199
‘‘(e) REGULATIONS.—The Secretary of Commerce
shall promulgate regulations for the implementation and
enforcement of this section.
‘‘(f) EXEMPTION.—The criminal fines provided for in
this section are exempt from the provisions of section 3571
of title 18, United States Code.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 9 of title 13,
United States Code, is amended by striking the item
relating to section 305 and inserting the following:
‘‘305. Penalties for unlawful export information activities.’’.
SEC. 845. CONGRESSIONAL NOTIFICATION OF REMOVAL OF
ITEMS FROM THE MUNITIONS LIST.
Section 38(f)(1) of the Arms Export Control Act (22
U.S.C. 2778(f)(1)), is amended by striking the third sen-
tence and inserting the following: ‘‘The President may not
remove any item from the Munitions List until 30 days
after the date on which the President has provided notice
of the proposed removal to the Committee on International
Relations of the House of Representatives and to the Com-
mittee on Foreign Relations of the Senate in accordance
with the procedures applicable to reprogramming notifica-
tions under section 634A(a) of the Foreign Assistance Act
of 1961. Such notice shall describe the nature of any con-
trols to be imposed on that item under any other provision
of law.’’.
200
SEC. 846. CONGRESSIONAL NOTIFICATION THRESHOLDS
FOR ALLIED COUNTRIES.
The Arms Export Control Act (22 U.S.C. 2751 et
seq.), is amended—
(1) in paragraphs (1) and (3)(A) of section
3(d), by adding after ‘‘at $50,000,000 or more’’
each place it appears the following: ‘‘(or, in the case
of a transfer to a country which is a member coun-
try of the North Atlantic Treaty Organization
(NATO) or Australia, Japan, or New Zealand, any
major defense equipment valued (in terms of its
original acquisition cost) at $25,000,000 or more, or
of defense articles or defense services valued (in
terms 
of 
its 
original 
acquisition 
cost) 
at
$100,000,000 or more)’’;
(2) in section 36(b)(1), by adding after ‘‘for
$14,000,000 or more’’ the following: ‘‘(or, in the
case of a letter of offer to sell to a country which
is a member country of the North Atlantic Treaty
Organization (NATO) or Australia, Japan, or New
Zealand, any major defense equipment under this
Act for $25,000,000 or more, any defense articles or
services for $100,000,000 or more, or any design
and construction services for $300,000,000 or
more)’’;
201
(3) in section 36(b)(5)(C), by adding after ‘‘or
$200,000,000 or more in the case of design or con-
struction services’’ the following: ‘‘(or, in the case of
a letter of offer to sell to a country which is a mem-
ber country of the North Atlantic Treaty Organiza-
tion (NATO) or Australia, Japan, or New Zealand,
any major defense equipment for $25,000,000 or
more, 
any 
defense 
articles 
or 
services 
for
$100,000,000 or more, or any design and construc-
tion services for $300,000,000 or more)’’;
(4) in section 36(c)(1), by adding after
‘‘$50,000,000 or more’’ the following: ‘‘(or, in the
case of an application by a person (other than with
regard to a sale under section 21 or section 22 of
this Act) for a license for the export to a country
which is a member country of the North Atlantic
Treaty Organization (NATO) or Australia, Japan,
or New Zealand, of any major defense equipment
sold under a contract in the amount of $25,000,000
or more or of defense articles or defense services
sold 
under 
a 
contract 
in 
the 
amount 
of
$100,000,000 or more)’’; and
(5) 
in 
section 
63(a), 
by 
adding 
after
‘‘$50,000,000 or more’’ the following: ‘‘(or, in the
case of such an agreement with a country which is
202
a member country of the North Atlantic Treaty Or-
ganization (NATO) or Australia, Japan, or New
Zealand: (i) major defense equipment valued (in
terms of its replacement cost less any depreciation
in its value) at $25,000,000 or more; or (ii) defense
articles valued (in terms of their replacement cost
less any depreciation in their value) at $100,000,000
or more)’’.
Subtitle C—Authority to Transfer
Naval Vessels
SEC. 851. AUTHORITY TO TRANSFER NAVAL VESSELS TO
CERTAIN FOREIGN COUNTRIES.
