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market-oriented economic system, including enactment of
necessary substantive commercial law, implementation of
reforms necessary to establish an independent judiciary and
bar, legal education for judges, attorneys, and law students,
and education of the public designed to promote under-
standing of a law-based economy.
(b) None of the funds appropriated under this heading
shall be transferred to the Government of Russia—
(1) unless that Government is making progress
in implementing comprehensive economic reforms
based on market principles, private ownership, nego-
tiating repayment of commercial debt, respect for
commercial contracts, and equitable treatment of for-
eign private investment; and
(2) if that Government applies or transfers Unit-
ed States assistance to any entity for the purpose of
expropriating or seizing ownership or control of as-
sets, investments, or ventures.
(c) Funds may be furnished without regard to sub-
section (b) if the President determines that to do so is in
the national interest.
(d) None of the funds appropriated under this heading
shall be made available to any government of the new inde-
pendent states of the former Soviet Union if that govern-
ment directs any action in violation of the territorial integ-
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rity or national sovereignty of any other new independent
state, such as those violations included in the Helsinki
Final Act: Provided, That such funds may be made avail-
able without regard to the restriction in this subsection if
the President determines that to do so is in the national
security interest of the United States: Provided further,
That the restriction of this subsection shall not apply to
the use of such funds for the provision of assistance for pur-
poses of humanitarian, disaster and refugee relief.
(e) None of the funds appropriated under this heading
for the new independent states of the former Soviet Union
shall be made available for any state to enhance its military
capability: Provided, That this restriction does not apply
to demilitarization or nonproliferation programs.
(f) Funds appropriated under this heading shall be
subject to the regular notification procedures of the Commit-
tees on Appropriations.
(g) Funds made available in this Act for assistance
to the new independent states of the former Soviet Union
shall be subject to the provisions of section 117 (relating
to environment and natural resources) of the Foreign As-
sistance Act of 1961.
(h)(1) Of the funds appropriated under title II of this
Act, including funds appropriated under this heading, not
less than $11,000,000 shall be available only for assistance
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for Mongolia, of which amount not less than $6,000,000
shall be available only for the Mongolian energy sector.
(2) Funds made available for assistance for Mongolia
shall be made available in accordance with the purposes
and utilizing the authorities provided in chapter 11 of part
I of the Foreign Assistance Act of 1961.
(i) Funds made available in this Act for assistance to
the New Independent States of the former Soviet Union
shall be provided to the maximum extent feasible through
the private sector, including small- and medium-size busi-
nesses, entrepreneurs, and others with indigenous private
enterprises in the region, intermediary development organi-
zations committed to private enterprise, and private vol-
untary organizations: Provided, That grantees and contrac-
tors should, to the maximum extent possible, place in key
staff positions specialists with prior on the ground expertise
in the region of activity and fluency in one of the local
languages.
(j) In issuing new task orders, entering into contracts,
or making grants, with funds appropriated under this
heading or in prior appropriations Acts, for projects or ac-
tivities that have as one of their primary purposes the fos-
tering of private sector development, the Coordinator for
United States Assistance to the New Independent States
and the implementing agency shall encourage the participa-
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tion of and give significant weight to contractors and grant-
ees who propose investing a significant amount of their own
resources (including volunteer services and in-kind con-
tributions) in such projects and activities.
(k) Of the funds made available under this heading,
not less than $225,000,000 shall be made available for
Ukraine, of which funds not less than $25,000,000 shall be
made available to carry out United States decommissioning
obligations regarding the Chornobyl plant made in the
Memorandum of Understanding between the Government of
Ukraine and the G–7 Group: Provided, That not less than
$35,000,000 shall be made available for agricultural
projects, including those undertaken through the Food Sys-
tems Restructuring Program, which leverage private sector
resources with United States Government assistance: Pro-
vided further, That $5,000,000 shall be available for a small
business 
incubator 
project: 
Provided 
further, 
That
$5,000,000 shall be made available for screening and treat-
ment of childhood mental and physical illnesses related to
Chornobyl radiation: Provided further, That of the amount
appropriated under this heading, $5,000,000 shall be avail-
able only for a land and resource management institute to
identify nuclear contamination at Chornobyl..
(l) Of the funds made available for Ukraine, under this
Act or any other Act, not less than $50,000,000 shall be
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made available to improve safety at nuclear reactors: Pro-
vided, That of this amount $20,000,000 shall be provided
for the purchase and installation of, and training for, safety
parameter display or control systems at all operational nu-
clear reactors: Provided further, That of this amount,
$20,000,000 shall be made available for the purchase, con-
struction, installation and training for Full Scope and An-
alytical/Engineering simulators: Provided further, That of
this amount such funds as may be necessary shall be made
available to conduct Safety Analysis Reports at all oper-
ational nuclear reactors.
(m) Of the funds made available by this Act, not less
than $95,000,000 shall be made available for Armenia.
(n) Of the funds made available by this or any other
Act, $25,000,000 shall be made available for Georgia.
(o) None of the funds appropriated under this heading
may be made available for Russia unless the President de-
termines and certifies in writing to the Committees on Ap-
propriations that the Government of Russia has terminated
implementation of arrangements to provide Iran with tech-
nical expertise, training, technology, or equipment nec-
essary to develop a nuclear reactor or related nuclear re-
search facilities or programs.
(p) Of the funds appropriated under this heading,
$15,000,000 shall be provided for hospital partnership pro-
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grams, medical assistance to directly reduce the incidence
of infectious diseases such as diphtheria or tuberculosis, and
a program to reduce the adverse impact of contaminated
drinking water.
(q) Of the funds appropriated under this heading and
under the heading ‘‘Assistance for Eastern Europe and the
Baltic States’’, not less than $12,000,000 shall be made
available for law enforcement training and exchanges, and
investigative and technical assistance activities related to
international criminal activities: Provided, That of this
amount, not less than $1,000,000 shall be made available
for training and exchanges in Russia to combat violence
against women.
(r) Of the funds appropriated under this heading, not
less than $50,000,000 should be provided to the Western NIS
and Central Asian Enterprise Funds: Provided, That obli-
gation of these funds shall be consistent with sound business
practices.
(s) Of the funds made available under this heading,
not less than $10,000,000 shall be made available for a
United States contribution to the Trans-Caucasus Enter-
prise Fund.
(t) Funds appropriated under this heading or in prior
appropriations Acts that are or have been made available
for an Enterprise Fund may be deposited by such Fund
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in interest-bearing accounts prior to the disbursement of
such funds by the Fund for program purposes. The Fund
may retain for such program proposes any interest earned
on such deposits without returning such interest to the
Treasury of the United States and without further appro-
priation by the Congress. Funds made available for Enter-
prise Funds shall be expended at the minimum rate nec-
essary to make timely payment for projects and activities.
(u) Funds appropriated under this heading may not
be made available for the Government of Ukraine if the
President determines and reports to the Committees on Ap-
propriations that the Government of Ukraine is engaged in
military cooperation with the Government of Libya.
(v) Of the funds appropriated under this heading, not
less than $15,000,000 shall be available only for a family
planning program for the New Independent States of the
former Soviet Union comparable to the family planning
program currently administered by the Agency for Inter-
national Development in the Central Asian Republics and
focusing on population assistance which provides an alter-
native to abortion.
(w) Funds made available under this Act or any other
Act (other than assistance under title V of the FREEDOM
Support Act) may not be provided to the Government of
Azerbaijan until the President determines, and so reports
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to the Congress, that the Government of Azerbaijan is taking
demonstrable steps to cease all blockades and other offensive
uses of force against Armenia and Nagorno-Karabakh.
(x) Of the funds appropriated under this heading, not
less than $2,500,000 shall be made available for the Amer-
ican-Russian Center.
INDEPENDENT AGENCY
PEACE CORPS
For expenses necessary to carry out the provisions of
the Peace Corps Act (75 Stat. 612), $205,000,000, including
the purchase of not to exceed five passenger motor vehicles
for administrative purposes for use outside of the United
States: Provided, That none of the funds appropriated
under this heading shall be used to pay for abortions: Pro-
vided further, That funds appropriated under this heading
shall remain available until September 30, 1998.
DEPARTMENT OF STATE
INTERNATIONAL NARCOTICS CONTROL
For necessary expenses to carry out the provisions of
section 481 of the Foreign Assistance Act of 1961,
$213,000,000: Provided, That during fiscal year 1997, the
Department of State may also use the authority of section
608 of the Foreign Assistance Act of 1961, without regard
to its restrictions, to receive non-lethal excess property from
an agency of the United States Government for the purpose
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of providing it to a foreign country under chapter 8 of part
I of that Act subject to the regular notification procedures
of the Committees on Appropriations: Provided, That, of
the funds appropriated under this heading, $2,000,000 shall
be available only for demining operations in Afghanistan.
