Union Calendar No. 59
105TH CONGRESS
1ST SESSION
H. R. 1486
[Report No. 105–94]
A BILL
To consolidate international affairs agencies, to re-
form foreign assistance programs, to authorize
appropriations for foreign assistance programs
and for the Department of State and related
agencies for fiscal years 1998 and 1999, and for
other purposes.
MAY 9, 1997
Reported with an amendment, committed to the Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed
IB
Union Calendar No. 59
105TH CONGRESS
1ST SESSION
H. R. 1486
[Report No. 105–94]
To consolidate international affairs agencies, to reform foreign assistance
programs, to authorize appropriations for foreign assistance programs
and for the Department of State and related agencies for fiscal years
1998 and 1999, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 29, 1997
Mr. GILMAN introduced the following bill; which was referred to the
Committee on International Relations
MAY 9, 1997
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on April 29, 1997]
A BILL
To consolidate international affairs agencies, to reform for-
eign assistance programs, to authorize appropriations for
foreign assistance programs and for the Department of
State and related agencies for fiscal years 1998 and
1999, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Foreign Policy Reform
Act’’.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF
CONTENTS.
(a) DIVISIONS.—This Act is organized into three divi-
sions as follows:
(1) Division A—International Affairs Agency
Consolidation, Foreign Assistance Reform, and For-
eign Assistance Authorizations.
(2) Division B—Foreign Relations Authoriza-
tions.
(3) Division C—Funding Levels.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
DIVISION A—INTERNATIONAL AFFAIRS AGENCY CONSOLI-
DATION, FOREIGN ASSISTANCE REFORM, AND FOREIGN
ASSISTANCE AUTHORIZATIONS
TITLE I—GENERAL PROVISIONS
Sec. 101. Short title.
Sec. 102. Declaration of policy.
TITLE II—CONSOLIDATION OF CERTAIN INTERNATIONAL AFFAIRS
AGENCIES
CHAPTER 1—GENERAL PROVISIONS
Sec. 201. Short title
Sec. 202. Definitions.
CHAPTER 2—UNITED STATES INTERNATIONAL DEVELOPMENT COOPERATION
AGENCY
SUBCHAPTER A—ABOLITION OF UNITED STATES INTERNATIONAL DEVELOPMENT
COOPERATION
AGENCY
AND
TRANSFER
OF
FUNCTIONS
TO
UNITED
STATES
AGENCY FOR INTERNATIONAL DEVELOPMENT
Sec. 211. Abolition of United States International Development Cooperation
Agency.
Sec. 212. Transfer of functions to United States Agency for International Devel-
opment.
Sec. 213. Transition provisions.
SUBCHAPTER
B—CONTINUATION
OF
UNITED
STATES
AGENCY
FOR
INTER-
NATIONAL
DEVELOPMENT
AND
PLACEMENT
OF
ADMINISTRATOR
OF
AGENCY
UNDER THE DIRECTION OF THE SECRETARY OF STATE
Sec. 221. Continuation of United States Agency for International Development
and placement of Administrator of Agency under the direction
of the Secretary of State.
SUBCHAPTER C—CONFORMING AMENDMENTS
Sec. 231. Conforming amendments.
Sec. 232. Other references.
Sec. 233. Effective date.
TITLE III—FOREIGN ASSISTANCE REFORM
Sec. 301. Graduation from development assistance.
Sec. 302. Limitation on government-to-government assistance.
Sec. 303. Micro- and small enterprise development credits.
Sec. 304. Microenterprise development grant assistance.
Sec. 305. Private sector enterprise funds.
Sec. 306. Development credit authority.
Sec. 307. Foreign government parking fines.
Sec. 308. Withholding United States assistance to countries that aid the Govern-
ment of Cuba.
TITLE IV—DEFENSE AND SECURITY ASSISTANCE
CHAPTER 1—NARCOTICS CONTROL ASSISTANCE
Sec. 401. Definition.
Sec. 402. Authorization of appropriations.
Sec. 403. Authority to withhold bilateral assistance and oppose multilateral devel-
opment assistance for major illicit drug producing countries,
drug-transit countries, and money laundering countries.
CHAPTER 2—NONPROLIFERATION, ANTITERRORISM, DEMINING, AND RELATED
PROGRAMS
Sec. 411. Nonproliferation, antiterrorism, demining, and related programs.
CHAPTER 3—FOREIGN MILITARY FINANCING PROGRAM
Sec. 421. Authorization of appropriations.
Sec. 422. Assistance for Israel.
Sec. 423. Assistance for Egypt.
Sec. 515. Agricultural development and research assistance.
Sec. 516. Activities and programs in Latin America and the Caribbean region
and the Asia and the Pacific region.
Sec. 517. Support for agricultural development assistance.
SUBCHAPTER B—OPERATING EXPENSES
Sec. 521. Operating expenses generally.
Sec. 522. Operating expenses of the Office of the Inspector General.
CHAPTER 3—URBAN AND ENVIRONMENTAL CREDIT PROGRAM
Sec. 531. Urban and environmental credit program.
CHAPTER 4—THE PEACE CORPS
Sec. 541. Authorization of appropriations.
Sec. 542. Activities of the Peace Corps in the former Soviet Union and Mongolia.
Sec. 543. Amendments to the Peace Corps Act.
CHAPTER 5—INTERNATIONAL DISASTER ASSISTANCE
Sec. 551. Authority to provide reconstruction assistance.
Sec. 552. Authorizations of appropriations.
CHAPTER 6—DEBT RELIEF
Sec. 561. Debt restructuring for foreign assistance.
Sec. 562. Debt buybacks or sales for debt swaps.
CHAPTER 7—OTHER ASSISTANCE PROVISIONS
Sec. 571. Exemption from restrictions on assistance through nongovernmental or-
ganizations.
Sec. 572. Funding requirements relating to United States private and voluntary
organizations.
Sec. 573. Documentation requested of private and voluntary organizations.
Sec. 574. Encouragement of free enterprise and private participation.
Sec. 575. Sense of the Congress relating to United States cooperatives and credit
unions.
Sec. 576. Food assistance to the Democratic People’s Republic of Korea.
Sec. 577. Withholding of assistance to countries that provide nuclear fuel to Cuba.
TITLE VI—TRADE AND DEVELOPMENT AGENCY
Sec. 601. Authorization of appropriations.
TITLE VII—SPECIAL AUTHORITIES AND OTHER PROVISIONS
CHAPTER 1—SPECIAL AUTHORITIES
Sec. 701. Enhanced transfer authority.
Sec. 702. Authority to meet unanticipated contingencies.
Sec. 703. Special waiver authority.
Sec. 704. Termination of assistance.
Sec. 705. Local assistance to human rights groups in Cuba.
CHAPTER 2—REPEALS
Sec. 711. Repeal of obsolete provisions.
DIVISION B—FOREIGN RELATIONS AUTHORIZATIONS ACT
TITLE X—GENERAL PROVISIONS
Sec. 1001. Short title.
Sec. 1002. Statement of history of legislation.
Sec. 1003. Definitions.
TITLE XI—AUTHORIZATION OF APPROPRIATIONS FOR DEPART-
MENT OF STATE AND CERTAIN INTERNATIONAL AFFAIRS FUNC-
TIONS AND ACTIVITIES
Sec. 1101. Administration of Foreign Affairs.
Sec. 1102. International organizations, programs, and conferences.
Sec. 1103. International commissions.
Sec. 1104. Migration and refugee assistance.
Sec. 1105. Asia Foundation.
Sec. 1106. United States informational, educational, and cultural programs.
Sec. 1107. United States arms control and disarmament.
TITLE XII—DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES
CHAPTER 1—AUTHORITIES AND ACTIVITIES
Sec. 1201. Revision of Department of State rewards program.
Sec. 1202. Foreign Service National Separation Liability Trust Fund.
Sec. 1203. Capital Investment Fund.
Sec. 1204. International Center reserve funds.
Sec. 1205. Proceeds of sale of foreign properties.
Sec. 1206. Reduction of reporting.
Sec. 1207. Contracting for local guards services overseas.
Sec. 1208. Preadjudication of claims.
Sec. 1209. Expenses relating to certain international claims and proceedings.
Sec. 1210. Establishment of fee account and providing for passport information
services.
Sec. 1211. Establishment of machine readable fee account.
Sec. 1212. Retention of additional defense trade controls registration fees.
Sec. 1213. Training.
Sec. 1214. Recovery of costs of health care services.
Sec. 1215. Fee for use of diplomatic reception rooms.
Sec. 1216. Fees for commercial services.
Sec. 1217. Budget presentation documents.
Sec. 1218. Extension of certain adjudication provisions.
Sec. 1219. Grants to overseas educational facilities.
Sec. 1220. Grants to remedy international child abductions.
CHAPTER 2—CONSULAR AUTHORITIES OF THE DEPARTMENT OF STATE
Sec. 1241. Use of certain passport processing fees for enhanced passport services.
Sec. 1242. Consular officers.
Sec. 1243. Repeal of outdated consular receipt requirements.
Sec. 1244. Elimination of duplicate publication requirements.
CHAPTER 3—REFUGEES AND MIGRATION
Sec. 1261. Report to Congress concerning Cuban emigration policies.
Sec. 1262. Reprogramming of migration and refugee assistance funds.
TITLE XIII—ORGANIZATION OF THE DEPARTMENT OF STATE;
DEPARTMENT OF STATE PERSONNEL; THE FOREIGN SERVICE
CHAPTER 1—ORGANIZATION OF THE DEPARTMENT OF STATE
Sec. 1301. Coordinator for counterterrorism.
Sec. 1302. Elimination of statutory establishment of certain positions of the De-
partment of State.
Sec. 1303. Establishment of Assistant Secretary of State for Human Resources.
Sec. 1304. Establishment of Assistant Secretary of State for Diplomatic Security.
Sec. 1305. Special envoy for Tibet.
Sec. 1306. Responsibilities for bureau charged with refugee assistance.
CHAPTER 2—PERSONNEL OF THE DEPARTMENT OF STATE; THE FOREIGN
SERVICE
Sec. 1321. Authorized strength of the Foreign Service.
Sec. 1322. Nonovertime differential pay.
Sec. 1323. Authority of Secretary to separate convicted felons from service.
Sec. 1324. Career counseling.
Sec. 1325. Report concerning minorities and the Foreign Service.
Sec. 1326. Retirement benefits for involuntary separation.
Sec. 1327. Availability pay for certain criminal investigators within the diplo-
matic security service.
Sec. 1328. Labor management relations.
Sec. 1329. Office of the Inspector General.
TITLE XIV—UNITED STATES PUBLIC DIPLOMACY: AUTHORITIES
AND ACTIVITIES FOR UNITED STATES INFORMATIONAL, EDU-
CATIONAL, AND CULTURAL PROGRAMS
Sec. 1401. Extension of au pair programs.
Sec. 1402. Retention of interest.
Sec. 1403. Center for Cultural and Technical Interchange Between North and
South.
Sec. 1404. Use of selected program fees.
Sec. 1405. Muskie fellowship program.
Sec. 1406. Working group on United States Government sponsored international
exchanges and training.
Sec. 1407. Educational and cultural exchanges and scholarships for Tibetans and
Burmese.
Sec. 1408. United States-Japan commission.
Sec. 1409. Surrogate broadcasting studies.
Sec. 1410. Authority to administer summer travel/work programs.
Sec. 1411. Permanent administrative authorities regarding appropriations.
Sec. 1412. Authorities of the broadcasting board of governors.
TITLE XV—INTERNATIONAL ORGANIZATIONS; UNITED NATIONS AND
RELATED AGENCIES
CHAPTER 1—GENERAL PROVISIONS
Sec. 1501. Service in international organizations.
Sec. 1502. Organization of American States.
CHAPTER 2—UNITED NATIONS AND RELATED AGENCIES
Sec. 1521. Reform in budget decisionmaking procedures of the United Nations
and its specialized agencies.
Sec. 1522. Reports on efforts to promote full equality at the United Nations for
Israel.
Sec. 1523. United Nations Population Fund.
Sec. 1524. Continued extension of privileges, exemptions, and immunities of the
International Organizations Immunities Act to UNIDO.
TITLE XVI—ARMS CONTROL AND DISARMAMENT AGENCY
Sec. 1601. Comprehensive compilation of arms control and disarmament studies.
Sec. 1602. Use of funds.
TITLE XVII—FOREIGN POLICY PROVISIONS
Sec. 1701. United States policy regarding the involuntary return of refugees.
Sec. 1702. United States policy with respect to the involuntary return of persons
in danger of subjection to torture.
Sec. 1703. Reports on claims by United States firms against the Government of
Saudi Arabia.
Sec. 1704. Human rights reports.
Sec. 1705. Reports on determinations under title IV of the Libertad Act.
Sec. 1706. Reports and policy concerning diplomatic immunity.
Sec. 1707. Congressional statement with respect to efficiency in the conduct of for-
eign policy.
Sec. 1708. Congressional statement concerning Radio Free Europe/Radio Liberty.
Sec. 1709. Programs or projects of the International Atomic Energy Agency in
Cuba.
Sec. 1710. United States policy with respect to Jerusalem as the capital of Israel.
Sec. 1711. Report on compliance with the Hague Convention on International
Child Abduction.
Sec. 1712. Sense of Congress relating to recognition of the ecumenical patriarch-
ate by the government of Turkey.
Sec. 1713. Return of Hong Kong to People’s Republic of China.
Sec. 1714. Development of democracy in the Republic of Serbia.
Sec. 1715. Relations with Vietnam.
Sec. 1716. Statement concerning return of or compensation for wrongly con-
fiscated foreign properties.
DIVISION C—FUNDING LEVELS
Sec. 2001. Authorization of appropriations for certain programs.
DIVISION 
A—INTERNATIONAL
AFFAIRS AGENCY CONSOLIDA-
TION, FOREIGN ASSISTANCE
REFORM, AND FOREIGN AS-
SISTANCE AUTHORIZATIONS
TITLE I—GENERAL PROVISIONS
SEC. 101. SHORT TITLE.
This division may be cited as the ‘‘Foreign Assistance
Reform Act of 1997’’.
SEC. 102. DECLARATION OF POLICY.
The Congress declares the following:
(1) United States leadership overseas must be
maintained to support America’s vital national secu-
rity, economic, and humanitarian overseas interests.
(2) As part of this leadership, United States for-
eign assistance programs are essential to support
America’s overseas interests.
(3) Following the end of the Cold War, foreign
assistance programs must be reformed to take advan-
tage of the opportunities for the United States in the
21st century.
TITLE 
II—CONSOLIDATION 
OF
CERTAIN INTERNATIONAL AF-
FAIRS AGENCIES
CHAPTER 1—GENERAL PROVISIONS
SEC. 201. SHORT TITLE
This title may be cited as the ‘‘International Affairs
Agency Consolidation Act of 1997’’.
SEC. 202. DEFINITIONS.
The following terms have the following meanings for
the purposes of this title:
(1) The term ‘‘USAID’’ means the United States
Agency for International Development.
(2) The term ‘‘Federal agency’’ has the meaning
given to the term ‘‘agency’’ by section 551(1) of title
5, United States Code.
(3) The term ‘‘function’’ means any duty, obliga-
tion, power, authority, responsibility, right, privilege,
activity, or program.
CHAPTER 
2—UNITED 
STATES 
INTER-
NATIONAL DEVELOPMENT COOPERA-
TION AGENCY
Subchapter A—Abolition of United States
International Development Cooperation
Agency and Transfer of Functions to Unit-
ed States Agency for International Devel-
opment
SEC. 211. ABOLITION OF UNITED STATES INTERNATIONAL
DEVELOPMENT COOPERATION AGENCY.
(a) IN GENERAL.—The United States International
Development Cooperation Agency is hereby abolished.
(b) CONFORMING AMENDMENTS.—The following shall
cease to be effective:
(1) Reorganization Plan Numbered 2 of 1979 (5
U.S.C. App.).
(2) Sections 1–101 through 1–103, sections 1–
401 through 1–403, and such other provisions that re-
late to the United States International Development
Cooperation Agency or the Director of such Agency,
of Executive Order 12163 (22 U.S.C. 2381 note; relat-
ing to administration of foreign assistance and relat-
ed functions).
(3) The International Development Cooperation
Agency Delegation of Authority Numbered 1 (44 Fed.
Reg. 57521), except for section 1–6 of such Delegation
of Authority.
(4) Section 3 of Executive Order 12884 (58 Fed.
Reg. 64099; relating to the delegation of functions
under the Freedom for Russia and Emerging Eur-
asian Democracies and Open Markets Support Act of
1992, the Foreign Assistance Act of 1961, the Foreign
Operations, Export Financing and Related Programs
Appropriations Act, 1993, and section 301 of title 3,
United States Code).
(c) EFFECTIVE DATE.—This section shall take effect
6 months after the date of the enactment of this Act.
SEC. 212. TRANSFER OF FUNCTIONS TO UNITED STATES
AGENCY 
FOR 
INTERNATIONAL 
DEVELOP-
MENT.
(a) IN GENERAL.—There are transferred to the Admin-
istrator of the United States Agency for International De-
velopment all functions of the Director of United States
International Development Cooperation Agency and all
functions of such Agency and any officer or component of
such agency under any statute, reorganization plan, Execu-
tive order, or other provision of law before the effective date
of this title.
(b) EFFECTIVE DATE.—This section shall take effect
6 months after the date of the enactment of this Act.
SEC. 213. TRANSITION PROVISIONS.
(a) TRANSFER OF PERSONNEL, PROPERTY, RECORDS,
AND UNEXPENDED BALANCES.—
(1) PERSONNEL, PROPERTY, AND RECORDS.—So
much of the personnel, property, and records of the
United States International Development Cooperation
Agency as the Director of the Office of Management
and Budget shall determine shall be transferred to the
United States Agency for International Development
at such time or times as the Director of the Office of
Management and Budget shall provide.
(2) UNEXPENDED BALANCES.—To the extent pro-
vided in advance in appropriations Acts, so much of
the unexpended balances of appropriations, alloca-
tions, and other funds employed, used, held, available,
or to be made available to the United States Inter-
national Development Cooperation Agency as the Di-
rector of the Office of Management and Budget shall
determine shall be transferred to the United States
Agency for International Development at such time or
times as the Director of Office of Management and
Budget shall provide, except that no such unexpended
balances transferred shall be used for purposes other
than those for which the appropriation was originally
made.
(b) TERMINATING AGENCY AFFAIRS.—The Director of
the Office of Management and Budget shall provide for ter-
minating the affairs of the United States International De-
velopment Cooperation Agency and for such further meas-
ures and dispositions as such Director deems necessary to
accomplish the purposes of this subchapter.
Subchapter B—Continuation of United States
Agency 
for 
International 
Development
and Placement of Administrator of Agen-
cy under the Direction of the Secretary of
State
SEC. 221. CONTINUATION OF UNITED STATES AGENCY FOR
INTERNATIONAL DEVELOPMENT AND PLACE-
MENT 
OF 
ADMINISTRATOR 
OF 
AGENCY
UNDER THE DIRECTION OF THE SECRETARY
OF STATE.
(a) CONTINUATION OF USAID AS FEDERAL AGEN-
CY.—The United States Agency for International Develop-
ment, established in the Department of State pursuant to
the State Department Delegation of Authority Numbered
104 (26 Fed. Reg. 10608) and subsequently transferred to
the United States International Development Cooperation
Agency pursuant to the International Development Co-
operation Agency Delegation of Authority Numbered 1 (44
Fed. Reg. 57521), shall be continued in existence as a Fed-
eral agency of the United States.
(b) PLACEMENT
OF
ADMINISTRATOR
OF
USAID
UNDER DIRECTION OF SECRETARY OF STATE.—
(1) IN
GENERAL.—The Administrator of the
United States Agency for International Development,
appointed pursuant to section 624(a) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2384(a))—
(A) shall continue to head such Agency; and
(B) shall be under the direction of the Sec-
retary of State.
(2) OTHER REQUIREMENTS.—Except to the ex-
tent inconsistent with other provisions of this Act, the
Administrator—
(A) shall continue to exercise all functions
that the Administrator exercised before the effec-
tive date of this Act; and
(B) shall exercise all functions transferred
to the Administrator pursuant to section 212.
(c) OTHER OFFICERS OF AID.—The other officers of
the United States Agency for International Development,
appointed pursuant to section 624(a) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2384(a)), shall continue to ex-
ercise such functions as the Administrator deems appro-
priate.
Subchapter C—Conforming Amendments
SEC. 231. CONFORMING AMENDMENTS.
(a) TITLE
5, UNITED
STATES
CODE.—Section
7103(a)(2)(iv) of title 5, United States Code, is amended
by striking ‘‘the United States International Development
Cooperation Agency’’ and inserting ‘‘the United States
Agency for International Development’’.
(b) INSPECTOR GENERAL ACT OF 1978.—Section 8A
of the Inspector General Act of 1978 (5 U.S.C. App. 8A)
is amended—
(1) in subsection (a)—
(A) by striking paragraph (2);
(B) by striking ‘‘Agency for International
Development—’’ and all that follows through
‘‘shall supervise’’ and inserting ‘‘Agency for
International Development shall supervise’’; and
(C) by striking ‘‘; and’’ at the end and in-
serting a period;
(2) by striking subsection (c); and
(3) by striking subsection (f).
(c) INTERNATIONAL SECURITY AND DEVELOPMENT CO-
OPERATION ACT OF 1980.—Section 316 of the International
Security and Development Cooperation Act of 1980 (22
U.S.C. 2151 note) is amended—
(1) in subsection (a)—
(A) in the first sentence, by striking ‘‘Direc-
tor of the United States International Develop-
ment Cooperation Agency’’ and inserting ‘‘Ad-
ministrator of the United States Agency for
International Development’’; and
(B) in the second sentence, by striking ‘‘Di-
rector’’ and inserting ‘‘Administrator’’; and
(2) in subsection (b), by striking ‘‘Director’’ and
inserting ‘‘Administrator’’.
(d) STATE DEPARTMENT BASIC AUTHORITIES ACT OF
1956.—(1) Section 25(f) of the State Department Basic Au-
thorities Act of 1956 (22 U.S.C. 2697(f)) is amended by
striking ‘‘Director of the United States International Devel-
opment Cooperation Agency’’ and inserting ‘‘Administrator
of the United States Agency for International Develop-
ment’’.
(2) Section 26(b) of such Act (22 U.S.C. 2698(b)) is
amended by striking ‘‘Director of the United States Inter-
national Development Cooperation Agency’’ and inserting
‘‘Administrator of the United States Agency for Inter-
national Development’’.
(3) Section 32 of such Act (22 U.S.C. 2704) is amend-
ed in the second sentence by striking ‘‘Director of the United
States International Development Cooperation Agency’’
and inserting ‘‘Administrator of the United States Agency
for International Development’’.
(e) FOREIGN SERVICE ACT
OF 1980.—(1) Section
202(a)(1) of the Foreign Service Act of 1980 (22 U.S.C.
3922(a)(1)) is amended by striking ‘‘Director of the United
States International Development Cooperation Agency’’
and inserting ‘‘Administrator of the United States Agency
for International Development’’.
(2) Section 210 of such Act (22 U.S.C. 3930) is amend-
ed in the second sentence by striking ‘‘United States Inter-
national Development Cooperation Agency’’ and inserting
‘‘United States Agency for International Development’’.
(3) Section 1003(a) of such Act (22 U.S.C. 4103(a))
is amended by striking ‘‘United States International Devel-
opment Cooperation Agency’’ and inserting ‘‘United States
Agency for International Development’’.
