164
people’’ which serve as the ‘‘collective conscience of
our community’’.
(11) The Charter of the United Nations calls
upon Member states to respect the territorial integ-
rity and political independence of any state in keep-
ing with the Purposes of the United Nations.
(12) The sovereign and independent state of
Bosnia-Herzegovina has been and continues to be
subjected to armed aggression by Bosnian Serb
forces, Croatian Serb forces, and others in violation
of Final Act and the Charter.
(13) Unchecked armed aggression and genocide
threatens the lives of innocent civilians as well as the
very existence of the sovereign and independent state
of Bosnia-Herzegovina.
(b) SENSE OF CONGRESS.—It is the sense of the
Congress that the United States should refuse to recognize
the incorporation of any of the territory of Bosnia-
Herzegovina into the territory of any neighboring state or
the creation of any new state or states within the borders
of Bosnia-Herzegovina resulting from the threat or use of
force, coercion, or any other means inconsistent with inter-
national law.
165
SEC. 2703. THE LAOGAI SYSTEM OF POLITICAL PRISONS.
(a) FINDINGS.—The Congress makes the following
findings:
(1) The Chinese gulag, known as the Laogai,
was created as a primary means of political repres-
sion and control when the Communists assumed
power in China in 1949.
(2) The Laogai has caused millions of people to
suffer grave human rights abuses over the past 46
years, including countless deaths.
(3) The Laogai continues to be used to incar-
cerate unknown numbers of ordinary citizens for po-
litical reasons, including workers, students, intellec-
tuals, religious believers, and Tibetans.
(4) So-called ‘‘thought reform’’ is a standard
practice of Laogai officials, and reports of torture
are routinely received by human rights organizations
from Laogai prisoners and survivors.
(5) Negotiations about unfettered access to
Laogai prisoners between the Chinese Government
and the International Red Cross have ceased.
(6) The Laogai is in reality a huge system of
forced labor camps in which political and penal
criminals are slave laborers producing an array of
products for export throughout the world, including
the United States.
166
(7) The Chinese Government continues to main-
tain, as part of its official propaganda and in defi-
ance of significant evidence to the contrary gathered
by many human rights organizations, that the
Laogai is a prison system like any other in the
world.
(8) Testimony delivered before the Subcommit-
tee on International Operations and Human Rights
of the Committee on International Relations of the
House of Representatives has documented human
rights abuses in the Laogai which continue to this
day.
(9) The American people have repeatedly ex-
pressed their abhorrence of forced labor camps sys-
tems, whether they be operated by the Nazis, Soviet
Communists, or any other political ideology.
(b) SENSE OF CONGRESS.—It is the sense of the
Congress that the President should—
(1) publicly condemn the continued existence of
the Laogai, and call upon the Government of the
People’s Republic of China to dismantle it, and re-
lease all of its political prisoners; and
(2) instruct the appropriate diplomatic rep-
resentatives of the United States to cause a resolu-
tion condemning the Laogai to be put before the
167
United Nations Human Rights Commission and
work for its passage.
SEC. 2704. CONCERNING THE USE OF FUNDS TO FURTHER
NORMALIZE RELATIONS WITH VIETNAM.
It is the sense of the Congress that none of the funds
authorized to be appropriated or otherwise made available
by this Act may be obligated or expended to further nor-
malize diplomatic relations between the United States and
Vietnam, until Vietnam—
(1) releases all of its political and religious pris-
oners;
(2) accounts for American POWs and MIAs
from the Vietnam War;
(3) holds democratic elections; and
(4) institutes policies which protect human
rights.
SEC. 2705. DECLARATION OF CONGRESS REGARDING UNIT-
ED STATES GOVERNMENT HUMAN RIGHTS
POLICY TOWARD CHINA.
