H. R. 2673—159
be made available for programs and countries in the amounts
contained in the table accompanying the joint explanatory state-
ment of the managers accompanying this Act: Provided further,
That any proposed increases or decreases to the amounts contained
in such table shall be subject to the regular notification procedures
of the Committees on Appropriations and section 634A of the For-
eign Assistance Act of 1961 and notifications shall be transmitted
at least 15 days in advance of the obligation of funds.
DEPARTMENT OF THE TREASURY
INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE
For necessary expenses to carry out the provisions of section
129 of the Foreign Assistance Act of 1961, $19,000,000, to remain
available until September 30, 2006, which shall be available not-
withstanding any other provision of law.
DEBT RESTRUCTURING
For the cost, as defined in section 502 of the Congressional
Budget Act of 1974, of modifying loans and loan guarantees, as
the President may determine, for which funds have been appro-
priated or otherwise made available for programs within the Inter-
national Affairs Budget Function 150, including the cost of selling,
reducing, or canceling amounts owed to the United States as a
result of concessional loans made to eligible countries, pursuant
to parts IV and V of the Foreign Assistance Act of 1961, and
of modifying concessional credit agreements with least developed
countries, as authorized under section 411 of the Agricultural Trade
Development and Assistance Act of 1954, as amended, and
concessional loans, guarantees and credit agreements, as authorized
under section 572 of the Foreign Operations, Export Financing,
and Related Programs Appropriations Act, 1989 (Public Law 100–
461), and of canceling amounts owed, as a result of loans or guaran-
tees made pursuant to the Export-Import Bank Act of 1945, by
countries that are eligible for debt reduction pursuant to title V
of H.R. 3425 as enacted into law by section 1000(a)(5) of Public
Law 106–113, $95,000,000, to remain available until September
30, 2006: Provided, That not less than $20,000,000 of the funds
appropriated under this heading shall be made available to carry
out the provisions of part V of the Foreign Assistance Act of 1961:
Provided further, That $75,000,000 of the funds appropriated under
this heading may be used by the Secretary of the Treasury to
pay to the Heavily Indebted Poor Countries (HIPC) Trust Fund
administered by the International Bank for Reconstruction and
Development amounts for the benefit of countries that are eligible
for debt reduction pursuant to title V of H.R. 3425 as enacted
into law by section 1000(a)(5) of Public Law 106–113: Provided
further, That amounts paid to the HIPC Trust Fund may be used
only to fund debt reduction under the enhanced HIPC initiative
by—
(1) the Inter-American Development Bank;
(2) the African Development Fund;
(3) the African Development Bank; and
(4) the Central American Bank for Economic Integration:
Provided further, That funds may not be paid to the HIPC Trust
Fund for the benefit of any country if the Secretary of State has
H. R. 2673—160
credible evidence that the government of such country is engaged
in a consistent pattern of gross violations of internationally recog-
nized human rights or in military or civil conflict that undermines
its ability to develop and implement measures to alleviate poverty
and to devote adequate human and financial resources to that
end: Provided further, That on the basis of final appropriations,
the Secretary of the Treasury shall consult with the Committees
on Appropriations concerning which countries and international
financial institutions are expected to benefit from a United States
contribution to the HIPC Trust Fund during the fiscal year: Pro-
vided further, That the Secretary of the Treasury shall inform
the Committees on Appropriations not less than 15 days in advance
of the signature of an agreement by the United States to make
payments to the HIPC Trust Fund of amounts for such countries
and institutions: Provided further, That the Secretary of the
Treasury may disburse funds designated for debt reduction through
the HIPC Trust Fund only for the benefit of countries that—
(1) have committed, for a period of 24 months, not to
accept new market-rate loans from the international financial
institution receiving debt repayment as a result of such
disbursement, other than loans made by such institutions to
export-oriented commercial projects that generate foreign
exchange which are generally referred to as ‘‘enclave’’ loans;
and
(2) have documented and demonstrated their commitment
to redirect their budgetary resources from international debt
repayments to programs to alleviate poverty and promote eco-
nomic growth that are additional to or expand upon those
previously available for such purposes:
Provided further, That any limitation of subsection (e) of section
411 of the Agricultural Trade Development and Assistance Act
of 1954 shall not apply to funds appropriated under this heading:
Provided further, That none of the funds made available under
this heading in this or any other appropriations Act shall be made
available for Sudan or Burma unless the Secretary of the Treasury
determines and notifies the Committees on Appropriations that
a democratically elected government has taken office.
