103D CONGRESS

1ST SESSION H. R. 2404

AN ACT

To authorize appropriations for foreign assistance

programs, and for other purposes.
103D CONGRESS

1ST SESSION H. R. 2404

AN ACT

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.
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TITLE I—REFORM OF FOREIGN ASSISTANCE PROGRAMS

Sec. 101. Need for foreign assistance reform.

Sec. 102. Evaluation and accountability.

Sec. 103. Economic assistance reform.

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.

Sec. 319. Termination of IMET program for India.

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.
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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.

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

Sec. 510. Procurement.

Sec. 511. Violations of terms of assistance.

Sec. 512. Foreign aid reporting requirement.

Sec. 513. Disadvantaged enterprises.

Sec. 514. Prohibition on security assistance to countries that consistently oppose the United States position in the United Nations General

Assembly.

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.

TITLE VII—MISCELLANEOUS PROVISIONS

Sec. 701. Deployment of U.N. troops to Kosovo.

Sec. 702. Increase in CSCE observer missions in Kosovo.

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.
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1 (b) COMPREHENSIVE REFORM PLAN.—To facilitate

2 this reform process, the President shall submit to the Con3 gress, within 60 days after the date of enactment of this

4 Act, a plan for comprehensive reform of United States for5 eign assistance programs and of the agency primarily re6 sponsible for administering part I of the Foreign Assist7 ance Act of 1961.

8 SEC. 102. EVALUATION AND ACCOUNTABILITY.

9 Section 125 of the Foreign Assistance Act of 1961

10 is amended to read as follows:

11 ‘‘SEC. 125. EVALUATION AND ACCOUNTABILITY.

12 ‘‘(a) NEED FOR EVALUATION.—In order to effec13 tively and responsibly manage the resources with which

14 it is provided, the agency primarily responsible for admin15 istering this part must have a capacity to evaluate objec16 tively the extent of its progress in achieving development

17 results and to derive lessons from its development experi18 ence.

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

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

21 performance, monitoring, and evaluation capacity within

22 the agency primarily responsible for administering this

23 part that will do the following:

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

25 means, the use of program performance, monitoring,
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1 and evaluation as a management tool, by both the

2 agency and its counterparts in countries receiving

3 assistance, in the planning, designing, and imple4 mentation of foreign assistance projects and pro5 grams.

6 ‘‘(2) Develop a program performance informa7 tion system to afford agency managers at all levels

8 a means for monitoring and assessing achievement

9 of impact and interim performance of the agency’s

10 major programs in support of the strategic manage11 ment of economic assistance.

12 ‘‘(3) Prepare and disseminate objective and

13 periodic reports on the progress of the agency in

14 meeting development objectives and on lessons

15 learned from its development programs.

16 ‘‘(4) Strengthen the capacity to utilize the find17 ings of program performance, measurement, and

18 evaluation in decisions of the agency about program

19 direction and resource allocation.

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

21 the agency so as to ensure appropriate

22 complementarity of efforts, recognizing that—

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

24 to direct a system of performance measurement

25 and independent evaluations of its programs
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1 and policies, as well as the operational and

2 management systems that affect the develop3 ment impact of those programs and policies;

4 and

5 ‘‘(B) it is the responsibility of the Inspec6 tor General to conduct regular and comprehen7 sive assessments and audits of financial man8 agement and administrative systems, including

9 the adequacy of the systems for monitoring and

10 evaluating agency projects and programs.

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

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

13 the congressional presentation materials of the agency pri14 marily responsible for administering this part. This report

15 shall include the following:

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

17 achievement of sustainable development objectives,

18 based on the findings of program performance, mon19 itoring, and evaluation studies conducted by the

20 agency and on such other empirical analyses as may

21 be appropriate.

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

23 of the impact on economic development in each such

24 country during the preceding 3 to 5 fiscal years of

25 United States economic assistance programs, with a
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1 discussion of the United States interests that were

2 served by the assistance. Each country receiving eco3 nomic assistance under this part or under the Sup4 port for East European Democracy (SEED) Act of

5 1989 shall be included in such an analysis at least

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

7 shall—

8 ‘‘(A) describe the specific objectives the

9 United States sought to achieve in providing

10 economic assistance, and specify the extent to

11 which those objectives were or were not

12 achieved;

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

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

15 favorable and unfavorable) within each sector

16 and, if relevant, identify any economic policy re17 forms conducive to sustainable economic growth

18 that were promoted by the assistance and the

19 progress being made by the country in adopting

20 economic policies that foster and enhance the

21 freedom and opportunity of individuals to par22 ticipate in economic growth in the country;

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

24 States economic assistance, describe the amount

25 and nature of economic assistance provided by
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1 other major donors during the preceding 3 to 5

2 fiscal years, set forth by the development sector

3 to the extent possible; and

4 ‘‘(D) contain statistical and other informa5 tion necessary to evaluate the impact and effec6 tiveness of United States economic assistance

7 on development in the country.’’.

8 SEC. 103. ECONOMIC ASSISTANCE REFORM.

9 (a) BASIC OBJECTIVES.—Section 102 of the Foreign

10 Assistance Act of 1961 is amended to read as follows:

11 ‘‘SEC. 102. BASIC OBJECTIVES OF ECONOMIC ASSISTANCE

12 PROGRAMS AND UNITED STATES DEVELOP13 MENT COOPERATION POLICY.

14 ‘‘(a) FOUR BASIC OBJECTIVES.—The primary pur15 pose of United States economic assistance is the pro16 motion of broad based, sustainable, participatory develop17 ment, with particular focus on the poor. In pursuit of that

18 purpose, economic assistance programs to the extent speci19 fied in this Act, and United States economic cooperation

20 policy generally, shall have the following four basic objec21 tives, which are interrelated and mutually reinforcing:

22 ‘‘(1) SUSTAINABLE ECONOMIC GROWTH.—Pro23 motion of broad based economic growth.

24 ‘‘(2) SUSTAINABLE RESOURCE MANAGEMENT.—

25 Improvement of resource management designed to
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1 bring about environmentally and economically sus2 tainable patterns of development.

3 ‘‘(3) POVERTY ALLEVIATION.—Alleviation of

4 the worst manifestations of poverty through the de5 velopment of human resource capacity.

6 ‘‘(4) DEMOCRACY.—Promotion of democracy,

7 respect for human rights, and social and economic

8 pluralism.

9 ‘‘(b) SUSTAINABLE ECONOMIC GROWTH.—

10 ‘‘(1) RATIONALE.—Broad based, sustainable

11 economic growth is in the interest of the United

12 States because it permits countries to progress to13 ward economic self-reliance, to improve the living

14 standards of their citizens, and to increase inter15 national markets for trade and investment. Market16 oriented economic growth establishes the basis for

17 sustainable development and reinforces democratic

18 ideals and practices. Successful long-term develop19 ment cannot occur without broad based, sustainable

20 economic growth that enables the poor to increase

21 their incomes and access to productive resources and

22 services so that they can satisfy their basic needs

23 and lead lives of decency, dignity, and hope.

24 ‘‘(2) ELABORATION ON OBJECTIVE.—(A) Imple25 mentation of the objective of promoting broad based
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1 economic growth should recognize that economic, so2 cial, political, and environmental conditions vary

3 among countries. While taking account of such dif4 ferences, the economic assistance programs carried

5 out in furtherance of the four basic objectives set

6 forth in this section shall emphasize the following

7 principles:

8 ‘‘(i) Security of economic rights for all citi9 zens without regard to sex, race, religion, lan10 guage, or social status, including the right to

11 own property, the right to fair return from

12 one’s labor, and the right to engage in produc13 tive use of available assets.

14 ‘‘(ii) Economic policies based on free mar15 ket principles as a means for establishing prices

16 and for allocating goods and services.

17 ‘‘(iii) Economic reforms that benefit or are

18 sensitive to and minimize adverse impact on the

19 poor.

20 ‘‘(iv) Market base reforms—deregulation,

21 privatization, labor market reform, reduction in

22 barriers to the free flow of trade and invest23 ment—which increase the opportunity for all,

24 especially the poor, to participate in economic

25 activity.
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1 ‘‘(v) Government policies protecting eco2 nomic rights, fair and open markets, and the

3 fulfillment of basic human needs.

4 ‘‘(vi) Adherence by governments to inter5 national economic agreements, particularly

6 those relating to free and fair trade practices

7 and to respect for worker rights.

8 ‘‘(B) A primary test of the effectiveness of eco9 nomic assistance programs designed to promote

10 broad based economic growth is the extent to which

11 the poor and disenfranchised can participate in and

12 benefit from these programs and are thereby

13 brought into the development process.

14 ‘‘(c) SUSTAINABLE RESOURCE MANAGEMENT.—

15 ‘‘(1) RATIONALE.—The economic and social

16 well-being and the security of the United States and

17 other countries are affected by how the world’s envi18 ronment and physical resource base are managed.

19 Consumption patterns, systems of industrial and ag20 ricultural production, demographic trends, and the

21 manner of use of natural resources all impact on the

22 opportunities for long-term development and growth

23 and survival for all countries. Both developed and

24 developing countries share responsibility for the ra25 tional and sustainable management of natural re-
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1 sources. Responsible management of physical re2 sources is necessary to insure the availability of re3 sources for future generations and to assure that the

4 burdens of improved resource management do not

5 fall disproportionately on the poor.

6 ‘‘(2) ELABORATION OF OBJECTIVE.—(A) Sus7 tainable development is development that meets the

8 needs of the present without compromising the abil9 ity of future generations to meet their own needs.

10 Economic assistance programs authorized by this

11 title should assist countries to adopt policies and

12 programs that promote ecologically sound patterns

13 of growth. Improved resource management tailored

14 to the conditions and capabilities of the particular

15 developing countries should be an integral part of all

16 planning, programming, and reporting activities with

17 respect to economic assistance.

18 ‘‘(B) Sustainable resource management should

19 be promoted through research and through the es20 tablishment and implementation of public policies

21 and programs that provide incentives for better long22 term management of resources and private and pub23 lic investment toward resource-conserving tech24 nologies of production in energy, agricultural, and
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1 industrial production. To achieve this objective will

2 entail, among other things—

3 ‘‘(i) more efficient and resource-conserving

4 systems of sustainable agricultural production,

5 with special emphasis on rain-fed agriculture,

6 maintenance of soil structure and fertility, and

7 minimization of soil erosion and soil and water

8 contamination;

9 ‘‘(ii) adoption of appropriate use of fer10 tilizer and pesticides;

11 ‘‘(iii) greater attention to forestry manage12 ment for sustainable yields, agroforestry, refor13 estation, and watershed conservation, including

14 better resource monitoring and assessment

15 systems;

16 ‘‘(iv) improved water use management, in17 cluding watershed protection, sustainable and

18 efficient irrigation projects, and efforts to re19 duce costs and improve delivery of potable

20 water and sanitation systems for both urban

21 and rural areas;

22 ‘‘(v) more systematic collection, preserva23 tion, and sharing of original and evolved plant

24 and animal genetic material, including preserva25 tion of ecosystems and natural habitats;
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1 ‘‘(vi) attention to more efficient manage2 ment of existing energy systems, to the pro3 motion of increased use of least-cost energy re4 source planning procedures, and to the develop5 ment of economically viable and more efficient

6 systems of energy production and consumption

7 that seek to maximize resource conservation;

8 ‘‘(vii) attention to resource conserving sys9 tems of urban development and industrializa10 tion that make efficient use of energy and natu11 ral resources, minimize the adverse effects of

12 air and water pollution, facilitate safe waste

13 disposal, including toxic wastes, and provide for

14 improved environmental health and safety of

15 the urban and surrounding rural populations;

16 ‘‘(viii) efforts to analyze and to reduce

17 man-made contributions to changes in the glob18 al climate, including factors that may be con19 tributing to global warming in the Earth’s at20 mosphere; and

21 ‘‘(ix) greater attention to the relationships

22 among demographic pressures, poverty, and en23 vironmental degradation.