(a) AUTHORITY TO TRANSFER.—
(1) BRAZIL.—The President is authorized to
transfer to the Government of Brazil the ‘‘Newport’’
class tank landing ship Peoria (LST 1183). Such
transfer shall be on a sale basis under section 21 of
the Arms Export Control Act (22 U.S.C. 2761).
(2) POLAND.—The President is authorized to
transfer to the Government of Poland the ‘‘Oliver
Hazard Perry’’ class guided missile frigate Wads-
worth (FFG 9). Such transfer shall be on a grant
basis under section 516 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2321j).
203
(3) TAIWAN.—The President is authorized to
transfer to the Taipai Economic and Cultural Rep-
resentative Office in the United States (which is the
Taiwan instrumentality designated pursuant to sec-
tion 10(a) of the Taiwan Relations Act) the ‘‘Kidd’’
class guided missile destroyers Kidd (DDG 993),
Callaghan (DDG 994), Scott (DDG 995), and Chan-
dler (DDG 996). Such transfers shall be on a sales
basis under section 21 of the Arms Export Control
Act (22 U.S.C. 2761).
(4) TURKEY.—The President is authorized to
transfer to the ‘‘Oliver Hazard Perry’’ class guided
missile frigates Estocin (FFG 15) and Samuel Eliot
Morrison (FFG 13). Each such transfer shall be on
a sale basis under section 21 of the Arms Export
Control Act (22 U.S.C. 2761). The President is fur-
ther authorized to transfer to the Government of
Turkey the ‘‘Knox’’ class frigates Capadanno (FF
1093), Thomas C. Hart (FF 1092), Donald B.
Beary (FF 1085), McCandless (FF 1084), Reasoner
(FF 1063), and Bowen (FF 1079). The transfer of
these 6 ‘‘Knox’’ class frigates shall be on a grant
basis under section 516 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2321j).
204
(b) GRANTS NOT COUNTED IN ANNUAL TOTAL OF
TRANSFERRED EXCESS DEFENSE ARTICLES.—The value
of a vessel transferred to another country on a grant basis
under section 516 of the Foreign Assistance Act of 1961
(22 U.S.C. 2321j) pursuant to authority provided by sub-
section (a) shall not be counted for the purposes of sub-
section (g) of that section in the aggregate value of excess
defense articles transferred to countries under that section
in any fiscal year.
(c) COSTS OF TRANSFERS.—Notwithstanding section
516(e)(1) of the Foreign Assistance Act of 1961 (22
U.S.C. 2321j(e)(1)), any expense incurred by the United
States in connection with a transfer authorized to be made
on a grant basis under subsection (a) shall be charged to
the recipient.
(d) REPAIR
AND
REFURBISHMENT
IN
UNITED
STATES SHIPYARDS.—To the maximum extent prac-
ticable, the President shall require, as a condition of the
transfer of a vessel under this section, that the country
to which the vessel is transferred have such repair or re-
furbishment of the vessel as is needed, before the vessel
joins the naval forces of that country, performed at a
United States Navy shipyard or other shipyard located in
the United States.
205
(e) EXPIRATION OF AUTHORITY.—The authority pro-
vided under subsection (a) shall expire at the end of the
2-year period beginning on the date of the enactment of
this Act.
Subtitle D—Miscellaneous
Provisions
SEC. 861. ANNUAL FOREIGN MILITARY TRAINING REPORTS.
Section 656(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2416), is amended—
(1) by striking ‘‘Not later than January 31 of
each year,’’ and inserting ‘‘Upon written request by
the chairman or ranking member of the Committee
on International Relations of the House of Rep-
resentatives or the Committee on Foreign Relations
of the Senate,’’; and
(2) by inserting ‘‘of a country specified in the
request’’ after ‘‘personnel’’.
SEC. 862. REPORT RELATING TO INTERNATIONAL ARMS
SALES CODE OF CONDUCT.
