I
105TH CONGRESS
1ST SESSION
H. R. 1759
To reform foreign assistance programs and to authorize appropriations for
foreign assistance progams for fiscal years 1998 and 1999, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 3, 1997
Mr. GILMAN introduced the following bill; which was referred to the
Committee on International Relations
A BILL
To reform foreign assistance programs and to authorize ap-
propriations for foreign assistance progams for fiscal
years 1998 and 1999, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—GENERAL PROVISIONS
SEC. 101. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Foreign Assistance Reform Act of 1997’’.
Sec. 401. Definition.
Sec. 402. Authorization of appropriations.
Sec. 403. Authority to withhold bilateral assistance and oppose multilateral de-
velopment assistance for major illicit drug producing countries,
drug-transit countries, and money laundering countries.
CHAPTER 2—NONPROLIFERATION, ANTITERRORISM, DEMINING, AND
RELATED PROGRAMS
Sec. 411. Nonproliferation, antiterrorism, demining, and related programs.
CHAPTER 3—FOREIGN MILITARY FINANCING PROGRAM
Sec. 421. Authorization of appropriations.
Sec. 422. Assistance for Israel.
Sec. 423. Assistance for Egypt.
Sec. 424. Authorization of assistance to facilitate transition to NATO member-
ship under NATO Participation Act of 1994.
Sec. 425. Loans for Greece and Turkey.
Sec. 426. Limitations on loans.
Sec. 427. Administrative expenses.
CHAPTER 4—INTERNATIONAL MILITARY EDUCATION AND TRAINING
Sec. 431. Authorization of appropriations.
Sec. 432. IMET eligibility for Panama and Haiti.
CHAPTER 5—TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN
COUNTRIES
Sec. 441. Authority to transfer naval vessels.
Sec. 442. Costs of transfers.
Sec. 443. Expiration of authority.
Sec. 444. Repair and refurbishment of vessels in United States shipyards.
CHAPTER 6—INDONESIA MILITARY ASSISTANCE ACCOUNTABILITY ACT
Sec. 451. Short title.
Sec. 452. Findings.
Sec. 453. Limitation on military assistance to the Government of Indonesia.
Sec. 454. United States military assistance and arms transfers defined.
CHAPTER 7—OTHER PROVISIONS
Sec. 461. Excess defense articles for certain European countries.
Sec. 462. Transfer of certain obsolete or surplus defense articles in the war re-
serve allies stockpile to the Republic of Korea.
Sec. 463. Additional requirements relating to stockpiling of defense articles for
foreign countries.
Sec. 464. Delivery of drawdown by commercial transportation services.
Sec. 465. Cash Flow Financing Notification.
Sec. 466. Multinational arms sales code of conduct.
TITLE V—ECONOMIC ASSISTANCE
CHAPTER 1—ECONOMIC SUPPORT ASSISTANCE
Sec. 501. Economic support fund.
Sec. 502. Assistance for Israel.
Sec. 503. Assistance for Egypt.
Sec. 504. International Fund for Ireland.
Sec. 505. Assistance for training of civilian personnel of the Ministry of De-
fense of the Government of Nicaragua.
Sec. 506. Availability of amounts for Cuban Liberty and Democratic Solidarity
(LIBERTAD) Act of 1996 and the Cuban Democracy Act of
1992.
CHAPTER 2—DEVELOPMENT ASSISTANCE
SUBCHAPTER A—DEVELOPMENT ASSISTANCE AUTHORITIES
Sec. 511. Authorization of appropriations.
Sec. 512. Child survival activities.
Sec. 513. Requirement on assistance for Russian Federation.
Sec. 514. Humanitarian assistance for Armenia and Azerbaijan.
Sec. 515. Agricultural development and research assistance.
Sec. 516. Activities and programs in Latin America and the Caribbean region
and the Asia and the Pacific region.
Sec. 517. Support for agricultural development assistance.
SUBCHAPTER B—OPERATING EXPENSES
Sec. 521. Operating expenses generally.
Sec. 522. Operating expenses of the Office of the Inspector General.
CHAPTER 3—URBAN AND ENVIRONMENTAL CREDIT PROGRAM
Sec. 531. Urban and environmental credit program.
CHAPTER 4—THE PEACE CORPS
Sec. 541. Authorization of appropriations.
Sec. 542. Activities of the Peace Corps in the former Soviet Union and Mongo-
lia.
Sec. 543. Amendments to the Peace Corps Act.
CHAPTER 5—INTERNATIONAL DISASTER ASSISTANCE
Sec. 551. Authority to provide reconstruction assistance.
Sec. 552. Authorizations of appropriations.
CHAPTER 6—DEBT RELIEF
Sec. 561. Debt restructuring for foreign assistance.
Sec. 562. Debt buybacks or sales for debt swaps.
CHAPTER 7—OTHER ASSISTANCE PROVISIONS
Sec. 571. Exemption from restrictions on assistance through nongovernmental
organizations.
Sec. 572. Funding requirements relating to United States private and voluntary
organizations.
Sec. 573. Documentation requested of private and voluntary organizations.
Sec. 574. Encouragement of free enterprise and private participation.
Sec. 575. Sense of the Congress relating to United States cooperatives and
credit unions.
Sec. 576. Food assistance to the Democratic People’s Republic of Korea.
Sec. 577. Withholding of assistance to countries that provide nuclear fuel to
Cuba.
TITLE VI—TRADE AND DEVELOPMENT AGENCY
Sec. 601. Authorization of appropriations.
TITLE VII—SPECIAL AUTHORITIES AND OTHER PROVISIONS
CHAPTER 1—SPECIAL AUTHORITIES
Sec. 701. Enhanced transfer authority.
Sec. 702. Authority to meet unanticipated contingencies.
Sec. 703. Special waiver authority.
Sec. 704. Termination of assistance.
Sec. 705. Local assistance to human rights groups in Cuba.
CHAPTER 2—REPEALS
Sec. 711. Repeal of obsolete provisions.
TITLE VIII—FUNDING LEVELS
Sec. 801. Authorization of appropriations for certain programs.
SEC. 102. DECLARATION OF POLICY.
The Congress declares the following:
(1) United States leadership overseas must be
maintained to support America’s vital national secu-
rity, economic, and humanitarian overseas interests.
(2) As part of this leadership, United States
foreign assistance programs are essential to support
America’s overseas interests.
(3) Following the end of the Cold War, foreign
assistance programs must be reformed to take ad-
vantage of the opportunities for the United States in
the 21st century.
TITLE 
II—CONSOLIDATION 
OF
CERTAIN INTERNATIONAL AF-
FAIRS AGENCIES
CHAPTER 1—GENERAL PROVISIONS
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘International Affairs
Agency Consolidation Act of 1997’’.
SEC. 202. DEFINITIONS.
The following terms have the following meanings for
the purposes of this title:
(1) The term ‘‘USAID’’ means the United
States Agency for International Development.
(2) The term ‘‘Federal agency’’ has the mean-
ing given to the term ‘‘agency’’ by section 551(1) of
title 5, United States Code.
(3) The term ‘‘function’’ means any duty, obli-
gation, power, authority, responsibility, right, privi-
lege, activity, or program.
CHAPTER 
2—UNITED 
STATES 
INTER-
NATIONAL DEVELOPMENT COOPERA-
TION AGENCY
Subchapter A—Abolition of United States
International Development Cooperation
Agency and Transfer of Functions to
United States Agency for International
Development
SEC. 211. ABOLITION OF UNITED STATES INTERNATIONAL
DEVELOPMENT COOPERATION AGENCY.
(a) IN GENERAL.—The United States International
Development Cooperation Agency is hereby abolished.
(b) CONFORMING
AMENDMENTS.—The following
shall cease to be effective:
(1) Reorganization Plan Numbered 2 of 1979
(5 U.S.C. App.).
(2) Sections 1–101 through 1–103, sections 1–
401 through 1–403, and such other provisions that
relate to the United States International Develop-
ment Cooperation Agency or the Director of such
Agency, of Executive Order 12163 (22 U.S.C. 2381
note; relating to administration of foreign assistance
and related functions).
(3) The International Development Cooperation
Agency Delegation of Authority Numbered 1 (44
Fed. Reg. 57521), except for section 1–6 of such
Delegation of Authority.
(4) Section 3 of Executive Order 12884 (58
Fed. Reg. 64099; relating to the delegation of func-
tions under the Freedom for Russia and Emerging
Eurasian Democracies and Open Markets Support
Act of 1992, the Foreign Assistance Act of 1961,
the Foreign Operations, Export Financing and Re-
lated Programs Appropriations Act, 1993, and sec-
tion 301 of title 3, United States Code).
(c) EFFECTIVE DATE.—This section shall take effect
6 months after the date of the enactment of this Act.
SEC. 212. TRANSFER OF FUNCTIONS TO UNITED STATES
AGENCY 
FOR 
INTERNATIONAL 
DEVELOP-
MENT.
(a) IN GENERAL.—There are transferred to the Ad-
ministrator of the United States Agency for International
Development all functions of the Director of United States
International Development Cooperation Agency and all
functions of such Agency and any officer or component
of such agency under any statute, reorganization plan, Ex-
ecutive order, or other provision of law before the effective
date of this title.
(b) EFFECTIVE DATE.—This section shall take effect
6 months after the date of the enactment of this Act.
SEC. 213. TRANSITION PROVISIONS.
(a) 
TRANSFER
OF
PERSONNEL, 
PROPERTY,
RECORDS, AND UNEXPENDED BALANCES.—
(1) PERSONNEL, PROPERTY, AND RECORDS.—
So much of the personnel, property, and records of
the United States International Development Co-
operation Agency as the Director of the Office of
Management and Budget shall determine shall be
transferred to the United States Agency for Inter-
national Development at such time or times as the
Director of the Office of Management and Budget
shall provide.
(2) UNEXPENDED BALANCES.—To the extent
provided in advance in appropriations Acts, so much
of the unexpended balances of appropriations, alloca-
tions, and other funds employed, used, held, avail-
able, or to be made available to the United States
International Development Cooperation Agency as
the Director of the Office of Management and Budg-
et shall determine shall be transferred to the United
States Agency for International Development at
such time or times as the Director of Office of Man-
agement and Budget shall provide, except that no
such unexpended balances transferred shall be used
for purposes other than those for which the appro-
priation was originally made.
(b) TERMINATING AGENCY AFFAIRS.—The Director
of the Office of Management and Budget shall provide for
terminating the affairs of the United States International
Development Cooperation Agency and for such further
measures and dispositions as such Director deems nec-
essary to accomplish the purposes of this subchapter.
Subchapter B—Continuation of United States
Agency for International Development
and Placement of Administrator of Agen-
cy under the Direction of the Secretary of
State
SEC. 221. CONTINUATION OF UNITED STATES AGENCY FOR
INTERNATIONAL DEVELOPMENT AND PLACE-
MENT 
OF 
ADMINISTRATOR 
OF 
AGENCY
UNDER THE DIRECTION OF THE SECRETARY
OF STATE.
(a) CONTINUATION OF USAID AS FEDERAL AGEN-
CY.—The United States Agency for International Develop-
ment, established in the Department of State pursuant to
the State Department Delegation of Authority Numbered
104 (26 Fed. Reg. 10608) and subsequently transferred
to the United States International Development Coopera-
tion Agency pursuant to the International Development
Cooperation Agency Delegation of Authority Numbered 1
(44 Fed. Reg. 57521), shall be continued in existence as
a Federal agency of the United States.
(b) PLACEMENT
OF ADMINISTRATOR
OF USAID
UNDER DIRECTION OF SECRETARY OF STATE.—
(1) IN
GENERAL.—The Administrator of the
United States Agency for International Develop-
ment, appointed pursuant to section 624(a) of the
Foreign Assistance Act of 1961 (22 U.S.C.
2384(a))—
(A) shall continue to head such Agency;
and
(B) shall be under the direction of the Sec-
retary of State.
(2) OTHER REQUIREMENTS.—Except to the ex-
tent inconsistent with other provisions of this Act,
the Administrator—
(A) shall continue to exercise all functions
that the Administrator exercised before the ef-
fective date of this Act; and
(B) shall exercise all functions transferred
to the Administrator pursuant to section 212.
(c) OTHER OFFICERS OF AID.—The other officers
of the United States Agency for International Develop-
ment, appointed pursuant to section 624(a) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2384(a)), shall con-
tinue to exercise such functions as the Administrator
deems appropriate.
Subchapter C—Conforming Amendments
SEC. 231. CONFORMING AMENDMENTS.
(a) TITLE
5, UNITED
STATES
CODE.—Section
7103(a)(2)(iv) of title 5, United States Code, is amended
by striking ‘‘the United States International Development
Cooperation Agency’’ and inserting ‘‘the United States
Agency for International Development’’.
(b) INSPECTOR GENERAL ACT OF 1978.—Section 8A
of the Inspector General Act of 1978 (5 U.S.C. App. 8A)
is amended—
(1) in subsection (a)—
(A) by striking paragraph (2);
(B) by striking ‘‘Agency for International
Development—’’ and all that follows through
‘‘shall supervise’’ and inserting ‘‘Agency for
International Development shall supervise’’; and
(C) by striking ‘‘; and’’ at the end and in-
serting a period;
(2) by striking subsection (c); and
(3) by striking subsection (f).
(c) INTERNATIONAL SECURITY AND DEVELOPMENT
COOPERATION ACT OF 1980.—Section 316 of the Inter-
national Security and Development Cooperation Act of
1980 (22 U.S.C. 2151 note) is amended—
(1) in subsection (a)—
(A) in the first sentence, by striking ‘‘Di-
rector of the United States International Devel-
opment Cooperation Agency’’ and inserting
‘‘Administrator of the United States Agency for
International Development’’; and
(B) in the second sentence, by striking
‘‘Director’’ and inserting ‘‘Administrator’’; and
(2) in subsection (b), by striking ‘‘Director’’
and inserting ‘‘Administrator’’.
(d) STATE DEPARTMENT BASIC AUTHORITIES ACT
OF 1956.—(1) Section 25(f) of the State Department
Basic Authorities Act of 1956 (22 U.S.C. 2697(f)) is
amended by striking ‘‘Director of the United States Inter-
national Development Cooperation Agency’’ and inserting
‘‘Administrator of the United States Agency for Inter-
national Development’’.
(2) Section 26(b) of such Act (22 U.S.C. 2698(b))
is amended by striking ‘‘Director of the United States
International Development Cooperation Agency’’ and in-
serting ‘‘Administrator of the United States Agency for
International Development’’.
(3) Section 32 of such Act (22 U.S.C. 2704) is
amended in the second sentence by striking ‘‘Director of
the United States International Development Cooperation
Agency’’ and inserting ‘‘Administrator of the United
States Agency for International Development’’.
(e) FOREIGN SERVICE ACT OF 1980.—(1) Section
202(a)(1) of the Foreign Service Act of 1980 (22 U.S.C.
3922(a)(1)) is amended by striking ‘‘Director of the Unit-
ed States International Development Cooperation Agency’’
and inserting ‘‘Administrator of the United States Agency
for International Development’’.
(2) Section 210 of such Act (22 U.S.C. 3930) is
amended in the second sentence by striking ‘‘United
States International Development Cooperation Agency’’
and inserting ‘‘United States Agency for International De-
velopment’’.
(3) Section 1003(a) of such Act (22 U.S.C. 4103(a))
is amended by striking ‘‘United States International De-
velopment Cooperation Agency’’ and inserting ‘‘United
States Agency for International Development’’.
(4) Section 1101(c) of such Act (22 U.S.C. 4131(c))
is amended by striking ‘‘United States International De-
velopment Cooperation Agency’’ and inserting ‘‘United
States Agency for International Development’’.
