265
(A) by striking out ‘‘, no credits or guaran-
tees may be extended,’’; and
(B) by inserting ‘‘and no assistance admin-
istered through the Department of Defense may
be furnished under the Peace, Prosperity, and
Democracy Act of 1994’’ after ‘‘this Act’’.
(7) Section 21 is amended—
(A) by amending (a)(1)(c) to read as fol-
lows, ‘‘in the case of the sale of a defense serv-
ice, the full cost to the United States Govern-
ment of furnishing such service, except that in
the case of training sold to a purchaser that is
concurrently receiving assistance under the
Peace, Prosperity, and Democracy Act of 1994
or is separately justified for the fiscal year in
which the associated letter of offer is issued,
only those additional costs that are incurred by
the United States in furnishing such training’’;
(B) by amending subsection (c)(1) to read
as follows:
‘‘(A) Members of the Armed Forces as-
signed or detailed to provide defense services
under this Act may not perform duties of a
combatant nature, including any duty related to
training and advising that may engage United
266
States Armed Forces personnel in combat ac-
tivities, outside the United States in connection
with the performance of those defense services.
‘‘(B) Subparagraph (A) shall not apply if
the President determines, and reports to the
Congress, that its application would not be in
the national interest of the United States.’’; and
(C) in subsection (e)—
(i) by deleting subparagraph (1)(B);
(ii) by deleting ‘‘(C)’’ in subparagraph
(1)(c) and inserting in lieu thereof ‘‘(D)’’;
(iii) by deleting paragraph (2); and
(iv) by deleting ‘‘(3’’ and inserting in
lieu thereof ‘‘(2)’’.
(8) Section 23 is repealed.
(9) Section 24 is amended—
(A) by amending the section caption to
read ‘‘Provisions Relating to Former Credit and
Guaranty Authorities’’;
(B) in subsection (a), by striking out
‘‘The’’ in the first sentence and inserting in lieu
thereof ‘‘To the extent necessary to carry out
the provisions under the heading ‘‘Foreign Mili-
tary Sales Debt Reform’’ in title III of the For-
eign Operations, Export Financing, and Related
267
Programs Appropriations Act, 1988 (as con-
tained in section 101(e) of Public Law 100–
202), the’’;
(C) in subsection (b) by inserting ‘‘be-
fore the effective date of the Peace, Pros-
perity, and Democracy Act of 1994’’ after
‘‘section 23’’; and
(D) by striking out subsection (c) and
inserting in lieu thereof the following:
‘‘(c) The single reserve established under this section
for the payment of claims under guarantees issued under
the authority of this section may be referred to as the
‘Foreign Military Loan Liquidating Account’.
‘‘(d) Any guarantees issued under the authority of
this section are backed by the full faith and credit of the
United States.’’.
(10) Section 25(a) is amended—
(A) in paragraph (5)(A) by striking out
‘‘military education’’ and all that follows
through ‘‘guarantees,’’ and inserting in lieu
thereof ‘‘and assistance administered through
the Department of Defense under the Peace,
Prosperity, and Democracy Act of 1994,’’;
(B) in paragraph (5)(B) by striking out
‘‘credits or guaranties under this Act’’ and in-
268
serting in lieu thereof ‘‘assistance administered
through the Department of Defense under the
Peace, Prosperity, and Democracy Act of
1994’’; and
(C) in paragraph (11) by inserting before
the semicolon at the end of the paragraph the
following: ‘‘, and the status of each provision of
assistance administered through the Depart-
ment of Defense for the procurement of defense
articles or defense services under the Peace,
Prosperity, and Democracy Act of 1994 with
respect to which there remains outstanding any
unpaid obligation or potential liability’’.
(11) Section 25(d), as added by 112(b) of the
International Security and Development Cooperation
Act of 1985, is amended by striking out ‘‘under this
Act or under section 503(a)(3) of the Foreign As-
sistance Act of 1961’’ and inserting in lieu thereof
‘‘with assistance administered through the Depart-
ment of Defense under the Peace, Prosperity, and
Democracy Act of 1994’’.
(12) Section 31 is amended—
(A) by striking out ‘‘Authorization and Ag-
gregate Ceiling on Foreign Military Sales Cred-
269
its.’’ and all that follows through ‘‘(d)’’ and in-
serting in lieu thereof ‘‘Aggregate Costs’’; and
(B) by striking out ‘‘of chapter 2 of part
II of the Foreign Assistance Act of 1961’’ and
inserting in lieu thereof ‘‘the Peace, Prosperity,
and Democracy Act of 1994’’.
(13) Section 36(a) is amended—
(A) in paragraph (7), by striking out
‘‘under chapters 2, 5, 6 or 8 of part II of the
Foreign Assistance Act of 1961’’ and inserting
in lieu thereof ‘‘assistance administered through
the Department of Defense under the Peace,
Prosperity, and Democracy Act of 1994’’; and
(B) in paragraph (10), by striking out
‘‘section 505(a)(1)(B) of the Foreign Assistance
Act of 1961’’ and inserting in lieu thereof ‘‘sec-
tions 8212 and 8213 of the Peace, Prosperity,
and Democracy Act of 1994’’.
(14) Section 37 is amended—
(A) in the section caption by striking out
‘‘Relating to Foreign Military Sales Credits’’;
(B) in subsection (a), by striking out ‘‘sec-
tion 23’’ and inserting in lieu thereof ‘‘the
former authority of section 23 or under the au-