(a) FINDINGS.—The Congress makes the following
findings:
(1) According to the 1994 State Department
Country Reports on Human Rights Practices there
continue to be ‘‘widespread and well-documented
human rights abuses in China, in violation of inter-
168
nationally accepted norms . . . (including) arbitrary
and lengthy incommunicado detention, torture, and
mistreatment of prisoners. The regime continued se-
vere restrictions on freedoms of speech, press assem-
bly and association, and tightened controls on the
exercise of these rights during 1994. Serious human
rights abuses persisted in Tibet and other areas pop-
ulated by ethnic minorities’’.
(2) The President, in announcing his decision
on Most Favored Nation trading status for China in
May 1994 stated that, ‘‘China continues to commit
very serious human rights abuses. Even as we en-
gage the Chinese on military, political, and economic
issues, we intend to stay engaged with those in
China who suffer from human rights abuses. The
United States must remain a champion of their lib-
erties’’.
(b) SENSE OF CONGRESS.—It is the sense of the
Congress that the President should take the following ac-
tions:
(1) Decline the invitation to visit China until
and unless there is dramatic overall progress on
human rights in China and Tibet and communicate
to the Government of China that such a visit cannot
take place without such progress. Indications of
169
overall progress would include the release of hun-
dreds of political, religious, and labor activists; an
agreement to allow unhindered confidential access to
prisoners by international humanitarian agencies;
enactment of major legal reforms such as an end to
all restrictions on the exercise of freedom of religion,
revocation of the 1993 state security law, and the
abolition of all so-called ‘‘counter-revolutionary’’
crimes; and a decision to allow unrestricted access to
Tibet by foreign media and international human
rights monitors.
(2) Seek to develop an agreement on a multilat-
eral strategy to promote human rights in China with
other members of the G–7, beginning with the meet-
ing of the G–7 industrial partners scheduled for
June 1995 in Halifax, Nova Scotia. Such an agree-
ment should include efforts to encourage greater co-
operation by the Government of China with the
human rights rapporteurs and working groups of the
United Nations Human Rights Commission, as well
as bilateral and multilateral initiatives to secure the
unconditional release of imprisoned peaceful pro-de-
mocracy advocates such as Wei Jingsheng.
(3) Instruct the United States delegates to the
United Nations Fourth World Conference on Women
170
in September 1995 to vigorously and publicly sup-
port nongovernmental organizations that may be
subjected to harassment or to restrictions or limita-
tions on their activities, access to the media, or to
channels of communication during the conference by
the Government of China and to protest publicly and
privately any actions by the Government of China
aimed at punishing or repressing Chinese citizens
who seek to peacefully express their views or com-
municate with foreign citizens or media during or
following the United Nations Conference.
(4) Extend an invitation to the Dalai Lama to
visit Washington, District of Columbia, in 1995.
(c) UNITED STATES GOVERNMENT HUMAN RIGHTS
POLICY TOWARD CHINA.—It shall be the policy of the
United States Government to continue to promote inter-
nationally recognized human rights and worker rights in
China and Tibet. The President shall submit the following
reports on the formulation and implementation of United
States human rights policy toward China and the results
of that policy to the International Relations Committee of
the House of Representatives:
(1) Not later than 90 days after the date of en-
actment of this Act, the President shall report on
the status of the ‘‘new United States Human Rights
171
Policy for China’’ announced by the President on
May 26, 1994, including an assessment of the imple-
mentation and effectiveness of the policy in bringing
about human rights improvements in China and
Tibet, with reference to the following specific initia-
tives announced on that date:
(A) High-level dialogue on human rights.
(B) Voluntary principles in the area of
human rights for United States businesses op-
erating in China.
(C) Increased contact with and support for
groups and individuals in China promoting law
reform and human rights.
(D) Increased exchanges to support human
rights law reform in China.
(E) The practice of all United States offi-
cials who visit China to meet with the broadest
possible spectrum of Chinese citizens.
(F) Increased efforts to press United
States views on human rights in China at the
United Nations, the United Nations Human
Rights Commission, and other international or-
ganizations.
(G) A plan of international actions to ad-
dress Tibet’s human rights problems and to
172
promote substantive discussions between the
Dalai Lama and the Chinese Government.