MIGRATION AND REFUGEE ASSISTANCE
For expenses, not otherwise provided for, necessary to
enable the Secretary of State to provide, as authorized by
law, a contribution to the International Committee of the
Red Cross, assistance to refugees, including contributions
to the International Organization for Migration and the
United Nations High Commissioner for Refugees, and other
activities to meet refugee and migration needs; salaries and
expenses of personnel and dependents as authorized by the
Foreign Service Act of 1980; allowances as authorized by
sections 5921 through 5925 of title 5, United States Code;
purchase and hire of passenger motor vehicles; and services
as authorized by section 3109 of title 5, United States Code,
$650,000,000: Provided, That not more than $12,000,000
shall be available for administrative expenses: Provided fur-
ther, That not less than $80,000,000 shall be made available
for refugees from the former Soviet Union and Eastern Eu-
rope and other refugees resettling in Israel.
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UNITED STATES EMERGENCY REFUGEE AND MIGRATION
ASSISTANCE FUND
For necessary expenses to carry out the provisions of
section 2(c) of the Migration and Refugee Assistance Act
of 1962, as amended (22 U.S.C. 260(c)), $50,000,000, to
remain available until expended: Provided, That the funds
made available under this heading are appropriated not-
withstanding the provisions contained in section 2(c)(2) of
the Migration and Refugee Assistance Act of 1962 which
would limit the amount of funds which could be appro-
priated for this purpose.
NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND
RELATED PROGRAMS
(INCLUDING TRANSFERS OF FUNDS)
For necessary expenses for nonproliferation, anti-ter-
rorism and related programs and activities, $140,000,000
to carry out the provisions of chapter 8 of part II of the
Foreign Assistance Act of 1961 for anti-terrorism assist-
ance, section 504 of the FREEDOM Support Act for the
Nonproliferation and Disarmament Fund, section 23 of the
Arms Export Control Act for demining activities, notwith-
standing any other provision of law, including activities
implemented through nongovernmental and international
organizations, section 301 of the Foreign Assistance Act of
1961 for a voluntary contribution to the International
Atomic Energy Agency (IAEA) and a voluntary contribu-
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tion to the Korean Peninsula Energy Development Organi-
zation (KEDO), and for the acquisition and provision of
goods and services, or for grants to Israel necessary to sup-
port the eradication of terrorism in and around Israel: Pro-
vided, That of this amount not to exceed $15,000,000, to
remain available until expended, may be made available
for the Nonproliferation and Disarmament Fund, notwith-
standing any other provision of law, to promote bilateral
and multilateral activities relating to nonproliferation and
disarmament: Provided further, That such funds may also
be used for such countries other than the new independent
states of the former Soviet Union and international organi-
zations when it is in the national security interest of the
United States to do so: Provided further, That such funds
shall be subject to the regular notification procedures of the
Committees on Appropriations: Provided further, That
funds appropriated under this heading may be made avail-
able for the International Atomic Energy Agency only if
the Secretary of State determines (and so reports to the
Congress) that Israel is not being denied its right to partici-
pate in the activities of that Agency: Provided further, That,
notwithstanding any prohibitions in this or any other Act
on direct or indirect assistance to North Korea, not more
than $25,000,000 may be made available to the Korean Pe-
ninsula Energy Development Organization (KEDO) only
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for heavy fuel oil costs and other expenses associated with
the Agreed Framework, of which $13,000,000 shall be from
funds appropriated under this heading and $12,000,000
may be transferred from funds appropriated by this Act
under the headings ‘‘International Organization and Pro-
grams’’, ‘‘Foreign Military Financing Program’’, and
‘‘Economic Support Fund’’: Provided further, That such
funds may be obligated to KEDO only if, prior to such obli-
gation of funds, the President certifies and so reports to
Congress that (1)(A) the United States is taking steps to
assure that progress is made on the implementation of the
January 
1, 
1992, 
Joint 
Declaration 
on 
the
Denuclearization of the Korean Peninsula and the imple-
mentation of the North-South dialogue, and (B) North
Korea is complying with the other provisions of the Agreed
Framework between North Korea and the United States and
with the Confidential Minute; (2) North Korea is cooperat-
ing fully in the canning and safe storage of all spent fuel
from its graphite-moderated nuclear reactors and that such
canning and safe storage is scheduled to be completed by
the end of fiscal year 1997; and (3) North Korea has not
significantly diverted assistance provided by the United
States for purposes for which such assistance was not in-
tended: Provided further, That the President may waive the
certification requirements of the preceding proviso if the
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President deems it necessary in the vital national security
interests of the United States: Provided further, That no
funds may be obligated for KEDO until 30 calendar days
after the submission to Congress of the waiver permitted
under the preceding proviso: Provided further, That before
obligating any funds for KEDO, the President shall report
to Congress on (1) the cooperation of North Korea in the
process of returning to the United States the remains of
United States military personnel who are listed as missing
in action as a result of the Korean conflict (including con-
ducting joint field activities with the United States); (2)
violations of the military armistice agreement of 1953; (3)
the actions which the United States is taking and plans
to take to assure that North Korea is consistently taking
steps 
to 
implement 
the 
Joint 
Declaration 
on
Denuclearization of the Korean Peninsula and engage in
North-South dialogue; and (4) all instances of non-compli-
ance with the agreed framework between North Korea and
the United States and the Confidential Minute, including
diversion of heating fuel oil: Provided further, That the obli-
gation of such funds shall be subject to the regular notifica-
tion procedures of the Committees on Appropriations.
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TITLE III—MILITARY ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
INTERNATIONAL MILITARY EDUCATION AND TRAINING
For necessary expenses to carry out the provisions of
section 541 of the Foreign Assistance Act of 1961,
$40,000,000: Provided, That up to $100,000 of the funds
appropriated under this heading may be made available for
grant financed military education and training for any
high income country on the condition that that country
agrees to fund from its own resources the transportation
cost and living allowances of its students: Provided further,
That the civilian personnel for whom military education
and training may be provided under this heading may also
include members of national legislatures who are respon-
sible for the oversight and management of the military, and
may also include individuals who are not members of a
government: Provided further, That none of the funds ap-
propriated under this heading shall be available for Zaire
and Guatemala: Provided further, That funds appropriated
under this heading for grant financed military education
and training for Indonesia may only be available for ex-
panded military education and training.
FOREIGN MILITARY FINANCING PROGRAM
(INCLUDING TRANSFERS OF FUNDS)
For expenses necessary for grants to enable the Presi-
dent to carry out the provisions of section 23 of the Arms
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Export Control Act, $3,224,000,000: Provided, That of the
funds appropriated by this paragraph not less than
$1,800,000,000 shall be available for grants only for Israel,
and not less than $1,300,000,000 shall be available for
grants only for Egypt: Provided further, That the funds ap-
propriated by this paragraph for Israel shall be disbursed
within thirty days of enactment of this Act or by October
31, 1996, whichever is later: Provided further, That to the
extent that the Government of Israel requests that funds be
used for such purposes, grants made available for Israel by
this paragraph shall, as agreed by Israel and the United
States, be available for advanced weapons systems, of which
not less than $475,000,000 shall be available for the pro-
curement in Israel of defense articles and defense services,
including research and development: Provided further, That
Poland, Hungary, and the Czech Republic shall be des-
ignated as eligible for the program established under section
203(a) of the NATO Participation Act of 1994: Provided
further, That of the funds made available under this para-
graph, $30,000,000 shall be available for assistance on a
grant basis for Poland, Hungary, and the Czech Republic
to carry out title II of Public Law 103–477 and section
585 of Public Law 104–107: Provided further, That funds
made available under this paragraph shall be nonrepayable
notwithstanding any requirement in section 23 of the Arms
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Export Control Act: Provided further, That, for the purpose
only of providing support for NATO expansion and the
Warsaw Initiative Program, of the funds appropriated by
this Act under the headings ‘‘Assistance for Eastern Europe
and the Baltic States’’ and ‘‘Assistance for the New Inde-
pendent States of the Former Soviet Union’’, up to a total
of $20,000,000 may be transferred, notwithstanding any
other provision of law, to the funds appropriated under this
paragraph: Provided further, That none of the funds made
available under this heading shall be available for any non-
NATO country participating in the Partnership for Peace
Program except through the regular notification procedures
of the Committees on Appropriations.
For the cost, as defined in section 502 of the Congres-
sional Budget Act of 1974, of direct loans authorized by
section 23 of the Arms Export Control Act as follows: cost
of direct loans, $60,000,000: Provided, That these funds are
available to subsidize gross obligations for the principal
amount of direct loans of not to exceed $540,000,000: Pro-
vided further, That the rate of interest charged on such
loans shall be not less than the current average market yield
on outstanding marketable obligations of the United States
of comparable maturities: Provided further, That of the
funds appropriated under this paragraph $20,000,000 shall
be made available to Poland, Hungary, and the Czech Re-
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public: Provided further, That funds appropriated under
this heading shall be made available for Greece and Turkey
only on a loan basis, and the principal amount of direct
loans for each country shall not exceed the following:
$122,500,000 only for Greece and $175,000,000 only for
Turkey.
