I

103D CONGRESS

1ST SESSION H. R. 2404

To authorize appropriations for foreign assistance programs, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 14, 1993

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

Committee on Foreign Affairs

A BILL

To authorize appropriations for foreign assistance programs,

and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Foreign Assistance Au5 thorization Act of 1993’’.

6 SEC. 2. TABLE OF CONTENTS.

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

Sec. 1. Short title.

Sec. 2. Table of contents.

TITLE I—REFORM OF FOREIGN ASSISTANCE PROGRAMS

Sec. 101. Need for foreign assistance reform.

Sec. 102. Evaluation and accountability.
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TITLE II—AUTHORIZATIONS FOR FOREIGN ASSISTANCE

PROGRAMS

Sec. 201. Authorizations of appropriations for fiscal year 1994.

Sec. 202. Child survival activities and Vitamin A Deficiency Program and related activities.

Sec. 203. Housing guarantee program.

Sec. 204. Overseas Private Investment Corporation.

Sec. 205. Special debt reduction authority.

Sec. 206. Special Defense Acquisition Fund.

TITLE III—REGIONAL PROVISIONS

Sec. 301. Sub-Saharan Africa disaster assistance.

Sec. 302. African Development Foundation.

Sec. 303. Conflict resolution initiative for Africa.

Sec. 304. SADC projects.

Sec. 305. South Africa.

Sec. 306. Sudan.

Sec. 307. Zaire.

Sec. 308. Afghanistan humanitarian assistance.

Sec. 309. Multilateral Assistance Initiative for the Philippines.

Sec. 310. Assistance for Eastern Europe and the Baltics.

Sec. 311. Assistance for the independent states of the former Soviet Union.

Sec. 312. Assistance for Mongolia.

Sec. 313. Termination of IMET program for Malta.

Sec. 314. Administration of justice and other law enforcement assistance programs for Latin America and the Caribbean.

Sec. 315. Waiver of Brooke amendment for Nicaragua.

Sec. 316. Special notification requirements for Guatemala and Peru.

Sec. 317. Assistance for the Middle East.

Sec. 318. Military drawdown for Israel.

TITLE IV—PROVISIONS RELATING TO ARMS TRANSFERS

Sec. 401. Competitive pricing for sales of defense articles and services.

Sec. 402. Increase in aggregate ceiling on transfers of excess defense articles.

Sec. 403. Eligibility of East European countries to receive nonlethal excess defense articles.

Sec. 404. Exception to payment of full cost for sales of defense training services to certain countries and international organizations.

Sec. 405. Eligibility of major non-NATO allies to receive certain contract services in connection with sales of defense articles and services.

Sec. 406. Additions to war reserve stockpiles for allies.

Sec. 407. Arab boycott.

TITLE V—OTHER FOREIGN ASSISTANCE PROVISIONS

Sec. 501. Interest accruing to nongovernmental organizations.

Sec. 502. Private Sector Revolving Fund.

Sec. 503. Development assistance through nongovernmental organizations.

Sec. 504. Impact of foreign assistance programs on jobs in the United States.

Sec. 505. Capital projects.

Sec. 506. Microenterprise development.

Sec. 507. Report on AID’s implementation of Agenda 21 principles.

Sec. 508. Authority to provide reconstruction assistance under international

disaster assistance.
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Sec. 509. Deobligation of certain unexpended economic assistance funds.

TITLE VI—BOSNIA-HERCEGOVINA

Sec. 601. Short title.

Sec. 602. Findings.

Sec. 603. United States arms embargo of the Government of BosniaHercegovina.

Sec. 604. United States military assistance for Bosnia-Hercegovina.

Sec. 605. Authority of the Secretary of Defense.

1 TITLE I—REFORM OF FOREIGN

2 ASSISTANCE PROGRAMS

3 SEC. 101. NEED FOR FOREIGN ASSISTANCE REFORM.

4 (a) NEED FOR REFORM.—The Congress—

5 (1) remains convinced that United States for6 eign assistance programs and the Agency for Inter7 national Development are in need of immediate re8 form; and

9 (2) remains prepared to enact reform legislation

10 in time for the fiscal year 1995 authorization and

11 appropriations cycle.

12 (b) COMPREHENSIVE REFORM PLAN.—To facilitate

13 this reform process, the President shall submit to the Con14 gress, within 60 days after the date of enactment of this

15 Act, a plan for comprehensive reform of United States for16 eign assistance programs and of the agency primarily re17 sponsible for administering part I of the Foreign Assist18 ance Act of 1961.
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1 SEC. 102. EVALUATION AND ACCOUNTABILITY.

2 Section 125 of the Foreign Assistance Act of 1961

3 is amended to read as follows:

4 ‘‘SEC. 125. EVALUATION AND ACCOUNTABILITY.

5 ‘‘(a) NEED FOR EVALUATION.—In order to effec6 tively and responsibly manage the resources with which

7 it is provided, the agency primarily responsible for admin8 istering this part must have a capacity to evaluate objec9 tively the extent of its progress in achieving development

10 results and to derive lessons from its development experi11 ence.

12 ‘‘(b) ACTIONS TO BE TAKEN.—In furtherance of

13 subsection (a), the President shall establish a program

14 performance, monitoring, and evaluation capacity within

15 the agency primarily responsible for administering this

16 part that will do the following:

17 ‘‘(1) Enhance, through training and other

18 means, the use of program performance, monitoring,

19 and evaluation as a management tool, by both the

20 agency and its counterparts in countries receiving

21 assistance, in the planning, designing, and imple22 mentation of foreign assistance projects and pro23 grams.

24 ‘‘(2) Develop a program performance informa25 tion system to afford agency managers at all levels

26 a means for monitoring and assessing achievement
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1 of impact and interim performance of the agency’s

2 major programs in support of the strategic manage3 ment of economic assistance.

4 ‘‘(3) Prepare and disseminate objective and

5 periodic reports on the progress of the agency in

6 meeting development objectives and on lessons

7 learned from its development programs.

8 ‘‘(4) Strengthen the capacity to utilize the find9 ings of program performance, measurement, and

10 evaluation in decisions of the agency about program

11 direction and resource allocation.

12 ‘‘(5) Coordinate with the Inspector General of

13 the agency so as to ensure appropriate

14 complementarity of efforts, recognizing that—

15 ‘‘(A) it is the responsibility of the agency

16 to direct a system of performance measurement

17 and independent evaluations of its programs

18 and policies, as well as the operational and

19 management systems that affect the develop20 ment impact of those programs and policies;

21 and

22 ‘‘(B) it is the responsibility of the Inspec23 tor General to conduct regular and comprehen24 sive assessments and audits of financial man25 agement and administrative systems, including
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1 the adequacy of the systems for monitoring and

2 evaluating agency projects and programs.

3 ‘‘(c) ACCOUNTABILITY.—The President shall prepare

4 an annual report to the Congress as a separate part of

5 the congressional presentation materials of the agency pri6 marily responsible for administering this part. This report

7 shall include the following:

8 ‘‘(1) An assessment of progress toward the

9 achievement of sustainable development objectives,

10 based on the findings of program performance, mon11 itoring, and evaluation studies conducted by the

12 agency and on such other empirical analyses as may

13 be appropriate.

14 ‘‘(2) An analysis, on a country-by-country basis,

15 of the impact on economic development in each such

16 country during the preceding 3 to 5 fiscal years of

17 United States economic assistance programs, with a

18 discussion of the United States interests that were

19 served by the assistance. Each country receiving eco20 nomic assistance under this part or under the Sup21 port for East European Democracy (SEED) Act of

22 1989 shall be included in such an analysis at least

23 once every 5 years. For each country, the analysis

24 shall—
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1 ‘‘(A) describe the specific objectives the

2 United States sought to achieve in providing

3 economic assistance, and specify the extent to

4 which those objectives were or were not

5 achieved;

6 ‘‘(B) to the extent possible, be done on a

7 sector-by-sector basis and identify trends (both

8 favorable and unfavorable) within each sector

9 and, if relevant, identify any economic policy re10 forms conducive to sustainable economic growth

11 that were promoted by the assistance and the

12 progress being made by the country in adopting

13 economic policies that foster and enhance the

14 freedom and opportunity of individuals to par15 ticipate in economic growth in the country;

16 ‘‘(C) as part of the context of United

17 States economic assistance, describe the amount

18 and nature of economic assistance provided by

19 other major donors during the preceding 3 to 5

20 fiscal years, set forth by the development sector

21 to the extent possible; and

22 ‘‘(D) contain statistical and other informa23 tion necessary to evaluate the impact and effec24 tiveness of United States economic assistance

25 on development in the country.’’.
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1 TITLE II—AUTHORIZATIONS FOR

2 FOREIGN ASSISTANCE PROGRAMS

3 SEC. 1201. AUTHORIZATIONS OF APPROPRIATIONS FOR FIS4 CAL YEAR 1994.

5 (a) ECONOMIC ASSISTANCE.—There are authorized

6 to be appropriated for fiscal year 1994 the following

7 amounts for the following purposes:

8 (1) DEVELOPMENT ASSISTANCE FUND.—

9 $850,000,000 to carry out sections 103 through 106

10 of the Foreign Assistance Act of 1961.

11 (2) POPULATION, DEVELOPMENT ASSIST12 ANCE.—$395,000,000 to carry out section 104(b) of

13 the Foreign Assistance Act of 1961.

14 (3) DEVELOPMENT FUND FOR AFRICA.—

15 $900,000,000 to carry out chapter 10 of part I of

16 the Foreign Assistance Act of 1961.

17 (4) INTERNATIONAL DISASTER ASSISTANCE.—

18 $148,965,000 to carry out section 491 of the For19 eign Assistance Act of 1961.

20 (5) AMERICAN SCHOOLS AND HOSPITALS.—

21 $35,000,000 to carry out section 214 of the Foreign

22 Assistance Act of 1961.

23 (6) MULTILATERAL ASSISTANCE INITIATIVE

24 FOR THE PHILIPPINES.—$30,000,000 for assistance
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1 for the Philippines under chapter 4 of part I of the

2 Foreign Assistance Act of 1961.

3 (7) ASSISTANCE FOR EASTERN EUROPE AND

4 THE BALTIC STATES.—$400,000,000 for economic

5 assistance for Eastern Europe and the Baltic states

6 under the Foreign Assistance Act of 1961 and the

7 Support for East European Democracy (SEED) Act

8 of 1989.

9 (8) ASSISTANCE FOR THE INDEPENDENT

10 STATES OF THE FORMER SOVIET UNION.—

11 $903,820,000 to carry out chapter 11 of part I of

12 the Foreign Assistance Act of 1961 and to carry out

13 exchanges and training and similar programs under

14 section 807 of the Freedom for Russia and Emerg15 ing Eurasian Democracies and Open Markets Sup16 port Act of 1992.

17 (9) INTER-AMERICAN FOUNDATION.—

18 $30,960,000 to carry out section 401 of the Foreign

19 Assistance Act of 1969.

20 (10) AFRICAN DEVELOPMENT FOUNDATION.—

21 $18,000,000 to carry out the African Development

22 Foundation Act.

23 (11) INTERNATIONAL FUND FOR IRELAND.—

24 $19,600,000 to carry out part I of the Foreign As25 sistance Act of 1961, which shall be available for the
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1 United States contribution to the International

2 Fund for Ireland in accordance with the Anglo-Irish

3 Agreement Support Act of 1986. Amounts appro4 priated under this paragraph are authorized to re5 main available until expended.

