H. R. 2159—39
(3) any obligation or portion of such obligation for a Latin
American country, to pay for purchases of United States agricul-
tural commodities guaranteed by the Commodity Credit Cor-
poration under export credit guarantee programs authorized
pursuant to section 5(f ) of the Commodity Credit Corporation
Charter Act of June 29, 1948, as amended, section 4(b) of
the Food for Peace Act of 1966, as amended (Public Law 89–
808), or section 202 of the Agricultural Trade Act of 1978,
as amended (Public Law 95–501).
(b) LIMITATIONS.—
(1) The authority provided by subsection (a) may be exer-
cised only to implement multilateral official debt relief and
referendum agreements, commonly referred to as ‘‘Paris Club
Agreed Minutes’’.
(2) The authority provided by subsection (a) may be exer-
cised 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 exer-
cised 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 subsection (a) may
be exercised only with respect to a country whose government—
(1) does not have an excessive level of military expendi-
tures;
(2) has not repeatedly provided support for acts of inter-
national terrorism;
(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 inter-
nationally 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 provided by sub-
section (a) may be used only with regard to funds appropriated
by this Act under the heading ‘‘Debt restructuring ’’.
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduction of debt
pursuant to subsection (a) shall not be considered assistance for
purposes of any provision of law limiting assistance to a country.
The authority provided by subsection (a) may be exercised notwith-
standing section 620(r) of the Foreign Assistance Act of 1961.
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES
SEC. 559. (a) LOANS ELIGIBLE
FOR SALE, REDUCTION, OR
CANCELLATION.—
(1) AUTHORITY
TO
SELL, REDUCE, OR
CANCEL
CERTAIN
LOANS.—Notwithstanding any other provision of law, the Presi-
dent 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 Assistance 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
H. R. 2159—40
an eligible purchaser, reduce or cancel such loan or portion
thereof, only for the purpose of facilitating—
(A) debt-for-equity swaps, debt-for-development 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
development, and child survival and other child develop-
ment, in a manner consistent with sections 707 through
710 of the Foreign Assistance Act of 1961, if the sale,
reduction, or cancellation would not contravene any term
or condition of any prior agreement relating to such loan.
(2) TERMS AND CONDITIONS.—Notwithstanding any other
provision of law, the President shall, in accordance with this
section, establish the terms and conditions under which loans
may be sold, reduced, or canceled pursuant to this section.
(3) ADMINISTRATION.—The Facility, as defined in section
702(8) of the Foreign Assistance Act of 1961, shall notify the
administrator of the agency primarily responsible for admin-
istering part I of the Foreign Assistance Act of 1961 of pur-
chasers that the President has determined to be eligible, and
shall direct such agency 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.—The authorities of this subsection shall
be available 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.
(b) DEPOSIT OF PROCEEDS.—The proceeds from the sale, reduc-
tion, or cancellation of any loan sold, reduced, or canceled pursuant
to this section shall be deposited in the United States Government
account or accounts established 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 satisfac-
tory to the President for using the 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 should
consult with the country concerning the amount of loans to be
sold, reduced, or canceled and their uses for debt-for-equity swaps,
debt-for-development swaps, or debt-for-nature swaps.
(e) AVAILABILITY OF FUNDS.—The authority provided by sub-
section (a) may be used only with regard to funds appropriated
by this Act under the heading ‘‘Debt restructuring ’’.
INTERNATIONAL FINANCIAL INSTITUTIONS
SEC. 560. (a) AUTHORIZATIONS.—The Secretary of the Treasury
may, to fulfill commitments of the United States: (1) effect the
United States participation in the first general capital increase
H. R. 2159—41
of the European Bank for Reconstruction and Development, sub-
scribe to and make payment for 100,000 additional shares of the
capital stock of the Bank on behalf of the United States; and
(2) contribute on behalf of the United States to the eleventh
replenishment of the resources of the International Development
Association, to the sixth replenishment of the resources of the
Asian Development Fund, a special fund of the Asian Development
Bank. The following amounts are authorized to be appropriated
without fiscal year limitation for payment by the Secretary of the
Treasury: (1) $285,772,500 for paid-in capital, and $984,327,500
for callable capital of the European Bank for Reconstruction and
Development; (2) $1,600,000,000 for the International Development
Association; (3) $400,000,000 for the Asian Development Fund; and
(4) $76,832,001 for paid-in capital, and $4,511,156,729 for callable
capital of the Inter-American Development Bank in connection with
the eighth general increase in the resources of that Bank. Each
such subscription or contribution shall be subject to obtaining the
necessary appropriations.