24 ‘‘(C) Growth that is not environmentally sus25 tainable cannot be economically sustainable in the
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1 long run. Improved resource management is a criti2 cal element of a balanced pattern of development.

3 ‘‘(d) POVERTY ALLEVIATION.—

4 ‘‘(1) RATIONALE.—It is in the interest of the

5 United States to assist developing countries to

6 achieve patterns of growth and development that will

7 measurably and sustainably alleviate the worst mani8 festations of poverty in rural and urban areas and

9 allow all people, especially those with low incomes, to

10 lead economically and socially productive lives. As a

11 people endowed with a spirit of humanitarian gener12 osity, United States citizens have long demonstrated

13 a moral imperative to help those in need. Further,

14 peace and stability in the world cannot be achieved

15 without economic development that also alleviates

16 the worst manifestations of poverty.

17 ‘‘(2) ELABORATION OF OBJECTIVE.—(A) Broad

18 based economic growth is necessary for the allevi19 ation of the worst manifestations of poverty. Con20 versely, neither growth nor the alleviation of poverty

21 can be sustained unless all people, especially the

22 poor, have the basic assets and capabilities that fos23 ter the exercise of choice and participation in the

24 economic, social, and political life of the country.

25 Women, female children, and children of poor people
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1 have been especially disadvantaged in their access to

2 these assets. Governments, together with nongovern3 mental organizations and international and multilat4 eral organizations, should give special attention to

5 alleviating the worst manifestations of poverty

6 among these groups. Long-term poverty alleviation

7 depends on patterns of broad based economic growth

8 and the productivity generated by investments in the

9 expansion of human well-being, capacity, and choice.

10 ‘‘(B) To achieve the objective of alleviating the

11 worst manifestations of poverty will entail, among

12 other things—

13 ‘‘(i) the expansion of education to all seg14 ments of the society, with particular attention

15 to universal access to basic education, to sus16 tainable improvement in the quality and diver17 sity of educational opportunity, and to female

18 education at all age levels;

19 ‘‘(ii) improvement in coverage, quality, and

20 sustainability of health services, with special

21 emphasis on universal access to primary health

22 care, epidemiological detection and prevention

23 programs, and sustainable systems of health

24 care for mothers and children;
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1 ‘‘(iii) a consistent program of support for

2 systematic expansion of voluntary family plan3 ning services, with special emphasis on the role

4 of the private voluntary and commercial sectors

5 as providers of such services and on the devel6 opment of more effective, acceptable family

7 planning technologies appropriate to the condi8 tions of developing countries;

9 ‘‘(iv) support for activities that enhance se10 cure access of all to adequate food and nutri11 tion derived from sustainable agricultural pro12 duction, including the effectiveness and develop13 ment contribution of food assistance made

14 available under the Agricultural Trade Develop15 ment and Assistance Act of 1954 and other

16 food assistance programs; and

17 ‘‘(v) support for activities that enhance

18 universal access to safe drinking water, basic

19 sanitation, and basic shelter necessary for

20 health.

21 ‘‘(e) DEMOCRACY.—

22 ‘‘(1) RATIONALE.—The promotion of democracy

23 throughout the world is in the basic interest of the

24 United States. Democratic development, political

25 pluralism, and respect for internationally recognized
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1 human rights are intrinsically linked to economic

2 and social progress. Democracy can only be sus3 tained in a society in which the legitimacy of the

4 government rests firmly on the expressed consent of

5 the governed; the rights of all citizens, including mi6 norities, are respected and protected; and there is ef7 fective civilian control over the military and security

8 forces. It is in the interest of the United States and

9 in keeping with our democratic traditions to support

10 democratic aspirations and values, foster the spread

11 of democratic institutions, and encourage universal

12 respect for civil and political liberties.

13 ‘‘(2) ELABORATION ON OBJECTIVE.—(A) Fur14 therance of the basic objective of democracy requires

15 that the United States promote—

16 ‘‘(i) the ability of all citizens of a country

17 to organize and associate freely and independ18 ently of the government;

19 ‘‘(ii) the ability of all citizens to freely

20 choose their government, to hold that govern21 ment accountable, and to participate in political

22 life;

23 ‘‘(iii) increased respect for internationally

24 recognized human rights and the rule of law;
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1 ‘‘(iv) respect for the diversity among the

2 citizens of a country; and

3 ‘‘(v) acceptance of and respect for civilian

4 authority by all elements of society.

5 ‘‘(B) An essential ingredient of development is

6 the growth of indigenous nongovernmental organiza7 tions that are committed to democratic values and

8 active in the promotion of democracy. United States

9 efforts to foster democratic pluralism and build

10 democratic institutions are most likely to create en11 during bonds of democratic cooperation when United

12 States nongovernmental organizations are involved

13 in strengthening the capacity of nongovernmental or14 ganizations in other countries.

15 ‘‘(C) Democracy requires honest and open

16 participatory government. United States assistance

17 should help governments to establish processes of ac18 countability and transparency to eliminate corrup19 tion and abuses of power and assist nongovern20 mental organizations to develop the capability to

21 monitor the government’s performance.

22 ‘‘(D) With regard to economic assistance under

23 this Act or the Support for East European Democ24 racy (SEED) Act of 1989 for countries that are in

25 transition from communism to democracy, it shall be
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1 the policy of the United States, to the extent fea2 sible, to provide assistance directly to democratically

3 elected governments of states whose incorporation

4 into the Union of Soviet Socialist Republics has

5 never been recognized by the United States: Pro6 vided, That economic assistance to Yugoslavia other7 wise authorized by law shall not be prohibited as a

8 consequence of this provision. As used in this sub9 paragraph, the term ‘democratically elected’ means

10 elected through open, free, and fair elections. Noth11 ing in this paragraph shall be construed to preclude

12 assistance to agencies of such federal governments

13 that promote democratic reforms, human rights, the

14 rule of law, and/or market oriented reforms, pro15 vided that funds are not provided directly to any

16 such agency.

17 ‘‘(f) EFFECTIVE USES OF ASSISTANCE.—

18 ‘‘(1) BENEFICIARY COUNTRIES.—Assistance

19 furnished under this title should be concentrated in

20 countries that will make the most effective use of

21 that assistance in promoting the four basic objec22 tives set forth in subsection (a).

23 ‘‘(2) ASSISTANCE WITHIN COUNTRIES.—Activi24 ties should be undertaken in regions of recipient

25 countries that offer potential for successful develop-
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1 ment and should not be undertaken if the relevant

2 sector or national economic policies of the country

3 are clearly unfavorable to the sustainability or

4 broadest possible impact of the assisted program or

5 project.

6 ‘‘(3) TYPES OF ACTIVITIES.—Assistance should

7 focus on those types of activities that the United

8 States can provide most effectively.’’.

9 (b) REPEAL OF DEVELOPMENT ASSISTANCE AU10 THORITIES.—Effective October 1, 1995, sections 103

11 through 107 of the Foreign Assistance Act of 1961 are

12 repealed.

13 TITLE II—AUTHORIZATIONS FOR

14 FOREIGN ASSISTANCE PROGRAMS

15 SEC. 1201. AUTHORIZATIONS OF APPROPRIATIONS FOR FIS16 CAL YEAR 1994.

17 (a) ECONOMIC ASSISTANCE.—There are authorized

18 to be appropriated for fiscal year 1994 the following

19 amounts for the following purposes:

20 (1) DEVELOPMENT ASSISTANCE FUND.—

21 $850,000,000 to carry out sections 103 through 106

22 of the Foreign Assistance Act of 1961.

23 (2) POPULATION, DEVELOPMENT ASSIST24 ANCE.—$395,000,000 to carry out section 104(b) of

25 the Foreign Assistance Act of 1961.
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1 (3) DEVELOPMENT FUND FOR AFRICA.—

2 $900,000,000 to carry out chapter 10 of part I of

3 the Foreign Assistance Act of 1961.

4 (4) INTERNATIONAL DISASTER ASSISTANCE.—

5 $148,965,000 to carry out section 491 of the For6 eign Assistance Act of 1961.

7 (5) AMERICAN SCHOOLS AND HOSPITALS.—

8 $35,000,000 to carry out section 214 of the Foreign

9 Assistance Act of 1961.

10 (6) MULTILATERAL ASSISTANCE INITIATIVE

11 FOR THE PHILIPPINES.—$30,000,000 for assistance

12 for the Philippines under chapter 4 of part I of the

13 Foreign Assistance Act of 1961.

14 (7) ASSISTANCE FOR EASTERN EUROPE AND

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

16 assistance for Eastern Europe and the Baltic states

17 under the Foreign Assistance Act of 1961 and the

18 Support for East European Democracy (SEED) Act

19 of 1989.

20 (8) ASSISTANCE FOR THE INDEPENDENT

21 STATES OF THE FORMER SOVIET UNION.—

22 $903,820,000 to carry out chapter 11 of part I of

23 the Foreign Assistance Act of 1961 and to carry out

24 exchanges and training and similar programs under

25 section 807 of the Freedom for Russia and Emerg-
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1 ing Eurasian Democracies and Open Markets Sup2 port Act of 1992.

3 (9) INTER-AMERICAN FOUNDATION.—

4 $30,960,000 to carry out section 401 of the Foreign

5 Assistance Act of 1969.

6 (10) AFRICAN DEVELOPMENT FOUNDATION.—

7 $18,000,000 to carry out the African Development

8 Foundation Act.

9 (11) INTERNATIONAL FUND FOR IRELAND.—

10 $19,600,000 to carry out part I of the Foreign As11 sistance Act of 1961, which shall be available for the

12 United States contribution to the International

13 Fund for Ireland in accordance with the Anglo-Irish

14 Agreement Support Act of 1986. Amounts appro15 priated under this paragraph are authorized to re16 main available until expended.