6 (b) SECURITY ASSISTANCE.—There are authorized to

7 be appropriated for fiscal year 1994 the following amounts

8 for the following purposes:

9 (1) FOREIGN MILITARY FINANCING PROGRAM

10 GRANTS.—$3,200,000,000 for grants under section

11 23 of the Arms Export Control Act. Funds made

12 available under this paragraph shall be nonrepayable

13 notwithstanding any requirement of that section.

14 (2) FOREIGN MILITARY FINANCING PROGRAM

15 LOANS.—$57,000,000 for the cost (as defined in

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

17 1990) of loans under section 23 of the Arms Export

18 Control Act.

19 (3) ECONOMIC SUPPORT FUND.—

20 $2,424,400,000 to carry out chapter 4 of part II of

21 the Foreign Assistance Act of 1961.

22 (4) INTERNATIONAL MILITARY EDUCATION AND

23 TRAINING.—$40,000,000 to carry out chapter 5 of

24 part II of the Foreign Assistance Act of 1961.
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1 (5) ANTI-TERRORISM ASSISTANCE.—

2 $15,555,000 to carry out chapter 8 of part II of the

3 Foreign Assistance Act of 1961.

4 (6) NONPROLIFERATION AND DISARMAMENT

5 FUND.—$25,000,000 to carry out section 504 of the

6 Freedom for Russia and Emerging Eurasian Democ7 racies and Open Markets Support Act of 1992.

8 (c) PEACE CORPS.—There are authorized to be ap9 propriated $219,745,000 for fiscal year 1994 to carry out

10 the Peace Corps Act.

11 (d) REDUCTION IN PREVIOUSLY ENACTED AUTHOR12 IZATION FOR INTERNATIONAL NARCOTICS CONTROL AS13 SISTANCE.—Section 482(a)(1) of the Foreign Assistance

14 Act of 1961 is amended by striking ‘‘$171,500,000’’ and

15 inserting ‘‘$135,000,000’’.

16 (e) RULE OF CONSTRUCTION.—In order to ensure

17 that all otherwise applicable authorities, restrictions, and

18 other provisions of law apply with respect to the amounts

19 that are authorized to be appropriated by this section for

20 fiscal year 1994, those amounts shall be deemed to be au21 thorized to be appropriated by the provision of the Foreign

22 Assistance Act of 1961 or other Act that provided the cor23 responding authorization of appropriations for prior fiscal

24 years.
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1 SEC. 202. CHILD SURVIVAL ACTIVITIES AND VITAMIN A DE2 FICIENCY PROGRAM AND RELATED ACTIVI3 TIES.

4 (a) CHILD SURVIVAL ACTIVITIES.—The Congress ex5 pects that not less than $275,000,000 of the funds made

6 available for fiscal year 1994 to carry out part I of the

7 Foreign Assistance Act of 1961 (relating to development

8 and other economic assistance) will be used for child sur9 vival activities.

10 (b) VITAMIN A DEFICIENCY PROGRAM AND RELATED

11 ACTIVITIES.—The Congress expects that not less than

12 $25,000,000 of the funds made available for fiscal year

13 1994 to carry out sections 103 through 106 of the Foreign

14 Assistance Act of 1961 (relating to development assist15 ance) will be made available for the Vitamin A Deficiency

16 Program and activities relating to iodine deficiency and

17 other micro-nutrients.

18 SEC. 203. HOUSING GUARANTEE PROGRAM.

19 (a) AUTHORIZATIONS.—

20 (1) COST OF GUARANTEED LOANS.—There are

21 authorized to be appropriated $16,407,000 for fiscal

22 year 1994 for the cost (as defined in section 502(5)

23 of the Federal Credit Reform Act of 1990) of guar24 anteed loans under sections 221 and 222 of the For25 eign Assistance Act of 1961.
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1 (2) PROGRAM CEILING.—Section 222(a) of that

2 Act is amended by striking ‘‘$2,558,000,000’’ in the

3 second sentence and inserting ‘‘$3,000,000,000’’.

4 (3) PROGRAM EXPIRATION DATE.—Section

5 222(a) of that Act is amended by striking ‘‘1992’’

6 in the third sentence and inserting ‘‘1995’’.

7 (4) ADMINISTRATIVE EXPENSES.—(A) There

8 are authorized to be appropriated $8,407,000 for

9 fiscal year 1994 for administrative expenses to carry

10 out guaranteed loan programs under sections 221

11 and 222 of that Act. Amounts appropriated under

12 this paragraph are authorized to remain available

13 until expended.

14 (B) Amounts appropriated under this para15 graph may be transferred to and merged with the

16 appropriations for ‘‘Operating Expenses of the

17 Agency for International Development’’.

18 (b) PREFERENTIAL TREATMENT TO PROJECTS IN

19 POORER COUNTRIES.—Section 222 of the Foreign Assist20 ance Act of 1961 is amended—

21 (1) by redesignating subsection (k) as sub22 section (e); and

23 (2) by inserting after subsection (c) the follow24 ing:
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1 ‘‘(d) PREFERENTIAL CONSIDERATION TO PROJECTS

2 IN POORER COUNTRIES.—In issuing guarantees under

3 this section and in carrying out related activities, the

4 President shall give preferential consideration to projects

5 in countries with an annual per capita income of $1,196

6 or less in 1991 United States dollars, and shall restrict

7 guarantees and related activities for projects in countries

8 with an annual per capita income of $5,190 or more in

9 1991 United States dollars.’’.

10 (c) FEE INCREASE.—

11 (1) STUDY.—The administrator of the agency

12 primarily responsible for administering part I of the

13 Foreign Assistance Act of 1961—

14 (A) shall conduct a study to determine the

15 feasibility of increasing the fees charged pursu16 ant to section 223(a) of that Act for guarantees

17 issued under sections 221 and 222 of that Act

18 in an effort to reduce the costs (as defined in

19 section 502(5) of the Federal Credit Reform

20 Act of 1990) of the guarantee program; and

21 (B) shall submit the results of this study

22 to the Committee on Foreign Affairs of the

23 House of Representatives and the Committee

24 on Foreign Relations of the Senate not later
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1 than 6 months after the date of enactment of

2 this Act.

3 (2) POLICY.—The administrator should in4 crease the fees described in paragraph (1)(A) to the

5 extent determined to be feasible in the study con6 ducted pursuant to this subsection.

7 SEC. 204. OVERSEAS PRIVATE INVESTMENT CORPORATION.

8 (a) PROGRAM AUTHORIZATION OF FISCAL YEAR

9 1995.—Section 235(a) of the Foreign Assistance Act of

10 1961 is amended—

11 (1) in paragraph (1) by striking

12 ‘‘$9,000,000,000’’ and inserting ‘‘$10,000,000,000’’;

13 (2) in paragraph (2)(A) by striking

14 ‘‘$2,500,000,000’’ and inserting ‘‘$3,500,000,000’’;

15 and

16 (3) in paragraph (2)(B)—

17 (A) by striking ‘‘and’’ at the end of clause

18 (i);

19 (B) by striking the period at the end of

20 clause (ii) and inserting ‘‘; and’’; and

21 (C) by inserting after clause (ii) the follow22 ing:

23 ‘‘(iii) to transfer such sums as are nec24 essary from its noncredit account revolving

25 fund to pay for the subsidy cost of a program
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1 level for the loan and loan guarantee program

2 under subsections (b) and (c) of section 234 of

3 $1,000,000,000 for fiscal year 1995.’’.

4 (b) TERMINATION DATE.—Section 235(a)(3) of that

5 Act is amended by striking ‘‘1994’’ and inserting ‘‘1995’’.

6 (c) ADMINISTRATIVE EXPENSES.—Section 235(g) of

7 that Act is amended—

8 (1) in paragraph (1) by striking ‘‘and’’;

9 (2) in paragraph (2) by striking the period and

10 inserting ‘‘; and’’; and

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

12 ‘‘(3) $15,000,000 for fiscal year 1995.’’.

13 SEC. 205. SPECIAL DEBT REDUCTION AUTHORITY.

14 (a) AUTHORITY TO REDUCE DEBT.—Notwithstand15 ing any other provision of law (other than the Federal

16 Credit Reform Act of 1990), the President may reduce

17 amounts of principal and interest owed to the United

18 States (or any agency of the United States) by an eligible

19 country as a result of—

20 (1) guarantees issued under sections 221 and

21 222 of the Foreign Assistance Act of 1961; or

22 (2) credits extended or guarantees issued under

23 the Arms Export Control Act.

24 (b) IMPLEMENTATION OF PARIS CLUB DEBT REDUC25 TION.—The authority provided by this section may be ex-
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1 ercised only to implement the multilateral official debt re2 lief ad referendum agreements that are commonly referred

3 to as ‘‘Paris Club Agreed Minutes’’.

4 (c) APPROPRIATIONS REQUIREMENT.—The authority

5 provided by this section may be exercised only in such

6 amounts or to such extent as is provided in advance by

7 appropriations Acts in accordance with the requirements

8 of the Federal Credit Reform Act of 1990.

9 (d) ELIGIBLE COUNTRIES.—For purposes of this sec10 tion, the term ‘‘eligible country’’ means a country that the

11 President determines—

12 (1) has a heavy debt burden; and

13 (2) is eligible to borrow from the International

14 Development Association but not from the Inter15 national Bank for Reconstruction and Development

16 (commonly referred to as an ‘‘IDA-only’’ country).

17 SEC. 206. SPECIAL DEFENSE ACQUISITION FUND.

18 (a) DECAPITALIZATION.—Notwithstanding section

19 51(b) of the Arms Export Control Act, collections de20 scribed in that section that are in excess of obligational

21 authority provided in foreign operations, export financing,

22 and related appropriations Acts for fiscal years prior to

23 fiscal year 1994 shall be deposited in the Treasury as mis24 cellaneous receipts.
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1 (b) AVOIDANCE OF DUPLICATIVE PROVISIONS.—Sub2 section (a) shall not apply if the Foreign Operations, Ex3 port Financing, and Related Programs Appropriations

4 Act, 1994, contains an identical requirement.

5 TITLE III—REGIONAL PROVISIONS

6 SEC. 301. SUB-SAHARAN AFRICA DISASTER ASSISTANCE.

7 The Congress expects that not less than

8 $100,000,000 of the funds made available for fiscal year

9 1994 to carry out section 491 of the Foreign Assistance

10 Act of 1961 (relating to international disaster assistance)

11 will be used for disaster relief, rehabilitation, and recon12 struction assistance for sub-Saharan Africa.

13 SEC. 302. AFRICAN DEVELOPMENT FOUNDATION.

14 (a) CEILING ON ASSISTANCE FOR A PROJECT.—Sec15 tion 505(a)(2) of the African Development Foundation

16 Act is amended by adding at the end the following: ‘‘In

17 exceptional circumstances, the board of directors of the

18 Foundation may waive such dollar limitation with respect

19 to a project. Any such waivers shall be reported to the

20 Congress annually.’’.

21 (b) AUTHORITY TO EMPLOY ALIENS.—Section

22 506(a) of that Act is amended—

23 (1) by redesignating paragraphs (8) through

24 (12) as paragraphs (9) through (13), respectively;

25 and
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1 (2) by inserting after paragraph (7) the follow2 ing:

3 ‘‘(8) when determined by the president of the

4 Foundation to be necessary (but subject to the limi5 tation established by paragraph (7) on the number

6 of Foundation employees), may employ persons who

7 are not citizens of the United States notwithstand8 ing any provision of law that would otherwise pro9 hibit the use of appropriated funds to pay the com10 pensation of officers or employees of the Government

11 who are not citizens of the United States;’’.