(f) INTERNAL REVENUE CODE OF 1986.—(1) Sec-
tion 170(m)(7) of the Internal Revenue Code of 1986, is
amended by striking ‘‘Director of the United States Inter-
national Development Cooperation Agency’’ and inserting
‘‘Administrator of the United States Agency for Inter-
national Development’’.
(2) Section 2055(g)(6) of the Internal Revenue Code
of 1986, is amended by striking ‘‘Director of the United
States International Development Cooperation Agency’’
and inserting ‘‘Administrator of the United States Agency
for International Development’’.
(g) TITLE 49, UNITED STATES CODE.—Section
40118(d) of title 49, United States Code, is amended by
striking ‘‘Director of the United States International De-
velopment Cooperation Agency’’ and inserting ‘‘Adminis-
trator of the United States Agency for International De-
velopment’’.
(h) EXPORT ADMINISTRATION ACT OF 1979.—Sec-
tion 6(g) of the Export Administration Act of 1979 (50
U.S.C. App. 2405(g)) is amended—
(1) in the third sentence, by striking ‘‘Director
of the United States International Development Co-
operation Agency’’ and inserting ‘‘Administrator of
the United States Agency for International Develop-
ment’’;
(2) in the fourth sentence, by striking ‘‘Direc-
tor’’ and inserting ‘‘Administrator’’; and
(3) in the sixth sentence, by striking ‘‘Director
of the United States International Development Co-
operation Agency’’ and inserting ‘‘Administrator of
the United States Agency for International Develop-
ment’’.
SEC. 232. OTHER REFERENCES.
Any reference in any statute, reorganization plan,
Executive order, regulation, agreement, determination, or
other official document or proceeding to—
(1) the Director of the United States Inter-
national Development Cooperation Agency or any
other officer or employee of the United States Inter-
national Development Cooperation Agency shall be
deemed to refer to the Administrator of the United
States Agency for International Development; and
(2) the United States International Develop-
ment Cooperation Agency shall be deemed to refer
to the United States Agency for International Devel-
opment.
SEC. 233. EFFECTIVE DATE.
This subchapter shall take effect 6 months after the
date of the enactment of this Act.
TITLE III—FOREIGN ASSISTANCE
REFORM
SEC. 301. GRADUATION FROM DEVELOPMENT ASSISTANCE.
Section 634 of the Foreign Assistance Act of 1961
(22 U.S.C. 2394) is amended to read as follows:
‘‘SEC. 634. CONGRESSIONAL PRESENTATION DOCUMENTS.
‘‘(a) REQUIREMENT FOR SUBMISSION.—As part of
the annual requests for enactment of authorizations and
appropriations for foreign assistance programs for each
fiscal year, the President shall prepare and transmit to
the Congress annual congressional presentation docu-
ments for the programs authorized under this Act and the
Arms Export Control Act (22 U.S.C. 2751 et seq.).
‘‘(b) MATERIALS TO BE INCLUDED.—The documents
submitted pursuant to subsection (a) shall include—
‘‘(1) the rationale and direct United States na-
tional interest for the allocation of assistance or con-
tributions to each country, regional, or centrally-
funded program, or organization, as the case may
be;
‘‘(2) a description of how each such program or
contribution supports the objectives of this Act or
the Arms Export Control Act, as the case may be;
‘‘(3) a description of planned country, regional,
or centrally-funded programs or contributions to
(3) operates on a not-for-profit basis with ap-
propriate tax-exempt status if the laws of the coun-
try grant such status to not-for-profit organizations;
(4) is voluntary in that it receives voluntary
contributions of money, time, or in-kind support
from the public; and
(5) is engaged or intends to be engaged in vol-
untary, charitable, development, or humanitarian as-
sistance activities.
(c) REPORT.—
(1) IN GENERAL.—Not later than September
30, 1997, the United States Agency for Inter-
national Development shall submit a report to the
Congress on the amount of its funding being chan-
neled through and private and voluntary organiza-
tions.
(2) ADDITIONAL REQUIREMENTS.—(A) The re-
port should use fiscal year 1995 as a baseline and
include an implementation plan for steadily increas-
ing the percentage of assistance channeled through
such organizations, consistent with the funding com-
mitment announced by Vice President Gore in
March 1995.
(B) The report should also indicate the propor-
tion of funds made available under the following pro-
visions and channeled through such organizations:
(i) Chapter 11 of part I of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2295 et seq.).
(ii) The Support for East European De-
mocracy (SEED) Act of 1989 (22 U.S.C. 5401
et seq.).
(iii) Chapter 4 of part II of the Foreign
Assistance Act of 1961 (22 U.S.C. 2346).
SEC. 303. MICRO- AND SMALL ENTERPRISE DEVELOPMENT
CREDITS.
Section 108 of the Foreign Assistance Act of 1961
(22 U.S.C. 2151f) is amended to read as follows:
‘‘SEC. 108. MICRO- AND SMALL ENTERPRISE DEVELOPMENT
CREDITS.
‘‘(a) FINDINGS AND POLICY.—The Congress finds
and declares that—
‘‘(1) the development of micro- and small enter-
prise, including cooperatives, is a vital factor in the
stable growth of developing countries and in the de-
velopment and stability of a free, open, and equi-
table international economic system;
‘‘(2) it is, therefore, in the best interests of the
United States to assist the development of the pri-
vate sector in developing countries and to engage the
United States private sector in that process;
‘‘(3) the support of private enterprise can be
served by programs providing credit, training, and
technical assistance for the benefit of micro- and
small enterprises; and
‘‘(4) programs that provide credit, training, and
technical assistance to private institutions can serve
as a valuable complement to grant assistance pro-
vided for the purpose of benefiting micro- and small
private enterprise.
‘‘(b) PROGRAM.—To carry out the policy set forth in
subsection (a), the President is authorized to provide as-
sistance to increase the availability of credit to micro- and
small enterprises lacking full access to credit, including
through—
‘‘(1) loans and guarantees to credit institutions
for the purpose of expanding the availability of cred-
it to micro- and small enterprises;
‘‘(2) training programs for lenders in order to
enable them to better meet the credit needs of
micro- and small entrepreneurs; and
‘‘(3) training programs for micro- and small en-
trepreneurs in order to enable them to make better
use of credit and to better manage their enterprises.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There is authorized to be
appropriated the following amounts for the following
purposes (in addition to amounts otherwise available
for such purposes):
‘‘(A)(i) $1,500,000 for each of the fiscal
years 1998 and 1999 to carry out subsection
(b)(1).
‘‘(ii) Funds authorized to be appropriated
under this subparagraph shall be made avail-
able for the subsidy cost, as defined in section
502(5) of the Federal Credit Reform Act of
1990, for activities under such subsection.
‘‘(B) $500,000 for each of the fiscal years
1998 and 1999 to carry out paragraphs (2) and
(3) of subsection (b).
‘‘(2) AVAILABILITY
OF
AMOUNTS.—Amounts
authorized to be appropriated under paragraph (1)
are authorized to remain available until expended.’’.
SEC. 304. MICROENTERPRISE DEVELOPMENT GRANT AS-
SISTANCE.
Chapter 1 of part I of the Foreign Assistance Act
of 1961 (22 U.S.C. 2151 et seq.) is amended by inserting
after section 108, as amended by this Act, the following
new section:
‘‘SEC. 108A. MICROENTERPRISE DEVELOPMENT GRANT AS-
SISTANCE.
‘‘(a) AUTHORIZATION.—(1) In carrying out this part,
the Administrator of the United States Agency for Inter-
national Development is authorized to provide grant as-
sistance for programs of credit and other assistance for
micro enterprises in developing countries.
‘‘(2) Assistance authorized under paragraph (1) shall
be provided through organizations that have a capacity to
develop and implement microenterprise programs, includ-
ing particularly—
‘‘(A) United States and indigenous private
and voluntary organizations;
‘‘(B) United States and indigenous credit
unions and cooperative organizations; or
‘‘(C) other indigenous governmental and
nongovernmental organizations.
‘‘(3) Approximately one-half of the credit assistance
authorized under paragraph (1) shall be used for poverty
lending programs, including the poverty lending portion
of mixed programs. Such programs—
‘‘(A) shall meet the needs of the very poor
members of society, particularly poor women; and
‘‘(B) should provide loans of $300 or less in
1995 United States dollars to such poor members of
society.
‘‘(4) The Administrator should continue support for
mechanisms that—
‘‘(A) provide technical support for field mis-
sions;
‘‘(B) strengthen the institutional development
of the intermediary organizations described in para-
graph (2); and
‘‘(C) share information relating to the provision
of assistance authorized under paragraph (1) be-
tween such field missions and intermediary organiza-
tions.
‘‘(b) MONITORING SYSTEM.—In order to maximize
the sustainable development impact of the assistance au-
thorized under subsection (a)(1), the Administrator shall,
in accordance with section 1115 of title 31, United States
Code (relating to performance plans), establish a monitor-
ing system that—
‘‘(1) establishes performance goals for such as-
sistance and expresses such goals in an objective and
quantifiable form, to the extent feasible;
‘‘(2) establishes performance indicators to be
used in measuring or assessing the achievement of
the goals and objectives of such assistance; and
‘‘(3) provides a basis for recommendations for
adjustments to such assistance to enhance the sus-
tainable development impact of such assistance, par-
ticularly the impact of such assistance on the very
poor, particularly poor women.’’.
SEC. 305. PRIVATE SECTOR ENTERPRISE FUNDS.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151
et seq.) is amended by inserting after section 601 the fol-
lowing new section:
‘‘SEC. 601A. PRIVATE SECTOR ENTERPRISE FUNDS.
‘‘(a) AUTHORITY.—(1) The President may provide
funds and support to Enterprise Funds designated in ac-
cordance with subsection (b) that are or have been estab-
lished for the purposes of promoting—
‘‘(A) development of the private sectors of eligi-
ble countries, including small businesses, the agricul-
tural sector, and joint ventures with United States
and host country participants; and
‘‘(B) policies and practices conducive to private
sector development in eligible countries;
on the same basis as funds and support may be provided
with respect to Enterprise Funds for Poland and Hungary
under the Support for East European Democracy (SEED)
Act of 1989 (22 U.S.C. 5401 et seq.).
‘‘(2) Funds may be made available under this section
notwithstanding any other provision of law, except sections
502B and 490 of this Act.
Act (relating to the Development Fund for Africa) shall
be available for such fiscal year to carry out this section
with respect to countries in Africa.’’.
SEC. 306. DEVELOPMENT CREDIT AUTHORITY.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151
et seq.) is amended by inserting after section 106 the fol-
lowing:
‘‘SEC. 107A. DEVELOPMENT CREDIT AUTHORITY.
‘‘(a) GENERAL AUTHORITY.—The President is au-
thorized to use credit authority (loans, loan guarantees,
and other investments involving the extension of credit)
to achieve any of the development purposes of this part
in cases where—
‘‘(1) the borrowers or activities are deemed suf-
ficiently creditworthy and do not otherwise have ac-
cess to such credit; and
‘‘(2) the use of credit authority would be appro-
priate to the achievement of such development pur-
poses.
‘‘(b) PRIORITY SECTOR POLICIES AND ACTIVITIES.—
‘‘(1) IN
GENERAL.—To the maximum extent
practicable, preference shall be given to the use of
credit authority to promote—
‘‘(A) micro- and small enterprise develop-
ment policies of section 108;
‘‘(B) sustainable urban and environmental
activities pursuant to the policy directives set
forth in this part; and
‘‘(C) other development activities that will
support and enhance grant-financed policy and
institutional reforms under this part.
‘‘(2) DEVELOPMENT CREDIT AUTHORITY.—The
credit authority described in paragraph (1) shall be
known as the ‘Development Credit Authority’.
‘‘(c) GENERAL AUTHORITY.—
‘‘(1) AUTHORITY.—Of the amounts made avail-
able to carry out this chapter, chapters 10 and 11
of this part, chapter 4 of part II of this Act, and
the Support for East European Democracy (SEED)
Act of 1989 for fiscal years 1998 and 1999, not
more than $13,000,000 for each such fiscal year
may be made available to carry out this section.
‘‘(2) LIMITATIONS.—(A) Funds made available
under paragraph (1) shall be used for activities in
the same geographic region for which such funds
were originally allocated.
‘‘(B) The President shall notify the congres-
sional committees specified in section 634A at least
fifteen days in advance of each transfer of funds
under paragraph (1) in accordance with procedures
applicable to reprogramming notifications under
such section.
‘‘(3) SUBSIDY COST.—Amounts made available
under paragraph (1) shall be made available for the
subsidy cost, as defined in section 502(5) of the
Federal Credit Reform Act of 1990, for activities
under this section.
‘‘(4) ADMINISTRATIVE EXPENSES.—
‘‘(A) AMOUNTS MADE AVAILABLE.—Of the
amounts made available under paragraph (1)
for a fiscal year, not more than $1,500,000
may be made available for administrative ex-
penses to carry out this section.
‘‘(B) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—In addition to amounts made available
under subparagraph (A), there are authorized
to be appropriated for administrative expenses
to carry out this section and section 221
$6,000,000 for each of the fiscal years 1998
and 1999.
‘‘(C) TRANSFER
AUTHORITY.—Amounts
made available under and subparagraph (A)
and amounts authorized to be appropriated
under subparagraph (B) may be transferred
and merged with amounts made available for
‘Operating Expenses of the Agency for Inter-
national Development’.
‘‘(5) AVAILABILITY.—Amounts made available
under paragraph (1) are authorized to remain avail-
able until expended.
‘‘(d) GENERAL PROVISIONS APPLICABLE TO DEVEL-
OPMENT CREDIT AUTHORITY.—
‘‘(1) POLICY
PROVISIONS.—In providing the
credit assistance authorized by this section, the
President should apply, as appropriate, the policy
provisions in this part applicable to development as-
sistance activities.
‘‘(2) DEFAULT
AND
PROCUREMENT
PROVI-
SIONS.—
‘‘(A) DEFAULT
PROVISION.—The provi-
sions of section 620(q) of this Act, or any com-
parable provisions of law, shall not be construed
to prohibit assistance to a country in the event
that a private sector recipient of assistance fur-
nished under this section is in default in its
payment to the United States for the period
specified in such section.
‘‘(B) PROCUREMENT
PROVISION.—Assist-
ance may be provided under this section with-
out regard to section 604(a) of this Act.
‘‘(3) TERMS AND CONDITIONS OF CREDIT AS-
SISTANCE.—(A) Assistance provided under this sec-
tion shall be offered on such terms and conditions,
including fees charged, as the President may deter-
mine.
‘‘(B) The principal amount of loans made or
guaranteed under this section in any fiscal year,
with respect to any single country or borrower, may
not exceed $100,000,000.
‘‘(C) No payment may be made under any
guarantee issued under this section for any loss aris-
ing out of fraud or misrepresentation for which the
party seeking payment is responsible.
‘‘(4) FULL FAITH AND CREDIT.—All guarantees
issued under this section shall constitute obligations,
in accordance with the terms of such guarantees, of
the United States of America and the full faith and
credit of the United States of America is hereby
pledged for the full payment and performance of
such obligations to the extent of the guarantee.
‘‘(5) CO-FINANCING AND RISK SHARING.—
‘‘(A) IN
GENERAL.—(i) Assistance pro-
vided under this section shall be in the form of
co-financing or risk sharing.
‘‘(ii) Credit assistance may not be provided
to a borrower under this section unless the Ad-
ministrator of the United States Agency for
International Development determines that
there are reasonable prospects of repayment by
such borrower.
‘‘(B) ADDITIONAL
REQUIREMENT.—The
investment or risk of the United States in any
one development activity may not exceed 80
percent of the total outstanding investment or
risk.