(4) Section 1101(c) of such Act (22 U.S.C. 4131(c))
is amended by striking ‘‘United States International Devel-
opment Cooperation Agency’’ and inserting ‘‘United States
Agency for International Development’’.
(f) INTERNAL REVENUE CODE OF 1986.—(1) Section
170(m)(7) of the Internal Revenue Code of 1986, is amended
by striking ‘‘Director of the United States International De-
velopment Cooperation Agency’’ and inserting ‘‘Adminis-
trator of the United States Agency for International Devel-
opment’’.
(2) Section 2055(g)(6) of the Internal Revenue Code
of 1986, is amended by striking ‘‘Director of the United
States International Development Cooperation Agency’’
and inserting ‘‘Administrator of the United States Agency
for International Development’’.
(g) TITLE
49, UNITED
STATES
CODE.—Section
40118(d) of title 49, United States Code, is amended by
striking ‘‘Director of the United States International Devel-
opment Cooperation Agency’’ and inserting ‘‘Administrator
of the United States Agency for International Develop-
ment’’.
(h) EXPORT ADMINISTRATION ACT OF 1979.—Section
6(g) of the Export Administration Act of 1979 (50 U.S.C.
App. 2405(g)) is amended—
(1) in the third sentence, by striking ‘‘Director
of the United States International Development Co-
operation Agency’’ and inserting ‘‘Administrator of
the United States Agency for International Develop-
ment’’;
(2) in the fourth sentence, by striking ‘‘Director’’
and inserting ‘‘Administrator’’; and
(3) in the sixth sentence, by striking ‘‘Director of
the United States International Development Co-
operation Agency’’ and inserting ‘‘Administrator of
the United States Agency for International Develop-
ment’’.
SEC. 232. OTHER REFERENCES.
Any reference in any statute, reorganization plan, Ex-
ecutive order, regulation, agreement, determination, or
other official document or proceeding to—
(1) the Director of the United States Inter-
national Development Cooperation Agency or any
other officer or employee of the United States Inter-
national Development Cooperation Agency shall be
deemed to refer to the Administrator of the United
States Agency for International Development; and
(2) the United States International Development
Cooperation Agency shall be deemed to refer to the
United States Agency for International Development.
SEC. 233. EFFECTIVE DATE.
This subchapter shall take effect 6 months after the
date of the enactment of this Act.
TITLE III—FOREIGN ASSISTANCE
REFORM
SEC. 301. GRADUATION FROM DEVELOPMENT ASSISTANCE.
Section 634 of the Foreign Assistance Act of 1961 (22
U.S.C. 2394) is amended to read as follows:
‘‘SEC. 634. CONGRESSIONAL PRESENTATION DOCUMENTS.
‘‘(a) REQUIREMENT FOR SUBMISSION.—As part of the
annual requests for enactment of authorizations and appro-
priations for foreign assistance programs for each fiscal
year, the President shall prepare and transmit to the Con-
gress annual congressional presentation documents for the
programs authorized under this Act and the Arms Export
Control Act (22 U.S.C. 2751 et seq.).
‘‘(b) MATERIALS TO BE INCLUDED.—The documents
submitted pursuant to subsection (a) shall include—
‘‘(1) the rationale and direct United States na-
tional interest for the allocation of assistance or con-
tributions to each country, regional, or centrally-
funded program, or organization, as the case may be;
‘‘(2) a description of how each such program or
contribution supports the objectives of this Act or the
Arms Export Control Act, as the case may be;
‘‘(3) a description of planned country, regional,
or centrally-funded programs or contributions to
international organizations and programs for the
coming fiscal year; and
‘‘(4) for each country for which assistance is re-
quested under this Act or the Arms Export Control
Act—
‘‘(A) the total number of years since 1946
that the United States has provided assistance;
‘‘(B) the total amount of bilateral assistance
provided by the United States since 1946, in-
cluding the principal amount of all loans, cred-
its, and guarantees; and
‘‘(C) the total amount of assistance provided
to such country from all multilateral organiza-
tions to which the United States is a member,
including all international financial institu-
tions, the United Nations, and other inter-
national organizations.
‘‘(c) GRADUATION
FROM
DEVELOPMENT
ASSIST-
ANCE.—
‘‘(1) DETERMINATION.—As part of the congres-
sional presentation documents transmitted to the Con-
gress under this section, the President shall make a
separate determination for each country identified in
such documents for which bilateral development as-
sistance is requested, estimating the year in which
each such country will no longer be receiving bilateral
development assistance.
‘‘(2) DEVELOPMENT ASSISTANCE DEFINED.—For
purposes of this section, the term ‘development assist-
ance’ means assistance under—
‘‘(A) chapter 1 of part I of this Act;
‘‘(B) chapter 10 of part I of this Act;
‘‘(C) chapter 11 of part I of this Act; and
‘‘(D) the Support for East European De-
mocracy (SEED) Act of 1989 (22 U.S.C. 5401 et
seq.).’’.
SEC. 302. LIMITATION ON GOVERNMENT-TO-GOVERNMENT
ASSISTANCE.
(a) IN GENERAL.—For each of the fiscal years 1998
and 1999, the President should allocate an aggregate level
to private and voluntary organizations and cooperatives
under the Foreign Assistance Act of 1961 (22 U.S.C. 2151
et seq.) which reflects an increasing level allocated to such
organizations and cooperatives under such Act since fiscal
year 1995.
(b) DEFINITION.—For purposes of this section, the
term ‘‘private and voluntary organization’’ means a pri-
vate non-governmental organization which—
(1) is organized under the laws of a country;
(2) receives funds from private sources;
(3) operates on a not-for-profit basis with appro-
priate tax-exempt status if the laws of the country
grant such status to not-for-profit organizations;
(4) is voluntary in that it receives voluntary
contributions of money, time, or in-kind support from
the public; and
(5) is engaged or intends to be engaged in vol-
untary, charitable, development, or humanitarian as-
sistance activities.
(c) REPORT.—
(1) IN GENERAL.—Not later than September 30,
1997, the United States Agency for International De-
velopment shall submit a report to the Congress on
the amount of its funding being channeled through
and private and voluntary organizations.
(2) ADDITIONAL REQUIREMENTS.—(A) The re-
port should use fiscal year 1995 as a baseline and in-
clude an implementation plan for steadily increasing
the percentage of assistance channeled through such
organizations, consistent with the funding commit-
ment announced by Vice President Gore in March
1995.
(B) The report should also indicate the propor-
tion of funds made available under the following pro-
visions and channeled through such organizations:
(i) Chapter 11 of part I of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2295 et seq.).
(ii) The Support for East European Democ-
racy (SEED) Act of 1989 (22 U.S.C. 5401 et
seq.).
(iii) Chapter 4 of part II of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2346).
SEC. 303. MICRO- AND SMALL ENTERPRISE DEVELOPMENT
CREDITS.
Section 108 of the Foreign Assistance Act of 1961 (22
U.S.C. 2151f) is amended to read as follows:
‘‘SEC. 108. MICRO- AND SMALL ENTERPRISE DEVELOPMENT
CREDITS.
‘‘(a) FINDINGS AND POLICY.—The Congress finds and
declares that—
‘‘(1) the development of micro- and small enter-
prise, including cooperatives, is a vital factor in the
stable growth of developing countries and in the devel-
opment and stability of a free, open, and equitable
international economic system;
‘‘(2) it is, therefore, in the best interests of the
United States to assist the development of the private
sector in developing countries and to engage the Unit-
ed States private sector in that process;
‘‘(3) the support of private enterprise can be
served by programs providing credit, training, and
technical assistance for the benefit of micro- and
small enterprises; and
‘‘(4) programs that provide credit, training, and
technical assistance to private institutions can serve
‘‘(ii) Funds authorized to be appropriated
under this subparagraph shall be made available
for the subsidy cost, as defined in section 502(5)
of the Federal Credit Reform Act of 1990, for ac-
tivities under such subsection.
‘‘(B) $500,000 for each of the fiscal years
1998 and 1999 to carry out paragraphs (2) and
(3) of subsection (b).
‘‘(2) AVAILABILITY OF AMOUNTS.—Amounts au-
thorized to be appropriated under paragraph (1) are
authorized to remain available until expended.’’.
SEC. 304. MICROENTERPRISE DEVELOPMENT GRANT AS-
SISTANCE.
Chapter 1 of part I of the Foreign Assistance Act of
1961 (22 U.S.C. 2151 et seq.) is amended by inserting after
section 108, as amended by this Act, the following new sec-
tion:
‘‘SEC. 108A. MICROENTERPRISE DEVELOPMENT GRANT AS-
SISTANCE.
‘‘(a) AUTHORIZATION.—(1) In carrying out this part,
the Administrator of the United States Agency for Inter-
national Development is authorized to provide grant assist-
ance for programs of credit and other assistance for micro
enterprises in developing countries.
‘‘(2) Assistance authorized under paragraph (1) shall
be provided through organizations that have a capacity to
develop and implement microenterprise programs, includ-
ing particularly—
‘‘(A) United States and indigenous private
and voluntary organizations;
‘‘(B) United States and indigenous credit
unions and cooperative organizations; or
‘‘(C) other indigenous governmental and
nongovernmental organizations.
‘‘(3) Approximately one-half of the credit assistance
authorized under paragraph (1) shall be used for poverty
lending programs, including the poverty lending portion of
mixed programs. Such programs—
‘‘(A) shall meet the needs of the very poor mem-
bers of society, particularly poor women; and
‘‘(B) should provide loans of $300 or less in 1995
United States dollars to such poor members of society.
‘‘(4) The Administrator should continue support for
mechanisms that—
‘‘(A) provide technical support for field missions;
‘‘(B) strengthen the institutional development of
the intermediary organizations described in para-
graph (2); and
‘‘(C) share information relating to the provision
of assistance authorized under paragraph (1) between
such field missions and intermediary organizations.
‘‘(b) MONITORING SYSTEM.—In order to maximize the
sustainable development impact of the assistance authorized
under subsection (a)(1), the Administrator shall, in accord-
ance with section 1115 of title 31, United States Code (re-
lating to performance plans), establish a monitoring system
that—
‘‘(1) establishes performance goals for such assist-
ance and expresses such goals in an objective and
quantifiable form, to the extent feasible;
‘‘(2) establishes performance indicators to be
used in measuring or assessing the achievement of the
goals and objectives of such assistance; and
‘‘(3) provides a basis for recommendations for
adjustments to such assistance to enhance the sustain-
able development impact of such assistance, particu-
larly the impact of such assistance on the very poor,
particularly poor women.’’.
SEC. 305. PRIVATE SECTOR ENTERPRISE FUNDS.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151
et seq.) is amended by inserting after section 601 the follow-
ing new section:
‘‘SEC. 601A. PRIVATE SECTOR ENTERPRISE FUNDS.
‘‘(a) AUTHORITY.—(1) The President may provide
funds and support to Enterprise Funds designated in ac-
cordance with subsection (b) that are or have been estab-
lished for the purposes of promoting—
‘‘(A) development of the private sectors of eligible
countries, including small businesses, the agricultural
sector, and joint ventures with United States and host
country participants; and
‘‘(B) policies and practices conducive to private
sector development in eligible countries;
on the same basis as funds and support may be provided
with respect to Enterprise Funds for Poland and Hungary
under the Support for East European Democracy (SEED)
Act of 1989 (22 U.S.C. 5401 et seq.).
‘‘(2) Funds may be made available under this section
notwithstanding any other provision of law, except sections
502B and 490 of this Act.
‘‘(b) 
COUNTRIES
ELIGIBLE
FOR
ENTERPRISE
FUNDS.—(1) Except as provided in paragraph (2), the
President is authorized to designate a private, nonprofit or-
ganization as eligible to receive funds and support pursuant
to this section with respect to any country eligible to receive
assistance under part I of this Act in the same manner and
with the same limitations as set forth in section 201(d) of
the Support for East European Democracy (SEED) Act of
1989 (22 U.S.C. 5421(d)).
‘‘(2) The authority of paragraph (1) shall not apply
to any country with respect to which the President is au-
thorized to designate an enterprise fund under section
498B(c) of this Act or section 201 of the Support for East
European Democracy (SEED) Act of 1989 (22 U.S.C.
5421).
‘‘(c) TREATMENT EQUIVALENT TO ENTERPRISE FUNDS
FOR POLAND AND HUNGARY.—Except as otherwise specifi-
cally provided in this section, the provisions contained in
section 201 of the Support for East European Democracy
(SEED) Act of 1989 (22 U.S.C. 5421) (excluding the au-
thorizations of appropriations provided in subsection (b) of
that section) shall apply to any Enterprise Fund that re-
ceives Funds and support under this section. The officers,
members, or employees of an Enterprise Fund that receive
funds and support under this section shall enjoy the same
status under law that is applicable to officers, members, or
employees of the Enterprise Funds for Poland and Hungary
under section 201 of the Support for East European Democ-
racy (SEED) Act of 1989 (22 U.S.C. 5421).
‘‘(d) REPORTING
REQUIREMENT.—Notwithstanding
any other provision of this section, the requirement of sec-
tion 201(p) of the Support for East European Democracy
(SEED) Act of 1989 (22 U.S.C. 5421(p)), that an Enter-
prise Fund shall be required to publish an annual report
not later than January 31 each year, shall not apply with
respect to an Enterprise Fund that receives funds and sup-
port under this section for the first twelve months after it
is designated as eligible to receive such funds and support.
‘‘(e) FUNDING.—(1) Amounts made available for a fis-
cal year to carry out chapter 1 of part I of this Act (relating
to development assistance) and to carry out chapter 4 of
part II of this Act (relating to the economic support fund)
shall be available for such fiscal year to carry out this sec-
tion, in addition to amounts otherwise available for such
purposes.
‘‘(2) In addition to amounts available under para-
graph (1) for a fiscal year, amounts made available for such
fiscal year to carry out chapter 10 of part I of this Act
(relating to the Development Fund for Africa) shall be
available for such fiscal year to carry out this section with
respect to countries in Africa.’’.
SEC. 306. DEVELOPMENT CREDIT AUTHORITY.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151
et seq.) is amended by inserting after section 106 the follow-
ing:
‘‘SEC. 107A. DEVELOPMENT CREDIT AUTHORITY.
‘‘(a) GENERAL AUTHORITY.—The President is author-
ized to use credit authority (loans, loan guarantees, and
other investments involving the extension of credit) to
achieve any of the development purposes of this part in
cases where—
‘‘(1) the borrowers or activities are deemed suffi-
ciently creditworthy and do not otherwise have access
to such credit; and
‘‘(2) the use of credit authority would be appro-
priate to the achievement of such development pur-
poses.
‘‘(b) PRIORITY SECTOR POLICIES AND ACTIVITIES.—
‘‘(1) IN
GENERAL.—To the maximum extent
practicable, preference shall be given to the use of
credit authority to promote—
‘‘(A) micro- and small enterprise develop-
ment policies of section 108;
‘‘(B) sustainable urban and environmental
activities pursuant to the policy directives set
forth in this part; and
‘‘(C) other development activities that will
support and enhance grant-financed policy and
institutional reforms under this part.
‘‘(2) DEVELOPMENT
CREDIT
AUTHORITY.—The
credit authority described in paragraph (1) shall be
known as the ‘Development Credit Authority’.
‘‘(c) GENERAL AUTHORITY.—
‘‘(1) AUTHORITY.—Of the amounts made avail-
able to carry out this chapter, chapters 10 and 11 of
this part, chapter 4 of part II of this Act, and the
Support for East European Democracy (SEED) Act
of 1989 for fiscal years 1998 and 1999, not more than
$13,000,000 for each such fiscal year may be made
available to carry out this section.
‘‘(2) LIMITATIONS.—(A) Funds made available
under paragraph (1) shall be used for activities in the
same geographic region for which such funds were
originally allocated.
‘‘(B) The President shall notify the congressional
committees specified in section 634A at least fifteen
days in advance of each transfer of funds under para-
graph (1) in accordance with procedures applicable to
reprogramming notifications under such section.
‘‘(3) SUBSIDY COST.—Amounts made available
under paragraph (1) shall be made available for the
subsidy cost, as defined in section 502(5) of the Fed-
eral Credit Reform Act of 1990, for activities under
this section.
‘‘(4) ADMINISTRATIVE EXPENSES.—
‘‘(A) AMOUNTS MADE AVAILABLE.—Of the
amounts made available under paragraph (1) for
a fiscal year, not more than $1,500,000 may be
made available for administrative expenses to
carry out this section.
‘‘(B) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—In addition to amounts made available
under subparagraph (A), there are authorized to
be appropriated for administrative expenses to
carry out this section and section 221 $6,000,000
for each of the fiscal years 1998 and 1999.
‘‘(C) 
TRANSFER
AUTHORITY.—Amounts
made available under and subparagraph (A) and
amounts authorized to be appropriated under
subparagraph (B) may be transferred and
merged with amounts made available for ‘Oper-
ating Expenses of the Agency for International
Development’.
‘‘(5) AVAILABILITY.—Amounts made available
under paragraph (1) are authorized to remain avail-
able until expended.
‘‘(d) GENERAL PROVISIONS APPLICABLE TO DEVELOP-
MENT CREDIT AUTHORITY.—
‘‘(1) POLICY
PROVISIONS.—In providing the
credit assistance authorized by this section, the Presi-
dent should apply, as appropriate, the policy provi-
sions in this part applicable to development assist-
ance activities.
‘‘(2) 
DEFAULT
AND
PROCUREMENT
PROVI-
SIONS.—
‘‘(A) DEFAULT PROVISION.—The provisions
of section 620(q) of this Act, or any comparable
provisions of law, shall not be construed to pro-
hibit assistance to a country in the event that a
private sector recipient of assistance furnished
under this section is in default in its payment
to the United States for the period specified in
such section.
‘‘(B) PROCUREMENT
PROVISION.—Assist-
ance may be provided under this section without
regard to section 604(a) of this Act.
‘‘(3) TERMS AND CONDITIONS OF CREDIT ASSIST-
ANCE.—(A) Assistance provided under this section
shall be offered on such terms and conditions, includ-
ing fees charged, as the President may determine.
‘‘(B) The principal amount of loans made or
guaranteed under this section in any fiscal year, with
respect to any single country or borrower, may not
exceed $100,000,000.
‘‘(C) No payment may be made under any guar-
antee issued under this section for any loss arising
out of fraud or misrepresentation for which the party
seeking payment is responsible.
‘‘(4) FULL FAITH AND CREDIT.—All guarantees
issued under this section shall constitute obligations,
in accordance with the terms of such guarantees, of
the United States of America and the full faith and
credit of the United States of America is hereby
pledged for the full payment and performance of such
obligations to the extent of the guarantee.
‘‘(5) CO-FINANCING AND RISK SHARING.—
‘‘(A) IN GENERAL.—(i) Assistance provided
under this section shall be in the form of co-fi-
nancing or risk sharing.
‘‘(ii) Credit assistance may not be provided
to a borrower under this section unless the Ad-
ministrator of the United States Agency for
International Development determines that there
are reasonable prospects of repayment by such
borrower.
‘‘(B) ADDITIONAL REQUIREMENT.—The in-
vestment or risk of the United States in any one
development activity may not exceed 80 percent
of the total outstanding investment or risk.
‘‘(6) ELIGIBLE BORROWERS.—
‘‘(A) IN GENERAL.—In order to be eligible
to receive credit assistance under this section, a
borrower shall be sufficiently credit worthy so
that the estimated costs (as defined in section
502 of the Federal Credit Reform Act of 1990)
of the proposed credit assistance for the borrower
does not exceed 30 percent of the principal
amount of credit assistance to be received.
‘‘(B) ADDITIONAL
REQUIREMENT.—(i) In
addition, with respect to the eligibility of foreign
governments as an eligible borrowers under this
section, the Administrator of the United States
Agency for International Development shall
make a determination that the additional debt of
the government will not exceed the debt repay-
ment capacity of the government.
‘‘(ii) In making the determination under
clause (i), the Administrator shall consult, as ap-
propriate, with international financial institu-
tions and other institutions or agencies that as-
sess debt service capacity.
‘‘(7) ASSESSMENT
OF
CREDIT
RISK.—(A) The
Administrator of the United States Agency for Inter-
national Development shall use the Interagency Coun-
try Risk Assessment System (ICRAS) and the meth-
odology approved by the Office of Management and
Budget to assess the cost of risk credit assistance pro-
vided under this section to foreign governments.
‘‘(B) With respect to the provision of credit to
nongovernmental organizations, the Administrator—
‘‘(i) shall consult with appropriate private
sector institutions, including the two largest
United States private sector debt rating agencies,
prior to establishing the risk assessment stand-
ards and methodologies to be used; and
‘‘(ii) shall periodically consult with such in-
stitutions in reviewing the performance of such
standards and methodologies.
‘‘(C) In addition, if the anticipated share of fi-
nancing attributable to public sector owned or con-
trolled entities, including the United States Agency
for International Development, exceeds 49 percent, the
Administrator shall determine the cost (as defined in
section 502(5) of the Federal Credit Reform Act of
1990) of such assistance by using the cost and risk as-
sessment determinations of the private sector co-fi-
nancing entities.
‘‘(8) USE
OF
UNITED
STATES
TECHNOLOGY,
FIRMS, AND EQUIPMENT.—Activities financed under
this section shall, to the maximum extent practicable,
use or employ United States technology, firms, and
equipment.’’.
SEC. 307. FOREIGN GOVERNMENT PARKING FINES.
(a) IN GENERAL.—Chapter 1 of part III of the Foreign
Assistance Act of 1961 (22 U.S.C. 2351 et seq.), as amended
by this Act, is further amended by adding at the end the
following new section:
‘‘SEC. 620K. FOREIGN GOVERNMENT PARKING FINES.
‘‘(a) IN GENERAL.—An amount equivalent to 110 per-
cent of the total unpaid fully adjudicated parking fines and
penalties owed to the District of Columbia, Virginia, Mary-
land, New York, and New York City by the government of
a foreign country as of the end of a fiscal year, as certified
and transmitted to the President by the chief executive offi-
cer of each State, City, or District, shall be withheld from
obligation for such country out of funds available in the
next fiscal year to carry out part I of this Act, until the
requirement of subsection (b) is satisfied.
‘‘(b) REQUIREMENT.—The requirement of this sub-
section is satisfied when the Secretary of State determines
and certifies to the appropriate congressional committees
that such fines and penalties are fully paid to the govern-
ments of the District of Columbia, Virginia, Maryland, and
New York.
‘‘(c) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—For purposes of this section, the term ‘appropriate
congressional committees’ means the Committee on Inter-
national Relations and the Committee on Appropriations
of the House of Representatives and the Committee on For-
eign Relations and the Committee on Appropriations of the
Senate.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply with respect to fines certified as of
the end of fiscal year 1998 or any fiscal year thereafter.
(c) TECHNICAL
AMENDMENT.—The second section
620G of the Foreign Assistance Act of 1961, as added by
section 149 of Public Law 104–164 (110 Stat. 1436), is
amended—
(1) by redesignating such section as section 620J
of such Act; and
(2) by inserting such section after section 620I
of such Act.
SEC. 308. WITHHOLDING UNITED STATES ASSISTANCE TO
COUNTRIES THAT AID THE GOVERNMENT OF
CUBA.
(a) IN GENERAL.—Except as provided in subsection
(b), not later than 180 days after the date of the enactment
of this Act, the President shall withhold assistance under
the Foreign Assistance Act of 1961 to any foreign govern-
ment providing economic, development, or security assist-
ance for, or engaging in nonmarket based trade with the
Government of Cuba.
