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(15) The Caucasus region remains important
geographically and politically to the future security of
Central Europe. As NATO proceeds with the process
of enlargement, the United States and NATO should
continue to examine means to strengthen the sov-
ereignty and enhance the security of United Nations
recognized countries in that region.
(16) In recognition that not all countries which
have requested membership in NATO will necessarily
qualify at the same pace, the accession date for each
new member will vary.
(17) The provision of additional NATO transi-
tion assistance should include those emerging democ-
racies most ready for closer ties with NATO and
should be designed to assist other countries meeting
specified criteria of eligibility to move forward to-
ward eventual NATO membership.
(18) The Congress of the United States finds in
particular that Poland, Hungary, the Czech Republic,
and Slovenia have made significant progress toward
achieving the stated criteria and should be eligible for
the additional assistance described in this Act.
(19) The evaluation of future membership in
NATO for emerging democracies in Central and East-
ern Europe should be based on the progress of those
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nations in meeting criteria for NATO membership,
which require enhancement of NATO’s security and
the approval of all NATO members.
(20) The process of NATO enlargement entails
the agreement of the governments of all NATO mem-
bers in accordance with Article 10 of the Washington
Treaty.
(21) Some NATO members, such as Spain and
Norway, do not allow the deployment of nuclear
weapons on their territory although they are accorded
the full collective security guarantees provided by ar-
ticle V of the Washington treaty. There is no prior re-
quirement for the stationing of nuclear weapons on
the territory of new NATO members, particularly in
the current security climate, however NATO retains
the right to alter its security posture at any time as
circumstances warrant.
SEC. 603. UNITED STATES POLICY.
It is the policy of the United States—
(1) to join with the NATO allies of the United
States to adapt the role of the NATO Alliance in the
post-Cold War world;
(2) to actively assist the emerging democracies in
Central and Eastern Europe in their transition so
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that such countries may eventually qualify for NATO
membership; and
(3) to work to define a constructive and coopera-
tive political and security relationship between an en-
larged NATO and the Russian Federation.
SEC. 604. SENSE OF THE CONGRESS REGARDING FURTHER
ENLARGEMENT OF NATO.
It is the sense of the Congress that in order to promote
economic stability and security in Slovakia, Estonia, Lat-
via, Lithuania, Romania, Bulgaria, Albania, Moldova, and
Ukraine—
(1) the United States should continue and ex-
pand its support for the full and active participation
of these countries in activities appropriate for quali-
fying for NATO membership;
(2) the United States Government should use all
diplomatic means available to press the European
Union to admit as soon as possible any country
which qualifies for membership;
(3) the United States Government and the North
Atlantic Treaty Organization should continue and ex-
pand their support for military exercises and peace-
keeping initiatives between and among these nations,
nations of the North Atlantic Treaty Organization,
and Russia; and
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(4) the process of enlarging NATO to include
emerging democracies in Central and Eastern Europe
should not be limited to consideration of admitting
Poland, Hungary, the Czech Republic, and Slovenia
as full members to the NATO Alliance.
SEC. 605. SENSE OF THE CONGRESS REGARDING ESTONIA,
LATVIA, AND LITHUANIA.
In view of the forcible incorporation of Estonia, Lat-
via, Lithuania into the Soviet Union in 1940 under the
Molotov-Ribbentrop Pact and the refusal of the United
States and other countries to recognize that incorporation
for over 50 years, it is the sense of the Congress that—
(1) Estonia, Latvia, and Lithuania have valid
historical security concerns that must be taken into
account by the United States; and
(2) Estonia, Latvia, and Lithuania should not
be disadvantaged in seeking to join NATO by virtue
of their forcible incorporation into the Soviet Union.
SEC. 606. DESIGNATION OF COUNTRIES ELIGIBLE FOR
NATO ENLARGEMENT ASSISTANCE.
(a) IN GENERAL.—The following countries are des-
ignated as eligible to receive assistance under the program
established under section 203(a) of the NATO Participation
Act of 1994 and shall be deemed to have been so designated
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pursuant to section 203(d) of such Act: Poland, Hungary,
the Czech Republic, and Slovenia.
(b) DESIGNATION OF OTHER COUNTRIES.—The Presi-
dent shall designate other emerging democracies in Central
and Eastern Europe as eligible to receive assistance under
the program established under section 203(a) of such Act
if such countries—
(1) have expressed a clear desire to join NATO;
(2) have begun an individualized dialogue with
NATO in preparation for accession;
(3) are strategically significant to an effective
NATO defense; and
(4) meet the other criteria outlined in section
203(d) of the NATO Participation Act of 1994 (title
II of Public Law 103–447; 22 U.S.C. 1928 note).