12 (c) TRAVEL EXPENSES.—

13 (1) MEMBERS OF BOARD.—Section 507(b) of

14 that Act is amended by striking ‘‘actual and nec15 essary expenses not exceeding $100 per day, and for

16 transportation expenses,’’ and inserting ‘‘travel ex17 penses, including per diem in lieu of subsistence, in

18 accordance with section 5703 of title 5, United

19 States Code,’’.

20 (2) CONFORMING AMENDMENT.—Section

21 507(e)(3) of that Act is amended by striking ‘‘and

22 other expenses’’ and inserting ‘‘expenses, including

23 per diem in lieu of subsistence,’’.

24 (d) INTEREST ACCRUING TO GRANTEES.—
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1 (1) AUTHORITY TO RETAIN.—The African De2 velopment Foundation Act is amended by adding at

3 the end the following:

4 ‘‘SEC. 511. INTEREST ACCRUING TO GRANTEES.

5 ‘‘When, with the permission of the Foundation, funds

6 made available to a grantee under this title are invested

7 pending disbursement, the resulting interest is not re8 quired to be deposited in the United States Treasury if

9 the grantee uses the resulting interest for the purpose for

10 which the grant was made.’’.

11 (2) EFFECTIVE DATE.—The amendment made

12 by paragraph (1) applies to both interest earned be13 fore and interest earned after the date of enactment

14 of this Act.

15 SEC. 303. CONFLICT RESOLUTION INITIATIVE FOR AFRICA.

16 (a) IMPROVING OAU’S CONFLICT RESOLUTION CA17 PABILITIES.—

18 (1) DESCRIPTION OF ASSISTANCE.—The Presi19 dent is authorized to provide assistance to help es20 tablish a permanent conflict resolution capability

21 within the Organization of African Unity (referred

22 to in this subsection as the ‘‘OAU’’), as follows:

23 (A) Funds may be provided to the OAU

24 for use in supporting its conflict resolution

25 capability.
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1 (B) Funds may be used for expenses of

2 sending individuals with expertise in conflict

3 resolution (who may include United States Gov4 ernment employees) from the United States to

5 work with the OAU for a period of up to 2

6 years.

7 (C) Funds may be provided to the OAU to

8 support the establishment and maintenance of

9 an African Conflict Resolution Research Center

10 that is linked to the OAU secretariat.

11 (2) FUNDING.—Of the funds that are allocated

12 for sub-Saharan Africa, not less than $1,500,000 for

13 each of the fiscal years 1994 through 1998 should

14 be used to carry out paragraph (1), in addition to

15 funds otherwise available for such purpose.

16 (3) REQUIREMENT FOR APPROVAL OF CERTAIN

17 REFORMS.—Assistance may be provided pursuant to

18 this subsection only if the President determines that

19 the OAU has approved and is in the process of im20 plementing the reforms proposed by the Secretary

21 General of the OAU in February 1993 in the In22 terim Report of the Secretary General on the Mech23 anisms for Conflict Prevention, Resolution and

24 Management.
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1 (b) IMPROVING CONFLICT RESOLUTION CAPABILI2 TIES OF MULTILATERAL SUBREGIONAL ORGANIZA3 TIONS.—

4 (1) TYPES OF ASSISTANCE TO BE PROVIDED.—

5 The President is authorized to provide assistance to

6 help establish permanent conflict resolution capabili7 ties within subregional organizations established by

8 countries in sub-Saharan Africa, as follows:

9 (A) Funds may be provided to such an or10 ganization for use in supporting its conflict res11 olution capability.

12 (B) Funds may be used for the expenses of

13 sending individuals with expertise in conflict

14 resolution (who may include United States Gov15 ernment employees) from the United States to

16 work with such an organization for a period of

17 up to 2 years.

18 (2) FUNDING.—Of the funds that are allocated

19 for sub-Saharan Africa under chapter 4 of part II

20 of the Foreign Assistance Act of 1961 (relating to

21 the economic support fund), up to $1,500,000 for

22 each of the fiscal years 1994 through 1998 may be

23 used to carry out paragraph (1).

24 (c) AFRICAN DEMOBILIZATION AND RETRAINING

25 PROGRAM.—
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1 (1) IN GENERAL.—In order to facilitate reduc2 tions in the size of the armed forces of countries of

3 sub-Saharan Africa, the President is authorized to

4 provide assistance for—

5 (A) encampment and related activities as6 sociated with demobilization of such forces, and

7 (B) the retraining for civilian occupations

8 of military personnel who have been demobi9 lized.

10 (2) FUNDING.—(A) Of the funds that are allo11 cated for sub-Saharan Africa under chapter 4 of

12 part II of the Foreign Assistance Act of 1961 (relat13 ing to the economic support fund) and under the

14 ‘‘Foreign Military Financing Program’’ account

15 under section 23 of the Arms Export Control Act,

16 $10,000,000 for fiscal year 1994 should be used for

17 the assistance described in paragraph (1)(A).

18 (B) A portion of the funds made available for

19 fiscal year 1994 to carry out chapter 10 of part I

20 of the Foreign Assistance Act of 1961 (relating to

21 the Development Fund for Africa) may be used for

22 the assistance described in paragraph (1)(B).

23 (d) IMET CONFLICT RESOLUTION PROGRAM.—

24 Chapter 5 of part II of the Foreign Assistance Act of 1961

25 is amended by adding at the end the following:
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1 ‘‘SEC. 546. CONFLICT RESOLUTION PROGRAM FOR AFRICA.

2 ‘‘In addition to the other education and training ac3 tivities carried out under this chapter, the President is au4 thorized to establish a program to provide education and

5 training in conflict resolution for civilian and military per6 sonnel of countries in sub-Saharan Africa.’’.

7 SEC. 304. SADC PROJECTS.

8 (a) WAIVER OF BROOKE AMENDMENT.—Section

9 620(q) of the Foreign Assistance Act of 1961 and the cor10 responding section of the Foreign Operations, Export Fi11 nancing, and Related Programs Appropriations Act, 1994,

12 shall not apply with respect to assistance provided for fis13 cal year 1994 under section 496(o) of the Foreign Assist14 ance Act of 1961 (relating to support for SADC projects).

15 (b) TECHNICAL AMENDMENT.—Section 496(o) of the

16 Foreign Assistance Act of 1961 is amended—

17 (1) in the subsection heading by striking

18 ‘‘SADCC’’ and inserting ‘‘SADC’’; and

19 (2) in paragraph (1) by striking ‘‘Coordination

20 Conference (SADCC)’’ and inserting ‘‘Community

21 (SADC)’’.

22 SEC. 305. SOUTH AFRICA.

23 (a) REMOVAL OF CEILINGS ON GRANTS FOR HUMAN

24 RIGHTS PROJECTS.—Section 116 of Foreign Assistance

25 Act of 1961 is amended—
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1 (1) by repealing subparagraphs (C) and (D) of

2 subsection (e)(2); and

3 (2) in subsection (f)—

4 (A) by repealing paragraph (2), and

5 (B) by striking ‘‘(f)(1)’’ and inserting

6 ‘‘(f)’’ and by redesignating subparagraphs (A)

7 through (E) as paragraphs (1) through (5),

8 respectively.

9 (b) EXCEPTION TO LIMITATION ON ASSISTANCE RE10 CIPIENTS.—

11 (1) ASSISTANCE UNDER SECTION 116.—Section

12 116(e)(2)(B) of that Act is amended—

13 (A) in the fourth sentence, by striking ‘‘or

14 to organizations financed or controlled by the

15 Government of South Africa’’; and

16 (B) by adding at the end the following: ‘‘A

17 nongovernmental organization financed or con18 trolled by the Government of South Africa that

19 meets the criteria specified in this subpara20 graph may receive assistance under this para21 graph only if the President determines that (i)

22 the activities of that organization further the

23 purposes of the establishment of a non-racial

24 democratic state in South Africa, (ii) the provi25 sion of assistance to that organization will fur-
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1 ther the objective of this paragraph to assist

2 disadvantaged South Africans, and (iii) the

3 Government of South Africa is continuing to

4 make progress toward dismantling apartheid

5 and establishing a nonracial democracy. Before

6 making such determinations, the President shall

7 consult with the appropriate congressional com8 mittees and with South African organizations

9 that are representative of the majority popu10 lation of South Africa and should seek a com11 mitment from the Government of South Africa

12 that it will provide additional resources to meet

13 the needs of disadvantaged South Africans. As

14 used in the preceding sentence, the term ‘appro15 priate congressional committees’ means the

16 Committee on Foreign Affairs and the Commit17 tee on Appropriations of the House of Rep18 resentatives and the Committee on Foreign Re19 lations and the Committee on Appropriations of

20 the Senate.’’.

21 (2) ASSISTANCE UNDER SECTION 117.—Section

22 117 of that Act (as added by section 201(b) of the

23 Comprehensive Anti-Apartheid Act of 1986) is

24 amended by adding at the end the following: ‘‘In ad25 dition, a nongovernmental organization that meets
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1 the criteria specified in the first 2 sentences of this

2 section but receives funds from the Government of

3 South Africa may receive assistance under this sec4 tion if the President determines that such organiza5 tion meets the requirements of the 5th sentence of

6 section 116(e)(2)(B), and such determination is

7 made in accordance with the 6th sentence of such

8 section.’’.

9 SEC. 306. SUDAN.

10 (a) STATEMENT OF THE CONGRESS.—The Con11 gress—

12 (1) strongly condemns the Government of

13 Sudan for its severe human rights abuses and calls

14 upon that government to improve human rights con15 ditions throughout the country;

16 (2) deplores the internecine fighting among the

17 factions of the Sudanese People’s Liberation Army;

18 (3) urges the Government of Sudan and the

19 factions of the Sudanese People’s Liberation Army

20 to provide full access for and to cooperate with relief

21 organizations;

22 (4) encourages the Government of Sudan to lift

23 the press ban which was imposed after it took power

24 in June 1989; and
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1 (5) calls on the Government of Sudan to estab2 lish a democratic system.

3 (b) RESTRICTIONS ON ASSISTANCE.—Except as pro4 vided in subsection (c), assistance may not be provided

5 for Sudan for fiscal year 1994—

6 (1) under chapter 1 or chapter 10 of part I of

7 the Foreign Assistance Act of 1961 (relating to de8 velopment assistance and the Development Fund for

9 Africa),

10 (2) under chapter 4 of part II of that Act (re11 lating to the economic support fund),

12 (3) under chapter 5 of part II of that Act (re13 lating to international military education and train14 ing), or

15 (4) from the ‘‘Foreign Military Financing Pro16 gram’’ account under section 23 of the Arms Export

17 Control Act.

18 (c) WAIVER OF RESTRICTIONS.—

19 (1) AUTHORIZATION.—The President may

20 waive the prohibitions in subsection (b) if the Presi21 dent determines, and reports in accordance with

22 paragraph (2), that there is substantial progress in

23 southern Sudan toward respecting human rights, re24 solving the conflict in that region, establishing a
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1 democratically elected government, and establishing

2 a reformed and independent judiciary system.

3 (2) CONGRESSIONAL REVIEW OF DETERMINA4 TION.—A determination under paragraph (1) shall

5 not become effective until 15 days after it is re6 ported to the congressional committees specified in

7 section 634A(a) of the Foreign Assistance Act of

8 1961 in accordance with the procedures applicable to

9 reprogramming notifications under that section.

