H. R. 2606—29
(ii) debt and deficit financing; or
(B) for the administrative requirements of the United
States Government.
(3) PROGRAMMING ACCOUNTABILITY.—The Agency for Inter-
national Development shall take all necessary steps to ensure that
the equivalent of the local currencies disbursed pursuant to sub-
section (a)(2)(A) from the separate account established pursuant
to subsection (a)(1) are used for the purposes agreed upon pursuant
to subsection (a)(2).
(4) TERMINATION OF ASSISTANCE PROGRAMS.—Upon termination
of assistance to a country under chapter 1 or 10 of part I or
chapter 4 of part II (as the case may be), any unencumbered
balances of funds which remain in a separate account established
pursuant to subsection (a) shall be disposed of for such purposes
as may be agreed to by the government of that country and the
United States Government.
(5) REPORTING
REQUIREMENT.—The Administrator of the
Agency for International Development shall report on an annual
basis as part of the justification documents submitted to the
Committees on Appropriations on the use of local currencies for
the administrative requirements of the United States Government
as authorized in subsection (a)(2)(B), and such report shall include
the amount of local currency (and United States dollar equivalent)
used and/or to be used for such purpose in each applicable country.
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—(1) If assist-
ance is made available to the government of a foreign country,
under chapter 1 or 10 of part I or chapter 4 of part II of the
Foreign Assistance Act of 1961, as cash transfer assistance or
as nonproject sector assistance, that country shall be required to
maintain such funds in a separate account and not commingle
them with any other funds.
(2) APPLICABILITY OF OTHER PROVISIONS OF LAW.—Such funds
may be obligated and expended notwithstanding provisions of law
which are inconsistent with the nature of this assistance including
provisions which are referenced in the Joint Explanatory Statement
of the Committee of Conference accompanying House Joint Resolu-
tion 648 (H. Report No. 98–1159).
(3) NOTIFICATION.—At least 15 days prior to obligating any
such cash transfer or nonproject sector assistance, the President
shall submit a notification through the regular notification proce-
dures of the Committees on Appropriations, which shall include
a detailed description of how the funds proposed to be made avail-
able will be used, with a discussion of the United States interests
that will be served by the assistance (including, as appropriate,
a description of the economic policy reforms that will be promoted
by such assistance).
(4) EXEMPTION.—Nonproject sector assistance funds may be
exempt from the requirements of subsection (b)(1) only through
the notification procedures of the Committees on Appropriations.
COMPENSATION FOR UNITED STATES EXECUTIVE DIRECTORS TO
INTERNATIONAL FINANCIAL INSTITUTIONS
SEC. 533. (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
H. R. 2606—30
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.
COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST IRAQ
SEC. 534. None of the funds appropriated or otherwise made
available pursuant to this Act to carry out the Foreign Assistance
Act of 1961 (including title IV of chapter 2 of part I, relating
to the Overseas Private Investment Corporation) or the Arms
Export Control Act may be used to provide assistance to any country
that is not in compliance with the United Nations Security Council
sanctions against Iraq unless the President determines and so
certifies to the Congress that—
(1) such assistance is in the national interest of the United
States;
(2) such assistance will directly benefit the needy people
in that country; or
(3) the assistance to be provided will be humanitarian
assistance for foreign nationals who have fled Iraq and Kuwait.
AUTHORITIES
FOR
THE
PEACE
CORPS, INTERNATIONAL
FUND
FOR
AGRICULTURAL DEVELOPMENT, INTER-AMERICAN FOUNDATION AND
AFRICAN DEVELOPMENT FOUNDATION
SEC. 535. (a) Unless expressly provided to the contrary, provi-
sions of this or any other Act, including provisions contained in
prior Acts authorizing or making appropriations for foreign oper-
ations, export financing, and related programs, shall not be con-
strued to prohibit activities authorized by or conducted under the
Peace Corps Act, the Inter-American Foundation Act, or the African
Development Foundation Act. The agency shall promptly report
to the Committees on Appropriations whenever it is conducting
activities or is proposing to conduct activities in a country for
which assistance is prohibited.
(b) Unless expressly provided to the contrary, limitations on
the availability of funds for ‘‘International Organizations and Pro-
grams’’ in this or any other Act, including prior appropriations
Acts, shall not be construed to be applicable to the International
Fund for Agricultural Development.
