I

104TH CONGRESS

2D SESSION H. R. 3974

To amend the Foreign Assistance Act of 1961 to prohibit the provision

of assistance to foreign governments that provide assistance to Cuba.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 2, 1996

Mr. ZIMMER introduced the following bill; which was referred to the

Committee on International Relations

A BILL

To amend the Foreign Assistance Act of 1961 to prohibit

the provision of assistance to foreign governments that

provide assistance to Cuba.

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

3 SECTION 1. PROHIBITION ON ASSISTANCE TO FOREIGN

4 GOVERNMENTS PROVIDING ASSISTANCE TO

5 CUBA.

6 (a) IN GENERAL.—Section 620 of the Foreign Assist7 ance Act of 1961 (22 U.S.C. 2370) is amended by adding

8 at the end the following new subsection:

9 ‘‘(y)(1) No assistance may be provided under this Act

10 (other than humanitarian assistance and assistance for
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1 refugees), and no assistance or sales may be provided

2 under the Arms Export Control Act, for a fiscal year to

3 any foreign government that the President determines has

4 provided economic assistance to or engaged in nonmarket5 based trade with the Government of Cuba, or any entity

6 controlled by such Governments in the preceding fiscal

7 year.

8 ‘‘(2) For purposes of paragraph (1)—

9 ‘‘(A) the term ‘humanitarian assistance’ means

10 food (including the monetization of food), clothing,

11 medicine, and medical supplies; and

12 ‘‘(B) the term ‘nonmarket-based trade’ includes

13 exports, imports, exchanges, or other trade arrange14 ments under which goods or services are provided on

15 terms more favorable than those generally available

16 in applicable markets or for comparable commod17 ities, including—

18 ‘‘(i) exports to the Government of Cuba on

19 terms that involve a grant, concessional price,

20 guaranty, insurance, or subsidy;

21 ‘‘(ii) imports from the Government of Cuba

22 at preferential tariff rates;

23 ‘‘(iii) exchange arrangements that include

24 advance delivery of commodities, arrangements

25 in which the Government of Cuba is not held
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1 accountable for unfulfilled exchange contracts,

2 and arrangements under which such Govern3 ment does not pay appropriate transportation,

4 insurance, or finance costs; and

5 ‘‘(iv) the exchange, reduction, or forgive6 ness of debt of the Cuban Government in re7 turn for a grant by the Cuban Government of

8 an equity interest in a property, investment, or

9 operation of the Cuban Government or of a

10 Cuban national.’’.

11 (b) EFFECTIVE DATE.—

12 (1) IN GENERAL.—Except as provided in para13 graph (2), the prohibition on assistance to a foreign

14 government contained in section 620(y) of the For15 eign Assistance Act of 1961, as added by subsection

16 (a), shall apply only with respect to assistance pro17 vided in fiscal years beginning on or after the date

18 of the enactment of this Act.

19 (2) EXCEPTION.—In the case of the fiscal year

20 in which this Act is enacted, such prohibition shall

21 apply with respect to the obligation or expenditure

22 of assistance on or after the date of the enactment

23 of this Act.

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