10 SEC. 307. ZAIRE.

11 (a) STATEMENT OF THE CONGRESS.—The Con12 gress—

13 (1) strongly condemns the disruptive measures

14 taken by President Mobutu in recent months, and

15 holds President Mobutu responsible for the current

16 political crisis in Zaire;

17 (2) stresses the importance of a successful tran18 sition to democracy in Zaire;

19 (3) urges the President of the United States to

20 pressure President Mobutu to leave Zaire so that the

21 legitimate transitional government can proceed with

22 the process of democratization as mandated by the

23 Sovereign National Conference;
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1 (4) urges the President of the United States to

2 impose, in conjunction with our allies, a variety of

3 sanctions on President Mobutu, including—

4 (A) freezing the bank accounts of Presi5 dent Mobutu, his family and associates;

6 (B) denying visas to President Mobutu, his

7 family and associates; and

8 (C) expelling Mobutu’s ambassador;

9 (5) congratulates the people of Zaire for their

10 courageous support of democracy in the face of pow11 erful opposition; and

12 (6) expresses its readiness to explore further

13 ways of providing support for democracy and politi14 cal pluralism in Zaire.

15 (b) RESTRICTIONS ON ASSISTANCE.—

16 (1) SECURITY ASSISTANCE.—Except as pro17 vided in subsection (c), assistance may not be pro18 vided for Zaire for fiscal year 1994—

19 (A) under chapter 4 of part II of the For20 eign Assistance Act of 1961 (relating to the

21 economic support fund),

22 (B) under chapter 5 of part II of that Act

23 (relating to international military education and

24 training), or
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1 (C) from the ‘‘Foreign Military Financing

2 Program’’ account under section 23 of the

3 Arms Export Control Act.

4 (2) DEVELOPMENT ASSISTANCE.—Except as

5 provided in subsection (c), assistance under chapter

6 1 or chapter 10 of part I of the Foreign Assistance

7 Act of 1961 (relating to development assistance and

8 the Development Fund for Africa) for fiscal year

9 1994 shall not be transferred to the Government of

10 Zaire. This paragraph does not prohibit nongovern11 mental organizations from working with appropriate

12 ministries or departments of the Government of

13 Zaire.

14 (c) WAIVER WHEN THE DEMOCRATIC PROCESS IS

15 RESTORED.—

16 (1) AUTHORIZATION.—The President may

17 waive the prohibitions in subsection (b) if the Presi18 dent determines, and reports in accordance with

19 paragraph (2), that democracy has been restored in

20 Zaire, that President Mobutu is no longer a threat

21 to the elected government, and that the elected gov22 ernment is committed to bringing about freedom of

23 expression for the people of Zaire, a reformed and

24 independent judiciary, and reform of, and applica25 tions of the rule of law to, Zaire security forces.
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1 (2) CONGRESSIONAL REVIEW OF DETERMINA2 TION.—A determination under paragraph (1) shall

3 not become effective until 15 days after it is re4 ported to the congressional committees specified in

5 section 634A(a) of the Foreign Assistance Act of

6 1961 in accordance with the procedures applicable to

7 reprogramming notifications under that section.

8 SEC. 308. AFGHANISTAN HUMANITARIAN ASSISTANCE.

9 (a) AUTHORIZATION.—Funds described in subsection

10 (c) may be made available for the provision of food, medi11 cine, or other humanitarian assistance to the Afghan peo12 ple notwithstanding any other provision of law.

13 (b) ASSISTANCE FOR AFGHAN WOMEN AND GIRLS.—

14 In carrying out this section, the administrator of the agen15 cy primarily responsible for carrying out part I of the For16 eign Assistance Act of 1961 shall ensure that an equitable

17 portion of the funds is made available to benefit Afghan

18 women and girls, particularly in programs in refugee

19 camps in Pakistan and in reconstruction projects in Af20 ghanistan.

21 (c) FUNDING.—Up to $20,000,000 of the aggregate

22 amount of funds made available for fiscal year 1994 to

23 carry out chapter 1 of part I of the Foreign Assistance

24 Act of 1961 (relating to development assistance) and
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1 chapter 4 of part II of that Act (relating to the economic

2 support fund) may be used pursuant to this section.

3 SEC. 309. MULTILATERAL ASSISTANCE INITIATIVE FOR THE

4 PHILIPPINES.

5 Part I of the Foreign Assistance Act of 1961 is

6 amended by inserting after chapter 3 the following:

7 ‘‘Chapter 4—Multilateral Assistance Initiative for the

8 Philippines

9 ‘‘SEC. 401. AUTHORIZATION OF ASSISTANCE.

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

11 to provide economic assistance for the Philippines under

12 the ‘Multilateral Assistance Initiative’ account. Such as13 sistance shall be provided on such terms and conditions

14 as the President may determine.

15 ‘‘(b) AUTHORIZATION FOR EXTENDED PERIOD OF

16 AVAILABILITY.—Amounts appropriated to carry out this

17 chapter are authorized to remain available until ex18 pended.’’.

19 SEC. 310. ASSISTANCE FOR EASTERN EUROPE AND THE

20 BALTICS.

21 (a) ECONOMIC ASSISTANCE.—Section 3 of the Sup22 port for East European Democracy (SEED) Act of 1989

23 is amended—

24 (1) by redesignating subsection (c) as sub25 section (e); and
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1 (2) by inserting after subsection (b) the follow2 ing:

3 ‘‘(c) INAPPLICABILITY OF RESTRICTIONS AND RE4 QUIREMENTS.—Assistance provided for an East European

5 country under this Act or under part I of the Foreign As6 sistance Act of 1961 may be provided notwithstanding any

7 other provision of law, other than section 634A(a) of that

8 Act. Section 634A(a) of that Act shall also apply to funds

9 made available to carry out this Act.

10 ‘‘(d) AUTHORIZATION FOR EXTENDED PERIOD OF

11 AVAILABILITY.—Amounts appropriated for economic as12 sistance for East European countries under this Act or

13 the Foreign Assistance Act of 1961 are authorized to re14 main available until expended.’’.

15 (b) ASSISTANCE FOR VICTIMS OF WAR CRIMES IN

16 THE FORMER YUGOSLAVIA.—Assistance provided under

17 section 491 of the Foreign Assistance Act of 1961 (relat18 ing to international disaster assistance) and assistance

19 provided under the Migration and Refugee Assistance Act

20 of 1962 may include assistance for the victims of torture,

21 rape, and other war crimes stemming from the conflict in

22 the former Yugoslavia and for the families of such victims

23 (especially children), with a particular focus on victims of

24 the war in Bosnia-Herzegovina. Such assistance may in25 clude activities such as—
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1 (1) the provision (in the United States or

2 abroad)—

3 (A) of medical, psychological, and psy4 chiatric care and crisis counseling for such vic5 tims and their families, and

6 (B) of training of individuals in the former

7 Yugoslavia to provide such care and counseling;

8 and

9 (2) the procurement of necessary medical and

10 training supplies.

11 (c) CORRECTION OF REFERENCE.—Subsection (e) of

12 section 3 of the Support for East European Democracy

13 (SEED) Act of 1989, as so redesignated by subsection (a)

14 of this section, is amended—

15 (1) by striking ‘‘and Slovak Federal’’; and

16 (2) by inserting ‘‘the Slovak Republic,’’ after

17 ‘‘Romania,’’.

18 SEC. 311. ASSISTANCE FOR THE INDEPENDENT STATES OF

19 THE FORMER SOVIET UNION.

20 (a) CUBA.—

21 (1) SENSE OF THE CONGRESS.—It is the sense

22 of the Congress that—

23 (A) the acts of the Castro government, in24 cluding its massive, systematic, and extraor-
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1 dinary violations of human rights, are a threat

2 to international peace;

3 (B) the President should advocate, and

4 should instruct the United States Representa5 tives to the United Nations to support and con6 sult with members of the Security Council with

7 respect to, a mandatory international embargo

8 against the totalitarian government of Cuba

9 pursuant to Chapter VII of the Charter of the

10 United Nations, which is similar to consulta11 tions being conducted by United States Rep12 resentatives with respect to Haiti; and

13 (C) any resumption of efforts by any inde14 pendent state of the former Soviet Union to

15 make the nuclear facility at Cienfuegos, Cuba,

16 operational will have a serious impact on

17 United States assistance to such state.

18 (2) REPORTING REQUIREMENT.—The President

19 shall submit to the Congress, not later than 90 days

20 after the date of enactment of this Act, a report de21 tailing progress towards the withdrawal of personnel

22 of any independent state of the former Soviet Union

23 (including advisors, technicians, and military person24 nel) from the Cienfuegos nuclear facility in Cuba.
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1 (3) CRITERIA FOR ASSISTANCE.—Section

2 498A(a)(11) of the Foreign Assistance Act of 1961

3 is amended by striking ‘‘of military facilities’’ and

4 inserting ‘‘the military and nuclear facilities at

5 Lourdes and Cienfuegos’’.

6 (4) INELIGIBILITY FOR ASSISTANCE.—(A) Sec7 tion 498A(b) of that Act is amended—

8 (i) by striking ‘‘or’’ at the end of para9 graph (4);

10 (ii) by redesignating paragraph (5) as

11 paragraph (6); and

12 (iii) by inserting after paragraph (4) the

13 following:

14 ‘‘(5) for the government of any independent

15 state that the President determines is providing as16 sistance for, or engaging in nonmarket based trade

17 (as defined in section 498B(m)(3)) with, the Govern18 ment of Cuba; or’’.

19 (B) Subsection (m) of section 498B of that Act,

20 as so redesignated by subsections (d) and (e) of this

21 section, is amended by adding at the end the

22 following:

23 ‘‘(3) NONMARKET BASED TRADE.—As used in

24 section 498A(b)(5), the term ‘nonmarket based

25 trade’ includes exports, imports, exchanges, or other
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1 arrangements that are provided for goods and serv2 ices (including oil and other petroleum products) on

3 terms more favorable than those generally available

4 in applicable markets or for comparable commod5 ities, including—

6 ‘‘(A) exports to the Government of Cuba

7 on terms that involve a grant, concessional

8 price, guaranty, insurance, or subsidy;

9 ‘‘(B) imports from the Government of

10 Cuba at preferential tariff rates; and

11 ‘‘(C) exchange arrangements that include

12 advance delivery of commodities, arrangements

13 in which the Government of Cuba is not held

14 accountable for unfulfilled exchange contracts,

15 and arrangements under which Cuba does not

16 pay appropriate transportation, insurance, or fi17 nance costs.’’.

18 (b) TRANSFERS OF SOPHISTICATED CONVENTIONAL

19 WEAPONS TO IRAN.—Section 498A(b)(3) of that Act is

20 amended—

21 (1) in the text preceding subparagraph (A), by

22 striking ‘‘to another country’’;

23 (2) in subparagraph (A)—

24 (A) by inserting ‘‘to another country’’ after

25 ‘‘missiles or missile technology’’; and
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1 (B) by striking ‘‘or’’ at the end of such

2 subparagraph;

3 (3) in subparagraph (B)—

4 (A) by inserting ‘‘to another country’’ after

5 ‘‘any material, equipment, or technology’’; and

6 (B) by ‘‘or’’ at the end of such subpara7 graph; and

8 (4) by adding at the end the following:

9 ‘‘(C) sophisticated conventional weapons to

10 Iran in numbers and types that are destabiliz11 ing;’’.

12 (c) AUTHORITY TO WAIVE CERTAIN RESTRIC13 TIONS.—Section 498B(j)(1) of that Act is amended—

14 (1) by inserting ‘‘or 1994’’ after ‘‘1993’’ both

15 places it appears; and

16 (2) by striking ‘‘by this chapter’’ and inserting

17 ‘‘to carry out this chapter’’.