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

18 be appropriated for fiscal year 1994 the following amounts

19 for the following purposes:

20 (1) FOREIGN MILITARY FINANCING PROGRAM

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

22 23 of the Arms Export Control Act. Funds made

23 available under this paragraph shall be nonrepayable

24 notwithstanding any requirement of that section.
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1 (2) FOREIGN MILITARY FINANCING PROGRAM

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

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

4 1990) of loans under section 23 of the Arms Export

5 Control Act.

6 (3) ECONOMIC SUPPORT FUND.—

7 $2,424,400,000 to carry out chapter 4 of part II of

8 the Foreign Assistance Act of 1961.

9 (4) INTERNATIONAL MILITARY EDUCATION AND

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

11 part II of the Foreign Assistance Act of 1961.

12 (5) ANTI-TERRORISM ASSISTANCE.—

13 $15,555,000 to carry out chapter 8 of part II of the

14 Foreign Assistance Act of 1961.

15 (6) NONPROLIFERATION AND DISARMAMENT

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

17 Freedom for Russia and Emerging Eurasian Democ18 racies and Open Markets Support Act of 1992.

19 (c) PEACE CORPS.—There are authorized to be ap20 propriated $219,745,000 for fiscal year 1994 to carry out

21 the Peace Corps Act.

22 (d) REDUCTION IN PREVIOUSLY ENACTED AUTHOR23 IZATION FOR INTERNATIONAL NARCOTICS CONTROL AS24 SISTANCE.—Section 482(a)(1) of the Foreign Assistance
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1 Act of 1961 is amended by striking ‘‘$171,500,000’’ and

2 inserting ‘‘$135,000,000’’.

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

4 that all otherwise applicable authorities, restrictions, and

5 other provisions of law apply with respect to the amounts

6 that are authorized to be appropriated by this section for

7 fiscal year 1994, those amounts shall be deemed to be au8 thorized to be appropriated by the provision of the Foreign

9 Assistance Act of 1961 or other Act that provided the cor10 responding authorization of appropriations for prior fiscal

11 years.

12 (f) REDUCTION IN AUTHORIZATIONS.—The amount

13 appropriated for fiscal year 1994 pursuant to the author14 izations of appropriation in this title may not exceed the

15 amount which is $360,000,000 less than the sum of the

16 specified authorization amounts for that fiscal year.

17 SEC. 202. CHILD SURVIVAL ACTIVITIES AND VITAMIN A DE18 FICIENCY PROGRAM AND RELATED ACTIVI19 TIES.

20 (a) CHILD SURVIVAL ACTIVITIES.—The Congress ex21 pects that not less than $275,000,000 of the funds made

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

23 Foreign Assistance Act of 1961 (relating to development

24 and other economic assistance) will be used for child sur25 vival activities.
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1 (b) VITAMIN A DEFICIENCY PROGRAM AND RELATED

2 ACTIVITIES.—The Congress expects that not less than

3 $25,000,000 of the funds made available for fiscal year

4 1994 to carry out sections 103 through 106 of the Foreign

5 Assistance Act of 1961 (relating to development assist6 ance) will be made available for the Vitamin A Deficiency

7 Program and activities relating to iodine deficiency and

8 other micro-nutrients.

9 SEC. 203. HOUSING GUARANTEE PROGRAM.

10 (a) AUTHORIZATIONS.—

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

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

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

14 of the Federal Credit Reform Act of 1990) of guar15 anteed loans under sections 221 and 222 of the For16 eign Assistance Act of 1961.

17 (2) PROGRAM CEILING.—Section 222(a) of that

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

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

20 (3) PROGRAM EXPIRATION DATE.—Section

21 222(a) of that Act is amended by striking ‘‘1992’’

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

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

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

25 fiscal year 1994 for administrative expenses to carry
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1 out guaranteed loan programs under sections 221

2 and 222 of that Act. Amounts appropriated under

3 this paragraph are authorized to remain available

4 until expended.

5 (B) Amounts appropriated under this para6 graph may be transferred to and merged with the

7 appropriations for ‘‘Operating Expenses of the

8 Agency for International Development’’.

9 (b) PREFERENTIAL TREATMENT TO PROJECTS IN

10 POORER COUNTRIES.—Section 222 of the Foreign Assist11 ance Act of 1961 is amended—

12 (1) by redesignating subsection (k) as sub13 section (e); and

14 (2) by inserting after subsection (c) the follow15 ing:

16 ‘‘(d) PREFERENTIAL CONSIDERATION TO PROJECTS

17 IN POORER COUNTRIES.—In issuing guarantees under

18 this section and in carrying out related activities, the

19 President shall give preferential consideration to projects

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

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

22 guarantees and related activities for projects in countries

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

24 1991 United States dollars.’’.

25 (c) FEE INCREASE.—
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1 (1) STUDY.—The administrator of the agency

2 primarily responsible for administering part I of the

3 Foreign Assistance Act of 1961—

4 (A) shall conduct a study to determine the

5 feasibility of increasing the fees charged pursu6 ant to section 223(a) of that Act for guarantees

7 issued under sections 221 and 222 of that Act

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

9 section 502(5) of the Federal Credit Reform

10 Act of 1990) of the guarantee program; and

11 (B) shall submit the results of this study

12 to the Committee on Foreign Affairs of the

13 House of Representatives and the Committee

14 on Foreign Relations of the Senate not later

15 than 6 months after the date of enactment of

16 this Act.

17 (2) POLICY.—The administrator should in18 crease the fees described in paragraph (1)(A) to the

19 extent determined to be feasible in the study con20 ducted pursuant to this subsection.

21 SEC. 204. OVERSEAS PRIVATE INVESTMENT CORPORATION.

22 (a) PROGRAM AUTHORIZATION OF FISCAL YEAR

23 1995.—Section 235(a) of the Foreign Assistance Act of

24 1961 is amended—
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1 (1) in paragraph (1) by striking

2 ‘‘$9,000,000,000’’ and inserting ‘‘$10,000,000,000’’;

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

4 ‘‘$2,500,000,000’’ and inserting ‘‘$3,500,000,000’’;

5 and

6 (3) in paragraph (2)(B)—

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

8 (i);

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

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

11 (C) by inserting after clause (ii) the follow12 ing:

13 ‘‘(iii) to transfer such sums as are nec14 essary from its noncredit account revolving

15 fund to pay for the subsidy cost of a program

16 level for the loan and loan guarantee program

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

18 $1,000,000,000 for fiscal year 1995.’’.

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

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

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

22 that Act is amended—

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

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

25 inserting ‘‘; and’’; and
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1 (3) by adding at the end the following:

2 ‘‘(3) $15,000,000 for fiscal year 1995.’’.

3 SEC. 205. SPECIAL DEBT REDUCTION AUTHORITY.

4 (a) AUTHORITY TO REDUCE DEBT.—Notwithstand5 ing any other provision of law (other than the Federal

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

7 amounts of principal and interest owed to the United

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

9 country as a result of—

10 (1) guarantees issued under sections 221 and

11 222 of the Foreign Assistance Act of 1961; or

12 (2) credits extended or guarantees issued under

13 the Arms Export Control Act.

14 (b) IMPLEMENTATION OF PARIS CLUB DEBT REDUC15 TION.—The authority provided by this section may be ex16 ercised only to implement the multilateral official debt re17 lief ad referendum agreements that are commonly referred

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

19 (c) APPROPRIATIONS REQUIREMENT.—The authority

20 provided by this section may be exercised only in such

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

22 appropriations Acts in accordance with the requirements

23 of the Federal Credit Reform Act of 1990.
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1 (d) ELIGIBLE COUNTRIES.—For purposes of this sec2 tion, the term ‘‘eligible country’’ means a country that the

3 President determines—

4 (1) has a heavy debt burden; and

5 (2) is eligible to borrow from the International

6 Development Association but not from the Inter7 national Bank for Reconstruction and Development

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

9 SEC. 206. SPECIAL DEFENSE ACQUISITION FUND.

10 (a) DECAPITALIZATION.—Notwithstanding section

11 51(b) of the Arms Export Control Act, collections de12 scribed in that section that are in excess of obligational

13 authority provided in foreign operations, export financing,

14 and related appropriations Acts for fiscal years prior to

15 fiscal year 1994 shall be deposited in the Treasury as mis16 cellaneous receipts.

17 (b) AVOIDANCE OF DUPLICATIVE PROVISIONS.—Sub18 section (a) shall not apply if the Foreign Operations, Ex19 port Financing, and Related Programs Appropriations

20 Act, 1994, contains an identical requirement.

21 TITLE III—REGIONAL PROVISIONS

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

23 The Congress expects that not less than

24 $100,000,000 of the funds made available for fiscal year

25 1994 to carry out section 491 of the Foreign Assistance
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1 Act of 1961 (relating to international disaster assistance)

2 will be used for disaster relief, rehabilitation, and recon3 struction assistance for sub-Saharan Africa.

4 SEC. 302. AFRICAN DEVELOPMENT FOUNDATION.

5 (a) CEILING ON ASSISTANCE FOR A PROJECT.—Sec6 tion 505(a)(2) of the African Development Foundation

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

8 exceptional circumstances, the board of directors of the

9 Foundation may waive such dollar limitation with respect

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

11 Congress annually.’’.

12 (b) AUTHORITY TO EMPLOY ALIENS.—Section

13 506(a) of that Act is amended—

14 (1) by redesignating paragraphs (8) through

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

16 and

17 (2) by inserting after paragraph (7) the follow18 ing:

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

20 Foundation to be necessary (but subject to the limi21 tation established by paragraph (7) on the number

22 of Foundation employees), may employ persons who

23 are not citizens of the United States notwithstand24 ing any provision of law that would otherwise pro25 hibit the use of appropriated funds to pay the com-
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1 pensation of officers or employees of the Government

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

3 (c) TRAVEL EXPENSES.—

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

5 that Act is amended by striking ‘‘actual and nec6 essary expenses not exceeding $100 per day, and for

7 transportation expenses,’’ and inserting ‘‘travel ex8 penses, including per diem in lieu of subsistence, in

9 accordance with section 5703 of title 5, United

10 States Code,’’.

11 (2) CONFORMING AMENDMENT.—Section

12 507(e)(3) of that Act is amended by striking ‘‘and

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

14 per diem in lieu of subsistence,’’.

15 (d) INTEREST ACCRUING TO GRANTEES.—

16 (1) AUTHORITY TO RETAIN.—The African De17 velopment Foundation Act is amended by adding at

18 the end the following:

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

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

21 made available to a grantee under this title are invested

22 pending disbursement, the resulting interest is not re23 quired to be deposited in the United States Treasury if

24 the grantee uses the resulting interest for the purpose for

25 which the grant was made.’’.
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1 (2) EFFECTIVE DATE.—The amendment made

2 by paragraph (1) applies to both interest earned be3 fore and interest earned after the date of enactment

4 of this Act.

5 SEC. 303. CONFLICT RESOLUTION INITIATIVE FOR AFRICA.

6 (a) IMPROVING OAU’S CONFLICT RESOLUTION CA7 PABILITIES.—

8 (1) DESCRIPTION OF ASSISTANCE.—The Presi9 dent is authorized to provide assistance to help es10 tablish a permanent conflict resolution capability

11 within the Organization of African Unity (referred

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

13 (A) Funds may be provided to the OAU

14 for use in supporting its conflict resolution

15 capability.