None of the funds made available under this heading
shall be available to finance the procurement of defense arti-
cles, defense services, or design and construction services
that are not sold by the United States Government under
the Arms Export Control Act unless the foreign country pro-
posing to make such procurements has first signed an agree-
ment with the United States Government specifying the
conditions under which such procurements may be financed
with such funds: Provided, That all country and funding
level increases in allocations shall be submitted through the
regular notification procedures of section 515 of this Act:
Provided further, That funds made available under this
heading shall be obligated upon apportionment in accord-
ance with paragraph (5)(C) of title 31, United States Code,
section 1501(a): Provided further, That none of the funds
appropriated under this heading shall be available for
Zaire, Sudan, Peru, Liberia, and Guatemala: Provided fur-
ther, That none of the funds appropriated or otherwise
made available for use under this heading may be made
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available for Colombia or Bolivia until the Secretary of
State certifies that such funds will be used by such country
primarily for counternarcotics activities: Provided further,
That funds made available under this heading may be used,
notwithstanding any other provision of law, for activities
related to the clearance of landmines and unexploded ord-
nance, and may include activities implemented through
nongovernmental and international organizations: Pro-
vided further, That not more than $100,000,000 of the funds
made available under this heading shall be available for use
in financing the procurement of defense articles, defense
services, or design and construction services that are not
sold by the United States Government under the Arms Ex-
port Control Act to countries other than Israel and Egypt:
Provided further, That only those countries for which assist-
ance was justified for the ‘‘Foreign Military Sales Financ-
ing Program’’ in the fiscal year 1989 congressional presen-
tation for security assistance programs may utilize funds
made available under this heading for procurement of de-
fense articles, defense services or design and construction
services that are not sold by the United States Government
under the Arms Export Control Act: Provided further, That,
subject to the regular notification procedures of the Commit-
tees on Appropriations, funds made available under this
heading for the cost of direct loans may also be used to sup-
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plement the funds available under this heading for grants,
and funds made available under this heading for grants
may also be used to supplement the funds available under
this heading for the cost of direct loans: Provided further,
That funds appropriated under this heading shall be ex-
pended at the minimum rate necessary to make timely pay-
ment for defense articles and services: Provided further,
That the Department of Defense shall conduct during the
current fiscal year nonreimbursable audits of private firms
whose contracts are made directly with foreign governments
and are financed with funds made available under this
heading (as well as subcontractors thereunder) as requested
by the Defense Security Assistance Agency: Provided fur-
ther, That not more than $23,250,000 of the funds appro-
priated under this heading may be obligated for necessary
expenses, including the purchase of passenger motor vehicles
for replacement only for use outside of the United States,
for the general costs of administering military assistance
and sales: Provided further, That not more than
$355,000,000 of funds realized pursuant to section
21(e)(1)(A) of the Arms Export Control Act may be obli-
gated for expenses incurred by the Department of Defense
during fiscal year 1997 pursuant to section 43(b) of the
Arms Export Control Act, except that this limitation may
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be exceeded only through the regular notification procedures
of the Committees on Appropriations.
PEACEKEEPING OPERATIONS
For necessary expenses to carry out the provisions of
section 551 of the Foreign Assistance Act of 1961,
$65,000,000: Provided, That none of the funds appropriated
under this paragraph shall be obligated or expended except
as provided through the regular notification procedures of
the Committees on Appropriations.
TITLE IV—MULTILATERAL ECONOMIC
ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
INTERNATIONAL FINANCIAL INSTITUTIONS
CONTRIBUTION TO THE GLOBAL ENVIRONMENT FACILITY
For payment to the International Bank for Recon-
struction and Development by the Secretary of the Treas-
ury, for the United States contribution to the Global Envi-
ronment Facility (GEF), $35,000,000, to remain available
until September 30, 1998.
CONTRIBUTION TO THE INTERIM TRUST FUND AT THE
INTERNATIONAL DEVELOPMENT ASSOCIATION
For payment to the Interim Trust Fund administered
by the International Development Association by the Sec-
retary of the Treasury, $700,000,000, to remain available
until expended.
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TITLE V—GENERAL PROVISIONS
OBLIGATIONS DURING LAST MONTH OF AVAILABILITY
SEC. 501. Except for the appropriations entitled
‘‘International Disaster Assistance’’, and ‘‘United States
Emergency Refugee and Migration Assistance Fund’’, not
more than 15 per centum of any appropriation item made
available by this Act shall be obligated during the last
month of availability.
PROHIBITION OF BILATERAL FUNDING FOR INTERNATIONAL
FINANCIAL INSTITUTIONS
SEC. 502. None of the funds contained in title II of
this Act may be used to carry out the provisions of section
209(d) of the Foreign Assistance Act of 1961.
LIMITATION ON RESIDENCE EXPENSES
SEC. 503. Of the funds appropriated or made available
pursuant to this Act, not to exceed $126,500 shall be for
official residence expenses of the Agency for International
Development during the current fiscal year: Provided, That
appropriate steps shall be taken to assure that, to the maxi-
mum extent possible, United States-owned foreign cur-
rencies are utilized in lieu of dollars.
LIMITATION ON EXPENSES
SEC. 504. Of the funds appropriated or made available
pursuant to this Act, not to exceed $5,000 shall be for enter-
tainment expenses of the Agency for International Develop-
ment during the current fiscal year.
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LIMITATION ON REPRESENTATIONAL ALLOWANCES
SEC. 505. Of the funds appropriated or made available
pursuant to this Act, not to exceed $95,000 shall be avail-
able for representation allowances for the Agency for Inter-
national Development during the current fiscal year: Pro-
vided, That appropriate steps shall be taken to assure that,
to the maximum extent possible, United States-owned for-
eign currencies are utilized in lieu of dollars: Provided fur-
ther, That of the funds made available by this Act for gen-
eral costs of administering military assistance and sales
under the heading ‘‘Foreign Military Financing Program’’,
not to exceed $2,000 shall be available for entertainment
expenses and not to exceed $50,000 shall be available for
representation allowances: Provided further, That of the
funds made available by this Act under the heading ‘‘Inter-
national Military Education and Training’’, not to exceed
$50,000 shall be available for entertainment allowances:
Provided further, That of the funds made available by this
Act for the Inter-American Foundation, not to exceed
$2,000 shall be available for entertainment and representa-
tion allowances: Provided further, That of the funds made
available by this Act for the Peace Corps, not to exceed a
total of $4,000 shall be available for entertainment expenses:
Provided further, That of the funds made available by this
Act under the heading ‘‘Trade and Development Agency’’,
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not to exceed $2,000 shall be available for representation
and entertainment allowances.
PROHIBITION ON FINANCING NUCLEAR GOODS
SEC. 506. None of the funds appropriated or made
available (other than funds for ‘‘Nonproliferation, Anti-ter-
rorism, Demining and Related Programs’’) pursuant to this
Act, for carrying out the Foreign Assistance Act of 1961,
may be used, except for purposes of nuclear safety, to fi-
nance the export of nuclear equipment, fuel, or technology.
PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN
COUNTRIES
SEC. 507. None of the funds appropriated or otherwise
made available pursuant to this Act shall be obligated or
expended to finance directly any assistance or reparations
to Cuba, Iraq, Libya, North Korea, Iran, Serbia, Sudan,
or Syria: Provided, That for purposes of this section, the
prohibition on obligations or expenditures shall include di-
rect loans, credits, insurance and guarantees of the Export-
Import Bank or its agents.
MILITARY COUPS
SEC. 508. None of the funds appropriated or otherwise
made available pursuant to this Act shall be obligated or
expended to finance directly any assistance to any country
whose duly elected Head of Government is deposed by mili-
tary coup or decree: Provided, That assistance may be re-
sumed to such country if the President determines and re-
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ports to the Committees on Appropriations that subsequent
to the termination of assistance a democratically elected
government has taken office.
TRANSFERS BETWEEN ACCOUNTS
SEC. 509. None of the funds made available by this
Act may be obligated under an appropriation account to
which they were not appropriated, except for transfers spe-
cifically provided for in this Act, unless the President, prior
to the exercise of any authority contained in the Foreign
Assistance Act of 1961 to transfer funds, consults with and
provides a written policy justification to the Committees
on Appropriations of the House of Representatives and the
Senate: Provided, That the exercise of such authority shall
be subject to the regular notification procedures of the Com-
mittees on Appropriations, except for transfers specifically
referred to in this Act.
DEOBLIGATION/REOBLIGATION AUTHORITY
SEC. 510. (a) Amounts certified pursuant to section
1311 of the Supplemental Appropriations Act, 1955, as
having been obligated against appropriations heretofore
made under the authority of the Foreign Assistance Act of
1961 for the same general purpose as any of the headings
under title II of this Act are, if deobligated, hereby contin-
ued available for the same period as the respective appro-
priations under such headings or until September 30, 1997,
whichever is later, and for the same general purpose, and
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for countries within the same region as originally obligated:
Provided, That the Appropriations Committees of both
Houses of the Congress are notified fifteen days in advance
of the deobligation and reobligation of such funds in accord-
ance with regular notification procedures of the Committees
on Appropriations.