18 (d) ASSISTANCE IN EXCHANGE FOR COMMODITIES.—

19 (1) AUTHORIZATION.—Section 498B of that

20 Act is amended—

21 (A) by redesignating subsection (k) as sub22 section (l); and

23 (B) by inserting after subsection (j) the

24 following:
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1 ‘‘(k) ASSISTANCE IN EXCHANGE FOR COMMOD2 ITIES.—The President is authorized to provide assistance

3 under this chapter in exchange for materials or commod4 ities, including any strategic material and any commodity

5 the international supply of which is in such excess as to

6 jeopardize United States production of such commodity.’’.

7 (2) STUDY OF RESOURCES IN INDEPENDENT

8 STATES.—The President shall conduct a study of—

9 (A) the resources in each of the independ10 ent states of the former Soviet Union and the

11 prospective revenues from the production and

12 sale of such resources;

13 (B) the possible use of barter or exchange

14 of such resources as methods of reimbursement

15 for assistance provided to such states under

16 chapter 11 of part I of the Foreign Assistance

17 Act of 1961; and

18 (C) the collateralization of loan and invest19 ment guarantees provided by the United States

20 Government for project financing in such states

21 using the resources or prospective revenues

22 from the production and sale of such resources.

23 (3) REPORTS.—The President shall submit to

24 the relevant congressional committees the following

25 reports:
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1 (A) Periodic reports describing the status

2 of negotiations between the United States and

3 any independent state of the former Soviet

4 Union relating to agreements for reimburse5 ment of assistance provided to such state under

6 chapter 11 of part I of the Foreign Assistance

7 Act of 1961.

8 (B) A report containing the results of the

9 study conducted pursuant to paragraph (2), in10 cluding the names of those independent states

11 of the former Soviet Union capable of providing

12 eventual reimbursement of assistance provided

13 to such states under that chapter. Such report

14 shall be submitted not later than June 30,

15 1994.

16 (4) DEFINITIONS.—For purposes of this sub17 section, the following definitions apply:

18 (A) RELEVANT CONGRESSIONAL COMMIT19 TEES.—The term ‘‘relevant congressional com20 mittees’’ means the Committee on Foreign Af21 fairs of the House of Representatives and the

22 Committee on Foreign Relations of the Senate.

23 (B) RESOURCES.—The term ‘‘resources’’

24 includes commodities, raw materials (including

25 necessary or strategic raw materials, as defined
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1 in section 663(a) of the Foreign Assistance Act

2 of 1961), and other valuable materials.

3 (e) IMPROVING MONITORING OF ECONOMIC PER4 FORMANCE IN THE INDEPENDENT STATES.—Section

5 498B of that Act, as amended by subsection (d)(1) of this

6 section, is further amended—

7 (1) by redesignating subsection (l) as subsection

8 (m); and

9 (2) by inserting after subsection (k) the

10 following:

11 ‘‘(l) IMPROVING MONITORING OF ECONOMIC PER12 FORMANCE IN THE INDEPENDENT STATES.—Assistance

13 under section 498 shall include training and other tech14 nical assistance to develop capabilities to monitor eco15 nomic performance in the independent states of the former

16 Soviet Union through the collection, analysis, and dissemi17 nation of economic statistical data.’’.

18 SEC. 312. ASSISTANCE FOR MONGOLIA.

19 The President is authorized to use funds made avail20 able to carry out chapter 11 of part I of the Foreign As21 sistance Act of 1961 (relating to assistance for the inde22 pendent states of the former Soviet Union) to provide as23 sistance for Mongolia in accordance with the same au24 thorities, restrictions, and other provisions that are appli-
43

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1 cable to assistance under that chapter for independent

2 states of the former Soviet Union.

3 SEC. 313. TERMINATION OF IMET PROGRAM FOR MALTA.

4 Funds made available for fiscal year 1994 to carry

5 out chapter 5 of part II of the Foreign Assistance Act

6 of 1961 (relating to the international military education

7 and training program) may not be obligated for Malta.

8 SEC. 314. ADMINISTRATION OF JUSTICE AND OTHER LAW

9 ENFORCEMENT ASSISTANCE PROGRAMS FOR

10 LATIN AMERICA AND THE CARIBBEAN.

11 (a) EXTENSION OF PROGRAM AUTHORITY.—Section

12 534 of the Foreign Assistance Act of 1961 is amended

13 by striking the last sentence of subsection (e) and by in14 serting after subsection (e) the following:

15 ‘‘(f) The authority of this section shall expire on Sep16 tember 30, 1994.’’.

17 (b) ELIMINATION OF PROGRAM CEILINGS.—Section

18 534 of that Act is amended—

19 (1) by repealing the second sentence of sub20 section (e); and

21 (2) by amending subsection (c) to read as

22 follows:

23 ‘‘(c) Funds made available to carry out this chapter

24 may be used to provide assistance under this section.’’.
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1 (c) PROTECTION OF PARTICIPANTS IN JUDICIAL

2 CASES.—Section 534(b)(3) of that Act is amended—

3 (1) by redesignating subparagraphs (C) and

4 (D) as subparagraphs (D) and (E), respectively; and

5 (2) by inserting after subparagraph (B) the fol6 lowing:

7 ‘‘(C) programs to enhance protection of

8 participants in judicial cases;’’.

9 (d) SPECIAL AUTHORITIES FOR CERTAIN COUN10 TRIES.—Funds made available for fiscal year 1994 to

11 carry out section 534 of that Act may be used, notwith12 standing section 660 of that Act, to provide assistance as

13 follows:

14 (1) PANAMA.—Up to $10,000,000 may be made

15 available for Panama for the following:

16 (A) Technical assistance, training, and

17 commodities with the objective of creating a

18 professional civilian police force, except that as19 sistance under this subparagraph—

20 (i) shall not include more than

21 $5,000,000 for the procurement of equip22 ment for law enforcement purposes, and

23 (ii) shall not include lethal equipment.

24 (B) Programs to improve penal institutions

25 and the rehabilitation of offenders, which may
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1 include programs that are not conducted

2 through multilateral or regional institutions.

3 (2) EL SALVADOR.—Funds allocated for El Sal4 vador may be used for law enforcement assistance in

5 a manner consistent with the Salvadoran Peace

6 Accords.

7 SEC. 315. WAIVER OF BROOKE AMENDMENT FOR NICA8 RAGUA.

9 Section 620(q) of the Foreign Assistance Act of 1961

10 and the corresponding section of the Foreign Operations,

11 Export Financing, and Related Programs Appropriations

12 Act, 1994, shall not apply to funds made available for fis13 cal year 1994 for any assistance for Nicaragua under the

14 Foreign Assistance Act of 1961 or the Arms Export

15 Control Act.

16 SEC. 316. SPECIAL NOTIFICATION REQUIREMENTS FOR

17 GUATEMALA AND PERU.

18 Funds made available for fiscal year 1994 to carry

19 out the Foreign Assistance Act of 1961 or for the ‘‘For20 eign Military Financing Program’’ account under section

21 23 of the Arms Export Control Act may not be obligated

22 for assistance for Guatemala or Peru unless the congres23 sional committees specified in section 634A(a) of the For24 eign Assistance Act of 1961 are notified at least 15 days
46

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1 in advance in accordance with the reprogramming proce2 dures applicable under that section.

3 SEC. 317. ASSISTANCE FOR THE MIDDLE EAST.

4 (a) ISRAEL.—

5 (1) ECONOMIC SUPPORT FUND.—Of the

6 amounts made available for fiscal year 1994 for as7 sistance under chapter 4 of part II of the Foreign

8 Assistance Act of 1961, not less than

9 $1,200,000,000 shall be available only for Israel.

10 Such funds shall be available on a grant basis as a

11 cash transfer and shall be disbursed in accordance

12 with paragraph (3).

13 (2) FOREIGN MILITARY FINANCING.—(A) Of

14 the amounts made available for fiscal year 1994 for

15 assistance under the ‘‘Foreign Military Financing

16 Program’’ account under section 23 of the Arms Ex17 port Control Act, not less than $1,800,000,000 shall

18 be available only for Israel.

19 (B) To the extent that the Government of Is20 rael requests that funds be used for such purposes,

21 funds made available for Israel pursuant to this

22 paragraph shall, as agreed by Israel and the United

23 States, be available for advanced fighter aircraft

24 programs or for other advanced weapons systems, as

25 follows:
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1 (i) Up to $150,000,000 shall be available

2 for research and development in the United

3 States.

4 (ii) Not less than $475,000,000 shall be

5 available for the procurement in Israel of de6 fense articles and defense services, including re7 search and development.

8 (3) EARLY DISBURSEMENT.—The assistance

9 provided for Israel pursuant to paragraphs (1) and

10 (2) shall be disbursed within 30 days after the date

11 of enactment of the Foreign Operations, Export Fi12 nancing, and Related Programs Appropriations Act,

13 1994, or by October 31, 1993, whichever is later.

14 (b) EGYPT.—

15 (1) ECONOMIC SUPPORT FUND.—Of the

16 amounts made available for fiscal year 1994 for as17 sistance under chapter 4 of part II of the Foreign

18 Assistance Act of 1961, not less than $815,000,000

19 shall be available only for Egypt.

20 (2) FOREIGN MILITARY FINANCING.—Of the

21 amounts made available for fiscal year 1994 for as22 sistance under the ‘‘Foreign Military Financing Pro23 gram’’ account under section 23 of the Arms Export

24 Control Act, not less than $1,300,000,000 shall be

25 available only for Egypt.
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1 (c) COOPERATIVE DEVELOPMENT PROJECTS.—Of

2 the amounts made available for fiscal year 1994 to carry

3 out chapter 4 of part II of the Foreign Assistance Act

4 of 1961 (relating to the economic support fund), not less

5 than $10,000,000 shall be available only for cooperative

6 projects among the United States, Israel, and developing

7 countries, including projects under the Cooperative Devel8 opment Program, cooperative development research

9 projects, and cooperative projects among the United

10 States and Israel and the countries of Eastern Europe,

11 the Baltic states, and the independent states of the former

12 Soviet Union.

13 (d) MIDDLE EAST REGIONAL COOPERATIVE PRO14 GRAMS.—Of the amounts made available for fiscal year

15 1994 to carry out chapter 4 of part II of the Foreign As16 sistance Act of 1961 (relating to the economic support

17 fund), not less than $7,000,000 shall be available only for

18 Middle East regional cooperative programs carried out in

19 accordance with section 202(c) of the International Secu20 rity and Development Cooperation Act of 1985.

21 SEC. 318. MILITARY DRAWDOWN FOR ISRAEL.

22 Section 599B(a) of the Foreign Operations, Export

23 Financing, and Related Programs Appropriations Act,

24 1991, is amended by inserting ‘‘and fiscal year 1994’’

25 after ‘‘fiscal year 1993’’.
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1 TITLE IV—PROVISIONS RELATING TO

2 ARMS TRANSFERS

3 SEC. 401. COMPETITIVE PRICING FOR SALES OF DEFENSE

4 ARTICLES AND SERVICES.

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

6 Control Act is amended by adding at the end the following:

7 ‘‘(d) COMPETITIVE PRICING.—Procurement con8 tracts made in implementation of sales under this section

9 for defense articles and defense services wholly paid from

10 funds made available on a nonrepayable basis shall be

11 priced on the same costing basis with regard to profit,

12 overhead, independent research and development, bid and

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

14 procurements of like items purchased by the Department

15 of Defense for its own use.’’.