TITLE III—MILITARY ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
INTERNATIONAL MILITARY EDUCATION AND TRAINING
For necessary expenses to carry out the provisions of section
541 of the Foreign Assistance Act of 1961, $91,700,000, of which
up to $3,000,000 may remain available until expended: Provided,
That the civilian personnel for whom military education and
training may be provided under this heading may include civilians
who are not members of a government whose participation would
contribute to improved civil-military relations, civilian control of
the military, or respect for human rights: Provided further, That
funds appropriated under this heading for military education and
training for Guatemala may only be available for expanded inter-
national military education and training, and funds made available
for Algeria, Cambodia, Nigeria and Guatemala may only be provided
through the regular notification procedures of the Committees on
Appropriations.
H. R. 2673—161
FOREIGN MILITARY FINANCING PROGRAM
(INCLUDING TRANSFER OF FUNDS)
For expenses necessary for grants to enable the President to
carry out the provisions of section 23 of the Arms Export Control
Act, $4,294,000,000: Provided, That of the funds appropriated under
this heading, not less than $2,160,000,000 shall be available for
grants only for Israel, and not less than $1,300,000,000 shall be
made available for grants only for Egypt: Provided further, That
the funds appropriated by this paragraph for Israel shall be dis-
bursed within 30 days of the enactment of this Act: Provided further,
That to the extent that the Government of Israel requests that
funds be used for such purposes, grants made available for Israel
by this paragraph shall, as agreed by Israel and the United States,
be available for advanced weapons systems, of which not less than
$568,000,000 shall be available for the procurement in Israel of
defense articles and defense services, including research and
development: Provided further, That of the funds appropriated by
this paragraph, $206,000,000 should be made available for assist-
ance for Jordan: Provided further, That of the funds appropriated
by this paragraph, $17,000,000 may be transferred to and merged
with funds appropriated under the heading ‘‘Andean Counterdrug
Initiative’’ and made available for aircraft and related assistance
for the Colombian National Police: Provided further, That funds
appropriated by this paragraph shall be nonrepayable notwith-
standing any requirement in section 23 of the Arms Export Control
Act: Provided further, That funds made available under this para-
graph shall be obligated upon apportionment in accordance with
paragraph (5)(C) of section 1501(a) of title 31, United States Code.
None of the funds made available under this heading shall
be available to finance the procurement of defense articles, defense
services, or design and construction services that are not sold by
the United States Government under the Arms Export Control
Act unless the foreign country proposing to make such procurements
has first signed an agreement with the United States Government
specifying the conditions under which such procurements may be
financed with such funds: Provided, That all country and funding
level increases in allocations shall be submitted through the regular
notification procedures of section 515 of this Act: Provided further,
That none of the funds appropriated under this heading shall be
available for assistance for Sudan, Guatemala and Liberia: Provided
further, That funds made available under this heading may be
used, notwithstanding any other provision of law, for demining,
the clearance of unexploded ordnance, and related activities, and
may include activities implemented through nongovernmental and
international organizations: Provided further, That the authority
contained in the previous proviso or any other provision of law
relating to the use of funds for programs under this heading,
including provisions contained in previously enacted appropriations
Acts, shall not apply to activities relating to the clearance of
unexploded ordnance resulting from United States Armed Forces
testing or training exercises: Provided further, That the previous
proviso shall not apply to San Jose Island, Republic of Panama:
Provided further, That only those countries for which assistance
was justified for the ‘‘Foreign Military Sales Financing Program’’
in the fiscal year 1989 congressional presentation for security assist-
ance programs may utilize funds made available under this heading
H. R. 2673—162
for procurement of defense articles, defense services or design and
construction services that are not sold by the United States Govern-
ment under the Arms Export Control Act: Provided further, That
funds appropriated under this heading shall be expended at the
minimum rate necessary to make timely payment for defense arti-
cles and services: Provided further, That not more than $40,500,000
of the funds appropriated under this heading may be obligated
for necessary expenses, including the purchase of passenger motor
vehicles for replacement only for use outside of the United States,
for the general costs of administering military assistance and sales:
Provided further, That not more than $361,000,000 of funds realized
pursuant to section 21(e)(1)(A) of the Arms Export Control Act
may be obligated for expenses incurred by the Department of
Defense during fiscal year 2004 pursuant to section 43(b) of the
Arms Export Control Act, except that this limitation may be
exceeded only through the regular notification procedures of the
Committees on Appropriations: Provided further, That foreign mili-
tary financing program funds estimated to be outlayed for Egypt
during fiscal year 2004 shall be transferred to an interest bearing
account for Egypt in the Federal Reserve Bank of New York within
30 days of enactment of this Act.