(H) Efforts to use the 1995 United Na-
tions Women’s Conference in Beijing to expand
freedoms of speech, association, and assembly,
as well as the rights of women, in China.
(I) An information strategy for promoting
human rights by expanding Chinese and Ti-
betan language broadcasts on the Voice of
America and establishing Radio Free Asia.
(J) Encouraging the Chinese Government
to permit international human rights groups to
operate in and visit China.
(2) Not later than 120 days after the date of
enactment of this Act, the President shall report on
the status of Chinese Government compliance with
United States laws prohibiting the importation into
the United States of forced labor products, including
(but not limited to) a complete assessment and re-
port on the implementation of the Memorandum of
Understanding signed by the United States and
China in 1992. The report shall include (but not be
limited to) the following:
(A) All efforts made by the United States
Customs Service from 1992 until the date of
173
the report to investigate forced labor exports
and to conduct unannounced unrestricted in-
spections of suspected forced labor sites in
China, and the extent to which Chinese authori-
ties cooperated with such investigations.
(B) Recommendations of what further
steps might be taken to enhance United States
effectiveness in prohibiting forced labor exports
to the United States from China.
SEC. 2706. CONCERNING THE UNITED NATIONS VOL-
UNTARY FUND FOR VICTIMS OF TORTURE.
It is the sense of the Congress that the President,
acting through the United States Permanent Representa-
tive to the United Nations, should—
(1) request the United Nations Voluntary Fund
for Victims of Torture—
(A) to find new ways to support and pro-
tect treatment centers that are carrying out re-
habilitative services for victims of torture; and
(B) to encourage the development of new
such centers;
(2) use the voice and vote of the United States
to support the work of the Special Rapporteur on
Torture and the Committee Against Torture estab-
lished under the Convention Against Torture and
174
Other Cruel, Inhuman or Degrading Treatment or
Punishment; and
(3) use the voice and vote of the United States
to establish a country rapporteur or similar proce-
dural mechanism to investigate human rights viola-
tions in a country if either the Special Rapporteur
or the Committee Against Torture indicates that a
systematic practice of torture is prevalent in that
country.
DIVISION C—FOREIGN
ASSISTANCE AUTHORIZATIONS
SEC. 3001. SHORT TITLE.
This division may be cited as the ‘‘Foreign Aid Re-
duction Act of 1995’’.
SEC. 3002. DECLARATION OF POLICY.
The Congress declares the following:
(1) United States leadership overseas must be
maintained to support our vital national security,
economic, and humanitarian interests.
(2) As part of this leadership, United States
foreign assistance programs are essential to support
these national interests.
(3) However, United States foreign assistance
programs can be responsibly reduced while maintain-
ing United States leadership overseas.
175
TITLE XXXI—DEFENSE AND
SECURITY ASSISTANCE
CHAPTER 1—MILITARY AND RELATED
ASSISTANCE
Subchapter A—Foreign Military Financing
Program
SEC. 3101. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for grant as-
sistance under section 23 of the Arms Export Control Act
(22 U.S.C. 2763) and for the subsidy cost, as defined in
section 502(5) of the Federal Credit Reform Act of 1990,
of direct loans under such section—
(1) $3,341,440,000 for fiscal year 1996; and
(2) $3,270,020,000 for fiscal year 1997.
SEC. 3102. ASSISTANCE FOR ISRAEL.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1996 and 1997 for assistance
under the ‘‘Foreign Military Financing Program’’ account
under section 23 of the Arms Export Control Act (22
U.S.C. 2763), not less than $1,800,000,000 for each such
fiscal year shall be available only for Israel.
(b) TERMS OF ASSISTANCE.—
(1) GRANT BASIS.—The assistance provided for
Israel for each fiscal year under subsection (a) shall
be provided on a grant basis.