16 (b) EFFECTIVE DATE AND IMPLEMENTING REGULA17 TIONS.—The amendment made by subsection (a)—

18 (1) shall be effective as of the 60th day follow19 ing the date of the enactment of this section;

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

21 implementation of sales made after such effective

22 date; and

23 (3) shall be implemented by revised procure24 ment regulations, which shall be issued prior to such

25 effective date.
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1 SEC. 402. INCREASE IN AGGREGATE CEILING ON TRANS2 FERS OF EXCESS DEFENSE ARTICLES.

3 Effective October 1, 1993, section 31(d) of the Arms

4 Export Control Act is amended by striking

5 ‘‘$250,000,000’’ and inserting ‘‘$375,000,000’’.

6 SEC. 403. ELIGIBILITY OF EAST EUROPEAN COUNTRIES TO

7 RECEIVE NONLETHAL EXCESS DEFENSE AR8 TICLES.

9 (a) IN GENERAL.—Section 519(a) of the Foreign As10 sistance Act of 1961 is amended by inserting ‘‘or to any

11 East European country (as defined in section 3 of the

12 Support for East European Democracy (SEED) Act of

13 1989) other than an East European country that is pro14 hibited from receiving assistance under that Act’’ after ‘‘in

15 which the transfer is authorized’’.

16 (b) CONFORMING AMENDMENT.—Section 906(a) of

17 the Freedom for Russia and Emerging Eurasian Democ18 racies and Open Markets Support Act of 1992 is amend19 ed—

20 (1) by striking paragraph (2);

21 (2) by striking ‘‘eligible—’’ through ‘‘(1) to

22 purchase’’ and inserting ‘‘eligible to purchase’’;

23 (3) by redesignating subparagraphs (A) and

24 (B) as paragraphs (1) and (2), respectively, and by

25 resetting their left margins on a 2-em indentation;

26 and
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1 (4) by striking ‘‘; and’’ at the end of paragraph

2 (2), as so redesignated, and inserting a period.

3 SEC. 404. EXCEPTION TO PAYMENT OF FULL COST FOR

4 SALES OF DEFENSE TRAINING SERVICES TO

5 CERTAIN COUNTRIES AND INTERNATIONAL

6 ORGANIZATIONS.

7 Section 21(a) of the Arms Export Control Act is

8 amended—

9 (1) in paragraph (1)(C)—

10 (A) by inserting ‘‘(i)’’ after ‘‘sold to’’,

11 (B) by inserting ‘‘or (ii) a purchaser de12 scribed in paragraph (3)’’ after ‘‘Act of 1961’’,

13 and

14 (C) by striking ‘‘such assistance’’ and in15 serting ‘‘such training’’; and

16 (2) by adding after paragraph (2) the following:

17 ‘‘(3) Clause (ii) of paragraph (1)(C) applies in the

18 case of a purchaser of training under this section if the

19 President notifies the Committee on Appropriations, the

20 Committee on Armed Services, and the Committee on For21 eign Relations of the Senate and the Committee on Appro22 priations, the Committee on Armed Services, and the

23 Committee on Foreign Affairs of the House of Representa24 tives, in accordance with the regular notification proce25 dures of those committees, at least 15 days before issuing
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•HR 2404 IH

1 a letter of offer to sell such training. Such notification

2 shall include a description of any reciprocal benefits that

3 the United States Government will receive in exchange for

4 the sale of such training on less than a full cost basis.’’.

5 SEC. 405. ELIGIBILITY OF MAJOR NON-NATO ALLIES TO RE6 CEIVE CERTAIN CONTRACT SERVICES IN

7 CONNECTION WITH SALES OF DEFENSE ARTI8 CLES AND SERVICES.

9 (a) AUTHORIZATION.—Section 21(h) of the Arms Ex10 port Control Act is amended—

11 (1) in paragraph (1)(A), by inserting ‘‘or which

12 is a major non-NATO ally’’ after ‘‘Treaty Organiza13 tion’’;

14 (2) in paragraph (2), by striking ‘‘if that Orga15 nization or member government’’ and inserting ‘‘or

16 to any major non-NATO ally, if that Organization,

17 member government, or major non-NATO ally’’; and

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

19 ‘‘(3) As used in this subsection, the term ‘major non20 NATO ally’ has the meaning given such term in section

21 2350a(i)(3) of title 10, United States Code.’’.

22 (b) EFFECTIVE DATE.—Notwithstanding section

23 21(h)(1) of that Act, the amendment made by subsection

24 (a)(1) applies with respect to contracts and subcontracts

25 entered into after the date of enactment of this Act.
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1 SEC. 406. ADDITIONS TO WAR RESERVE STOCKPILES FOR

2 ALLIES.

3 Section 514(b)(2) of the Foreign Assistance Act of

4 1961 is amended by adding at the end the following: ‘‘Ex5 cept as provided in the last two sentences of this para6 graph, the value of such additions to stockpiles in foreign

7 countries in fiscal year 1994 shall not exceed $72,000,000,

8 which shall be for stockpiles in the Republic of Korea. In

9 addition, to the extent that the authority of the first sen10 tence of this paragraph has not been exercised with re11 spect to Israel in fiscal year 1993, that authority may be

12 exercised during fiscal year 1994 except that the aggre13 gate value of such additions for Israel in both such fiscal

14 years may not exceed $200,000,000. Defense articles hav15 ing an aggregate value of not to exceed $20,000,000 may

16 be added to stockpiles in Thailand in fiscal years 1993

17 and 1994.’’.

18 SEC. 407. ARAB BOYCOTT.

19 (a) PROHIBITION ON CERTAIN SALES AND

20 LEASES.—Defense articles and defense services may not

21 be sold or leased by the United States Government to any

22 country or international organization which as a matter

23 of policy or practice is known to have sent letters to

24 United States firms requesting compliance with, or solicit25 ing information regarding compliance with, the secondary

26 or tertiary Arab boycott, unless the President determines,
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1 and reports to the relevant congressional committees, that

2 that country or organization does not now send such let3 ters as a matter of policy or practice.

4 (b) WAIVER OF PROHIBITION.—

5 (1) 1 YEAR WAIVER.—After the effective date of

6 this section, the President may waive, for a period

7 of 1 year, the application of subsection (a) with re8 spect to any country or organization if the President

9 determines, and reports to the relevant congressional

10 committees, that—

11 (A) such waiver is in the national interest

12 of the United States, and such waiver will pro13 mote the objectives of this section to eliminate

14 the Arab boycott; or

15 (B) such waiver is in the national security

16 interest of the United States.

17 (2) EXTENSION OF WAIVER.—If the President

18 determines that the further extension of a waiver

19 will promote the objectives of this section, the Presi20 dent, with appropriate notification to relevant con21 gressional committees, may grant further extensions

22 of such waiver for successive 12-month periods.

23 (3) TERMINATION OF WAIVER.—The President

24 may, at any time, terminate any waiver granted

25 under this subsection.
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1 (c) RELEVANT CONGRESSIONAL COMMITTEES.—As

2 used in this section, the term ‘‘relevant congressional com3 mittees’’ means the Committee on Foreign Relations of

4 the Senate and the Committee on Foreign Affairs of the

5 House of Representatives.

6 (d) EFFECTIVE DATE.—This section shall not take

7 effect until one year after the date of enactment of this

8 Act.

9 TITLE V—OTHER FOREIGN ASSISTANCE

10 PROVISIONS

11 SEC. 501. INTEREST ACCRUING TO NONGOVERNMENTAL

12 ORGANIZATIONS.

13 (a) IN GENERAL.—Chapter 1 of part III of the For14 eign Assistance Act of 1961 is amended by inserting after

15 section 617 the following:

16 ‘‘SEC. 618. INTEREST ACCRUING TO NONGOVERNMENTAL

17 ORGANIZATIONS.

18 ‘‘(a) AUTHORITY TO RETAIN INTEREST.—A non19 governmental organization may place in an interest bear20 ing account—

21 ‘‘(1) funds made available on a grant basis

22 under part I of this Act or under the Support for

23 East European Democracy (SEED) Act of 1989;

24 and
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•HR 2404 IH

1 ‘‘(2) local currencies which accrue to that orga2 nization as a result of grant assistance provided

3 under part I of this Act or assistance under titles I

4 through III of the Agricultural Trade Development

5 and Assistance Act of 1954, section 416(b) of the

6 Agricultural Act of 1949, or the Food for Progress

7 Act of 1985.

8 Any interest so earned may be retained by the nongovern9 mental organization and used for the purpose for which

10 the assistance was provided to that organization.

11 ‘‘(b) LIMITATION ON ENDOWMENTS.—Any grant

12 agreement entered into after the date of enactment of this

13 section to establish an endowment pursuant to the author14 ity of subsection (a)(1) shall provide that—

15 ‘‘(1) the grant proceeds shall be maintained in

16 a separate account;

17 ‘‘(2) the agency primarily responsible for ad18 ministering part I may terminate at any time, in its

19 sole discretion, the endowment and recover endow20 ment principal equal to the amount of the grant;

21 and

22 ‘‘(3) unless the authority described in para23 graph (2) has been exercised, not later than 20

24 years after the date of the grant—
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1 ‘‘(A) the endowment shall be terminated,

2 and

3 ‘‘(B) all funds in the endowment and all

4 interest earned as a result of the endowment

5 shall be expended for the purpose for which the

6 assistance was provided or returned to the Gov7 ernment of the United States.’’.

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

9 this section applies to both interest earned before and in10 terest earned after the date of enactment of this Act.

11 SEC. 502. PRIVATE SECTOR REVOLVING FUND.

12 Section 108 of the Foreign Assistance Act of 1961

13 is amended by adding at the end the following:

14 ‘‘(j) TERMINATION OF AUTHORITY.—After the date

15 of enactment of this subsection, loans may not be made,

16 loan guarantees may not be issued, previously issued guar17 antees may not be renewed or otherwise extended, and as18 sistance may not otherwise be provided under the author19 ity of this section.’’.

20 SEC. 503. DEVELOPMENT ASSISTANCE THROUGH NON21 GOVERNMENTAL ORGANIZATIONS.

22 Chapter 1 of part III of the Foreign Assistance Act

23 of 1961 is amended by inserting before section 620 the

24 following:
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1 ‘‘SEC. 619. ASSISTANCE THROUGH NONGOVERNMENTAL

2 ORGANIZATIONS.

3 ‘‘(a) DEVELOPMENT ASSISTANCE.—Restrictions con4 tained in this or any other Act with respect to assistance

5 for a country shall not restrict assistance in support of

6 programs of nongovernmental organizations that is pro7 vided under chapter 1 or chapter 10 of part I of this Act.

8 The President shall take into consideration, in any case

9 in which a restriction on assistance would be applicable

10 but for this section, whether assistance in support of pro11 grams of nongovernmental organizations is in the national

12 interest of the United States.

13 ‘‘(b) NOTICE TO CONGRESS.—Before using the au14 thority of this section to furnish assistance in support of

15 programs of nongovernmental organizations, the President

16 shall notify the congressional committees specified in sec17 tion 634A(a) of this Act in accordance with the procedures

18 applicable to reprogramming notifications under that sec19 tion. Such notice shall include a description of the pro20 gram to be assisted, the assistance to be provided, and

21 the reasons for furnishing such assistance.

22 ‘‘(c) EXCEPTIONS.—This section shall not apply with

23 respect to—

24 ‘‘(1) section 620A of this Act or any com25 parable provision of law prohibiting assistance to

26 countries that support international terrorism; or
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1 ‘‘(2) section 116 of this Act or any comparable

2 provision of law prohibiting assistance to countries

3 that violate internationally recognized human rights.

4 ‘‘(d) ABORTION AND INVOLUNTARY STERILIZATION

5 PROHIBITIONS.—Nothing in this section alters any statu6 tory prohibition against funding for abortion or involun7 tary sterilizations.’’.