(b) WAIVER.—The President may waive the provisions
of subsection (a) if the President certifies to the appropriate
congressional committees that the provision of United
States assistance is important to the national security of
the United States.
(c) NONMARKET BASED TRADE DEFINED.—For the
purpose of this section, the term ‘‘nonmarket based trade’’
means exports, imports, exchanges, or other arrangements
that are provided for goods and services on terms more fa-
vorable than those generally available in applicable markets
or for comparable commodities, including—
(1) exports to the Cuban Government on terms
that involve a grant, concessional price, guaranty, in-
surance, or subsidy;
(2) imports from the Cuban Government at pref-
erential tariff rates;
(3) exchange arrangements that include advance
delivery of commodities, arrangements in which the
Cuban Government is not held accountable for
unfulfilled exchange contracts, and arrangements
under which Cuba does not pay appropriate trans-
portation, insurance, or finance costs; and
(4) the exchange, reduction, or forgiveness of debt
of the Cuban Government in exchange for a grant by
the Cuban Government of an equity interest in a
property, investment, or operation of the Cuban Gov-
ernment or of a Cuban national.
TITLE IV—DEFENSE AND
SECURITY ASSISTANCE
CHAPTER 1—NARCOTICS CONTROL
ASSISTANCE
SEC. 401. DEFINITION.
(a) IN GENERAL.—Section 481(e)(4) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2291(e)(4)) is amended—
(1) in subparagraph (A)(ii), inserting ‘‘or under
chapter 5 of part II’’ after ‘‘(including chapter 4 of
part II)’’; and
(2) in subparagraph (B), by inserting before the
semicolon at the end the following: ‘‘, other than sales
or financing provided for narcotics-related purposes
following notification in accordance with procedures
applicable to reprogramming notifications under sec-
tion 634A of this Act’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall apply with respect to assistance provided
on or after the date of the enactment of this Act.
SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
Section 482(a)(1) of the Foreign Assistance Act of 1961
(22 
U.S.C. 
2291a(a)(1)) 
is 
amended 
by 
striking
‘‘$147,783,000 for fiscal year 1993 and $171,500,000 for
fiscal year 1994’’ and inserting ‘‘$230,000,000 for each of
the fiscal years 1998 and 1999’’.
SEC. 403. AUTHORITY TO WITHHOLD BILATERAL ASSIST-
ANCE AND OPPOSE MULTILATERAL DEVELOP-
MENT ASSISTANCE FOR MAJOR ILLICIT DRUG
PRODUCING 
COUNTRIES, 
DRUG-TRANSIT
COUNTRIES, AND MONEY LAUNDERING COUN-
TRIES.
(a) IN GENERAL.—Section 490 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2291j) is amended to read as
follows:
‘‘SEC. 490. AUTHORITY TO WITHHOLD BILATERAL ASSIST-
ANCE AND OPPOSE MULTILATERAL DEVELOP-
MENT ASSISTANCE FOR MAJOR ILLICIT DRUG
PRODUCING 
COUNTRIES, 
DRUG-TRANSIT
COUNTRIES, AND MONEY LAUNDERING COUN-
TRIES.
‘‘(a) IN GENERAL.—For every country identified in
the report under section 489(a)(3), the President shall, on
or after March 1, 1998, and March 1 of each succeeding
year, to the extent considered necessary by the President
to achieve the purposes of this chapter, take one or more
of the following actions:
‘‘(1) Withhold from obligation and expenditure
any or all United States assistance allocated each fis-
cal year in the report required by section 653 for each
such country.
‘‘(2) Instruct the Secretary of the Treasury to in-
struct the United States Executive Director of each
multilateral development bank to vote, on and after
March 1 of each year, against any loan or other utili-
zation of the funds of their respective institution to or
for any such country.
‘‘(b) CONSIDERATIONS.—In determining whether or
not take one or more actions described in subsection (a),
the President shall consider the extent to which—
‘‘(1) the country has—
‘‘(A) met the goals and objectives of the
United Nations Convention Against Illicit Traf-
fic in Narcotic Drugs and Psychotropic Sub-
stances, including action on such issues as illicit
cultivation, production, distribution, sale, trans-
port and financing, and money laundering, asset
seizure, extradition, mutual legal assistance, law
enforcement and transit cooperation, precursor
chemical control, and demand reduction;
‘‘(B) accomplished the goals described in an
applicable bilateral narcotics agreement with the
United States or a multilateral agreement;
‘‘(C) reached agreement, or is negotiating in
good faith to reach agreement, to ensure that
banks and other financial institutions of the
country maintain adequate records of large
United States currency transactions;
‘‘(D) reached agreement, or is negotiating
in good faith to reach agreement, to establish a
mechanism for exchanging adequate records on
international currency transactions in connec-
tion with narcotics investigations and proceed-
ings; and
‘‘(E) taken legal and law enforcement meas-
ures to prevent and punish public corruption, es-
pecially by senior government officials, that fa-
cilitates the production, processing, or shipment
of narcotic and psychotropic drugs and other
controlled substances, or that discourages the in-
vestigation or prosecution of such acts; and
‘‘(2) such actions will—
‘‘(A) promote the purposes of this chapter;
and
‘‘(B) affect other United States national in-
terests.
‘‘(c) CONSULTATIONS WITH THE CONGRESS.—
‘‘(1) CONSULTATIONS.—The President shall con-
sult with the Congress on the status of counter-narcot-
ics cooperation between the United States and each
major illicit drug producing country, major drug-
transit country, or major money laundering country.
‘‘(2) PURPOSE.—
‘‘(A) IN GENERAL.—The purpose of the con-
sultations under paragraph (1) shall be to facili-
tate improved discussion and understanding be-
tween the Congress and the President on United
States counter-narcotics goals and objectives with
regard to the countries described in paragraph
(1), including the strategy for achieving such
goals and objectives.
‘‘(B) REGULAR
AND
SPECIAL
CONSULTA-
TIONS.—In order to carry out subparagraph (A),
the President (or senior officials designated by
the President who are responsible for inter-
national narcotics programs and policies) shall
meet with Members of Congress—
‘‘(i) on a quarterly basis for discus-
sions and consultations; and
‘‘(ii) whenever time-sensitive issues
arise.
‘‘(d) DEFINITION.—For purposes of this section, the
term ‘multilateral development bank’ means the Inter-
national Bank for Reconstruction and Development, the
International Development Association, the Inter-American
Development Bank, the Asian Development Bank, the Afri-
can Development Bank, and the European Bank for Recon-
struction and Development.’’.
(b) 
CONFORMING
AMENDMENTS.—(1) 
Section
481(e)(8) of such Act (22 U.S.C. 2291(e)(8)) is amended
by striking ‘‘Committee on Foreign Affairs’’ and inserting
‘‘Committee on International Relations’’.
(2) Section 485(b) of such Act (22 U.S.C. 2291d(b))
is amended by striking ‘‘Committee on Foreign Affairs’’
and inserting ‘‘Committee on International Relations’’.
(3) Section 488(a)(3) of such Act (22 U.S.C.
2291g(a)(3)) is amended by striking ‘‘Committee on For-
eign Affairs’’ and inserting ‘‘Committee on International
Relations’’.
(4) Section 489(a) of such Act (22 U.S.C. 2291h(a))
is amended—
(A) in paragraph (3)(A), by striking ‘‘as deter-
mined under section 490(h)’’; and
(B) in the matter preceding subparagraph (A) of
paragraph (7), by striking ‘‘paragraph (3)(D)’’ and
inserting ‘‘paragraph (3)(C)’’.
CHAPTER 
2—NONPROLIFERATION,
ANTITERRORISM, DEMINING, AND RE-
LATED PROGRAMS
SEC. 
411. 
NONPROLIFERATION, 
ANTITERRORISM,
DEMINING, AND RELATED PROGRAMS.
(a) IN GENERAL.—Part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2301 et seq.) is amended by adding
at the end the following:
‘‘CHAPTER 
9—NONPROLIFERATION,
ANTITERRORISM, DEMINING AND RE-
LATED PROGRAMS
‘‘SEC. 581. NONPROLIFERATION AND DISARMAMENT FUND.
‘‘(a) ESTABLISHMENT OF FUND.—The President shall
establish a Nonproliferation and Disarmament Fund,
which may be used notwithstanding any other provision of
law, to promote bilateral and multilateral nonproliferation
and disarmament activities—
‘‘(1) to halt the proliferation of nuclear, biologi-
cal, and chemical weapons, their delivery systems, re-
lated technologies, and other weapons;
‘‘(2) to dismantle and destroy nuclear, biological,
and chemical weapons, their delivery systems, and
conventional weapons;
‘‘(3) to prevent the diversion of weapons-related
scientific and technical expertise; and
‘‘(4) to support science and technology centers in
Russia and the Ukraine.
‘‘(b) PROHIBITED ACTIVITIES.—Amounts made avail-
able to carry out subsection (a) may not be used to imple-
ment United States obligations pursuant to bilateral or
multilateral arm control treaties or nonproliferation ac-
cords, including the payment of salaries and expenses.
‘‘(c) ADDITIONAL REQUIREMENTS.—
‘‘(1) NOTIFICATION.—Amounts made available to
carry out subsection (a) may be provided only if the
congressional committees specified in section 634A of
this Act are notified at least fifteen days before pro-
viding funds under such subsection in accordance
with procedures applicable to reprogramming notifi-
cations under such section.
‘‘(2) 
ASSISTANCE
FOR
THE
INDEPENDENT
STATES OF THE FORMER SOVIET UNION AND INTER-
NATIONAL ORGANIZATIONS.—Amounts made available
to carry out subsection (a) may only be provided for
the independent states of the former Soviet Union and
international organizations if the Secretary of
State—
‘‘(A) determines it is in the national inter-
est of the United States to do so; and
‘‘(B) includes such determination in the no-
tification described in paragraph (1).
‘‘(d) AVAILABILITY OF AMOUNTS.—
‘‘(1) IN GENERAL.—Of the amounts made avail-
able to carry out this chapter for fiscal years 1998
and 1999—
‘‘(A) not less than $15,000,000 for each such
fiscal year may be made available to carry out
subsection (a); and
‘‘(B) not more than $5,000,000 of the
amount made available under subparagraph (A)
for fiscal year 1998, and not more than
$3,000,000 of such amount made available in fis-
cal year 1999, may be used to support export
control programs.
‘‘(2) AVAILABILITY.—Amounts made available
under paragraph (1) are authorized to remain avail-
able until expended.
‘‘SEC. 582. ASSISTANCE FOR ANTITERRORISM.
‘‘Amounts made available to carry out this chapter for
fiscal years 1998 and 1999 may be made available to carry
out chapter 8 of part II of this Act.
‘‘SEC. 583. ASSISTANCE FOR DEMINING.
‘‘The President is authorized to provide assistance for
demining activities, notwithstanding any other provision of
law, including—
‘‘(1) to enhance the ability of countries, inter-
national organizations, and nongovernmental organi-
zations to detect and clear landmines; and
‘‘(2) to educate affected populations about the
dangers of landmines.
‘‘SEC. 584. ASSISTANCE FOR RELATED PROGRAMS.
‘‘(a) IN GENERAL.—Amounts made available to carry
out this chapter for fiscal years 1998 and 1999 may be
made available to carry out section 301 of this Act for vol-
untary contributions to the International Atomic Energy
Agency (IAEA) and the Korean Peninsula Energy Develop-
ment Organization (KEDO) and to programs administered
by such organizations. –
‘‘(b) LIMITATION.—Of the amounts made available
under subsection (a) for fiscal years 1998 and 1999, not
more than $30,000,000 may be made available for each fis-
cal year to KEDO for the administrative expenses and
heavy fuel oil costs associated with implementation of the
Agreed Framework.
‘‘SEC. 585. DEFINITIONS.
‘‘As used in this chapter—
‘‘(1) AGREED FRAMEWORK.—The term ‘Agreed
Framework’ means the documents agreed to between
the United States and the Democratic People’s Repub-
lic of Korea on October 21, 1994, regarding elimi-
nation of the nuclear weapons program of the Demo-
cratic People’s Republic of Korea and the provision of
certain assistance to that country.
‘‘(2) INDEPENDENT STATES OF THE FORMER SO-
VIET
UNION.—The term ‘independent states of the
former Soviet Union’ has the meaning given such
term in section 3 of the Freedom for Russia and
Emerging Eurasian Democracies and Open Markets
Support Act of 1992 (22 U.S.C. 5801).
‘‘SEC. 586. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated $110,000,000 for fiscal
year 1998 and $111,000,000 for fiscal year 1999, in addi-
tion to amounts otherwise available for such purposes, to
carry out the purpose of this chapter. –
‘‘(b) ADMINISTRATIVE AUTHORITIES.—Any agency of
the United States Government may utilize such funds in
accordance with authority granted under this Act or under
authority governing the activities of that agency.
‘‘(c) DESIGNATION
OF
ACCOUNT.—Appropriations
pursuant to subsection (a) may be referred to as the ‘Non-
proliferation, Antiterrorism, Demining and Related Pro-
grams Account’ or ‘NADR Account’.’’.
(b) REFERENCE IN OTHER PROVISIONS OF LAW.—A
reference in any other provision of law to section 504 of
the Freedom for Russia and Emerging Eurasian Democ-
racies and Open Markets Support Act of 1992 (22 U.S.C.
5854) shall be deemed to include a reference to chapter 9
of part II of the Foreign Assistance Act of 1961, as added
by subsection (a).
(c) CONFORMING AMENDMENTS.—(1) Section 504 of
the Freedom for Russia and Emerging Eurasian Democ-
racies and Open Markets Support Act of 1992 (22 U.S.C.
5854) is hereby repealed.
(2) The table of contents of such Act is amended by
striking the item relating to section 504.
CHAPTER 3—FOREIGN MILITARY
FINANCING PROGRAM
SEC. 421. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Presi-
dent for grant assistance under section 23 of the Arms Ex-
port Control Act (22 U.S.C. 2763) and for the subsidy cost,
as defined in section 502(5) of the Federal Credit Reform
Act of 1990, of direct loans under such section—
(1) $3,318,000,000 for fiscal year 1998; and
(2) $3,274,250,000 for fiscal year 1999.
SEC. 422. ASSISTANCE FOR ISRAEL.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under section 23 of the Arms Export Control Act (22 U.S.C.
2763; relating to the ‘‘Foreign Military Financing Pro-
gram’’), not less than $1,800,000,000 for each such fiscal
year shall be available only for Israel.
(b) TERMS OF ASSISTANCE.—
(1) GRANT BASIS.—The assistance provided for
Israel for each fiscal year under subsection (a) shall
be provided on a grant basis.
(2) EXPEDITED
DISBURSEMENT.—Such assist-
ance shall be disbursed—
(A) with respect to fiscal year 1998, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Financ-
ing, and Related Programs Appropriations Act,
1998, or by October 31, 1997, whichever is later;
and
(B) with respect to fiscal year 1999, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Financ-
ing, and Related Programs Appropriations Act,
1999, or by October 31, 1998, whichever is later.
(3) ADVANCED WEAPONS SYSTEMS.—To the ex-
tent that the Government of Israel requests that funds
be used for such purposes, funds described in sub-
section (a) shall, as agreed by the Government of Is-
rael and the Government of the United States, be
available for advanced weapons systems, of which not
less than $475,000,000 for each fiscal year shall be
available only for procurement in Israel of defense ar-
ticles and defense services, including research and de-
velopment.
SEC. 423. ASSISTANCE FOR EGYPT.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under section 23 of the Arms Export Control Act (22 U.S.C.
2763; relating to the ‘‘Foreign Military Financing Pro-
gram’’ account), not less than $1,300,000,000 for each such
fiscal year shall be available only for Egypt.
(b) TERMS OF ASSISTANCE.—The assistance provided
for Egypt for each fiscal year under subsection (a) shall
be provided on a grant basis.
SEC. 424. AUTHORIZATION OF ASSISTANCE TO FACILITATE
TRANSITION TO NATO MEMBERSHIP UNDER
NATO PARTICIPATION ACT OF 1994.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under section 23 of the Arms Export Control Act (22 U.S.C.
2763; relating to the ‘‘Foreign Military Financing Pro-
gram’’), not less than $50,900,000 for each such fiscal year
shall be made available for the program established under
section 203(a) of the NATO Participation Act of 1994 (title
II of Public Law 103–447; 22 U.S.C. 1928 note).
(b) TERMS OF ASSISTANCE.—The assistance provided
under subsection (a) may be provided on a grant basis, and
may also be made available for the subsidy cost, as defined
in section 502(5) of the Federal Credit Reform Act of 1990,
of direct loans to countries eligible for assistance under the
program established under section 203(a) of the NATO Par-
ticipation Act of 1994 (title II of Public Law 103–447; 22
U.S.C. 1928 note).
SEC. 425. LOANS FOR GREECE AND TURKEY.
Of the amounts made available for fiscal year 1998
under section 23 of the Arms Export Control Act (22 U.S.C.
2763)—
(1) not more than $12,850,000 shall be made
available for the subsidy cost, as defined in section
502(5) of the Federal Credit Reform Act of 1990, of
direct loans for Greece; and
(2) not more than $33,150,000 shall be made
available for such subsidy cost of direct loans for Tur-
key.
SEC. 426. LIMITATIONS ON LOANS.
Of the amounts made available for fiscal year 1999
under section 23 of the Arms Export Control (22 U.S.C.
2763) for the subsidy cost, as defined in section 502(5) of
the Federal Credit Reform Act of 1990, of direct loans, no
such amounts shall be made available to any country which
has an Inter-Agency Country Risk Assessment Systems
(ICRAS) rating of less than grade C-.
SEC. 427. ADMINISTRATIVE EXPENSES.
Of the amounts made available for fiscal years 1998
and 1999 for assistance under section 23 of the Arms Ex-
port Control Act (22 U.S.C. 2763; relating to the ‘‘Foreign
Military Financing Program’’), not more than $23,250,000
for each of the fiscal years 1998 and 1999 may be made
available for necessary expenses for the general costs of ad-
ministration of military assistance and sales, including ex-
penses incurred in purchasing passenger motor vehicles for
replacement for use outside the United States.
CHAPTER 4—INTERNATIONAL MILITARY
EDUCATION AND TRAINING
SEC. 431. AUTHORIZATION OF APPROPRIATIONS.
Section 542 of the Foreign Assistance Act of 1961 (22
U.S.C. 2347a) is amended by striking ‘‘$56,221,000 for the
fiscal year 1986 and $56,221,000 for the fiscal year 1987’’
and inserting ‘‘$50,000,000 for each of the fiscal years 1998
and 1999’’.
SEC. 432. IMET ELIGIBILITY FOR PANAMA AND HAITI.
Notwithstanding section 660(c) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2420(c)), assistance under
chapter 5 of part II of such Act (22 U.S.C. 2347) may be
provided to Panama and Haiti for each of the fiscal years
1998 and 1999.
CHAPTER 5—TRANSFER OF NAVAL VES-
SELS TO CERTAIN FOREIGN COUN-
TRIES
SEC. 441. AUTHORITY TO TRANSFER NAVAL VESSELS.
(a) BRAZIL.—The Secretary of the Navy is authorized
to transfer to the Government of Brazil the ‘‘HUNLEY’’
class submarine tender HOLLAND (AS 32).
(b) CHILE.—The Secretary of the Navy is authorized
to transfer to the Government of Chile the ‘‘KAISER’’ class
oiler ISHERWOOD (T–AO 191).
(c) EGYPT.—The Secretary of the Navy is authorized
to transfer to the Government of Egypt the ‘‘KNOX’’ class
frigates PAUL (FF 1080), MILLER (FF 1091), JESSE
L. BROWN (FFT 1089), and MOINESTER (FFT 1097),
and the ‘‘OLIVER HAZARD PERRY’’ class frigates
FAHRION (FFG 22) and LEWIS B. PULLER (FFG 23).
(d) ISRAEL.—The Secretary of the Navy is authorized
to transfer to the Government of Israel the ‘‘NEWPORT’’
class tank landing ship PEORIA (LST 1183).
(e) MALAYSIA.—The Secretary of the Navy is author-
ized to transfer to the Government of Malaysia the ‘‘NEW-
PORT’’ class tank landing ship BARBOUR COUNTY
(LST 1195).
(f) MEXICO.—The Secretary of the Navy is authorized
to transfer to the Government of Mexico the ‘‘KNOX’’ class
frigate ROARK (FF 1053).
(g) TAIWAN.—The Secretary of the Navy is authorized
to transfer to the Taipei Economic and Cultural Represent-
ative Office in the United States (which is the Taiwan in-
strumentality designated pursuant to section 10(a) of the
Taiwan Relations Act) the ‘‘KNOX’’ class frigates WHIP-
PLE (FF 1062) and DOWNES (FF 1070).
(h) THAILAND.—The Secretary of the Navy is author-
ized to transfer to the Government of Thailand the ‘‘NEW-
PORT’’ class tank landing ship SCHENECTADY (LST
1185).
(i) FORM OF TRANSFERS.—Each transfer authorized
by this section shall be on a sales basis under section 21
of the Arms Export Control Act (22 U.S.C. 2761; relating
to the foreign military sales program).
SEC. 442. COSTS OF TRANSFERS.
Any expense of the United States in connection with
a transfer authorized by this chapter shall be charged to
the recipient.
SEC. 443. EXPIRATION OF AUTHORITY.
The authority granted by section 451 shall expire at
the end of the 2-year period beginning on the date of the
enactment of this Act.
SEC. 444. REPAIR AND REFURBISHMENT OF VESSELS IN
UNITED STATES SHIPYARDS.
The Secretary of the Navy shall require, to the maxi-
mum extent possible, as a condition of a transfer of a vessel
under this chapter, that the country to which the vessel is
transferred have such repair or refurbishment of the vessel
as is needed, before the vessel joins the naval forces of that
country, performed at a shipyard located in the United
States, including a United States Navy shipyard.
CHAPTER 6—INDONESIA MILITARY
ASSISTANCE ACCOUNTABILITY ACT
SEC. 451. SHORT TITLE.
This chapter may be cited as the ‘‘Indonesia Military
Assistance Accountability Act’’.
SEC. 452. FINDINGS.
The Congress finds the following:
(1)(A) Despite a surface adherence to democratic
forms, the Indonesian political system remains
strongly authoritarian.
(B) The government is dominated by an elite
comprising President Soeharto (now in his sixth 5-
year term), his close associates, and the military.
(C) The government requires allegiance to a state
ideology known as ‘‘Pancasila’’, which stresses con-
sultation and consensus, but is also used to limit dis-
sent, to enforce social and political cohesion, and to
restrict the development of opposition elements.
(2) The Government of Indonesia recognizes only
one official trade union, has refused to register inde-
pendent trade unions such as the Indonesian Prosper-
ity Trade Union (SBSI), has arrested Muchtar
Pakpahan, the General Chairman of the SBSI, on
charges of subversion, and other labor activists, and
has closed the offices and confiscated materials of the
SBSI.
(3) Civil society organizations in Indonesia, such
as environmental organizations, election-monitoring
organizations, legal aid organizations, student orga-
nizations, trade union organizations, and community
organizations, have been harassed by the Government
of Indonesia through such means as detentions, inter-
rogations, denial of permission for meetings, banning
of publications, repeated orders to report to security
forces or judicial courts, and illegal seizure of docu-
ments.
(4)(A) The armed forces of Indonesia continue to
carry out torture and other severe violations of
human rights in East Timor, Irian Jaya, and other
parts of Indonesia, to detain and imprison East
Timorese and others for nonviolent expression of po-
litical views, and to maintain unjustifiably high
troop levels in East Timor.