‘‘(6) ELIGIBLE BORROWERS.—
‘‘(A) IN GENERAL.—In order to be eligible
to receive credit assistance under this section, a
borrower shall be sufficiently credit worthy so
that the estimated costs (as defined in section
502 of the Federal Credit Reform Act of 1990)
of the proposed credit assistance for the bor-
rower does not exceed 30 percent of the prin-
cipal amount of credit assistance to be received.
‘‘(B) ADDITIONAL REQUIREMENT.—(i) In
addition, with respect to the eligibility of for-
eign governments as an eligible borrowers under
this section, the Administrator of the United
States Agency for International Development
shall make a determination that the additional
debt of the government will not exceed the debt
repayment capacity of the government.
‘‘(ii) In making the determination under
clause (i), the Administrator shall consult, as
appropriate, with international financial institu-
tions and other institutions or agencies that as-
sess debt service capacity.
‘‘(7) ASSESSMENT OF CREDIT RISK.—(A) The
Administrator of the United States Agency for
International Development shall use the Interagency
Country Risk Assessment System (ICRAS) and the
methodology approved by the Office of Management
and Budget to assess the cost of risk credit assist-
ance provided under this section to foreign govern-
ments.
‘‘(B) With respect to the provision of credit to
nongovernmental organizations, the Administrator—
‘‘(i) shall consult with appropriate private
sector institutions, including the two largest
United States private sector debt rating agen-
cies, prior to establishing the risk assessment
standards and methodologies to be used; and
‘‘(ii) shall periodically consult with such in-
stitutions in reviewing the performance of such
standards and methodologies.
‘‘(C) In addition, if the anticipated share of fi-
nancing attributable to public sector owned or con-
trolled entities, including the United States Agency
for International Development, exceeds 49 percent,
the Administrator shall determine the cost (as de-
fined in section 502(5) of the Federal Credit Reform
Act of 1990) of such assistance by using the cost
and risk assessment determinations of the private
sector co-financing entities.
‘‘(8) USE
OF
UNITED
STATES
TECHNOLOGY,
FIRMS, AND EQUIPMENT.—Activities financed under
this section shall, to the maximum extent prac-
ticable, use or employ United States technology,
firms, and equipment.’’.
SEC. 307. FOREIGN GOVERNMENT PARKING FINES.
(a) IN GENERAL.—Chapter 1 of part III of the For-
eign Assistance Act of 1961 (22 U.S.C. 2351 et seq.), as
amended by this Act, is further amended by adding at the
end the following new section:
‘‘SEC. 620K. FOREIGN GOVERNMENT PARKING FINES.
‘‘(a) IN GENERAL.—An amount equivalent to 110
percent of the total unpaid fully adjudicated parking fines
and penalties owed to the District of Columbia, Virginia,
Maryland, New York, and New York City by the govern-
ment of a foreign country as of the end of a fiscal year,
as certified and transmitted to the President by the chief
executive officer of each State, City, or District, shall be
withheld from obligation for such country out of funds
available in the next fiscal year to carry out part I of this
Act, until the requirement of subsection (b) is satisfied.
‘‘(b) REQUIREMENT.—The requirement of this sub-
section is satisfied when the Secretary of State determines
and certifies to the appropriate congressional committees
that such fines and penalties are fully paid to the govern-
ments of the District of Columbia, Virginia, Maryland,
and New York.
‘‘(c) APPROPRIATE CONGRESSIONAL COMMITTEES
DEFINED.—For purposes of this section, the term ‘appro-
priate congressional committees’ means the Committee on
International Relations and the Committee on Appropria-
tions of the House of Representatives and the Committee
on Foreign Relations and the Committee on Appropria-
tions of the Senate.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply with respect to fines certified
as of the end of fiscal year 1998 or any fiscal year there-
after.
(c) TECHNICAL AMENDMENT.—The second section
620G of the Foreign Assistance Act of 1961, as added
by section 149 of Public Law 104–164 (110 Stat. 1436),
is amended—
(1) by redesignating such section as section
620J of such Act; and
(2) by inserting such section after section 620I
of such Act.
SEC. 308. WITHHOLDING UNITED STATES ASSISTANCE TO
COUNTRIES THAT AID THE GOVERNMENT OF
CUBA.
(a) IN GENERAL.—Except as provided in subsection
(b), not later than 180 days after the date of the enact-
ment of this Act, the President shall withhold assistance
under the Foreign Assistance Act of 1961 to any foreign
government providing economic, development, or security
assistance for, or engaging in nonmarket based trade with
the Government of Cuba.
(b) WAIVER.—The President may waive the provi-
sions of subsection (a) if the President certifies to the ap-
propriate congressional committees that the provision of
United States assistance is important to the national secu-
rity of the United States.
(c) NONMARKET BASED TRADE DEFINED.—For the
purpose of this section, the term ‘‘nonmarket based trade’’
means exports, imports, exchanges, or other arrangements
that are provided for goods and services on terms more
favorable than those generally available in applicable mar-
kets or for comparable commodities, including—
(1) exports to the Cuban Government on terms
that involve a grant, concessional price, guaranty,
insurance, or subsidy;
(2) imports from the Cuban Government at
preferential tariff rates;
(3) exchange arrangements that include ad-
vance delivery of commodities, arrangements in
which the Cuban Government is not held account-
able for unfulfilled exchange contracts, and arrange-
ments under which Cuba does not pay appropriate
transportation, insurance, or finance costs; and
(4) the exchange, reduction, or forgiveness of
debt of the Cuban Government in exchange for a
grant by the Cuban Government of an equity inter-
est in a property, investment, or operation of the
Cuban Government or of a Cuban national.
TITLE IV—DEFENSE AND
SECURITY ASSISTANCE
CHAPTER 1—NARCOTICS CONTROL
ASSISTANCE
SEC. 401. DEFINITION.
(a) IN GENERAL.—Section 481(e)(4) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2291(e)(4)) is amend-
ed—
(1) in subparagraph (A)(ii), inserting ‘‘or under
chapter 5 of part II’’ after ‘‘(including chapter 4 of
part II)’’; and
(2) in subparagraph (B), by inserting before
the semicolon at the end the following: ‘‘, other than
sales or financing provided for narcotics-related pur-
poses following notification in accordance with proce-
dures applicable to reprogramming notifications
under section 634A of this Act’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply with respect to assistance pro-
vided on or after the date of the enactment of this Act.
SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
Section 482(a)(1) of the Foreign Assistance Act of
1961 (22 U.S.C. 2291a(a)(1)) is amended by striking
‘‘$147,783,000 for fiscal year 1993 and $171,500,000 for
fiscal year 1994’’ and inserting ‘‘$230,000,000 for each
of the fiscal years 1998 and 1999’’.
SEC. 403. AUTHORITY TO WITHHOLD BILATERAL ASSIST-
ANCE AND OPPOSE MULTILATERAL DEVEL-
OPMENT ASSISTANCE FOR MAJOR ILLICIT
DRUG PRODUCING COUNTRIES, DRUG-TRAN-
SIT COUNTRIES, AND MONEY LAUNDERING
COUNTRIES.
(a) IN GENERAL.—Section 490 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2291j) is amended to read
as follows:
‘‘SEC. 490. AUTHORITY TO WITHHOLD BILATERAL ASSIST-
ANCE AND OPPOSE MULTILATERAL DEVEL-
OPMENT ASSISTANCE FOR MAJOR ILLICIT
DRUG PRODUCING COUNTRIES, DRUG-TRAN-
SIT COUNTRIES, AND MONEY LAUNDERING
COUNTRIES.
‘‘(a) IN GENERAL.—For every country identified in
the report under section 489(a)(3), the President shall,
on or after March 1, 1998, and March 1 of each succeed-
ing year, to the extent considered necessary by the Presi-
dent to achieve the purposes of this chapter, take one or
more of the following actions:
‘‘(1) Withhold from obligation and expenditure
any or all United States assistance allocated each
fiscal year in the report required by section 653 for
each such country.
‘‘(2) Instruct the Secretary of the Treasury to
instruct the United States Executive Director of
each multilateral development bank to vote, on and
after March 1 of each year, against any loan or
other utilization of the funds of their respective in-
stitution to or for any such country.
‘‘(b) CONSIDERATIONS.—In determining whether or
not take one or more actions described in subsection (a),
the President shall consider the extent to which—
‘‘(1) the country has—
‘‘(A) met the goals and objectives of the
United Nations Convention Against Illicit Traf-
fic in Narcotic Drugs and Psychotropic Sub-
stances, including action on such issues as illicit
cultivation, production, distribution, sale, trans-
port and financing, and money laundering,
asset seizure, extradition, mutual legal assist-
ance, law enforcement and transit cooperation,
precursor chemical control, and demand reduc-
tion;
‘‘(B) accomplished the goals described in
an applicable bilateral narcotics agreement with
the United States or a multilateral agreement;
‘‘(C) reached agreement, or is negotiating
in good faith to reach agreement, to ensure that
banks and other financial institutions of the
country maintain adequate records of large
United States currency transactions;
‘‘(D) reached agreement, or is negotiating
in good faith to reach agreement, to establish a
mechanism for exchanging adequate records on
international currency transactions in connec-
tion with narcotics investigations and proceed-
ings; and
‘‘(E) taken legal and law enforcement
measures to prevent and punish public corrup-
tion, especially by senior government officials,
that facilitates the production, processing, or
shipment of narcotic and psychotropic drugs
and other controlled substances, or that dis-
courages the investigation or prosecution of
such acts; and
‘‘(2) such actions will—
‘‘(A) promote the purposes of this chapter;
and
‘‘(B) affect other United States national
interests.
‘‘(c) CONSULTATIONS WITH THE CONGRESS.—
‘‘(1) CONSULTATIONS.—The President shall
consult with the Congress on the status of counter-
narcotics cooperation between the United States and
each major illicit drug producing country, major
drug-transit country, or major money laundering
country.
‘‘(2) PURPOSE.—
‘‘(A) IN
GENERAL.—The purpose of the
consultations under paragraph (1) shall be to
facilitate improved discussion and understand-
ing between the Congress and the President on
United States counter-narcotics goals and ob-
jectives with regard to the countries described
in paragraph (1), including the strategy for
achieving such goals and objectives.
‘‘(B) REGULAR AND SPECIAL CONSULTA-
TIONS.—In order to carry out subparagraph
(A), the President (or senior officials designated
by the President who are responsible for inter-
national narcotics programs and policies) shall
meet with Members of Congress—
‘‘(i) on a quarterly basis for discus-
sions and consultations; and
‘‘(ii) whenever time-sensitive issues
arise.
‘‘(d) DEFINITION.—For purposes of this section, the
term ‘multilateral development bank’ means the Inter-
national Bank for Reconstruction and Development, the
International Development Association, the Inter-Amer-
ican Development Bank, the Asian Development Bank,
the African Development Bank, and the European Bank
for Reconstruction and Development.’’.
(b) 
CONFORMING
AMENDMENTS.—(1) 
Section
481(e)(8) of such Act (22 U.S.C. 2291(e)(8)) is amended
by striking ‘‘Committee on Foreign Affairs’’ and inserting
‘‘Committee on International Relations’’.
(2) Section 485(b) of such Act (22 U.S.C. 2291d(b))
is amended by striking ‘‘Committee on Foreign Affairs’’
and inserting ‘‘Committee on International Relations’’.
(3) Section 488(a)(3) of such Act (22 U.S.C.
2291g(a)(3)) is amended by striking ‘‘Committee on For-
eign Affairs’’ and inserting ‘‘Committee on International
Relations’’.
(4) Section 489(a) of such Act (22 U.S.C. 2291h(a))
is amended—
(A) in paragraph (3)(A), by striking ‘‘as deter-
mined under section 490(h)’’; and
(B) in the matter preceding subparagraph (A)
of paragraph (7), by striking ‘‘paragraph (3)(D)’’
and inserting ‘‘paragraph (3)(C)’’.
CHAPTER 
2—NONPROLIFERATION,
ANTITERRORISM, DEMINING, AND RE-
LATED PROGRAMS
SEC. 
411. 
NONPROLIFERATION, 
ANTITERRORISM,
DEMINING, AND RELATED PROGRAMS.
(a) IN GENERAL.—Part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2301 et seq.) is amended by add-
ing at the end the following:
‘‘CHAPTER 
9—NONPROLIFERATION,
ANTITERRORISM, DEMINING AND RE-
LATED PROGRAMS
‘‘SEC. 581. NONPROLIFERATION AND DISARMAMENT FUND.
‘‘(a) ESTABLISHMENT
OF FUND.—The President
shall establish a Nonproliferation and Disarmament Fund,
which may be used notwithstanding any other provision
of law, to promote bilateral and multilateral nonprolifera-
tion and disarmament activities—
‘‘(1) to halt the proliferation of nuclear, biologi-
cal, and chemical weapons, their delivery systems,
related technologies, and other weapons;
‘‘(2) to dismantle and destroy nuclear, biologi-
cal, and chemical weapons, their delivery systems,
and conventional weapons;
‘‘(3) to prevent the diversion of weapons-related
scientific and technical expertise; and
‘‘(4) to support science and technology centers
in Russia and the Ukraine.
‘‘(b) 
PROHIBITED
ACTIVITIES.—Amounts 
made
available to carry out subsection (a) may not be used to
implement United States obligations pursuant to bilateral
or multilateral arm control treaties or nonproliferation ac-
cords, including the payment of salaries and expenses.
‘‘(c) ADDITIONAL REQUIREMENTS.—
‘‘(1) NOTIFICATION.—Amounts made available
to carry out subsection (a) may be provided only if
the congressional committees specified in section
634A of this Act are notified at least fifteen days
before providing funds under such subsection in ac-
cordance with procedures applicable to reprogram-
ming notifications under such section.
‘‘(2) ASSISTANCE
FOR
THE
INDEPENDENT
STATES OF THE FORMER SOVIET UNION AND INTER-
NATIONAL
ORGANIZATIONS.—Amounts made avail-
able to carry out subsection (a) may only be pro-
vided for the independent states of the former Soviet
Union and international organizations if the Sec-
retary of State—
‘‘(A) determines it is in the national inter-
est of the United States to do so; and
‘‘(B) includes such determination in the
notification described in paragraph (1).
‘‘(d) AVAILABILITY OF AMOUNTS.—
‘‘(1) IN
GENERAL.—Of the amounts made
available to carry out this chapter for fiscal years
1998 and 1999—
‘‘(A) not less than $15,000,000 for each
such fiscal year may be made available to carry
out subsection (a); and
‘‘(B) not more than $5,000,000 of the
amount made available under subparagraph (A)
for fiscal year 1998, and not more than
$3,000,000 of such amount made available in
fiscal year 1999, may be used to support export
control programs.
‘‘(2) AVAILABILITY.—Amounts made available
under paragraph (1) are authorized to remain avail-
able until expended.
‘‘SEC. 582. ASSISTANCE FOR ANTITERRORISM.
‘‘Amounts made available to carry out this chapter
for fiscal years 1998 and 1999 may be made available to
carry out chapter 8 of part II of this Act.
‘‘SEC. 583. ASSISTANCE FOR DEMINING.
‘‘The President is authorized to provide assistance for
demining activities, notwithstanding any other provision
of law, including—
‘‘(1) to enhance the ability of countries, inter-
national organizations, and nongovernmental organi-
zations to detect and clear landmines; and
‘‘(2) to educate affected populations about the
dangers of landmines.
‘‘SEC. 584. ASSISTANCE FOR RELATED PROGRAMS.
‘‘(a) IN GENERAL.—Amounts made available to carry
out this chapter for fiscal years 1998 and 1999 may be
made available to carry out section 301 of this Act for
voluntary contributions to the International Atomic En-
ergy Agency (IAEA) and the Korean Peninsula Energy
Development Organization (KEDO) and to programs ad-
ministered by such organizations.