(c) RULE OF CONSTRUCTION.—Subsection (a) does not
preclude the designation by the President of Estonia, Lat-
via, Lithuania, Romania, Slovakia, Bulgaria, Albania,
Moldova, Ukraine, or any other emerging democracy in
Central and Eastern Europe pursuant to section 203(d) of
the NATO Participation Act of 1994 as eligible to receive
assistance under the program established under section
203(a) of such Act.
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SEC. 607. AUTHORIZATION OF APPROPRIATIONS FOR NATO
ENLARGEMENT ASSISTANCE.
(a) IN GENERAL.—There are authorized to be appro-
priated $60,000,000 for fiscal year 1997 for the program
established under section 203(a) of the NATO Participation
Act of 1994.
(b) AVAILABILITY.—Of the funds authorized to be ap-
propriated by subsection (a)—
(1) not less than $20,000,000 shall be available
for the subsidy cost, as defined in section 502(5) of
the Credit Reform Act of 1990, of direct loans pursu-
ant to the authority of section 203(c)(4) of the NATO
Participation Act of 1994 (relating to the ‘‘Foreign
Military Financing Program’’);
(2) not less than $30,000,000 shall be available
for assistance on a grant basis pursuant to the au-
thority of section 203(c)(4) of the NATO Participa-
tion Act of 1994 (relating to the ‘‘Foreign Military
Financing Program’’); and
(3) not more than $10,000,000 shall be available
for assistance pursuant to the authority of section
203(c)(3) of the NATO Participation Act of 1994 (re-
lating to international military education and train-
ing).
(c) RULE OF CONSTRUCTION.—Amounts authorized to
be appropriated under this section are authorized to be ap-
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propriated in addition to such amounts as otherwise may
be available for such purposes.
SEC. 608. REGIONAL AIRSPACE INITIATIVE AND PARTNER-
SHIP FOR PEACE INFORMATION MANAGE-
MENT SYSTEM.
(a) IN GENERAL.—Funds described in subsection (b)
are authorized to be made available to support the imple-
mentation of the Regional Airspace Initiative and the Part-
nership for Peace Information Management System, includ-
ing—
(1) the procurement of items in support of these
programs; and
(2) the transfer of such items to countries par-
ticipating in these programs, which may include Po-
land, Hungary, the Czech Republic, Slovenia, Slo-
vakia, Estonia, Latvia, Lithuania, Romania, Bul-
garia, Moldova, Ukraine, and Albania.
(b) FUNDS DESCRIBED.—Funds described in this sub-
section are funds that are available—
(1) during any fiscal year under the NATO Par-
ticipation Act of 1994 with respect to countries eligi-
ble for assistance under that Act; or
(2) during fiscal year 1997 under any Act to
carry out the Warsaw Initiative.
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SEC. 609. EXCESS DEFENSE ARTICLES.
(a) PRIORITY DELIVERY.—Notwithstanding any other
provision of law, the provision and delivery of excess defense
articles under the authority of section 203(c) (1) and (2)
of the NATO Participation Act of 1994 and section 516
of the Foreign Assistance Act of 1961 shall be given priority
to the maximum extent feasible over the provision and de-
livery of such excess defense articles to all other countries
except those countries referred to in section 541 of the For-
eign Operations, Export Financing, and Related Programs
Appropriations Act, 1995 (Public Law 103–306; 108 Stat.
1640).
(b) COOPERATIVE REGIONAL PEACEKEEPING INITIA-
TIVES.—The Congress encourages the President to provide
excess defense articles and other appropriate assistance to
cooperative regional peacekeeping initiatives involving
emerging democracies in Central and Eastern Europe that
have expressed an interest in joining NATO in order to en-
hance their ability to contribute to European peace and se-
curity and international peacekeeping efforts.
SEC. 610. MODERNIZATION OF DEFENSE CAPABILITY.
The Congress endorses efforts by the United States to
modernize the defense capability of Poland, Hungary, the
Czech Republic, Slovenia, and any other countries des-
ignated by the President pursuant to section 203(d) of the
NATO Participation Act of 1994, by exploring with such
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countries options for the sale or lease to such countries of
weapons systems compatible with those used by NATO
members, including air defense systems, advanced fighter
aircraft, and telecommunications infrastructure.