PEACEKEEPING OPERATIONS
For necessary expenses to carry out the provisions of section
551 of the Foreign Assistance Act of 1961, $74,900,000: Provided,
That none of the funds appropriated under this heading shall be
obligated or expended except as provided through the regular
notification procedures of the Committees on Appropriations.
TITLE IV—MULTILATERAL ECONOMIC ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
INTERNATIONAL FINANCIAL INSTITUTIONS
GLOBAL ENVIRONMENT FACILITY
For the United States contribution for the Global Environment
Facility, $139,240,000 to the International Bank for Reconstruction
and Development as trustee for the Global Environment Facility,
by the Secretary of the Treasury, to remain available until
expended.
CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT ASSOCIATION
For payment to the International Development Association by
the Secretary of the Treasury, $913,200,000, to remain available
until expended: Provided, That the Secretary of the Treasury shall
work to ensure that the World Bank provides for an independent
entity, such as a private auditing firm, to conduct and make publicly
available an external performance audit which verifies whether
the IDA–13 Spring 2004 performance targets have been met: Pro-
vided further, That any further incentive contribution for additional
contributions for IDA–13 regarding such targets shall be made
only after the Secretary of the Treasury has reviewed and consid-
ered carefully the findings of any such independent external audit.
H. R. 2673—163
CONTRIBUTION TO THE MULTILATERAL INVESTMENT GUARANTEE
AGENCY
For payment to the Multilateral Investment Guarantee Agency
by the Secretary of the Treasury, $1,124,000, for the United States
paid-in share of the increase in capital stock, to remain available
until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS
The United States Governor of the Multilateral Investment
Guarantee Agency may subscribe without fiscal year limitation
for the callable capital portion of the United States share of such
capital stock in an amount not to exceed $4,475,203.
CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS
MULTILATERAL INVESTMENT FUND
For payment to the Enterprise for the Americas Multilateral
Investment Fund by the Secretary of the Treasury, for the United
States contribution to the fund, $25,000,000, to remain available
until expended.
CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND
For the United States contribution by the Secretary of the
Treasury to the increase in resources of the Asian Development
Fund, as authorized by the Asian Development Bank Act, as
amended, $144,421,000, to remain available until expended.
CONTRIBUTION TO THE AFRICAN DEVELOPMENT BANK
For payment to the African Development Bank by the Secretary
of the Treasury, $5,104,930, for the United States paid-in share
of the increase in capital stock, to remain available until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS
The United States Governor of the African Development Bank
may subscribe without fiscal year limitation for the callable capital
portion of the United States share of such capital stock in an
amount not to exceed $79,609,817.
CONTRIBUTION TO THE AFRICAN DEVELOPMENT FUND
For the United States contribution by the Secretary of the
Treasury to the increase in resources of the African Development
Fund, $112,725,000, to remain available until expended.
CONTRIBUTION TO THE EUROPEAN BANK FOR RECONSTRUCTION AND
DEVELOPMENT
For payment to the European Bank for Reconstruction and
Development by the Secretary of the Treasury, $35,431,111 for
the United States share of the paid-in portion of the increase
in capital stock, to remain available until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS
The United States Governor of the European Bank for
Reconstruction and Development may subscribe without fiscal year
H. R. 2673—164
limitation to the callable capital portion of the United States share
of such capital stock in an amount not to exceed $122,085,497.
CONTRIBUTION TO THE INTERNATIONAL FUND FOR AGRICULTURAL
DEVELOPMENT
For the United States contribution by the Secretary of the
Treasury to increase the resources of the International Fund for
Agricultural Development, $15,004,042, to remain available until
expended.
INTERNATIONAL ORGANIZATIONS AND PROGRAMS
For necessary expenses to carry out the provisions of section
301 of the Foreign Assistance Act of 1961, and of section 2 of
the United Nations Environment Program Participation Act of 1973,
$321,650,000: Provided, That none of the funds appropriated under
this heading may be made available to the International Atomic
Energy Agency (IAEA): Provided further, That funds appropriated
under this heading shall be made available for programs and coun-
tries in the amounts contained in the table accompanying the
joint explanatory statement of the managers accompanying this
Act: Provided further, That any proposed increases or decreases
to the amounts contained in such table shall be subject to the
regular notification procedures of the Committees on Appropriations
and section 634A of the Foreign Assistance Act of 1961 and notifica-
tions shall be transmitted at least 15 days in advance of the
obligation of funds.