‘‘(b) LIMITATION.—Of the amounts made available
under subsection (a) for fiscal years 1998 and 1999, not
more than $30,000,000 may be made available for each
fiscal year to KEDO for the administrative expenses and
heavy fuel oil costs associated with implementation of the
Agreed Framework.
‘‘SEC. 585. DEFINITIONS.
‘‘As used in this chapter—
‘‘(1) AGREED FRAMEWORK.—The term ‘Agreed
Framework’ means the documents agreed to between
the United States and the Democratic People’s Re-
public of Korea on October 21, 1994, regarding
elimination of the nuclear weapons program of the
Democratic People’s Republic of Korea and the pro-
vision of certain assistance to that country.
‘‘(2) INDEPENDENT STATES OF THE FORMER
SOVIET
UNION.—The term ‘independent states of
the former Soviet Union’ has the meaning given
such term in section 3 of the Freedom for Russia
and Emerging Eurasian Democracies and Open
Markets Support Act of 1992 (22 U.S.C. 5801).
‘‘SEC. 586. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated $110,000,000 for fiscal
year 1998 and $111,000,000 for fiscal year 1999, in addi-
tion to amounts otherwise available for such purposes, to
carry out the purpose of this chapter.
‘‘(b) ADMINISTRATIVE AUTHORITIES.—Any agency
of the United States Government may utilize such funds
in accordance with authority granted under this Act or
under authority governing the activities of that agency.
‘‘(c) DESIGNATION
OF ACCOUNT.—Appropriations
pursuant to subsection (a) may be referred to as the ‘Non-
proliferation, Antiterrorism, Demining and Related Pro-
grams Account’ or ‘NADR Account’.’’.
(b) REFERENCE IN OTHER PROVISIONS OF LAW.—
A reference in any other provision of law to section 504
of the Freedom for Russia and Emerging Eurasian De-
mocracies and Open Markets Support Act of 1992 (22
U.S.C. 5854) shall be deemed to include a reference to
chapter 9 of part II of the Foreign Assistance Act of 1961,
as added by subsection (a).
(c) CONFORMING AMENDMENTS.—(1) Section 504 of
the Freedom for Russia and Emerging Eurasian Democ-
racies and Open Markets Support Act of 1992 (22 U.S.C.
5854) is hereby repealed.
(2) The table of contents of such Act is amended by
striking the item relating to section 504.
CHAPTER 3—FOREIGN MILITARY
FINANCING PROGRAM
SEC. 421. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Presi-
dent for grant assistance 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) $3,318,000,000 for fiscal year 1998; and
(2) $3,274,250,000 for fiscal year 1999.
SEC. 422. ASSISTANCE FOR ISRAEL.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under section 23 of the Arms Export Control Act (22
U.S.C. 2763; relating to the ‘‘Foreign Military Financing
Program’’), 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.
(2) EXPEDITED DISBURSEMENT.—Such assist-
ance shall be disbursed—
(A) with respect to fiscal year 1998, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Fi-
nancing, and Related Programs Appropriations
Act, 1998, or by October 31, 1997, whichever
is later; and
(B) with respect to fiscal year 1999, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Fi-
nancing, and Related Programs Appropriations
Act, 1999, or by October 31, 1998, whichever
is later.
(3) ADVANCED WEAPONS SYSTEMS.—To the ex-
tent that the Government of Israel requests that
funds be used for such purposes, funds described in
subsection (a) shall, as agreed by the Government of
Israel and the Government of the United States, be
available for advanced weapons systems, of which
not less than $475,000,000 for each fiscal year shall
be available only for procurement in Israel of de-
fense articles and defense services, including re-
search and development.
SEC. 423. ASSISTANCE FOR EGYPT.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under section 23 of the Arms Export Control Act (22
U.S.C. 2763; relating to the ‘‘Foreign Military Financing
Program’’ account), 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.
SEC. 424. AUTHORIZATION OF ASSISTANCE TO FACILITATE
TRANSITION TO NATO MEMBERSHIP UNDER
NATO PARTICIPATION ACT OF 1994.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under section 23 of the Arms Export Control Act (22
U.S.C. 2763; relating to the ‘‘Foreign Military Financing
Program’’), not less than $50,900,000 for each such fiscal
year shall be made available for the program established
under section 203(a) of the NATO Participation Act of
1994 (title II of Public Law 103–447; 22 U.S.C. 1928
note).
(b) TERMS OF ASSISTANCE.—The assistance pro-
vided under subsection (a) may be provided on a grant
basis, and may also be made available for the subsidy cost,
as defined in section 502(5) of the Federal Credit Reform
Act of 1990, of direct loans to countries eligible for assist-
ance under the program established under section 203(a)
of the NATO Participation Act of 1994 (title II of Public
Law 103–447; 22 U.S.C. 1928 note).
SEC. 425. LOANS FOR GREECE AND TURKEY.
Of the amounts made available for fiscal year 1998
under section 23 of the Arms Export Control Act (22
U.S.C. 2763)—
(1) not more than $12,850,000 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 $33,150,000 shall be made
available for such subsidy cost of direct loans for
Turkey.
SEC. 426. LIMITATIONS ON LOANS.
Of the amounts made available for fiscal year 1999
under section 23 of the Arms Export Control (22 U.S.C.
2763) for the subsidy cost, as defined in section 502(5)
of the Federal Credit Reform Act of 1990, of direct loans,
no such amounts shall be made available to any country
which has an Inter-Agency Country Risk Assessment Sys-
tems (ICRAS) rating of less than grade C¥.
SEC. 427. ADMINISTRATIVE EXPENSES.
Of the amounts made available for fiscal years 1998
and 1999 for assistance under section 23 of the Arms Ex-
port Control Act (22 U.S.C. 2763; relating to the ‘‘For-
eign Military Financing Program’’), not more than
$23,250,000 for each of the fiscal years 1998 and 1999
may be made available for necessary expenses for the gen-
eral costs of administration of military assistance and
sales, including expenses incurred in purchasing passenger
motor vehicles for replacement for use outside the United
States.
CHAPTER 4—INTERNATIONAL MILITARY
EDUCATION AND TRAINING
SEC. 431. AUTHORIZATION OF APPROPRIATIONS.
Section 542 of the Foreign Assistance Act of 1961
(22 U.S.C. 2347a) is amended by striking ‘‘$56,221,000
for the fiscal year 1986 and $56,221,000 for the fiscal
year 1987’’ and inserting ‘‘$50,000,000 for each of the
fiscal years 1998 and 1999’’.
SEC. 432. IMET ELIGIBILITY FOR PANAMA AND HAITI.
Notwithstanding section 660(c) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2420(c)), assistance
under chapter 5 of part II of such Act (22 U.S.C. 2347)
may be provided to Panama and Haiti for each of the fis-
cal years 1998 and 1999.
CHAPTER 5—TRANSFER OF NAVAL VES-
SELS TO CERTAIN FOREIGN COUN-
TRIES
SEC. 441. AUTHORITY TO TRANSFER NAVAL VESSELS.
(a) BRAZIL.—The Secretary of the Navy is author-
ized to transfer to the Government of Brazil the
‘‘HUNLEY’’ class submarine tender HOLLAND (AS 32).
(b) CHILE.—The Secretary of the Navy is authorized
to transfer to the Government of Chile the ‘‘KAISER’’
class oiler ISHERWOOD (T–AO 191).
(c) EGYPT.—The Secretary of the Navy is authorized
to transfer to the Government of Egypt the ‘‘KNOX’’
class frigates PAUL (FF 1080), MILLER (FF 1091),
JESSE L. BROWN (FFT 1089), and MOINESTER
(FFT 1097), and the ‘‘OLIVER HAZARD PERRY’’
class frigates FAHRION (FFG 22) and LEWIS B.
PULLER (FFG 23).
(d) ISRAEL.—The Secretary of the Navy is author-
ized to transfer to the Government of Israel the ‘‘NEW-
PORT’’ class tank landing ship PEORIA (LST 1183).
(e) MALAYSIA.—The Secretary of the Navy is author-
ized to transfer to the Government of Malaysia the
‘‘NEWPORT’’ class tank landing ship BARBOUR
COUNTY (LST 1195).
(f) MEXICO.—The Secretary of the Navy is author-
ized to transfer to the Government of Mexico the
‘‘KNOX’’ class frigate ROARK (FF 1053).
(g) TAIWAN.—The Secretary of the Navy is author-
ized to transfer to the Taipei Economic and Cultural Rep-
resentative Office in the United States (which is the Tai-
wan instrumentality designated pursuant to section 10(a)
of the Taiwan Relations Act) the ‘‘KNOX’’ class frigates
WHIPPLE (FF 1062) and DOWNES (FF 1070).
(h) THAILAND.—The Secretary of the Navy is au-
thorized to transfer to the Government of Thailand the
‘‘NEWPORT’’ class tank landing ship SCHENECTADY
(LST 1185).
(i) FORM OF TRANSFERS.—Each transfer authorized
by this section shall be on a sales basis under section 21
of the Arms Export Control Act (22 U.S.C. 2761; relating
to the foreign military sales program).
SEC. 442. COSTS OF TRANSFERS.
Any expense of the United States in connection with
a transfer authorized by this chapter shall be charged to
the recipient.
SEC. 443. EXPIRATION OF AUTHORITY.
The authority granted by section 451 shall expire at
the end of the 2-year period beginning on the date of the
enactment of this Act.
SEC. 444. REPAIR AND REFURBISHMENT OF VESSELS IN
UNITED STATES SHIPYARDS.
The Secretary of the Navy shall require, to the maxi-
mum extent possible, as a condition of a transfer of a ves-
sel under this chapter, that the country to which the vessel
is transferred have such repair or refurbishment of the
vessel as is needed, before the vessel joins the naval forces
of that country, performed at a shipyard located in the
United States, including a United States Navy shipyard.
CHAPTER 6—INDONESIA MILITARY
ASSISTANCE ACCOUNTABILITY ACT
SEC. 451. SHORT TITLE.
This chapter may be cited as the ‘‘Indonesia Military
Assistance Accountability Act’’.
SEC. 452. FINDINGS.
The Congress finds the following:
(1)(A) Despite a surface adherence to demo-
cratic forms, the Indonesian political system remains
strongly authoritarian.
(B) The government is dominated by an elite
comprising President Soeharto (now in his sixth 5-
year term), his close associates, and the military.
(C) The government requires allegiance to a
state ideology known as ‘‘Pancasila’’, which stresses
consultation and consensus, but is also used to limit
dissent, to enforce social and political cohesion, and
to restrict the development of opposition elements.
(2) The Government of Indonesia recognizes
only one official trade union, has refused to register
independent trade unions such as the Indonesian
Prosperity Trade Union (SBSI), has arrested
Muchtar Pakpahan, the General Chairman of the
SBSI, on charges of subversion, and other labor ac-
tivists, and has closed the offices and confiscated
materials of the SBSI.
(3) Civil society organizations in Indonesia,
such as environmental organizations, election-mon-
itoring organizations, legal aid organizations, stu-
dent organizations, trade union organizations, and
community organizations, have been harassed by the
Government of Indonesia through such means as de-
tentions, interrogations, denial of permission for
meetings, banning of publications, repeated orders to
report to security forces or judicial courts, and ille-
gal seizure of documents.
(4)(A) The armed forces of Indonesia continue
to carry out torture and other severe violations of
human rights in East Timor, Irian Jaya, and other
parts of Indonesia, to detain and imprison East
Timorese and others for nonviolent expression of po-
litical views, and to maintain unjustifiably high
troop levels in East Timor.
(B) Indonesian civil authorities must improve
their human rights performance in East Timor,
Irian Jaya, and elsewhere in Indonesia, and aggres-
sively prosecute violations.
(5) The Nobel Prize Committee awarded the
1996 Nobel Peace Prize to Bishop Carlos Felipe
Ximenes Belo and Jose Ramos Horta for their tire-
less efforts to find a just and peaceful solution to
the conflict in East Timor.
(6) In 1992, the Congress suspended the inter-
national military and education training (IMET)
program for Indonesia in response to a November
12, 1991, shooting incident in East Timor by Indo-
nesian security forces against peaceful Timorese
demonstrators in which no progress has been made
in accounting for the missing persons either in that
incident or others who disappeared in 1995–96.
(7) On August 1, 1996, then Secretary of State
Warren Christopher stated in testimony before the
Committee on Foreign Relations of the Senate, ‘‘I
think there’s a strong interest in seeing an orderly
transition of power there [in Indonesia] that will rec-
ognize the pluralism that should exist in a country
of that magnitude and importance.’’.
(8) The United States has important economic,
commercial, and security interests in Indonesia be-
cause of its growing economy and markets and its
strategic location astride a number of key inter-
national straits which will only be strengthened by
democratic development in Indonesia and a policy
which promotes political pluralism and respect for
universal human rights.
SEC. 453. LIMITATION ON MILITARY ASSISTANCE TO THE
GOVERNMENT OF INDONESIA.
(a) IN GENERAL.—The United States shall not pro-
vide military assistance and arms transfers programs for
a fiscal year to the Government of Indonesia unless the
President determines and certifies to the Congress for that
fiscal year that the Government of Indonesia meets the
following requirements:
(1) DOMESTIC MONITORING OF ELECTIONS.—
(A) The Government of Indonesia provides official
accreditation to independent election-monitoring or-
ganizations, including the Independent Election
Monitoring Committee (KIPP), to observe national
elections without interference by personnel of the
Government or of the armed forces.
(B) In addition, such organizations are allowed
to assess such elections and to publicize or otherwise
disseminate the assessments throughout Indonesia.
(2) PROTECTION OF NONGOVERNMENTAL ORGA-
NIZATIONS.—The police or military of Indonesia do
not confiscate materials from or otherwise engage in
illegal raids on the offices or homes of members of
both domestic or international nongovernmental or-
ganizations, including election-monitoring organiza-
tions, legal aid organizations, student organizations,
trade union organizations, community organizations,
environmental organizations, and religious organiza-
tions.
(3) ACCOUNTABILITY
FOR
ATTACK
ON
PDI
HEADQUARTERS.—As recommended by the Govern-
ment of Indonesia’s National Human Rights Com-
mission, the Government of Indonesia has inves-
tigated the attack on the headquarters of the Demo-
cratic Party of Indonesia (PDI) on July 27, 1996,
prosecuted individuals who planned and carried out
the attack, and made public the postmortem exam-
ination of the five individuals killed in the attack.
(4) RESOLUTION
OF
CONFLICT
IN
EAST
TIMOR.—
(A) ESTABLISHMENT OF DIALOGUE.—The
Government of Indonesia is doing everything
possible to enter into a process of dialogue,
under the auspices of the United Nations, with
Portugal and East Timorese leaders of various
viewpoints to discuss ideas toward a resolution
of the conflict in East Timor and the political
status of East Timor.
(B) REDUCTION
OF
TROOPS.—The Gov-
ernment of Indonesia has established and im-
plemented a plan to reduce the number of Indo-
nesian troops in East Timor.
(C) RELEASE OF POLITICAL PRISONERS.—
Individuals detained or imprisoned for the non-
violent expression of political views in East
Timor have been released from custody.
(5) IMPROVEMENT
IN
LABOR
RIGHTS.—The
Government of Indonesia has taken the following ac-
tions to improve labor rights in Indonesia:
(A) The Government has dropped charges
of subversion, and previous charges against the
General Chairman of the SBSI trade union,
Muchtar Pakpahan, and released him from cus-
tody.
(B) The Government has substantially re-
duced the requirements for legal recognition of
the SBSI or other legitimate worker organiza-
tions as a trade union.