16 (B) Funds may be used for expenses of

17 sending individuals with expertise in conflict

18 resolution (who may include United States Gov19 ernment employees) from the United States to

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

21 years.

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

23 support the establishment and maintenance of

24 an African Conflict Resolution Research Center

25 that is linked to the OAU secretariat.
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1 (2) FUNDING.—Of the funds that are allocated

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

3 each of the fiscal years 1994 through 1998 should

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

5 funds otherwise available for such purpose.

6 (3) REQUIREMENT FOR APPROVAL OF CERTAIN

7 REFORMS.—Assistance may be provided pursuant to

8 this subsection only if the President determines that

9 the OAU has approved and is in the process of im10 plementing the reforms proposed by the Secretary

11 General of the OAU in February 1993 in the In12 terim Report of the Secretary General on the Mech13 anisms for Conflict Prevention, Resolution and

14 Management.

15 (b) IMPROVING CONFLICT RESOLUTION CAPABILI16 TIES OF MULTILATERAL SUBREGIONAL ORGANIZA17 TIONS.—

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

19 The President is authorized to provide assistance to

20 help establish permanent conflict resolution capabili21 ties within subregional organizations established by

22 countries in sub-Saharan Africa, as follows:

23 (A) Funds may be provided to such an or24 ganization for use in supporting its conflict res25 olution capability.
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1 (B) Funds may be used for the 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 such an organization for a period of

6 up to 2 years.

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

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

9 of the Foreign Assistance Act of 1961 (relating to

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

11 each of the fiscal years 1994 through 1998 may be

12 used to carry out paragraph (1).

13 (c) AFRICAN DEMOBILIZATION AND RETRAINING

14 PROGRAM.—

15 (1) IN GENERAL.—In order to facilitate reduc16 tions in the size of the armed forces of countries of

17 sub-Saharan Africa, the President is authorized to

18 provide assistance for—

19 (A) encampment and related activities as20 sociated with demobilization of such forces, and

21 (B) the retraining for civilian occupations

22 of military personnel who have been demobi23 lized.

24 (2) FUNDING.—(A) Of the funds that are allo25 cated for sub-Saharan Africa under chapter 4 of
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1 part II of the Foreign Assistance Act of 1961 (relat2 ing to the economic support fund) and under the

3 ‘‘Foreign Military Financing Program’’ account

4 under section 23 of the Arms Export Control Act,

5 $10,000,000 for fiscal year 1994 should be used for

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

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

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

9 of the Foreign Assistance Act of 1961 (relating to

10 the Development Fund for Africa) may be used for

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

12 (d) IMET CONFLICT RESOLUTION PROGRAM.—

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

14 is amended by adding at the end the following:

15 ‘‘SEC. 546. CONFLICT RESOLUTION PROGRAM FOR AFRICA.

16 ‘‘In addition to the other education and training ac17 tivities carried out under this chapter, the President is au18 thorized to establish a program to provide education and

19 training in conflict resolution for civilian and military per20 sonnel of countries in sub-Saharan Africa.’’.

21 SEC. 304. SADC PROJECTS.

22 (a) WAIVER OF BROOKE AMENDMENT.—Section

23 620(q) of the Foreign Assistance Act of 1961 and the cor24 responding section of the Foreign Operations, Export Fi25 nancing, and Related Programs Appropriations Act, 1994,
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•HR 2404 EH

1 shall not apply with respect to assistance provided for fis2 cal year 1994 under section 496(o) of the Foreign Assist3 ance Act of 1961 (relating to support for SADC projects).

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

5 Foreign Assistance Act of 1961 is amended—

6 (1) in the subsection heading by striking

7 ‘‘SADCC’’ and inserting ‘‘SADC’’; and

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

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

10 (SADC)’’.

11 SEC. 305. SOUTH AFRICA.

12 (a) REMOVAL OF CEILINGS ON GRANTS FOR HUMAN

13 RIGHTS PROJECTS.—Section 116 of Foreign Assistance

14 Act of 1961 is amended—

15 (1) by repealing subparagraphs (C) and (D) of

16 subsection (e)(2); and

17 (2) in subsection (f)—

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

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

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

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

22 respectively.

23 (b) EXCEPTION TO LIMITATION ON ASSISTANCE RE24 CIPIENTS.—
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1 (1) ASSISTANCE UNDER SECTION 116.—Section

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

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

4 to organizations financed or controlled by the

5 Government of South Africa’’; and

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

7 nongovernmental organization financed or con8 trolled by the Government of South Africa that

9 meets the criteria specified in this subpara10 graph may receive assistance under this para11 graph only if the President determines that (i)

12 the activities of that organization further the

13 purposes of the establishment of a non-racial

14 democratic state in South Africa, (ii) the provi15 sion of assistance to that organization will fur16 ther the objective of this paragraph to assist

17 disadvantaged South Africans, and (iii) the

18 Government of South Africa is continuing to

19 make progress toward dismantling apartheid

20 and establishing a nonracial democracy. Before

21 making such determinations, the President shall

22 consult with the appropriate congressional com23 mittees and with South African organizations

24 that are representative of the majority popu25 lation of South Africa and should seek a com-
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1 mitment from the Government of South Africa

2 that it will provide additional resources to meet

3 the needs of disadvantaged South Africans. As

4 used in the preceding sentence, the term ‘appro5 priate congressional committees’ means the

6 Committee on Foreign Affairs and the Commit7 tee on Appropriations of the House of Rep8 resentatives and the Committee on Foreign Re9 lations and the Committee on Appropriations of

10 the Senate.’’.

11 (2) ASSISTANCE UNDER SECTION 117.—Section

12 117 of that Act (as added by section 201(b) of the

13 Comprehensive Anti-Apartheid Act of 1986) is

14 amended by adding at the end the following: ‘‘In ad15 dition, a nongovernmental organization that meets

16 the criteria specified in the first 2 sentences of this

17 section but receives funds from the Government of

18 South Africa may receive assistance under this sec19 tion if the President determines that such organiza20 tion meets the requirements of the 5th sentence of

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

22 made in accordance with the 6th sentence of such

23 section.’’.
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1 SEC. 306. SUDAN.

2 (a) STATEMENT OF THE CONGRESS.—The Con3 gress—

4 (1) strongly condemns the Government of

5 Sudan for its severe human rights abuses and calls

6 upon that government to improve human rights con7 ditions throughout the country;

8 (2) deplores the internecine fighting among the

9 factions of the Sudanese People’s Liberation Army;

10 (3) urges the Government of Sudan and the

11 factions of the Sudanese People’s Liberation Army

12 to provide full access for and to cooperate with relief

13 organizations;

14 (4) encourages the Government of Sudan to lift

15 the press ban which was imposed after it took power

16 in June 1989; and

17 (5) calls on the Government of Sudan to estab18 lish a democratic system.

19 (b) RESTRICTIONS ON ASSISTANCE.—Except as pro20 vided in subsection (c), assistance may not be provided

21 for Sudan for fiscal year 1994—

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

23 the Foreign Assistance Act of 1961 (relating to de24 velopment assistance and the Development Fund for

25 Africa),
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1 (2) under chapter 4 of part II of that Act (re2 lating to the economic support fund),

3 (3) under chapter 5 of part II of that Act (re4 lating to international military education and train5 ing), or

6 (4) from the ‘‘Foreign Military Financing Pro7 gram’’ account under section 23 of the Arms Export

8 Control Act.

9 (c) WAIVER OF RESTRICTIONS.—

10 (1) AUTHORIZATION.—The President may

11 waive the prohibitions in subsection (b) if the Presi12 dent determines, and reports in accordance with

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

14 southern Sudan toward respecting human rights, re15 solving the conflict in that region, establishing a

16 democratically elected government, and establishing

17 a reformed and independent judiciary system.

18 (2) CONGRESSIONAL REVIEW OF DETERMINA19 TION.—A determination under paragraph (1) shall

20 not become effective until 15 days after it is re21 ported to the congressional committees specified in

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

23 1961 in accordance with the procedures applicable to

24 reprogramming notifications under that section.
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1 SEC. 307. ZAIRE.

2 (a) STATEMENT OF THE CONGRESS.—The Con3 gress—

4 (1) strongly condemns the disruptive measures

5 taken by President Mobutu in recent months, and

6 holds President Mobutu responsible for the current

7 political crisis in Zaire;

8 (2) stresses the importance of a successful tran9 sition to democracy in Zaire;

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

11 pressure President Mobutu to leave Zaire so that the

12 legitimate transitional government can proceed with

13 the process of democratization as mandated by the

14 Sovereign National Conference;

15 (4) urges the President of the United States to

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

17 sanctions on President Mobutu, including—

18 (A) freezing the bank accounts of Presi19 dent Mobutu, his family and associates;

20 (B) denying visas to President Mobutu, his

21 family and associates; and

22 (C) expelling Mobutu’s ambassador;

23 (5) congratulates the people of Zaire for their

24 courageous support of democracy in the face of pow25 erful opposition; and
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1 (6) expresses its readiness to explore further

2 ways of providing support for democracy and politi3 cal pluralism in Zaire.

4 (b) RESTRICTIONS ON ASSISTANCE.—

5 (1) SECURITY ASSISTANCE.—Except as pro6 vided in subsection (c), assistance may not be pro7 vided for Zaire for fiscal year 1994—

8 (A) under chapter 4 of part II of the For9 eign Assistance Act of 1961 (relating to the

10 economic support fund),

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

12 (relating to international military education and

13 training), or

14 (C) from the ‘‘Foreign Military Financing

15 Program’’ account under section 23 of the

16 Arms Export Control Act.

17 (2) DEVELOPMENT ASSISTANCE.—Except as

18 provided in subsection (c), assistance under chapter

19 1 or chapter 10 of part I of the Foreign Assistance

20 Act of 1961 (relating to development assistance and

21 the Development Fund for Africa) for fiscal year

22 1994 shall not be transferred to the Government of

23 Zaire. This paragraph does not prohibit nongovern24 mental organizations from working with appropriate
45

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1 ministries or departments of the Government of

2 Zaire.

3 (c) WAIVER WHEN THE DEMOCRATIC PROCESS IS

4 RESTORED.—

5 (1) AUTHORIZATION.—The President may

6 waive the prohibitions in subsection (b) if the Presi7 dent determines, and reports in accordance with

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

9 Zaire, that President Mobutu is no longer a threat

10 to the elected government, and that the elected gov11 ernment is committed to bringing about freedom of

12 expression for the people of Zaire, a reformed and

13 independent judiciary, and reform of, and applica14 tions of the rule of law to, Zaire security forces.

15 (2) CONGRESSIONAL REVIEW OF DETERMINA16 TION.—A determination under paragraph (1) shall

17 not become effective until 15 days after it is re18 ported to the congressional committees specified in

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

20 1961 in accordance with the procedures applicable to

21 reprogramming notifications under that section.