Section 1262(c) of the Admiral James W. Nance and
Meg Donovan Foreign Relations Authorization Act, Fiscal
Years 2000 and 2001 (as enacted by section 1000(a)(7)
of Public Law 106–113; 113 Stat 1501A–508), is
amended—
(1) in paragraph (1)—
206
(A) by striking ‘‘commencement of the ne-
gotiations under subsection (a),’’ and inserting
‘‘date of the enactment of the Foreign Relations
Authorization Act, Fiscal Years 2002 and
2003,’’; and
(B) by striking ‘‘during these negotia-
tions.’’ and inserting ‘‘to begin negotiations and
any progress made to conclude an agreement
during negotiations.’’; and
(2) in paragraph (2), by striking ‘‘subsection
(a)’’ and inserting ‘‘subsection (b)’’.
SEC. 863. ASSISTANCE TO LEBANON.
(a) MILITARY ASSISTANCE.—Notwithstanding any
other provision of law, the President shall not provide as-
sistance under chapter 5 of part II of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2347 et seq.; relating to
international military education and training) to the
armed forces of the Government of Lebanon unless the
President certifies to the appropriate congressional com-
mittees that—
(1) the armed forces of Lebanon have been de-
ployed to the internationally recognized border be-
tween Lebanon and Israel; and
207
(2) the Government of Lebanon is effectively
asserting its authority in the area in which such
forces have been deployed.
(b) ECONOMIC ASSISTANCE.—If the President has
not made the certification described in subsection (a) with-
in 6 months after the date of the enactment of this Act,
the President shall provide to the appropriate congres-
sional committees a plan to terminate assistance to Leb-
anon provided under chapter 4 of part II of the Foreign
Assistance Act of 1961 (22 U.S.C. 2346 et seq.; relating
to the economic support fund).
TITLE IX—IRAN NUCLEAR PRO-
LIFERATION 
PREVENTION
ACT OF 2001
SEC. 901. SHORT TITLE.
This title may be cited as the ‘‘Iran Nuclear Pro-
liferation Prevention Act of 2001’’.
SEC. 902. WITHHOLDING OF VOLUNTARY CONTRIBUTIONS
TO THE INTERNATIONAL ATOMIC ENERGY
AGENCY FOR PROGRAMS AND PROJECTS IN
IRAN.
Section 307 of the Foreign Assistance Act of 1961
(22 U.S.C. 2227), is amended by adding at the end the
following:
208
‘‘(d) Notwithstanding subsection (c), the limitations
of subsection (a) shall apply to programs and projects of
the International Atomic Energy Agency in Iran, unless
the Secretary of State makes a determination in writing
to the Committee on International Relations of the House
of Representatives and the Committee on Foreign Rela-
tions of the Senate that such programs and projects are
consistent with United States nuclear nonproliferation and
safety goals, will not provide Iran with training or exper-
tise relevant to the development of nuclear weapons, and
are not being used as a cover for the acquisition of sen-
sitive nuclear technology. A determination made by the
Secretary of State under the preceding sentence shall be
effective for the 1-year period beginning on the date of
the determination.’’.
SEC. 903. ANNUAL REVIEW BY SECRETARY OF STATE OF
PROGRAMS AND PROJECTS OF THE INTER-
NATIONAL ATOMIC ENERGY AGENCY; UNITED
STATES OPPOSITION TO PROGRAMS AND
PROJECTS OF THE AGENCY IN IRAN.
(a) ANNUAL REVIEW.—
(1) IN GENERAL.—The Secretary of State shall
undertake a comprehensive annual review of all pro-
grams and projects of the International Atomic En-
ergy Agency in the countries described in section
209
307(a) of the Foreign Assistance Act of 1961 (22
U.S.C. 2227(a)) and shall determine if such pro-
grams and projects are consistent with United
States nuclear nonproliferation and safety goals.
(2) REPORT.—Not later than 1 year after the
date of the enactment of this Act and on an annual
basis thereafter for 5 years, the Secretary shall pre-
pare and submit to the Congress a report containing
the results of the review under paragraph (1).