(b) Obligated balances of funds appropriated to carry
out section 23 of the Arms Export Control Act as of the
end of the fiscal year immediately preceding the current
fiscal year are, if deobligated, hereby continued available
during the current fiscal year for the same purpose under
any authority applicable to such appropriations under this
Act: Provided, That the authority of this subsection may
not be used in fiscal year 1997.
AVAILABILITY OF FUNDS
SEC. 511. No part of any appropriation contained in
this Act shall remain available for obligation after the expi-
ration of the current fiscal year unless expressly so provided
in this Act: Provided, That funds appropriated for the pur-
poses of chapters 1, 8 and 11 of part I, section 667, and
chapter 4 of part II of the Foreign Assistance Act of 1961,
as amended, and funds provided under the heading ‘‘Assist-
ance for Eastern Europe and the Baltic States’’, shall re-
main available until expended if such funds are initially
obligated before the expiration of their respective periods of
availability contained in this Act: Provided further, That,
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notwithstanding any other provision of this Act, any funds
made available for the purposes of chapter 1 of part I and
chapter 4 of part II of the Foreign Assistance Act of 1961
which are allocated or obligated for cash disbursements in
order to address balance of payments or economic policy
reform objectives, shall remain available until expended:
Provided further, That the report required by section 653(a)
of the Foreign Assistance Act of 1961 shall designate for
each country, to the extent known at the time of submission
of such report, those funds allocated for cash disbursement
for balance of payment and economic policy reform pur-
poses.
LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT
SEC. 512. No part of any appropriation contained in
this Act shall be used to furnish assistance to any country
which is in default during a period in excess of one calendar
year in payment to the United States of principal or inter-
est on any loan made to such country by the United States
pursuant to a program for which funds are appropriated
under this Act: Provided, That this section and section
620(q) of the Foreign Assistance Act of 1961 shall not apply
to funds made available in this Act or during the current
fiscal year for Nicaragua, and for any narcotics-related as-
sistance for Colombia, Bolivia, and Peru authorized by the
Foreign Assistance Act of 1961 or the Arms Export Control
Act.
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COMMERCE AND TRADE
SEC. 513. (a) None of the funds appropriated or made
available pursuant to this Act for direct assistance and
none of the funds otherwise made available pursuant to this
Act to the Export-Import Bank and the Overseas Private
Investment Corporation shall be obligated or expended to
finance any loan, any assistance or any other financial
commitments for establishing or expanding production of
any commodity for export by any country other than the
United States, if the commodity is likely to be in surplus
on world markets at the time the resulting productive ca-
pacity is expected to become operative and if the assistance
will cause substantial injury to United States producers of
the same, similar, or competing commodity.
(b) None of the funds appropriated by this or any other
Act to carry out chapter 1 of part I of the Foreign Assist-
ance Act of 1961 shall be available for any testing or breed-
ing feasibility study, variety improvement or introduction,
consultancy, publication, conference, or training in connec-
tion with the growth or production in a foreign country
of an agricultural commodity for export which would com-
pete with a similar commodity grown or produced in the
United States: Provided, That this subsection shall not pro-
hibit—
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(1) activities designed to increase food security
in developing countries where such activities will not
have a significant impact in the export of agricul-
tural commodities of the United States; or
(2) research activities intended primarily to ben-
efit American producers.
SURPLUS COMMODITIES
SEC. 514. The Secretary of the Treasury shall instruct
the United States Executive Directors of the International
Bank for Reconstruction and Development, the Inter-
national Development Association, the International Fi-
nance Corporation, the Inter-American Development Bank,
the International Monetary Fund, the Asian Development
Bank, the Inter-American Investment Corporation, the
North American Development Bank, the European Bank for
Reconstruction and Development, the African Development
Bank, and the African Development Fund to use the voice
and vote of the United States to oppose any assistance by
these institutions, using funds appropriated or made avail-
able pursuant to this Act, for the production or extraction
of any commodity or mineral for export, if it is in surplus
on world markets and if the assistance will cause substan-
tial injury to United States producers of the same, similar,
or competing commodity.
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NOTIFICATION REQUIREMENTS
SEC. 515. For the purposes of providing the Executive
Branch with the necessary administrative flexibility, none
of the funds made available under this Act for ‘‘Develop-
ment Assistance’’, ‘‘Population, Development Assistance’’,
‘‘International organizations and programs’’, ‘‘Trade and
Development Agency’’, ‘‘International narcotics control’’,
‘‘Assistance for Eastern Europe and the Baltic States’’,
‘‘Assistance for the New Independent States of the Former
Soviet Union’’, ‘‘Economic Support Fund’’, ‘‘Peacekeeping
operations’’, ‘‘Operating expenses of the Agency for Inter-
national Development’’, ‘‘Operating expenses of the Agency
for International Development Office of Inspector General’’,
‘‘Nonproliferation, Anti-terrorism, Demining and Related
Programs’’, ‘‘Export-Import Bank of the United States’’,
‘‘Foreign Military Financing Program’’, ‘‘International
military education and training’’, ‘‘Peace Corps’’, ‘‘Migra-
tion and refugee assistance’’, and for the ‘‘Inter-American
Foundation’’ and the ‘‘African Development Foundation’’,
shall be available for obligation for activities, programs,
projects, type of materiel assistance, countries, or other op-
erations not justified or in excess of the amount justified
to the Appropriations Committees for obligation under any
of these specific headings unless the Appropriations Com-
mittees of both Houses of Congress are previously notified
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fifteen days in advance: Provided, That the President shall
not enter into any commitment of funds appropriated for
the purposes of section 23 of the Arms Export Control Act
for the provision of major defense equipment, other than
conventional ammunition, or other major defense items de-
fined to be aircraft, ships, missiles, or combat vehicles, not
previously justified to Congress or 20 per centum in excess
of the quantities justified to Congress unless the Committees
on Appropriations are notified fifteen days in advance of
such commitment: Provided further, That this section shall
not apply to any reprogramming for an activity, program,
or project under chapter 1 of part I of the Foreign Assist-
ance Act of 1961 of less than 10 per centum of the amount
previously justified to the Congress for obligation for such
activity, program, or project for the current fiscal year:
Provided further, That the requirements of this section or
any similar provision of this Act or any other Act, includ-
ing any prior Act requiring notification in accordance with
the regular notification procedures of the Committees on
Appropriations, may be waived if failure to do so would
pose a substantial risk to human health or welfare: Provided
further, That in case of any such waiver, notification to
the Congress, or the appropriate congressional committees,
shall be provided as early as practicable, but in no event
later than three days after taking the action to which such
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notification requirement was applicable, in the context of
the circumstances necessitating such waiver: Provided fur-
ther, That any notification provided pursuant to such a
waiver shall contain an explanation of the emergency cir-
cumstances.
Drawdowns made pursuant to section 506(a)(2) of the
Foreign Assistance Act of 1961 shall be subject to the regu-
lar notification procedures of the Committees on Appropria-
tions.
LIMITATION ON AVAILABILITY OF FUNDS FOR
INTERNATIONAL ORGANIZATIONS AND PROGRAMS
SEC. 516. Notwithstanding any other provision of law
or of this Act, none of the funds provided for ‘‘International
Organizations and Programs’’ shall be available for the
United States proportionate share, in accordance with sec-
tion 307(c) of the Foreign Assistance Act of 1961, for any
programs identified in section 307, or for Libya, Iran, or,
at the discretion of the President, Communist countries list-
ed in section 620(f) of the Foreign Assistance Act of 1961,
as amended: Provided, That, subject to the regular notifica-
tion procedures of the Committees on Appropriations, funds
appropriated under this Act or any previously enacted Act
making appropriations for foreign operations, export fi-
nancing, and related programs, which are returned or not
made available for organizations and programs because of
the implementation of this section or any similar provision
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of law, shall remain available for obligation through Sep-
tember 30, 1997.
ECONOMIC SUPPORT FUND ASSISTANCE FOR ISRAEL
SEC. 517. The Congress finds that progress on the
peace process in the Middle East is vitally important to
United States security interests in the region. The Congress
recognizes that, in fulfilling its obligations under the Treaty
of Peace Between the Arab Republic of Egypt and the State
of Israel, done at Washington on March 26, 1979, Israel
incurred severe economic burdens. Furthermore, the Con-
gress recognizes that an economically and militarily secure
Israel serves the security interests of the United States, for
a secure Israel is an Israel which has the incentive and
confidence to continue pursuing the peace process. There-
fore, the Congress declares that, subject to the availability
of appropriations, it is the policy and the intention of the
United States that the funds provided in annual appropria-
tions for the Economic Support Fund which are allocated
to Israel shall not be less than the annual debt repayment
(interest and principal) from Israel to the United States
Government in recognition that such a principle serves
United States interests in the region.