(B) Indonesian civil authorities must improve
their human rights performance in East Timor, Irian
Jaya, and elsewhere in Indonesia, and aggressively
prosecute violations.
(5) The Nobel Prize Committee awarded the 1996
Nobel Peace Prize to Bishop Carlos Felipe Ximenes
Belo and Jose Ramos Horta for their tireless efforts
to find a just and peaceful solution to the conflict in
East Timor.
(6) In 1992, the Congress suspended the inter-
national military and education training (IMET)
program for Indonesia in response to a November 12,
1991, shooting incident in East Timor by Indonesian
security forces against peaceful Timorese demonstra-
tors in which no progress has been made in account-
ing for the missing persons either in that incident or
others who disappeared in 1995–96.
(7) On August 1, 1996, then Secretary of State
Warren Christopher stated in testimony before the
Committee on Foreign Relations of the Senate, ‘‘I
think there’s a strong interest in seeing an orderly
transition of power there [in Indonesia] that will rec-
ognize the pluralism that should exist in a country of
that magnitude and importance.’’.
(8) The United States has important economic,
commercial, and security interests in Indonesia be-
cause of its growing economy and markets and its
strategic location astride a number of key inter-
national straits which will only be strengthened by
democratic development in Indonesia and a policy
which promotes political pluralism and respect for
universal human rights.
SEC. 453. LIMITATION ON MILITARY ASSISTANCE TO THE
GOVERNMENT OF INDONESIA.
(a) IN GENERAL.—The United States shall not provide
military assistance and arms transfers programs for a fis-
cal year to the Government of Indonesia unless the Presi-
dent determines and certifies to the Congress for that fiscal
year that the Government of Indonesia meets the following
requirements:
(1) DOMESTIC MONITORING OF ELECTIONS.—(A)
The Government of Indonesia provides official accred-
itation to independent election-monitoring organiza-
tions, including the Independent Election Monitoring
Committee (KIPP), to observe national elections with-
out interference by personnel of the Government or of
the armed forces.
(B) In addition, such organizations are allowed
to assess such elections and to publicize or otherwise
disseminate the assessments throughout Indonesia.
(2) PROTECTION OF NONGOVERNMENTAL ORGANI-
ZATIONS.—The police or military of Indonesia do not
confiscate materials from or otherwise engage in ille-
gal raids on the offices or homes of members of both
domestic or international nongovernmental organiza-
tions, including election-monitoring organizations,
legal aid organizations, student organizations, trade
union organizations, community organizations, envi-
ronmental organizations, and religious organizations.
(3) ACCOUNTABILITY FOR ATTACK ON PDI HEAD-
QUARTERS.—As recommended by the Government of
Indonesia’s National Human Rights Commission, the
Government of Indonesia has investigated the attack
on the headquarters of the Democratic Party of Indo-
nesia (PDI) on July 27, 1996, prosecuted individuals
who planned and carried out the attack, and made
public the postmortem examination of the five indi-
viduals killed in the attack.
(4) RESOLUTION OF CONFLICT IN EAST TIMOR.—
(A) ESTABLISHMENT
OF
DIALOGUE.—The
Government of Indonesia is doing everything
possible to enter into a process of dialogue, under
the auspices of the United Nations, with Por-
tugal and East Timorese leaders of various view-
points to discuss ideas toward a resolution of the
conflict in East Timor and the political status of
East Timor.
(B) REDUCTION OF TROOPS.—The Govern-
ment of Indonesia has established and imple-
mented a plan to reduce the number of Indo-
nesian troops in East Timor.
(C) RELEASE OF POLITICAL PRISONERS.—
Individuals detained or imprisoned for the non-
violent expression of political views in East
Timor have been released from custody.
(5) IMPROVEMENT IN LABOR RIGHTS.—The Gov-
ernment of Indonesia has taken the following actions
to improve labor rights in Indonesia:
(A) The Government has dropped charges of
subversion, and previous charges against the
General Chairman of the SBSI trade union,
Muchtar Pakpahan, and released him from cus-
tody.
(B) The Government has substantially re-
duced the requirements for legal recognition of
the SBSI or other legitimate worker organiza-
tions as a trade union.
(b) WAIVERS.—
(1) IN
GENERAL.—The limitation on United
States military assistance and arms transfers under
subsection (a) shall not apply if the President deter-
mines and notifies the Congress that—
(A) an emergency exists that requires pro-
viding such assistance or arms transfers for the
Government of Indonesia; or
(B) subject to paragraph (2), it is in the
national interest of the United States to provide
such assistance or arms transfers for the Govern-
ment of Indonesia.
(2) APPLICABILITY.—A determination under
paragraph (1)(B) shall not become effective until 15
days after the date on which the President notifies the
Congress in accordance with such paragraph.
(c) EFFECTIVE DATE.—The limitation on United
States military assistance and arms transfers under sub-
section (a) shall apply only with respect to assistance pro-
vided for, and arms transfers made pursuant to agreements
entered into, fiscal years beginning after the date of enact-
ment of this Act.
SEC. 454. UNITED STATES MILITARY ASSISTANCE AND
ARMS TRANSFERS DEFINED.
As used in this chapter, the term ‘‘military assistance
and arms transfers’’ means—
(1) small arms, crowd control equipment, ar-
mored personnel carriers, and such other items that
can commonly be used in the direct violation of
human rights; and
(2) assistance under chapter 5 of part II of the
Foreign Assistance Act of 1961 (22 U.S.C. 2347 et
seq.; relating to international military education and
training or ‘‘IMET’’), except such term shall not in-
clude Expanded IMET, pursuant to section 541 of
such Act.
CHAPTER 7—OTHER PROVISIONS
SEC. 461. EXCESS DEFENSE ARTICLES FOR CERTAIN EURO-
PEAN COUNTRIES.
Section 105 of Public Law 104–164 (110 Stat. 1427)
is amended by striking ‘‘1996 and 1997’’ and inserting
‘‘1998 and 1999’’.
SEC. 462. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS
DEFENSE ARTICLES IN THE WAR RESERVE AL-
LIES 
STOCKPILE 
TO 
THE 
REPUBLIC 
OF
KOREA.
(a) AUTHORITY.—
(1) IN GENERAL.—Notwithstanding section 514
of the Foreign Assistance Act of 1961 (22 U.S.C.
2321h), the President is authorized to transfer to the
Republic of Korea, in return for concessions to be ne-
gotiated by the Secretary of Defense, with the concur-
rence of the Secretary of State, any or all of the items
described in paragraph (2).
(2) ITEMS DESCRIBED.—The items described in
this paragraph are equipment, tanks, weapons, repair
parts, and ammunition that—
(A) are obsolete or surplus items;
(B) are in the inventory of the Department
of Defense;
(C) are intended for use as reserve stocks for
the Republic of Korea; and
(D) as of the date of enactment of this Act,
are located in a stockpile in the Republic of
Korea.
(b) CONCESSIONS.—The value of the concessions nego-
tiated pursuant to subsection (a) shall be at least equal to
the fair market value of the items transferred. The conces-
sions may include cash compensation, services, waiver of
charges otherwise payable by the United States, and other
items of value.
(c) ADVANCE NOTIFICATION OF TRANSFER.—Not less
than 30 days before making a transfer under the authority
of this section, the President shall transmit to the Commit-
tee on Foreign Relations of the Senate, the Committee on
International Relations of the House of Representatives,
and the congressional defense committees a notification of
the proposed transfer. The notification shall identify the
items to be transferred and the concessions to be received.
(d) EXPIRATION OF AUTHORITY.—No transfer may be
made under the authority of this section more than two
years after the date of the enactment of this Act.
SEC. 
463. 
ADDITIONAL 
REQUIREMENTS 
RELATING 
TO
STOCKPILING OF DEFENSE ARTICLES FOR
FOREIGN COUNTRIES.
(a) VALUE OF ADDITIONS TO STOCKPILES.—Section
514(b)(2)(A) of the Foreign Assistance Act of 1961 (22
U.S.C. 2321h(b)(2)(A)) is amended by inserting before the
period at the end the following: ‘‘and $60,000,000 for fiscal
year 1998’’.
(b) REQUIREMENTS RELATING TO THE REPUBLIC OF
KOREA AND THAILAND.—Section 514(b)(2)(B) of such Act
(22 U.S.C 2321h(b)(2)(B)) is amended by adding at the end
the following: ‘‘Of the amount specified in subparagraph
(A) for fiscal year 1998, not more than $40,000,000 may
be made available for stockpiles in the Republic of Korea
and not more than $20,000,000 may be made available for
stockpiles in Thailand.’’.
SEC. 464. DELIVERY OF DRAWDOWN BY COMMERCIAL
TRANSPORTATION SERVICES.
Section 506 of the Foreign Assistance Act of 1961 (22
U.S.C.2318) is amended—
(1) in subsection (b)(2), by striking the period
and inserting the following: ‘‘, including providing
the Congress with a report detailing all defense arti-
cles, defense services, and military education and
training delivered to the recipient country or inter-
national organization upon delivery of such articles
or upon completion of such services or education and
training. Such report shall also include whether any
savings were realized by utilizing commercial trans-
port services rather than acquiring those services from
United States Government transport assets.’’;
(2) by redesignating subsection (c) as subsection
(d); and
(3) by inserting after subsection (b) the follow-
ing:
‘‘(c) For the purposes of any provision of law that au-
thorizes the drawdown of defense or other articles or com-
modities, or defense or other services from an agency of the
United States Government, such drawdown may include the
supply of commercial transportation and related services
that are acquired by contract for the purposes of the
drawdown in question if the cost to acquire such commer-
cial transportation and related services is less than the cost
to the United States Government of providing such services
from existing agency assets.’’.
SEC. 465. CASH FLOW FINANCING NOTIFICATION.
Section 25 of the Arms Export Control Act (22 U.S.C.
2765) is amended—
(1) in the second subsection (d)—
(A) by striking ‘‘(d)’’ and inserting ‘‘(e)’’;
and
(B) by striking the semicolon at the end and
inserting a period; and
(2) by adding at the end the following:
‘‘(f) For each country that has been approved for cash
flow financing (as defined in subsection (e)) under section
23 of this Act (relating to the ‘Foreign Military Financing
Program’), any letter of offer and acceptance or other pur-
chase agreement, or any amendment thereto, for a procure-
ment in excess of $100,000,000 that is to be financed in
whole or in part with funds made available under this Act
shall be submitted in accordance with the procedures appli-
cable to reprogramming notifications pursuant to section
634A of this Act and through the regular notification proce-
dures of the Committee on Appropriations.’’.
SEC. 466. MULTINATIONAL ARMS SALES CODE OF CON-
DUCT.
(a) IN GENERAL.—Not later than 180 days after the
date of the enactment of this Act, the President shall convene
negotiations with all Wassenaar Arrangement countries for
the purpose of establishing a multinational arms sales code
of conduct.
(b) CONDUCT OF NEGOTIATIONS.—Such negotiations
shall achieve agreement on restricting or prohibiting arms
transfers to countries that—
(1) do not respect democratic processes and the
rule of law;
(2) do not adhere to internationally-recognized
norms on human rights; or
(3) are engaged in acts of armed aggression.
(c) REPORT.—Not later than 1 year after the date of
the enactment of this Act, the President shall prepare and
transmit to the Committee on International Relations of the
House of Representative and the Committee on Foreign Re-
lations of the Senate a report on—
(1) efforts to establish a multinational arms sales
code of conduct;
(2) progress toward establishing such code of con-
duct; and
(3) any obstacles that impede the establishment
of such code of conduct.
TITLE V—ECONOMIC
ASSISTANCE
CHAPTER 1—ECONOMIC SUPPORT
ASSISTANCE
SEC. 501. ECONOMIC SUPPORT FUND.
Section 532(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2346a(a)) is amended to read as follows:
‘‘(a) There are authorized to be appropriated to the
President to carry out the purposes of this chapter
$2,388,350,000 for fiscal year 1998 and $2,350,600,000 for
fiscal year 1999.’’.
SEC. 502. ASSISTANCE FOR ISRAEL.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under chapter 4 of part II of the Foreign Assistance Act
of 1961 (22 U.S.C. 2346; relating to the economic support
fund), not less than $1,200,000,000 for each such fiscal year
shall be available only for Israel.
(b) TERMS OF ASSISTANCE.—
(1) CASH TRANSFER.—The total amount of funds
allocated for Israel for each fiscal year under sub-
section (a) shall be made available on a grant basis
as a cash transfer.
(2) EXPEDITED
DISBURSEMENT.—Such funds
shall be disbursed—
(A) with respect to fiscal year 1998, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Financ-
ing, and Related Programs Appropriations Act,
1998, or by October 31, 1997, whichever is later;
and
(B) with respect to fiscal year 1999, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Financ-
ing, and Related Programs Appropriations Act,
1999, or by October 31, 1998, whichever is later.
(3) ADDITIONAL
REQUIREMENT.—In exercising
the authority of this subsection, the President shall
ensure that the amount of funds provided as a cash
transfer to Israel does not cause an adverse impact on
the total level of nonmilitary exports from the United
States to Israel.
SEC. 503. ASSISTANCE FOR EGYPT.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under chapter 4 of part II of the Foreign Assistance Act
of 1961 (22 U.S.C. 2346; relating to the economic support
fund), not less than $815,000,000 for each such fiscal year
shall be available only for Egypt.
(b) ADDITIONAL REQUIREMENT.—In exercising the
authority of this section, the President shall ensure that the
amount of funds provided as a cash transfer to Egypt does
not cause an adverse impact on the total level of non-
military exports from the United States to Egypt.
(c) DECLARATION OF POLICY.—The Congress declares
the following:
(1) Assistance to Egypt is based in great meas-
ure upon Egypt’s continued implementation of the
Camp David accords and the Egyptian-Israeli peace
treaty.
(2) Fulfillment by Egypt of its obligations under
the agreements described in paragraph (1) has been
disappointing, particularly the failure by Egypt to
meet fully its commitment made at Camp David to
establish with Israel ‘‘relationships normal to states
at peace with one another’’, and in its recent support
for reimposing the Arab economic boycott of Israel.
(3) Support for future funding levels of assist-
ance for Egypt will be determined largely on whether
Egypt fulfills its obligations to develop normal rela-
tions with Israel and to promote peace with Israel
and other critical United States interests both in
Egypt and the wider Arab world.
SEC. 504. INTERNATIONAL FUND FOR IRELAND.
(a) FUNDING.—Of the amounts made available for fis-
cal years 1998 and 1999 for assistance under chapter 4 of
part II of the Foreign Assistance Act of 1961 (22 U.S.C.
2346; relating to the economic support fund), not more than
$19,600,000 for each of the fiscal years 1998 and 1999 shall
be available for the United States contribution to the Inter-
national Fund for Ireland in accordance with the Anglo-
Irish Agreement Support Act of 1986 (Public Law 99–415).
(b) ADDITIONAL REQUIREMENTS.—
(1) PURPOSES.—Section 2(b) of the Anglo-Irish
Agreement Support Act of 1986 (Public Law 99–415;
100 Stat. 947) is amended by adding at the end the
following new sentences: ‘‘United States contributions
shall be used in a manner that effectively increases
employment opportunities in communities with rates
of unemployment significantly higher than the local
or urban average of unemployment in Northern Ire-
land. In addition, such contributions shall be used to
benefit individuals residing in such communities.’’.
(2) CONDITIONS
AND
UNDERSTANDINGS.—Sec-
tion 5(a) of such Act is amended—
(A) in the first sentence—
(i) by striking ‘‘The United States’’
and inserting the following:
‘‘(1) IN GENERAL.—The United States’’;
(ii) by striking ‘‘in this Act may be
used’’ and inserting the following: ‘‘in this
Act—
‘‘(A) may be used’’;
(iii) by striking the period and insert-
ing ‘‘; and’’; and
(iv) by adding at the end the following:
‘‘(B) may be provided to an individual or
entity in Northern Ireland only if such individ-
ual or entity is in compliance with the prin-
ciples of economic justice.’’; and
(B) in the second sentence, by striking ‘‘The
restrictions’’ and inserting the following:
‘‘(2) ADDITIONAL REQUIREMENTS.—The restric-
tions’’.
(3) PRIOR CERTIFICATIONS.—Section 5(c)(2) of
such Act is amended—
(A) in subparagraph (A), by striking ‘‘prin-
ciple of equality’’ and all that follows and insert-
ing ‘‘principles of economic justice; and’’; and
(B) in subparagraph (B), by inserting be-
fore the period at the end the following: ‘‘and
will create employment opportunities in regions
and communities of Northern Ireland suffering
the highest rates of unemployment’’.
(4) ANNUAL REPORTS.—Section 6 of such Act is
amended—
(A) in paragraph (2), by striking ‘‘and’’ at
the end;
(B) in paragraph (3), by striking the period
and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(4) each individual or entity receiving assist-
ance from United States contributions to the Inter-
national Fund has agreed in writing to comply with
the principles of economic justice.’’.
(5) REQUIREMENTS RELATING TO FUNDS.—Sec-
tion 7 of such Act is amended by adding at the end
the following:
‘‘(c) PROHIBITION.—Nothing included herein shall re-
quire quotas or reverse discrimination or mandate their
use.’’.
(6) DEFINITIONS.—Section 8 of such Act is
amended—
(A) in paragraph (1), by striking ‘‘and’’ at
the end;
(B) in paragraph (2), by striking the period
at the end and inserting a semicolon; and
(C) by adding at the end the following new
paragraphs:
‘‘(3) the term ‘Northern Ireland’ includes the
counties of Antrim, Armagh, Derry, Down, Tyrone,
and Fermanagh; and
‘‘(4) the term ‘principles of economic justice’
means the following principles:
‘‘(A) Increasing the representation of indi-
viduals from underrepresented religious groups
in the workforce, including managerial, super-
visory, administrative, clerical, and technical
jobs.
‘‘(B) Providing adequate security for the
protection of minority employees at the work-
place.
‘‘(C) Banning provocative sectarian or po-
litical emblems from the workplace.
‘‘(D) Providing that all job openings be ad-
vertised publicly and providing that special re-
cruitment efforts be made to attract applicants
from underrepresented religious groups.
‘‘(E) Providing that layoff, recall, and ter-
mination procedures do not favor a particular
religious group.
‘‘(F) Abolishing job reservations, appren-
ticeship restrictions, and differential employment
criteria which discriminate on the basis of reli-
gion.
‘‘(G) Providing for the development of
training programs that will prepare substantial
numbers of minority employees for skilled jobs,
including the expansion of existing programs
and the creation of new programs to train, up-
grade, and improve the skills of minority em-
ployees.
‘‘(H) Establishing procedures to assess,
identify, and actively recruit minority employees
with the potential for further advancement.
‘‘(I) Providing for the appointment of a
senior management staff member to be respon-
sible for the employment efforts of the entity and,
within a reasonable period of time, the imple-
mentation of the principles described in subpara-
graphs (A) through (H).’’.
(7) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect 180 days after the
date of the enactment of this Act.
SEC. 505. ASSISTANCE FOR TRAINING OF CIVILIAN PERSON-
NEL OF THE MINISTRY OF DEFENSE OF THE
GOVERNMENT OF NICARAGUA.
Notwithstanding section 531(e) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2346(e)), amounts made avail-
able for fiscal years 1998 and 1999 for assistance under
chapter 4 of part II of such Act (22 U.S.C. 2346; relating
to the economic support fund) may be made available for
assistance and training for civilian personnel of the Min-
istry of Defense of the Government of Nicaragua if, prior
to the provision of such assistance, the Secretary of State
determines and reports to the Congress that such assistance
is necessary to establishing a civilian Ministry of Defense
capable of effective oversight and management of the Nica-
raguan armed forces and ensuring respect for civilian au-
thority and human rights.
SEC. 506. AVAILABILITY OF AMOUNTS FOR CUBAN LIBERTY
AND DEMOCRATIC SOLIDARITY (LIBERTAD)
ACT OF 1996 AND THE CUBAN DEMOCRACY
ACT OF 1992.
Of the amounts made available for fiscal years 1998
and 1999 for assistance under chapter 4 of part II of the
Foreign Assistance Act of 1961 (22 U.S.C. 2346; relating
to the economic support fund), not less than $2,000,000 for
each such fiscal year shall be made available to carry out
the programs and activities under the Cuban Liberty and
Democratic Solidarity (LIBERTAD) Act of 1996 (22
U.S.C. 6021 et seq.) and the Cuban Democracy Act of 1992
(22 U.S.C. 6001 et seq.).
CHAPTER 2—DEVELOPMENT ASSISTANCE
Subchapter A—Development Assistance
Authorities
SEC. 511. AUTHORIZATION OF APPROPRIATIONS.
(a) DEVELOPMENT ASSISTANCE FUND.—The Foreign
Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is amended
by inserting after section 106 and before section 107A, as
added by this Act, the following:
‘‘SEC. 107. DEVELOPMENT ASSISTANCE FUND.
‘‘(a) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the President to carry
out sections 103 through 106, in addition to amounts other-
wise available for such purposes, $1,203,000,000 for each
of the fiscal years 1998 and 1999.
‘‘(b) ADDITIONAL USE OF AMOUNTS.—Of the amounts
authorized to be appropriated under subsection (a)—
‘‘(1) the President may use such amounts as he
deems appropriate to carry out the provisions of sec-
tion 316 of the International Security and Develop-
ment Cooperation Act of 1980;
‘‘(2) $2,500,000 for fiscal year 1998 and
$4,000,000 for fiscal year 1999 may be made avail-
able to carry out section 510 of the International Se-
curity and Development Cooperation Act of 1980 (re-
lating to the African Development Foundation) (such
amounts are in addition to amounts otherwise made
available to carry out section 510 of such Act); and
‘‘(3) $2,000,000 for fiscal year 1998 and
$7,000,000 for fiscal year 1999 may be made avail-
able to carry out section 401 of the Foreign Assistance
Act of 1969 (relating to the Inter-American Founda-
tion) (such amounts are in addition to amounts oth-
erwise made available to carry out section 401 of such
Act).
‘‘(c) AVAILABILITY.—The amounts authorized to be ap-
propriated under subsection (a) are authorized to remain
available until expended.’’.
(b) DEVELOPMENT FUND FOR AFRICA.—Section 497
of the Foreign Assistance Act of 1961 (22 U.S.C. 2294) is
amended to read as follows:
‘‘SEC. 497. AVAILABILITY OF AMOUNTS.
‘‘(a) IN GENERAL.—Of the amounts made available to
carry out sections 103 through 106 (including section
104(c)) for fiscal years 1998 and 1999, not less than
$700,000,000 for each of the fiscal years 1998 and 1999
shall be made available to carry out this chapter (in addi-
tion to amounts otherwise available for such purposes).
‘‘(b) AVAILABILITY.—Amounts made available under
subsection (a) are authorized to remain available until ex-
pended.’’.
(c) ASSISTANCE FOR THE INDEPENDENT STATES OF
THE FORMER SOVIET UNION.—Section 498C(a) of the For-
eign Assistance Act of 1961 (22 U.S.C. 2295c(a)) is amend-
ed by striking ‘‘for fiscal year 1993 $410,000,000’’ and in-
serting ‘‘for economic assistance and related programs,
$839,900,000 for fiscal year 1998 and $789,900,000 for fis-
cal year 1999’’.
(d) ASSISTANCE FOR EAST EUROPEAN COUNTRIES.—
(1) IN GENERAL.—There are authorized to be ap-
propriated to the President, in addition to amounts
otherwise available for such purposes, $471,000,000
for fiscal year 1998 and $337,000,000 for fiscal year
1999 for economic assistance and related programs
for Eastern Europe and the Baltic states under the
Foreign Assistance Act of 1961 (22 U.S.C. 2151 et
seq.) and the Support for East European Democracy
(SEED) Act of 1989 (22 U.S.C. 5401 et seq.).