(b) OPPOSITION
TO
CERTAIN
PROGRAMS
AND
PROJECTS OF INTERNATIONAL ATOMIC ENERGY AGEN-
CY.—The Secretary of State shall direct the United States
representative to the International Atomic Energy Agency
to oppose programs of the Agency that are determined by
the Secretary under the review conducted under sub-
section (a)(1) to be inconsistent with nuclear nonprolifera-
tion and safety goals of the United States.
SEC. 904. REPORTING REQUIREMENTS.
(a) IN GENERAL.—Not later than 180 days after the
date of the enactment of this Act and on an annual basis
thereafter for 5 years, the Secretary of State, in consulta-
tion with the United States representative to the Inter-
national Atomic Energy Agency, shall prepare and submit
to the Congress a report that—
210
(1) describes the total amount of annual assist-
ance to Iran from the International Atomic Energy
Agency, a list of Iranian officials in leadership posi-
tions at the Agency, the expected timeframe for the
completion of the nuclear power reactors at the
Bushehr nuclear power plant, and a summary of the
nuclear materials and technology transferred to Iran
from the Agency in the preceding year which could
assist in the development of Iran’s nuclear weapons
program; and
(2) contains a description of all programs and
projects of the International Atomic Energy Agency
in each country described in section 307(a) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2227(a))
and any inconsistencies between the technical co-
operation and assistance programs and projects of
the Agency and United States nuclear nonprolifera-
tion and safety goals in these countries.
(b) ADDITIONAL REQUIREMENT.—The report re-
quired to be submitted under subsection (a) shall be sub-
mitted in an unclassified form, to the extent appropriate,
but may include a classified annex.
SEC. 905. SENSE OF CONGRESS.
It is the sense of the Congress that the United States
Government should pursue internal reforms at the Inter-
211
national Atomic Energy Agency that will ensure that all
programs and projects funded under the Technical Co-
operation and Assistance Fund of the Agency are compat-
ible with United States nuclear nonproliferation policy and
international nuclear nonproliferation norms.
TITLE X—EAST TIMOR TRANSI-
TION TO INDEPENDENCE ACT
OF 2001
SEC. 1001. SHORT TITLE.
This title may be cited as the ‘‘East Timor Transition
to Independence Act of 2001’’.
SEC. 1002. FINDINGS.
Congress makes the following findings:
(1) On August 30, 1999, the East Timorese
people voted overwhelmingly in favor of independ-
ence from Indonesia. Anti-independence militias,
with the support of the Indonesian military, at-
tempted to prevent then retaliated against this vote
by launching a campaign of terror and violence, dis-
placing 500,000 people and murdering at least
1,000 people.
(2) The violent campaign devastated East
Timor’s infrastructure, destroyed or severely dam-
aged 60 to 80 percent of public and private prop-
erty, and resulted in the collapse of virtually all
212
vestiges of government, public services and public se-
curity.
(3) The Australian-led International Force for
East Timor (INTERFET) entered East Timor in
September 1999 and successfully restored order. On
October 25, 1999, the United Nations Transitional
Administration for East Timor (UNTAET) began to
provide overall administration of East Timor, guide
the people of East Timor in the establishment of a
new democratic government, and maintain security
and order.
(4) UNTAET and the East Timorese leader-
ship currently anticipate that East Timor will be-
come an independent nation as early as late 2001.
(5) East Timor is one of the poorest places in
Asia. A large percentage of the population live below
the poverty line, only 20 percent of East Timor’s
population is literate, most of East Timor’s people
remain unemployed, the annual per capita Gross Na-
tional Product is $340, and life expectancy is only
56 years.
(6) The World Bank and the United Nations
have estimated that it will require $300,000,000 in
development assistance over the next 3 years to meet
East Timor’s basic development needs.
213
SEC. 1003. SENSE OF CONGRESS RELATING TO SUPPORT
FOR EAST TIMOR.