PROHIBITION ON FUNDING FOR ABORTIONS AND
INVOLUNTARY STERILIZATION
SEC. 518. None of the funds made available to carry
out part I of the Foreign Assistance Act of 1961, as amend-
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ed, may be used to pay for the performance of abortions
as a method of family planning or to motivate or coerce
any person to practice abortions. None of the funds made
available to carry out part I of the Foreign Assistance Act
of 1961, as amended, may be used to pay for the perform-
ance of involuntary sterilization as a method of family
planning or to coerce or provide any financial incentive
to any person to undergo sterilizations. None of the funds
made available to carry out part I of the Foreign Assistance
Act of 1961, as amended, may be used to pay for any bio-
medical research which relates in whole or in part, to meth-
ods of, or the performance of, abortions or involuntary steri-
lization as a means of family planning. None of the funds
made available to carry out part I of the Foreign Assistance
Act of 1961, as amended, may be obligated or expended for
any country or organization if the President certifies that
the use of these funds by any such country or organization
would violate any of the above provisions related to abor-
tions and involuntary sterilizations: Provided, That none
of the funds made available under this Act may be used
to lobby for or against abortion.
POPULATION PLANNING ASSISTANCE LIMITATIONS
SEC. 519. (a) PROHIBITION ON ABORTION FUNDING.—
None of the funds made available under this Act may be
used to pay for the performance of abortion as a method
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of family planning, or to coerce or motivate any person to
practice abortions.
(b) PROHIBITION ON ABORTION LOBBYING.—None of
the funds made available under this Act may be used to
lobby for or against abortion.
(c) ELIGIBILITY.—In determining eligibility for assist-
ance from funds appropriated to carry out section 104 of
the Foreign Assistance Act of 1961, nongovernmental and
multilateral organizations shall not be subjected to require-
ments more restrictive than the requirements applicable to
foreign governments for such assistance.
REPORTING REQUIREMENT
SEC. 520. The President shall submit to the Commit-
tees on Appropriations the reports required by section
25(a)(1) of the Arms Export Control Act.
SPECIAL NOTIFICATION REQUIREMENTS
SEC. 521. None of the funds appropriated in this Act
shall be obligated or expended for Colombia, Guatemala,
Haiti, Liberia, Pakistan, Sudan, or Zaire except as pro-
vided through the regular notification procedures of the
Committees on Appropriations.
DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY
SEC. 522. For the purpose of this Act, ‘‘program,
project, and activity’’ shall be defined at the Appropriations
Act account level and shall include all Appropriations and
Authorizations Acts earmarks, ceilings, and limitations
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with the exception that for the following accounts: Economic
Support Fund and Foreign Military Financing Program,
‘‘program, project, and activity’’ shall also be considered
to include country, regional, and central program level
funding within each such account; for the development as-
sistance accounts of the Agency for International Develop-
ment ‘‘program, project, and activity’’ shall also be consid-
ered to include central program level funding, either as (1)
justified to the Congress, or (2) allocated by the executive
branch in accordance with a report, to be provided to the
Committees on Appropriations within thirty days of enact-
ment of this Act, as required by section 653(a) of the For-
eign Assistance Act of 1961.
CHILD SURVIVAL AND AIDS ACTIVITIES
SEC. 523. Up to $8,000,000 of the funds made avail-
able by this Act for assistance for family planning, health,
child survival, and AIDS, may be used to reimburse United
States Government agencies, agencies of State governments,
institutions of higher learning, and private and voluntary
organizations for the full cost of individuals (including for
the personal services of such individuals) detailed or as-
signed to, or contracted by, as the case may be, the Agency
for International Development for the purpose of carrying
out family planning activities, child survival activities and
activities relating to research on, and the treatment and
control of, acquired immune deficiency syndrome in devel-
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oping countries: Provided, That funds appropriated by this
Act that are made available for child survival activities or
activities relating to research on, and the treatment and
control of, acquired immune deficiency syndrome may be
made available notwithstanding any provision of law that
restricts assistance to foreign countries: Provided further,
That funds appropriated by this Act that are made avail-
able for family planning activities may be made available
notwithstanding section 512 of this Act and section 620(q)
of the Foreign Assistance Act of 1961.
PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN
COUNTRIES
SEC. 524. None of the funds appropriated or otherwise
made available pursuant to this Act shall be obligated to
finance indirectly any assistance or reparations to Cuba,
Iraq, Libya, Iran, Syria, North Korea, or the People’s Re-
public of China, unless the President of the United States
certifies that the withholding of these funds is contrary to
the national interest of the United States.
RECIPROCAL LEASING
SEC. 525. Section 61(a) of the Arms Export Control
Act is amended by striking out ‘‘1996’’ and inserting in
lieu thereof ‘‘1997’’.
NOTIFICATION ON EXCESS DEFENSE EQUIPMENT
SEC. 526. Prior to providing excess Department of De-
fense articles in accordance with section 516(a) of the For-
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eign Assistance Act of 1961, the Department of Defense shall
notify the Committees on Appropriations to the same extent
and under the same conditions as are other committees pur-
suant to subsection (c) of that section: Provided, That before
issuing a letter of offer to sell excess defense articles under
the Arms Export Control Act, the Department of Defense
shall notify the Committees on Appropriations in accord-
ance with the regular notification procedures of such Com-
mittees: Provided further, That such Committees shall also
be informed of the original acquisition cost of such defense
articles.
AUTHORIZATION REQUIREMENT
SEC. 527. Funds appropriated by this Act may be obli-
gated and expended notwithstanding section 10 of Public
Law 91–672 and section 15 of the State Department Basic
Authorities Act of 1956.
PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST
COUNTRIES
SEC. 528. (a) Notwithstanding any other provision of
law, funds appropriated for bilateral assistance under any
heading of this Act and funds appropriated under any such
heading in a provision of law enacted prior to enactment
of this Act, shall not be made available to any country
which the President determines—
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(1) grants sanctuary from prosecution to any in-
dividual or group which has committed an act of
international terrorism, or
(2) otherwise supports international terrorism.
(b) The President may waive the application of sub-
section (a) to a country if the President determines that
national security or humanitarian reasons justify such
waiver. The President shall publish each waiver in the Fed-
eral Register and, at least fifteen days before the waiver
takes effect, shall notify the Committees on Appropriations
of the waiver (including the justification for the waiver)
in accordance with the regular notification procedures of
the Committees on Appropriations.
COMMERCIAL LEASING OF DEFENSE ARTICLES
SEC. 529. Notwithstanding any other provision of law,
and subject to the regular notification procedures of the
Committees on Appropriations, the authority of section
23(a) of the Arms Export Control Act may be used to pro-
vide financing to Israel, Egypt and NATO and major non-
NATO allies for the procurement by leasing (including leas-
ing with an option to purchase) of defense articles from
United States commercial suppliers, not including Major
Defense Equipment (other than helicopters and other types
of aircraft having possible civilian application), if the
President determines that there are compelling foreign pol-
icy or national security reasons for those defense articles
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being provided by commercial lease rather than by govern-
ment-to-government sale under such Act.
COMPETITIVE INSURANCE
SEC. 530. All Agency for International Development
contracts and solicitations, and subcontracts entered into
under such contracts, shall include a clause requiring that
United States insurance companies have a fair opportunity
to bid for insurance when such insurance is necessary or
appropriate.
STINGERS IN THE PERSIAN GULF REGION
SEC. 531. Except as provided in section 581 of the For-
eign Operations, Export Financing, and Related Programs
Appropriations Act, 1990, the United States may not sell
or otherwise make available any Stingers to any country
bordering the Persian Gulf under the Arms Export Control
Act or chapter 2 of part II of the Foreign Assistance Act
of 1961.
DEBT-FOR-DEVELOPMENT
SEC. 532. In order to enhance the continued participa-
tion of nongovernmental organizations in economic assist-
ance activities under the Foreign Assistance Act of 1961,
including endowments, debt-for-development and debt-for-
nature exchanges, a nongovernmental organization which
is a grantee or contractor of the Agency for International
Development may place in interest bearing accounts funds
made available under this Act or prior Acts or local cur-
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rencies which accrue to that organization as a result of eco-
nomic assistance provided under title II of this Act and
any interest earned on such investment may be used for
the purpose for which the assistance was provided to that
organization.
COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES
SEC. 533. Direct costs associated with meeting a for-
eign customer’s additional or unique requirements will con-
tinue to be allowable under contracts under section 22(d)
of the Arms Export Control Act. Loadings applicable to
such direct costs shall be permitted at the same rates appli-
cable to procurement of like items purchased by the Depart-
ment of Defense for its own use.
SEPARATE ACCOUNTS
SEC. 534. (a) SEPARATE ACCOUNTS FOR LOCAL CUR-
RENCIES.—(1) If assistance is furnished to the government
of a foreign country under chapters 1 and 10 of part I or
chapter 4 of part II of the Foreign Assistance Act of 1961
under agreements which result in the generation of local
currencies of that country, the Administrator of the Agency
for International Development shall—
(A) require that local currencies be deposited in
a separate account established by that government;
(B) enter into an agreement with that govern-
ment which sets forth—
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(i) the amount of the local currencies to be
generated, and
(ii) the terms and conditions under which
the currencies so deposited may be utilized, con-
sistent with this section; and
(C) establish by agreement with that government
the responsibilities of the Agency for International
Development and that government to monitor and ac-
count for deposits into and disbursements from the
separate account.