22 SEC. 308. AFGHANISTAN HUMANITARIAN ASSISTANCE.

23 (a) AUTHORIZATION.—Funds described in subsection

24 (c) may be made available for the provision of food, medi-
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1 cine, or other humanitarian assistance to the Afghan peo2 ple notwithstanding any other provision of law.

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

4 In carrying out this section, the administrator of the agen5 cy primarily responsible for carrying out part I of the For6 eign Assistance Act of 1961 shall ensure that an equitable

7 portion of the funds is made available to benefit Afghan

8 women and girls, particularly in programs in refugee

9 camps in Pakistan and in reconstruction projects in

10 Afghanistan.

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

12 amount of funds made available for fiscal year 1994 to

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

14 Act of 1961 (relating to development assistance) and

15 chapter 4 of part II of that Act (relating to the economic

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

17 SEC. 309. MULTILATERAL ASSISTANCE INITIATIVE FOR THE

18 PHILIPPINES.

19 Part I of the Foreign Assistance Act of 1961 is

20 amended by inserting after chapter 3 the following:

21 ‘‘Chapter 4—Multilateral Assistance Initiative for the

22 Philippines

23 ‘‘SEC. 401. AUTHORIZATION OF ASSISTANCE.

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

25 to provide economic assistance for the Philippines under
47

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1 the ‘Multilateral Assistance Initiative’ account. Such as2 sistance shall be provided on such terms and conditions

3 as the President may determine.

4 ‘‘(b) AUTHORIZATION FOR EXTENDED PERIOD OF

5 AVAILABILITY.—Amounts appropriated to carry out this

6 chapter are authorized to remain available until

7 expended.’’.

8 SEC. 310. ASSISTANCE FOR EASTERN EUROPE AND THE

9 BALTICS.

10 (a) ECONOMIC ASSISTANCE.—Section 3 of the Sup11 port for East European Democracy (SEED) Act of 1989

12 is amended—

13 (1) by redesignating subsection (c) as sub14 section (e); and

15 (2) by inserting after subsection (b) the follow16 ing:

17 ‘‘(c) INAPPLICABILITY OF RESTRICTIONS AND RE18 QUIREMENTS.—Assistance provided for an East European

19 country under this Act or under part I of the Foreign As20 sistance Act of 1961 may be provided notwithstanding any

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

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

23 made available to carry out this Act.

24 ‘‘(d) AUTHORIZATION FOR EXTENDED PERIOD OF

25 AVAILABILITY.—Amounts appropriated for economic as-
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1 sistance for East European countries under this Act or

2 the Foreign Assistance Act of 1961 are authorized to re3 main available until expended.’’.

4 (b) ASSISTANCE FOR VICTIMS OF WAR CRIMES IN

5 THE FORMER YUGOSLAVIA.—Assistance provided under

6 section 491 of the Foreign Assistance Act of 1961 (relat7 ing to international disaster assistance) and assistance

8 provided under the Migration and Refugee Assistance Act

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

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

11 the former Yugoslavia and for the families of such victims

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

13 the war in Bosnia-Hercegovina. Such assistance may in14 clude activities such as—

15 (1) the provision (in the United States or

16 abroad)—

17 (A) of medical, psychological, and psy18 chiatric care and crisis counseling for such vic19 tims and their families, and

20 (B) of training of individuals in the former

21 Yugoslavia to provide such care and counseling;

22 and

23 (2) the procurement of necessary medical and

24 training supplies.
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1 (c) CORRECTION OF REFERENCE.—Subsection (e) of

2 section 3 of the Support for East European Democracy

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

4 of this section, is amended—

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

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

7 ‘‘Romania,’’.

8 SEC. 311. ASSISTANCE FOR THE INDEPENDENT STATES OF

9 THE FORMER SOVIET UNION.

10 (a) CUBA.—

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

12 of the Congress that—

13 (A) the acts of the Castro government, in14 cluding its massive, systematic, and extraor15 dinary violations of human rights, are a threat

16 to international peace;

17 (B) the President should advocate, and

18 should instruct the United States Representa19 tives to the United Nations to support and con20 sult with members of the Security Council with

21 respect to, a mandatory international embargo

22 against the totalitarian government of Cuba

23 pursuant to Chapter VII of the Charter of the

24 United Nations, which is similar to consulta-
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1 tions being conducted by United States Rep2 resentatives with respect to Haiti; and

3 (C) any resumption of efforts by any inde4 pendent state of the former Soviet Union to

5 make the nuclear facility at Cienfuegos, Cuba,

6 operational will have a serious impact on

7 United States assistance to such state.

8 (2) REPORTING REQUIREMENT.—The President

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

10 after the date of enactment of this Act, a report de11 tailing progress towards the withdrawal of personnel

12 of any independent state of the former Soviet Union

13 (including advisors, technicians, and military person14 nel) from the Cienfuegos nuclear facility in Cuba.

15 (3) CRITERIA FOR ASSISTANCE.—Section

16 498A(a)(11) of the Foreign Assistance Act of 1961

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

18 inserting ‘‘the military and nuclear facilities at

19 Lourdes and Cienfuegos’’.

20 (4) INELIGIBILITY FOR ASSISTANCE.—(A) Sec21 tion 498A(b) of that Act is amended—

22 (i) by striking ‘‘or’’ at the end of para23 graph (4);

24 (ii) by redesignating paragraph (5) as

25 paragraph (6); and
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1 (iii) by inserting after paragraph (4) the

2 following:

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

4 state that the President determines is providing as5 sistance for, or engaging in nonmarket based trade

6 (as defined in section 498B(m)(3)) with, the Govern7 ment of Cuba; or’’.

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

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

10 section, is amended by adding at the end the

11 following:

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

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

14 trade’ includes exports, imports, exchanges, or other

15 arrangements that are provided for goods and serv16 ices (including oil and other petroleum products) on

17 terms more favorable than those generally available

18 in applicable markets or for comparable commod19 ities, including—

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

21 on terms that involve a grant, concessional

22 price, guaranty, insurance, or subsidy;

23 ‘‘(B) imports from the Government of

24 Cuba at preferential tariff rates; and
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1 ‘‘(C) exchange arrangements that include

2 advance delivery of commodities, arrangements

3 in which the Government of Cuba is not held

4 accountable for unfulfilled exchange contracts,

5 and arrangements under which Cuba does not

6 pay appropriate transportation, insurance, or

7 finance costs.’’.

8 (b) TRANSFERS OF SOPHISTICATED CONVENTIONAL

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

10 amended—

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

12 striking ‘‘to another country’’;

13 (2) in subparagraph (A)—

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

15 ‘‘missiles or missile technology’’; and

16 (B) by striking ‘‘or’’ at the end of such

17 subparagraph;

18 (3) in subparagraph (B)—

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

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

21 (B) by ‘‘or’’ at the end of such subpara22 graph; and

23 (4) by adding at the end the following:
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1 ‘‘(C) sophisticated conventional weapons to

2 Iran in numbers and types that are destabiliz3 ing;’’.

4 (c) AUTHORITY TO WAIVE CERTAIN RESTRIC5 TIONS.—Section 498B(j)(1) of that Act is amended—

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

7 places it appears; and

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

9 ‘‘to carry out this chapter’’.

10 (d) ASSISTANCE IN EXCHANGE FOR COMMODITIES.—

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

12 Act is amended—

13 (A) by redesignating subsection (k) as sub14 section (l); and

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

16 following:

17 ‘‘(k) ASSISTANCE IN EXCHANGE FOR COMMOD18 ITIES.—The President is authorized to provide assistance

19 under this chapter in exchange for materials or commod20 ities, including any strategic material and any commodity

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

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

23 (2) CONGRESSIONAL POLICY STATEMENT.—It is

24 the sense of the Congress that—
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1 (A) the President should encourage those

2 independent states of the former Soviet Union

3 capable of providing eventual reimbursement to

4 the United States for assistance provided to

5 such states under chapter 11 of part I of the

6 Foreign Assistance Act of 1961 to enter into

7 negotiations with the United States to reach

8 agreements outlining such eventual reimburse9 ment; and

10 (B) at least $744,115,000 of the amounts

11 appropriated pursuant to the authorization of

12 appropriations in section 201(a)(8) of this Act

13 for assistance for the independent states of the

14 former Soviet Union for fiscal year 1994 should

15 be obligated only under the terms of agree16 ments providing for eventual reimbursement of

17 such assistance.

18 (3) STUDY OF RESOURCES IN INDEPENDENT

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

20 (A) the resources in each of the independ21 ent states of the former Soviet Union and the

22 prospective revenues from the production and

23 sale of such resources;

24 (B) the possible use of barter or exchange

25 of such resources as methods of reimbursement
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1 for assistance provided to such states under

2 chapter 11 of part I of the Foreign Assistance

3 Act of 1961; and

4 (C) the collateralization of loan and invest5 ment guarantees provided by the United States

6 Government for project financing in such states

7 using the resources or prospective revenues

8 from the production and sale of such resources.

9 (4) REPORTS.—The President shall submit to

10 the relevant congressional committees the following

11 reports:

12 (A) Periodic reports describing the status

13 of negotiations between the United States and

14 any independent state of the former Soviet

15 Union relating to agreements for reimburse16 ment of assistance provided to such state under

17 chapter 11 of part I of the Foreign Assistance

18 Act of 1961.

19 (B) A report containing the results of the

20 study conducted pursuant to paragraph (3), in21 cluding the names of those independent states

22 of the former Soviet Union capable of providing

23 eventual reimbursement of assistance provided

24 to such states under that chapter. Such report
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1 shall be submitted not later than June 30,

2 1994.

3 (5) DEFINITIONS.—For purposes of this sub4 section, the following definitions apply:

5 (A) RELEVANT CONGRESSIONAL COMMIT6 TEES.—The term ‘‘relevant congressional com7 mittees’’ means the Committee on Foreign Af8 fairs of the House of Representatives and the

9 Committee on Foreign Relations of the Senate.

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

11 includes commodities, raw materials (including

12 necessary or strategic raw materials, as defined

13 in section 663(a) of the Foreign Assistance Act

14 of 1961), and other valuable materials.