(b) WAIVERS.—
(1) IN
GENERAL.—The limitation on United
States military assistance and arms transfers under
subsection (a) shall not apply if the President deter-
mines and notifies the Congress that—
(A) an emergency exists that requires pro-
viding such assistance or arms transfers for the
Government of Indonesia; or
(B) subject to paragraph (2), it is in the
national interest of the United States to provide
such assistance or arms transfers for the Gov-
ernment of Indonesia.
(2) APPLICABILITY.—A determination under
paragraph (1)(B) shall not become effective until 15
days after the date on which the President notifies
the Congress in accordance with such paragraph.
(c) EFFECTIVE DATE.—The limitation on United
States military assistance and arms transfers under sub-
section (a) shall apply only with respect to assistance pro-
vided for, and arms transfers made pursuant to agree-
ments entered into, fiscal years beginning after the date
of enactment of this Act.
SEC. 454. UNITED STATES MILITARY ASSISTANCE AND
ARMS TRANSFERS DEFINED.
As used in this chapter, the term ‘‘military assistance
and arms transfers’’ means—
(1) small arms, crowd control equipment, ar-
mored personnel carriers, and such other items that
can commonly be used in the direct violation of
human rights; and
(2) assistance under chapter 5 of part II of the
Foreign Assistance Act of 1961 (22 U.S.C. 2347 et
seq.; relating to international military education and
training or ‘‘IMET’’), except such term shall not in-
clude Expanded IMET, pursuant to section 541 of
such Act.
CHAPTER 7—OTHER PROVISIONS
SEC. 461. EXCESS DEFENSE ARTICLES FOR CERTAIN EURO-
PEAN COUNTRIES.
Section 105 of Public Law 104–164 (110 Stat. 1427)
is amended by striking ‘‘1996 and 1997’’ and inserting
‘‘1998 and 1999’’.
SEC. 462. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS
DEFENSE ARTICLES IN THE WAR RESERVE
ALLIES STOCKPILE TO THE REPUBLIC OF
KOREA.
(a) AUTHORITY.—
(1) IN GENERAL.—Notwithstanding section 514
of the Foreign Assistance Act of 1961 (22 U.S.C.
2321h), the President is authorized to transfer to
the Republic of Korea, in return for concessions to
be negotiated by the Secretary of Defense, with the
concurrence of the Secretary of State, any or all of
the items described in paragraph (2).
(2) ITEMS DESCRIBED.—The items described in
this paragraph are equipment, tanks, weapons, re-
pair parts, and ammunition that—
(A) are obsolete or surplus items;
(B) are in the inventory of the Department
of Defense;
(C) are intended for use as reserve stocks
for the Republic of Korea; and
(D) as of the date of enactment of this
Act, are located in a stockpile in the Republic
of Korea.
(b) CONCESSIONS.—The value of the concessions ne-
gotiated pursuant to subsection (a) shall be at least equal
to the fair market value of the items transferred. The con-
cessions may include cash compensation, services, waiver
of charges otherwise payable by the United States, and
other items of value.
(c) ADVANCE NOTIFICATION
OF TRANSFER.—Not
less than 30 days before making a transfer under the au-
thority of this section, the President shall transmit to the
Committee on Foreign Relations of the Senate, the Com-
mittee on International Relations of the House of Rep-
resentatives, and the congressional defense committees a
notification of the proposed transfer. The notification shall
identify the items to be transferred and the concessions
to be received.
(d) EXPIRATION OF AUTHORITY.—No transfer may
be made under the authority of this section more than two
years after the date of the enactment of this Act.
SEC. 463. ADDITIONAL REQUIREMENTS RELATING TO
STOCKPILING OF DEFENSE ARTICLES FOR
FOREIGN COUNTRIES.
(a) VALUE OF ADDITIONS TO STOCKPILES.—Section
514(b)(2)(A) of the Foreign Assistance Act of 1961 (22
U.S.C. 2321h(b)(2)(A)) is amended by inserting before
the period at the end the following: ‘‘and $60,000,000 for
fiscal year 1998’’.
(b) REQUIREMENTS RELATING TO THE REPUBLIC OF
KOREA AND THAILAND.—Section 514(b)(2)(B) of such
Act (22 U.S.C 2321h(b)(2)(B)) is amended by adding at
the end the following: ‘‘Of the amount specified in sub-
paragraph (A) for fiscal year 1998, not more than
$40,000,000 may be made available for stockpiles in the
Republic of Korea and not more than $20,000,000 may
be made available for stockpiles in Thailand.’’.
SEC. 464. DELIVERY OF DRAWDOWN BY COMMERCIAL
TRANSPORTATION SERVICES.
Section 506 of the Foreign Assistance Act of 1961
(22 U.S.C.2318) is amended—
(1) in subsection (b)(2), by striking the period
and inserting the following: ‘‘, including providing
the Congress with a report detailing all defense arti-
cles, defense services, and military education and
training delivered to the recipient country or inter-
national organization upon delivery of such articles
or upon completion of such services or education and
training. Such report shall also include whether any
savings were realized by utilizing commercial trans-
port services rather than acquiring those services
from United States Government transport assets.’’;
(2) by redesignating subsection (c) as sub-
section (d); and
(3) by inserting after subsection (b) the follow-
ing:
‘‘(c) For the purposes of any provision of law that
authorizes the drawdown of defense or other articles or
commodities, or defense or other services from an agency
of the United States Government, such drawdown may in-
clude the supply of commercial transportation and related
services that are acquired by contract for the purposes of
the drawdown in question if the cost to acquire such com-
mercial transportation and related services is less than the
cost to the United States Government of providing such
services from existing agency assets.’’.
SEC. 465. CASH FLOW FINANCING NOTIFICATION.
Section 25 of the Arms Export Control Act (22
U.S.C. 2765) is amended—
(1) in the second subsection (d)—
(A) by striking ‘‘(d)’’ and inserting ‘‘(e)’’;
and
(B) by striking the semicolon at the end
and inserting a period; and
(2) by adding at the end the following:
‘‘(f) For each country that has been approved for
cash flow financing (as defined in subsection (e)) under
section 23 of this Act (relating to the ‘Foreign Military
Financing Program’), any letter of offer and acceptance
or other purchase agreement, or any amendment thereto,
for a procurement in excess of $100,000,000 that is to
be financed in whole or in part with funds made available
under this Act shall be submitted in accordance with the
procedures applicable to reprogramming notifications pur-
suant to section 634A of this Act and through the regular
notification procedures of the Committee on Appropria-
tions.’’.
SEC. 466. MULTINATIONAL ARMS SALES CODE OF CON-
DUCT.
(a) IN GENERAL.—Not later than 180 days after the
date of the enactment of this Act, the President shall con-
vene negotiations with all Wassenaar Arrangement coun-
tries for the purpose of establishing a multinational arms
sales code of conduct.
(b) CONDUCT OF NEGOTIATIONS.—Such negotiations
shall achieve agreement on restricting or prohibiting arms
transfers to countries that—
(1) do not respect democratic processes and the
rule of law;
(2) do not adhere to internationally-recognized
norms on human rights; or
(3) are engaged in acts of armed aggression.
(c) REPORT.—Not later than 1 year after the date
of the enactment of this Act, the President shall prepare
and transmit to the Committee on International Relations
of the House of Representative and the Committee on For-
eign Relations of the Senate a report on—
(1) efforts to establish a multinational arms
sales code of conduct;
(2) progress toward establishing such code of
conduct; and
(3) any obstacles that impede the establishment
of such code of conduct.
TITLE V—ECONOMIC
ASSISTANCE
CHAPTER 1—ECONOMIC SUPPORT
ASSISTANCE
SEC. 501. ECONOMIC SUPPORT FUND.
Section 532(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2346a(a)) is amended to read as follows:
‘‘(a) There are authorized to be appropriated to the
President to carry out the purposes of this chapter
$2,388,350,000 for fiscal year 1998 and $2,350,600,000
for fiscal year 1999.’’.
SEC. 502. ASSISTANCE FOR ISRAEL.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under chapter 4 of part II of the Foreign Assistance Act
of 1961 (22 U.S.C. 2346; relating to the economic support
fund), not less than $1,200,000,000 for each such fiscal
year shall be available only for Israel.
(b) TERMS OF ASSISTANCE.—
(1) CASH
TRANSFER.—The total amount of
funds allocated for Israel for each fiscal year under
subsection (a) shall be made available on a grant
basis as a cash transfer.
(2) EXPEDITED DISBURSEMENT.—Such funds
shall be disbursed—
(A) with respect to fiscal year 1998, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Fi-
nancing, and Related Programs Appropriations
Act, 1998, or by October 31, 1997, whichever
is later; and
(B) with respect to fiscal year 1999, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Fi-
nancing, and Related Programs Appropriations
Act, 1999, or by October 31, 1998, whichever
is later.
(3) ADDITIONAL REQUIREMENT.—In exercising
the authority of this subsection, the President shall
ensure that the amount of funds provided as a cash
transfer to Israel does not cause an adverse impact
on the total level of nonmilitary exports from the
United States to Israel.
SEC. 503. ASSISTANCE FOR EGYPT.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under chapter 4 of part II of the Foreign Assistance Act
of 1961 (22 U.S.C. 2346; relating to the economic support
fund), not less than $815,000,000 for each such fiscal
year shall be available only for Egypt.
(b) ADDITIONAL REQUIREMENT.—In exercising the
authority of this section, the President shall ensure that
the amount of funds provided as a cash transfer to Egypt
does not cause an adverse impact on the total level of non-
military exports from the United States to Egypt.
(c) DECLARATION
OF
POLICY.—The Congress de-
clares the following:
(1) Assistance to Egypt is based in great meas-
ure upon Egypt’s continued implementation of the
Camp David accords and the Egyptian-Israeli peace
treaty.
(2) Fulfillment by Egypt of its obligations
under the agreements described in paragraph (1)
has been disappointing, particularly the failure by
Egypt to meet fully its commitment made at Camp
David to establish with Israel ‘‘relationships normal
to states at peace with one another’’, and in its re-
cent support for reimposing the Arab economic boy-
cott of Israel.
(3) Support for future funding levels of assist-
ance for Egypt will be determined largely on whether
Egypt fulfills its obligations to develop normal rela-
tions with Israel and to promote peace with Israel
and other critical United States interests both in
Egypt and the wider Arab world.
SEC. 504. INTERNATIONAL FUND FOR IRELAND.
(a) FUNDING.—Of the amounts made available for
fiscal years 1998 and 1999 for assistance under chapter
4 of part II of the Foreign Assistance Act of 1961 (22
U.S.C. 2346; relating to the economic support fund), not
more than $19,600,000 for each of the fiscal years 1998
and 1999 shall be available for the United States contribu-
tion to the International Fund for Ireland in accordance
with the Anglo-Irish Agreement Support Act of 1986
(Public Law 99–415).
(b) ADDITIONAL REQUIREMENTS.—
(1) PURPOSES.—Section 2(b) of the Anglo-Irish
Agreement Support Act of 1986 (Public Law 99–
415; 100 Stat. 947) is amended by adding at the
end the following new sentences: ‘‘United States con-
tributions shall be used in a manner that effectively
increases employment opportunities in communities
with rates of unemployment significantly higher than
the local or urban average of unemployment in
Northern Ireland. In addition, such contributions
shall be used to benefit individuals residing in such
communities.’’.
(2) CONDITIONS AND UNDERSTANDINGS.—Sec-
tion 5(a) of such Act is amended—
(A) in the first sentence—
(i) by striking ‘‘The United States’’
and inserting the following:
‘‘(1) IN GENERAL.—The United States’’;
(ii) by striking ‘‘in this Act may be
used’’ and inserting the following: ‘‘in this
Act—
‘‘(A) may be used’’;
(iii) by striking the period and insert-
ing ‘‘; and’’; and
(iv) by adding at the end the follow-
ing:
‘‘(B) may be provided to an individual or
entity in Northern Ireland only if such individ-
ual or entity is in compliance with the prin-
ciples of economic justice.’’; and
(B) in the second sentence, by striking
‘‘The restrictions’’ and inserting the following:
‘‘(2) ADDITIONAL
REQUIREMENTS.—The re-
strictions’’.
(3) PRIOR CERTIFICATIONS.—Section 5(c)(2) of
such Act is amended—
(A) in subparagraph (A), by striking
‘‘principle of equality’’ and all that follows and
inserting ‘‘principles of economic justice; and’’;
and
(B) in subparagraph (B), by inserting be-
fore the period at the end the following: ‘‘and
will create employment opportunities in regions
and communities of Northern Ireland suffering
the highest rates of unemployment’’.
(4) ANNUAL REPORTS.—Section 6 of such Act
is amended—
(A) in paragraph (2), by striking ‘‘and’’ at
the end;
(B) in paragraph (3), by striking the pe-
riod and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(4) each individual or entity receiving assist-
ance from United States contributions to the Inter-
national Fund has agreed in writing to comply with
the principles of economic justice.’’.
(5) REQUIREMENTS
RELATING
TO
FUNDS.—
Section 7 of such Act is amended by adding at the
end the following:
‘‘(c) PROHIBITION.—Nothing included herein shall
require quotas or reverse discrimination or mandate their
use.’’.
(6) DEFINITIONS.—Section 8 of such Act is
amended—
(A) in paragraph (1), by striking ‘‘and’’ at
the end;
(B) in paragraph (2), by striking the pe-
riod at the end and inserting a semicolon; and
(C) by adding at the end the following new
paragraphs:
‘‘(3) the term ‘Northern Ireland’ includes the
counties of Antrim, Armagh, Derry, Down, Tyrone,
and Fermanagh; and
‘‘(4) the term ‘principles of economic justice’
means the following principles:
‘‘(A) Increasing the representation of indi-
viduals from underrepresented religious groups
in the workforce, including managerial, super-
visory, administrative, clerical, and technical
jobs.
‘‘(B) Providing adequate security for the
protection of minority employees at the work-
place.
‘‘(C) Banning provocative sectarian or po-
litical emblems from the workplace.
‘‘(D) Providing that all job openings be ad-
vertised publicly and providing that special re-
cruitment efforts be made to attract applicants
from underrepresented religious groups.
‘‘(E) Providing that layoff, recall, and ter-
mination procedures do not favor a particular
religious group.
‘‘(F) Abolishing job reservations, appren-
ticeship restrictions, and differential employ-
ment criteria which discriminate on the basis of
religion.
‘‘(G) Providing for the development of
training programs that will prepare substantial
numbers of minority employees for skilled jobs,
including the expansion of existing programs
and the creation of new programs to train, up-
grade, and improve the skills of minority em-
ployees.
‘‘(H) Establishing procedures to assess,
identify, and actively recruit minority employees
with the potential for further advancement.
‘‘(I) Providing for the appointment of a
senior management staff member to be respon-
sible for the employment efforts of the entity
and, within a reasonable period of time, the im-
plementation of the principles described in sub-
paragraphs (A) through (H).’’.
(7) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect 180 days after
the date of the enactment of this Act.
SEC. 505. ASSISTANCE FOR TRAINING OF CIVILIAN PER-
SONNEL OF THE MINISTRY OF DEFENSE OF
THE GOVERNMENT OF NICARAGUA.
Notwithstanding section 531(e) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2346(e)), amounts made
available for fiscal years 1998 and 1999 for assistance
under chapter 4 of part II of such Act (22 U.S.C. 2346;
relating to the economic support fund) may be made avail-
able for assistance and training for civilian personnel of
the Ministry of Defense of the Government of Nicaragua
if, prior to the provision of such assistance, the Secretary
of State determines and reports to the Congress that such
assistance is necessary to establishing a civilian Ministry
of Defense capable of effective oversight and management
of the Nicaraguan armed forces and ensuring respect for
civilian authority and human rights.