(2) USES OF LOCAL CURRENCIES.—As may be agreed
upon with the foreign government, local currencies depos-
ited in a separate account pursuant to subsection (a), or
an equivalent amount of local currencies, shall be used
only—
(A) to carry out chapters 1 or 10 of part I or
chapter 4 of part II (as the case may be), for such
purposes as—
(i) project and sector assistance activities,
or
(ii) debt and deficit financing; or
(B) for the administrative requirements of the
United States Government.
(3) PROGRAMMING ACCOUNTABILITY.—The Agency for
International Development shall take all appropriate steps
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to ensure that the equivalent of the local currencies dis-
bursed pursuant to subsection (a)(2)(A) from the separate
account established pursuant to subsection (a)(1) are used
for the purposes agreed upon pursuant to subsection (a)(2).
(4) TERMINATION OF ASSISTANCE PROGRAMS.—Upon
termination of assistance to a country under chapters 1 or
10 of part I or chapter 4 of part II (as the case may be),
any unencumbered balances of funds which remain in a
separate account established pursuant to subsection (a)
shall be disposed of for such purposes as may be agreed to
by the government of that country and the United States
Government.
(5) CONFORMING AMENDMENTS.—The provisions of
this subsection shall supersede the tenth and eleventh provi-
sos contained under the heading ‘‘Sub-Saharan Africa, De-
velopment Assistance’’ as included in the Foreign Oper-
ations, Export Financing, and Related Programs Appro-
priations Act, 1989 and sections 531(d) and 609 of the For-
eign Assistance Act of 1961.
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—(1)
If assistance is made available to the government of a for-
eign country, under chapters 1 or 10 of part I or chapter
4 of part II of the Foreign Assistance Act of 1961, as cash
transfer assistance or as nonproject sector assistance, that
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country shall be required to maintain such funds in a sepa-
rate account and not commingle them with any other funds.
(2) APPLICABILITY OF OTHER PROVISIONS OF LAW.—
Such funds may be obligated and expended notwithstanding
provisions of law which are inconsistent with the nature
of this assistance including provisions which are referenced
in the Joint Explanatory Statement of the Committee of
Conference accompanying House Joint Resolution 648 (H.
Report No. 98–1159).
(3) NOTIFICATION.—At least fifteen days prior to obli-
gating any such cash transfer or nonproject sector assist-
ance, the President shall submit a notification through the
regular notification procedures of the Committees on Appro-
priations, which shall include a detailed description of how
the funds proposed to be made available will be used, with
a discussion of the United States interests that will be
served by the assistance (including, as appropriate, a de-
scription of the economic policy reforms that will be pro-
moted by such assistance).
(4) EXEMPTION.—Nonproject sector assistance funds
may be exempt from the requirements of subsection (b)(1)
only through the notification procedures of the Committees
on Appropriations.
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COMPENSATION FOR UNITED STATES EXECUTIVE
DIRECTORS TO INTERNATIONAL FINANCIAL INSTITUTIONS
SEC. 535. (a) No funds appropriated by this Act may
be made as payment to any international financial institu-
tion while the United States Executive Director to such in-
stitution is compensated by the institution at a rate which,
together with whatever compensation such Director receives
from the United States, is in excess of the rate provided
for an individual occupying a position at level IV of the
Executive Schedule under section 5315 of title 5, United
States Code, or while any alternate United States Director
to such institution is compensated by the institution at a
rate in excess of the rate provided for an individual occupy-
ing a position at level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(b) For purposes of this section, ‘‘international finan-
cial institutions’’ are: the International Bank for Recon-
struction and Development, the Inter-American Develop-
ment Bank, the Asian Development Bank, the Asian Devel-
opment Fund, the African Development Bank, the African
Development Fund, the International Monetary Fund, the
North American Development Bank, and the European
Bank for Reconstruction and Development.
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COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST
IRAQ
SEC. 536. (a) DENIAL OF ASSISTANCE.—None of the
funds appropriated or otherwise made available pursuant
to this Act to carry out the Foreign Assistance Act of 1961
(including title IV of chapter 2 of part I, relating to the
Overseas Private Investment Corporation) or the Arms Ex-
port Control Act may be used to provide assistance to any
country that is not in compliance with the United Nations
Security Council sanctions against Iraq, Serbia or
Montenegro unless the President determines and so certifies
to the Congress that—
(1) such assistance is in the national interest of
the United States;
(2) such assistance will directly benefit the needy
people in that country; or
(3) the assistance to be provided will be humani-
tarian assistance for foreign nationals who have fled
Iraq and Kuwait.
(b) IMPORT SANCTIONS.—If the President considers
that the taking of such action would promote the effective-
ness of the economic sanctions of the United Nations and
the United States imposed with respect to Iraq, Serbia, or
Montenegro, as the case may be, and is consistent with the
national interest, the President may prohibit, for such a
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period of time as he considers appropriate, the importation
into the United States of any or all products of any foreign
country that has not prohibited—
(1) the importation of products of Iraq, Serbia,
or Montenegro into its customs territory, and
(2) the export of its products to Iraq, Serbia, or
Montenegro, as the case may be.
POW/MIA MILITARY DRAWDOWN
SEC. 537. (a) Notwithstanding any other provision of
law, the President may direct the drawdown, without reim-
bursement by the recipient, of defense articles from the
stocks of the Department of Defense, defense services of the
Department of Defense, and military education and train-
ing, of an aggregate value not to exceed $15,000,000 in fis-
cal year 1997, as may be necessary to carry out subsection
(b).
(b) Such defense articles, services and training may
be provided to Vietnam, Cambodia and Laos, under sub-
section (a) as the President determines are necessary to sup-
port efforts to locate and repatriate members of the United
States Armed Forces and civilians employed directly or in-
directly by the United States Government who remain un-
accounted for from the Vietnam War, and to ensure the safe-
ty of United States Government personnel engaged in such
cooperative efforts and to support United States Depart-
ment of Defense-sponsored humanitarian projects associated
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with the POW/MIA efforts. Any aircraft shall be provided
under this section only to Laos and only on a lease or loan
basis, but may be provided at no cost notwithstanding sec-
tion 61 of the Arms Export Control Act and may be main-
tained with defense articles, services and training provided
under this section.
(c) The President shall, within sixty days of the end
of any fiscal year in which the authority of subsection (a)
is exercised, submit a report to the Congress which identifies
the articles, services, and training drawn down under this
section.
MEDITERRANEAN EXCESS DEFENSE ARTICLES
SEC. 538. For the four year period beginning on Octo-
ber 1, 1996, the President shall ensure that excess defense
articles will be made available under section 516 and 519
of the Foreign Assistance Act of 1961 consistent with the
manner in which the President made available excess de-
fense articles under those sections during the four year pe-
riod that began on October 1, 1992, pursuant to section
573(e) of the Foreign Operations, Export Financing, Relat-
ed Programs Appropriations Act, 1990.
CASH FLOW FINANCING
SEC. 539. For each country that has been approved
for cash flow financing (as defined in section 25(d) of the
Arms Export Control Act, as added by section 112(b) of
Public Law 99–83) under the Foreign Military Financing
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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 through the regular notification proce-
dures to the Committees on Appropriations.
AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMER-
ICAN FOUNDATION AND THE AFRICAN DEVELOPMENT
FOUNDATION
SEC. 540. Unless expressly provided to the contrary,
provisions of this or any other Act, including provisions
contained in prior Acts authorizing or making appropria-
tions for foreign operations, export financing, and related
programs, shall not be construed to prohibit activities au-
thorized by or conducted under the Peace Corps Act, the
Inter-American Foundation Act, or the African Develop-
ment Foundation Act. The appropriate agency shall
promptly report to the Committees on Appropriations
whenever it is conducting activities or is proposing to con-
duct activities in a country for which assistance is prohib-
ited.
IMPACT ON JOBS IN THE UNITED STATES
SEC. 541. None of the funds appropriated by this Act
may be obligated or expended to provide—
(a) any financial incentive to a business enter-
prise currently located in the United States for the
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purpose of inducing such an enterprise to relocate
outside the United States if such incentive or induce-
ment is likely to reduce the number of employees of
such business enterprise in the United States because
United States production is being replaced by such
enterprise outside the United States;
(b) assistance for the purpose of establishing or
developing in a foreign country any export processing
zone or designated area in which the tax, tariff, labor,
environment, and safety laws of that country do not
apply, in part or in whole, to activities carried out
within that zone or area, unless the President deter-
mines and certifies that such assistance is not likely
to cause a loss of jobs within the United States; or
(c) assistance for any project or activity that
contributes to the violation of internationally recog-
nized workers rights, as defined in section 502(a)(4)
of the Trade Act of 1974, of workers in the recipient
country, including any designated zone or area in
that country: Provided, That in recognition that the
application of this subsection should be commensurate
with the level of development of the recipient country
and sector, the provisions of this subsection shall not
preclude assistance for the informal sector in such
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country, micro and small-scale enterprise, and
smallholder agriculture.
AUTHORITY TO ASSIST BOSNIA AND HERZEGOVINA
SEC. 542. (a) The President is authorized to direct the
transfer, subject to prior notification of the Committees on
Appropriations, to the government of Bosnia and
Herzegovina, without reimbursement, of defense articles
from the stocks of the Department of Defense and defense
services of the Department of Defense of an aggregate value
of not to exceed $100,000,000 in fiscal years 1996 and 1997:
Provided, That the President certifies in a timely fashion
to the Congress that the transfer of such articles would assist
that nation in self-defense and thereby promote the security
and stability of the region.
(b) Within 60 days of any transfer under the authority
provided in subsection (a), and every 60 days thereafter,
the President shall report in writing to the Speaker of the
House of Representatives and the President pro tempore of
the Senate concerning the articles transferred and the dis-
position thereof.
(c) There are authorized to be appropriated to the
President such sums as may be necessary to reimburse the
applicable appropriation, fund, or account for defense arti-
cles provided under this section.
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RESTRICTIONS ON THE TERMINATION OF SANCTIONS
AGAINST SERBIA AND MONTENEGRO
SEC. 543. (a) RESTRICTIONS.—Notwithstanding any
other provision of law, no sanction, prohibition, or require-
ment described in section 1511 of the National Defense Au-
thorization Act for Fiscal Year 1994 (Public Law 103–160),
with respect to Serbia or Montenegro, may cease to be effec-
tive, unless—
(1) the President first submits to the Congress a
certification described in subsection (b); and
(2) the requirements of section 1511 of that Act
are met.
(b) CERTIFICATION.—A certification described in this
subsection is a certification that—
(1) there is substantial progress toward—
(A) the realization of a separate identity for
Kosova and the right of the people of Kosova to
govern themselves; or
(B) the creation of an international protec-
torate for Kosova;
(2) there is substantial improvement in the
human rights situation in Kosova;
(3) international human rights observers are al-
lowed to return to Kosova; and
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(4) the elected government of Kosova is permitted
to meet and carry out its legitimate mandate as elect-
ed representatives of the people of Kosova.
(c) WAIVER AUTHORITY.—The President may waive
the application in whole or in part, of subsection (a) if the
President certifies to the Congress that the President has
determined that the waiver is necessary to meet emergency
humanitarian needs or to achieve a negotiated settlement
of the conflict in Bosnia-Herzegovina that is acceptable to
the parties.
SPECIAL AUTHORITIES
SEC. 544. (a) Funds appropriated in title II of this
Act that are made available for Afghanistan, Lebanon, and
Cambodia, and for victims of war, displaced children, dis-
placed Burmese, humanitarian assistance for Romania,
and humanitarian assistance for the peoples of Bosnia and
Herzegovina, Croatia, and Kosova, may be made available
notwithstanding any other provision of law: Provided, That
any such funds that are made available for Cambodia shall
be subject to the provisions of section 531(e) of the Foreign
Assistance Act of 1961 and section 906 of the International
Security and Development Cooperation Act of 1985: Pro-
vided further, That none of the funds appropriated by this
Act may be made available, and funds previously obligated
may not be expended, for assistance for any country or or-
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ganization that the Secretary of State determines is cooper-
ating, tactically or strategically, with the Khmer Rouge in
their military operations, or to the military of any country
that is not acting vigorously to prevent its members from
facilitating the export of timber from Cambodia by the
Khmer Rouge: Provided further, That the Secretary of State
shall submit reports to the Committees on Appropriations
on February 15, 1997 and September 15, 1997, on whether
there are any countries, organizations, or militaries for
which assistance is prohibited under the previous proviso,
the basis for such conclusions and, if appropriate, the steps
being taken to terminate assistance.
(b) Funds appropriated by this Act to carry out the
provisions of sections 103 through 106 of the Foreign Assist-
ance Act of 1961 may be used, notwithstanding any other
provision of law, for the purpose of supporting tropical for-
estry and energy programs aimed at reducing emissions of
greenhouse gases, and for the purpose of supporting bio-
diversity conservation activities: Provided, That such as-
sistance shall be subject to sections 116, 502B, and 620A
of the Foreign Assistance Act of 1961.
(c) During fiscal year 1997, the President may use up
to $40,000,000 under the authority of section 451 of the
Foreign Assistance Act of 1961, notwithstanding the fund-
ing ceiling contained in subsection (a) of that section.
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(d) The Agency for International Development may
employ personal services contractors, notwithstanding any
other provision of law, for the purpose of administering pro-
grams for the West Bank and Gaza.
POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT OF
ISRAEL
SEC. 545. It is the sense of the Congress that—
(1) the Arab League countries should imme-
diately and publicly renounce the primary boycott of
Israel and the secondary and tertiary boycott of
American firms that have commercial ties with Israel;
and
(2) the President should—
(A) take more concrete steps to encourage
vigorously Arab League countries to renounce
publicly the primary boycotts of Israel and the
secondary and tertiary boycotts of American
firms that have commercial relations with Israel
as a confidence-building measure;
(B) take into consideration the participa-
tion of any recipient country in the primary
boycott of Israel and the secondary and tertiary
boycotts of American firms that have commercial
relations with Israel when determining whether
to sell weapons to said country;
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(C) report to Congress on the specific steps
being taken by the President to bring about a
public renunciation of the Arab primary boycott
of Israel and the secondary and tertiary boycotts
of American firms that have commercial rela-
tions with Israel; and
(D) encourage the allies and trading part-
ners of the United States to enact laws prohibit-
ing businesses from complying with the boycott
and penalizing businesses that do comply.
ANTI-NARCOTICS ACTIVITIES
SEC. 546. (a) Of the funds appropriated or otherwise
made available by this Act for ‘‘Economic Support Fund’’,
assistance may be provided to strengthen the administra-
tion of justice in countries in Latin America and the Carib-
bean in accordance with the provisions of section 534 of
the Foreign Assistance Act of 1961, except that programs
to enhance protection of participants in judicial cases may
be conducted notwithstanding section 660 of that Act.
(b) Funds made available pursuant to this section may
be made available notwithstanding the third sentence of sec-
tion 534(e) of the Foreign Assistance Act of 1961. Funds
made available pursuant to subsection (a) for Bolivia, Co-
lombia and Peru may be made available notwithstanding
section 534(c) and the second sentence of section 534(e) of
the Foreign Assistance Act of 1961.
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ELIGIBILITY FOR ASSISTANCE
SEC. 547. (a) ASSISTANCE THROUGH NONGOVERN-
MENTAL ORGANIZATIONS.—Restrictions contained in this
or any other Act with respect to assistance for a country
shall not be construed to restrict assistance in support of
programs of nongovernmental organizations from funds ap-
propriated by this Act to carry out the provisions of chap-
ters 1 and 10 of part I of the Foreign Assistance Act of
1961: Provided, That the President shall take into consider-
ation, in any case in which a restriction on assistance
would be applicable but for this subsection, whether assist-
ance in support of programs of nongovernmental organiza-
tions is in the national interest of the United States: Pro-
vided further, That before using the authority of this sub-
section to furnish assistance in support of programs of non-
governmental organizations, the President shall notify the
Committees on Appropriations under the regular notifica-
tion procedures of those committees, including a description
of the program to be assisted, the assistance to be provided,
and the reasons for furnishing such assistance: Provided
further, That nothing in this subsection shall be construed
to alter any existing statutory prohibitions against abortion
or involuntary sterilizations contained in this or any other
Act.
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(b) PUBLIC LAW 480.—During fiscal year 1997, re-
strictions contained in this or any other Act with respect
to assistance for a country shall not be construed to restrict
assistance under the Agricultural Trade Development and
Assistance Act of 1954: Provided, That none of the funds
appropriated to carry out title I of such Act and made
available pursuant to this subsection may be obligated or
expended except as provided through the regular notifica-
tion procedures of the Committees on Appropriations.
(c) EXCEPTION.—This section shall not apply—
(1) with respect to section 620A of the Foreign
Assistance Act or any comparable provision of law
prohibiting assistance to countries that support inter-
national terrorism; or
(2) with respect to section 116 of the Foreign As-
sistance Act of 1961 or any comparable provision of
law prohibiting assistance to countries that violate
internationally recognized human rights.
EARMARKS
SEC. 548. (a) Funds appropriated by this Act which
are earmarked may be reprogrammed for other programs
within the same account notwithstanding the earmark if
compliance with the earmark is made impossible by oper-
ation of any provision of this or any other Act or, with
respect to a country with which the United States has an
agreement providing the United States with base rights or
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base access in that country, if the President determines that
the recipient for which funds are earmarked has signifi-
cantly reduced its military or economic cooperation with
the United States since enactment of the Foreign Oper-
ations, Export Financing, and Related Programs Appro-
priations Act, 1991; however, before exercising the authority
of this subsection with regard to a base rights or base access
country which has significantly reduced its military or eco-
nomic cooperation with the United States, the President
shall consult with, and shall provide a written policy jus-
tification to the Committees on Appropriations: Provided,
That any such reprogramming shall be subject to the regu-
lar notification procedures of the Committees on Appropria-
tions: Provided further, That assistance that is repro-
grammed pursuant to this subsection shall be made avail-
able under the same terms and conditions as originally pro-
vided.