15 (e) IMPROVING MONITORING OF ECONOMIC PER16 FORMANCE IN THE INDEPENDENT STATES.—Section

17 498B of that Act, as amended by subsection (d)(1) of this

18 section, is further amended—

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

20 (m); and

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

22 following:

23 ‘‘(l) IMPROVING MONITORING OF ECONOMIC PER24 FORMANCE IN THE INDEPENDENT STATES.—Assistance

25 under section 498 shall include training and other tech-
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1 nical assistance to develop capabilities to monitor eco2 nomic performance in the independent states of the former

3 Soviet Union through the collection, analysis, and dissemi4 nation of economic statistical data.’’.

5 (f) REMOVAL OF TROOPS FROM THE BALTIC

6 STATES.—Effective October 1, 1993, paragraph (6) of

7 section 498A(b) of that Act, as so redesignated by sub8 section (a)(4) of this section, is amended to read as

9 follows:

10 ‘‘(6) for the Government of Russia until the

11 President certifies to the Congress that the Govern12 ment of Russia—

13 ‘‘(A) has made further significant progress

14 since the President’s certification to the Con15 gress on May 31, 1993, on the removal of all

16 of the armed forces of Russia and the Common17 wealth of Independent States from Estonia,

18 Latvia, and Lithuania (including any units of

19 such forces that are demobilized), or has com20 pleted with the governments of such countries

21 negotiated agreements that include timetables

22 for such removal; and

23 ‘‘(B) has undertaken good faith efforts,

24 such as negotiations, to end other military prac25 tices by Russia and the Commonwealth of Inde-
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1 pendent States that violate the sovereignty of

2 Estonia, Latvia, or Lithuania, including—

3 ‘‘(i) artillery or similar armed forces

4 training operations on the territories of

5 Estonia, Latvia, or Lithuania without the

6 permission of their governments;

7 ‘‘(ii) interference in the air space or

8 territorial waters of Estonia, Latvia, or

9 Lithuania;

10 ‘‘(iii) the introduction of additional

11 armed forces, military equipment, or relat12 ed civilian personnel onto the territories of

13 Estonia, Latvia, or Lithuania without the

14 permission of their governments; or

15 ‘‘(iv) the imposition of an economic

16 blockade or interruption of energy supplies

17 upon Estonia, Latvia, or Lithuania;

18 except that this paragraph does not apply with re19 spect to (I) housing assistance for officers of the

20 armed forces of Russia and the Commonwealth of

21 Independent States who are withdrawn from the ter22 ritories of Estonia, Latvia, and Lithuania, or (II)

23 food, clothing, medicine, or other humanitarian

24 assistance.’’.
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1 SEC. 312. ASSISTANCE FOR MONGOLIA.

2 The President is authorized to use funds made avail3 able to carry out chapter 11 of part I of the Foreign As4 sistance Act of 1961 (relating to assistance for the inde5 pendent states of the former Soviet Union) to provide as6 sistance for Mongolia in accordance with the same au7 thorities, restrictions, and other provisions that are appli8 cable to assistance under that chapter for independent

9 states of the former Soviet Union.

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

11 Funds made available for fiscal year 1994 to carry

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

13 of 1961 (relating to the international military education

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

15 SEC. 314. ADMINISTRATION OF JUSTICE AND OTHER LAW

16 ENFORCEMENT ASSISTANCE PROGRAMS FOR

17 LATIN AMERICA AND THE CARIBBEAN.

18 (a) EXTENSION OF PROGRAM AUTHORITY.—Section

19 534 of the Foreign Assistance Act of 1961 is amended

20 by striking the last sentence of subsection (e) and by in21 serting after subsection (e) the following:

22 ‘‘(f) The authority of this section shall expire on Sep23 tember 30, 1994.’’.

24 (b) ELIMINATION OF PROGRAM CEILINGS.—Section

25 534 of that Act is amended—
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1 (1) by repealing the second sentence of sub2 section (e); and

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

4 follows:

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

6 may be used to provide assistance under this section.’’.

7 (c) PROTECTION OF PARTICIPANTS IN JUDICIAL

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

9 (1) by redesignating subparagraphs (C) and

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

11 (2) by inserting after subparagraph (B) the fol12 lowing:

13 ‘‘(C) programs to enhance protection of

14 participants in judicial cases;’’.

15 (d) SPECIAL AUTHORITIES FOR CERTAIN COUN16 TRIES.—Funds made available for fiscal year 1994 to

17 carry out section 534 of that Act may be used, notwith18 standing section 660 of that Act, to provide assistance as

19 follows:

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

21 available for Panama for the following:

22 (A) Technical assistance, training, and

23 commodities with the objective of creating a

24 professional civilian police force, except that as25 sistance under this subparagraph—
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1 (i) shall not include more than

2 $5,000,000 for the procurement of equip3 ment for law enforcement purposes, and

4 (ii) shall not include lethal equipment.

5 (B) Programs to improve penal institutions

6 and the rehabilitation of offenders, which may

7 include programs that are not conducted

8 through multilateral or regional institutions.

9 (2) EL SALVADOR.—Funds allocated for El Sal10 vador may be used for law enforcement assistance in

11 a manner consistent with the Salvadoran Peace

12 Accords.

13 SEC. 315. WAIVER OF BROOKE AMENDMENT FOR NICA14 RAGUA.

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

16 and the corresponding section of the Foreign Operations,

17 Export Financing, and Related Programs Appropriations

18 Act, 1994, shall not apply to funds made available for fis19 cal year 1994 for any assistance for Nicaragua under the

20 Foreign Assistance Act of 1961 or the Arms Export

21 Control Act.

22 SEC. 316. SPECIAL NOTIFICATION REQUIREMENTS FOR

23 GUATEMALA AND PERU.

24 Funds made available for fiscal year 1994 to carry

25 out the Foreign Assistance Act of 1961 or for the ‘‘For-
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•HR 2404 EH

1 eign Military Financing Program’’ account under section

2 23 of the Arms Export Control Act may not be obligated

3 for assistance for Guatemala or Peru unless the congres4 sional committees specified in section 634A(a) of the For5 eign Assistance Act of 1961 are notified at least 15 days

6 in advance in accordance with the reprogramming proce7 dures applicable under that section.

8 SEC. 317. ASSISTANCE FOR THE MIDDLE EAST.

9 (a) ISRAEL.—

10 (1) ECONOMIC SUPPORT FUND.—Of the

11 amounts made available for fiscal year 1994 for as12 sistance under chapter 4 of part II of the Foreign

13 Assistance Act of 1961, not less than

14 $1,200,000,000 shall be available only for Israel.

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

16 cash transfer and shall be disbursed in accordance

17 with paragraph (3).

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

19 the amounts made available for fiscal year 1994 for

20 assistance under the ‘‘Foreign Military Financing

21 Program’’ account under section 23 of the Arms Ex22 port Control Act, not less than $1,800,000,000 shall

23 be available only for Israel.

24 (B) To the extent that the Government of Is25 rael requests that funds be used for such purposes,
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1 funds made available for Israel pursuant to this

2 paragraph shall, as agreed by Israel and the United

3 States, be available for advanced fighter aircraft

4 programs or for other advanced weapons systems, as

5 follows:

6 (i) Up to $150,000,000 shall be available

7 for research and development in the United

8 States.

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

10 available for the procurement in Israel of de11 fense articles and defense services, including re12 search and development.

13 (3) EARLY DISBURSEMENT.—The assistance

14 provided for Israel pursuant to paragraphs (1) and

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

16 of enactment of the Foreign Operations, Export Fi17 nancing, and Related Programs Appropriations Act,

18 1994, or by October 31, 1993, whichever is later.

19 (b) EGYPT.—

20 (1) ECONOMIC SUPPORT FUND.—Of the

21 amounts made available for fiscal year 1994 for as22 sistance under chapter 4 of part II of the Foreign

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

24 shall be available only for Egypt.
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1 (2) FOREIGN MILITARY FINANCING.—Of the

2 amounts made available for fiscal year 1994 for as3 sistance under the ‘‘Foreign Military Financing Pro4 gram’’ account under section 23 of the Arms Export

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

6 available only for Egypt.

7 (c) COOPERATIVE DEVELOPMENT PROJECTS.—Of

8 the amounts made available for fiscal year 1994 to carry

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

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

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

12 projects among the United States, Israel, and developing

13 countries, including projects under the Cooperative Devel14 opment Program, cooperative development research

15 projects, and cooperative projects among the United

16 States and Israel and the countries of Eastern Europe,

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

18 Soviet Union.

19 (d) MIDDLE EAST REGIONAL COOPERATIVE PRO20 GRAMS.—Of the amounts made available for fiscal year

21 1994 to carry out chapter 4 of part II of the Foreign As22 sistance Act of 1961 (relating to the economic support

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

24 Middle East regional cooperative programs carried out in
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1 accordance with section 202(c) of the International Secu2 rity and Development Cooperation Act of 1985.

3 SEC. 318. MILITARY DRAWDOWN FOR ISRAEL.

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

5 Financing, and Related Programs Appropriations Act,

6 1991, is amended by inserting ‘‘and fiscal year 1994’’

7 after ‘‘fiscal year 1993’’.

8 SEC. 319. TERMINATION OF IMET PROGRAM FOR INDIA.

9 Funds made available for fiscal year 1994 to carry

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

11 of 1961 (relating to the international military education

12 and training program) may not be obligated for India un13 less the President certifies to the Congress that the Gov14 ernment of India is taking steps to address the human

15 rights problem in India, such as providing access to inter16 national human rights organizations, establishing a

17 human rights commission, holding military personnel ac18 countable for violations of fundamental human rights, and

19 prosecuting human rights abusers.

20 TITLE IV—PROVISIONS RELATING TO

21 ARMS TRANSFERS

22 SEC. 401. COMPETITIVE PRICING FOR SALES OF DEFENSE

23 ARTICLES AND SERVICES.

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

25 Control Act is amended by adding at the end the following:
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1 ‘‘(d) COMPETITIVE PRICING.—Procurement con2 tracts made in implementation of sales under this section

3 for defense articles and defense services wholly paid from

4 funds made available on a nonrepayable basis shall be

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

6 overhead, independent research and development, bid and

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

8 procurements of like items purchased by the Department

9 of Defense for its own use.’’.

10 (b) EFFECTIVE DATE AND IMPLEMENTING REGULA11 TIONS.—The amendment made by subsection (a)—

12 (1) shall be effective as of the 60th day follow13 ing the date of the enactment of this section;

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

15 implementation of sales made after such effective

16 date; and

17 (3) shall be implemented by revised procure18 ment regulations, which shall be issued prior to such

19 effective date.

20 SEC. 402. INCREASE IN AGGREGATE CEILING ON TRANS21 FERS OF EXCESS DEFENSE ARTICLES.

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

23 Export Control Act is amended by striking

24 ‘‘$250,000,000’’ and inserting ‘‘$375,000,000’’.
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1 SEC. 403. ELIGIBILITY OF EAST EUROPEAN COUNTRIES TO

2 RECEIVE NONLETHAL EXCESS DEFENSE AR3 TICLES.

4 (a) IN GENERAL.—Section 519(a) of the Foreign As5 sistance Act of 1961 is amended by inserting ‘‘or to any

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

7 Support for East European Democracy (SEED) Act of

8 1989) other than an East European country that is pro9 hibited from receiving assistance under that Act’’ after ‘‘in

10 which the transfer is authorized’’.