It is the sense of Congress that the United States
should—
(1) facilitate East Timor’s transition to inde-
pendence, support formation of broad-based democ-
racy in East Timor, help lay the groundwork for
East Timor’s economic recovery, and strengthen
East Timor’s security;
(2) help ensure that the nature and pace of the
economic transition in East Timor is consistent with
the needs and priorities of the East Timorese people,
that East Timor develops a strong and independent
economic infrastructure, and that the incomes of the
East Timorese people rise accordingly;
(3) begin to lay the groundwork, prior to East
Timor’s independence, for an equitable bilateral
trade and investment relationship;
(4)(A) recognize East Timor, and establish dip-
lomatic relations with East Timor, upon its inde-
pendence;
(B) ensure that a fully functioning, fully
staffed, adequately resourced, and securely main-
tained United States diplomatic mission is accred-
ited to East Timor upon its independence; and
214
(C) in the period prior to East Timor’s inde-
pendence, ensure that the United States maintains
an adequate diplomatic presence in East Timor, with
resources sufficient to promote United States polit-
ical, security, and economic interests with East
Timor;
(5) support efforts by the United Nations and
East Timor to ensure justice and accountability re-
lated to past atrocities in East Timor through—
(A) United Nations investigations;
(B) development of East Timor’s judicial
system, including appropriate technical assist-
ance to East Timor from the Department of
Justice, the Federal Bureau of Investigation,
and the Drug Enforcement Administration;
(C) the possible establishment of an inter-
national tribunal for East Timor; and
(D) sharing with the United Nations Tran-
sitional 
Administration 
for 
East 
Timor
(UNTAET) and East Timorese investigators
any unclassified information relevant to past
atrocities in East Timor gathered by the United
States Government; and
(6)(A) as an interim step, support observer sta-
tus for an official delegation from East Timor to ob-
215
serve and participate, as appropriate, in all delibera-
tions of the Asia-Pacific Economic Cooperation
(APEC) group, the Association of Southeast Asian
Nations (ASEAN), and other international institu-
tions; and
(B) after East Timor achieves independence,
support full membership for East Timor in these
and other international institutions, as appropriate.
SEC. 1004. BILATERAL ASSISTANCE.
(a) AUTHORITY.—The President, acting through the
Administrator of the United States Agency for Inter-
national Development, is authorized to—
(1) support the development of civil society, in-
cluding nongovernmental organizations in East
Timor;
(2) promote the development of an independent
news media;
(3) support job creation, including support for
small business and microenterprise programs, envi-
ronmental protection, sustainable development, de-
velopment of East Timor’s health care infrastruc-
ture, educational programs, and programs strength-
ening the role of women in society;
(4) promote reconciliation, conflict resolution,
and prevention of further conflict with respect to
216
East Timor, including establishing accountability for
past gross human rights violations;
(5) support the voluntary and safe repatriation
and reintegration of refugees into East Timor; and
(6) support political party development, voter
education, voter registration, and other activities in
support of free and fair elections in East Timor.
(b) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be
appropriated to the President to carry out this sec-
tion $25,000,000 for fiscal year 2002.
(2) AVAILABILITY.—Amounts appropriated pur-
suant to the authorization of appropriations under
paragraph (1) are authorized to remain available
until expended.
SEC. 1005. MULTILATERAL ASSISTANCE.
The Secretary of the Treasury should instruct the
United States executive director at the International
Board for Reconstruction and Development and the Asian
Development Bank to use the voice, vote, and influence
of the United States to support economic and democratic
development in East Timor.
SEC. 1006. PEACE CORPS ASSISTANCE.
The Director of the Peace Corps is authorized to—
217
(1) provide English language and other tech-
nical training for individuals in East Timor as well
as other activities which promote education, eco-
nomic development, and economic self-sufficiency;
and
(2) quickly address immediate assistance needs
in East Timor using the Peace Corps Crisis Corps,
to the extent practicable.
SEC. 1007. TRADE AND INVESTMENT ASSISTANCE.
(a) OPIC.—The President should initiate negotia-
tions with the Government of East Timor (after independ-
ence for East Timor)—
(1) to apply to East Timor the existing agree-
ment between the Overseas Private Investment Cor-
poration and Indonesia; or
(2) to enter into a new agreement authorizing
the Overseas Private Investment Corporation to
carry out programs with respect to East Timor,
in order to expand United States investment in East
Timor, emphasizing partnerships with local East Timorese
enterprises.