(2) 
DEBT
RELIEF
FOR
BOSNIA
AND
HERZEGOVINA.—Notwithstanding any other provision
of law, of the amounts authorized to be appropriated
for fiscal years 1998 and 1999 under paragraph (1),
not more than $5,000,000 may be made available for
the cost, as defined in section 502 of the Federal Cred-
it Reform Act of 1990, of modifying direct loans and
loan guarantees for Bosnia and Herzegovina.
(3) AVAILABILITY.—Amounts authorized to be
appropriated under paragraph (1) are authorized to
remain available until expended.
(e) INTER-AMERICAN FOUNDATION.—Section 401(s)(2)
of the Foreign Assistance Act of 1969 (22 U.S.C. 290f(s)(2))
is amended to read as follows:
‘‘(2)(A) There are authorized to be appropriated to the
President to carry out programs under this section, in addi-
tion to amounts otherwise available for such purposes,
$20,000,000 for fiscal year 1998 and $15,000,000 for fiscal
year 1999.
‘‘(B) Amounts authorized to be appropriated under
subparagraph (A) are authorized to remain available until
expended.’’.
(f) AFRICAN DEVELOPMENT FOUNDATION.—The first
sentence of section 510 of the International Security and
Development Cooperation Act of 1980 (22 U.S.C. 290h–8)
is amended by striking ‘‘$3,872,000 for fiscal year 1986 and
$3,872,000 
for 
fiscal 
year 
1987’’ 
and 
inserting
‘‘$11,500,000 for fiscal year 1998 and $10,000,000 for fiscal
year 1999.’’.
SEC. 512. CHILD SURVIVAL ACTIVITIES.
Section 104(c) of the Foreign Assistance Act of 1961
(22 U.S.C. 2151b(c)) is amended to read as follows:
‘‘(c) ASSISTANCE
FOR CHILD SURVIVAL, HEALTH,
BASIC EDUCATION FOR CHILDREN, AND DISEASE PREVEN-
TION.—
‘‘(1) AUTHORITY.—The President is authorized
to furnish assistance, on such terms and conditions as
he may determine, for child survival and health pro-
grams, including programs that address the special
health and nutrition needs of children and mothers,
and basic education programs for children. Assistance
under this subsection may be used for the following:
‘‘(A) Activities whose primary purpose is to
reduce child morbidity and child mortality and
which have a substantial, direct, and measurable
impact on child morbidity and child mortality,
such as—
‘‘(i) immunization;
‘‘(ii) oral rehydration;
‘‘(iii) activities relating to Vitamin A
deficiency, iodine deficiency, and other
micronutrients;
‘‘(iv) programs designed to reduce child
malnutrition;
‘‘(v) programs to prevent and treat
acute respiratory infections;
‘‘(vi) programs for the prevention,
treatment, and control of, and research on,
polio, malaria and other diseases primarily
affecting children; and
‘‘(vii) programs whose primary pur-
pose is to prevent neonatal mortality.
‘‘(B) Other child survival activities such
as—
‘‘(i) basic integrated health services;
‘‘(ii) assistance for displaced and or-
phaned children;
‘‘(iii) safe water and sanitation;
‘‘(iv) health programs, and related edu-
cation programs, which primarily address
the needs of mothers and children; and
‘‘(v) related health planning and re-
search.
‘‘(C) Basic education programs for mothers
and children.
‘‘(D) Other disease activities such as pro-
grams for the prevention, treatment and control
of, and research on, tuberculosis, HIV/AIDS, and
other diseases.
‘‘(2) PRIORITY.—Child survival activities ad-
ministered by the United States Agency for Inter-
national Development under this subsection shall be
primarily devoted to activities of the type described in
paragraph (1)(A).
‘‘(3) APPLICATION
OF
OTHER
AUTHORITIES.—
Funds made available to carry out this subsection
that are provided for countries receiving assistance
under chapters 10 and 11 of part I of this Act or the
Support for East European Democracy (SEED) Act
of 1989, may be made available—
‘‘(A) only for the activities described in of
paragraph (1); and
‘‘(B) except to the extent inconsistent with
subparagraph (A), pursuant to the authorities
otherwise applicable to the provision of assist-
ance for such countries.
‘‘(4) INTERNATIONAL
ORGANIZATIONS.—Funds
made available to carry out this subsection may be
used to make contributions on a grant basis to the
United Nations Children’s Fund (UNICEF) pursuant
to section 301 of this Act.
‘‘(5) PVO/CHILD SURVIVAL GRANTS PROGRAM.—
Of amounts made available to carry out this sub-
section for a fiscal year, not less than $30,000,000
should be provided to the private and voluntary orga-
nizations under the PVO/Child Survival grants pro-
gram carried out by the United States Agency for
International Development.
‘‘(6) REPORT.—The Administrator of the United
States Agency for International Development shall re-
port to Congress, as part of the congressional presen-
tation document required under section 634 of this
Act, the total amounts to be provided for activities
under each subparagraph of paragraph (1).
‘‘(7) AUTHORIZATION OF APPROPRIATIONS.—(A)
In addition to amounts otherwise available for such
purposes, and in addition to amounts made available
under section 107, there are authorized to be appro-
priated to the President $600,000,000 for each of the
fiscal years 1998 and 1999 for use in carrying out
this subsection.
‘‘(B) Amounts appropriated under this para-
graph are authorized to remain available until ex-
pended.
‘‘(8) DESIGNATION
OF
FUND.—Appropriations
pursuant to this subsection may be referred to as the
‘Child Survival and Disease Programs Fund’.’’.
SEC. 513. REQUIREMENT ON ASSISTANCE TO THE RUSSIAN
FEDERATION.
(a) IN GENERAL.—Of the amounts made available to
carry out chapter 11 of part I of the Foreign Assistance
Act of 1961 (22 U.S.C. 2295 et seq.) for fiscal years 1998
and 1999, not more than $95,000,000 for each such fiscal
year may be provided to the Russian Federation unless the
President determines and reports to the Congress for each
such fiscal year that—
(1) the Government of the Russian Federation
has terminated all official cooperation with, and
transfers of goods and technology to, ballistic missile
or nuclear programs in Iran, and has taken all ap-
propriate steps to prevent cooperation with, and
transfers of goods and technology to, such programs
in Iran by persons and entities subject to its jurisdic-
tion; and
(2) the Government of the Russian Federation
has terminated all official cooperation with, and
transfers of goods and technology to, nuclear reactor
projects in Cuba, and has taken all appropriate steps
to prevent cooperation with, and transfers of goods
and technology to, such projects in Cuba by persons
and entities subject to its jurisdiction.
(b) ADDITIONAL LIMITATION.—
(1) IN
GENERAL.—Notwithstanding subsection
(a), none of the funds made available to carry out
chapter 11 of part I of the Foreign Assistance Act of
1961 (22 U.S.C. 2295 et seq.) for fiscal years 1998
and 1999 may be made available for the Russian
Federation if the Russian Federation, on or after the
date of the enactment of this Act, transfers an SS–
N–22 missile system to the People’s Republic of
China.
(2) EXCEPTION.—Paragraph (1) shall not apply
if the President determines that making such funds
available is important to the national security inter-
est of the United States. Any such determination shall
cease to be effective 6 months after being made unless
the President determines that its continuation is im-
portant to the national security interest of the United
States.
SEC. 514. HUMANITARIAN ASSISTANCE FOR ARMENIA AND
AZERBAIJAN.
(a) SENSE OF THE CONGRESS.—It is the sense of the
Congress that the President should seek cooperation from
the governments of Armenia and Azerbaijan to ensure that
humanitarian assistance, including assistance delivered
through nongovernmental organizations and private and
voluntary organizations, shall be available to all needy citi-
zens within Armenia and Azerbaijan, including those indi-
viduals in the region of Nagorno-Karabakh.
(b) REPORT.—The President shall prepare and trans-
mit a report to the Congress on humanitarian needs
throughout Armenia and Azerbaijan and the provision of
assistance to meet such needs by United States and other
donor organizations and states.
SEC. 515. AGRICULTURAL DEVELOPMENT AND RESEARCH
ASSISTANCE.
(a) FINDINGS.—The Congress finds that the proportion
of United States development assistance devoted to agricul-
tural development and research has declined sharply from
17 percent in 1990 to 8 percent in 1996.
(b) SENSE OF THE CONGRESS.—It is the sense of the
Congress that—
(1) United States investment in international
agricultural development and research has been a
critical part of many economic development successes;
(2) agricultural development and research ad-
vance food security, thereby reducing poverty, increas-
ing political stability, and promoting United States
exports; and
(3) the United States Agency for International
Development should increase the emphasis it places on
agricultural development and research and expand
the role of agricultural development and research in
poverty relief, child survival, and environmental pro-
grams.
SEC. 516. ACTIVITIES AND PROGRAMS IN LATIN AMERICA
AND THE CARIBBEAN REGION AND THE ASIA
AND THE PACIFIC REGION.
Of the amounts made available for fiscal years 1998
and 1999 for assistance under sections 103 through 106 of
the Foreign Assistance Act of 1961 (22 U.S.C. 2151a
through 2151d), including assistance under section 104(c)
of such Act (22 U.S.C. 2151b(c)), the amount made avail-
able for activities and programs in Latin America and the
Caribbean region and the Asia and the Pacific region
should be in at least the same proportion to the total
amount of such assistance made available as the amount
identified in the congressional presentation documents for
development assistance for each of the fiscal years 1998 and
1999, respectively, for each such region is to the total
amount requested for development assistance for each such
fiscal year.
SEC. 517. SUPPORT FOR AGRICULTURAL DEVELOPMENT AS-
SISTANCE.
(a) IN GENERAL.—For each of the fiscal years 1998
and 1999 the President should allocate an aggregate level
to programs under section 103 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2151a; relating to agriculture, rural
development, and nutrition) in amounts equal to the level
provided to such programs in fiscal year 1997.
(b) INCREASING LEVELS.—If appropriations for pro-
grams under chapter 1 of part I of the Foreign Assistance
Act of 1961 (22 U.S.C. 2151 et seq.; relating to development
assistance) increase in fiscal year 1998 or 1999 above levels
provided in fiscal year 1997, the President should allocate
an increasing level for programs under section 103 of such
Act (22 U.S.C. 2151a; relating to agriculture, rural devel-
opment, and nutrition).
Subchapter B—Operating Expenses
SEC. 521. OPERATING EXPENSES GENERALLY.
Section 667(a)(1) of the Foreign Assistance Act of 1961
(22 U.S.C. 2427(a)(1)) is amended to read as follows:
‘‘(1) $473,000,000 for fiscal year 1998 and
$465,000,000 for fiscal year 1999 for necessary oper-
ating expenses of the United States Agency for Inter-
national Development (other than the Office of the In-
spector General of such agency);’’.
SEC. 522. OPERATING EXPENSES OF THE OFFICE OF THE
INSPECTOR GENERAL.
Section 667(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2427(a)), as amended by this Act, is further
amended—
(1) by redesignating paragraph (2) as para-
graph (3); and
(2) by inserting after paragraph (1) the follow-
ing:
‘‘(2) $29,047,000 for each of the fiscal years 1998
and 1999 for necessary operating expenses of the Of-
fice of the Inspector General of such agency; and’’.
CHAPTER 3—URBAN AND
ENVIRONMENTAL CREDIT PROGRAM
SEC. 531. URBAN AND ENVIRONMENTAL CREDIT PROGRAM.
(a) IN GENERAL.—The heading for title III of chapter
2 of part I of the Foreign Assistance Act of 1961 is amended
to read as follows:
‘‘TITLE III—URBAN AND ENVIRONMENTAL
CREDIT PROGRAM’’.
(b) REPEALS.—(1) Section 222(k) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2182(k)) is hereby repealed.
(2) Section 222A of such Act (22 U.S.C. 2182a) is
hereby repealed.
(3) Section 223(j) of such Act (22 U.S.C. 2183(j)) is
hereby repealed.
CHAPTER 4—THE PEACE CORPS
SEC. 541. AUTHORIZATION OF APPROPRIATIONS.
Section 3(b) of the Peace Corps Act (22 U.S.C.
2502(b)) is amended to read as follows:
‘‘(b)(1) There are authorized to be appropriated to
carry out the purposes of this Act $222,000,000 for fiscal
year 1998 and $225,000,000 for fiscal year 1999.
‘‘(2) Amounts authorized to be appropriated under
paragraph (1)—
‘‘(A) with respect to fiscal year 1998 are author-
ized to remain available until September 30, 1999;
and
‘‘(B) with respect to fiscal year 1999 are author-
ized to remain available until September 30, 2000.’’.
SEC. 542. ACTIVITIES OF THE PEACE CORPS IN THE
FORMER SOVIET UNION AND MONGOLIA.
Of the amounts made available for fiscal years 1998
and 1999 to carry out chapter 11 of part I of the Foreign
Assistance Act of 1961 (22 U.S.C. 2295 et seq.; relating to
assistance for the independent states of the former Soviet
Union), not more than $11,000,000 for each such fiscal year
shall be available for activities of the Peace Corps in the
independent states of the former Soviet Union (as defined
in section 3 of the Freedom for Russia and Emerging Eur-
asian Democracies and Open Markets Support Act of 1992)
and Mongolia.
SEC. 543. AMENDMENTS TO THE PEACE CORPS ACT.
(a) TERMS AND CONDITIONS OF VOLUNTEER SERV-
ICE.—Section 5 of the Peace Corps Act (22 U.S.C. 2504)
is amended—
(1) in subsection (f)(1)(B), by striking ‘‘Civil
Service Commission’’ and inserting ‘‘Office of Person-
nel Management’’;
(2) in subsection (h), by striking ‘‘the Federal
Voting Assistance Act of 1955’’ and all that follows
through the end of the subsection and inserting ‘‘sec-
tions 5584 and 5732 of title 5, United States Code
(and readjustment allowances paid under this Act
shall be considered as pay for purposes of such section
5732), section 1 of the Act of June 4, 1920 (22 U.S.C.
214), and section 3342 of title 31, United States
Code.’’; and
(3) in subsection (j), by striking ‘‘section 1757 of
the Revised Statutes’’ and all that follows through the
end of the subsection and inserting ‘‘section 3331 of
title 5, United States Code.’’.
(b) GENERAL POWERS AND AUTHORITIES.—Section
10 of such Act (22 U.S.C. 2509) is amended—
(1) in subsection (a)(4), by striking ‘‘31 U.S.C.
665(b)’’ and inserting ‘‘section 1342 of title 31, Unit-
ed States Code’’; and
100
(2) in subsection (a)(5), by striking ‘‘: Provided,
That’’ and all that follows through the end of the
paragraph and inserting ‘‘, except that such individ-
uals shall not be deemed employees for the purpose of
any law administered by the Office of Personnel Man-
agement.’’.
(c) UTILIZATION OF FUNDS.—Section 15 of such Act
(22 U.S.C. 2514) is amended—
(1) in the first sentence of subsection (c)—
(A) by striking ‘‘Public Law 84–918 (7
U.S.C. 1881 et seq.)’’ and inserting ‘‘subchapter
VI of chapter 33 of title 5, United States Code
(5 U.S.C. 3371 et seq.)’’; and
(B) by striking ‘‘specified in that Act’’ and
inserting ‘‘or other organizations specified in sec-
tion 3372(b) of such title’’; and
(2) in subsection (d)—
(A) in paragraph (2), by striking ‘‘section
9 of Public Law 60–328 (31 U.S.C. 673)’’ and
inserting ‘‘section 1346 of title 31, United States
Code’’;
(B) in paragraph (6), by striking ‘‘without
regard to section 3561 of the Revised Statutes
(31 U.S.C. 543)’’;
(C) in paragraph (11)—
101
(i) by striking ‘‘Foreign Service Act of
1946, as amended (22 U.S.C. 801 et seq.),’’
and inserting ‘‘Foreign Service Act of 1980
(22 U.S.C. 3901 et seq.)’’; and
(ii) by striking ‘‘and’’ at the end;
(D) in paragraph (12), by striking the pe-
riod at the end and by inserting ‘‘; and’’; and
(E) by adding at the end the following:
‘‘(13) the transportation of Peace Corps employ-
ees, Peace Corps volunteers, dependents of employees
and volunteers, and accompanying baggage, by a for-
eign air carrier when the transportation is between 2
places outside the United States without regard to
section 40118 of title 49, United States Code.’’.
(d) PROHIBITION
ON
USE
OF FUNDS
FOR ABOR-
TIONS.—Section 15 of such Act (22 U.S.C. 2514) is amend-
ed, as amended by this Act, is further amended by adding
at the end the following new subsection:
‘‘(e) Funds made available for the purposes of this Act
may not be used to pay for abortions.’’.
102
CHAPTER 5—INTERNATIONAL DISASTER
ASSISTANCE
SEC. 551. AUTHORITY TO PROVIDE RECONSTRUCTION AS-
SISTANCE.
Section 491 of the Foreign Assistance Act of 1961 (22
U.S.C. 2292) is amended—
(1) in subsection (a), by striking ‘‘and rehabili-
tation’’ and inserting ‘‘, rehabilitation, and recon-
struction, as the case may be,’’;
(2) in subsection (b), by striking ‘‘and rehabili-
tation’’ and inserting ‘‘, rehabilitation, and recon-
struction’’; and
(3) in subsection (c), by striking ‘‘and rehabilita-
tion’’ and inserting ‘‘, rehabilitation, and reconstruc-
tion’’.
SEC. 552. AUTHORIZATIONS OF APPROPRIATIONS.
Section 492(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2292a(a)) is amended in the first sentence to
read as follows: ‘‘There are authorized to be appropriated
to the President to carry out section 491, in addition to
funds otherwise available for such purposes, $190,000,000
for each of the fiscal years 1998 and 1999.’’.
103
CHAPTER 6—DEBT RELIEF
SEC. 561. DEBT RESTRUCTURING FOR FOREIGN ASSIST-
ANCE.
Chapter 6 of part I of the Foreign Assistance Act of
1961 (22 U.S.C. 2271 et seq.) is amended to read as follows:
‘‘CHAPTER 6—DEBT RELIEF
‘‘SEC. 461. SPECIAL DEBT RELIEF FOR POOR COUNTRIES.
‘‘(a) AUTHORITY TO REDUCE DEBT.—The President
may reduce amounts owed to the United States Government
by a country described in subsection (b) as a result of—
‘‘(1) loans or guarantees issued under this Act;
or
‘‘(2) credits extended or guarantees issued under
the Arms Export Control Act (22 U.S.C. 2751 et seq.).
‘‘(b) COUNTRY DESCRIBED.—A country described in
this subsection is a country—
‘‘(1) with a heavy debt burden that is eligible to
borrow from the International Development Associa-
tion but not from the International Bank for Recon-
struction and Development (commonly referred to as
an ‘IDA-only’ country);
‘‘(2) the government of which—
‘‘(A) does not have an excessive level of
military expenditures;
104
‘‘(B) has not repeatedly provided support
for acts of international terrorism; and
‘‘(C) is not failing to cooperate with the
United States on international narcotics control
matters;
‘‘(3) the government (including the military or
other security forces of such government) of which
does not engage in a consistent pattern of gross viola-
tions of internationally recognized human rights; and
‘‘(4) that is not ineligible for assistance because
of the application of section 527(a) of the Foreign Re-
lations Authorization Act, Fiscal Years 1994 and
1995.
‘‘(c) LIMITATIONS.—The authority under subsection
(a) may be exercised—
‘‘(1) only to implement multilateral official debt
relief ad referendum agreements (commonly referred
to as ‘Paris Club Agreed Minutes’); and
‘‘(2) 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.
‘‘(d) CERTAIN PROHIBITIONS INAPPLICABLE.—A re-
duction of debt pursuant to the exercise of authority under
subsection (a)—
105
‘‘(1) shall not be considered assistance for pur-
poses of any provision of law limiting assistance to
a country; and
‘‘(2) may be exercised notwithstanding section
620(r) of this Act or any comparable provision of
law.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated to the President for the purpose of car-
rying out this section and the Foreign Operations,
Export Financing, and Related Programs Supple-
mental Appropriations Act, 1994 (title VI of the For-
eign Operations, Export Financing, and Related Pro-
grams Appropriations Act, 1994; Public Law 103–
306) $32,000,000 for each of the fiscal years 1998 and
1999.
‘‘(2) AVAILABILITY.—Amounts authorized to be
appropriated under paragraph (1) are authorized to
remain available until expended.’’.
SEC. 562. DEBT BUYBACKS OR SALES FOR DEBT SWAPS.
Part IV of the Foreign Assistance Act of 1961 (22
U.S.C. 2430 et seq.) is amended by adding at the end the
following:
106
‘‘SEC. 711. AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR
SALES.
‘‘(a) LOANS ELIGIBLE FOR SALE, REDUCTION, OR
CANCELLATION.—
‘‘(1) AUTHORITY TO SELL, REDUCE, OR CANCEL
CERTAIN LOANS.—Notwithstanding any other provi-
sion of law, the President may, in accordance with
this section, sell to any eligible purchaser any
concessional loan or portion thereof made before Jan-
uary 1, 1995, pursuant to this Act, to the government
of any eligible country, as defined in section 702(6),
or on receipt of payment from an eligible purchaser
or such eligible country, reduce or cancel such loan or
portion thereof, only for the purpose of facilitating—
‘‘(A) debt-for-equity swaps, debt-for-develop-
ment 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 (i) that link
conservation and sustainable use of natural re-
sources with local community development, and
107
(ii) for child survival and other child develop-
ment activities, in a manner consistent with sec-
tions 707 through 710, 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 ac-
cordance 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), shall notify the Administrator of
the United States Agency for International Develop-
ment of purchasers that the President has determined
to be eligible, and shall direct such agency to carry
out the sale, reduction, or cancellation of a loan pur-
suant to this section. Such agency shall make an ad-
justment in its accounts to reflect the sale, reduction,
or cancellation.
‘‘(4) LIMITATION.—To the extent that appropria-
tions for the cost of the modification, as defined in
section 502 of the Congressional Budget Act of 1974,
are necessary, the authorities of this subsection shall
108
be available only where such appropriations are made
in advance.
‘‘(b) DEPOSIT OF PROCEEDS.—The proceeds from the
sale, reduction, or cancellation of any loan sold, reduced,
or canceled pursuant to this section shall be deposited in
an account or accounts established in the Treasury 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 satisfactory 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 pursu-
ant to this section, of any loan made to an eligible country,
the President shall 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.’’.
109
CHAPTER 7—OTHER ASSISTANCE
PROVISIONS
SEC. 571. EXEMPTION FROM RESTRICTIONS ON ASSIST-
ANCE THROUGH NONGOVERNMENTAL ORGA-
NIZATIONS.
Section 123(e) of the Foreign Assistance Act of 1961
(22 U.S.C. 2151u(e)) is amended to read as follows:
‘‘(e)(1) Subject to paragraph (3), restrictions con-
tained in this Act or any other provision of law with respect
to assistance for a country shall not be construed to restrict
assistance under this chapter, chapter 10, and chapter 11
of this part, chapter 4 of part II, or the Support for East
European Democracy (SEED) Act of 1989 (22 U.S.C. 5401
et seq.), in support of programs of nongovernmental organi-
zations.
‘‘(2) The President shall take into consideration, in
any case in which a restriction on assistance for a country
would be applicable but for this subsection, whether assist-
ance for programs of nongovernmental organizations is in
the national interest of the United States.