177
(c) FOREIGN MILITARY SALES.—Section 21(h) of the
Arms Export Control Act (22 U.S.C. 2761(h)) is amend-
ed—
(1) in paragraph (1)(A), by inserting ‘‘or the
Government of Israel’’ after ‘‘North Atlantic Treaty
Organization’’; and
(2) in paragraph (2), by striking ‘‘or to any
member government of that Organization if that Or-
ganization or member government’’ and inserting ‘‘,
any member government of that Organization, or the
Government of Israel, if the Organization, member
government, or Government of Israel, as the case
may be,’’.
SEC. 3103. ASSISTANCE FOR EGYPT.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1996 and 1997 for assistance
under the ‘‘Foreign Military Financing Program’’ account
under section 23 of the Arms Export Control Act (22
U.S.C. 2763), not less than $1,300,000,000 for each such
fiscal year shall be available only for Egypt.
(b) TERMS OF ASSISTANCE.—The assistance pro-
vided for Egypt for each fiscal year under subsection (a)
shall be provided on a grant basis.
178
SEC. 3104. LOANS FOR GREECE AND TURKEY.
Of the amounts made available for fiscal year 1996
under the ‘‘Foreign Military Financing Program’’ account
under section 23 of the Arms Export Control Act (22
U.S.C. 2763)—
(1) not more than $26,620,000 shall be made
available for the subsidy cost, as defined in section
502(5) of the Federal Credit Reform Act of 1990,
of direct loans for Greece; and
(2) not more than $37,800,000 shall be made
available for such subsidy cost of direct loans for
Turkey.
SEC. 3105. LOANS FOR THE CZECH REPUBLIC, HUNGARY,
AND POLAND.
Of the amounts made available for fiscal years 1996
and 1997 under the ‘‘Foreign Military Financing Pro-
gram’’ account under section 23 of the Arms Export Con-
trol Act (22 U.S.C. 2763), not more than $25,000,000
for each such fiscal year shall be made available for the
subsidy cost, as defined in section 502(5) of the Federal
Credit Reform Act of 1990, of direct loans for the Czech
Republic, Hungary, and Poland.
SEC. 3106. TERMS OF LOANS.
Section 31(c) of the Arms Export Control Act (22
U.S.C. 2771(c)) is amended to read as follows:
179
‘‘(c) Loans available under section 23 shall be pro-
vided at rates of interest that are not less than the current
average market yield on outstanding marketable obliga-
tions of the United States of comparable maturities.’’.
Subchapter B—Other Assistance
SEC. 3121. DEFENSE DRAWDOWN SPECIAL AUTHORITIES.
(a) MILITARY ASSISTANCE DRAWDOWN.—Section
506(a)(1) of the Foreign Assistance Act of 1961 (22
U.S.C. 2318(a)(1)) is amended by striking ‘‘$75,000,000’’
and inserting ‘‘$100,000,000’’.
(b) NONMILITARY ASSISTANCE DRAWDOWN.—Sec-
tion 506 of such Act (22 U.S.C. 2318) is amended—
(1) in subsection (a)(2)(A), by striking ‘‘di-
rect—’’ and all that follows through the period and
inserting the following: ‘‘direct the drawdown of
such articles, services, and education and training
for the purposes and under the authorities of—
‘‘(i) chapter 8 of part I (relating to inter-
national narcotics control assistance),
‘‘(ii) chapter 9 of part I (relating to inter-
national disaster assistance), or
‘‘(iii) the Migration and Refugee Assistance Act
of 1962.’’;
(2) in subsection (a)(2)(B)—
180
(A) by striking ‘‘$75,000,000’’ and insert-
ing ‘‘$150,000,000’’; and
(B) by striking ‘‘of this paragraph’’ and
inserting the following: ‘‘of this paragraph—
‘‘(i) not more than $75,000,000 of which
may be provided from the drawdown from the
inventory and resources of the Department of
Defense; and
‘‘(ii) not more than $75,000,000 of which
may be provided pursuant to clause (i) of such
subparagraph’’; and
(3) in subsection (b)(1), by adding at the end
the following: ‘‘In the case of drawdowns authorized
by clauses (i) and (iii) of subsection (a)(2)(A), noti-
fications shall be provided to those committees at
least 15 days in advance in accordance with the pro-
cedures applicable to reprogramming notifications
under section 634A.’’.