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

12 the Freedom for Russia and Emerging Eurasian Democ13 racies and Open Markets Support Act of 1992 is amend14 ed—

15 (1) by striking paragraph (2);

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

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

18 (3) by redesignating subparagraphs (A) and

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

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

21 and

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

23 (2), as so redesignated, and inserting a period.
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1 SEC. 404. EXCEPTION TO PAYMENT OF FULL COST FOR

2 SALES OF DEFENSE TRAINING SERVICES TO

3 CERTAIN COUNTRIES AND INTERNATIONAL

4 ORGANIZATIONS.

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

6 amended—

7 (1) in paragraph (1)(C)—

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

9 (B) by inserting ‘‘or (ii) a purchaser de10 scribed in paragraph (3)’’ after ‘‘Act of 1961’’,

11 and

12 (C) by striking ‘‘such assistance’’ and in13 serting ‘‘such training’’; and

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

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

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

17 President notifies the Committee on Appropriations, the

18 Committee on Armed Services, and the Committee on For19 eign Relations of the Senate and the Committee on Appro20 priations, the Committee on Armed Services, and the

21 Committee on Foreign Affairs of the House of Representa22 tives, in accordance with the regular notification proce23 dures of those committees, at least 15 days before issuing

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

25 shall include a description of any reciprocal benefits that
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1 the United States Government will receive in exchange for

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

3 SEC. 405. ELIGIBILITY OF MAJOR NON-NATO ALLIES TO RE4 CEIVE CERTAIN CONTRACT SERVICES IN

5 CONNECTION WITH SALES OF DEFENSE ARTI6 CLES AND SERVICES.

7 (a) AUTHORIZATION.—Section 21(h) of the Arms Ex8 port Control Act is amended—

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

10 is a major non-NATO ally’’ after ‘‘Treaty Organiza11 tion’’;

12 (2) in paragraph (2), by striking ‘‘if that Orga13 nization or member government’’ and inserting ‘‘or

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

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

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

17 ‘‘(3) As used in this subsection, the term ‘major non18 NATO ally’ has the meaning given such term in section

19 2350a(i)(3) of title 10, United States Code.’’.

20 (b) EFFECTIVE DATE.—Notwithstanding section

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

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

23 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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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

4 317 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 SEC. 510. PROCUREMENT.

19 Section 604(a) of the Foreign Assistance Act of 1961

20 is amended to read as follows:

21 ‘‘(a) LIMITATIONS ON PROCUREMENT OUTSIDE THE

22 UNITED STATES.—(1) Funds made available for assist23 ance under this Act may be used for procurement outside

24 the United States only if—
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1 ‘‘(A) the funds are used for the procurement of

2 commodities or services, or defense articles or de3 fense services, in the recipient country or in a devel4 oping country;

5 ‘‘(B) the provision of such assistance requires

6 commodities or services, or defense articles or de7 fense services, of a type that are not available for

8 purchase in the United States, the recipient country,

9 or developing countries; or

10 ‘‘(C) the President determines, on a case-by11 case basis, that procurement in a country other than

12 the United States, the recipient country, or a devel13 oping country is necessary to meet unforeseen cir14 cumstances, such as emergency situations, where it

15 is important to permit procurement in such other

16 country.

17 ‘‘(2) For purposes of this section, the term ‘develop18 ing country’ shall not include advanced developing coun19 tries.’’.

20 SEC. 511. VIOLATIONS OF TERMS OF ASSISTANCE.

21 Chapter 3 of part III of the Foreign Assistance Act

22 of 1961, as amended by the preceding sections of this Act,

23 is further amended by adding at the end the following:
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1 ‘‘SEC. 672. VIOLATION OF TERMS OF ASSISTANCE.

2 ‘‘(a) TERMINATION OF ASSISTANCE.—If any recipi3 ent of assistance under this Act uses such assistance in

4 substantial violation (either in terms of amounts or in

5 terms of the gravity of the consequences regardless of the

6 amounts involved) of any agreement pursuant to which

7 that assistance was furnished by using such assistance,

8 without the consent of the United States, for a purpose

9 not authorized under such agreement, then all assistance

10 and deliveries of assistance to such recipient under this

11 Act shall be terminated if—

12 ‘‘(1) the President so determines and states in

13 writing to the Congress; and

14 ‘‘(2) the Congress enacts a joint resolution de15 claring that the Congress agrees with such deter16 mination.

17 ‘‘(b) PERIOD OF TERMINATION.—Assistance shall re18 main terminated in accordance with subsection (a) until

19 such time as—

20 ‘‘(1) the President determines that the violation

21 has ceased; and

22 ‘‘(2) the recipient concerned has given assur23 ances satisfactory to the President that such viola24 tion will not recur.’’.
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1 SEC. 512. FOREIGN AID REPORTING REQUIREMENT.

2 (a) ANNUAL FOREIGN ASSISTANCE JUSTIFICATION

3 REPORT.—In conjunction with the submission of the an4 nual requests for enactment of authorizations and appro5 priations for foreign assistance programs for each fiscal

6 year, the President shall submit to the Congress a single

7 report containing an integrated justification for all foreign

8 assistance programs proposed by the President for the

9 coming fiscal year. Each such report shall include—

10 (1) the total amount of assistance proposed to

11 be provided under each foreign assistance program;

12 (2) the justification for that amount;

13 (3) the objectives that assistance under that

14 program is intended to achieve;

15 (4) an explanation of the relationship of assist16 ance under that program to other assistance pro17 vided by the United States; and

18 (5) the President’s estimation of the date by

19 which the objectives of that program will be achieved

20 and the program concluded.

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

22 ‘‘foreign assistance program’’ includes any program of as23 sistance under the Foreign Assistance Act of 1961 or the

24 Arms Export Control Act.

25 SEC. 513. DISADVANTAGED ENTERPRISES.

26 (a) FUNDING LEVEL.—
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1 (1) IN GENERAL.—Except to the extent that

2 the administrator of the agency primarily respon3 sible for administering part I of the Foreign Assist4 ance Act of 1961 (hereinafter in this section referred

5 to as the ‘‘Administrator’’ and the ‘‘Agency’’ respec6 tively) determines otherwise, not less than 10 per7 cent of the aggregate amount made available for

8 each fiscal year for assistance under chapter 1 of

9 that part (relating to development assistance), chap10 ter 9 of that part (relating to international disaster

11 assistance), and chapter 10 of that part (relating to

12 the Development Fund for Africa) shall be made

13 available only for activities of United States organi14 zations and individuals that are—

15 (A) business concerns owned and con16 trolled by socially and economically disadvan17 taged individuals,

18 (B) historically black colleges and univer19 sities,

20 (C) colleges and universities having a stu21 dent body in which more than 40 percent of the

22 students are Hispanic American, and

23 (D) private voluntary organizations which

24 are controlled by individuals who are socially

25 and economically disadvantaged.
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1 (2) REPORT.—If for any fiscal year less than

2 the amount specified in paragraph (1) is used for

3 the activities described in that paragraph, the Ad4 ministrator shall submit to the Congress a report ex5 plaining why that amount was not so used.

6 (b) ADDITIONAL ACTIONS.—

7 (1) IN GENERAL.—In addition to other actions

8 taken to carry out this section, the actions described

9 in paragraphs (2) through (5) shall be taken with

10 respect to assistance under chapter 1, chapter 9,

11 and chapter 10 of part I of the Foreign Assistance

12 Act of 1961 for each fiscal year.

13 (2) AUTHORITIES AND PROCEDURES.—Notwith14 standing any other provision of law, in order to

15 achieve the goals of this section, the Adminis16 trator—

17 (A) to the maximum extent practicable,

18 shall utilize the authority of section 8(a) of the

19 Small Business Act (15 U.S.C. 637(a));

20 (B) to the maximum extent practicable,

21 shall enter into contracts with small business

22 concerns owned and controlled by socially and

23 economically disadvantaged individuals, and or24 ganizations described in subparagraphs (B)

25 through (D) of subsection (a)(1)—
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1 (i) using less than full and open com2 petitive procedures under such terms and

3 conditions as the Administrator deems ap4 propriate, and

5 (ii) using an administrative system for

6 justifications and approvals that, in the

7 Administrator’s discretion, may best

8 achieve the purpose of this section; and

9 (C) shall issue regulations to require that

10 any contract in excess of $500,000 contain a

11 provision requiring that no less than 10 percent

12 of the dollar value of the contract be subcon13 tracted to entities described in subsection

14 (a)(1), except—

15 (i) to the extent the Administrator de16 termines otherwise on a case-by-case or

17 category-of-contract basis; and

18 (ii) this subparagraph does not apply

19 to any prime contractor that is an entity

20 described in subsection (a)(1).

21 (3) NOTICE OF ADVERTISING OF CONTRACTS.—

22 Each person with contracting authority who is at23 tached to the Agency’s headquarters in Washington,

24 as well as all Agency missions and regional offices,

25 shall notify the Agency’s Office of Small and Dis-
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1 advantaged Business Utilization at least seven busi2 ness days before advertising a contract in excess of

3 $100,000.

4 (4) PERFORMANCE EVALUATIONS.—The Ad5 ministrator shall include, as part of the performance

6 evaluation of any mission director of the Agency, the

7 mission director’s efforts to carry out this section.

8 (5) ANNUAL REPORTS.—The Administrator

9 shall submit to the Congress annual reports on the

10 implementation of this section. Each such report

11 shall specify the number and dollar value or amount

12 (as the case may be) of prime contracts, sub13 contracts, grants, and cooperative agreements

14 awarded to entities described in subsection (a)(1)

15 during the preceding fiscal year.

16 (c) DEFINITION.—As used in this section, the term

17 ‘‘socially and economically disadvantaged individuals’’ has

18 the same meaning that term is given for purposes of sec19 tion 8(d) of the Small Business Act, except that the term

20 includes women.
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1 SEC. 514. PROHIBITION ON SECURITY ASSISTANCE TO

2 COUNTRIES THAT CONSISTENTLY OPPOSE

3 THE UNITED STATES POSITION IN THE UNIT4 ED NATIONS GENERAL ASSEMBLY.

5 (a) PROHIBITION.—Security assistance may not be

6 provided to a country that consistently opposed the United

7 States position in the United Nations General Assembly

8 during the most recent session of the General Assembly.

9 (b) CHANGE IN GOVERNMENT.—If—

10 (1) the Secretary of State determines that,

11 since the beginning of the most recent session of the

12 General Assembly, there has been a fundamental

13 change in the leadership and policies of the govern14 ment of a country to which the prohibition in sub15 section (a) applies, and

16 (2) the Secretary believes that because of that

17 change the government of that country will no

18 longer consistently oppose the United States position

19 in the General Assembly,

20 the Secretary may submit to the Congress a request that

21 the Congress enact an exemption from that prohibition for

22 that country. Any such exemption shall be effective only

23 until submission of the next report under section 406 of

24 the Foreign Relations Authorization Act, Fiscal Years

25 1990 and 1991. Any request for such an exemption shall
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1 be accompanied by a discussion of the basis for the Sec2 retary’s determination and belief.

3 (c) WAIVER AUTHORITY.—The Secretary of State

4 may waive the requirement of subsection (a) if the Sec5 retary determines and reports to the Congress that despite

6 the United Nations voting pattern of a particular country,

7 the provision of security assistance to that country is nec8 essary to promote United States foreign policy objectives.