(b) CONSIDERATION
OF ENVIRONMENTAL IMPACT
OF INTER-
NATIONAL FINANCE CORPORATION LOANS.—Section 1307 of the Inter-
national Financial Institutions Act (Public Law 95–118) is amended
as follows:
(1) in subsection (a)(1)(A) strike ‘‘borrowing country’’ and
insert in lieu thereof ‘‘borrower’’;
(2) in subsection (a)(2)(A) strike ‘‘country’’; and
(3) at the end of section 1307, add a new subsection as
follows:
‘‘(g) For purposes of this section, the term ‘multilateral develop-
ment bank’ means any of the institutions named in section 1303(b)
of this Act, and the International Finance Corporation.’’.
(c) The Secretary of the Treasury shall instruct the United
States Executive Directors of the International Bank for Reconstruc-
tion and Development and the International Development Associa-
tion to use the voice and vote of the United States to strongly
encourage their respective institutions to—
(1) provide timely public information on procurement
opportunities available to United States suppliers, with a spe-
cial emphasis on small business; and
(2) systematically consult with local communities on the
potential impact of loans as part of the normal lending process,
and expand the participation of affected peoples and nongovern-
mental organizations in decisions on the selection, design and
implementation of policies and projects.
SANCTIONS AGAINST COUNTRIES HARBORING WAR CRIMINALS
SEC. 561. (a) BILATERAL ASSISTANCE.—The President is author-
ized to withhold funds appropriated by this Act under the Foreign
Assistance Act of 1961 or the Arms Export Control Act for any
country described in subsection (c).
(b) MULTILATERAL ASSISTANCE.—The Secretary of the Treasury
should instruct the United States executive directors of the inter-
national financial institutions to work in opposition to, and vote
against, any extension by such institutions of financing or financial
or technical assistance to any country described in subsection (c).
(c) SANCTIONED COUNTRIES.—A country described in this sub-
section is a country the government of which knowingly grants
H. R. 2159—42
sanctuary to persons in its territory for the purpose of evading
prosecution, where such persons—
(1) have been indicted by the International Criminal Tribu-
nal for Rwanda, or any other international tribunal with similar
standing under international law; or
(2) have been indicted for war crimes or crimes against
humanity committed during the period beginning March 23,
1933 and ending on May 8, 1945 under the direction of, or
in association with—
(A) the Nazi government of Germany;
(B) any government in any area occupied by the
military forces of the Nazi government of Germany;
(C) any government which was established with the
assistance or cooperation of the Nazi government; or
(D) any government which was an ally of the Nazi
government of Germany.
LIMITATION ON ASSISTANCE FOR HAITI
SEC. 562. (a) LIMITATION.—None of the funds appropriated
or otherwise made available by this Act may be provided to the
Government of Haiti unless the President reports to Congress that
the Government of Haiti—
(1) is conducting thorough investigations of extrajudicial
and political killings;
(2) is cooperating with United States authorities in the
investigations of political and extrajudicial killings;
(3) has substantially completed privatization of (or placed
under long-term private management or concession) at least
three major public enterprises; and
(4) has taken action to remove from the Haitian National
Police, national palace and residential guard, ministerial guard,
and any other public security entity of Haiti those individuals
who are credibly alleged to have engaged in or conspired to
conceal gross violations of internationally recognized human
rights.
(b) EXCEPTIONS.—The limitation in subsection (a) does not apply
to the provision of humanitarian, electoral, counter-narcotics, or
law enforcement assistance.
(c) WAIVER.—The President may waive the requirements of
this section on a semiannual basis if the President determines
and certifies to the appropriate committees of Congress that such
waiver is in the national interest of the United States.
(d) PARASTATALS DEFINED.—As used in this section, the term
‘‘parastatal’’ means a government-owned enterprise.
REQUIREMENT FOR DISCLOSURE OF FOREIGN AID IN REPORT OF
SECRETARY OF STATE
SEC. 563. (a) FOREIGN AID REPORTING REQUIREMENT.—In addi-
tion to the voting practices of a foreign country, the report required
to be submitted to Congress under section 406(a) of the Foreign
Relations Authorization Act, fiscal years 1990 and 1991 (22 U.S.C.
2414a), shall include a side-by-side comparison of individual coun-
tries’ overall support for the United States at the United Nations
and the amount of United States assistance provided to such coun-
try in fiscal year 1997.