(c) NOTICE TO CONGRESS OF EXERCISE OF SPECIAL
AUTHORITIES.—Section 652 of such Act (22 U.S.C.
2411) is amended by striking ‘‘prior to the date’’ and in-
serting ‘‘before’’.
SEC. 3122. STOCKPILES OF DEFENSE ARTICLES.
(a) LIMITATION ON VALUE OF ADDITIONS.—Section
514(b)(1) of the Foreign Assistance Act of 1961 (22
181
U.S.C. 2321h(b)(1)) is amended by inserting ‘‘or in the
implementation of agreements with Israel’’ after ‘‘North
Atlantic Treaty Organization’’.
(b) ADDITIONS IN FISCAL YEARS 1996 AND 1997.—
Section 514(b)(2) of such Act (22 U.S.C. 2321h(b)(2))
is amended to read as follows:
‘‘(2)(A) The value of such additions to stockpiles of
defense articles in foreign countries shall not exceed
$50,000,000 for each of the fiscal years 1996 and 1997.
‘‘(B) Of the amount specified in subparagraph (A)
for each of the fiscal years 1996 and 1997, not more than
$40,000,000 may be made available for stockpiles in the
Republic of Korea and not more than $10,000,000 may
be made available for stockpiles in Thailand.’’.
(c) LOCATION OF STOCKPILES OF DEFENSE ARTI-
CLES.—Section 514(c) of such Act (22 U.S.C. 2321h(c))
is amended to read as follows:
‘‘(c) LOCATION OF STOCKPILES OF DEFENSE ARTI-
CLES.—
‘‘(1) LIMITATION.—Except as provided in para-
graph (2), no stockpile of defense articles may be lo-
cated outside the boundaries of a United States mili-
tary base or a military base used primarily by the
United States.
182
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
apply with respect to stockpiles of defense articles
located in the Republic of Korea, Thailand, any
country that is a member of the North Atlantic
Treaty Organization, any country that is a major
non-NATO ally, or any other country the President
may designate. At least 15 days before designating
a country pursuant to the last clause of the preced-
ing sentence, the President shall notify the congres-
sional committees specified in section 634A(a) in ac-
cordance 
with 
the 
procedures 
applicable 
to
reprogramming notifications under that section.’’.
SEC. 3123. TRANSFER OF EXCESS DEFENSE ARTICLES.
(a) IN GENERAL.—Section 516 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2321j) is amended to read
as follows:
‘‘SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE AR-
TICLES.
‘‘(a) AUTHORIZATION.—The President is authorized
to transfer excess defense articles under this section to
countries for which receipt of such articles was justified
pursuant to the annual congressional presentation docu-
ments for military assistance programs submitted under
section 634 of this Act, or for which receipt of such arti-
183
cles was separately justified, for the fiscal year in which
the transfer is authorized.
‘‘(b) LIMITATIONS ON TRANSFERS.—The President
may transfer excess defense articles under this section
only if—
‘‘(1) such articles are drawn from existing
stocks of the Department of Defense;
‘‘(2) funds available to the Department of De-
fense for the procurement of defense equipment are
not expended in connection with the transfer;
‘‘(3) the transfer of such articles will not have
an adverse impact on the military readiness of the
United States;
‘‘(4) with respect to a proposed transfer of such
articles on a grant basis, such a transfer is pref-
erable to a transfer on a sales basis, after taking
into account the potential proceeds from, and likeli-
hood of, such sales, and the comparative foreign pol-
icy benefits that may accrue to the United States as
the result of a transfer on either a grant or sales
basis;
‘‘(5) the President first considers the effects of
the transfer of such articles on the national tech-
nology and industrial base, particularly the extent, if
any, to which the transfer reduces the opportunities
184
of entities in the national technology and industrial
base to sell new equipment to the countries to which
such articles are transferred; and
‘‘(6) the transfer of such articles is consistent
with the policy framework for the Eastern Medi-
terranean established under section 620C of this
Act.