SEC. 506. AVAILABILITY OF AMOUNTS FOR CUBAN LIBERTY
AND DEMOCRATIC SOLIDARITY (LIBERTAD)
ACT OF 1996 AND THE CUBAN DEMOCRACY
ACT OF 1992.
Of the amounts made available for fiscal years 1998
and 1999 for assistance under chapter 4 of part II of the
Foreign Assistance Act of 1961 (22 U.S.C. 2346; relating
to the economic support fund), not less than $2,000,000
for each such fiscal year shall be made available to carry
out the programs and activities under the Cuban Liberty
and Democratic Solidarity (LIBERTAD) Act of 1996 (22
U.S.C. 6021 et seq.) and the Cuban Democracy Act of
1992 (22 U.S.C. 6001 et seq.).
CHAPTER 2—DEVELOPMENT ASSISTANCE
Subchapter A—Development Assistance
Authorities
SEC. 511. AUTHORIZATION OF APPROPRIATIONS.
(a) DEVELOPMENT ASSISTANCE FUND.—The For-
eign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is
amended by inserting after section 106 and before section
107A, as added by this Act, the following:
‘‘SEC. 107. DEVELOPMENT ASSISTANCE FUND.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to the President to carry
out sections 103 through 106, in addition to amounts oth-
erwise available for such purposes, $1,203,000,000 for
each of the fiscal years 1998 and 1999.
‘‘(b) ADDITIONAL
USE
OF
AMOUNTS.—Of the
amounts authorized to be appropriated under subsection
(a)—
‘‘(1) the President may use such amounts as he
deems appropriate to carry out the provisions of sec-
tion 316 of the International Security and Develop-
ment Cooperation Act of 1980;
‘‘(2) $2,500,000 for fiscal year 1998 and
$4,000,000 for fiscal year 1999 may be made avail-
able to carry out section 510 of the International
Security and Development Cooperation Act of 1980
(relating to the African Development Foundation)
(such amounts are in addition to amounts otherwise
made available to carry out section 510 of such Act);
and
‘‘(3) $2,000,000 for fiscal year 1998 and
$7,000,000 for fiscal year 1999 may be made avail-
able to carry out section 401 of the Foreign Assist-
ance Act of 1969 (relating to the Inter-American
Foundation) (such amounts are in addition to
amounts otherwise made available to carry out sec-
tion 401 of such Act).
‘‘(c) AVAILABILITY.—The amounts authorized to be
appropriated under subsection (a) are authorized to re-
main available until expended.’’.
(b) DEVELOPMENT FUND FOR AFRICA.—Section 497
of the Foreign Assistance Act of 1961 (22 U.S.C. 2294)
is amended to read as follows:
‘‘SEC. 497. AVAILABILITY OF AMOUNTS.
‘‘(a) IN GENERAL.—Of the amounts made available
to carry out sections 103 through 106 (including section
104(c)) for fiscal years 1998 and 1999, not less than
$700,000,000 for each of the fiscal years 1998 and 1999
shall be made available to carry out this chapter (in addi-
tion to amounts otherwise available for such purposes).
‘‘(b) AVAILABILITY.—Amounts made available under
subsection (a) are authorized to remain available until ex-
pended.’’.
(c) ASSISTANCE FOR THE INDEPENDENT STATES OF
THE FORMER SOVIET UNION.—Section 498C(a) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2295c(a)) is
amended by striking ‘‘for fiscal year 1993 $410,000,000’’
and inserting ‘‘for economic assistance and related pro-
grams, 
$839,900,000 
for 
fiscal 
year 
1998 
and
$789,900,000 for fiscal year 1999’’.
(d) ASSISTANCE
FOR
EAST
EUROPEAN
COUN-
TRIES.—
(1) IN GENERAL.—There are authorized to be
appropriated to the President, in addition to
amounts otherwise available for such purposes,
$471,000,000 
for 
fiscal 
year 
1998 
and
$337,000,000 for fiscal year 1999 for economic as-
sistance and related programs for Eastern Europe
and the Baltic states under the Foreign Assistance
Act of 1961 (22 U.S.C. 2151 et seq.) and the Sup-
port for East European Democracy (SEED) Act of
1989 (22 U.S.C. 5401 et seq.).
(2) 
DEBT
RELIEF
FOR
BOSNIA
AND
HERZEGOVINA.—Notwithstanding any other provi-
sion of law, of the amounts authorized to be appro-
priated for fiscal years 1998 and 1999 under para-
graph (1), not more than $5,000,000 may be made
available for the cost, as defined in section 502 of
the Federal Credit Reform Act of 1990, of modify-
ing direct loans and loan guarantees for Bosnia and
Herzegovina.
(3) AVAILABILITY.—Amounts authorized to be
appropriated under paragraph (1) are authorized to
remain available until expended.
(e) 
INTER-AMERICAN
FOUNDATION.—Section
401(s)(2) of the Foreign Assistance Act of 1969 (22
U.S.C. 290f(s)(2)) is amended to read as follows:
‘‘(2)(A) There are authorized to be appropriated to
the President to carry out programs under this section,
in addition to amounts otherwise available for such pur-
poses, $20,000,000 for fiscal year 1998 and $15,000,000
for fiscal year 1999.
‘‘(B) Amounts authorized to be appropriated under
subparagraph (A) are authorized to remain available until
expended.’’.
(f) AFRICAN
DEVELOPMENT
FOUNDATION.—The
first sentence of section 510 of the International Security
and Development Cooperation Act of 1980 (22 U.S.C.
290h–8) is amended by striking ‘‘$3,872,000 for fiscal
year 1986 and $3,872,000 for fiscal year 1987’’ and in-
serting 
‘‘$11,500,000 
for 
fiscal 
year 
1998 
and
$10,000,000 for fiscal year 1999.’’.
SEC. 512. CHILD SURVIVAL ACTIVITIES.
Section 104(c) of the Foreign Assistance Act of 1961
(22 U.S.C. 2151b(c)) is amended to read as follows:
‘‘(c) ASSISTANCE FOR CHILD SURVIVAL, HEALTH,
BASIC EDUCATION FOR CHILDREN, AND DISEASE PRE-
VENTION.—
‘‘(1) AUTHORITY.—The President is authorized
to furnish assistance, on such terms and conditions
as he may determine, for child survival and health
programs, including programs that address the spe-
cial health and nutrition needs of children and moth-
ers, and basic education programs for children. As-
sistance under this subsection may be used for the
following:
‘‘(A) Activities whose primary purpose is
to reduce child morbidity and child mortality
and which have a substantial, direct, and meas-
urable impact on child morbidity and child mor-
tality, such as—
‘‘(i) immunization;
‘‘(ii) oral rehydration;
‘‘(iii) activities relating to Vitamin A
deficiency, iodine deficiency, and other
micronutrients;
‘‘(iv) programs designed to reduce
child malnutrition;
‘‘(v) programs to prevent and treat
acute respiratory infections;
‘‘(vi) programs for the prevention,
treatment, and control of, and research on,
polio, malaria and other diseases primarily
affecting children; and
‘‘(vii) programs whose primary pur-
pose is to prevent neonatal mortality.
‘‘(B) Other child survival activities such
as—
‘‘(i) basic integrated health services;
‘‘(ii) assistance for displaced and or-
phaned children;
‘‘(iii) safe water and sanitation;
‘‘(iv) health programs, and related
education programs, which primarily ad-
dress the needs of mothers and children;
and
‘‘(v) related health planning and re-
search.
‘‘(C) Basic education programs for moth-
ers and children.
‘‘(D) Other disease activities such as pro-
grams for the prevention, treatment and control
of, and research on, tuberculosis, HIV/AIDS,
and other diseases.
‘‘(2) PRIORITY.—Child survival activities ad-
ministered by the United States Agency for Inter-
national Development under this subsection shall be
primarily devoted to activities of the type described
in paragraph (1)(A).
‘‘(3) APPLICATION OF OTHER AUTHORITIES.—
Funds made available to carry out this subsection
that are provided for countries receiving assistance
under chapters 10 and 11 of part I of this Act or
the Support for East European Democracy (SEED)
Act of 1989, may be made available—
‘‘(A) only for the activities described in of
paragraph (1); and
‘‘(B) except to the extent inconsistent with
subparagraph (A), pursuant to the authorities
otherwise applicable to the provision of assist-
ance for such countries.
‘‘(4) INTERNATIONAL ORGANIZATIONS.—Funds
made available to carry out this subsection may be
used to make contributions on a grant basis to the
United Nations Children’s Fund (UNICEF) pursu-
ant to section 301 of this Act.
‘‘(5) 
PVO/CHILD
SURVIVAL
GRANTS
PRO-
GRAM.—Of amounts made available to carry out this
subsection for a fiscal year, not less than
$30,000,000 should be provided to the private and
voluntary organizations under the PVO/Child Sur-
vival grants program carried out by the United
States Agency for International Development.
‘‘(6) REPORT.—The Administrator of the Unit-
ed States Agency for International Development
shall report to Congress, as part of the congressional
presentation document required under section 634 of
this Act, the total amounts to be provided for activi-
ties under each subparagraph of paragraph (1).
‘‘(7) AUTHORIZATION
OF
APPROPRIATIONS.—
(A) In addition to amounts otherwise available for
such purposes, and in addition to amounts made
available under section 107, there are authorized to
be appropriated to the President $600,000,000 for
each of the fiscal years 1998 and 1999 for use in
carrying out this subsection.
‘‘(B) Amounts appropriated under this para-
graph are authorized to remain available until ex-
pended.
‘‘(8) DESIGNATION OF FUND.—Appropriations
pursuant to this subsection may be referred to as
the ‘Child Survival and Disease Programs Fund’.’’.
SEC. 513. REQUIREMENT ON ASSISTANCE TO THE RUSSIAN
FEDERATION.
(a) IN GENERAL.—Of the amounts made available to
carry out chapter 11 of part I of the Foreign Assistance
Act of 1961 (22 U.S.C. 2295 et seq.) for fiscal years 1998
and 1999, not more than $95,000,000 for each such fiscal
year may be provided to the Russian Federation unless
the President determines and reports to the Congress for
each such fiscal year that—
(1) the Government of the Russian Federation
has terminated all official cooperation with, and
transfers of goods and technology to, ballistic missile
or nuclear programs in Iran, and has taken all ap-
propriate steps to prevent cooperation with, and
transfers of goods and technology to, such programs
in Iran by persons and entities subject to its juris-
diction; and
(2) the Government of the Russian Federation
has terminated all official cooperation with, and
transfers of goods and technology to, nuclear reactor
projects in Cuba, and has taken all appropriate
steps to prevent cooperation with, and transfers of
goods and technology to, such projects in Cuba by
persons and entities subject to its jurisdiction.
(b) ADDITIONAL LIMITATION.—
(1) IN GENERAL.—Notwithstanding subsection
(a), none of the funds made available to carry out
chapter 11 of part I of the Foreign Assistance Act
of 1961 (22 U.S.C. 2295 et seq.) for fiscal years
1998 and 1999 may be made available for the Rus-
sian Federation if the Russian Federation, on or
after the date of the enactment of this Act, transfers
an SS–N–22 missile system to the People’s Republic
of China.
(2) EXCEPTION.—Paragraph (1) shall not
apply if the President determines that making such
funds available is important to the national security
interest of the United States. Any such determina-
tion shall cease to be effective 6 months after being
made unless the President determines that its con-
tinuation is important to the national security inter-
est of the United States.
SEC. 514. HUMANITARIAN ASSISTANCE FOR ARMENIA AND
AZERBAIJAN.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that the President should seek cooperation from
the governments of Armenia and Azerbaijan to ensure
that humanitarian assistance, including assistance deliv-
ered through nongovernmental organizations and private
and voluntary organizations, shall be available to all needy
citizens within Armenia and Azerbaijan, including those
individuals in the region of Nagorno-Karabakh.
(b) REPORT.—The President shall prepare and trans-
mit a report to the Congress on humanitarian needs
throughout Armenia and Azerbaijan and the provision of
assistance to meet such needs by United States and other
donor organizations and states.
SEC. 515. AGRICULTURAL DEVELOPMENT AND RESEARCH
ASSISTANCE.
(a) FINDINGS.—The Congress finds that the propor-
tion of United States development assistance devoted to
agricultural development and research has declined sharp-
ly from 17 percent in 1990 to 8 percent in 1996.
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that—
(1) United States investment in international
agricultural development and research has been a
critical part of many economic development suc-
cesses;
(2) agricultural development and research ad-
vance food security, thereby reducing poverty, in-
creasing political stability, and promoting United
States exports; and
(3) the United States Agency for International
Development should increase the emphasis it places
on agricultural development and research and ex-
pand the role of agricultural development and re-
search in poverty relief, child survival, and environ-
mental programs.
SEC. 516. ACTIVITIES AND PROGRAMS IN LATIN AMERICA
AND THE CARIBBEAN REGION AND THE ASIA
AND THE PACIFIC REGION.
Of the amounts made available for fiscal years 1998
and 1999 for assistance under sections 103 through 106
of the Foreign Assistance Act of 1961 (22 U.S.C. 2151a
through 2151d), including assistance under section 104(c)
of such Act (22 U.S.C. 2151b(c)), the amount made avail-
able for activities and programs in Latin America and the
Caribbean region and the Asia and the Pacific region
should be in at least the same proportion to the total
amount of such assistance made available as the amount
identified in the congressional presentation documents for
development assistance for each of the fiscal years 1998
and 1999, respectively, for each such region is to the total
amount requested for development assistance for each
such fiscal year.
SEC. 517. SUPPORT FOR AGRICULTURAL DEVELOPMENT
ASSISTANCE.
(a) IN GENERAL.—For each of the fiscal years 1998
and 1999 the President should allocate an aggregate level
to programs under section 103 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2151a; relating to agriculture,
rural development, and nutrition) in amounts equal to the
level provided to such programs in fiscal year 1997.
(b) INCREASING LEVELS.—If appropriations for pro-
grams under chapter 1 of part I of the Foreign Assistance
Act of 1961 (22 U.S.C. 2151 et seq.; relating to develop-
ment assistance) increase in fiscal year 1998 or 1999
above levels provided in fiscal year 1997, the President
should allocate an increasing level for programs under sec-
tion 103 of such Act (22 U.S.C. 2151a; relating to agri-
culture, rural development, and nutrition).
Subchapter B—Operating Expenses
SEC. 521. OPERATING EXPENSES GENERALLY.
Section 667(a)(1) of the Foreign Assistance Act of
1961 (22 U.S.C. 2427(a)(1)) is amended to read as fol-
lows:
‘‘(1) $473,000,000 for fiscal year 1998 and
$465,000,000 for fiscal year 1999 for necessary op-
erating expenses of the United States Agency for
International Development (other than the Office of
the Inspector General of such agency);’’.
SEC. 522. OPERATING EXPENSES OF THE OFFICE OF THE
INSPECTOR GENERAL.
Section 667(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2427(a)), as amended by this Act, is further
amended—
(1) by redesignating paragraph (2) as para-
graph (3); and
(2) by inserting after paragraph (1) the follow-
ing:
‘‘(2) $29,047,000 for each of the fiscal years
1998 and 1999 for necessary operating expenses of
the Office of the Inspector General of such agency;
and’’.
CHAPTER 3—URBAN AND
ENVIRONMENTAL CREDIT PROGRAM
SEC. 531. URBAN AND ENVIRONMENTAL CREDIT PROGRAM.
(a) IN GENERAL.—The heading for title III of chap-
ter 2 of part I of the Foreign Assistance Act of 1961 is
amended to read as follows:
‘‘TITLE III—URBAN AND ENVIRONMENTAL
CREDIT PROGRAM’’.
(b) REPEALS.—(1) Section 222(k) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2182(k)) is hereby re-
pealed.
(2) Section 222A of such Act (22 U.S.C. 2182a) is
hereby repealed.