8 SEC. 504. IMPACT OF FOREIGN ASSISTANCE PROGRAMS ON

9 JOBS IN THE UNITED STATES.

10 Funds authorized to be appropriated by this Act for

11 foreign assistance programs for fiscal year 1994 may not

12 be obligated or expended to provide—

13 (1) any financial incentive to a business enter14 prise located in the United States for the purpose of

15 inducing that enterprise to relocate outside the Unit16 ed States if such incentive or inducement is likely to

17 reduce the number of individuals employed in the

18 United States by that enterprise because that enter19 prise would replace production in the United States

20 with production outside the United States;

21 (2) assistance for the purpose of establishing or

22 developing in a foreign country any export process23 ing zone or designated area in which the tax, tariff,

24 labor, environment, and safety laws of that country

25 do not apply, in part or in whole, to activities car-
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1 ried out within that zone or area, unless the Presi2 dent determines and certifies that such assistance is

3 not likely to cause a loss of jobs within the United

4 States; or

5 (3) assistance for any project or activity that

6 contributes to the violation of internationally recog7 nized workers rights (as defined in section 502(a)(4)

8 of the Trade Act of 1974) of workers in the recipi9 ent country, including in any designated zone or

10 area in that country.

11 In recognition that the application of paragraph (3) should

12 be commensurate with the level of development of the re13 cipient country and sector, that paragraph does not pre14 clude assistance for the informal sector in such country,

15 for microenterprises and small-scale enterprises, or for

16 small-holder agriculture.

17 SEC. 505. CAPITAL PROJECTS.

18 Chapter 3 of part III of the Foreign Assistance Act

19 of 1961 is amended by inserting after section 661 the fol20 lowing:

21 ‘‘SEC. 662. CAPITAL PROJECTS.

22 ‘‘(a) ESTABLISHMENT OF PILOT PROGRAM.—The

23 Director of the Trade and Development Agency shall es24 tablish a capital projects pilot program to carry out the

25 purpose described in subsection (b).
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1 ‘‘(b) PURPOSE OF PROGRAM.—The purpose referred

2 to in subsection (a) is to develop a program administered

3 by TDA that would focus solely on developmentally sound

4 capital projects in developing countries and in countries

5 making the transition from a nonmarket to a market econ6 omy, taking into consideration the development needs of

7 the host country and the export opportunities for the

8 United States.

9 ‘‘(c) ACTIVITIES.—The Director, in coordination with

10 the appropriate other members of the Trade Promotion

11 Coordination Committee—

12 ‘‘(1) shall support capital projects in developing

13 countries and in countries making the transition

14 from a nonmarket to a market economy; and

15 ‘‘(2) shall periodically review infrastructure

16 needs in these countries and shall explore opportuni17 ties for United States firms in the development of

18 new capital projects in these countries, keeping both

19 United States firms and the Congress informed of

20 these reviews.

21 ‘‘(d) GUARANTEE AUTHORITY.—In addition to mak22 ing grants to carry out this section, the Director is author23 ized to issue guarantees to eligible investors (as defined

24 in section 238(c)) assuring against losses incurred in con25 nection with loans obtained by such investors to finance
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1 their participation in capital projects described in sub2 section (b). A fee shall be charged for each such guarantee

3 issued in an amount to be determined by the Director.

4 ‘‘(e) PROCUREMENT FROM THE UNITED STATES.—

5 Guarantees and other financial support provided for cap6 ital projects under this section shall be provided for pro7 curement of goods and services from the United States

8 to the maximum extent possible, consistent with the guide9 lines of the Organization for Economic Cooperation and

10 Development.

11 ‘‘(f) PROJECTS TO BE DEVELOPMENTALLY

12 SOUND.—The Director, in coordination with the appro13 priate other members of the Trade Promotion Coordina14 tion Committee, shall ensure that each capital project for

15 which TDA provides financial support is developmentally

16 sound, as determined under the criteria developed by the

17 Development Assistance Committee of the Organization

18 for Economic Cooperation and Development.

19 ‘‘(g) COORDINATION.—The President shall utilize the

20 existing interagency coordinating mechanism to coordinate

21 activities under this section with other relevant activities

22 of the United States Government.

23 ‘‘(h) NONAPPLICABILITY OF OTHER PROVISIONS.—

24 Any funds used for purposes of this section may be used

25 notwithstanding any other provision of law.
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1 ‘‘(i) REPORT TO CONGRESS.—Not later than 1 year

2 after the date of enactment of this section, the Director

3 shall submit to the Congress a report describing—

4 ‘‘(1) the extent to which United States Govern5 ment resources have been expended specifically to

6 support the capitol projects described in subsection

7 (b);

8 ‘‘(2) the extent to which the activities of the

9 United States Government have been coordinated

10 pursuant to subsection (g); and

11 ‘‘(3) the feasibility of establishing a permanent

12 program modeled on the pilot program establishment

13 pursuant to this section.

14 ‘‘(j) FUNDING.—

15 ‘‘(1) IN GENERAL.—Notwithstanding the per16 centage limitations in section 610(a), the President

17 shall transfer $300,000,000 of funds specified in

18 paragraph (2) to TDA for use in carrying out this

19 section, including the cost (as defined in section

20 502(5) of the Federal Credit Reform Act of 1990)

21 of guarantees issued under subsection (d).

22 ‘‘(2) SOURCE OF FUNDS.—The funds specified

23 in this paragraph are—

24 ‘‘(A) funds made available for fiscal year

25 1994 for assistance under chapter 4 of part II
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1 of this Act (relating to the economic support

2 fund), excluding funds made available pursuant

3 to subsections (a)(1), (c), and (d) of section

4 1317 of the Foreign Assistance Authorization

5 Act of 1993;

6 ‘‘(B) funds made available for fiscal year

7 1994 for assistance under chapter 11 of part I

8 of this Act (relating to assistance for the inde9 pendent states of the former Soviet Union); and

10 ‘‘(C) funds made available for fiscal year

11 1994 for assistance under the Support for East

12 European Democracy (SEED) Act of 1989.

13 ‘‘(3) FUNDS TO BE USED TO SUPPORT CAPITAL

14 PROJECTS IN COUNTRIES FOR WHICH ORIGINAL

15 FUNDING WAS PROVIDED.—(A) Any funds described

16 in paragraph (2)(A) that are earmarked by the Con17 gress for a specific country and that are transferred

18 pursuant to paragraph (1) shall be used to support

19 capital projects in that country.

20 ‘‘(B) Any funds described in paragraph (2)(B)

21 that are transferred pursuant to paragraph (1) shall

22 be used to support capital projects in countries eligi23 ble for assistance under chapter 11 of part I of this

24 Act.
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1 ‘‘(C) Any funds described in paragraph (2)(C)

2 that are transferred pursuant to paragraph (1) shall

3 be used to support capital projects in countries eligi4 ble for assistance under the Support for East Euro5 pean Democracy (SEED) Act of 1989.

6 ‘‘(k) DEFINITIONS.—As used in this section—

7 ‘‘(1) the term ‘capital projects’ means a project

8 involving the construction, expansion, alteration of,

9 or the acquisition of equipment for, a physical facil10 ity or physical infrastructure, including related engi11 neering design (concept and detail) and other serv12 ices, the procurement of equipment (including any

13 related services), and feasibility studies or similar

14 engineering and economic services;

15 ‘‘(2) the term ‘Director’ means the Director of

16 TDA; and

17 ‘‘(3) the term ‘TDA’ means the Trade and De18 velopment Agency.’’.

19 SEC. 506. MICROENTERPRISE DEVELOPMENT.

20 Chapter 2 of part I of the Foreign Assistance Act

21 of 1961 is amended by adding after title V the following:

22 ‘‘TITLE VI—MICROENTERPRISE DEVELOPMENT

23 ‘‘SEC. 251. MICROENTERPRISE DEVELOPMENT.

24 ‘‘(a) CENTRALLY-MANAGED FUND.—

25 ‘‘(1) ESTABLISHMENT AND MANAGEMENT.—

26 The administrator of the agency primarily respon-
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1 sible for administering this part shall establish with2 in the agency a centrally-managed fund to be known

3 as the Microenterprise Development Fund (herein4 after in this section referred to as the ‘Fund’). The

5 Fund shall be managed by the office in that agency

6 that has primary responsibility for working with pri7 vate and voluntary organizations.

8 ‘‘(2) DISBURSEMENTS THROUGH THE FUND.—

9 All funds made available to carry out this part that

10 are used to promote microenterprise development

11 shall be disbursed through the Fund.

12 ‘‘(b) ACTIVITIES TO BE SUPPORTED.—The Fund

13 shall be used to support—

14 ‘‘(1) the institutional development of the orga15 nizations described in subsection (c);

16 ‘‘(2) the provision of microenterprise credit

17 through the organizations described in subsection

18 (c); and

19 ‘‘(3) research on microenterprise development

20 and evaluation of microenterprise activities funded

21 under this section.

22 ‘‘(c) INTERMEDIARY ORGANIZATIONS.—Funds dis23 bursed through the Fund shall be primarily channeled

24 through—
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1 ‘‘(1) United States and indigenous private and

2 voluntary organizations,

3 ‘‘(2) United States and indigenous credit union

4 organizations, and

5 ‘‘(3) other indigenous governmental and non6 governmental organizations,

7 that have demonstrated a capacity to develop sustainable

8 microenterprise service institutions.

9 ‘‘(d) ALLOCATION OF FUNDS.—

10 ‘‘(1) MICROENTERPRISE CREDIT.—(A) Of

11 amounts disbursed through the Fund each fiscal

12 year pursuant to subsection (b)(2), at least 50 per13 cent shall be used for poverty lending. As used in

14 this paragraph, the term ‘poverty lending’ means a

15 loan of $300 or less or, in the case of an initial loan,

16 of $150 or less.

17 ‘‘(B) The administrator of the agency primarily

18 responsible for administering this part shall seek to

19 ensure that not less than 60 percent of the borrow20 ers of funds disbursed through the Fund pursuant

21 to subsection (b)(2) are women.

22 ‘‘(2) RESEARCH AND EVALUATION.—Not more

23 than 5 percent of funds disbursed through the Fund

24 each fiscal year may be used for research and eval25 uation activities under subsection (b)(3).’’.
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1 SEC. 507. REPORT ON AID’S IMPLEMENTATION OF AGENDA

2 21 PRINCIPLES.

3 Not later than 2 years after the date of enactment

4 of this Act, the administrator of the agency primarily re5 sponsible for administering part I of the Foreign Assist6 ance Act of 1961 shall submit to the Congress a report

7 on the incorporation of the Agenda 21 principles of the

8 United Nations Conference on Environment and Develop9 ment into the foreign assistance activities administered by

10 that agency.

11 SEC. 508. AUTHORITY TO PROVIDE RECONSTRUCTION AS12 SISTANCE UNDER INTERNATIONAL DISASTER

13 ASSISTANCE.

14 Section 491(b) of the Foreign Assistance Act of 1961

15 is amended by striking ‘‘disaster relief and rehabilitation’’

16 and inserting ‘‘disaster relief, rehabilitation, and recon17 struction’’.

18 SEC. 509. DEOBLIGATION OF CERTAIN UNEXPENDED ECO19 NOMIC ASSISTANCE FUNDS.

20 Chapter 3 of part III of the Foreign Assistance Act

21 of 1961 is amended by adding at the end the following:

22 ‘‘SEC. 671. DEOBLIGATION OF CERTAIN UNEXPENDED ECO23 NOMIC ASSISTANCE FUNDS.