‘‘(3) Whenever the authority of this subsection is used
to furnish assistance in support of a program of a non-
governmental organization, the President shall notify the
congressional committees specified in section 634A(a) of
this Act in accordance with procedures applicable to re-
110
programming notifications under that section. Such notifi-
cation shall describe the program assisted, the assistance
provided, and the reasons for furnishing such assistance.’’.
SEC. 572. FUNDING REQUIREMENTS RELATING TO UNITED
STATES PRIVATE AND VOLUNTARY ORGANI-
ZATIONS.
(a) IN GENERAL.—Section 123(g) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2151u(g)) is amended to
read as follows:
‘‘(g) Funds made available to carry out this chapter
or chapter 10 of this part may not be made available to
any United States private and voluntary organization, ex-
cept any cooperative development organization, that obtains
less than 20 percent of its total annual funding for its inter-
national activities from sources other than the United
States Government.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) applies with respect to funds made available for
programs of any United States private and voluntary orga-
nization on or after the date of the enactment of this Act.
SEC. 573. DOCUMENTATION REQUESTED OF PRIVATE AND
VOLUNTARY ORGANIZATIONS.
Section 620 of the Foreign Assistance Act of 1961 (22
U.S.C. 2370) is amended by inserting after subsection (u)
the following:
111
‘‘(v) None of the funds made available to carry out
this Act shall be available to any private and voluntary
organization which—
‘‘(1) fails to provide upon timely request any
document, file, or record necessary to the auditing re-
quirements of the United States Agency for Inter-
national Development; or
‘‘(2) is not registered with the United States
Agency for International Development.’’.
SEC. 574. ENCOURAGEMENT OF FREE ENTERPRISE AND
PRIVATE PARTICIPATION.
Section 601(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2351(a)) is amended—
(1) by striking ‘‘(a)’’ and inserting ‘‘(a)(1)’’; and
(2) by adding the following:
‘‘(2) To the maximum extent feasible, in providing as-
sistance under Part I of this Act, the President should give
special emphasis to programs and activities that encourage
the creation and development of private enterprise and free
market systems, including—
‘‘(A) the development of private cooperatives,
credit unions, labor unions, and civic and profes-
sional associations;
‘‘(B) the reform and restructuring of banking
and financial systems; and
112
‘‘(C) the development and strengthening of com-
mercial laws and regulations, including laws and reg-
ulations to protect intellectual property.’’.
SEC. 575. SENSE OF THE CONGRESS RELATING TO UNITED
STATES COOPERATIVES AND CREDIT UNIONS.
It is the sense of the Congress that—
(1) United States cooperatives and cooperative
development organizations and credit unions can pro-
vide an opportunity for people in developing coun-
tries to participate directly in democratic decision-
making for their economic and social benefit through
ownership and control of business enterprises and
through the mobilization of local capital and savings;
and
(2) such organizations should be utilized in fos-
tering democracy, free markets, community-based de-
velopment, and self-help projects.
SEC. 576. FOOD ASSISTANCE TO THE DEMOCRATIC PEO-
PLE’S REPUBLIC OF KOREA.
None of the funds made available in this division and
the amendments made by this division shall be made avail-
able for assistance for food to the Democratic People’s Re-
public of Korea unless the President certifies to the Congress
that—
113
(1) the Government of the Republic of Korea does
not oppose the delivery of United States assistance for
food to the Democratic People’s Republic of Korea;
(2) the United States Government is confident
that previous United States assistance for food and
official concessional food deliveries have not been di-
verted to military needs;
(3) military stocks of the Democratic People’s
Republic of Korea have been tapped to respond to
unmet food aid needs;
(4) the World Food Program and other inter-
national food delivery organizations have been per-
mitted to take and have taken all reasonable steps to
ensure that all upcoming food aid deliveries will not
be diverted from intended recipients; and
(5) the Government of the United States has di-
rectly acted to encourage, and acting through appro-
priate international organizations, has encouraged
such organizations to urge, the Democratic People’s
Republic of Korea to initiate fundamental structural
reforms of its agricultural sector.
114
SEC. 577. WITHHOLDING OF ASSISTANCE TO COUNTRIES
THAT PROVIDE NUCLEAR FUEL TO CUBA.
(a) IN GENERAL.—Section 620 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2370), as amended by this Act,
is further amended by adding at the end the following:
‘‘(y)(1) Except as provided in paragraph (2), the
President shall withhold from amounts made available
under this Act or any other Act and allocated for a country
for a fiscal year an amount equal to the aggregate value
of nuclear fuel and related assistance and credits provided
by that country, or any entity of that country, to Cuba dur-
ing the preceding fiscal year.
‘‘(2) The requirement to withhold assistance for a
country for a fiscal year under paragraph (1) shall not
apply if Cuba—
‘‘(A) has ratified the Treaty on the Non-
Proliferation of Nuclear Weapons (21 UST 483)
or the Treaty of Tlatelelco, and Cuba is in com-
pliance with the requirements of either such
Treaty;
‘‘(B) has negotiated and is in compliance
with full-scope safeguards of the International
Atomic Energy Agency not later than two years
after ratification by Cuba of such Treaty; and
115
‘‘(C) incorporates and is in compliance
with internationally accepted nuclear safety
standards.
‘‘(3) The Secretary of State shall prepare and submit
to the Congress each year a report containing a description
of the amount of nuclear fuel and related assistance and
credits provided by any country, or any entity of a country,
to Cuba during the preceding year, including the terms of
each transfer of such fuel, assistance, or credits.’’.
(b) EFFECTIVE DATE.—Section 620(y) of the Foreign
Assistance Act of 1961, as added by subsection (a), shall
apply with respect to assistance provided in fiscal years
beginning on or after the date of the enactment of this Act.
TITLE VI—TRADE AND
DEVELOPMENT AGENCY
SEC. 601. AUTHORIZATION OF APPROPRIATIONS.
Section 661(f)(1)(A) of the Foreign Assistance Act of
1961 (22 U.S.C. 2421(f)(1)(A)) is amended to read as fol-
lows:
‘‘(1) AUTHORIZATION.—(A) There are authorized
to be appropriated for purposes of this section, in ad-
dition to funds otherwise available for such purposes,
$43,000,000 for each of the fiscal years 1998 and
1999.’’.
116
TITLE 
VII—SPECIAL 
AUTHORI-
TIES AND OTHER PROVISIONS
CHAPTER 1—SPECIAL AUTHORITIES
SEC. 701. ENHANCED TRANSFER AUTHORITY.
Section 610 of the Foreign Assistance Act of 1961 (22
U.S.C. 2360) is amended to read as follows:
‘‘SEC. 610. TRANSFER BETWEEN ACCOUNTS.
‘‘(a) GENERAL AUTHORITY.—Whenever the President
determines it to be necessary for the purposes of this Act
or the Arms Export Control Act (22 U.S.C. 2751 et seq.),
not to exceed 20 percent of the funds made available to
carry out any provision of this Act (except funds made
available pursuant to title IV of chapter 2 of part I) or
section 23 of the Arms Export Control Act (22 U.S.C.
2763)—
‘‘(1) may be transferred to, and consolidated
with, the funds in any other account or fund avail-
able to carry out any provision of this Act or the
Arms Export Control Act; and
‘‘(2) may be used for any purpose for which
funds in that account or fund may be used.
‘‘(b) LIMITATION
ON AMOUNT
OF INCREASE.—The
total amount in the account or fund for the benefit of which
transfer is made under subsection (a) during any fiscal
117
year may not be increased by more than 20 percent of the
amount of funds otherwise made available.
‘‘(c) NOTIFICATION.—The President shall notify in
writing the congressional committees specified in section
634A at least fifteen days in advance of each such transfer
between accounts in accordance with procedures applicable
to reprogramming notifications under such section.’’.
SEC. 702. AUTHORITY TO MEET UNANTICIPATED CONTIN-
GENCIES.
Paragraph (1) of section 451(a) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2261(a)(1)) is amended by
striking ‘‘$25,000,000’’ and inserting ‘‘$50,000,000’’.
SEC. 703. SPECIAL WAIVER AUTHORITY.
(a) LAWS AFFECTED.—Section 614 of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2364) is amended by strik-
ing subsections (a)(1) and (a)(2) and inserting the follow-
ing:
‘‘(a) AUTHORITY TO AUTHORIZE ASSISTANCE, SALES,
AND OTHER ACTIONS; LIMITATIONS.—(1) The President
may authorize assistance, sales, or other action under this
Act, the Arms Export Control Act, or any annual (or peri-
odic) foreign assistance authorization or appropriations
legislation, without regard to any of the provisions de-
scribed in subsection (b), if the President determines, and
notifies in writing the Speaker of the House of Representa-
118
tives and the chairman of the Committee on Foreign Rela-
tions of the Senate—
‘‘(A) with respect to assistance or other actions
under chapter 2 or 5 of part II of this Act, or assist-
ance, sales, or other actions under the Arms Export
Control Act, that to do so is vital to the national se-
curity interests of the United States; and
‘‘(B) with respect to other assistance or actions
that to do so is important to the national interests of
the United States.
‘‘(2) The President may waive any provision described
in paragraph (1), (2), or (3) of subsection (b) that would
otherwise prohibit or restrict assistance or other action
under any provision of law not described in those para-
graphs if the President determines, and notifies in writing
the Speaker of the House of Representatives and the chair-
man of the Committee on Foreign Relations of the Senate,
that to do so is important to the national interests of the
United States.’’.
(b) ANNUAL CEILINGS.—Section 614(a)(4) of such Act
(22 U.S.C. 2364(a)(4)) is amended—
(1) in subparagraph (A)—
(A) 
in 
clause 
(i), 
by 
striking
‘‘$750,000,000’’ and inserting ‘‘$1,000,000,000’’;
119
(B) 
in 
clause 
(ii), 
by 
striking
‘‘$250,000,000’’ and inserting ‘‘$500,000,000’’;
and
(C) 
in 
clause 
(iii), 
by 
striking
‘‘$100,000,000’’ and inserting ‘‘$200,000,000’’;
and
(2) in subparagraph (C)—
(A) by striking ‘‘$50,000,000’’ and inserting
‘‘$75,000,000’’; and
(B) by striking $1,000,000,000’’ and insert-
ing ‘‘$1,500,000,000’’.
(c) LAWS WHICH MAY BE WAIVED.—Section 614 of
such Act (22 U.S.C. 2364) is amended by striking sub-
sections (b) and (c) and inserting the following:
‘‘(b) LAWS WHICH MAY BE WAIVED.—The provisions
referred to in paragraphs (1) and (2) of subsection (a)
are—
‘‘(1) the provisions of this Act;
‘‘(2) the provisions of the Arms Export Control
Act;
‘‘(3) the provisions of any annual (or periodic)
foreign assistance authorization or appropriations
legislation, including any amendment made by any
such Act;
120
‘‘(4) any other provision of law that restricts as-
sistance, sales or leases, or other action under the Acts
referred to in paragraph (1), (2), or (3); and
‘‘(5) any law relating to receipts and credits ac-
cruing to the United States.’’.
(d) CONFORMING AMENDMENT.—Section 614(a)(4)(B)
of such Act (22 U.S.C 2364(a)(4)(B)) is amended by strik-
ing ‘‘the Arms Export Control Act or under’’.
SEC. 704. TERMINATION OF ASSISTANCE.
Section 617 of the Foreign Assistance Act of 1961 (22
U.S.C. 2367) is amended to read as follows:
‘‘SEC. 617. TERMINATION OF ASSISTANCE.
‘‘(a) IN GENERAL.—(1) In order to ensure the effective-
ness of assistance provided under this Act, notwithstanding
any other provision of law, funds made available under this
Act or the Arms Export Control Act to carry out any pro-
gram, project, or activity of assistance shall remain avail-
able for obligation for a period not to exceed 8 months after
the date of termination of such assistance for the necessary
expenses of winding up such programs, projects, or activi-
ties, and funds so obligated may remain available until ex-
pended.
‘‘(2) Funds obligated to carry out any program,
project, or activity of assistance before the effective date of
the termination of such assistance are authorized to be
121
available for expenditure for the necessary expenses of wind-
ing up such programs, projects, and activities, notwith-
standing any provision of law restricting the expenditure
of funds, and may be reobligated to meet any other nec-
essary expenses arising from the termination of such assist-
ance.
‘‘(3) The necessary expenses of winding up programs,
projects, and activities of assistance include the obligation
and expenditure of funds to complete the training or studies
outside their countries of origin of students whose course
of study or training program began before assistance was
terminated.
‘‘(b) LIABILITY TO CONTRACTORS.—For the purpose of
making an equitable settlement of termination claims under
extraordinary contractual relief standards, the President is
authorized to adopt as a contract or other obligation of the
United States Government, and assume (in whole or in
part) any liabilities arising thereunder, any contract with
a United States or third-country contractor to carry out
any program, project, or activity of assistance under this
Act that was subsequently terminated pursuant to law.
‘‘(c) GUARANTEE PROGRAMS.—Provisions of this or
any other Act requiring the termination of assistance under
this Act shall not be construed to require the termination
122
of guarantee commitments that were entered into before the
effective date of the termination of assistance.’’.
SEC. 705. LOCAL ASSISTANCE TO HUMAN RIGHTS GROUPS
IN CUBA.
Section 109 of the Cuban Liberty and Democratic Sol-
idarity (LIBERTAD) Act of 1996 (22 U.S.C. 6039) is
amended by adding at the end the following:
‘‘(d) LOCAL ASSISTANCE.—
‘‘(1) IN GENERAL.—For the purposes of provid-
ing assistance to independent nongovernmental orga-
nizations and individuals in Cuba as authorized by
subsection (a), amounts made available under such
subsection may be used for assistance to individuals
and nongovernmental organizations in Cuba and for
local costs incurred in delivering such assistance.
‘‘(2) CERTIFICATION.—A certification by a rep-
resentative of a United States or local nongovern-
mental organization, or other entity, administering
assistance described in paragraph (1), that such as-
sistance is being used for its intended purpose, shall
be deemed to satisfy any accountability requirement
of the United States Agency for International Devel-
opment for the administration of such assistance.’’.
123
CHAPTER 2—REPEALS
SEC. 711. REPEAL OF OBSOLETE PROVISIONS.
(a) 1987 FOREIGN
ASSISTANCE
APPROPRIATIONS
ACT.—Section 539(g)(2) of the Foreign Assistance and Re-
lated Programs Appropriations Act, 1987, as included in
Public Law 99–591, is hereby repealed.
(b) 1986 ASSISTANCE ACT.—The Special Foreign As-
sistance Act of 1986 is hereby repealed except for section
1, section 204, and title III of such Act.
(c) 1985 ASSISTANCE ACT.—The International Secu-
rity and Development Cooperation Act of 1985 is hereby
repealed except for section 1, section 131, section 132, sec-
tion 502, section 504, section 505, part B of title V (other
than section 558 and section 559), section 1302, section
1303, and section 1304.
(d) 1985 JORDAN SUPPLEMENTAL ACT.—The Jordan
Supplemental Economic Assistance Authorization Act of
1985 is hereby repealed.
(e) 1985 AFRICAN FAMINE ACT.—The African Famine
Relief and Recovery Act of 1985 is hereby repealed.
(f) 1983 ASSISTANCE ACT.—The International Secu-
rity and Development Assistance Authorization Act of 1983
is hereby repealed.
(g) 1983 LEBANON ASSISTANCE ACT.—The Lebanon
Emergency Assistance Act of 1983 is hereby repealed.
124
(h) 1981 ASSISTANCE ACT.—The International Secu-
rity and Development Cooperation Act of 1981 is hereby
repealed except for section 1, section 709, and section 714.
(i) 1980 ASSISTANCE ACT.—The International Secu-
rity and Development Cooperation Act of 1980 is hereby
repealed except for section 1, section 110, section 316, and
title V.
(j) 1979 DEVELOPMENT ASSISTANCE ACT.—The Inter-
national Development Cooperation Act of 1979 is hereby re-
pealed.
(k) 1979 SECURITY ASSISTANCE ACT.—The Inter-
national Security Assistance Act of 1979 is hereby repealed.
(l) 1979 SPECIAL SECURITY ASSISTANCE ACT.—The
Special International Security Assistance Act of 1979 is
hereby repealed.
(m) 1978 DEVELOPMENT
ASSISTANCE
ACT.—The
International Development and Food Assistance Act of 1978
is hereby repealed, except for section 1, title IV, and section
603(a)(2).
(n) 1978 SECURITY ASSISTANCE ACT.—The Inter-
national Security Assistance Act of 1978 is hereby repealed.
(o) 1977 DEVELOPMENT ASSISTANCE ACT.—The Inter-
national Development and Food Assistance Act of 1977 is
hereby repealed except for section 1, section 132(b), and sec-
tion 133.
125
(p) 1977 SECURITY ASSISTANCE ACT.—The Inter-
national Security Assistance Act of 1977 is hereby repealed.
(q) 1976 SECURITY ASSISTANCE ACT.—The Inter-
national Security Assistance and Arms Export Control Act
of 1976 is hereby repealed except for section 1, section
201(b), section 212(b), section 601, and section 608.
(r) 1975 DEVELOPMENT ASSISTANCE ACT.—The Inter-
national Development and Food Assistance Act of 1975 is
hereby repealed.
(s) 1975 BIB ACT.—Public Law 94–104 is hereby re-
pealed.
(t) 1974 ASSISTANCE ACT.—The Foreign Assistance
Act of 1974 is hereby repealed.
(u) 1973 EMERGENCY ASSISTANCE ACT.—The Emer-
gency Security Assistance Act of 1973 is hereby repealed.
(v) 1973 ASSISTANCE ACT.—The Foreign Assistance
Act of 1973 is hereby repealed.
(w) 1971 ASSISTANCE ACT.—The Foreign Assistance
Act of 1971 is hereby repealed.
(x) 1971 SPECIAL ASSISTANCE ACT.—The Special
Foreign Assistance Act of 1971 is hereby repealed.
(y) 1969 ASSISTANCE ACT.—The Foreign Assistance
Act of 1969 is hereby repealed except for the first section
and part IV.
126
(z) 1968 ASSISTANCE ACT.—The Foreign Assistance
Act of 1968 is hereby repealed.
(aa) 1964 ASSISTANCE ACT.—The Foreign Assistance
Act of 1964 is hereby repealed.
(bb) LATIN
AMERICAN
DEVELOPMENT
ACT.—The
Latin American Development Act is hereby repealed.
(cc) 1959 MUTUAL SECURITY ACT.—The Mutual Secu-
rity Act of 1959 is hereby repealed.
(dd) 1954 MUTUAL SECURITY ACT.—Sections 402 and
417 of the Mutual Security Act of 1954 are hereby repealed.
(ee) DEPARTMENT OF STATE AUTHORIZATION ACT,
FISCAL YEARS 1982 AND 1983.—Section 109 of the Depart-
ment of State Authorization Act, Fiscal Years 1982 and
1983, is hereby repealed.
(ff) DEPARTMENT OF STATE AUTHORIZATION ACT,
FISCAL
YEARS
1984 AND
1985.—Sections 1004 and
1005(a) of the Department of State Authorization Act, Fis-
cal Years 1984 and 1985, are hereby repealed.
(gg) SAVINGS PROVISION.—Except as otherwise pro-
vided in this Act, the repeal by this Act of any provision
of law that amended or repealed another provision of law
does not affect in any way that amendment or repeal.
127
DIVISION 
B—FOREIGN 
RELA-
TIONS AUTHORIZATIONS ACT
TITLE X—GENERAL PROVISIONS
SEC. 1001. SHORT TITLE.
This division may be cited as the ‘‘Foreign Relations
Authorization Act, Fiscal Years 1998 and 1999’’ and shall
be effective for all purposes as if enacted as a separate Act.
SEC. 1002. STATEMENT OF HISTORY OF LEGISLATION.
This division consists of H.R. 1253, the Foreign Rela-
tions Authorization Act, Fiscal Years 1998 and 1999, which
was introduced by Representative Smith of New Jersey on
April 9, 1997, and amended and reported by the Sub-
committee on International Operations and Human Rights
of the Committee on International Relations on April 10,
1997.
SEC. 1003. DEFINITIONS.
The following terms have the following meanings for
the purposes of this division:
(1) The term ‘‘AID’’ means the Agency for Inter-
national Development.
(2) The term ‘‘ACDA’’ means the United States
Arms Control and Disarmament Agency.
(3) The term ‘‘appropriate congressional com-
mittees’’ means the Committee on International Rela-
128
tions of the House of Representatives and the Com-
mittee of Foreign Relations of the Senate.
(4) The term ‘‘Department’’ means the Depart-
ment of State.
(5) The term ‘‘Federal agency’’ has the meaning
given to the term ‘‘agency’’ by section 551(1) of title
5, United States Code.
(6) The term ‘‘Secretary’’ means the Secretary of
State.
(7) The term ‘‘USIA’’ means the United States
Information Agency.
TITLE XI—AUTHORIZATION OF
APPROPRIATIONS 
FOR 
DE-
PARTMENT 
OF 
STATE 
AND
CERTAIN INTERNATIONAL AF-
FAIRS FUNCTIONS AND AC-
TIVITIES
SEC. 1101. ADMINISTRATION OF FOREIGN AFFAIRS.
The following amounts are authorized to be appro-
priated for the Department of State under ‘‘Administration
of Foreign Affairs’’ to carry out the authorities, functions,
duties, and responsibilities in the conduct of the foreign af-
fairs of the United States and for other purposes authorized
by law, including the diplomatic security program:
129
(1) DIPLOMATIC
AND
CONSULAR
PROGRAMS.—
For ‘‘Diplomatic and Consular Programs’’, of the De-
partment of State $1,291,977,000 for the fiscal year
1998 and $1,291,977,000 for the fiscal year 1999.
(2) SALARIES AND EXPENSES.—
(A) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—For ‘‘Salaries and Expenses’’, of the De-
partment of State $363,513,000 for the fiscal
year 1998 and $363,513,000 for the fiscal year
1999.
(B) LIMITATIONS.—Of the amounts author-
ized to be appropriated by subparagraph (A)
$2,000,000 for fiscal year 1998 and $2,000,000
for fiscal year 1999 are authorized to be appro-
priated only for the recruitment of minorities for
careers in the Foreign Service and international
affairs.
(3) CAPITAL INVESTMENT FUND.—For ‘‘Capital
Investment Fund’’, of the Department of State
$64,600,000 for the fiscal year 1998 and $64,600,000
for the fiscal year 1999.
(4) SECURITY AND MAINTENANCE OF BUILDINGS
ABROAD.—For ‘‘Security and Maintenance of Build-
ings Abroad’’, $373,081,000 for the fiscal year 1998
and $373,081,000 for the fiscal year 1999.
130
(5) REPRESENTATION ALLOWANCES.—For ‘‘Rep-
resentation Allowances’’, $4,300,000 for the fiscal year
1998 and $4,300,000 for the fiscal year 1999.
(6) EMERGENCIES IN THE DIPLOMATIC AND CON-
SULAR
SERVICE.—For ‘‘Emergencies in the Diplo-
matic and Consular Service’’, $5,500,000 for the fis-
cal 1998 and $5,500,000 for the fiscal year 1999.
(7) OFFICE OF THE INSPECTOR GENERAL.—For
‘‘Office of the Inspector General’’, $28,300,000 for the
fiscal year 1998 and $28,300,000 for the fiscal year
1999.
(8) PAYMENT TO THE AMERICAN INSTITUTE IN
TAIWAN.—For ‘‘Payment to the American Institute in
Taiwan’’, $14,490,000 for the fiscal year 1998 and
$14,490,000 for the fiscal year 1999.