‘‘(c) TERMS OF TRANSFERS.—Excess defense articles
may be transferred under this section without cost to the
recipient country.
‘‘(d) WAIVER OF REQUIREMENT FOR REIMBURSE-
MENT OF DEPARTMENT OF DEFENSE EXPENSES.—Sec-
tion 632(d) shall not apply with respect to transfers of
excess defense articles under this section.
‘‘(e) TRANSPORTATION AND RELATED COSTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), funds available to the Department of De-
fense may not be expended for crating, packing,
handling, and transportation of excess defense arti-
cles transferred under the authority of this section.
‘‘(2) EXCEPTION.—The President may provide
for the transportation of excess defense articles with-
out charge to a country for the costs of such trans-
portation if—
185
‘‘(A) it is determined that it is in the na-
tional interest of the United States to do so;
‘‘(B) the recipient is a developing country
receiving less than $10,000,000 of assistance
under chapter 5 of part II of this Act (relating
to international military education and train-
ing) or section 23 of the Arms Export Control
Act (22 U.S.C. 2763; relating to the Foreign
Military Financing program) in the fiscal year
in which the transportation is provided;
‘‘(C) the total weight of the transfer does
not exceed 25,000 pounds; and
‘‘(D) such transportation is accomplished
on a space available basis.
‘‘(f) ADVANCE NOTIFICATION
TO CONGRESS
FOR
TRANSFER OF CERTAIN EXCESS DEFENSE ARTICLES.—
‘‘(1) IN
GENERAL.—The President may not
transfer excess defense articles that are significant
military equipment (as defined in section 47(9) of
the Arms Export Control Act) or excess defense arti-
cles valued (in terms of original acquisition cost) at
$7,000,000 or more, under this section or under the
Arms Export Control Act (22 U.S.C. 2751 et seq.)
until 15 days after the date on which the President
has provided notice of the proposed transfer to the
186
congressional 
committees 
specified 
in 
section
634A(a) in accordance with procedures applicable to
reprogramming notifications under that section.
‘‘(2) CONTENTS.—Such notification shall in-
clude—
‘‘(A) a statement outlining the purposes
for which the article is being provided to the
country, including whether such article has
been previously provided to such country;
‘‘(B) an assessment of the impact of the
transfer on the military readiness of the United
States; and
‘‘(C) a statement describing the current
value of such article and the value of such arti-
cle at acquisition.
‘‘(g) AGGREGATE ANNUAL LIMITATION.—The aggre-
gate value of excess defense articles transferred to coun-
tries under this section in any fiscal year may not exceed
$350,000,000.
‘‘(h) 
CONGRESSIONAL
PRESENTATION
DOCU-
MENTS.—Documents described in subsection (a) justifying
the transfer of excess defense articles shall include an ex-
planation of the general purposes of providing excess de-
fense articles as well as a table which provides an aggre-
gate annual total of transfers of excess defense articles
187
in the preceding year by country in terms of offers and
actual deliveries and in terms of acquisition cost and cur-
rent value. Such table shall indicate whether such excess
defense articles were provided on a grant or sale basis.
‘‘(i) EXCESS COAST GUARD PROPERTY.—For pur-
poses of this section, the term ‘excess defense articles’
shall be deemed to include excess property of the Coast
Guard, and the term ‘Department of Defense’ shall be
deemed, with respect to such excess property, to include
the Coast Guard.’’.
(b) REPEALS.—The following provisions of law are
hereby repealed:
(1) Section 502A of the Foreign Assistance Act
of 1961 (22 U.S.C. 2303).
(2) Sections 517 through 520 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2321k through
2321n).
(3) Section 31(d) of the Arms Export Control
Act (22 U.S.C. 2771(d)).
CHAPTER 2—INTERNATIONAL MILITARY
EDUCATION AND TRAINING
SEC. 3141. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated $28,500,000
for each of the fiscal years 1996 and 1997 to carry out