9 (d) DEFINITIONS.—As used in this section—

10 (1) the term ‘‘consistently opposed the United

11 States position’’ means that the country’s votes in

12 the United Nations General Assembly coincided with

13 the United States position less than 25 percent of

14 the time, using for this purpose the overall percent15 age-of-voting coincidences set forth in the annual re16 port submitted to the Congress pursuant to section

17 406 of the Foreign Relations Authorization Act, Fis18 cal Years 1990 and 1991;

19 (2) the term ‘‘most recent session of the Gen20 eral Assembly’’ means the most recently completed

21 plenary session of the General Assembly for which

22 overall percentage-of-voting coincidences is set forth

23 in the most recent report submitted to the Congress

24 pursuant to section 406 of the Foreign Relations

25 Authorization Act, Fiscal Years 1990 and 1991; and
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1 (3) the term ‘‘security assistance’’ means assist2 ance under—

3 (A) chapter 4 of part II of the Foreign As4 sistance Act of 1961 (relating to the economic

5 support fund),

6 (B) chapter 5 of part II of that Act (relat7 ing to international military education and

8 training), or

9 (C) the ‘‘Foreign Military Financing Pro10 gram’’ account under section 23 of the Arms

11 Export Control Act,

12 except that the term does not include narcotics-relat13 ed assistance.

14 (e) EFFECTIVE DATE.—This section takes effect

15 upon submission to the Congress of the report pursuant

16 to section 406 of the Foreign Relations Authorization Act,

17 Fiscal Years 1990 and 1991, that is required to be sub18 mitted by March 31, 1994.

19 TITLE VI—BOSNIA-HERCEGOVINA

20 SEC. 601. SHORT TITLE.

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

22 Self-Defense Act of 1993’’.

23 SEC. 602. FINDINGS.

24 The Congress makes the following findings:
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1 (1) On July 10, 1991, the United States adopt2 ed a policy suspending all licenses and other approv3 als to export or otherwise transfer defense articles

4 and defense services to Yugoslavia.

5 (2) On September 25, 1991, the United Na6 tions Security Council adopted Resolution 713,

7 which imposed a mandatory international embargo

8 on all deliveries of weapons and military equipment

9 to Yugoslavia.

10 (3) The United States considered the policy

11 adopted July 10, 1991, to comply fully with Resolu12 tion 713 and therefore took no additional action in

13 response to that resolution.

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

15 Security Council adopted Resolution 727, which de16 cided that the mandatory arms embargo imposed by

17 Resolution 713 should apply to any independent

18 states that might thereafter emerge on the territory

19 of Yugoslavia.

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

21 people of Bosnia-Hercegovina voted in a referendum

22 to declare independence from Yugoslavia.

23 (6) On April 7, 1992, the United States recog24 nized the Government of Bosnia-Hercegovina.
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1 (7) On May 22, 1992, the Government of

2 Bosnia-Hercegovina was admitted to full member3 ship in the United Nations.

4 (8) Consistent with Resolution 727, the United

5 States has continued to apply the policy adopted

6 July 10, 1991, to independent states that have

7 emerged on the territory of the former Yugoslavia,

8 including Bosnia-Hercegovina.

9 (9) Subsequent to the adoption of Resolution

10 727 and Bosnia-Hercegovina’s independence referen11 dum, the seige of Sarajevo began and fighting

12 spread to other areas of Bosnia-Hercegovina.

13 (10) The Government of Serbia intervened di14 rectly in the fighting by providing significant mili15 tary, financial, and political support and direction to

16 Serbian-allied irregular forces in Bosnia17 Hercegovina.

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

19 1992, the Conference on Security and Cooperation

20 in Europe declared that the Government of Serbia

21 and the Serbian-controlled Yugoslav National Army

22 were committing aggression against the Government

23 of Bosnia-Hercegovina and assigned to them prime

24 responsibility for the escalation of bloodshed and de25 struction.
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1 (12) On May 30, 1992, the United Nations Se2 curity Council adopted Resolution 757, which con3 demned the Government of Serbia for its continued

4 failure to respect the territorial integrity of Bosnia5 Hercegovina.

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

7 the last year, occupied approximately 70 percent of

8 the territory of Bosnia-Hercegovina, committed

9 gross violations of human rights in the areas they

10 have occupied, and established a secessionist govern11 ment committed to eventual unification with Serbia.

12 (14) The military and other support and direc13 tion provided to Serbian-allied irregular forces in

14 Bosnia-Hercegovina constitutes an armed attack on

15 the Government of Bosnia-Hercegovina by the Gov16 ernment of Serbia within the meaning of Article 51

17 of the United Nations Charter.

18 (15) Under Article 51, the Government of

19 Bosnia-Hercegovina, as a member of the United Na20 tions, has an inherent right of individual or collective

21 self-defense against the armed attack from the Gov22 ernment of Serbia until the United Nations Security

23 Council has taken measures necessary to maintain

24 international peace and security.
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1 (16) The measures taken by the United Nations

2 Security Council in response to the armed attack on

3 Bosnia-Hercegovina have not been adequate to

4 maintain international peace and security.

5 (17) Bosnia-Hercegovina has been unable suc6 cessfully to resist the armed attack from Serbia be7 cause it lacks the means to counter heavy weaponry

8 that Serbia obtained from the Yugoslav National

9 Army upon the dissolution of Yugoslavia, and be10 cause the mandatory international arms embargo

11 has prevented Bosnia-Hercegovina from obtaining

12 from other countries the means to counter such

13 heavy weaponry.

14 (18) On December 18, 1992, with the affirma15 tive vote of the United States, the United Nations

16 General Assembly adopted Resolution 47/121, which

17 urged the United Nations Security Council to ex18 empt Bosnia-Hercegovina from the mandatory arms

19 embargo imposed by Resolution 713.

20 (19) In the absence of adequate measures to

21 maintain international peace and security, continued

22 application to the Government of Bosnia23 Hercegovina of the mandatory international arms

24 embargo imposed by the United Nations Security

25 Council prior to the armed attack on Bosnia-
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1 Hercegovina undermines that government’s right of

2 individual or collective self-defense and therefore

3 contravenes Article 51 of the United Nations

4 Charter.

5 (20) Bosnia-Hercegovina’s right of self-defense

6 under Article 51 of the United Nations Charter in7 cludes the right to ask for military assistance from

8 other countries and to receive such assistance if

9 offered.

10 SEC. 603. UNITED STATES ARMS EMBARGO OF THE GOV11 ERNMENT OF BOSNIA-HERCEGOVINA.

12 (a) TERMINATION.—The President may terminate

13 the United States arms embargo of the Government of

14 Bosnia-Hercegovina upon receipt from that government of

15 a request for assistance in exercising its right of self-de16 fense under Article 51 of the United Nations Charter.

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

18 ‘‘United States arms embargo of the Government of

19 Bosnia-Hercegovina’’ means the application to the Gov20 ernment of Bosnia-Hercegovina of—

21 (1) the policy adopted July 10, 1991, and pub22 lished in the Federal Register of July 19, 1991 (58

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

24 Munitions Export Licenses to Yugoslavia’’; and
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1 (2) any similar policy being applied by the

2 United States Government, as of the date of receipt

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

4 to which approval is routinely denied for transfers of

5 defense articles and defense services to the former

6 Yugoslavia.

7 SEC. 604. UNITED STATES MILITARY ASSISTANCE FOR

8 BOSNIA-HERCEGOVINA.

9 (a) POLICY.—The President should provide appro10 priate military assistance to the Government of Bosnia11 Hercegovina upon receipt from that government of a re12 quest for assistance in exercising its right of self-defense

13 under Article 51 of the United Nations Charter.

14 (b) AUTHORIZATION OF MILITARY ASSISTANCE.—

15 (1) DRAWDOWN AUTHORITY.—If the Govern16 ment of Bosnia-Hercegovina requests United States

17 assistance in exercising its right of self-defense

18 under Article 51 of the United Nations Charter, the

19 President is authorized to direct the drawdown of

20 defense articles from the stocks of the Department

21 of Defense, defense services of the Department of

22 Defense, and military education and training in

23 order to provide assistance to the Government of

24 Bosnia-Hercegovina. Such assistance shall be pro-
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1 vided on such terms and conditions as the President

2 may determine.

3 (2) LIMITATION ON VALUE OF TRANSFERS.—

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

5 of the Foreign Assistance Act of 1961) of defense

6 articles, defense services, and military education and

7 training provided under this subsection may not ex8 ceed $200,000,000.

9 (3) EXPIRATION OF AUTHORIZATION.—The au10 thority provided to the President in paragraph (1)

11 expires at the end of fiscal year 1994.

12 (4) LIMITATION ON ACTIVITIES.—Members of

13 the United States Armed Forces who perform de14 fense services or provide military education and

15 training outside the United States under this sub16 section may not perform any duties of a combatant

17 nature, including any duties related to training and

18 advising that may engage them in combat activities.

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

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

21 and every 60 days thereafter, the President shall re22 port in writing to the Speaker of the House of Rep23 resentatives and the President pro tempore of the

24 Senate concerning the defense articles, defense serv25 ices, and military education and training being pro-
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1 vided and the use made of such articles, services,

2 and education and training.

3 (6) REIMBURSEMENT.—Defense articles, de4 fense services, and military education and training

5 provided under this subsection shall be made avail6 able without reimbursement to the Department of

7 Defense.

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

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

10 determine the manner in which defense articles from the

11 stocks of the Department of Defense and defense services

12 and military education and training are drawn down from

13 the Department of Defense under this title to provide as14 sistance to the Government of Bosnia-Hercegovina. In

15 making this determination, the Secretary of Defense shall,

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

17 readiness of the armed forces of the United States.

18 (b) FUNDING THROUGH REGULAR DEFENSE APPRO19 PRIATIONS.—

20 (1) REPLENISHMENT OF DEFENSE ARTICLES

21 AND RESOURCES.—Articles from defense stocks pro22 vided to the Government of Bosnia-Hercegovina

23 under this title, and resources expended during the

24 course of providing defense services and military
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1 education and training to such Government under

2 this title, should be replenished.

3 (2) FUNDING.—Any funds necessary to accom4 plish the replenishment described in paragraph (1)

5 should be authorized and appropriated in defense

6 authorization and appropriations Acts.

7 TITLE VII—MISCELLANEOUS PROVISIONS

8 SEC. 701. DEPLOYMENT OF U.N. TROOPS TO KOSOVO.

9 The President shall direct the United States Rep10 resentative to the United Nations to urge the Security

11 Council to deploy United Nations troops to Kosovo, where

12 their presence will have a positive and preventive influence

13 in stopping and reversing Serbian repression.

14 SEC. 702. INCREASE IN CSCE OBSERVER MISSIONS IN

15 KOSOVO.

16 The President shall direct the United States rep17 resentative to the Conference on Security and Cooperation

18 in Europe (in this section referred to as the ‘‘CSCE’’) to

19 urge the CSCE to increase the number of the permanent
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1 CSCE observer missions in Kosovo from 20 to at least

2 50.

Passed the House of Representatives June 16, 1993.

Attest:

Clerk.

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