(b) TRADE AND DEVELOPMENT AGENCY.—
(1) IN GENERAL.—The Director of the Trade
and Development Agency is authorized to carry out
218
projects in East Timor under section 661 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2421).
(2) AUTHORIZATION OF APPROPRIATIONS.—
(A) IN GENERAL.—There are authorized to
be appropriated to the Trade and Development
Agency to carry out this subsection $1,000,000
for fiscal year 2002.
(B) 
AVAILABILITY.—Amounts 
appro-
priated pursuant to the authorization of appro-
priations under subparagraph (A) are author-
ized to remain available until expended.
(c) EXPORT-IMPORT
BANK.—The Export-Import
Bank of the United States should expand its activities in
connection with exports to East Timor to the extent such
activities are requested and to the extent there is a reason-
able assurance of repayment.
SEC. 1008. GENERALIZED SYSTEM OF PREFERENCES.
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the President should encourage the Government
of East Timor (after independence for East Timor) to
seek to become eligible for duty-free treatment under title
V of the Trade Act of 1974 (19 U.S.C. 2461 et seq.; relat-
ing to generalized system of preferences).
(b) TECHNICAL ASSISTANCE.—The United States
Trade Representative and the Commissioner of the United
219
States Customs Service are authorized to provide technical
assistance to the Government of East Timor (after inde-
pendence for East Timor) in order to assist East Timor
to become eligible for duty-free treatment under title V
of the Trade Act of 1974.
SEC. 1009. BILATERAL INVESTMENT TREATY.
It is the sense of Congress that the President should
seek to enter into a bilateral investment treaty with the
Government of East Timor (after independence for East
Timor) in order to establish a more stable legal framework
for United States investment in East Timor.
SEC. 1010. PLAN FOR ESTABLISHMENT OF DIPLOMATIC FA-
CILITIES IN EAST TIMOR.
(a) DEVELOPMENT OF DETAILED PLAN.—The Sec-
retary of State shall develop a detailed plan for the official
establishment of a United States diplomatic mission to
East Timor, with a view to—
(1) recognize East Timor, and establish diplo-
matic relations with East Timor, upon its independ-
ence;
(2) ensure that a fully functioning, fully staffed,
adequately resourced, and securely maintained
United States diplomatic mission is accredited to
East Timor upon its independence; and
220
(3) in the period prior to East Timor’s inde-
pendence, ensure that the United States maintains
an adequate diplomatic presence in East Timor, with
resources sufficient to promote United States polit-
ical, security, and economic interests with East
Timor.
(b) REPORT.—
(1) IN
GENERAL.—Not later than 3 months
after the date of the enactment of this Act, the Sec-
retary of State shall submit to the Committee on
International Relations of the House of Representa-
tives and the Committee on Foreign Relations of the
Senate a report that contains the detailed plan de-
scribed in subsection (a), including a timetable for
the official opening of a facility in Dili, East Timor,
the personnel requirements for the mission, the esti-
mated costs for establishing the facility, and its se-
curity requirements.
(2) FORM OF REPORT.—The report submitted
under this subsection shall be in unclassified form,
with a classified annex as necessary.
(c) CONSULTATION.—Beginning 6 months after the
submission of the report under subsection (b), and every
6 months thereafter until January 1, 2004, the Secretary
of State shall consult with the chairmen and ranking mem-
221
bers of the committees specified in that paragraph on the
status of the implementation of the detailed plan described
in subsection (a), including any revisions to the plan (in-
cluding its timetable, costs, or requirements).
SEC. 1011. SECURITY ASSISTANCE FOR EAST TIMOR.
(a) STUDY AND REPORT.—
(1) STUDY.—The President shall conduct a
study to determine—
(A) the extent to which East Timor’s secu-
rity needs can be met by the transfer of excess
defense articles under section 516 of the For-
eign Assistance Act of 1961;
(B) the extent to which international mili-
tary education and training (IMET) assistance
will enhance professionalism of the armed
forces of East Timor, provide training in
human rights, and promote respect for human
rights and humanitarian law; and
(C) the terms and conditions under which
such defense articles or training, as appro-
priate, should be provided.