(3) Section 223(j) of such Act (22 U.S.C. 2183(j))
is hereby repealed.
CHAPTER 4—THE PEACE CORPS
SEC. 541. AUTHORIZATION OF APPROPRIATIONS.
Section 3(b) of the Peace Corps Act (22 U.S.C.
2502(b)) is amended to read as follows:
‘‘(b)(1) There are authorized to be appropriated to
carry out the purposes of this Act $222,000,000 for fiscal
year 1998 and $225,000,000 for fiscal year 1999.
‘‘(2) Amounts authorized to be appropriated under
paragraph (1)—
‘‘(A) with respect to fiscal year 1998 are au-
thorized to remain available until September 30,
1999; and
‘‘(B) with respect to fiscal year 1999 are au-
thorized to remain available until September 30,
2000.’’.
SEC. 542. ACTIVITIES OF THE PEACE CORPS IN THE
FORMER SOVIET UNION AND MONGOLIA.
Of the amounts made available for fiscal years 1998
and 1999 to carry out chapter 11 of part I of the Foreign
Assistance Act of 1961 (22 U.S.C. 2295 et seq.; relating
to assistance for the independent states of the former So-
viet Union), not more than $11,000,000 for each such fis-
cal year shall be available for activities of the Peace Corps
in the independent states of the former Soviet Union (as
defined in section 3 of the Freedom for Russia and
Emerging Eurasian Democracies and Open Markets Sup-
port Act of 1992) and Mongolia.
SEC. 543. AMENDMENTS TO THE PEACE CORPS ACT.
(a) TERMS AND CONDITIONS OF VOLUNTEER SERV-
ICE.—Section 5 of the Peace Corps Act (22 U.S.C. 2504)
is amended—
(1) in subsection (f)(1)(B), by striking ‘‘Civil
Service Commission’’ and inserting ‘‘Office of Per-
sonnel Management’’;
(2) in subsection (h), by striking ‘‘the Federal
Voting Assistance Act of 1955’’ and all that follows
through the end of the subsection and inserting
‘‘sections 5584 and 5732 of title 5, United States
Code (and readjustment allowances paid under this
Act shall be considered as pay for purposes of such
section 5732), section 1 of the Act of June 4, 1920
(22 U.S.C. 214), and section 3342 of title 31, Unit-
ed States Code.’’; and
(3) in subsection (j), by striking ‘‘section 1757
of the Revised Statutes’’ and all that follows through
the end of the subsection and inserting ‘‘section
3331 of title 5, United States Code.’’.
(b) GENERAL POWERS AND AUTHORITIES.—Section
10 of such Act (22 U.S.C. 2509) is amended—
(1) in subsection (a)(4), by striking ‘‘31 U.S.C.
665(b)’’ and inserting ‘‘section 1342 of title 31,
United States Code’’; and
(2) in subsection (a)(5), by striking ‘‘: Provided,
That’’ and all that follows through the end of the
paragraph and inserting ‘‘, except that such individ-
uals shall not be deemed employees for the purpose
of any law administered by the Office of Personnel
Management.’’.
(c) UTILIZATION OF FUNDS.—Section 15 of such Act
(22 U.S.C. 2514) is amended—
(1) in the first sentence of subsection (c)—
(A) by striking ‘‘Public Law 84–918 (7
U.S.C. 1881 et seq.)’’ and inserting ‘‘sub-
chapter VI of chapter 33 of title 5, United
States Code (5 U.S.C. 3371 et seq.)’’; and
(B) by striking ‘‘specified in that Act’’ and
inserting ‘‘or other organizations specified in
section 3372(b) of such title’’; and
(2) in subsection (d)—
(A) in paragraph (2), by striking ‘‘section
9 of Public Law 60–328 (31 U.S.C. 673)’’ and
inserting ‘‘section 1346 of title 31, United
States Code’’;
(B) in paragraph (6), by striking ‘‘without
regard to section 3561 of the Revised Statutes
(31 U.S.C. 543)’’;
(C) in paragraph (11)—
(i) by striking ‘‘Foreign Service Act of
1946, as amended (22 U.S.C. 801 et
seq.),’’ and inserting ‘‘Foreign Service Act
of 1980 (22 U.S.C. 3901 et seq.)’’; and
(ii) by striking ‘‘and’’ at the end;
(D) in paragraph (12), by striking the pe-
riod at the end and by inserting ‘‘; and’’; and
(E) by adding at the end the following:
‘‘(13) the transportation of Peace Corps em-
ployees, Peace Corps volunteers, dependents of em-
ployees and volunteers, and accompanying baggage,
by a foreign air carrier when the transportation is
between 2 places outside the United States without
regard to section 40118 of title 49, United States
Code.’’.
(d) PROHIBITION ON USE OF FUNDS FOR ABOR-
TIONS.—Section 15 of such Act (22 U.S.C. 2514) is
amended, as amended by this Act, is further amended by
adding at the end the following new subsection:
‘‘(e) Funds made available for the purposes of this
Act may not be used to pay for abortions.’’.
CHAPTER 5—INTERNATIONAL DISASTER
ASSISTANCE
SEC. 551. AUTHORITY TO PROVIDE RECONSTRUCTION AS-
SISTANCE.
Section 491 of the Foreign Assistance Act of 1961
(22 U.S.C. 2292) is amended—
(1) in subsection (a), by striking ‘‘and rehabili-
tation’’ and inserting ‘‘, rehabilitation, and recon-
struction, as the case may be,’’;
100
(2) in subsection (b), by striking ‘‘and rehabili-
tation’’ and inserting ‘‘, rehabilitation, and recon-
struction’’; and
(3) in subsection (c), by striking ‘‘and rehabili-
tation’’ and inserting ‘‘, rehabilitation, and recon-
struction’’.
SEC. 552. AUTHORIZATIONS OF APPROPRIATIONS.
Section 492(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2292a(a)) is amended in the first sentence to
read as follows: ‘‘There are authorized to be appropriated
to the President to carry out section 491, in addition to
funds otherwise available for such purposes, $190,000,000
for each of the fiscal years 1998 and 1999.’’.
CHAPTER 6—DEBT RELIEF
SEC. 561. DEBT RESTRUCTURING FOR FOREIGN ASSIST-
ANCE.
Chapter 6 of part I of the Foreign Assistance Act
of 1961 (22 U.S.C. 2271 et seq.) is amended to read as
follows:
‘‘CHAPTER 6—DEBT RELIEF
‘‘SEC. 461. SPECIAL DEBT RELIEF FOR POOR COUNTRIES.
‘‘(a) AUTHORITY TO REDUCE DEBT.—The President
may reduce amounts owed to the United States Govern-
ment by a country described in subsection (b) as a result
of—
101
‘‘(1) loans or guarantees issued under this Act;
or
‘‘(2) credits extended or guarantees issued
under the Arms Export Control Act (22 U.S.C.
2751 et seq.).
‘‘(b) COUNTRY DESCRIBED.—A country described in
this subsection is a country—
‘‘(1) with a heavy debt burden that is eligible
to borrow from the International Development Asso-
ciation but not from the International Bank for Re-
construction and Development (commonly referred
to as an ‘IDA-only’ country);
‘‘(2) the government of which—
‘‘(A) does not have an excessive level of
military expenditures;
‘‘(B) has not repeatedly provided support
for acts of international terrorism; and
‘‘(C) is not failing to cooperate with the
United States on international narcotics control
matters;
‘‘(3) the government (including the military or
other security forces of such government) of which
does not engage in a consistent pattern of gross vio-
lations of internationally recognized human rights;
and
102
‘‘(4) that is not ineligible for assistance because
of the application of section 527(a) of the Foreign
Relations Authorization Act, Fiscal Years 1994 and
1995.
‘‘(c) LIMITATIONS.—The authority under subsection
(a) may be exercised—
‘‘(1) only to implement multilateral official debt
relief ad referendum agreements (commonly referred
to as ‘Paris Club Agreed Minutes’); and
‘‘(2) only to the extent that appropriations for
the cost of the modification, as defined in section
502 of the Congressional Budget Act of 1974, are
made in advance.
‘‘(d) CERTAIN PROHIBITIONS INAPPLICABLE.—A re-
duction of debt pursuant to the exercise of authority under
subsection (a)—
‘‘(1) shall not be considered assistance for pur-
poses of any provision of law limiting assistance to
a country; and
‘‘(2) may be exercised notwithstanding section
620(r) of this Act or any comparable provision of
law.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated to the President for the purpose of car-
103
rying out this section and the Foreign Operations,
Export Financing, and Related Programs Supple-
mental Appropriations Act, 1994 (title VI of the
Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 1994; Public Law
103–306) $32,000,000 for each of the fiscal years
1998 and 1999.
‘‘(2) AVAILABILITY.—Amounts authorized to be
appropriated under paragraph (1) are authorized to
remain available until expended.’’.
SEC. 562. DEBT BUYBACKS OR SALES FOR DEBT SWAPS.
Part IV of the Foreign Assistance Act of 1961 (22
U.S.C. 2430 et seq.) is amended by adding at the end
the following:
‘‘SEC. 711. AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR
SALES.
‘‘(a) LOANS ELIGIBLE FOR SALE, REDUCTION, OR
CANCELLATION.—
‘‘(1) AUTHORITY TO SELL, REDUCE, OR CANCEL
CERTAIN LOANS.—Notwithstanding any other provi-
sion of law, the President may, in accordance with
this section, sell to any eligible purchaser any
concessional loan or portion thereof made before
January 1, 1995, pursuant to this Act, to the gov-
ernment of any eligible country, as defined in section
104
702(6), or on receipt of payment from an eligible
purchaser or such eligible country, reduce or cancel
such loan or portion thereof, only for the purpose of
facilitating—
‘‘(A) debt-for-equity swaps, debt-for-devel-
opment swaps, or debt-for-nature swaps; or
‘‘(B) a debt buyback by an eligible country
of its own qualified debt, only if the eligible
country uses an additional amount of the local
currency of the eligible country, equal to not
less than 40 percent of the price paid for such
debt by such eligible country, or the difference
between the price paid for such debt and the
face value of such debt, to support activities (i)
that link conservation and sustainable use of
natural resources with local community develop-
ment, and (ii) for child survival and other child
development activities, in a manner consistent
with sections 707 through 710, if the sale, re-
duction, or cancellation would not contravene
any term or condition of any prior agreement
relating to such loan.
‘‘(2) TERMS AND CONDITIONS.—Notwithstand-
ing any other provision of law, the President shall,
in accordance with this section, establish the terms
105
and conditions under which loans may be sold, re-
duced, or canceled pursuant to this section.
‘‘(3) ADMINISTRATION.—The Facility, as de-
fined in section 702(8), shall notify the Adminis-
trator of the United States Agency for International
Development of purchasers that the President has
determined to be eligible, and shall direct such agen-
cy to carry out the sale, reduction, or cancellation of
a loan pursuant to this section. Such agency shall
make an adjustment in its accounts to reflect the
sale, reduction, or cancellation.
‘‘(4) LIMITATION.—To the extent that appro-
priations for the cost of the modification, as defined
in section 502 of the Congressional Budget Act of
1974, are necessary, the authorities of this sub-
section shall be available only where such appropria-
tions are made in advance.
‘‘(b) DEPOSIT OF PROCEEDS.—The proceeds from
the sale, reduction, or cancellation of any loan sold, re-
duced, or canceled pursuant to this section shall be depos-
ited in an account or accounts established in the Treasury
for the repayment of such loan.
‘‘(c) ELIGIBLE PURCHASERS.—A loan may be sold
pursuant to subsection (a)(1)(A) only to a purchaser who
presents plans satisfactory to the President for using the
106
loan for the purpose of engaging in debt-for-equity swaps,
debt-for-development swaps, or debt-for-nature swaps.
‘‘(d) DEBTOR CONSULTATIONS.—Before the sale to
any eligible purchaser, or any reduction or cancellation
pursuant to this section, of any loan made to an eligible
country, the President shall consult with the country con-
cerning the amount of loans to be sold, reduced, or can-
celed and their uses for debt-for-equity swaps, debt-for-
development swaps, or debt-for-nature swaps.’’.
CHAPTER 7—OTHER ASSISTANCE
PROVISIONS
SEC. 571. EXEMPTION FROM RESTRICTIONS ON ASSIST-
ANCE THROUGH NONGOVERNMENTAL ORGA-
NIZATIONS.
Section 123(e) of the Foreign Assistance Act of 1961
(22 U.S.C. 2151u(e)) is amended to read as follows:
‘‘(e)(1) Subject to paragraph (3), restrictions con-
tained in this Act or any other provision of law with re-
spect to assistance for a country shall not be construed
to restrict assistance under this chapter, chapter 10, and
chapter 11 of this part, chapter 4 of part II, or the Sup-
port for East European Democracy (SEED) Act of 1989
(22 U.S.C. 5401 et seq.), in support of programs of non-
governmental organizations.
107
‘‘(2) The President shall take into consideration, in
any case in which a restriction on assistance for a country
would be applicable but for this subsection, whether assist-
ance for programs of nongovernmental organizations is in
the national interest of the United States.
‘‘(3) Whenever the authority of this subsection is
used to furnish assistance in support of a program of a
nongovernmental organization, the President shall notify
the congressional committees specified in section 634A(a)
of this Act in accordance with procedures applicable to re-
programming notifications under that section. Such notifi-
cation shall describe the program assisted, the assistance
provided, and the reasons for furnishing such assistance.’’.
SEC. 572. FUNDING REQUIREMENTS RELATING TO UNITED
STATES PRIVATE AND VOLUNTARY ORGANI-
ZATIONS.
(a) IN GENERAL.—Section 123(g) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2151u(g)) is amended
to read as follows:
‘‘(g) Funds made available to carry out this chapter
or chapter 10 of this part may not be made available to
any United States private and voluntary organization, ex-
cept any cooperative development organization, that ob-
tains less than 20 percent of its total annual funding for
108
its international activities from sources other than the
United States Government.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) applies with respect to funds made available
for programs of any United States private and voluntary
organization on or after the date of the enactment of this
Act.
SEC. 573. DOCUMENTATION REQUESTED OF PRIVATE AND
VOLUNTARY ORGANIZATIONS.
Section 620 of the Foreign Assistance Act of 1961
(22 U.S.C. 2370) is amended by inserting after subsection
(u) the following:
‘‘(v) None of the funds made available to carry out
this Act shall be available to any private and voluntary
organization which—
‘‘(1) fails to provide upon timely request any
document, file, or record necessary to the auditing
requirements of the United States Agency for Inter-
national Development; or
‘‘(2) is not registered with the United States
Agency for International Development.’’.
SEC. 574. ENCOURAGEMENT OF FREE ENTERPRISE AND
PRIVATE PARTICIPATION.
Section 601(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2351(a)) is amended—
109
(1) by striking ‘‘(a)’’ and inserting ‘‘(a)(1)’’;
and
(2) by adding the following:
‘‘(2) To the maximum extent feasible, in providing
assistance under Part I of this Act, the President should
give special emphasis to programs and activities that en-
courage the creation and development of private enterprise
and free market systems, including—
‘‘(A) the development of private cooperatives,
credit unions, labor unions, and civic and profes-
sional associations;
‘‘(B) the reform and restructuring of banking
and financial systems; and
‘‘(C) the development and strengthening of
commercial laws and regulations, including laws and
regulations to protect intellectual property.’’.
SEC. 575. SENSE OF THE CONGRESS RELATING TO UNITED
STATES COOPERATIVES AND CREDIT UNIONS.
It is the sense of the Congress that—
(1) United States cooperatives and cooperative
development organizations and credit unions can
provide an opportunity for people in developing
countries to participate directly in democratic deci-
sionmaking for their economic and social benefit
through ownership and control of business enter-
110
prises and through the mobilization of local capital
and savings; and
(2) such organizations should be utilized in fos-
tering democracy, free markets, community-based
development, and self-help projects.