(9) PROTECTION OF FOREIGN MISSIONS AND OF-
FICIALS.—For ‘‘Protection of Foreign Missions and
Officials’’, $7,900,000 for the fiscal year 1998 and
$7,900,000 for the fiscal year 1999.
(10) REPATRIATION LOANS.—For ‘‘Repatriation
Loans’’, $1,200,000 for the fiscal year 1998 and
$1,200,000 for the fiscal year 1999, for administrative
expenses.
131
SEC. 1102. INTERNATIONAL ORGANIZATIONS, PROGRAMS,
AND CONFERENCES.
(a) ASSESSED CONTRIBUTIONS
TO INTERNATIONAL
ORGANIZATIONS.—There are authorized to be appropriated
for 
‘‘Contributions 
to 
International 
Organizations’’,
$960,389,000 for the fiscal year 1998 and $987,590,000 for
the fiscal year 1999 for the Department of State to carry
out the authorities, functions, duties, and responsibilities
in the conduct of the foreign affairs of the United States
with respect to international organizations and to carry out
other authorities in law consistent with such purposes.
(b) VOLUNTARY CONTRIBUTIONS TO INTERNATIONAL
ORGANIZATIONS.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated for ‘‘Vol-
untary Contributions to International Organiza-
tions’’, $199,725,000 for the fiscal year 1998 and
$199,725,000 for the fiscal year 1999.
(2) LIMITATIONS.—
(A) 
WORLD
FOOD
PROGRAM.—Of 
the
amounts authorized to be appropriated under
paragraph (1), $5,000,000 for the fiscal year
1998 and $5,000,000 for the fiscal year 1999 are
authorized to be appropriated only for a United
States contribution to the World Food Program.
132
(B) UNITED NATIONS VOLUNTARY FUND FOR
VICTIMS OF TORTURE.—Of the amount author-
ized to be appropriated under paragraph (1),
$3,000,000 for the fiscal year 1998 and
$3,000,000 for the fiscal year 1999 are author-
ized to be appropriated only for a United States
contribution to the United Nations Voluntary
Fund for Victims of Torture.
(C) INTERNATIONAL
PROGRAM
ON
THE
ELIMINATION OF CHILD LABOR.—Of the amounts
authorized to be appropriated under paragraph
(1), $10,000,000 for the fiscal year 1998 and
$10,000,000 for the fiscal year 1999 are author-
ized to be appropriated only for a United States
contribution to the International Labor Organi-
zation for the activities of the International Pro-
gram on the Elimination of Child Labor.
(3) AVAILABILITY OF FUNDS.—Amounts author-
ized to be appropriated under paragraph (1) are au-
thorized to remain available until expended.
(c) ASSESSED CONTRIBUTIONS FOR INTERNATIONAL
PEACEKEEPING ACTIVITIES.—There are authorized to be
appropriated for ‘‘Contributions for International Peace-
keeping Activities’’, $240,000,000 for the fiscal year 1998
and $240,000,000 for the fiscal year 1999 for the Depart-
133
ment of State to carry out the authorities, functions, duties,
and responsibilities in the conduct of the foreign affairs of
the United States with respect to international peacekeep-
ing activities and to carry out other authorities in law con-
sistent with such purposes.
(d) VOLUNTARY CONTRIBUTIONS TO PEACEKEEPING
OPERATIONS.—There are authorized to be appropriated for
‘‘Peacekeeping Operations’’, $87,600,000 for the fiscal year
1998 and $67,000,000 for the fiscal year 1999 for the De-
partment of State to carry out section 551 of Public Law
87–195.
(e) INTERNATIONAL
CONFERENCES
AND
CONTIN-
GENCIES.—There are authorized to be appropriated for
‘‘International Conferences and Contingencies’’, $3,000,000
for the fiscal year 1998 and $3,000,000 for the fiscal year
1999 for the Department of State to carry out the authori-
ties, functions, duties, and responsibilities in the conduct
of the foreign affairs of the United States with respect to
international conferences and contingencies and to carry
out other authorities in law consistent with such purposes.
(f) FOREIGN CURRENCY EXCHANGE RATES.—In addi-
tion to amounts otherwise authorized to be appropriated by
subsections (a) and (b) of this section, there are authorized
to be appropriated such sums as may be necessary for each
of the fiscal years 1998 and 1999 to offset adverse fluctua-
134
tions in foreign currency exchange rates. Amounts appro-
priated under this subsection shall be available for obliga-
tion and expenditure only to the extent that the Director
of the Office of Management and Budget determines and
certifies to Congress that such amounts are necessary due
to such fluctuations.
(g) LIMITATION ON UNITED STATES VOLUNTARY CON-
TRIBUTIONS
TO UNITED NATIONS DEVELOPMENT PRO-
GRAM.—
(1) Of the amounts made available for fiscal
years 1998 and 1999 for United States voluntary con-
tributions to the United Nations Development Pro-
gram an amount equal to the amount the United Na-
tions Development Program will spend in Burma
during each fiscal year shall be withheld unless dur-
ing such fiscal year, the President submits to the ap-
propriate congressional committees the certification
described in paragraph (2).
(2) The certification referred to in paragraph (1)
is a certification by the President that all programs
and activities of the United Nations Development
Program (including United Nations Development
Program—Administered Funds) in Burma—
(A) are focused on eliminating human suf-
fering and addressing the needs of the poor;
135
(B) are undertaken only through inter-
national or private voluntary organizations that
have been deemed independent of the State Law
and Order Restoration Council (SLORC), after
consultation with the leadership of the National
League for Democracy and the leadership of the
National Coalition Government of the Union of
Burma;
(C) provide no financial, political, or mili-
tary benefit to the SLORC; and
(D) are carried out only after consultation
with the leadership of the National League for
Democracy and the leadership of the National
Coalition Government of the Union of Burma.
SEC. 1103. INTERNATIONAL COMMISSIONS.
The following amounts are authorized to be appro-
priated under ‘‘International Commissions’’ for the Depart-
ment of State to carry out the authorities, functions, duties,
and responsibilities in the conduct of the foreign affairs of
the United States and for other purposes authorized by law:
(1) INTERNATIONAL BOUNDARY AND WATER COM-
MISSION, UNITED STATES AND MEXICO.—For ‘‘Inter-
national Boundary and Water Commission, United
States and Mexico’’—
136
(A) 
for 
‘‘Salaries 
and 
Expenses’’
$18,490,000 for the fiscal year 1998 and
$18,490,000 for the fiscal year 1999; and
(B) for ‘‘Construction’’ $6,493,000 for the
fiscal year 1998 and $6,493,000 for the fiscal
year 1999.
(2) INTERNATIONAL
BOUNDARY
COMMISSION,
UNITED
STATES
AND
CANADA.—For ‘‘International
Boundary Commission, United States and Canada’’,
$785,000 for the fiscal year 1998 and $785,000 for
the fiscal year 1999.
(3) INTERNATIONAL
JOINT
COMMISSION.—For
‘‘International Joint Commission’’, $3,225,000 for the
fiscal year 1998 and $3,225,000 for the fiscal year
1999.
(4) INTERNATIONAL FISHERIES COMMISSIONS.—
For 
‘‘International 
Fisheries 
Commissions’’,
$14,549,000 for the fiscal year 1998 and $14,549,000
for the fiscal year 1999.
SEC. 1104. MIGRATION AND REFUGEE ASSISTANCE.
(a) MIGRATION AND REFUGEE ASSISTANCE.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated for ‘‘Migra-
tion and Refugee Assistance’’ for authorized activities,
137
$623,000,000 
for 
the 
fiscal 
year 
1998 
and
$623,000,000 for the fiscal year 1999.
(2) LIMITATION REGARDING TIBETAN REFUGEES
IN INDIA AND NEPAL.—Of the amounts authorized to
be appropriated in paragraph (1), $1,000,000 for the
fiscal year 1998 and $1,000,000 for the fiscal year
1999 are authorized to be available only for humani-
tarian assistance, including but not limited to food,
medicine, clothing, and medical and vocational train-
ing, to Tibetan refugees in India and Nepal who have
fled Chinese-occupied Tibet.
(b) REFUGEES RESETTLING IN ISRAEL.—There are
authorized to be appropriated $80,000,000 for the fiscal
year 1998 and $80,000,000 for the fiscal year 1999 for as-
sistance for refugees resettling in Israel from other coun-
tries.
(c) HUMANITARIAN ASSISTANCE FOR DISPLACED BUR-
MESE.—There are authorized to be appropriated $1,500,000
for the fiscal year 1998 and $1,500,000 for the fiscal year
1999 for humanitarian assistance, including but not lim-
ited to food, medicine, clothing, and medical and vocational
training, to persons displaced as a result of civil conflict
in Burma, including persons still within Burma.
138
(d) AVAILABILITY OF FUNDS.—Funds appropriated
pursuant to this section are authorized to be available until
expended.
SEC. 1105. ASIA FOUNDATION.
There are authorized to be appropriated for ‘‘Asia
Foundation’’, $10,000,000 for the fiscal year 1998 and
$10,000,000 for the fiscal year 1999 for the Department of
State to carry out the authorities, functions, duties, and
responsibilities in the conduct of the foreign affairs of the
United States with respect to Asia Foundation and to carry
out other authorities in law consistent with such purposes.
SEC. 
1106. 
UNITED 
STATES 
INFORMATIONAL, 
EDU-
CATIONAL, AND CULTURAL PROGRAMS.
The following amounts are authorized to be appro-
priated to carry out international information activities
and educational and cultural exchange programs under the
United States Information and Educational Exchange Act
of 1948, the Mutual Educational and Cultural Exchange
Act of 1961, Reorganization Plan Number 2 of 1977, the
United States International Broadcasting Act of 1994, the
Radio Broadcasting to Cuba Act, the Television Broadcast-
ing to Cuba Act, the Board for International Broadcasting
Act, the North/South Center Act of 1991, the National En-
dowment for Democracy Act, and to carry out other au-
thorities in law consistent with such purposes:
139
(1) SALARIES
AND
EXPENSES.—For ‘‘Salaries
and Expenses’’, $434,097,000 for the fiscal year 1998
and $434,097,000 for the fiscal year 1999.
(2) 
TECHNOLOGY
FUND.—For 
‘‘Technology
Fund’’ for the United States Information Agency,
$6,350,000 for the fiscal year 1998 and $6,350,000 for
the fiscal year 1999.
(3) EDUCATIONAL
AND
CULTURAL
EXCHANGE
PROGRAMS.—
(A) FULBRIGHT ACADEMIC EXCHANGE PRO-
GRAMS.—For the ‘‘Fulbright Academic Exchange
Programs’’, $94,236,000 for the fiscal year 1998
and $94,236,000 for the fiscal year 1999.
(B) SOUTH PACIFIC EXCHANGES.—For the
‘‘South Pacific Exchanges’’, $500,000 for the fis-
cal year 1998 and $500,000 for the fiscal year
1999.
(C) EAST TIMORESE SCHOLARSHIPS.—For
the ‘‘East Timorese Scholarships’’, $500,000 for
the fiscal year 1998 and $500,000 for the fiscal
year 1999.
(D) TIBETAN EXCHANGES.—For the ‘‘Edu-
cational and Cultural Exchanges with Tibet’’
under section 236 of the Foreign Relations Au-
thorization Act, Fiscal Years 1994 and 1995
140
(Public Law 103–236), $500,000 for the fiscal
year 1998 and $500,000 for the fiscal year 1999.
(E) OTHER PROGRAMS.—For ‘‘Hubert H.
Humphrey Fellowship Program’’, ‘‘Edmund S.
Muskie Fellowship Program’’, ‘‘International
Visitors Program’’, ‘‘Mike Mansfield Fellowship
Program’’, ‘‘Claude and Mildred Pepper Scholar-
ship Program of the Washington Workshops
Foundation’’, ‘‘Citizen Exchange Programs’’,
‘‘Congress-Bundestag 
Exchange 
Program’’,
‘‘Newly Independent States and Eastern Europe
Training’’, and ‘‘Institute for Representative
Government’’, $97,995,000 for the fiscal year
1998 and $97,995,000 for the fiscal year 1999.
(4) 
INTERNATIONAL
BROADCASTING
ACTIVI-
TIES.—
(A) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—For ‘‘International Broadcasting Activi-
ties’’, $334,655,000 for the fiscal year 1998, and
$334,655,000 for the fiscal year 1999.
(B) ALLOCATION.—Of the amounts author-
ized to be appropriated under subparagraph (A),
the Director of the United States Information
Agency and the Board of Broadcasting Gov-
ernors shall seek to ensure that the amounts
141
made available for broadcasting to nations whose
people do not fully enjoy freedom of expression
do not decline in proportion to the amounts
made available for broadcasting to other nations.
(5) RADIO
CONSTRUCTION.—For ‘‘Radio Con-
struction’’, $30,000,000 for the fiscal year 1998, and
$30,000,000 for the fiscal year 1999.
(6) RADIO FREE ASIA.—For ‘‘Radio Free Asia’’,
$10,000,000 for the fiscal year 1998 and $10,000,000
for the fiscal year 1999.
(7) BROADCASTING TO CUBA.—For ‘‘Broadcast-
ing to Cuba’’, $22,095,000 for the fiscal year 1998
and $22,095,000 for the fiscal year 1999.
(8) CENTER
FOR
CULTURAL
AND
TECHNICAL
INTERCHANGE BETWEEN EAST AND WEST.—For ‘‘Cen-
ter for Cultural and Technical Interchange between
East and West’’, $10,000,000 for the fiscal year 1998
and $10,000,000 for the fiscal year 1999.
(9) NATIONAL ENDOWMENT FOR DEMOCRACY.—
For 
‘‘National 
Endowment 
for 
Democracy’’,
$30,000,000 for the fiscal year 1998 and $30,000,000
for the fiscal year 1999.
(10) CENTER
FOR
CULTURAL
AND
TECHNICAL
INTERCHANGE
BETWEEN
NORTH
AND
SOUTH.—For
‘‘Center for Cultural and Technical Interchange be-
142
tween North and South’’ $2,000,000 for the fiscal year
1998 and $2,000,000 for the fiscal year 1999.
SEC. 1107. UNITED STATES ARMS CONTROL AND DISAR-
MAMENT.
There are authorized to be appropriated to carry out
the purposes of the Arms Control and Disarmament Act—
(1) $44,000,000 for the fiscal year 1998 and
$44,000,000 for the fiscal year 1999; and
(2) such sums as may be necessary for each of
the fiscal years 1998 and 1999 for increases in salary,
pay, retirement, other employee benefits authorized by
law, and to offset adverse fluctuations in foreign cur-
rency exchange rates.
TITLE 
XII—DEPARTMENT 
OF
STATE AUTHORITIES AND AC-
TIVITIES
CHAPTER 1—AUTHORITIES AND
ACTIVITIES
SEC. 1201. REVISION OF DEPARTMENT OF STATE REWARDS
PROGRAM.
(a) IN GENERAL.—Section 36 of the State Department
Basic Authorities Act of 1956 (22 U.S.C. 2708) is amended
to read as follows:
143
‘‘SEC. 36. DEPARTMENT OF STATE REWARDS PROGRAM.
‘‘(a) ESTABLISHMENT.—(1) There is established a pro-
gram for the payment of rewards to carry out the purposes
of this section.
‘‘(2) The rewards program established by this section
shall be administered by the Secretary of State, in consulta-
tion, where appropriate, with the Attorney General.
‘‘(b) PURPOSE.—(1) The rewards program established
by this section shall be designed to assist in the prevention
of acts of international terrorism, international narcotics
trafficking, and other related criminal acts.
‘‘(2) At the sole discretion of the Secretary of State
and in consultation, as appropriate, with the Attorney Gen-
eral, the Secretary may pay a reward to any individual
who furnishes information leading to—
‘‘(A) the arrest or conviction in any country of
any individual for the commission of an act of inter-
national terrorism against a United States person or
United States property;
‘‘(B) the arrest or conviction in any country of
any individual conspiring or attempting to commit
an act of international terrorism against a United
States person or United States property;
‘‘(C) the arrest or conviction in any country of
any individual for committing, primarily outside the
territorial jurisdiction of the United States, any nar-
144
cotics-related offense if that offense involves or is a
significant part of conduct that involves—
‘‘(i) a violation of United States narcotics
laws and which is such that the individual
would be a major violator of such laws; or
‘‘(ii) the killing or kidnapping of—
‘‘(I) any officer, employee, or contract
employee of the United States Government
while such individual is engaged in official
duties, or on account of that individual’s of-
ficial duties, in connection with the enforce-
ment of United States narcotics laws or the
implementing of United States narcotics
control objectives; or
‘‘(II) a member of the immediate fam-
ily of any such individual on account of
that individual’s official duties, in connec-
tion with the enforcement of United States
narcotics laws or the implementing of Unit-
ed States narcotics control objectives; or
‘‘(iii) an attempt or conspiracy to commit
any of the acts described in clause (i) or (ii); or
‘‘(D) the arrest or conviction in any country of
any individual aiding or abetting in the commission
145
of an act described in subparagraphs (A) through (C);
or
‘‘(E) the prevention, frustration, or favorable res-
olution of an act described in subparagraphs (A)
through (C).
‘‘(c) COORDINATION.—(1) To ensure that the payment
of rewards pursuant to this section does not duplicate or
interfere with the payment of informants or the obtaining
of evidence or information, as authorized to the Department
of Justice, the offering, administration, and payment of re-
wards under this section, including procedures for—
‘‘(A) identifying individuals, organizations, and
offenses with respect to which rewards will be offered;
‘‘(B) the publication of rewards;
‘‘(C) offering of joint rewards with foreign gov-
ernments;
‘‘(D) the receipt and analysis of data; and
‘‘(E) the payment and approval of payment,
shall be governed by procedures developed by the Secretary
of State, in consultation with the Attorney General.
‘‘(2) Before making a reward under this section in a
matter over which there is Federal criminal jurisdiction,
the Secretary of State shall advise and consult with the At-
torney General.
146
‘‘(d) FUNDING.—(1) There is authorized to be appro-
priated to the Department of State from time to time such
amounts as may be necessary to carry out the purposes of
this section, notwithstanding section 102 of the Foreign Re-
lations Authorization Act, Fiscal Years 1986 and 1987
(Public Law 99–93).
‘‘(2) No amount of funds may be appropriated which,
when added to the amounts previously appropriated but not
yet obligated, would cause such amounts to exceed
$15,000,000.
‘‘(3) To the maximum extent practicable, funds made
available to carry out this section should be distributed
equally for the purpose of preventing acts of international
terrorism and for the purpose of preventing international
narcotics trafficking.
‘‘(4) Amounts appropriated to carry out the purposes
of this section shall remain available until expended.
‘‘(e) LIMITATION AND CERTIFICATION.—(1) A reward
under this section may not exceed $2,000,000.
‘‘(2) A reward under this section of more than
$100,000 may not be made without the approval of the
President or the Secretary of State.
‘‘(3) Any reward granted under this section shall be
approved and certified for payment by the Secretary of
State.
147
‘‘(4) The authority of paragraph (2) may not be dele-
gated to any other officer or employee of the United States
Government.
‘‘(5) If the Secretary determines that the identity of
the recipient of a reward or of the members of the recipient’s
immediate family must be protected, the Secretary may
take such measures in connection with the payment of the
reward as he considers necessary to effect such protection.
‘‘(f) INELIGIBILITY.—An officer or employee of any
governmental entity who, while in the performance of his
or her official duties, furnishes information described in
subsection (b) shall not be eligible for a reward under this
section.
‘‘(g) REPORTS.—(1) Not later than 30 days after pay-
ing any reward under this section, the Secretary of State
shall submit a report to the appropriate congressional com-
mittees with respect to such reward. The report, which may
be submitted on a classified basis if necessary, shall specify
the amount of the reward paid, to whom the reward was
paid, and the acts with respect to which the reward was
paid. The report shall also discuss the significance of the
information for which the reward was paid in dealing with
those acts.
‘‘(2) Not later than 60 days after the end of each fiscal
year, the Secretary of State shall submit an annual report
148
to the appropriate congressional committees with respect to
the operation of the rewards program authorized by this
section. Such report shall provide information on the total
amounts expended during such fiscal year to carry out the
purposes of this section, including amounts spent to pub-
licize the availability of rewards.
‘‘(h) PUBLICATION REGARDING REWARDS OFFERED
BY FOREIGN GOVERNMENTS.—Notwithstanding any other
provision of this section, at the sole discretion of the Sec-
retary of State the resources of the rewards program author-
ized by this section, shall be available for the publication
of rewards offered by foreign governments regarding acts
of international terrorism which do not involve United
States persons or property or a violation of the narcotics
laws of the United States.
‘‘(i) DEFINITIONS.—As used in this section—
‘‘(1) the term ‘appropriate congressional commit-
tees’ means the Committee on International Relations
of the House of Representatives and the Committee on
Foreign Relations of the Senate;
‘‘(2) the term ‘act of international terrorism’ in-
cludes, but is not limited to—
‘‘(A) any act substantially contributing to
the acquisition of unsafeguarded special nuclear
material (as defined in section 830(8) of the Nu-
149
clear Proliferation Prevention Act of 1994) or
any nuclear explosive device (as defined in sec-
tion 830(4) of that Act) by an individual, group,
or non-nuclear weapon state (as defined in sec-
tion 830(5) of that Act); and
‘‘(B) any act, as determined by the Sec-
retary of State, which materially supports the
conduct of international terrorism, including the
counterfeiting of United States currency or the
illegal use of other monetary instruments by an
individual, group, or country supporting inter-
national terrorism as determined for purposes of
section 6(j) of the Export Administration Act of
1979;
‘‘(3) the term ‘United States narcotics laws’
means the laws of the United States for the preven-
tion and control of illicit traffic in controlled sub-
stances (as such term is defined for purposes of the
Controlled Substances Act); and
‘‘(4) the term ‘member of the immediate family’
includes—
‘‘(A) a spouse, parent, brother, sister, or
child of the individual;
‘‘(B) a person to whom the individual
stands in loco parentis; and
150
‘‘(C) any other person living in the individ-
ual’s household and related to the individual by
blood or marriage.
‘‘(j) DETERMINATIONS OF THE SECRETARY.—A deter-
mination made by the Secretary of State under this section
shall be final and conclusive and shall not be subject to judi-
cial review.’’.
(b) USE OF EARNINGS FROM FROZEN ASSETS FOR
PROGRAM.—
(1) AMOUNTS TO BE MADE AVAILABLE.—Up to 2
percent of the earnings accruing, during periods be-
ginning October 1, 1998, on all assets of foreign coun-
tries blocked by the President pursuant to the Inter-
national Emergency Powers Act (50 U.S.C. 1701 and
following) shall be available, subject to appropriations
Acts, to carry out section 36 of the State Department
Basic Authorities Act, as amended by this section, ex-
cept that the limitation contained in subsection (d)(2)
of such section shall not apply to amounts made
available under this paragraph.
(2) CONTROL OF FUNDS BY THE PRESIDENT.—
The President is authorized and directed to take pos-
session and exercise full control of so much of the
earnings described in paragraph (1) as are made
available under such paragraph.
151
SEC. 1202. FOREIGN SERVICE NATIONAL SEPARATION LI-
ABILITY TRUST FUND.
Section 151 of the Foreign Relations Authorization
Act, Fiscal Years 1992 and 1993 (22 U.S.C. 4012a) is
amended by adding at the end the following new subsection:
‘‘(e) INTEREST.—The Secretary of the Treasury shall
deposit amounts in the fund in interest-bearing accounts.