SEC. 611. TERMINATION OF ELIGIBILITY.
Section 203(f) of the NATO Participation Act of 1994
(title II of Public Law 103–447; 22 U.S.C. 1928 note) is
amended to read as follows:
‘‘(f) TERMINATION OF ELIGIBILITY.—(1) The eligi-
bility of a country designated under subsection (d) for the
program established in subsection (a) shall terminate 30
days after the President makes a certification under para-
graph (2) unless, within the 30-day period, the Congress
enacts a joint resolution disapproving the termination of
eligibility.
‘‘(2) Whenever the President determines that the gov-
ernment of a country designated under subsection (d)—
‘‘(A) no longer meets the criteria set forth in sub-
section (d)(2)(A);
‘‘(B) is hostile to the NATO Alliance; or
‘‘(C) poses a national security threat to the
United States,
then the President shall so certify to the appropriate con-
gressional committees.
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‘‘(3) Nothing in this title affects the eligibility of coun-
tries to participate under other provisions of law in pro-
grams described in this Act.’’.
SEC. 612. AMENDMENTS TO THE NATO PARTICIPATION ACT.
(a) CONFORMING AMENDMENT.—The NATO Partici-
pation Act of 1994 (title II of Public Law 103–447; 22
U.S.C. 1928 note) is amended in sections 203(a), 203(d)(1),
and 203(d)(2) by striking ‘‘countries emerging from com-
munist domination’’ each place it appears and inserting
‘‘emerging democracies in Central and Eastern Europe’’.
(b) DEFINITIONS.—The NATO Participation Act of
1994 (title II of Public Law 103–446; 22 U.S.C. 1928 note)
is amended by adding at the end the following new section:
‘‘SEC. 206. DEFINITIONS.
‘‘The term ‘emerging democracies in Central and East-
ern Europe’ includes, but is not limited to, Albania, Bul-
garia, the Czech Republic, Estonia, Hungary, Latvia, Lith-
uania, Moldova, Poland, Romania, Slovakia, Slovenia, and
Ukraine.’’.
SEC. 613. DEFINITIONS.
As used in this title:
(1) EMERGING DEMOCRACIES IN CENTRAL AND
EASTERN EUROPE.—The term ‘‘emerging democracies
in Central and Eastern Europe’’ includes, but is not
limited to, Albania, Bulgaria, the Czech Republic, Es-
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tonia, Hungary, Latvia, Lithuania, Moldova, Poland,
Romania, Slovakia, Slovenia, and Ukraine.
(2) NATO.—The term ‘‘NATO’’ means the North
Atlantic Treaty Organization.
TITLE VII—MIDDLE EAST DEVELOPMENT BANK
SEC. 701. SHORT TITLE.
This title may be cited as the ‘‘Bank for Economic Co-
operation and Development in the Middle East and North
Africa Act’’.
SEC. 702. ACCEPTANCE OF MEMBERSHIP.
The President is hereby authorized to accept member-
ship for the United States in the Bank for Economic Co-
operation and Development in the Middle East and North
Africa (in this title referred to as the ‘‘Bank’’) provided for
by the agreement establishing the Bank (in this title referred
to as the ‘‘Agreement’’), signed on May 31, 1996.
SEC. 703. GOVERNOR AND ALTERNATE GOVERNOR.
(a) APPOINTMENT.—At the inaugural meeting of the
Board of Governors of the Bank, the Governor and the alter-
nate for the Governor of the International Bank for Recon-
struction and Development, appointed pursuant to section
3 of the Bretton Woods Agreements Act, shall serve ex-officio
as a Governor and the alternate for the Governor, respec-
tively, of the Bank. The President, by and with the advice
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and consent of the Senate, shall appoint a Governor of the
Bank and an alternate for the Governor.
(b) COMPENSATION.—Any person who serves as a gov-
ernor of the Bank or as an alternate for the Governor may
not receive any salary or other compensation from the Unit-
ed States by reason of such service.
SEC. 704. APPLICABILITY OF CERTAIN PROVISIONS OF THE
BRETTON WOODS AGREEMENTS ACT.
Section 4 of the Bretton Woods Agreements Act shall
apply to the Bank in the same manner in which such sec-
tion applies to the International Bank for Reconstruction
and Development and the International Monetary Fund.
SEC. 705. FEDERAL RESERVE BANKS AS DEPOSITORIES.