SEC. 576. FOOD ASSISTANCE TO THE DEMOCRATIC PEO-
PLE’S REPUBLIC OF KOREA.
None of the funds made available in this Act and the
amendments made by this Act shall be made available for
assistance for food to the Democratic People’s Republic
of Korea unless the President certifies to the Congress
that—
(1) the Government of the Republic of Korea
does not oppose the delivery of United States assist-
ance for food to the Democratic People’s Republic of
Korea;
(2) the United States Government is confident
that previous United States assistance for food and
official concessional food deliveries have not been di-
verted to military needs;
(3) military stocks of the Democratic People’s
Republic of Korea have been tapped to respond to
unmet food aid needs;
(4) the World Food Program and other inter-
national food delivery organizations have been per-
111
mitted to take and have taken all reasonable steps
to ensure that all upcoming food aid deliveries will
not be diverted from intended recipients; and
(5) the Government of the United States has
directly acted to encourage, and acting through ap-
propriate international organizations, has encour-
aged such organizations to urge, the Democratic
People’s Republic of Korea to initiate fundamental
structural reforms of its agricultural sector.
SEC. 577. WITHHOLDING OF ASSISTANCE TO COUNTRIES
THAT PROVIDE NUCLEAR FUEL TO CUBA.
(a) IN GENERAL.—Section 620 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2370), as amended by this
Act, is further amended by adding at the end the follow-
ing:
‘‘(y)(1) Except as provided in paragraph (2), the
President shall withhold from amounts made available
under this Act or any other Act and allocated for a coun-
try for a fiscal year an amount equal to the aggregate
value of nuclear fuel and related assistance and credits
provided by that country, or any entity of that country,
to Cuba during the preceding fiscal year.
‘‘(2) The requirement to withhold assistance for a
country for a fiscal year under paragraph (1) shall not
apply if Cuba—
112
‘‘(A) has ratified the Treaty on the Non-
Proliferation of Nuclear Weapons (21 UST
483) or the Treaty of Tlatelelco, and Cuba is
in compliance with the requirements of either
such Treaty;
‘‘(B) has negotiated and is in compliance
with full-scope safeguards of the International
Atomic Energy Agency not later than two years
after ratification by Cuba of such Treaty; and
‘‘(C) incorporates and is in compliance
with internationally accepted nuclear safety
standards.
‘‘(3) The Secretary of State shall prepare and submit
to the Congress each year a report containing a descrip-
tion of the amount of nuclear fuel and related assistance
and credits provided by any country, or any entity of a
country, to Cuba during the preceding year, including the
terms of each transfer of such fuel, assistance, or cred-
its.’’.
(b) EFFECTIVE DATE.—Section 620(y) of the For-
eign Assistance Act of 1961, as added by subsection (a),
shall apply with respect to assistance provided in fiscal
years beginning on or after the date of the enactment of
this Act.
113
TITLE VI—TRADE AND
DEVELOPMENT AGENCY
SEC. 601. AUTHORIZATION OF APPROPRIATIONS.
Section 661(f)(1)(A) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2421(f)(1)(A)) is amended to read as
follows:
‘‘(1) AUTHORIZATION.—(A) There are author-
ized to be appropriated for purposes of this section,
in addition to funds otherwise available for such pur-
poses, $43,000,000 for each of the fiscal years 1998
and 1999.’’.
TITLE VII—SPECIAL AUTHORI-
TIES AND OTHER PROVISIONS
CHAPTER 1—SPECIAL AUTHORITIES
SEC. 701. ENHANCED TRANSFER AUTHORITY.
Section 610 of the Foreign Assistance Act of 1961
(22 U.S.C. 2360) is amended to read as follows:
‘‘SEC. 610. TRANSFER BETWEEN ACCOUNTS.
‘‘(a) GENERAL AUTHORITY.—Whenever the Presi-
dent determines it to be necessary for the purposes of this
Act or the Arms Export Control Act (22 U.S.C. 2751 et
seq.), not to exceed 20 percent of the funds made available
to carry out any provision of this Act (except funds made
available pursuant to title IV of chapter 2 of part I) or
114
section 23 of the Arms Export Control Act (22 U.S.C.
2763)—
‘‘(1) may be transferred to, and consolidated
with, the funds in any other account or fund avail-
able to carry out any provision of this Act or the
Arms Export Control Act; and
‘‘(2) may be used for any purpose for which
funds in that account or fund may be used.
‘‘(b) LIMITATION ON AMOUNT OF INCREASE.—The
total amount in the account or fund for the benefit of
which transfer is made under subsection (a) during any
fiscal year may not be increased by more than 20 percent
of the amount of funds otherwise made available.
‘‘(c) NOTIFICATION.—The President shall notify in
writing the congressional committees specified in section
634A at least fifteen days in advance of each such transfer
between accounts in accordance with procedures applicable
to reprogramming notifications under such section.’’.
SEC. 702. AUTHORITY TO MEET UNANTICIPATED CONTIN-
GENCIES.
Paragraph (1) of section 451(a) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2261(a)(1)) is amended
by striking ‘‘$25,000,000’’ and inserting ‘‘$50,000,000’’.
115
SEC. 703. SPECIAL WAIVER AUTHORITY.
(a) LAWS AFFECTED.—Section 614 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2364) is amended by
striking subsections (a)(1) and (a)(2) and inserting the
following:
‘‘(a) AUTHORITY
TO
AUTHORIZE
ASSISTANCE,
SALES, AND OTHER ACTIONS; LIMITATIONS.—(1) The
President may authorize assistance, sales, or other action
under this Act, the Arms Export Control Act, or any an-
nual (or periodic) foreign assistance authorization or ap-
propriations legislation, without regard to any of the pro-
visions described in subsection (b), if the President deter-
mines, and notifies in writing the Speaker of the House
of Representatives and the chairman of the Committee on
Foreign Relations of the Senate—
‘‘(A) with respect to assistance or other actions
under chapter 2 or 5 of part II of this Act, or assist-
ance, sales, or other actions under the Arms Export
Control Act, that to do so is vital to the national se-
curity interests of the United States; and
‘‘(B) with respect to other assistance or actions
that to do so is important to the national interests
of the United States.
‘‘(2) The President may waive any provision de-
scribed in paragraph (1), (2), or (3) of subsection (b) that
would otherwise prohibit or restrict assistance or other ac-
116
tion under any provision of law not described in those
paragraphs if the President determines, and notifies in
writing the Speaker of the House of Representatives and
the chairman of the Committee on Foreign Relations of
the Senate, that to do so is important to the national in-
terests of the United States.’’.
(b) ANNUAL CEILINGS.—Section 614(a)(4) of such
Act (22 U.S.C. 2364(a)(4)) is amended—
(1) in subparagraph (A)—
(A) 
in 
clause 
(i), 
by 
striking
‘‘$750,000,000’’ 
and 
inserting
‘‘$1,000,000,000’’;
(B) 
in 
clause 
(ii), 
by 
striking
‘‘$250,000,000’’ and inserting ‘‘$500,000,000’’;
and
(C) 
in 
clause 
(iii), 
by 
striking
‘‘$100,000,000’’ and inserting ‘‘$200,000,000’’;
and
(2) in subparagraph (C)—
(A) by striking ‘‘$50,000,000’’ and insert-
ing ‘‘$75,000,000’’; and
(B) by striking $1,000,000,000’’ and in-
serting ‘‘$1,500,000,000’’.
117
(c) LAWS WHICH MAY BE WAIVED.—Section 614 of
such Act (22 U.S.C. 2364) is amended by striking sub-
sections (b) and (c) and inserting the following:
‘‘(b) LAWS WHICH MAY BE WAIVED.—The provi-
sions referred to in paragraphs (1) and (2) of subsection
(a) are—
‘‘(1) the provisions of this Act;
‘‘(2) the provisions of the Arms Export Control
Act;
‘‘(3) the provisions of any annual (or periodic)
foreign assistance authorization or appropriations
legislation, including any amendment made by any
such Act;
‘‘(4) any other provision of law that restricts
assistance, sales or leases, or other action under the
Acts referred to in paragraph (1), (2), or (3); and
‘‘(5) any law relating to receipts and credits ac-
cruing to the United States.’’.
(d) 
CONFORMING
AMENDMENT.—Section
614(a)(4)(B) of such Act (22 U.S.C 2364(a)(4)(B)) is
amended by striking ‘‘the Arms Export Control Act or
under’’.
SEC. 704. TERMINATION OF ASSISTANCE.
Section 617 of the Foreign Assistance Act of 1961
(22 U.S.C. 2367) is amended to read as follows:
118
‘‘SEC. 617. TERMINATION OF ASSISTANCE.
‘‘(a) IN GENERAL.—(1) In order to ensure the effec-
tiveness of assistance provided under this Act, notwith-
standing any other provision of law, funds made available
under this Act or the Arms Export Control Act to carry
out any program, project, or activity of assistance shall
remain available for obligation for a period not to exceed
8 months after the date of termination of such assistance
for the necessary expenses of winding up such programs,
projects, or activities, and funds so obligated may remain
available until expended.
‘‘(2) Funds obligated to carry out any program,
project, or activity of assistance before the effective date
of the termination of such assistance are authorized to be
available for expenditure for the necessary expenses of
winding up such programs, projects, and activities, not-
withstanding any provision of law restricting the expendi-
ture of funds, and may be reobligated to meet any other
necessary expenses arising from the termination of such
assistance.
‘‘(3) The necessary expenses of winding up programs,
projects, and activities of assistance include the obligation
and expenditure of funds to complete the training or stud-
ies outside their countries of origin of students whose
course of study or training program began before assist-
ance was terminated.
119
‘‘(b) LIABILITY TO CONTRACTORS.—For the purpose
of making an equitable settlement of termination claims
under extraordinary contractual relief standards, the
President is authorized to adopt as a contract or other
obligation of the United States Government, and assume
(in whole or in part) any liabilities arising thereunder, any
contract with a United States or third-country contractor
to carry out any program, project, or activity of assistance
under this Act that was subsequently terminated pursuant
to law.
‘‘(c) GUARANTEE PROGRAMS.—Provisions of this or
any other Act requiring the termination of assistance
under this Act shall not be construed to require the termi-
nation of guarantee commitments that were entered into
before the effective date of the termination of assistance.’’.
SEC. 705. LOCAL ASSISTANCE TO HUMAN RIGHTS GROUPS
IN CUBA.
Section 109 of the Cuban Liberty and Democratic
Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6039)
is amended by adding at the end the following:
‘‘(d) LOCAL ASSISTANCE.—
‘‘(1) IN GENERAL.—For the purposes of provid-
ing assistance to independent nongovernmental orga-
nizations and individuals in Cuba as authorized by
subsection (a), amounts made available under such
120
subsection may be used for assistance to individuals
and nongovernmental organizations in Cuba and for
local costs incurred in delivering such assistance.
‘‘(2) CERTIFICATION.—A certification by a rep-
resentative of a United States or local nongovern-
mental organization, or other entity, administering
assistance described in paragraph (1), that such as-
sistance is being used for its intended purpose, shall
be deemed to satisfy any accountability requirement
of the United States Agency for International Devel-
opment for the administration of such assistance.’’.
CHAPTER 2—REPEALS
SEC. 711. REPEAL OF OBSOLETE PROVISIONS.
(a) 1987 FOREIGN ASSISTANCE APPROPRIATIONS
ACT.—Section 539(g)(2) of the Foreign Assistance and
Related Programs Appropriations Act, 1987, as included
in Public Law 99–591, is hereby repealed.
(b) 1986 ASSISTANCE ACT.—The Special Foreign
Assistance Act of 1986 is hereby repealed except for sec-
tion 1, section 204, and title III of such Act.
(c) 1985 ASSISTANCE ACT.—The International Secu-
rity and Development Cooperation Act of 1985 is hereby
repealed except for section 1, section 131, section 132, sec-
tion 502, section 504, section 505, part B of title V (other
121
than section 558 and section 559), section 1302, section
1303, and section 1304.
(d) 1985 JORDAN SUPPLEMENTAL ACT.—The Jor-
dan Supplemental Economic Assistance Authorization Act
of 1985 is hereby repealed.
(e) 1985 AFRICAN FAMINE ACT.—The African Fam-
ine Relief and Recovery Act of 1985 is hereby repealed.
(f) 1983 ASSISTANCE ACT.—The International Secu-
rity and Development Assistance Authorization Act of
1983 is hereby repealed.
(g) 1983 LEBANON ASSISTANCE ACT.—The Lebanon
Emergency Assistance Act of 1983 is hereby repealed.
(h) 1981 ASSISTANCE ACT.—The International Secu-
rity and Development Cooperation Act of 1981 is hereby
repealed except for section 1, section 709, and section 714.
(i) 1980 ASSISTANCE ACT.—The International Secu-
rity and Development Cooperation Act of 1980 is hereby
repealed except for section 1, section 110, section 316, and
title V.
(j) 1979 DEVELOPMENT ASSISTANCE ACT.—The
International Development Cooperation Act of 1979 is
hereby repealed.
(k) 1979 SECURITY ASSISTANCE ACT.—The Inter-
national Security Assistance Act of 1979 is hereby re-
pealed.
122
(l) 1979 SPECIAL SECURITY ASSISTANCE ACT.—The
Special International Security Assistance Act of 1979 is
hereby repealed.
(m) 1978 DEVELOPMENT ASSISTANCE ACT.—The
International Development and Food Assistance Act of
1978 is hereby repealed, except for section 1, title IV, and
section 603(a)(2).
(n) 1978 SECURITY ASSISTANCE ACT.—The Inter-
national Security Assistance Act of 1978 is hereby re-
pealed.
(o) 1977 DEVELOPMENT ASSISTANCE ACT.—The
International Development and Food Assistance Act of
1977 is hereby repealed except for section 1, section
132(b), and section 133.
(p) 1977 SECURITY ASSISTANCE ACT.—The Inter-
national Security Assistance Act of 1977 is hereby re-
pealed.
(q) 1976 SECURITY ASSISTANCE ACT.—The Inter-
national Security Assistance and Arms Export Control Act
of 1976 is hereby repealed except for section 1, section
201(b), section 212(b), section 601, and section 608.
(r) 1975 DEVELOPMENT ASSISTANCE ACT.—The
International Development and Food Assistance Act of
1975 is hereby repealed.
123
(s) 1975 BIB ACT.—Public Law 94–104 is hereby
repealed.
(t) 1974 ASSISTANCE ACT.—The Foreign Assistance
Act of 1974 is hereby repealed.
(u) 1973 EMERGENCY
ASSISTANCE
ACT.—The
Emergency Security Assistance Act of 1973 is hereby re-
pealed.
(v) 1973 ASSISTANCE ACT.—The Foreign Assistance
Act of 1973 is hereby repealed.
(w) 1971 ASSISTANCE ACT.—The Foreign Assistance
Act of 1971 is hereby repealed.
(x) 1971 SPECIAL ASSISTANCE ACT.—The Special
Foreign Assistance Act of 1971 is hereby repealed.
(y) 1969 ASSISTANCE ACT.—The Foreign Assistance
Act of 1969 is hereby repealed except for the first section
and part IV.
(z) 1968 ASSISTANCE ACT.—The Foreign Assistance
Act of 1968 is hereby repealed.
(aa) 1964 ASSISTANCE ACT.—The Foreign Assist-
ance Act of 1964 is hereby repealed.
(bb) LATIN AMERICAN DEVELOPMENT ACT.—The
Latin American Development Act is hereby repealed.
(cc) 1959 MUTUAL SECURITY ACT.—The Mutual Se-
curity Act of 1959 is hereby repealed.