Any interest earned on such deposits may be credited to
the fund without further appropriation.’’.
SEC. 1203. CAPITAL INVESTMENT FUND.
Section 135 of the Foreign Relations Authorization
Act, Fiscal Years 1994 and 1995 (22 U.S.C. 2684a) is
amended—
(1) in subsection (a) by inserting ‘‘and enhance-
ment’’ after ‘‘procurement’’;
(2) in subsection (c) by striking ‘‘are authorized
to’’ and inserting ‘‘shall’’;
(3) in subsection (d) by striking ‘‘for expenditure
to procure capital equipment and information tech-
nology’’ and inserting in lieu thereof ‘‘for purposes of
subsection (a)’’; and
(4) by amending subsection (e) to read as fol-
lows:
‘‘(e) REPROGRAMMING PROCEDURES.—Funds credited
to the Capital Investment Fund shall not be available for
obligation or expenditure except in compliance with the
152
procedures applicable to reprogrammings under section 34
of the State Department Basic Authorities Act of 1956 (22
U.S.C. 2710).’’.
SEC. 1204. INTERNATIONAL CENTER RESERVE FUNDS.
Section 5 of the International Center Act (Public Law
90–553) is amended by adding at the end the following new
sentence: ‘‘Amounts in the reserve may be deposited in in-
terest-bearing accounts and the Secretary may retain for
the purposes set forth in this section any interest earned
on such deposits without returning such interest to the
Treasury of the United States and without further appro-
priation.’’.
SEC. 1205. PROCEEDS OF SALE OF FOREIGN PROPERTIES.
Section 9 of the Foreign Service Buildings Act, 1926
(22 U.S.C. 300) is amended by adding at the end the follow-
ing new subsection:
‘‘(d) Any proceeds held or deposited pursuant to this
section may be deposited in interest bearing accounts. The
Secretary of State may retain interest earned on such de-
posits for the purposes of this section without returning such
interest to the Treasury of the United States and interest
earned may be obligated and expended without further ap-
propriation.’’.
153
SEC. 1206. REDUCTION OF REPORTING.
(a) REPORT ON FOREIGN SERVICE PERSONNEL IN
EACH AGENCY.—Section 601(c)(4) of the Foreign Service
Act of 1980 (22 U.S.C. 4001(c)(4)) is repealed.
(b) REPORT ON PARTICIPATION BY U.S. MILITARY
PERSONNEL
ABROAD
IN
U.S. 
ELECTIONS.—Section
101(b)(6) of the Uniformed and Overseas Citizens Absentee
Voting Act (42 U.S.C. 1973ff(b)(6)) is amended by striking
‘‘of voter participation’’ and inserting ‘‘of uniformed serv-
ices voter participation, a general assessment of overseas
nonmilitary participation,’’.
(c) COUNTRY REPORTS ON ECONOMIC POLICY AND
TRADE PRACTICES.—Section 2202 of the Omnibus Trade
and Competitiveness Act of 1988 (15 U.S.C. 4711) is re-
pealed.
(d) ANNUAL REPORT
ON SOCIAL
AND ECONOMIC
GROWTH.—Section 574 of the Foreign Operations, Export
Financing, and Related Programs Appropriations Act,
1996 (Public Law 104–107) is repealed.
(e) REPORT.—Section 308 of the Chemical and Bio-
logical Weapons and Warfare Elimination Act of 1991 (22
U.S.C. 5606) is repealed.
154
SEC. 1207. CONTRACTING FOR LOCAL GUARDS SERVICES
OVERSEAS.
Section 136(c) of the Foreign Relations Authorization
Act, Fiscal Years 1990 and 1991 (22 U.S.C. 4864(c)) is
amended—
(1) by amending paragraph (3) to read as fol-
lows:
‘‘(3) in evaluating proposals for such contracts,
award contracts to the technically acceptable firm of-
fering the lowest evaluated price, except that propos-
als of United States persons and qualified United
States joint venture persons (as defined in subsection
(d)) shall be evaluated by reducing the bid price by
5 percent;’’;
(2) by inserting ‘‘and’’ at the end of paragraph
(5);
(3) by striking ‘‘; and’’ at the end of paragraph
(6) and inserting a period; and
(4) by striking paragraph (7).
SEC. 1208. PREADJUDICATION OF CLAIMS.
Section 4(a) of the International Claims Settlement
Act (22 U.S.C. 1623(a)) is amended—
(1) in the first sentence by striking ‘‘1948, or’’
and inserting ‘‘1948,’’;
(2) by inserting before the period at the end of
the first sentence ‘‘, or included in a category of
155
claims against a foreign government which is referred
to the Commission by the Secretary of State’’; and
(3) in paragraph (1) by striking ‘‘the applica-
ble’’ and inserting ‘‘any applicable’’.
SEC. 1209. EXPENSES RELATING TO CERTAIN INTER-
NATIONAL CLAIMS AND PROCEEDINGS.
(a) RECOVERY OF CERTAIN EXPENSES.—The Depart-
ment of State Appropriation Act of 1937 (49 Stat. 1321,
22 U.S.C. 2661) is amended in the fifth undesignated para-
graph under the heading entitled ‘‘INTERNATIONAL FISH-
ERIES COMMISSION’’ by striking ‘‘extraordinary’’.
(b) PROCUREMENT OF SERVICES.—Section 38(c) of the
State Department Basic Authorities Act of 1956 (22 U.S.C.
2710(c)) is amended in the first sentence by inserting ‘‘per-
sonal and’’ before ‘‘other support services’’.
SEC. 1210. ESTABLISHMENT OF FEE ACCOUNT AND PROVID-
ING FOR PASSPORT INFORMATION SERVICES.
(a) DISPOSITION OF FEES.—Amounts collected by the
Department of State pursuant to section 281 of the Immi-
gration and Nationality Act (8 U.S.C. 1351), section 1 of
the Passport Act of June 4, 1920 (22 U.S.C. 214), section
16 of the Act of August 18, 1856 (22 U.S.C. 4219), and
section 9701 of title 31, United States Code, shall be depos-
ited in a special fund of the Treasury.
156
(b) USE OF FUNDS.—Subject to subsections (d) and
(e), amounts collected and deposited in the special fund in
the Treasury pursuant to subsection (a) shall be available
to the extent and in such amounts as are provided in ad-
vance in appropriations Acts for the following purposes:
(1) To pay all necessary expenses of the Depart-
ment of State and the Foreign Service, including ex-
penses authorized by the State Department Basic Au-
thorities Act of 1956.
(2) Representation to certain international orga-
nizations in which the United States participates
pursuant to treaties ratified pursuant to the advice
and consent of the Senate or specific Acts of Congress.
(3) Acquisition by exchange or purchase of pas-
senger motor vehicles as authorized by section 1343 of
title 31, United States Code, section 201(c) of the Fed-
eral Property and Administrative Services Act of
1949 (40 U.S.C. 481(c)), and section 7 of the State
Department Basic Authorities Act (22 U.S.C. 2674).
(4) Expenses of general administration of the
Department of State.
(5) To carry out the Foreign Service Buildings
Act of 1926 (22 U.S.C. 292–300) and the Diplomatic
Security Construction Program as authorized by title
157
IV of the Omnibus Diplomatic Security and
Antiterrorism Act of 1986 (22 U.S.C. 4851).
(c) AVAILABILITY OF FUNDS.—Amounts collected and
deposited in the special fund pursuant to subsection (a) are
authorized to remain available until expended.
(d) LIMITATION.—For any fiscal year, any amount de-
posited in the special fund under subsection (a) that exceeds
$455,000,000 is authorized to be made available only if a
notification is submitted in compliance with the procedures
applicable to a reprogramming of funds under section 34
of the State Department Basic Authorities Act of 1956.
(e) PASSPORT INFORMATION SERVICES.—For each of
the fiscal years 1998 and 1999, $5,000,000 of the amounts
available in the fund shall be available only for the purpose
of providing passport information without charge to citi-
zens of the United States, including—
(1) information about who is eligible to receive
a United States passport and how and where to
apply;
(2) information about the status of pending ap-
plications; and
(3) names, addresses, and telephone numbers of
State and Federal officials who are authorized to pro-
vide passport information in cooperation with the De-
partment of State.
158
SEC. 1211. ESTABLISHMENT OF MACHINE READABLE FEE
ACCOUNT.
Section 140(a) of the Foreign Relations Authorization
Act, Fiscal Years 1994 and 1995 (Public Law 103–236) is
amended—
(1) by redesignating paragraph (4) as para-
graph (6);
(2) by striking paragraph (5);
(3) by striking paragraphs (2) and (3) and in-
serting the following:
‘‘(2) Amounts collected under the authority of
paragraph (1) shall be deposited in a special fund of
the Treasury.
‘‘(3) Subject to paragraph (5), fees deposited in
the special fund pursuant to paragraph (2) shall be
available to the extent and in such amounts as are
provided in advance in appropriations Acts for costs
of the Department of State’s border security program,
including the costs of—
‘‘(A) installation and operation of the ma-
chine readable visa and automated name-check
process;
‘‘(B) improving the quality and security of
the United States passport;
‘‘(C) passport and visa fraud investigations;
and
159
‘‘(D) the technological infrastructure to sup-
port and operate the programs referred to in sub-
paragraphs (A) through (C).
‘‘(4) Amounts deposited pursuant to paragraph
(2) shall remain available for obligation until ex-
pended.
‘‘(5) For any fiscal year, any amount collected
pursuant to the authority of paragraph (1) that ex-
ceeds $140,000,000 is authorized to be made available
only if a notification is submitted in compliance with
the procedures applicable to a reprogramming of
funds under section 34 of the State Department Basic
Authorities Act of 1956.’’.
SEC. 1212. RETENTION OF ADDITIONAL DEFENSE TRADE
CONTROLS REGISTRATION FEES.
Section 45(a) of the State Department Basic Authori-
ties Act of 1956 (22 U.S.C. 2717(a)) is amended—
(1) by striking ‘‘$700,000 of the’’ and inserting
‘‘all’’;
(2) at the end of paragraph (1) by striking
‘‘and’’;
(3) in paragraph (2)—
(A) by striking ‘‘functions’’ and inserting
‘‘functions, including compliance and enforce-
ment activities,’’; and
160
(B) by striking the period at the end and
inserting ‘‘; and’’; and
(4) by adding at the end the following new para-
graph (3):
‘‘(3) the enhancement of defense trade export
compliance and enforcement activities to include com-
pliance audits of United States and foreign parties,
the conduct of administrative proceedings, end-use
monitoring of direct commercial arms sales and
transfer, and cooperation in criminal proceedings re-
lated to defense trade export controls.’’.
SEC. 1213. TRAINING.
(a) INSTITUTE FOR TRAINING.—Section 701 of the
Foreign Service Act of 1980 (22 U.S.C. 4021) is amended—
(1) by redesignating subsection (d)(4) as sub-
section (g); and
(2) by inserting after paragraph (3) of sub-
section (d) the following new subsections:
‘‘(e)(1) The Secretary of State may, in the discretion
of the Secretary, provide appropriate training and related
services through the institution to employees of United
States companies engaged in business abroad, and to the
families of such employees.
‘‘(2) In the case of any company under contract to pro-
vide services to the Department of State, the Secretary of
161
State is authorized to provide job-related training and re-
lated services to any company employee who is performing
such services.
‘‘(3) Training under this subsection shall be on a reim-
bursable or advance-of-funds basis. Such reimbursements or
advances shall be credited to the currently available appli-
cable appropriation account.
‘‘(4) Training and related services under this sub-
section is authorized only to the extent that it will not inter-
fere with the institution’s primary mission of training em-
ployees of the Department and of other agencies in the field
of foreign relations.
‘‘(f)(1) The Secretary of State is authorized to provide
on a reimbursable basis training programs to Members of
Congress or the judiciary.
‘‘(2) Congressional staff members and employees of the
judiciary may participate on a reimbursable, space-avail-
able basis in training programs offered by the institution.
‘‘(3) Reimbursements collected under this subsection
shall be credited to the currently available applicable appro-
priation account.
‘‘(4) Training under this subsection is authorized only
to the extent that it will not interfere with the institution’s
primary mission of training employees of the Department
162
of State and of other agencies in the field of foreign rela-
tions.’’.
(b) FEES FOR USE OF NATIONAL FOREIGN AFFAIRS
TRAINING CENTER.—The State Department Basic Authori-
ties Act of 1956 (22 U.S.C. 2669 et seq.) is amended by
adding after section 52 the following new section:
‘‘SEC. 53. FEES FOR USE OF THE NATIONAL FOREIGN AF-
FAIRS TRAINING CENTER.
‘‘The Secretary is authorized to charge a fee for use
of the National Foreign Affairs Training Center Facility
of the Department of State. Funds collected under the au-
thority of this section, including reimbursements, sur-
charges, and fees, shall be deposited as an offsetting collec-
tion to any Department of State appropriation to recover
the costs of such use and shall remain available for obliga-
tion until expended.’’.
SEC. 1214. RECOVERY OF COSTS OF HEALTH CARE SERV-
ICES.
(a) AUTHORITIES.—Section 904 of the Foreign Service
Act of 1980 (22 U.S.C. 4084) is amended—
(1) in subsection (a)—
(A) by striking ‘‘and’’ after ‘‘employees,’’,
and
163
(B) by inserting before the period ‘‘, and
(for care provided abroad) such other persons as
are designated by the Secretary of State’’;
(2) in subsection (d), by inserting ‘‘subject to
subsections (g) through (i)’’ before ‘‘the Secretary’’;
and
(3) by adding at the end the following new sub-
sections:
‘‘(g)(1)(A) In the case of a covered beneficiary who is
provided health care under this section and who is enrolled
in a covered health benefits plan of a third-party payer,
the United States shall have the right to collect from the
third-party payer a reasonable charge amount for the care
to the extent that the payment would be made under such
plan for such care under the conditions specified in para-
graph (2) if a claim were submitted by or on behalf of the
covered beneficiary.
‘‘(B) Such a covered beneficiary is not required to pay
any deductible, copayment, or other cost-sharing under the
covered health benefits plan or under this section for health
care provided under this section.
‘‘(2) With respect to health care provided under this
section to a covered beneficiary, for purposes of carrying
out paragraph (1)—
164
‘‘(A) the reasonable charge amount (as defined in
paragraph (9)(C)) shall be treated by the third-party
payer as the payment basis otherwise allowable for
the care under the plan;
‘‘(B) under regulations, if the covered health ben-
efits plan restricts or differentiates in benefit pay-
ments based on whether a provider of health care has
a participation agreement with the third-party payer,
the Secretary shall be treated as having such an
agreement as results in the highest level of payment
under this subsection;
‘‘(C) no provision of the health benefit plan hav-
ing the effect of excluding from coverage or limiting
payment of charges for certain care shall operate to
prevent collection under subsection (a), including (but
not limited to) any provision that limits coverage or
payment on the basis that—
‘‘(i) the care was provided outside the Unit-
ed States,
‘‘(ii) the care was provided by a govern-
mental entity,
‘‘(iii) the covered beneficiary (or any other
person) has no obligation to pay for the care,
165
‘‘(iv) the provider of the care is not licensed
to provide the care in the United States or other
location,
‘‘(v) a condition of coverage relating to uti-
lization review, prior authorization, or similar
utilization control has not been met, or
‘‘(vi) in the case that drugs were provided,
the provision of the drugs for any indicated pur-
pose has not been approved by the Federal Food,
Drug, and Cosmetic Administration;
‘‘(D) if the covered health benefits plan contains
a requirement for payment of a deductible, copay-
ment, or similar cost-sharing by the beneficiary—
‘‘(i) the beneficiary’s not having paid such
cost-sharing with respect to the care shall not
preclude collection under this section, and
‘‘(ii) the amount the United States may col-
lect under this section shall be reduced by appli-
cation of the appropriate cost-sharing;
‘‘(E) amounts that would be payable by the
third-party payer under this section but for the appli-
cation of a deductible under subparagraph (D)(ii)
shall be counted towards such deductible notwith-
standing that under paragraph (1)(B) the individual
166
is not charged for the care and did not pay an
amount towards such care; and
‘‘(F) the Secretary may apply such other provi-
sions as may be appropriate to carry out this section
in an equitable manner.
‘‘(3) In exercising authority under paragraph (1)—
‘‘(A) the United States shall be subrogated to
any right or claim that the covered beneficiary may
have against a third-party payer;
‘‘(B) the United States may institute and pros-
ecute legal proceedings against a third-party payer to
enforce a right of the United States under this section;
and
‘‘(C) the Secretary may compromise, settle, or
waive a claim of the United States under this section.
‘‘(4) No law of any State, or of any political subdivi-
sion of a State, shall operate to prevent or hinder collection
by the United States under this section.
‘‘(5) If collection is sought from a third-party payer
for health care furnished a covered beneficiary under this
section, under regulations medical records of the beneficiary
shall be made available for inspection and review by rep-
resentatives of the third-party payer for the sole purpose
of permitting the third-party payer to verify, consistent
with this subsection that—
167
‘‘(A) the care for which recovery or collection is
sought were furnished to the beneficiary; and
‘‘(B) except as otherwise provided in this sub-
section, the provision of such care to the beneficiary
meets criteria generally applicable under the covered
health benefits plan.
‘‘(6) The Secretary shall establish (and periodically
update) a schedule of reasonable charge amounts for health
care provided under this section. The amount under such
schedule for health care shall be based on charges or fee
schedule amounts recognized by third-party payers under
covered health benefits plans for payment purposes for simi-
lar health care services furnished in the Metropolitan Wash-
ington, District of Columbia, area.
‘‘(7) The Secretary shall establish a procedure under
which a covered beneficiary may elect to have subsection
(h) apply instead of this subsection with respect to some
or all health care provided to the beneficiary under this sec-
tion.
‘‘(8) Amounts collected under this subsection, under
subsection (h), or under any authority referred to in sub-
section (i), from a third-party payer or from any other
payer shall be deposited as an offsetting collection to any
Department of State appropriation and shall remain avail-
able until expended.
168
‘‘(9) For purposes of this section:
‘‘(A) The term ‘covered beneficiary’ means a
member or employee (or family member of such a
member of employee) described in subsection (a) who
is enrolled under a covered health benefits plan.
‘‘(B)(i) Subject to clause (ii), the term ‘covered
health benefits plan’ means a health benefits plan of-
fered under the Federal Employees Health Benefits
Program under chapter 89 of title 5, United States
Code.
‘‘(ii) Such term does not include such a health
benefits plan (such as a plan of a staff-model health
maintenance organization) as the Secretary deter-
mines pursuant to regulations to be structured in a
manner that impedes the application of this sub-
section to individuals enrolled under the plan. To the
extent practicable, the Secretary shall seek to dissemi-
nate to members of the Service and designated em-
ployees described in subsection (a) who are eligible to
receive health care under this section the names of
plans excluded under this clause.
‘‘(C) The term ‘reasonable charge amount’
means, with respect to health care provided under this
section, the amount for such care specified in the
schedule established under paragraph (6).
169
‘‘(D) The term ‘third-party payer’ means an en-
tity that offers a covered health benefits plan.
‘‘(h)(1) In the case of an individual who—
‘‘(A) receives health care pursuant to this sec-
tion; and
‘‘(B)(i) is not a covered beneficiary (including
by virtue of enrollment only in a health benefits plan
excluded under subsection (g)(9)(B)(ii)), or
‘‘(ii) is such a covered beneficiary and has made
an election described in subsection (g)(7) with respect
to such care,
the Secretary is authorized to collect from the individual
the full reasonable charge amount for such care.
‘‘(2) The United States shall have the same rights
against such individuals with respect to collection of such
amounts as the United States has with respect to collection
of amounts against a third-party payer under subsection
(g), except that the rights under this subsection shall be ex-
ercised without regard to any rules for deductibles, coinsur-
ance, or other cost-sharing.
‘‘(i) Subsections (g) and (h) shall apply to reimburse-
ment for the cost of hospitalization and related outpatient
expenses paid for under subsection (d) only to the extent
provided in regulations. Nothing in this subsection, or sub-
sections (g) and (h), shall be construed as limiting any au-
170
thority the Secretary otherwise has with respect to obtain-
ing reimbursement for the payments made under subsection
(d).’’.
(b) EFFECTIVE DATE.—(1) The amendments made by
subsection (a) shall apply to items and services provided
on and after the first day of the first month that begins
more than 1 year after the date of the enactment of this
Act.
(2) In order to carry out such amendments in a timely
manner, the Secretary of State is authorized to issue in-
terim, final regulations that take effect pending notice and
opportunity for public comment.
SEC. 1215. FEE FOR USE OF DIPLOMATIC RECEPTION
ROOMS.
The State Department Basic Authorities Act of 1956
(22 U.S.C. 2651a et seq.) is amended by adding after sec-
tion 53 (as added by section 1213(b)) the following new sec-
tion:
‘‘SEC. 54. FEE FOR USE OF DIPLOMATIC RECEPTION ROOMS.
‘‘The Secretary of State is authorized to charge a fee
for use of the diplomatic reception rooms of the Department
of State. Amounts collected under the authority of this sec-
tion (including any reimbursements and surcharges) shall
be deposited as an offsetting collection to any Department
171
of State appropriation to recover the costs of such use and
shall remain available for obligation until expended.’’.
SEC. 1216. FEES FOR COMMERCIAL SERVICES.
Section 52 of the State Department Basic Authorities
Act of 1956 (22 U.S.C. 2724) is amended in subsection (b)
by adding at the end the following: ‘‘Funds deposited under
this subsection shall remain available for obligation until
expended.’’.
SEC. 1217. BUDGET PRESENTATION DOCUMENTS.
The Secretary of State shall include in the annual
Congressional Presentation Document and the Budget in
Brief, a detailed accounting of the total collections received
by the Department of State from all sources, including fee
collections. Reporting on total collections shall also include
the previous year’s collection and the projected expenditures
from all collections accounts.
SEC. 1218. EXTENSION OF CERTAIN ADJUDICATION PROVI-
SIONS.
The Foreign Operations, Export Financing, and Re-
lated Programs Appropriations Act, 1990 (Public Law
101–167) is amended—
(1) in section 599D (8 U.S.C. 1157 note)—
(A) in subsection (b)(3), by striking ‘‘and
1997’’ and inserting ‘‘1997, 1998, and 1999’’;
and
172
(B) in subsection (e), by striking ‘‘October
1, 1997’’ each place it appears and inserting
‘‘October 1, 1999’’; and
(2) in section 599E (8 U.S.C. 1255 note) in sub-
section (b)(2), by striking ‘‘September 30, 1997’’ and
inserting ‘‘September 30, 1999’’.
SEC. 1219. GRANTS TO OVERSEAS EDUCATIONAL FACILI-
TIES.
Section 29 of the State Department Basic Authorities
Act of 1956 (22 U.S.C. 2701) is amended by adding at the
end the following: ‘‘Notwithstanding any other provision of
law, where the children of United States citizen employees
of an agency of the United States Government who are sta-
tioned outside the United States attend educational facili-
ties assisted by the Department of State under this section,
such agency is authorized make grants to, or otherwise to
reimburse or credit with advance payment, the Department
of State for funds used in providing assistance to such edu-
cational facilities.’’.
SEC. 1220. GRANTS TO REMEDY INTERNATIONAL CHILD AB-
DUCTIONS.
(a) GRANT AUTHORITY.—Section 7 of the Inter-
national Child Abduction Remedies Act (42 U.S.C. 11606;
Public Law 100–300) is amended by adding at the end the
following new subsection: