 8523. ROLE OF CHIEF OF MISSION.

7 Members of the Armed Forces assigned to a foreign

8 country under section 8521 of this Act shall serve under

9 the direction and supervision of the Chief of the United

10 States Diplomatic Mission to that country.

11 Subchapter C—Administrative Provisions for the

12 Trade and Development Agency

13 SEC. 8531. DIRECTOR AND PERSONNEL.

14 (a) DIRECTOR.—There shall be at the head of the

15 Trade and Development Agency a Director who shall be

16 appointed by the President, by and with the advice and

17 consent of the Senate.

18 (b) OFFICERS AND EMPLOYEES.—

19 (1) The Director may appoint such officers and

20 employees of the Trade and Development Agency as

21 the Director considers appropriate.

22 (2) The officers and employees appointed under

23 this paragraph shall have such functions as the Di24 rector may determine.
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1 (3) Of the officers and employees appointed

2 under this paragraph, 2 may be appointed without

3 regard to the provisions of title 5, United States

4 Code, governing in appointments in the competitive

5 service, and may be compensated without regard to

6 the provisions of chapter 51 or subchapter III of

7 chapter 53 of such title.

8 (4) Under such regulations as the President

9 may prescribe, any individual appointed under sub10 paragraph (C) may be entitled, upon removal (except

11 for cause) from the position to which the appoint12 ment was made, to reinstatement to the position oc13 cupied by that individual at the time of appointment

14 or to a position of comparable grade and pay.

15 SEC. 8532. AUDITS.

16 (a) IN GENERAL.—The Trade and Development

17 Agency shall be subject to the provisions of chapter 35

18 of title 31, United States Code, except as otherwise pro19 vided in this section.

20 (b) INDEPENDENT AUDIT.—An independent certified

21 public accountant shall perform a financial and compli22 ance audit of the financial statements of the Trade and

23 Development Agency each year, in accordance with gen24 erally accepted Government auditing standards for a fi25 nancial and compliance audit, taking into consideration
225

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1 any standards recommended by the Comptroller General.

2 The independent certified public accountant shall report

3 the results of such audit to the Director of the Trade and

4 Development Agency. The financial statements of the

5 Trade and Development Agency shall be presented in ac6 cordance with generally accepted accounting principles.

7 These financial statements and the report of the account8 ant shall be included in a report which contains, to the

9 extent applicable, the information identified in section

10 3512 of title 31, United States Code, and which the Trade

11 and Development Agency shall submit to the Congress not

later than 61 12 ⁄2 months after the end of the last fiscal year

13 covered by the audit. The Comptroller General may review

14 the audit conducted by the accountant and the report to

15 the Congress in the manner and at such times as the

16 Comptroller General considers necessary.

17 (c) AUDIT BY COMPTROLLER GENERAL.—In lieu of

18 the financial and compliance audit required by paragraph

19 (2), the Comptroller General shall, if the Comptroller Gen20 eral considers it necessary or upon the request of the Con21 gress, audit the financial statements of the Trade and De22 velopment Agency in the manner provided in paragraph

23 (2).

24 (d) AVAILABILITY OF INFORMATION.—All books, ac25 counts, financial records, reports, files, workpapers, and
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1 property belonging to or in use by the Trade and Develop2 ment Agency and the accountant who conducts the audit

3 under paragraph (2), which are necessary for purposes of

4 this subsection, shall be made available to the representa5 tives of the General Accounting Office designated by the

6 Comptroller General.

7 SEC. 8533. ANNUAL REPORT.

8 The President shall, not later than December 31 of

9 each year, submit to the Committee on Foreign Affairs

10 of the House of Representatives and the Committee on

11 Foreign Relations of the Senate a report on the activities

12 of the Trade and Development Agency in the preceding

13 fiscal year.

14 Subchapter D—Administrative Provisions for the

15 Overseas Private Investment Corporation

16 SEC. 8541. STOCK OF THE CORPORATION.

17 The Secretary of the Treasury shall hold the capital

18 stock of the Corporation.

19 SEC. 8542. ORGANIZATION AND MANAGEMENT.

20 (a) STRUCTURE OF THE CORPORATION.—The Cor21 poration shall have a Board of Directors, a President, an

22 Executive Vice President, and such other officers and staff

23 as the Board of Directors may determine.

24 (b) BOARD OF DIRECTORS.—
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1 (1) IN GENERAL.—All powers of the Corpora2 tion shall vest in and be exercised by or under the

3 authority of its Board of Directors (hereafter in this

4 subchapter referred to as ‘‘the Board’’) which shall

5 consist of 15 Directors (including the Chair and

6 Vice Chair), with 8 Directors constituting a quorum

7 for the transaction of business.

8 (2) COMPOSITION OF THE BOARD.—

9 (A) CHAIR.—The Chair of the Board shall

10 be the Administrator of the United States

11 Agency for International Development, ex

12 officio.

13 (B) VICE CHAIR.—The Vice Chair of the

14 Board shall be the United States Trade Rep15 resentative, ex officio, except that the United

16 States Trade Representative may designate the

17 Deputy United States Trade Representative to

18 serve as Vice Chairman in place of the United

19 States Trade Representative.

20 (C) PRESIDENT OF OPIC.—The President

21 of the Corporation shall serve as a Director, ex

22 officio.

23 (D) PUBLIC SECTOR DIRECTORS.—(i) In

24 addition to the directors provided for in sub25 paragraphs (A) through (C), five Directors who
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1 are officers or employees of the Government of

2 the United States shall be designated by the

3 President of the United States, including an of4 ficer or employee of the Department of Labor.

5 (ii) The Directors designated under this

6 subparagraph shall receive no additional com7 pensation by virtue of their service as such a

8 Director.

9 (E) PRIVATE SECTOR DIRECTORS.—Eight

10 Directors who are not otherwise officers or em11 ployees of the Government of the United States

12 shall be appointed by the President of the Unit13 ed States, by and with the advice and consent

14 of the Senate. Of these, at least—

15 (i) two shall be experienced in small

16 business,

17 (ii) one shall be experienced in orga18 nized labor, and

19 (iii) one shall be experienced in co20 operatives.

21 (F) EACH DIRECTOR APPOINTED UNDER

22 SUBPARAGRAPH (E).—

23 (i) shall be appointed for a term of

24 not more than 3 years; the terms of not
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1 more than three such Directors shall expire

2 in any 1 year;

3 (ii) shall serve until their successors

4 are appointed and qualified and may be

5 reappointed to subsequent terms; and

6 (iii) shall be compensated at the daily

7 equivalent of the annual rate of pay in ef8 fect for level IV of the Executive Schedule

9 under section 5315 of title 5, United

10 States Code, for each day (including travel

11 time) during which such Director is actu12 ally engaged in the business of the Cor13 poration, and may be paid travel or trans14 portation expenses to the extent authorized

15 for employees serving intermittently in the

16 Government service under section 5703 of

17 title 5, United States Code.

18 (c) APPOINTMENT OF THE PRESIDENT.—The Presi19 dent of the Corporation shall be appointed by the Presi20 dent of the United States, by and with the advice and con21 sent of the Senate. In making such appointment, the

22 President shall take into account the private business ex23 perience of the appointee. The President of the Corpora24 tion shall be its Chief Executive Officer and shall be re25 sponsible for the operations and management of the Cor-
230

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1 poration, subject to bylaws and policies established by the

2 Board.

3 (d) OFFICERS AND STAFF.—

4 (1) EXECUTIVE VICE PRESIDENT.—The Execu5 tive Vice President of the Corporation shall be ap6 pointed by the President of the United States, by

7 and with the advice and consent of the Senate.

8 (2) OTHER OFFICERS AND STAFF.—(A) The

9 Corporation may appoint such other officers and

10 such employees (including attorneys) and agents as

11 the Corporation considers appropriate.

12 (B) The officers, employees, and agents ap13 pointed under this subsection shall have such func14 tions as the Corporation may determine.

15 (C) Of the officers, employees, and agents ap16 pointed under this paragraph, 20 may be appointed,

17 compensated or removed without regard to civil serv18 ice laws and regulations.

19 (D) Under such regulations as the President of

20 the United States may prescribe, any individual ap21 pointed under subparagraph (C) may be entitled,

22 upon removal (except for cause) from the position to

23 which the appointment was made, to reinstatement

24 to the position occupied by that individual at the
231

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1 time of appointment or to a position of comparable

2 grade and pay.

3 SEC. 8543. INCOME AND REVENUES.

4 In order to carry out the purposes of the Corporation,

5 all revenues and income transferred to or earned by the

6 Corporation, from whatever source derived, except for pay7 ments to the financing account, shall be held by the Cor8 poration and shall be available to carry out its purposes,

9 including without limitation—

10 (1) payment of all expenses of the Corporation,

11 including investment promotion expenses;

12 (2) transfers and additions to the insurance re13 serve, financing accounts and such other funds, ac14 counts or reserves as the Corporation may establish,

15 at such time and in such amounts as the Board may

16 determine; and

17 (3) payment of dividends, on capital stock,

18 which shall consist of and be paid from net earnings

19 of the Corporation after payments, transfers, and

20 additions under paragraphs (1) and (2).

21 SEC. 8544. GENERAL PROVISIONS RELATING TO INSUR22 ANCE AND FINANCING PROGRAM.

23 (a) AGREEMENTS WITH COUNTRIES.—Insurance, re24 insurance, and guarantees issued under chapter 1 of title

25 V shall not cover investment made in connection with
232

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1 projects in any country or area unless the President of

2 the United States has agreed with the government of such

3 country or area to institute a program for such insurance,

4 reinsurance, or guarantees.

5 (b) PROTECTION OF INTERESTS OF THE CORPORA6 TION.—The Corporation shall determine that suitable ar7 rangements exist for protecting the interest of the Cor8 poration in connection with any insurance, reinsurance, or

9 guarantee issued under chapter 1 of title V, including ar10 rangements concerning ownership, use, and disposition of

11 the currency, credits, assets, or investments on account

12 of which payment under such insurance, guarantee, or re13 insurance is to be made, and any right, title, claim, or

14 cause of action existing in connection therewith.

15 (c) FULL FAITH AND CREDIT PLEDGED.—All guar16 antees issued pursuant to predecessor guarantee author17 ity, and all insurance, reinsurance, and guarantees issued

18 pursuant to chapter 1 of title V shall constitute obliga19 tions, in accordance with the terms of such insurance, re20 insurance, or guarantees, of the United States of America,

21 and the full faith and credit of the United States of Amer22 ica is hereby pledged for the full payment and performance

23 of such obligations.

24 (d) FEES.—Fees may be charged for providing insur25 ance, reinsurance, financing, and other services under
233

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1 chapter 1 of title V in amounts to be determined by the

2 Corporation. Fees paid for project-specific transaction

3 costs and other transaction costs, including but not limited

4 to project-related travel and expenses for legal representa5 tion, associated with services provided to specific investors

6 or potential investors pursuant to section 5102, including

7 financing, insurance, reinsurance, missions, seminars, con8 ferences, and other pre-investment services, shall be avail9 able for obligation for the purposes for which they were

10 collected notwithstanding any other provision of law.

11 Transaction costs relating to investment financing com12 mitments entered into pursuant to section 5102(b) shall

13 be considered cash flows from the Government resulting

14 from financing commitments and shall be paid out of the

15 appropriate financing account established pursuant to sec16 tion 505(b) of the Federal Credit Reform Act of 1990.

17 (e) INSURANCE, REINSURANCE, AND FINANCING

18 LIMITED TO 20 YEARS.—No insurance, reinsurance, or fi19 nancing of any equity investment under chapter 1 of title

20 V shall extend beyond 20 years from the date on which

21 such insurance, reinsurance, or financing is issued.

22 (f) AMOUNT OF COMPENSATION PAID ON CLAIMS.—

23 Compensation for any insurance, reinsurance, or financing

24 issued under chapter 1 of title V shall not exceed the dol25 lar value, as of the date of the investment, of the invest-
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1 ment made in the project with the approval of the Cor2 poration plus interest, earnings, or profits actually ac3 crued on such investment to the extent provided by such

4 insurance, reinsurance, or guarantee, except that the Cor5 poration may provide that—

6 (1) appropriate adjustments in the insured dol7 lar value may be made to reflect the replacement

8 cost of project assets;

9 (2) compensation for a claim of loss under in10 surance of an equity investment may be computed

11 on the basis of the net book value attributable to

12 such equity investment on the date of loss; and

13 (3) compensation for loss due to business inter14 ruption may be computed on a basis to be deter15 mined by the Corporation which reflects amounts

16 lost.

17 Notwithstanding the preceding sentence, the Corporation

18 shall limit the amount of direct insurance and reinsurance

19 issued under section 5102 or 5103 so that risk of loss

20 as to at least 10 percent of the total investment of the

21 insured and its affiliates in the project is borne by the

22 insured and such affiliates, except that this limitation

23 shall not apply to direct insurance or reinsurance of loans

24 by banks or other financial institutions to unrelated

25 parties.
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1 (g) LIMITATION WITH RESPECT TO FOREIGN CRED2 IT INSTITUTIONS.—Insurance, guarantees, or reinsurance

3 of a loan or equity investment of an eligible investor in

4 a foreign bank, finance company, or other credit institu5 tion shall extend only to such loan or equity investment

6 and not to any individual loan or equity investment made

7 by such foreign bank, finance company, or other credit

8 institution.

9 (h) SETTLEMENT AND ARBITRATION OF CLAIMS.—

10 Claims arising as a result of insurance, reinsurance, or

11 guarantee operations under chapter 1 of title V or under

12 predecessor guarantee authority may be settled, and dis13 putes arising as a result thereof may be arbitrated with

14 the consent of the parties, on such terms and conditions

15 as the Corporation may determine. Payment made pursu16 ant to any such settlement, or as a result of an arbitration

17 award, shall be final and conclusive notwithstanding any

18 other provision of law.

19 (i) CONTRACTS PRESUMED TO COMPLY WITH

20 ACT.—Each insurance, reinsurance, or guarantee contract

21 executed by such officer or officers as may be designated

22 by the Board shall be conclusively presumed to be issued

23 in compliance with the requirements of this Act.

24 (j) PENALTIES FOR FRAUD.—Whoever knowingly

25 makes any false statement or report, or willfully
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1 overvalues any land, property, or security, for the purpose

2 of influencing in any way the action of the Corporation

3 with respect to any insurance, reinsurance, guarantee,

4 loan, equity investment, or other activity of the Corpora5 tion under section 5102 or any change or extension of any

6 such insurance, reinsurance, guarantee, loan, equity in7 vestment, or activity, by renewal, deferment of action or

8 otherwise, or the acceptance, release, or substitution of se9 curity therefor, shall be fined not more than $1,000,000

10 or imprisoned not more than 30 years, or both.

11 (k) USE OF LOCAL CURRENCIES.—Direct loans or

12 investments made in order to preserve the value of funds

13 received in inconvertible foreign currency by the Corpora14 tion as a result of activities conducted pursuant to section

15 5102(a) shall not be considered in determining whether

16 the Corporation has made or has outstanding loans, guar17 anties, or investments to the extent of any limitation on

18 obligations, commitments, and equity investment imposed

19 by or pursuant to chapter 1 of title V. The provision of

20 section 504(b) of the Federal Credit Reform Act of 1990

21 shall not apply to direct loan obligations made with funds

22 described in this subsection.

23 (l) TERMINATION.—Provisions of this or any other

24 Act requiring the termination of assistance under this or

25 any other Act shall not be construed to require the termi-
237

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1 nation of contracts or commitments that were entered or

2 were being processed under chapter 1 of title V prior to

3 the effective date of the termination of assistance.

4 SEC. 8545. GENERAL PROVISIONS AND POWERS.

5 (a) PRINCIPAL OFFICE.—The Corporation shall have

6 its principal office in the Distict of Columbia and shall

7 be deemed, for purposes of venue in civil actions, to be

8 a resident of the District of Columbia.

9 (b) AUDITS.—

10 (1) IN GENERAL.—The Corporation shall be

11 subject to the applicable provisions of chapter 91 of

12 title 31, United States Code, except as otherwise

13 provided in this Act.

14 (2) INDEPENDENT AUDIT.—An independent

15 certified public accountant shall perform a financial

16 and compliance audit of the financial statements of

17 the Corporation each year, in accordance with gen18 erally accepted Government auditing standards for a

19 financial and compliance audit. The independent cer20 tified public accountant shall report the results of

21 such audit to the Board. The financial statements of

22 the Corporation shall be presented in accordance

23 with generally accepted accounting principles. These

24 financial statements and the report of the account25 ant shall be included in a report which contains, to
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1 the extent applicable, the information identified in

2 section 9106 of title 31, United States Code, and

3 which the Corporation shall submit to the Congress

not later than 61 4 ⁄2 months after the end of the last

5 fiscal year covered by the audit. The Comptroller

6 General may review the audit conducted by the ac7 countant and report to the Congress in the manner

8 and at such times as the Comptroller General con9 siders necessary.

10 (3) AUDIT BY COMPTROLLER GENERAL.—The

11 Comptroller General shall, if the Comptroller Gen12 eral considers it necessary or upon the request of the

13 Congress, audit the financial statements of the Cor14 poration in the manner provided in paragraph (2).

15 (4) AVAILABILITY OF INFORMATION.—All

16 books, accounts, financial records, reports, files,

17 work papers, and property belonging to or in use by

18 the Corporation and the accountant who conducts

19 the audit under paragraph (2), which are necessary

20 for purposes of this subsection, shall be made avail21 able to the representatives of the General Account22 ing Office designated by the Comptroller General.

23 (c) POWERS.—To carry out the purposes of chapter

24 1 of title V, the Corporation is authorized—
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1 (1) to adopt and use a corporate seal, which

2 shall be judicially noticed;

3 (2) to sue and be sued in its corporate name;

4 (3) to adopt, amend, and repeal bylaws govern5 ing the conduct of its business and the performance

6 of the powers and duties granted to or imposed upon

7 it by law;

8 (4) to acquire, hold, or dispose of, upon such

9 terms and conditions as the Corporation may deter10 mine, any property, real, personal, or mixed, tan11 gible or intangible, or any interest therein;

12 (5) to invest funds derived from fees and other

13 revenues in obligations of the United States and to

14 use the proceeds therefrom, including earnings and

15 profits, as it considers appropriate;

16 (6) to indemnify directors, officers, employees,

17 and agents of the Corporation for liabilities and ex18 penses incurred in connection with their Corporation

19 activities;

20 (7) to require bonds of officers, employees, and

21 agents and to pay the premiums therefor;

22 (8) notwithstanding any other provision of law,

23 to represent itself or to contract for representation

24 in all legal and arbitral proceedings;
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1 (9) to enter into limited-term contracts with na2 tionals of the United States for personal services to

3 carry out activities in the United States and abroad

4 under section 5102;

5 (10) to purchase, discount, rediscount, sell, and

6 negotiate, with or without its endorsement or guar7 antee, and guarantee notes, participation certifi8 cates, and other evidence of indebtedness (except

9 that the Corporation shall not issue its own securi10 ties, except participation certificates for the purpose

11 of carrying out section 5101(c)(3), participation cer12 tificates in connection with transactions authorized

13 by 5102(b), or participation certificates as evidence

14 of indebtedness held by the Corporation in connec15 tion with settlement of claims under section

16 8544(h));

17 (11) to make and carry out such contracts and

18 agreements as are necessary and advisable in the

19 conduct of its business;

20 (12) to exercise any priority of the government

21 of the United States in collecting debts from the es22 tates of bankrupt, insolvent, or decedent parties;

23 (13) to determine the character of and the ne24 cessity for its obligations and expenditures, and the

25 manner in which they shall be incurred, allowed, and
241

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1 paid, subject to provisions of law specifically applica2 ble to Government corporations;

3 (14) to collect or compromise any obligations

4 assigned to or held by the Corporation, including

5 any legal or equitable rights accruing to the Cor6 poration; and

7 (15) to take such actions as may be necessary

8 or appropriate to carry out the powers of the Cor9 poration.

10 (d) INSPECTOR GENERAL.—

11 (1) AUTHORITY.—The Inspector General of the

12 United States Agency for International Development

13 may conduct audits, investigations, and inspections

14 of all phases of the Corporation’s operations and ac15 tivities.

16 (2) RELATION TO PRESIDENT OF CORPORA17 TION.—The Inspector General shall report to and be

18 under the general supervision of the President of the

19 Corporation with respect to activities undertaken

20 pursuant to this subsection, except that the Presi21 dent of the Corporation shall not prevent or prohibit

22 the Inspector General from initiating, carrying out,

23 or completing any such activity in accordance with

24 the duties, authorities, and responsibilities contained
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1 in the Inspector General Act or 1978 and any other

2 applicable law or regulation.

3 (3) EXPENSES.—The Inspector General shall be

4 reimbursed by the Corporation for all expenses in5 curred by the Inspector General in connection with

6 the Inspector General’s responsibilities under this

7 subsection.

8 (4) INSPECTOR GENERAL ACT.—For purposes

9 of the Inspector General Act of 1978, the Corpora10 tion shall continue to be considered a Federal entity

11 and the President of the Corporation shall be consid12 ered the head of the Federal entity.

13 (5) SEMIANNUAL REPORT.—The semiannual re14 port required under section 5 of the Inspector Gen15 eral Act of 1978 shall include information relating

16 to activities of the Inspector General undertaken

17 pursuant to this subsection.

18 (e) EXEMPTION FROM STATE AND LOCAL TAX19 ATION.—The Corporation (including its franchise, capital,

20 reserves, surplus, advances, intangible property, and in21 come) shall be exempt from all taxation at any time im22 posed by any State, the District of Columbia, or any coun23 ty, municipality, or local taxing authority.
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1 SEC. 8546. ANNUAL REPORT; MAINTENANCE OF INFORMA2 TION.

3 (a) ANNUAL REPORT.—After the end of each fiscal

4 year, the President shall submit to the Congress a com5 plete and detailed report of the Corporation’s operations

6 during such fiscal year. Such report shall include—

7 (1) an assessment, based upon the development

8 impact profiles required by section 5105(a), of the

9 economic and social development impact and benefits

10 of the projects with respect to which such profiles

11 are prepared, and of the extent to which the oper12 ations of the Corporation complement or are com13 patible with the development assistance programs of

14 the United States and other donors; and

15 (2) a description of any project for which the

16 Corporation refused to provide any insurance, rein17 surance, financing, or other financial support, on ac18 count of violations of human rights referred to in

19 section 8543(d).

20 (b) PROJECTIONS OF EFFECTS ON EMPLOYMENT.—

21 (1) IN GENERAL.—Each annual report required

22 by subsection (a) shall contain projections of the ef23 fects on employment in the United States of all

24 projects for which, during the fiscal year covered by

25 the report, the Corporation initially issued any in26 surance, reinsurance, or guarantee or provided fi-
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1 nancing. Each such report shall include projections

2 of—

3 (A) the amount of United States exports to

4 be generated by those projects, both during the

5 start-up phase and over a period of years;

6 (B) the final destination of the products to

7 be produced as a result of those projects; and

8 (C) the impact such production will have

9 on the production of similar products in the

10 United States with regard to both domestic

11 sales and exports.

12 (2) INFORMATION IN AGGREGATE FORM.—The

13 projections required by this subsection shall be based

14 on an analysis of each of the projects described in

15 paragraph (1). Such projections may, however,

16 present information and analysis in aggregate form,

17 but only if—

18 (A) those projects which are projected to

19 have a positive effect on employment in the

20 United States and those projects which are pro21 jected to have a negative effect on employment

22 in the United States are grouped separately;

23 and

24 (B) there is set forth for each such group25 ing the key characteristics of the projects within
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1 that grouping, including the number of projects

2 in each economic sector, the countries in which

3 the projects in each economic sector are located,

4 and the projected level of the impact of the

5 projects in each economic sector on employment

6 in the United States and on United States

7 trade.

8 (c) MAINTENANCE OF INFORMATION.—The Corpora9 tion shall maintain as part of its records—

10 (1) all information collected in preparing the re11 port required by section 240A(c) of the Foreign As12 sistance Act of 1961 (as in effect before the enact13 ment of the Overseas Private Investment Corpora14 tion Amendments Act of 1988), whether the infor15 mation was collected by the Corporation itself or by

16 a contractor; and

17 (2) a copy of the analysis of each project ana18 lyzed in preparing the projections required by sub19 section (b) of this section or the report required by

20 section 240A(c) of the Foreign Assistance Act of

21 1961 (as in effect before the enactment of the Over22 seas Private Investment Corporation Amendments

23 Act of 1988).

24 (d) PROTECTION OF CERTAIN INFORMATION.—Sub25 section (b) does not require the inclusion in any informa-
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1 tion submitted pursuant to that subsection of any infor2 mation which would not be required to be made available

3 to the public pursuant to section 552 of title 5, United

4 States Code (relating to freedom of information).

5 SEC. 8547. DEFINITIONS.

6 As used in chapter 1 of title V and this subchapter,

7 the following terms have the following meanings:

8 (1) BOARD.—The term ‘‘Board’’ means the

9 Board of Directors of the Overseas Private Invest10 ment Corporation.

11 (2) CORPORATION.—The term ‘‘Corporation’’

12 means the Overseas Private Investment Corporation.

13 (3) ELIGIBLE INVESTOR.—(A) The term ‘‘eligi14 ble investor’’ means—

15 (i) a United States citizen;

16 (ii) a corporation, partnership, or other as17 sociation, including a nonprofit association,

18 which is created under the laws of the United

19 States, any State, the District of Columbia, or

20 any commonwealth, territory, or possession of

21 the United States, and which is substantially

22 beneficially owned by United States citizens;

23 and

24 (iii) a foreign corporation, partnership, or

25 other association which is wholly-owned by one
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1 or more United States citizens or corporations,

2 partnerships, or other associations described in

3 clause (ii), except that the eligibility of any such

4 foreign corporation shall be determined without

5 regard to any shares held by other than United

6 States citizens or corporations, partnerships, or

7 other associations described in clause (ii) if, in

8 the aggregate, such shares equal less than 5

9 percent of the total issued and subscribed share

10 capital of such foreign corporation.

11 (B) For purposes of subparagraph (A)—

12 (i) in the case of insurance or a guarantee

13 for any loan investment, a final determination

14 of whether a person is an eligible investor may

15 be made at the time the insurance or guarantee

16 is issued; and

17 (ii) in the case of insurance or a guarantee

18 for any other investment, an investor must be

19 an eligible investor at the time a claim arises as

20 well as the time the insurance or guarantee is

21 issued.

22 (4) EXPROPRIATION.—The term ‘‘expropria23 tion’’ includes any abrogation, repudiation, or im24 pairment by a foreign government of its own con25 tract with an investor with respect to a project,
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1 where such abrogation, repudiation, or impairment

2 is not caused by the investor’s own fault or mis3 conduct, and materially adversely affects the contin4 ued operation of the project.

5 (5) INVESTMENT.—The term ‘‘investment’’ in6 cludes any contribution or commitment or funds,

7 commodities, services, patents, processes, or tech8 niques, in the form of—

9 (A) a loan or loans to an approved project,

10 (B) the purchase of a share of ownership

11 in any such project,

12 (C) participation in royalties, earning, or

13 profits of any such project, and

14 (D) the furnishing of commodities or serv15 ices pursuant to a lease or other contract.

16 (6) PREDECESSOR GUARANTEE AUTHORITY.—

17 The term ‘‘predecessor guarantee authority’’ means

18 prior guarantee authorities (other than housing

19 guarantee authorities) repealed by the Foreign As20 sistance Act of 1969, sections 202(b) and 413(b) of

21 the Mutual Security Act of 1954, and section

22 111(b)(3) of the Economic Cooperation Act of 1948

23 (exclusive of authority relating to informational

24 media guarantees).
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1 Subchapter E—Definitions and Miscellaneous

2 Provisions

3 SEC. 8551. DEFINITIONS.

4 (a) For purposes of this Act, the following terms have

5 the following meanings:

6 (1) AGENCY OF THE UNITED STATES GOVERN7 MENT.—The term ‘‘agency of the United States

8 Government’’ includes any agency, department,

9 board, wholly or partly owned corporation, instru10 mentality, commission, or establishment of the Unit11 ed States Government.

12 (2) COUNTRY—The term ‘‘country’’ includes

13 area.

14 (3) DEVELOPING COUNTRY.—The term ‘‘devel15 oping country’’ includes advanced developing coun16 try.

17 (4) FUNCTION.—The term ‘‘function’’ includes

18 any duty, obligation, power, authority, responsibility,

19 right, privilege, discretion, or activity.

20 (5) GROSS VIOLATIONS OF INTERNATIONALLY

21 RECOGNIZED HUMAN RIGHTS.—The term ‘‘gross vio22 lations of internationally recognized human rights’’

23 includes torture or cruel, inhuman, or degrading

24 treatment or punishment, prolonged detention with25 out charges and trial, causing the disappearance of

26 persons by the abduction and clandestine detention
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1 of those persons, and other flagrant denial of the

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

3 (6) INCLUDES.—The term ‘‘includes’’ means in4 cludes but is not limited to.

5 (7) NOTWITHSTANDING.—The terms ‘‘notwith6 standing any other provision of law’’ and ‘‘notwith7 standing any provision of this or any other Act’’

8 shall not apply to title 31, United States Code, the

9 Congressional Budget and Impoundment Control

10 Act of 1974, the Balanced Budget and Emergency

11 Deficit Control Act of 1985, and the Budget En12 forcement Act of 1990.

13 (8) OFFICER OR EMPLOYEE.—The term ‘‘offi14 cer or employee’’ means civilian personnel of the

15 United States Government and members of the

16 Armed Forces.

17 (9) NONNUCLEAR-WEAPON STATE.—The term

18 ‘‘nonnuclear-weapon state’’ means any country

19 which is not a nuclear-weapon state, as defined in

20 article IX(3) of the Treaty on the Non-Proliferation

21 of Nuclear Weapons.

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

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

24 the Commonwealth of Puerto Rico, the Common25 wealth of the Northern Mariana Islands, Guam,
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1 American Samoa, the Virgin Islands, and any other

2 territory or possession of the United States.

3 (11) MAJOR ILLICIT DRUG PRODUCING COUN4 TRY.—The term ‘‘major illicit drug producing coun5 try’’ means a country producing five metric tons or

6 more of opium or opium derivative during a fiscal

7 year or producing five hundred metric tons or more

8 of coca or marijuana (as the case may be) during a

9 fiscal year.

10 (12) MAJOR DRUG TRANSIT COUNTRY.—The

11 term ‘‘major drug transit country’’ means a coun12 try—

13 (A) that is a significant direct source of il14 licit narcotic or psychotropic drugs or other

15 controlled substances significantly affecting the

16 United States;

17 (B) through which are transported such

18 drugs or substances; or

19 (C) through which significant sums of

20 drug-related profits or monies are laundered

21 with the knowledge or complicity of the govern22 ment.

23 (13) NARCOTIC AND PSYCHOTROPIC DRUGS

24 AND OTHER CONTROLLED SUBSTANCES.—The term

25 ‘‘narcotic and psychotropic drugs and other con-
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1 trolled substances’’ has the same meaning as is

2 given by any applicable international narcotics con3 trol agreement or domestic law of the country or

4 countries concerned.

5 (14) AGRICULTURE.—The term ‘‘agriculture’’

6 includes aquaculture and fisheries.

7 (15) FARMERS.—The term ‘‘farmers’’ includes

8 fishermen and other persons employed in cultivating

9 and harvesting food resources from salt and fresh

10 waters.

11 (16) INSTITUTION OF HIGHER EDUCATION.—

12 The term ‘‘institution of higher education’’ has the

13 same meaning that term is given by section 1201(a)

14 of the Higher Education Act of 1965.

15 (17) ARMED FORCES.—The term ‘‘Armed

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

17 Corps, and Coast Guard of the United States.

18 (18) DEFENSE ARTICLE AND RELATED

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

20 military equipment’’, and ‘‘major defense equip21 ment’’ shall have the same meaning as in the Arms

22 Export Control Act. The term ‘‘defense service’’ in23 cludes any service (including education and train24 ing), test, inspection, repair, publication, or technical

25 or other assistance or defense information used for
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1 the purpose of furnishing assistance administered

2 through the Department of Defense under this Act.

3 (19) EXCESS DEFENSE ARTICLES.—The term

4 ‘‘excess defense articles’’ means the quantity of de5 fense articles owned by the United States Govern6 ment, and not procured in anticipation of defense

7 assistance or sales requirements, or pursuant to a

8 defense assistance or sales order, which is in excess

9 of the Approved Acquisition Objective of all Depart10 ment of Defense Components at the time such arti11 cles are dropped from inventory by the supplying

12 agency for delivery to countries or international or13 ganizations under this Act.

14 (20) VALUE.—The term ‘‘value’’ means—

15 (A) with respect to an excess defense arti16 cle, the actual value of the article plus the gross

17 cost incurred by the United States Government

18 in repairing, rehabilitating, or modifying the ar19 ticle, except that for purposes of section

20 8201(c) such actual value shall not be taken

21 into account;

22 (B) with respect to a nonexcess defense ar23 ticle delivered from inventory to a foreign coun24 try or international organization under this Act,

25 the acquisition cost to the United States Gov-
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1 ernment, adjusted as appropriate for condition

2 and market value; or

3 (C) with respect to a nonexcess defense ar4 ticle delivered from new procurement to a for5 eign country or international organization

6 under this Act, the contract or production costs

7 of such article.

8 (21) ASSISTANCE ADMINISTERED THROUGH

9 THE DEPARTMENT OF DEFENSE.—The term ‘‘assist10 ance administered through the Department of De11 fense’’ means—

12 (A) the financing (including the guarantee

13 of financing) of sales of defense articles (includ14 ing excess defense articles) and defense services

15 (including education and training) made or li16 censed pursuant to sections 21, 22, 29, and 38

17 of the Arms Export Control Act and the lease

18 of defense articles made pursuant to chapter 6

19 of that Act;

20 (B) the provision of education or training

21 through the Department of Defense under this

22 Act;

23 (C) the provision of excess defense articles

24 through the Department of Defense under sec25 tion 8405 of this Act; or
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1 (D) the provision of assistance through the

2 Department of Defense under sections 3103,

3 3204, 7111 and 7115(b) of this Act.

4 SEC. 8552. ACTIVITIES UNDER OTHER LAWS NOT AF5 FECTED.

6 Unless expressly provided to the contrary, provisions

7 of this Act and other provisions of law applicable to for8 eign assistance shall not be construed to prohibit (or, with

9 respect to the Export-Import Bank of the United States,

10 apply to) activities authorized by or conducted under the

11 Peace Corps Act, the United States Information and Edu12 cational Exchange Act of 1948, the Mutual Educational

13 and Cultural Exchange Act of 1961, the Export-Import

14 Bank Act of 1945, the Agricultural Act of 1949, the Agri15 cultural Trade Development and Assistance Act of 1954,

16 the Food for Progress Act of 1985, the Inter-American

17 Foundation Act, the African Development Foundation

18 Act, commercial export promotion activities of the Depart19 ment of Agriculture (including the Commodity Credit Cor20 poration), or to programs for which funds are made avail21 able outside Budget Function 150.
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1 TITLE IX—TECHNICAL AND CONFORMING

2 PROVISIONS

3 SEC. 9101. EFFECTIVE DATE.

4 Except as otherwise provided in this Act, the provi5 sions of this Act shall take effect on October 1, 1994.

6 SEC. 9102. SAVINGS PROVISIONS.

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

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

9 authorizations, regulations, orders, contracts, agreements,

10 and other actions issued, undertaken, or entered into

11 under authority of any provision of law repealed by this

12 Act shall continue in full force and effect until modified

13 by appropriate authority.

14 (2) Wherever provisions of this Act establish condi15 tions which must be complied with before use may be

16 made of authority contained in, or funds made available

17 to carry out the provisions of this Act, compliance with,

18 or satisfaction of, substantially similar conditions under

19 provisions repealed by this Act shall be deemed to con20 stitute compliance with the conditions established by this

21 Act.

22 (3) Funds made available pursuant to provisions of

23 law repealed by this Act shall, unless otherwise authorized

24 or provided by law, remain available for their original pur25 poses in accordance with the provisions of law originally
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1 applicable thereto, or in accordance with the provisions of

2 law currently applicable to those purposes.

3 (4) References in law to provisions repealed by this

4 Act may hereafter be deemed to be references to cor5 responding provisions of this Act, on a case-by-case basis

6 as may be appropriate.

7 (b) CERTAIN PRESIDENTIAL APPOINTEES.—The re8 peal by this Act of any provision of the Foreign Assistance

9 Act of 1961 providing for the appointment of an individual

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

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

12 of that provision in substantively identical form does not

13 require the reappointment of the individual holding that

14 position on the effective date specified in section 9101.

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

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

17 the effective date specified in section 9101 of this Act,

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

19 For purposes of this section, references in section 124(c)

20 to sections 101 and 102 of the Foreign Assistance Act

21 of 1961 shall be deemed to be references to sections 1101

22 and 1102 of this Act, respectively.

23 (d) GUARANTEES AND LOANS UNDER FORMER AU24 THORITY.—Guarantees committed or outstanding under

25 the former authorities of sections 108, 222, and 222A of
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1 the Foreign Assistance Act of 1961, as in effect before

2 the effective date specified in section 9101 of this Act,

3 loans obligated under section 108 on or before such date,

4 the fees and interest collected in connection with such

5 guarantees and loans, and income on claims receivable

6 with respect to such guarantees and loans, shall continue

7 to be subject to provisions of such Act originally applicable

8 to those guarantees and loans and the Federal Credit Re9 form Act of 1990.

10 SEC. 9103. MISCELLANEOUS PROVISIONS.

11 (a) FEDERAL ACT OF STATE DOCTRINE.—

12 (1) IN GENERAL.—Notwithstanding any other

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

14 decline on the ground of the federal act of state doc15 trine to make a determination on the merits giving

16 effect to the principles of international law in a case

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

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

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

20 traced through) a confiscation or other taking after

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

22 of the principles of international law, including the

23 principles of compensation and the other standards

24 set out in section 620(e)(1) of the Foreign Assist-
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1 ance Act of 1961 as in effect before the effective

2 date of this section.

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

4 applicable—

5 (A) in any case in which an act of a for6 eign state is not contrary to international law

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

8 to property acquired pursuant to an irrevocable

9 letter of credit of not more than 180 days dura10 tion issued in good faith prior to the time of the

11 confiscation or other taking; or

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

13 President determines that application of the act

14 of state doctrine is required in that particular

15 case by the foreign policy interests of the Unit16 ed States and a suggestion to this effect is filed

17 on his behalf in that case with the court.

18 (b) ACCOUNTING AND VALUATION OF FOREIGN CUR19 RENCIES.—

20 (1) Under the direction of the President, the

21 Secretary of the Treasury shall have responsibility

22 for valuation and central accounting with respect to

23 foreign credits (including currencies) owed to or

24 owned by the United States. In order to carry out

25 such responsibility, the Secretary shall issue regula-
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1 tions binding upon all agencies of the United States

2 Government.

3 (2) The Secretary of the Treasury shall have

4 sole authority to establish for all foreign currencies

5 or credits the exchange rates at which such cur6 rencies are to be reported by all agencies of the Gov7 ernment.

8 (c) VALUATION OF EXPROPRIATED PROPERTY.—

9 (1) VALUATION.—If the President requests

10 such an evaluation, the Foreign Claims Settlement

11 Commission is authorized to evaluate the value of

12 the property which is the subject of an action de13 scribed in section 7201(a) (3) of this Act and render

14 an advisory report with respect to the value of such

15 property to the President.

16 (2) DEFINITION OF UNITED STATES PERSON.—

17 For purposes of section (a)(3), the term ‘United

18 States person’ means a United States citizen or a

19 corporation, partnership, or association at least 50

20 percent beneficially owned by United States citizens.

21 (d) PARTICIPATION IN FOREIGN POLICE ACTIONS.—

22 (1) PROHIBTION ON EFFECTING AN ARREST.—

23 No officer or employee of the United States may di24 rectly effect an arrest in any foreign country as part

25 of any foreign police action with respect to narcotics
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1 control efforts, notwithstanding any other provision

2 of law.

3 (2) EXCEPTIONS.—Paragraph (1) does not pro4 hibit an officer or employee of the United States—

5 (A) with the approval of the United States

6 chief of mission, from being present when for7 eign officers are effecting an arrest or from as8 sisting foreign officers who are effecting an ar9 rest.

10 (B) from taking direct action to protect

11 life or safety if exigent circumstances arise

12 which are unanticipated and which pose an im13 mediate threat to United States officers or em14 ployees, officers or employees of a foreign gov15 ernment, or members of the public.

16 (3) MARITIME LAW ENFORCEMENT.—With the

17 agreement of a foreign country, paragraph (1) does

18 not apply with respect to maritime law enforcement

19 operations in the territorial sea of that country.

20 (4) INTERROGATIONS.—No officer or employee

21 of the United States may interrogate or be present

22 during the interrogation of any United States person

23 arrested in any foreign country with respect to nar24 cotics control efforts without the written consent of

25 such person.
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1 (5) EXCEPTION FOR STATUS OF FORCES AR2 RANGEMENTS.—This section does not apply to the

3 activities of the United States Armed Forces in car4 rying out their responsibilities under applicable Sta5 tus of Forces arrangements.

6 (6) DEFINITION.—For purposes of this sub7 section, the term ‘legal and law enforcement meas8 ures’ means—

9 (A) the enactment and implementation of

10 laws and regulations or the implementation of

11 existing laws and regulations to provide for the

12 progressive control, reduction, and gradual

13 elimination of the illicit cultivation, production,

14 processing, transportation, and distribution of

15 narcotic drugs and other controlled substances;

16 and

17 (B) the effective organization, staffing,

18 equipping, funding, and activation of those gov19 ernmental authorities responsible for narcotics

20 control.

21 SEC. 9104. CONFORMING AND OTHER AMENDMENTS.

22 (a) TITLE 5, UNITED STATES CODE.—Subchapter II

23 of chapter 53 of title 5, United States Code, is amended—
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1 (1) in section 5314, by striking out ‘‘Director,

2 Institute for Scientific and Technological Coopera3 tion.’’;

4 (2) in section 5315, by striking out ‘‘Deputy

5 Director, Institute for Scientific and Technological

6 Cooperation.’’; and

7 (3) in section 5316, by striking out ‘‘Additional

8 officers, Institute for Scientific and Technological

9 Cooperation (2).’’.

10 (b) TITLE 15, UNITED STATES CODE.—Section

11 638(e)(1) of title 15, United States Code is amended by

12 striking out ‘‘for the Agency’’ through ‘‘countries’’ and in13 serting in lieu thereof ‘‘the provisions of this section shall

14 not be applicable to the programs administered by the

15 United States Agency for International Development’’.

16 (c) ARMS EXPORT CONTROL ACT.—The Arms Ex17 port Control Act is amended as follows:

18 (1) Section 2(b) is amended by striking out—

19 (A) ‘‘or financing for’’ in paragraph (1);

20 (B) ‘‘financing,’’ both other places it ap21 pears.

22 (2) Section 3(c) is amended—

23 (A) in paragraph (1), by striking out

24 ‘‘(1)(A) No’’ and all that follows through ‘‘(B)
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1 No cash’’ and inserting in lieu thereof ‘‘(1)

2 No’’;

3 (B) in paragraph (1), as amended by sub4 paragraph (A), by striking out ‘‘under this Act,

5 or any predecessor Act,’’ and inserting in lieu

6 thereof ‘‘, through sale, financing or otherwise,

7 under this Act or the Peace, Prosperity, and

8 Democracy Act of 1994 (or under any prede9 cessor military sales or foreign assistance legis10 lation)’’;

11 (C) in paragraph (3)(A), by striking out

12 ‘‘subparagraph (A)’’ and all that follows

13 through ‘‘such paragraphs,’’ and inserting in

14 lieu thereof ‘‘paragraph (1)’’; and

15 (D) in paragraph (3)(B), by striking out

16 ‘‘subparagraph (B) of’’.

17 (3) Section 3 is amended—

18 (A) in subsection (d), by striking out ‘‘sec19 tion 505(a)(1) or 505(a)(4) of the Foreign As20 sistance Act of 1961’’ and inserting in lieu

21 thereof ‘‘section 8212(a)(1) of the Peace, Pros22 perity, and Democracy Act of 1994’’; and

23 (B) in subsection (e), by striking out ‘‘sec24 tion 505 of the Foreign Assistance Act of

25 1961’’ and inserting in lieu thereof ‘‘section
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1 8212(a)(1) of the Peace, Prosperity, and De2 mocracy Act of 1994’’.

3 (4) Section 4 is amended by inserting after

4 ‘‘such friendly countries’’ ‘‘or, if financed with as5 sistance furnished under the Peace, Prosperity, and

6 Democracy Act of 1994, for such other purposes as

7 are provided for under that Act’’.

8 (5) Section 5(a) is amended by striking out ‘‘,

9 and no credits (including participations in credits) or

10 guaranties extended to or for’’ and inserting in lieu

11 thereof ‘‘to’’.

12 (6) Section 6 is amended—

13 (A) by striking out ‘‘, no credits or guaran14 tees may be extended,’’; and

15 (B) by inserting ‘‘and no assistance admin16 istered through the Department of Defense may

17 be furnished under the Peace, Prosperity, and

18 Democracy Act of 1994’’ after ‘‘this Act’’.

19 (7) Section 21 is amended—

20 (A) by amending (a)(1)(c) to read as fol21 lows, ‘‘in the case of the sale of a defense serv22 ice, the full cost to the United States Govern23 ment of furnishing such service, except that in

24 the case of training sold to a purchaser that is

25 concurrently receiving assistance under the
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1 Peace, Prosperity, and Democracy Act of 1994

2 or is separately justified for the fiscal year in

3 which the associated letter of offer is issued,

4 only those additional costs that are incurred by

5 the United States in furnishing such training’’;

6 (B) by amending subsection (c)(1) to read

7 as follows:

8 ‘‘(A) Members of the Armed Forces as9 signed or detailed to provide defense services

10 under this Act may not perform duties of a

11 combatant nature, including any duty related to

12 training and advising that may engage United

13 States Armed Forces personnel in combat ac14 tivities, outside the United States in connection

15 with the performance of those defense services.

16 ‘‘(B) Subparagraph (A) shall not apply if

17 the President determines, and reports to the

18 Congress, that its application would not be in

19 the national interest of the United States.’’; and

20 (C) in subsection (e)—

21 (i) by deleting subparagraph (1)(B);

22 (ii) by deleting ‘‘(C)’’ in subparagraph

23 (1)(c) and inserting in lieu thereof ‘‘(D)’’;

24 (iii) by deleting paragraph (2); and
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1 (iv) by deleting ‘‘(3)’’ and inserting in

2 lieu thereof ‘‘(2)’’.

3 (8) Section 23 is repealed.

4 (9) Section 24 is amended—

5 (A) by amending this section caption to

6 read ‘‘Provisions Relating to Former Credit and

7 Guaranty Authorities’’;

8 (B) in subsection (a), by striking out

9 ‘‘The’’ in the first sentence and inserting in lieu

10 thereof ‘‘To the extent necessary to carry out

11 the provisions under the heading ‘‘Foreign Mili12 tary Sales Debt Reform’’ in title III of the For13 eign Operations, Export Financing, and Related

14 Programs Appropriations Act, 1988 (as con15 tained in section 101(e) of Public Law 100–

16 202), the’’;

17 (C) in subsection (b) by inserting ‘‘before

18 the effective date of the Peace, Prosperity, and

19 Democracy Act of 1994’’ after ‘‘section 23’’;

20 and

21 (D) by striking out subsection (c) and in22 serting in lieu thereof the following:

23 ‘‘(c) The single reserve established under this section

24 for the payment of claims under guarantees issued under
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1 the authority of this section may be referred to as the

2 ‘Foreign Military Loan Liquidating Account’.

3 ‘‘(d) Any guarantees issued under the authority of

4 this section are backed by the full faith and credit of the

5 United States.’’.

6 (10) Section 25(a) is amended—

7 (A) in paragraph (5)(A) by striking out

8 ‘‘military education’’ and all that follows

9 through ‘‘guarantees,’’ and inserting in lieu

10 thereof ‘‘and assistance administered through

11 the Department of Defense under the Peace,

12 Prosperity, and Democracy Act of 1994,’’;

13 (B) in paragraph (5)(B) by striking out

14 ‘‘credits or guaranties under this Act’’ and in15 serting in lieu thereof ‘‘assistance administered

16 through the Department of Defense under the

17 Peace, Prosperity, and Democracy Act of

18 1994’’; and

19 (C) in paragraph (11) by inserting before

20 the semicolon at the end of the paragraph the

21 following:

22 ‘‘, and the status of each provision of assistance ad23 ministered through the Department of Defense for

24 the procurement of defense articles or defense serv25 ices under the Peace, Prosperity, and Democracy
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1 Act of 1994 with respect to which there remains

2 outstanding any unpaid obligation or potential liabil3 ity’’.

4 (11) Section 25(d), as added by 112(b) of the

5 International Security and Development Cooperation

6 Act of 1985, is amended by striking out ‘‘under this

7 Act or under section 503(a)(3) of the Foreign As8 sistance Act of 1961’’ and inserting in lieu thereof

9 ‘‘with assistance administered through the Depart10 ment of Defense under the Peace, Prosperity, and

11 Democracy Act of 1994’’.

12 (12) Section 31 is amended—

13 (A) by striking out ‘‘Authorization and Ag14 gregate Ceiling on Foreign Military Sales Cred15 its.’’ and all that follows through ‘‘(d)’’ and in16 serting in lieu thereof ‘‘Aggregate Costs’’; and

17 (B) by striking out ‘‘of chapter 2 of part

18 II of the Foreign Assistance Act of 1961’’ and

19 inserting in lieu thereof ‘‘the Peace, Prosperity,

20 and Democracy Act of 1994’’.

21 (13) Section 36(a) is amended—

22 (A) in paragraph (7), by striking out

23 ‘‘under chapters 2, 5, 6 or 8 of part II of the

24 Foreign Assistance Act of 1961’’ and inserting

25 in lieu thereof ‘‘assistance administered through
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1 the Department of Defense under the Peace,

2 Prosperity, and Democracy Act of 1994’’; and

3 (B) in paragraph (10), by striking out

4 ‘‘section 505(a)(1)(B) of the Foreign Assistance

5 Act of 1961’’ and inserting in lieu thereof ‘‘sec6 tions 8212 and 8213 of the Peace, Prosperity,

7 and Democracy Act of 1994’’.

8 (14) Section 37 is amended—

9 (A) in the section caption by striking out

10 ‘‘Relating to Foreign Military Sales Credits’’;

11 (B) in subsection (a), by striking out ‘‘sec12 tion 23’’ and inserting in lieu thereof ‘‘the

13 former authority of section 23 or under the au14 thority of the Peace, Prosperity, and Democ15 racy Act of 1994’’; and

16 (C) in subsection (b), by inserting ‘‘the

17 former authority of’’ after ‘‘extended pursuant

18 to’’.

19 (15) Section 42 is amended—

20 (A) in subsection (a) by striking out ‘‘, but

21 subject to subsection (b) of this section,’’ in the

22 first sentence and inserting in lieu thereof ‘‘;’’;

23 (B) in subsection (b), by striking out ‘‘No

24 credit sale shall be extended under section 23,

25 and no guarantee shall be issued under section
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1 24’’ and inserting in lieu thereof ‘‘No assistance

2 shall be furnished under the Peace, Prosperity,

3 and Democracy Act of 1994 to be administered

4 through the Department of Defense for the fi5 nancing of sales of defense articles or services’’;

6 and

7 (C) in subsection (d)(1), by striking out

8 ‘‘and guaranties under sections 21, 22, 23, 24,’’

9 and inserting in lieu thereof ‘‘under sections 21,

10 22,’’.

11 (16) Section 47(1) is amended by deleting ‘‘sec12 tion 644(g) of the Foreign Assistance Act of 1991’’

13 and inserting in lieu thereof, ‘‘section 8551(19) of

14 the Peace, Prosperity, and Democracy Act of 1994’’.

15 (d) UNITED STATES AGENCY FOR INTERNATIONAL

16 DEVELOPMENT.—References in any Act to the ‘‘Agency

17 for International Development’’ shall be deemed to be a

18 reference to the United States Agency for International

19 Development.

20 SEC. 9105. TRANSITION RULES AND MILITARY ASSISTANCE.

21 (a) DISPOSITION OF CERTAIN PREVIOUSLY PRO22 VIDED MILITARY EQUIPMENT.—The President may waive

23 requirements imposed pursuant to sections 505(a)(4) and

24 (f) of the Foreign Assistance Act of 1961, as in effect be25 fore the effective date of this title, with respect to defense
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1 articles or related training or other defense services fur2 nished before that date.

3 (b) COMMITMENT OF PRIOR YEAR MILITARY ASSIST4 ANCE.—If the President at any time notifies Congress

5 that no further sales will be made pursuant to the Arms

6 Export Control Act after the date of such notification to

7 a specified country under circumstances then prevailing,

8 any uncommitted funds allocated for such country that

9 were transferred under the authority of section 8202(g)(6)

10 of this Act, the former authority of section 23 of the Arms

11 Export Control Act, and the former authority of section

12 503(a)(3) of the Foreign Assistance Act of 1961 for the

13 purpose of financing such sales may be committed to fi14 nance such sales to other eligible countries subject to ad15 vance notification to the Committees on Appropriations

16 and Foreign Relations of the Senate and the Committees

17 on Appropriations and Foreign Affairs of the House of

18 Representatives.

19 (c) SALES.—Sales Under the Arms Export Control

20 Act which are wholly paid from funds that, prior to the

21 effective date of this Act, were transferred under the

22 former authority of section 503(a)(3) of the Foreign As23 sistance Act of 1961 or were made available on a

24 nonrepayable or grant basis under section 23 of the Arms
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1 Export Control Act, shall be priced on the same basis as

2 described in section 8201(d).

3 SEC. 9106. REPEAL OF OBSOLETE PROVISIONS.

4 (a) 1992 JOBS THROUGH EXPORT ACT.—Title III

5 of the Jobs Through Exports Act of 1992 is repealed.

6 (b) 1988 OPIC ACT.—The Overseas Private Invest7 ment Corporation Amendments Act of 1988 (as enacted

8 by reference by section 555 of the Foreign Operations, Ex9 port Financing, and Related Programs Appropriations

10 Act, 1989) is repealed.

11 (c) 1988 INTERNATIONAL NARCOTICS CONTROL

12 ACT.—The International Narcotics Control Act of 1988

13 is repealed.

14 (d) 1988 FOREIGN OPERATIONS APPROPRIATIONS

15 ACT.—Section 537(h)(2) of the Foreign Operations, Ex16 port Financing, and Related Programs Appropriations

17 Act, 1988, as included in Public Law 100–202, is

18 repealed.

19 (e) NARCOTICS CONTROL TRADE ACT.—Section

20 802(e) and 804 of the Narcotics Control Trade Act (which

21 is title VIII of the Trade Act of 1974) are repealed.

22 (f) 1987 FOREIGN ASSISTANCE APPROPRIATIONS

23 ACT.—Section 539(g)(2) of the Foreign Assistance and

24 Related Programs Appropriations Act, 1987, as included

25 in Public Law 99–591, is repealed.
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1 (g) 1986 DRUG ACT.—The International Narcotics

2 Control Act of 1986 (which is title II of the Anti-Drug

3 Abuse Act of 1986) is repealed.

4 (h) 1986 ASSISTANCE ACT.—The Special Foreign

5 Assistance Act of 1986 is repealed except for section 1

6 and section 204.

7 (i) 1986 ANGLO-IRISH AGREEMENT SUPPORT ACT.—

8 Section 6 of the Anglo-Irish Agreement Support Act of

9 1986 is repealed.

10 (j) 1985 ASSISTANCE ACT.—The International Secu11 rity and Development Cooperation Act of 1985 is repealed

12 except for section 1, section 131, section 132, section 504,

13 section 505, part B of title V (other than section 558 and

14 section 559), section 1302, section 1303, and section

15 1304.

16 (k) 1985 JORDAN SUPPLEMENTAL ACT.—The Jor17 dan Supplemental Economic Assistance Authorization Act

18 of 1985 is repealed.

19 (l) 1985 AFRICAN FAMINE ACT.—The African Fam20 ine Relief and Recovery Act of 1985 is repealed.

21 (m) 1983 ASSISTANCE ACT.—The International Se22 curity and Development Assistance Authorization Act of

23 1983 is repealed.

24 (n) 1983 LEBANON ASSISTANCE ACT.—The Lebanon

25 Emergency Assistance Act of 1983 is repealed.
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1 (o) 1981 ASSISTANCE ACT.—The International Secu2 rity and Development Cooperation Act of 1981 is repealed

3 except for section 1, section 709, and section 714.

4 (p) 1981 OPIC AMENDMENTS ACT.—The OPIC

5 Amendments Act of 1981 is repealed.

6 (q) 1980 ASSISTANCE ACT.—The International Secu7 rity and Development Cooperation Act of 1980 is repealed

8 except for section 1, section 110, section 315, and title

9 V.

10 (r) 1979 DEVELOPMENT ASSISTANCE ACT.—The

11 International Development Cooperation Act of 1979 is

12 repealed.

13 (s) 1979 SECURITY ASSISTANCE ACT.—The Inter14 national Security Assistance Act of 1979 is repealed.

15 (t) 1979 SPECIAL SECURITY ASSISTANCE ACT.—The

16 Special International Security Assistance Act of 1979 is

17 repealed.

18 (u) 1978 DEVELOPMENT ASSISTANCE ACT.—The

19 International Development and Food Assistance Act of

20 1978 is repealed, except for section 1, title IV, and section

21 603(a)(2).

22 (v) 1978 SECURITY ASSISTANCE ACT.—The Inter23 national Security Assistance Act of 1978 is repealed.

24 (w) 1977 DEVELOPMENT ASSISTANCE ACT.—The

25 International Development and Food Assistance Act of
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1 1977 is repealed, except for section 1, section 132(b), and

2 section 133.

3 (x) 1977 SECURITY ASSISTANCE ACT.—The Inter4 national Security Assistance Act of 1977 is repealed.

5 (y) 1976 SECURITY ASSISTANCE ACT.—The Inter6 national Security Assistance and Arms Export Control Act

7 is repealed, except for section 1, section 201(b), section

8 212(b), section 601, and section 608.

9 (z) 1975 DEVELOPMENT ASSISTANCE ACT.—The

10 International Development and Food Assistance Act of

11 1975 is repealed.

12 (aa) 1975 BIB ACT.—Public Law 94–104 is re13 pealed.

14 (bb) 1974 ASSISTANCE ACT.—The Foreign Assist15 ance Act of 1974 is repealed.

16 (cc) 1973 EMERGENCY ASSISTANCE ACT.—The

17 Emergency Security Assistance Act of 1973 is repealed.

18 (dd) 1973 ASSISTANCE ACT.—The Foreign Assist19 ance Act of 1973 is repealed.

20 (ee) 1973 DEPARTMENT OF STATE APPROPRIATIONS

21 AUTHORIZATION ACT.—Section 13 of the Department of

22 State Appropriations Authorization Act of 1973 is re23 pealed.

24 (ff) 1971 ASSISTANCE ACT.—The Foreign Assistance

25 Act of 1971 is repealed.
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1 (gg) 1971 SPECIAL ASSISTANCE ACT.—The Special

2 Foreign Assistance Act of 1971 is repealed.

3 (hh) 1971 FMS ACT.—The Act entitled ‘‘An Act to

4 amend the Foreign Military Sales Act, and for other pur5 poses’’, approved January 12, 1971 (Public Law 91–672),

6 is repealed.

7 (ii) 1969 ASSISTANCE ACT.—The Foreign Assistance

8 Act of 1969 is repealed, except for the first section and

9 part IV.

10 (jj) 1968 ASSISTANCE ACT.—The Foreign Assistance

11 Act of 1968 is repealed.

12 (kk) 1964 ASSISTANCE ACT.—The Foreign Assist13 ance Act of 1964 is repealed.

14 (ll) FOREIGN ASSISTANCE ACT OF 1961.—The For15 eign Assistance Act of 1961, as amended, is repealed ex16 cept for the first section, section 226, chapter 11 of part

17 I, and part IV.

18 (mm) LATIN AMERICAN DEVELOPMENT ACT.—The

19 Latin American Development Act is repealed.

20 (nn) 1959 MUTUAL SECURITY ACT.—The Mutual

21 Security Act of 1959 is repealed.

22 (oo) 1954 MUTUAL SECURITY ACT.—Section 402

23 and section 417 of the Mutual Security Act of 1954 are

24 repealed.
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1 (pp) 1979 REORGANIZATION PLAN.—Reorganization

2 Plan No. 2 of 1979 is repealed.

3 (qq) FREEDOM SUPPORT ACT.—Section 907 of the

4 FREEDOM Support Act is repealed.

5 (rr) MIGRATION AND REFUGEE ASSISTANCE ACT.—

6 The Migration and Refugee Assistance Act of 1962 is re7 pealed.

8 (ss) 1982–3 STATE AUTHORIZATION ACT.—Section

9 109 of the Department of State Authorization Act, Fiscal

10 Years 1982 and 1983, is repealed.

11 (tt) 1984–5 DEPARTMENT OF STATE AUTHORIZA12 TION ACT.—Sections 1004 and 1005(a) of the Depart13 ment of State Authorization Act, Fiscal Years 1984 and

14 1985, are repealed.

15 (uu) SAVINGS PROVISION.—Except as otherwise pro16 vided in this Act, the repeal by this Act of any provision

17 of law that amended or repealed another provision of law

18 does not affect in any way that amendment or repeal.

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