24 ‘‘(a) REQUIREMENT TO DEOBLIGATE.—

25 ‘‘(1) ANNUAL DEOBLIGATIONS.—Except as pro26 vided in subsection (b), at the beginning of each fis-
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1 cal year the President shall deobligate and return to

2 the Treasury any funds described in paragraph (2)

3 that, as of the end of the preceding fiscal year, have

4 been obligated for a period of more than 4 years but

5 have not been expended.

6 ‘‘(2) FUNDS SUBJECT TO REQUIREMENTS.—

7 Paragraph (1) applies with respect to funds made

8 available to carry out chapter 1 of part I (relating

9 to development assistance), chapter 4 of part I (re10 lating to the Multilateral Assistance Initiative for

11 the Philippines), chapter 10 of part I (relating to

12 the Development Fund for Africa), chapter 11 of

13 part I (relating to assistance for the independent

14 states of the former Soviet Union), or chapter 4 of

15 part II (relating to the economic support fund) or to

16 carry out the Support for East European Democracy

17 (SEED) Act of 1989.

18 ‘‘(b) EXCEPTIONS.—The President, on a case-by-case

19 basis, may waive the requirement of subsection (a) if the

20 President determines, and reports to the appropriate con21 gressional committees, that—

22 ‘‘(1) the funds are being used for a construction

23 or long term participant training project that re24 quires more than 4 years to complete; or
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1 ‘‘(2) the funds have not been expended because

2 of unforeseen circumstances, and those cir3 cumstances could not have been reasonably foreseen.

4 ‘‘(c) IG COMMENTS ON WAIVERS.—As soon as pos5 sible after submission of a report pursuant to subsection

6 (b), the Inspector General for the agency primarily respon7 sible for administering part I of this Act shall submit to

8 the appropriate congressional committees such comments

9 as the Inspector General considers appropriate with re10 gard to the determination described in that report.

11 ‘‘(d) APPROPRIATE CONGRESSIONAL COMMITTEES.—

12 As used in this section, the term ‘appropriate congres13 sional committees’ means the Committee on Foreign Af14 fairs and the Committee on Appropriations of the House

15 of Representatives and the Committee on Foreign Rela16 tions and the Committee on Appropriations of the

17 Senate.’’.

18 TITLE VI—BOSNIA-HERCEGOVINA

19 SEC. 601. SHORT TITLE.

20 This title may be cited as the ‘‘Bosnia-Hercegovina

21 Self-Defense Act of 1993’’.

22 SEC. 602. FINDINGS.

23 The Congress makes the following findings:

24 (1) On July 10, 1991, the United States adopt25 ed a policy suspending all licenses and other approv-
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1 als to export or otherwise transfer defense articles

2 and defense services to Yugoslavia.

3 (2) On September 25, 1991, the United Na4 tions Security Council adopted Resolution 713,

5 which imposed a mandatory international embargo

6 on all deliveries of weapons and military equipment

7 to Yugoslavia.

8 (3) The United States considered the policy

9 adopted July 10, 1991, to comply fully with Resolu10 tion 713 and therefore took no additional action in

11 response to that resolution.

12 (4) On January 8, 1992, the United Nations

13 Security Council adopted Resolution 727, which de14 cided that the mandatory arms embargo imposed by

15 Resolution 713 should apply to any independent

16 states that might thereafter emerge on the territory

17 of Yugoslavia.

18 (5) On February 29 and March 1, 1992, the

19 people of Bosnia-Hercegovina voted in a referendum

20 to declare independence from Yugoslavia.

21 (6) On April 7, 1992, the United States recog22 nized the Government of Bosnia-Hercegovina.

23 (7) On May 22, 1992, the Government of

24 Bosnia-Hercegovina was admitted to full member25 ship in the United Nations.
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1 (8) Consistent with Resolution 727, the United

2 States has continued to apply the policy adopted

3 July 10, 1991, to independent states that have

4 emerged on the territory of the former Yugoslavia,

5 including Bosnia-Hercegovina.

6 (9) Subsequent to the adoption of Resolution

7 727 and Bosnia-Hercegovina’s independence referen8 dum, the seige of Sarajevo began and fighting

9 spread to other areas of Bosnia-Hercegovina.

10 (10) The Government of Serbia intervened di11 rectly in the fighting by providing significant mili12 tary, financial, and political support and direction to

13 Serbian-allied irregular forces in Bosnia14 Hercegovina.

15 (11) In statements dated May 1 and May 12,

16 1992, the Conference on Security and Cooperation

17 in Europe declared that the Government of Serbia

18 and the Serbian-controlled Yugoslav National Army

19 were committing aggression against the Government

20 of Bosnia-Hercegovina and assigned to them prime

21 responsibility for the escalation of bloodshed and de22 struction.

23 (12) On May 30, 1992, the United Nations Se24 curity Council adopted Resolution 757, which con25 demned the Government of Serbia for its continued
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1 failure to respect the territorial integrity of Bosnia2 Hercegovina.

3 (13) Serbian-allied irregular forces have, over

4 the last year, occupied approximately 70 percent of

5 the territory of Bosnia-Hercegovina, committed

6 gross violations of human rights in the areas they

7 have occupied, and established a secessionist govern8 ment committed to eventual unification with Serbia.

9 (14) The military and other support and direc10 tion provided to Serbian-allied irregular forces in

11 Bosnia-Hercegovina constitutes an armed attack on

12 the Government of Bosnia-Hercegovina by the Gov13 ernment of Serbia within the meaning of Article 51

14 of the United Nations Charter.

15 (15) Under Article 51, the Government of

16 Bosnia-Hercegovina, as a member of the United Na17 tions, has an inherent right of individual or collective

18 self-defense against the armed attack from the Gov19 ernment of Serbia until the United Nations Security

20 Council has taken measures necessary to maintain

21 international peace and security.

22 (16) The measures taken by the United Nations

23 Security Council in response to the armed attack on

24 Bosnia-Hercegovina have not been adequate to

25 maintain international peace and security.
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1 (17) Bosnia-Hercegovina has been unable suc2 cessfully to resist the armed attack from Serbia be3 cause it lacks the means to counter heavy weaponry

4 that Serbia obtained from the Yugoslav National

5 Army upon the dissolution of Yugoslavia, and be6 cause the mandatory international arms embargo

7 has prevented Bosnia-Hercegovina from obtaining

8 from other countries the means to counter such

9 heavy weaponry.

10 (18) On December 18, 1992, with the affirma11 tive vote of the United States, the United Nations

12 General Assembly adopted Resolution 47/121, which

13 urged the United Nations Security Council to ex14 empt Bosnia-Hercegovina from the mandatory arms

15 embargo imposed by Resolution 713.

16 (19) In the absence of adequate measures to

17 maintain international peace and security, continued

18 application to the Government of Bosnia19 Hercegovina of the mandatory international arms

20 embargo imposed by the United Nations Security

21 Council prior to the armed attack on Bosnia22 Hercegovina undermines that government’s right of

23 individual or collective self-defense and therefore

24 contravenes Article 51 of the United Nations Char25 ter.
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1 (20) Bosnia-Hercegovina’s right of self-defense

2 under Article 51 of the United Nations Charter in3 cludes the right to ask for military assistance from

4 other countries and to receive such assistance if of5 fered.

6 SEC. 603. UNITED STATES ARMS EMBARGO OF THE GOV7 ERNMENT OF BOSNIA-HERCEGOVINA.

8 (a) TERMINATION.—The President may terminate

9 the United States arms embargo of the Government of

10 Bosnia-Hercegovina upon receipt from that government of

11 a request for assistance in exercising its right of self-de12 fense under Article 51 of the United Nations Charter.

13 (b) DEFINITION.—As used in this section, the term

14 ‘‘United States arms embargo of the Government of

15 Bosnia-Hercegovina’’ means the application to the Gov16 ernment of Bosnia-Hercegovina of—

17 (1) the policy adopted July 10, 1991, and pub18 lished in the Federal Register of July 19, 1991 (58

19 Fed. Reg. 33322) under the heading ‘‘Suspension of

20 Munitions Export Licenses to Yugoslavia’’; and

21 (2) any similar policy being applied by the

22 United States Government, as of the date of receipt

23 of the request described in subsection (a), pursuant

24 to which approval is routinely denied for transfers of
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1 defense articles and defense services to the former

2 Yugoslavia.

3 SEC. 604. UNITED STATES MILITARY ASSISTANCE FOR

4 BOSNIA-HERCEGOVINA.

5 (a) POLICY.—The President should provide appro6 priate military assistance to the Government of Bosnia7 Hercegovina upon receipt from that government of a re8 quest for assistance in exercising its right of self-defense

9 under Article 51 of the United Nations Charter.

10 (b) AUTHORIZATION OF MILITARY ASSISTANCE.—

11 (1) DRAWDOWN AUTHORITY.—If the Govern12 ment of Bosnia-Hercegovina requests United States

13 assistance in exercising its right of self-defense

14 under Article 51 of the United Nations Charter, the

15 President is authorized to direct the drawdown of

16 defense articles from the stocks of the Department

17 of Defense, defense services of the Department of

18 Defense, and military education and training in

19 order to provide assistance to the Government of

20 Bosnia-Hercegovina. Such assistance shall be pro21 vided on such terms and conditions as the President

22 may determine.

23 (2) LIMITATION ON VALUE OF TRANSFERS.—

24 The aggregate value (as defined in section 644(m)

25 of the Foreign Assistance Act of 1961) of defense
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1 articles, defense services, and military education and

2 training provided under this subsection may not ex3 ceed $200,000,000.

4 (3) EXPIRATION OF AUTHORIZATION.—The au5 thority provided to the President in paragraph (1)

6 expires at the end of fiscal year 1994.

7 (4) LIMITATION ON ACTIVITIES.—Members of

8 the United States Armed Forces who perform de9 fense services or provide military education and

10 training outside the United States under this sub11 section may not perform any duties of a combatant

12 nature, including any duties related to training and

13 advising that may engage them in combat activities.

14 (5) REPORTS TO CONGRESS.—Within 60 days

15 after any exercise of the authority of paragraph (1)

16 and every 60 days thereafter, the President shall re17 port in writing to the Speaker of the House of Rep18 resentatives and the President pro tempore of the

19 Senate concerning the defense articles, defense serv20 ices, and military education and training being pro21 vided and the use made of such articles, services,

22 and education and training.

23 (6) REIMBURSEMENT.—Defense articles, de24 fense services, and military education and training

25 provided under this subsection shall be made avail-
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1 able without reimbursement to the Department of

2 Defense.

3 SEC. 605. AUTHORITY OF THE SECRETARY OF DEFENSE.

4 (a) IN GENERAL.—The Secretary of Defense shall

5 determine the manner in which defense articles from the

6 stocks of the Department of Defense and defense services

7 and military education and training are drawn down from

8 the Department of Defense under this title to provide as9 sistance to the Government of Bosnia-Hercegovina. In

10 making this determination, the Secretary of Defense shall,

11 at a minimum, take into account the need to preserve the

12 readiness of the armed forces of the United States.

13 (b) FUNDING THROUGH REGULAR DEFENSE APPRO14 PRIATIONS.—

15 (1) REPLENISHMENT OF DEFENSE ARTICLES

16 AND RESOURCES.—Articles from defense stocks pro17 vided to the Government of Bosnia-Hercegovina

18 under this title, and resources expended during the

19 course of providing defense services and military

20 education and training to such Government under

21 this title, should be replenished.

22 (2) FUNDING.—Any funds necessary to accom23 plish the replenishment described in paragraph (1)

24 should be authorized and appropriated in defense

25 authorization and appropriations Acts.
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