IMPACT ON JOBS IN THE UNITED STATES
SEC. 536. None of the funds appropriated by this Act may
be obligated or expended to provide—
(a) any financial incentive to a business enterprise cur-
rently located in the United States for the purpose of inducing
H. R. 2606—31
such an enterprise to relocate outside the United States if
such incentive or inducement is likely to reduce the number
of employees of such business enterprise in the United States
because United States production is being replaced by such
enterprise outside the United States;
(b) assistance for the purpose of establishing or developing
in a foreign country any export processing zone or designated
area in which the tax, tariff, labor, environment, and safety
laws of that country do not apply, in part or in whole, to
activities carried out within that zone or area, unless the Presi-
dent determines and certifies that such assistance is not likely
to cause a loss of jobs within the United States; or
(c) assistance for any project or activity that contributes
to the violation of internationally recognized workers rights,
as defined in section 502(a)(4) of the Trade Act of 1974, of
workers in the recipient country, including any designated zone
or area in that country: Provided, That in recognition that
the application of this subsection should be commensurate with
the level of development of the recipient country and sector,
the provisions of this subsection shall not preclude assistance
for the informal sector in such country, micro and small-scale
enterprise, and smallholder agriculture.
FUNDING PROHIBITION FOR SERBIA
SEC. 537. None of the funds appropriated by this Act may
be made available for assistance for the Republic of Serbia: Pro-
vided, That this restriction shall not apply to assistance for Kosova
or Montenegro, or to assistance to promote democratization.
SPECIAL AUTHORITIES
SEC. 538. (a) Funds appropriated in titles I and II of this
Act that are made available for Afghanistan, Lebanon, Montenegro,
and for victims of war, displaced children, displaced Burmese,
humanitarian assistance for Romania, and humanitarian assistance
for the peoples of Kosova, may be made available notwithstanding
any other provision of law: Provided, That any such funds that
are made available for Cambodia shall be subject to the provisions
of section 531(e) of the Foreign Assistance Act of 1961 and section
906 of the International Security and Development Cooperation
Act of 1985.
(b) Funds appropriated by this Act to carry out the provisions
of sections 103 through 106 of the Foreign Assistance Act of 1961
may be used, notwithstanding any other provision of law, for the
purpose of supporting tropical forestry and biodiversity conservation
activities and, subject to the regular notification procedures of the
Committees on Appropriations, energy programs aimed at reducing
greenhouse gas emissions: Provided, That such assistance shall
be subject to sections 116, 502B, and 620A of the Foreign Assistance
Act of 1961.
(c) The Agency for International Development may employ per-
sonal services contractors, notwithstanding any other provision of
law, for the purpose of administering programs for the West Bank
and Gaza.
(d)(1) WAIVER.—The President may waive the provisions of
section 1003 of Public Law 100–204 if the President determines
H. R. 2606—32
and certifies in writing to the Speaker of the House of Representa-
tives and the President pro tempore of the Senate that it is impor-
tant to the national security interests of the United States.
(2) PERIOD OF APPLICATION OF WAIVER.—Any waiver pursuant
to paragraph (1) shall be effective for no more than a period of
6 months at a time and shall not apply beyond 12 months after
the enactment of this Act.
POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT OF ISRAEL
SEC. 539. It is the sense of the Congress that—
(1) the Arab League countries should immediately and
publicly renounce the primary boycott of Israel and the sec-
ondary and tertiary boycott of American firms that have
commercial ties with Israel;
(2) the decision by the Arab League in 1997 to reinstate
the boycott against Israel was deeply troubling and dis-
appointing;
(3) the Arab League should immediately rescind its decision
on the boycott and its members should develop normal relations
with their neighbor Israel; and
(4) the President should—
(A) take more concrete steps to encourage vigorously
Arab League countries to renounce publicly the primary
boycotts of Israel and the secondary and tertiary boycotts
of American firms that have commercial relations with
Israel as a confidence-building measure;
(B) take into consideration the participation of any
recipient country in the primary boycott of Israel and the
secondary and tertiary boycotts of American firms that
have commercial relations with Israel when determining
whether to sell weapons to said country;
(C) report to Congress on the specific steps being taken
by the President to bring about a public renunciation of
the Arab primary boycott of Israel and the secondary and
tertiary boycotts of American firms that have commercial
relations with Israel and to expand the process of normal-
izing ties between Arab League countries and Israel; and
(D) encourage the allies and trading partners of the
United States to enact laws prohibiting businesses from
complying with the boycott and penalizing businesses that
do comply.
ANTI-NARCOTICS ACTIVITIES
SEC. 540. Of the funds appropriated or otherwise made avail-
able by this Act for ‘‘Economic Support Fund’’, assistance may
be provided to strengthen the administration of justice in countries
in Latin America and the Caribbean and in other regions consistent
with the provisions of section 534(b) of the Foreign Assistance
Act of 1961, except that programs to enhance protection of partici-
pants in judicial cases may be conducted notwithstanding section
660 of that Act. Funds made available pursuant to this section
may be made available notwithstanding section 534(c) and the
second and third sentences of section 534(e) of the Foreign Assist-
ance Act of 1961.