(2) REPORT.—Not later than 3 months after
the date of the enactment of this Act, the President
shall transmit to the Committee on Foreign Rela-
tions and the Committee on Appropriations of the
222
Senate and the Committee on International Rela-
tions and the Committee on Appropriations of the
House of Representatives a report that contains the
findings of the study conducted under paragraph
(1).
(b) AUTHORIZATION OF ASSISTANCE.—
(1) IN GENERAL.—Beginning on the date on
which Congress receives the report transmitted
under subsection (a), or the date on which Congress
receives the certification transmitted under para-
graph (2), whichever occurs later, the President is
authorized—
(A) to transfer excess defense articles
under section 516 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2321j) to East Timor
in accordance with such section; and
(B) to provide military education and
training under chapter 5 of part II of such Act
(22 U.S.C. 2347 et seq.) for the armed forces
of East Timor in accordance with such chapter.
(2) CERTIFICATION.—A certification described
in this paragraph is a certification that—
(A) East Timor has established an inde-
pendent armed forces; and
223
(B) the assistance proposed to be provided
pursuant to paragraph (1)—
(i) is in the national security interests
of the United States; and
(ii) will promote both human rights in
East Timor and the professionalization of
the armed forces of East Timor.
SEC. 1012. AUTHORITY FOR RADIO BROADCASTING.
The Broadcasting Board of Governors is authorized
to further the communication of information and ideas
through the increased use of audio broadcasting to East
Timor to ensure that radio broadcasting to that country
serves as a consistently reliable and authoritative source
of accurate, objective, and comprehensive news.
SEC. 1013. CONSULTATION REQUIREMENT.
(a) IN GENERAL.—Not later than 6 months after the
date of the enactment of this Act, and every 6 months
thereafter until January 1, 2004, the Secretary of State,
in coordination with the Administrator of the United
States Agency for International Development, the Sec-
retary of the Treasury, the United States Trade Rep-
resentative, the Secretary of Commerce, the Overseas Pri-
vate Investment Corporation, the Director of the Trade
and Development Agency, the President of the Export-Im-
port Bank of the United States, the Secretary of Agri-
224
culture, and the Director of the Peace Corps, shall consult
with the Chairman and ranking member of the Committee
on International Relations of the House of Representa-
tives and the Committee on Foreign Relations of the Sen-
ate concerning the information described in subsection (b).
(b) INFORMATION.—The information described in
this subsection includes—
(1) developments in East Timor’s political and
economic situation in the period covered by the re-
port, including an evaluation of any elections occur-
ring in East Timor and the refugee reintegration
process in East Timor;
(2)(A) in the initial consultation, a 2-year plan
for United States foreign assistance to East Timor
in accordance with section 904, prepared by the Ad-
ministrator of the United States Agency for Inter-
national Development, which outlines the goals for
United States foreign assistance to East Timor dur-
ing the 2-year period; and
(B) in each subsequent consultation, a descrip-
tion in detail of the expenditure of United States bi-
lateral foreign assistance during the period covered
by each such consultation;
(3) a description of the activities undertaken in
East Timor by the International Bank for Recon-
225
struction and Development, the Asian Development
Bank, and other international financial institutions,
and an evaluation of the effectiveness of these activi-
ties;
(4) an assessment of—
(A) the status of United States trade and
investment relations with East Timor, including
a detailed analysis of any trade and investment-
related activity supported by the Overseas Pri-
vate Investment Corporation, the Export-Im-
port Bank of the United States, and the Trade
and Development Agency during the period of
time since the previous consultation; and
(B) the status of any negotiations with the
United Nations Transitional Administration for
East Timor (UNTAET) or East Timor to fa-
cilitate the operation of the United States trade
agencies in East Timor;
(5) the nature and extent of United States-East
Timor cultural, education, scientific, and academic
exchanges, both official and unofficial, and any
Peace Corps activities;
(6) a description of local agriculture in East
Timor, emerging opportunities for producing, proc-
essing, and exporting indigenous agricultural prod-
226
ucts, and recommendations for appropriate technical
assistance from the United States; and
(7) statistical data drawn from other sources on
economic growth, health, education, and distribution
of resources in East Timor.
