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democracy in municipalities, or assistance to nongovern-
mental organizations to promote democracy. 
COMMUNITY-BASED POLICE ASSISTANCE 
SEC. 564. (a) AUTHORITY.—Funds made available 
by this Act to carry out the provisions of chapter 1 of 
part I and chapter 4 of part II of the Foreign Assistance 
Act of 1961, may be used, notwithstanding section 660 
of that Act, to enhance the effectiveness and account-
ability of civilian police authority in Jamaica and El Sal-
vador through training and technical assistance in human 
rights, the rule of law, strategic planning, and through as-
sistance to foster civilian police roles that support demo-
cratic governance including assistance for programs to 
prevent conflict and foster improved police relations with 
the communities they serve. 
(b) NOTIFICATION.—Assistance provided under sub-
section (a) shall be subject to the regular notification pro-
cedures of the Committees on Appropriations. 
SPECIAL DEBT RELIEF FOR THE POOREST 
SEC. 565. (a) AUTHORITY TO REDUCE DEBT.—The 
President may reduce amounts owed to the United States 
(or any agency of the United States) by an eligible country 
as a result of—
(1) guarantees issued under sections 221 and 
222 of the Foreign Assistance Act of 1961; or
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(2) credits extended or guarantees issued under 
the Arms Export Control Act. 
(b) LIMITATIONS.—
(1) The authority provided by subsection (a) 
may be exercised only to implement multilateral offi-
cial debt relief and referendum agreements, com-
monly referred to as ‘‘Paris Club Agreed Minutes’’. 
(2) The authority provided by subsection (a) 
may be exercised only in such amounts or to such 
extent as is provided in advance by appropriations 
Acts. 
(3) The authority provided by subsection (a) 
may be exercised only with respect to countries with 
heavy debt burdens that are eligible to borrow from 
the International Development Association, but not 
from the International Bank for Reconstruction and 
Development, commonly referred to as ‘‘IDA-only’’ 
countries. 
(c) CONDITIONS.—The authority provided by sub-
section (a) may be exercised only with respect to a country 
whose government—
(1) does not have an excessive level of military 
expenditures; 
(2) has not repeatedly provided support for acts 
of international terrorism;
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(3) is not failing to cooperate on international 
narcotics control matters; 
(4) (including its military or other security 
forces) does not engage in a consistent pattern of 
gross violations of internationally recognized human 
rights; and 
(5) is not ineligible for assistance because of the 
application of section 527 of the Foreign Relations 
Authorization Act, Fiscal Years 1994 and 1995. 
(d) AVAILABILITY OF FUNDS.—The authority pro-
vided by subsection (a) may be used only with regard to 
the funds appropriated by this Act under the heading 
‘‘Debt Restructuring’’. 
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A re-
duction of debt pursuant to subsection (a) shall not be 
considered assistance for the purposes of any provision of 
law limiting assistance to a country. The authority pro-
vided by subsection (a) may be exercised notwithstanding 
section 620(r) of the Foreign Assistance Act of 1961 or 
section 321 of the International Development and Food 
Assistance Act of 1975. 
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES 
SEC. 566. (a) LOANS ELIGIBLE FOR SALE, REDUC-
TION, OR CANCELLATION.—
(1) AUTHORITY TO SELL, REDUCE, OR CANCEL 
CERTAIN LOANS.—Notwithstanding any other provi-
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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 the Foreign Assist-
ance Act of 1961, to the government of any eligible 
country as defined in section 702(6) of that Act or 
on receipt of payment from an eligible purchaser, re-
duce or cancel such loan or portion thereof, only for 
the purpose of facilitating—
(A) debt-for-equity swaps, debt-for-develop-
ment 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 
that link conservation and sustainable use of 
natural resources with local community develop-
ment, and child survival and other child devel-
opment, in a manner consistent with sections 
707 through 710 of the Foreign Assistance Act 
of 1961, if the sale, reduction, or cancellation