Any Federal Reserve Bank which is requested to do
so by the Bank may act as its depository, or as its fiscal
agent, and the Board of Governors of the Federal Reserve
System shall exercise general supervision over the carrying
out of these functions.
SEC. 706. SUBSCRIPTION OF STOCK.
(a) SUBSCRIPTION AUTHORITY.—
(1) IN GENERAL.—The Secretary of the Treasury
may subscribe on behalf of the United States to not
more than 7,011,270 shares of the capital stock of the
Bank.
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to subsection (b) may be obligated for subscription to
shares of callable capital stock.
(d) DISPOSITION OF NET INCOME DISTRIBUTIONS BY
THE BANK.—Any payment made to the United States by
the Bank as a distribution of net income shall be covered
into the Treasury as a miscellaneous receipt.
SEC. 707. JURISDICTION AND VENUE OF CIVIL ACTIONS BY
OR AGAINST THE BANK.
(a) JURISDICTION.—The United States district courts
shall have original and exclusive jurisdiction of any civil
action brought in the United States by or against the Bank.
(b) VENUE.—For purposes of section 1391(b) of title
28, United States Code, the Bank shall be deemed to be a
resident of the judicial district in which the principal office
of the Bank in the United States, or its agent appointed
for the purpose of accepting service or notice of service, is
located.
SEC. 708. EFFECTIVENESS OF AGREEMENT.
The Agreement shall have full force and effect in the
United States, its territories and possessions, and the Com-
monwealth of Puerto Rico, upon acceptance of membership
by the United States in the Bank and the entry into force
of the Agreement.
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SEC. 709. EXEMPTION FROM SECURITIES LAWS FOR CER-
TAIN SECURITIES ISSUED BY THE BANK; RE-
PORTS REQUIRED.
(a) EXEMPTION FROM SECURITIES LAWS; REPORTS TO
SECURITIES AND EXCHANGE COMMISSION.—Any securities
issued by the Bank (including any guaranty by the Bank,
whether or not limited in scope) in connection with borrow-
ing of funds, or the guarantee of securities as to both prin-
cipal and interest, shall be deemed to be exempted securities
within the meaning of section 3(a)(2) of the Securities Act
of 1933 and section 3(a)(12) of the Securities Exchange Act
of 1934. The Bank shall file with the Securities and Ex-
change Commission such annual and other reports with re-
gard to such securities as the Commission shall determine
to be appropriate in view of the special character of the
Bank and its operations and necessary in the public inter-
est or for the protection of investors.
(b) AUTHORITY OF SECURITIES AND EXCHANGE COM-
MISSION TO SUSPEND EXEMPTION; REPORTS TO THE CON-
GRESS.—The Securities and Exchange Commission, acting
in consultation with such agency or officer as the President
shall designate, may suspend the provisions of subsection
(a) at any time as to any or all securities issued or guaran-
teed by the Bank during the period of such suspension. The
Commission shall include in its annual reports to the Con-
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gress such information as it shall deem advisable with re-
gard to the operations and effect of this section.
SEC. 710. TECHNICAL AMENDMENTS.
(a) ANNUAL REPORT REQUIRED ON PARTICIPATION OF
THE UNITED STATES IN THE BANK.—Section 1701 (c)(2)
of the International Financial Institutions Act (22 U.S.C.
262r(c)(2)) is amended by inserting ‘‘Bank for Economic
Cooperation and Development in the Middle East and
North Africa,’’ after ‘‘Inter-American Development Bank’’.
(b) EXEMPTION FROM LIMITATIONS AND RESTRIC-
TIONS ON POWER OF NATIONAL, BANKING ASSOCIATIONS
TO DEAL IN AND UNDERWRITE INVESTMENT SECURITIES
OF THE BANK.—The seventh sentence of paragraph 7 of sec-
tion 5136 of the Revised Statutes of the United States (12
U.S.C. 24) is amended by inserting ‘‘Bank for Economic
Cooperation and Development in the Middle East and
North Africa,’’ after ‘‘the Inter-American Development
Bank’’.
(c) BENEFITS
FOR UNITED STATES CITIZEN-REP-
RESENTATIVES TO THE BANK.—Section 51 of Public Law
91–599 (22 U.S.C. 276c–2) is amended by inserting ‘‘the
Bank for Economic Cooperation and Development in the
Middle East and North Africa,’’ after ‘‘the Inter-American
Development Bank,’’.
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This Act may be cited as the ‘‘Foreign Operations, Ex-
port Financing, and Related Programs Appropriations Act,
1997’’.
Attest:
Secretary.
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