TITLE XI—FREEDOM
INVESTMENT ACT OF 2001
SEC. 1101. SHORT TITLE.
This title may be cited as the ‘‘Freedom Investment
Act of 2001’’.
SEC. 1102. FINDINGS.
Congress finds the following:
(1) Supporting human rights is in the national
interests of the United States and is consistent with
American values and beliefs.
(2) Defenders of human rights are changing
our world in many ways, including protecting free-
dom and dignity, religious liberty, the rights of
women and children, freedom of the press, the rights
of workers, the environment, and the human rights
of all persons.
(3) The United States must match its rhetoric
on human rights with action and with sufficient re-
sources to provide meaningful support for human
rights and for the defenders of human rights.
227
(4) Providing one percent of amounts available
annually for foreign affairs operations for human
rights activities, including human rights monitoring,
would be a minimal investment in protecting human
rights around the world.
(5) The Department of State should have indi-
viduals in positions in foreign countries that are des-
ignated for monitoring human rights activities and
developments in such countries, including the moni-
toring of arms exports.
SEC. 1103. SALARIES AND EXPENSES OF THE BUREAU OF
DEMOCRACY, HUMAN RIGHTS, AND LABOR.
For fiscal year 2004 and each fiscal year thereafter,
not less than 1 percent of the amounts made available to
the Department of State under the heading ‘‘Diplomatic
and Consular Programs’’, other than amounts made avail-
able for worldwide security upgrades and information re-
source management, are authorized to be made available
only for salaries and expenses of the Bureau of Democ-
racy, Human Rights, and Labor, including funding of po-
sitions at United States missions abroad that are pri-
marily dedicated to following human rights developments
in foreign countries and that are assigned at the rec-
ommendation of such Bureau in conjunction with the rel-
evant regional bureau.
228
SEC. 1104. HUMAN RIGHTS AND DEMOCRACY FUND.
(a) ESTABLISHMENT
OF FUND.—There is estab-
lished a Human Rights and Democracy Fund (hereinafter
in this section referred to as the ‘‘Fund’’) to be adminis-
tered by the Assistant Secretary for Democracy, Human
Rights and Labor.
(b) PURPOSES OF FUND.—The purposes of the Fund
are—
(1) to support defenders of human rights;
(2) to assist the victims of human rights viola-
tions;
(3) to respond to human rights emergencies;
(4) to promote and encourage the growth of de-
mocracy, including the support for nongovernmental
organizations in other countries; and
(5) to carry out such other related activities as
are consistent with paragraphs (1) through (4).
(c) FUNDING.—Of the amounts made available to
carry out chapter 1 and chapter 10 of part I of the For-
eign Assistance Act of 1961 and chapter 4 of part II of
such Act for each of the fiscal years 2002, 2003, and
2004, $27,000,000 for each such fiscal year is authorized
to be made available only to the Fund for carrying out
the purposes described in subsection (b).
229
SEC. 1105. REPORTS ON ACTIONS TAKEN BY THE UNITED
STATES 
TO 
ENCOURAGE 
RESPECT 
FOR
HUMAN RIGHTS.
(a) SECTION 116 REPORT.—Section 116(d) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2151n(d)), is
amended—
(1) in paragraph (7), by striking ‘‘and’’ at the
end and inserting a semicolon;
(2) in paragraph (8), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(9) for each country with respect to which a
determination has been made that extrajudicial
killings, torture, or other serious violations of human
rights have occurred in the country, the extent to
which the United States has taken or will take ac-
tion to encourage an end to such practices in the
country.’’.
(b) SECTION 502B REPORT.—Section 502B(b) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2304(b)), is
amended by inserting after the 4th sentence the following:
‘‘Such report shall also include, for each country with re-
spect to which a determination has been made that
extrajudicial killings, torture, or other serious violations
of human rights have occurred in the country, the extent
107TH CONGRESS
1ST SESSION
H. R. 1646
AN ACT
To authorize appropriations for the Department of
State for fiscal years 2002 and 2003, and for
other purposes.