TITLE V—GENERAL PROVISIONS
COMPENSATION FOR UNITED STATES EXECUTIVE DIRECTORS TO
INTERNATIONAL FINANCIAL INSTITUTIONS
SEC. 501. (a) No funds appropriated by this Act may be made
as payment to any international financial institution while the
United States Executive Director to such institution is compensated
by the institution at a rate which, together with whatever com-
pensation such Director receives from the United States, is in
excess of the rate provided for an individual occupying a position
at level IV of the Executive Schedule under section 5315 of title
5, United States Code, or while any alternate United States Director
to such institution is compensated by the institution at a rate
in excess of the rate provided for an individual occupying a position
at level V of the Executive Schedule under section 5316 of title
5, United States Code.
(b) For purposes of this section, ‘‘international financial institu-
tions’’ are: the International Bank for Reconstruction and Develop-
ment, the Inter-American Development Bank, the Asian Develop-
ment Bank, the Asian Development Fund, the African Development
Bank, the African Development Fund, the International Monetary
Fund, the North American Development Bank, and the European
Bank for Reconstruction and Development.
PRIVATE AND VOLUNTARY ORGANIZATIONS
SEC. 502. None of the funds appropriated or otherwise made
available by this Act for development assistance may be made
available to any United States private and voluntary organization,
H. R. 2673—165
except any cooperative development organization, which obtains
less than 20 percent of its total annual funding for international
activities from sources other than the United States Government:
Provided, That the Administrator of the United States Agency
for International Development, after informing the Committees on
Appropriations, may, on a case-by-case basis, waive the restriction
contained in this subsection, after taking into account the effective-
ness of the overseas development activities of the organization,
its level of volunteer support, its financial viability and stability,
and the degree of its dependence for its financial support on the
agency.
LIMITATION ON RESIDENCE EXPENSES
SEC. 503. Of the funds appropriated or made available pursuant
to this Act, not to exceed $100,500 shall be for official residence
expenses of the United States Agency for International Development
during the current fiscal year: Provided, That appropriate steps
shall be taken to assure that, to the maximum extent possible,
United States-owned foreign currencies are utilized in lieu of dol-
lars.
LIMITATION ON EXPENSES
SEC. 504. Of the funds appropriated or made available pursuant
to this Act, not to exceed $5,000 shall be for entertainment expenses
of the United States Agency for International Development during
the current fiscal year.
LIMITATION ON REPRESENTATIONAL ALLOWANCES
SEC. 505. Of the funds appropriated or made available pursuant
to this Act, not to exceed $125,000 shall be available for representa-
tion allowances for the United States Agency for International
Development during the current fiscal year: Provided, That appro-
priate steps shall be taken to assure that, to the maximum extent
possible, United States-owned foreign currencies are utilized in
lieu of dollars: Provided further, That of the funds made available
by this Act for general costs of administering military assistance
and sales under the heading ‘‘Foreign Military Financing Program’’,
not to exceed $2,000 shall be available for entertainment expenses
and not to exceed $125,000 shall be available for representation
allowances: Provided further, That of the funds made available
by this Act under the heading ‘‘International Military Education
and Training’’, not to exceed $50,000 shall be available for entertain-
ment allowances: Provided further, That of the funds made available
by this Act for the Inter-American Foundation, not to exceed $2,000
shall be available for entertainment and representation allowances:
Provided further, That of the funds made available by this Act
for the Peace Corps, not to exceed a total of $4,000 shall be available
for entertainment expenses: Provided further, That of the funds
made available by this Act under the heading ‘‘Trade and Develop-
ment Agency’’, not to exceed $2,000 shall be available for representa-
tion and entertainment allowances: Provided further, That of the
funds made available by this Act under the heading ‘‘Millennium
Challenge Corporation’’, not to exceed $130,000 shall be available
for representation and entertainment allowances.
H. R. 2673—166
PROHIBITION ON TAXATION OF UNITED STATES ASSISTANCE
SEC. 506. (a) PROHIBITION ON TAXATION.—None of the funds
appropriated by this Act may be made available to provide assist-
ance for a foreign country under a new bilateral agreement gov-
erning the terms and conditions under which such assistance is
to be provided unless such agreement includes a provision stating
that assistance provided by the United States shall be exempt
from taxation, or reimbursed, by the foreign government, and the
Secretary of State shall expeditiously seek to negotiate amendments
to existing bilateral agreements, as necessary, to conform with
this requirement.
(b) REIMBURSEMENT OF FOREIGN TAXES.—An amount equiva-
lent to 200 percent of the total taxes assessed during fiscal year
2004 on funds appropriated by this Act by a foreign government
or entity against commodities financed under United States assist-
ance programs for which funds are appropriated by this Act, either
directly or through grantees, contractors and subcontractors shall
be withheld from obligation from funds appropriated for assistance
for fiscal year 2005 and allocated for the central government of
such country and for the West Bank and Gaza Program to the
extent that the Secretary of State certifies and reports in writing
to the Committees on Appropriations that such taxes have not
been reimbursed to the Government of the United States.
(c) DE MINIMIS EXCEPTION.—Foreign taxes of a de minimis
nature shall not be subject to the provisions of subsection (b).
(d) REPROGRAMMING OF FUNDS.—Funds withheld from obliga-
tion for each country or entity pursuant to subsection (b) shall
be reprogrammed for assistance to countries which do not assess
taxes on United States assistance or which have an effective
arrangement that is providing substantial reimbursement of such
taxes.
(e) DETERMINATIONS.—
(1) The provisions of this section shall not apply to any
country or entity the Secretary of State determines—
(A) does not assess taxes on United States assistance
or which has an effective arrangement that is providing
substantial reimbursement of such taxes; or
(B) the foreign policy interests of the United States
outweigh the policy of this section to ensure that United
States assistance is not subject to taxation.
(2) The Secretary of State shall consult with the Commit-
tees on Appropriations at least 15 days prior to exercising
the authority of this subsection with regard to any country
or entity.
(f) IMPLEMENTATION.—The Secretary of State shall issue rules,
regulations, or policy guidance, as appropriate, to implement the
prohibition against the taxation of assistance contained in this
section.
(g) DEFINITIONS.—As used in this section—
(1) the terms ‘‘taxes’’ and ‘‘taxation’’ refer to value added
taxes and customs duties imposed on commodities financed
with United States assistance for programs for which funds
are appropriated by this Act; and
(2) the term ‘‘bilateral agreement’’ refers to a framework
bilateral agreement between the Government of the United
States and the government of the country receiving assistance
H. R. 2673—167
that describes the privileges and immunities applicable to
United States foreign assistance for such country generally,
or an individual agreement between the Government of the
United States and such government that describes, among other
things, the treatment for tax purposes that will be accorded
the United States assistance provided under that agreement.
(h) RELATIONSHIP TO PRIOR LAW.—Section 579 of division E
of Public Law 108–7 shall be deemed to have been amended by
subsection (f) of this section and the modifications made by this
section to comparable provisions contained in section 579.
PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN COUNTRIES
SEC. 507. None of the funds appropriated or otherwise made
available pursuant to this Act shall be obligated or expended to
finance directly any assistance or reparations to Cuba, Libya, North
Korea, Iran, or Syria: Provided, That for purposes of this section,
the prohibition on obligations or expenditures shall include direct
loans, credits, insurance and guarantees of the Export-Import Bank
or its agents.
MILITARY COUPS
SEC. 508. None of the funds appropriated or otherwise made
available pursuant to this Act shall be obligated or expended to
finance directly any assistance to the government of any country
whose duly elected head of government is deposed by decree or
military coup: Provided, That assistance may be resumed to such
government if the President determines and certifies to the Commit-
tees on Appropriations that subsequent to the termination of assist-
ance a democratically elected government has taken office: Provided
further, That the provisions of this section shall not apply to assist-
ance to promote democratic elections or public participation in
democratic processes: Provided further, That funds made available
pursuant to the previous provisos shall be subject to the regular
notification procedures of the Committees on Appropriations.
TRANSFERS
SEC. 509. (a)(1) LIMITATION ON TRANSFERS BETWEEN AGEN-
CIES.—None of the funds made available by this Act may be trans-
ferred to any department, agency, or instrumentality of the United
States Government, except pursuant to a transfer made by, or
transfer authority provided in, this Act or any other appropriation
Act.
(2) Notwithstanding paragraph (1), in addition to transfers
made by, or authorized elsewhere in, this Act, funds appropriated
by this Act to carry out the purposes of the Foreign Assistance
Act of 1961 may be allocated or transferred to agencies of the
United States Government pursuant to the provisions of sections
109, 610, and 632 of the Foreign Assistance Act of 1961.
(b) TRANSFERS BETWEEN ACCOUNTS.—None of the funds made
available by this Act may be obligated under an appropriation
account to which they were not appropriated, except for transfers
specifically provided for in this Act, unless the President, not less
than five days prior to the exercise of any authority contained
in the Foreign Assistance Act of 1961 to transfer funds, consults
H. R. 2673—168
with and provides a written policy justification to the Committees
on Appropriations of the House of Representatives and the Senate.
(c) AUDIT OF INTER-AGENCY TRANSFERS.—Any agreement for
the transfer or allocation of funds appropriated by this Act, or
prior Acts, entered into between the United States Agency for
International Development and another agency of the United States
Government under the authority of section 632(a) of the Foreign
Assistance Act of 1961 or any comparable provision of law, shall
expressly provide that the Office of the Inspector General for the
agency receiving the transfer or allocation of such funds shall
perform periodic program and financial audits of the use of such
funds: Provided, That funds transferred under such authority may
be made available for the cost of such audits.
COMMERCIAL LEASING OF DEFENSE ARTICLES
SEC. 510. Notwithstanding any other provision of law, and
subject to the regular notification procedures of the Committees
on Appropriations, the authority of section 23(a) of the Arms Export
Control Act may be used to provide financing to Israel, Egypt
and NATO and major non-NATO allies for the procurement by
leasing (including leasing with an option to purchase) of defense
articles from United States commercial suppliers, not including
Major Defense Equipment (other than helicopters and other types
of aircraft having possible civilian application), if the President
determines that there are compelling foreign policy or national
security reasons for those defense articles being provided by
commercial lease rather than by government-to-government sale
under such Act.
AVAILABILITY OF FUNDS
SEC. 511. No part of any appropriation contained in this Act
shall remain available for obligation after the expiration of the
current fiscal year unless expressly so provided in this Act: Pro-
vided, That funds appropriated for the purposes of chapters 1,
8, 11, and 12 of part I, section 667, chapter 4 of part II of the
Foreign Assistance Act of 1961, as amended, section 23 of the
Arms Export Control Act, and funds provided under the heading
‘‘Assistance for Eastern Europe and the Baltic States’’, shall remain
available for an additional 4 years from the date on which the
availability of such funds would otherwise have expired, if such
funds are initially obligated before the expiration of their respective
periods of availability contained in this Act: Provided further, That,
notwithstanding any other provision of this Act, any funds made
available for the purposes of chapter 1 of part I and chapter 4
of part II of the Foreign Assistance Act of 1961 which are allocated
or obligated for cash disbursements in order to address balance
of payments or economic policy reform objectives, shall remain
available until expended.
LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT
SEC. 512. No part of any appropriation contained in this Act
shall be used to furnish assistance to the government of any country
which is in default during a period in excess of one calendar
year in payment to the United States of principal or interest on
any loan made to the government of such country by the United
H. R. 2673—169
States pursuant to a program for which funds are appropriated
under this Act unless the President determines, following consulta-
tions with the Committees on Appropriations, that assistance to
such country is in the national interest of the United States.
COMMERCE AND TRADE
SEC. 513. (a) None of the funds appropriated or made available
pursuant to this Act for direct assistance and none of the funds
otherwise made available pursuant to this Act to the Export-Import
Bank and the Overseas Private Investment Corporation shall be
obligated or expended to finance any loan, any assistance or any
other financial commitments for establishing or expanding produc-
tion of any commodity for export by any country other than the
United States, if the commodity is likely to be in surplus on world
markets at the time the resulting productive capacity is expected
to become operative and if the assistance will cause substantial
injury to United States producers of the same, similar, or competing
commodity: Provided, That such prohibition shall not apply to the
Export-Import Bank if in the judgment of its Board of Directors
the benefits to industry and employment in the United States
are likely to outweigh the injury to United States producers of
the same, similar, or competing commodity, and the Chairman
of the Board so notifies the Committees on Appropriations.
(b) None of the funds appropriated by this or any other Act
to carry out chapter 1 of part I of the Foreign Assistance Act
of 1961 shall be available for any testing or breeding feasibility
study, variety improvement or introduction, consultancy, publica-
tion, conference, or training in connection with the growth or
production in a foreign country of an agricultural commodity for
export which would compete with a similar commodity grown or
produced in the United States: Provided, That this subsection shall
not prohibit—
(1) activities designed to increase food security in devel-
oping countries where such activities will not have a significant
impact on the export of agricultural commodities of the United
States; or
(2) research activities intended primarily to benefit Amer-
ican producers.
SURPLUS COMMODITIES
SEC. 514. The Secretary of the Treasury shall instruct the
United States Executive Directors of the International Bank for
Reconstruction and Development, the International Development
Association, the International Finance Corporation, the Inter-Amer-
ican Development Bank, the International Monetary Fund, the
Asian Development Bank, the Inter-American Investment Corpora-
tion, the North American Development Bank, the European Bank
for Reconstruction and Development, the African Development
Bank, and the African Development Fund to use the voice and
vote of the United States to oppose any assistance by these institu-
tions, using funds appropriated or made available pursuant to this
Act, for the production or extraction of any commodity or mineral
for export, if it is in surplus on world markets and if the assistance
will cause substantial injury to United States producers of the
same, similar, or competing commodity.
H. R. 2673—170
NOTIFICATION REQUIREMENTS
SEC. 515. For the purposes of providing the executive branch
with the necessary administrative flexibility, none of the funds
made available under this Act for ‘‘Child Survival and Health
Programs 
Fund’’, 
‘‘Development 
Assistance’’, 
‘‘International
Organizations and Programs’’, ‘‘Trade and Development Agency’’,
‘‘International Narcotics Control and Law Enforcement’’, ‘‘Andean
Counterdrug Initiative’’, ‘‘Assistance for Eastern Europe and the
Baltic States’’, ‘‘Assistance for the Independent States of the Former
Soviet Union’’, ‘‘Economic Support Fund’’, ‘‘Global HIV/AIDS Initia-
tive’’, ‘‘Peacekeeping Operations’’, ‘‘Capital Investment Fund’’,
‘‘Operating Expenses of the United States Agency for International
Development’’, ‘‘Operating Expenses of the United States Agency
for International Development Office of Inspector General’’, ‘‘Non-
proliferation, Anti-terrorism, Demining and Related Programs’’,
‘‘Millennium Challenge Corporation’’ (by country only), ‘‘Foreign
Military Financing Program’’, ‘‘International Military Education and
Training’’, ‘‘Peace Corps’’, and ‘‘Migration and Refugee Assistance’’,
shall be available for obligation for activities, programs, projects,
type of materiel assistance, countries, or other operations not justi-
fied or in excess of the amount justified to the Committees on
Appropriations for obligation under any of these specific headings
unless the Committees on Appropriations of both Houses of Con-
gress are previously notified 15 days in advance: Provided, That
the President shall not enter into any commitment of funds appro-
priated for the purposes of section 23 of the Arms Export Control
Act for the provision of major defense equipment, other than conven-
tional ammunition, or other major defense items defined to be
aircraft, ships, missiles, or combat vehicles, not previously justified
to Congress or 20 percent in excess of the quantities justified
to Congress unless the Committees on Appropriations are notified
15 days in advance of such commitment: Provided further, That
this section shall not apply to any reprogramming for an activity,
program, or project for which funds are appropriated under title
II of this Act of less than 10 percent of the amount previously
justified to the Congress for obligation for such activity, program,
or project for the current fiscal year: Provided further, That the
requirements of this section or any similar provision of this Act
or any other Act, including any prior Act requiring notification
in accordance with the regular notification procedures of the
Committees on Appropriations, may be waived if failure to do
so would pose a substantial risk to human health or welfare: Pro-
vided further, That in case of any such waiver, notification to
the Congress, or the appropriate congressional committees, shall
be provided as early as practicable, but in no event later than
3 days after taking the action to which such notification requirement
was applicable, in the context of the circumstances necessitating
such waiver: Provided further, That any notification provided pursu-
ant to such a waiver shall contain an explanation of the emergency
circumstances.
LIMITATION ON AVAILABILITY OF FUNDS FOR INTERNATIONAL
ORGANIZATIONS AND PROGRAMS
SEC. 516. Subject to the regular notification procedures of the
Committees on Appropriations, funds appropriated under this Act
or any previously enacted Act making appropriations for foreign
H. R. 2673—171
operations, export financing, and related programs, which are
returned or not made available for organizations and programs
because of the implementation of section 307(a) of the Foreign
Assistance Act of 1961, shall remain available for obligation until
September 30, 2005.
INDEPENDENT STATES OF THE FORMER SOVIET UNION
SEC. 517. (a) None of the funds appropriated under the heading
‘‘Assistance for the Independent States of the Former Soviet Union’’
shall be made available for assistance for a government of an
Independent State of the former Soviet Union—
(1) unless that government is making progress in imple-
menting comprehensive economic reforms based on market
principles, private ownership, respect for commercial contracts,
and equitable treatment of foreign private investment; and
(2) if that government applies or transfers United States
assistance to any entity for the purpose of expropriating or
seizing ownership or control of assets, investments, or ventures.
Assistance may be furnished without regard to this subsection
if the President determines that to do so is in the national interest.
(b) None of the funds appropriated under the heading ‘‘Assist-
ance for the Independent States of the Former Soviet Union’’ shall
be made available for assistance for a government of an Independent
State of the former Soviet Union if that government directs any
action in violation of the territorial integrity or national sovereignty
of any other Independent State of the former Soviet Union, such
as those violations included in the Helsinki Final Act: Provided,
That such funds may be made available without regard to the
restriction in this subsection if the President determines that to
do so is in the national security interest of the United States.
(c) None of the funds appropriated under the heading ‘‘Assist-
ance for the Independent States of the Former Soviet Union’’ shall
be made available for any state to enhance its military capability:
Provided, That this restriction does not apply to demilitarization,
demining or nonproliferation programs.
(d) Funds appropriated under the heading ‘‘Assistance for the
Independent States of the Former Soviet Union’’ for the Russian
Federation, Armenia, Georgia, and Ukraine shall be subject to
the regular notification procedures of the Committees on Appropria-
tions.
(e) Funds made available in this Act for assistance for the
Independent States of the former Soviet Union shall be subject
to the provisions of section 117 (relating to environment and natural
resources) of the Foreign Assistance Act of 1961.
(f) Funds made available for Enterprise Funds shall be
expended at the minimum rate necessary to make timely payment
for projects and activities.
(g) In issuing new task orders, entering into contracts, or
making grants, with funds appropriated in this Act or prior appro-
priations Acts under the heading ‘‘Assistance for the Independent
States of the Former Soviet Union’’ and under comparable headings
in prior appropriations Acts, for projects or activities that have
as one of their primary purposes the fostering of private sector
development, the Coordinator for United States Assistance to the
New Independent States and the implementing agency shall encour-
age the participation of and give significant weight to contractors
and grantees who propose investing a significant amount of their
H. R. 2673—172
own resources (including volunteer services and in-kind contribu-
tions) in such projects and activities.
PROHIBITION ON FUNDING FOR ABORTIONS AND INVOLUNTARY
STERILIZATION
SEC. 518. None of the funds made available to carry out part
I of the Foreign Assistance Act of 1961, as amended, may be
used to pay for the performance of abortions as a method of family
planning or to motivate or coerce any person to practice abortions.
None of the funds made available to carry out part I of the Foreign
Assistance Act of 1961, as amended, may be used to pay for the
performance of involuntary sterilization as a method of family plan-
ning or to coerce or provide any financial incentive to any person
to undergo sterilizations. None of the funds made available to
carry out part I of the Foreign Assistance Act of 1961, as amended,
may be used to pay for any biomedical research which relates
in whole or in part, to methods of, or the performance of, abortions
or involuntary sterilization as a means of family planning. None
of the funds made available to carry out part I of the Foreign
Assistance Act of 1961, as amended, may be obligated or expended
for any country or organization if the President certifies that the
use of these funds by any such country or organization would
violate any of the above provisions related to abortions and involun-
tary sterilizations.
EXPORT FINANCING TRANSFER AUTHORITIES
SEC. 519. Not to exceed 5 percent of any appropriation other
than for administrative expenses made available for fiscal year
2004, for programs under title I of this Act may be transferred
between such appropriations for use for any of the purposes, pro-
grams, and activities for which the funds in such receiving account
may be used, but no such appropriation, except as otherwise specifi-
cally provided, shall be increased by more than 25 percent by
any such transfer: Provided, That the exercise of such authority
shall be subject to the regular notification procedures of the
Committees on Appropriations.
SPECIAL NOTIFICATION REQUIREMENTS
SEC. 520. None of the funds appropriated by this Act shall
be obligated or expended for Liberia, Serbia, Sudan, Zimbabwe,
Pakistan, Cambodia, or the Democratic Republic of the Congo except
as provided through the regular notification procedures of the
Committees on Appropriations.
DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY
SEC. 521. For the purpose of this Act, ‘‘program, project, and
activity’’ shall be defined at the appropriations Act account level
and shall include all appropriations and authorizations Acts ear-
marks, ceilings, and limitations with the exception that for the
following accounts: Economic Support Fund and Foreign Military
Financing Program, ‘‘program, project, and activity’’ shall also be
considered to include country, regional, and central program level
funding within each such account; for the development assistance
accounts of the United States Agency for International Development
‘‘program, project, and activity’’ shall also be considered to include