(b) In addition to the authority contained in sub-
section (a), the original period of availability of funds ap-
propriated by this Act and administered by the Agency for
International Development that are earmarked for particu-
lar programs or activities by this or any other Act shall
be extended for an additional fiscal year if the Adminis-
trator of such agency determines and reports promptly to
the Committees on Appropriations that the termination of
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assistance to a country or a significant change in cir-
cumstances makes it unlikely that such earmarked funds
can be obligated during the original period of availability:
Provided, That such earmarked funds that are continued
available for an additional fiscal year shall be obligated
only for the purpose of such earmark.
CEILINGS AND EARMARKS
SEC. 549. Ceilings and earmarks contained in this Act
shall not be applicable to funds or authorities appropriated
or otherwise made available by any subsequent Act unless
such Act specifically so directs.
EXCESS DEFENSE ARTICLES
SEC. 550. (a) During fiscal year 1997, the authority
of section 519 of the Foreign Assistance Act of 1961, as
amended, may be used to provide nonlethal excess defense
articles to countries for which United States foreign assist-
ance has been requested and for which receipt of such arti-
cles was separately justified for the fiscal year, without re-
gard to the restrictions in subsection (a) of section 519.
(b) During fiscal year 1997, the authority of section
516 of the Foreign Assistance Act of 1961, as amended, may
be used to provide defense articles to Jordan, Tunisia, Esto-
nia, Latvia, Lithuania, and to countries eligible to partici-
pate in the Partnership for Peace and to receive assistance
under Public Law 101–179: Provided, That not later than
May 1, 1997, the Secretary of State shall submit a report
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to the Committees on Appropriations describing actions by
the Government of Tunisia during the previous six months
to improve respect for civil liberties and promote the inde-
pendence of the judiciary.
(c) Section 516(f) of the Foreign Assistance Act of
1961, as amended, is repealed.
(d) Section 31(d) of the Arms Export Control Act is
amended by deleting the words ‘‘or pursuant to sales under
this Act’’.
PROHIBITION ON PUBLICITY OR PROPAGANDA
SEC. 551. No part of any appropriation contained in
this Act shall be used for publicity or propaganda purposes
within the United States not authorized before the date of
enactment of this Act by the Congress: Provided, That not
to exceed $750,000 may be made available to carry out the
provisions of section 316 of Public Law 96–533.
USE OF AMERICAN RESOURCES
SEC. 552. To the maximum extent possible, assistance
provided under this Act should make full use of American
resources, including commodities, products, and services.
PROHIBITION OF PAYMENTS TO UNITED NATIONS MEMBERS
SEC. 553. None of the funds appropriated or made
available pursuant to this Act for carrying out the Foreign
Assistance Act of 1961, may be used to pay in whole or
in part any assessments, arrearages, or dues of any member
of the United Nations.
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CONSULTING SERVICES
SEC. 554. The expenditure of any appropriation under
this Act for any consulting service through procurement
contract, pursuant to section 3109 of title 5, United States
Code, shall be limited to those contracts where such expendi-
tures are a matter of public record and available for public
inspection, except where otherwise provided under existing
law, or under existing Executive order pursuant to existing
law.
PRIVATE VOLUNTARY ORGANIZATIONS—DOCUMENTATION
SEC. 555. None of the funds appropriated or made
available pursuant to this Act shall be available to a private
voluntary organization which fails to provide upon timely
request any document, file, or record necessary to the audit-
ing requirements of the Agency for International Develop-
ment.
PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS
THAT
EXPORT
LETHAL
MILITARY
EQUIPMENT
TO
COUNTRIES SUPPORTING INTERNATIONAL TERRORISM
SEC. 556. (a) None of the funds appropriated or other-
wise made available by this Act may be available to any
foreign government which provides lethal military equip-
ment to a country the government of which the Secretary
of State has determined is a terrorist government for pur-
poses of section 40(d) of the Arms Export Control Act. The
prohibition under this section with respect to a foreign gov-
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ernment shall terminate 12 months after that government
ceases to provide such military equipment. This section ap-
plies with respect to lethal military equipment provided
under a contract entered into after the date of enactment
of this Act.
(b) Assistance restricted by subsection (a) or any other
similar provision of law, may be furnished if the President
determines that furnishing such assistance is important to
the national interests of the United States.
(c) Whenever the waiver of subsection (b) is exercised,
the President shall submit to the appropriate congressional
committees a report with respect to the furnishing of such
assistance. Any such report shall include a detailed expla-
nation of the assistance to be provided, including the esti-
mated dollar amount of such assistance, and an expla-
nation of how the assistance furthers United States national
interests.
WITHHOLDING OF ASSISTANCE FOR PARKING FINES OWED
BY FOREIGN COUNTRIES
SEC. 557. (a) IN GENERAL.—Of the funds made avail-
able for a foreign country under part I of the Foreign As-
sistance Act of 1961, an amount equivalent to 110 percent
of the total unpaid fully adjudicated parking fines and pen-
alties owed to the District of Columbia by such country as
of the date of enactment of this Act shall be withheld from
obligation for such country until the Secretary of State cer-
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tifies and reports in writing to the appropriate congres-
sional committees that such fines and penalties are fully
paid to the government of the District of Columbia.
(b) DEFINITION.—For purposes of this section, the
term ‘‘appropriate congressional committees’’ means the
Committee on Foreign Relations and the Committee on Ap-
propriations of the Senate and the Committee on Inter-
national Relations and the Committee on Appropriations
of the House of Representatives.
LIMITATION ON ASSISTANCE FOR THE PLO FOR THE WEST
BANK AND GAZA
SEC. 558. None of the funds appropriated by this Act
may be obligated for assistance for the Palestine Liberation
Organization for the West Bank and Gaza unless the Presi-
dent has exercised the authority under section 604(a) of the
Middle East Peace Facilitation Act of 1995 (title VI of Pub-
lic Law 104–107) or any other legislation to suspend or
make inapplicable section 307 of the Foreign Assistance Act
of 1961 and that suspension is still in effect: Provided, That
if the President fails to make the certification under section
604(b)(2) of the Middle East Peace Facilitation Act of 1995
or to suspend the prohibition under other legislation, funds
appropriated by this Act may not be obligated for assistance
for the Palestine Liberation Organization for the West Bank
and Gaza.
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EXPORT FINANCING TRANSFER AUTHORITIES
SEC. 559. Not to exceed 5 percent of any appropriation
other than for administrative expenses made available for
fiscal year 1997 for programs under title I of this Act may
be transferred between such appropriations for use for any
of the purposes, programs and activities for which the funds
in such receiving account may be used, but no such appro-
priation, except as otherwise specifically provided, shall be
increased by more than 25 percent by any such transfer:
Provided, That the exercise of such authority shall be subject
to the regular notification procedures of the Committees on
Appropriations.
WAR CRIMES TRIBUNALS
SEC. 560. If the President determines that doing so
will contribute to a just resolution of charges regarding
genocide or other violations of international humanitarian
law, the authority of section 552(c) of the Foreign Assist-
ance Act of 1961, as amended, may be used to provide up
to $25,000,000 of commodities and services for the United
Nations War Crimes Tribunal established with regard to
the former Yugoslavia by the United Nations Security
Council or such other tribunals or commissions as the Coun-
cil may establish to deal with such violations, without re-
gard to the ceiling limitation contained in paragraph (2)
thereof: Provided, That the determination required under
this section shall be in lieu of any determinations otherwise
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required under section 552(c): Provided further, That 60
days after the date of enactment of this Act, and every 180
days thereafter, the Secretary of State shall submit a report
to the Committees on Appropriations describing the steps
the United States Government is taking to collect informa-
tion and intelligence regarding allegations of genocide or
other violations of international law in the former Yugo-
slavia and to furnish that information to the United Na-
tions War Crimes Tribunal for the former Yugoslavia.
TRANSPORTATION OF EXCESS DEFENSE ARTICLES
SEC. 561. Notwithstanding section 519(f) of the For-
eign Assistance Act of 1961, during fiscal year 1997, funds
available to the Department of Defense may be expended
for crating, packing, handling and transportation of excess
defense articles transferred under the authority of sections
516 and 519 to countries eligible to participate in the Part-
nership for Peace and to receive assistance under Public
Law 101–179.
LANDMINES
SEC. 562. Notwithstanding any other provision of law,
demining equipment available to any department or agency
and used in support of the clearing of landmines and
unexploded ordnance for humanitarian purposes may be
disposed of on a grant basis in foreign countries, subject
to such terms and conditions as the President may pre-
scribe: Provided, That section 1365(c) of the National De-
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fense Authorization Act for Fiscal Year 1993 (Public Law
102–484; 22 U.S.C., 2778 note) is amended by striking out
‘‘During the five-year period beginning on October 23,
1992’’ and inserting in lieu thereof ‘‘During the eight-year
period beginning on October 23, 1992’’.
RESTRICTIONS CONCERNING THE PALESTINIAN AUTHORITY
SEC. 563. None of the funds appropriated by this Act
may be obligated or expended to create in any part of Jeru-
salem a new office of any department or agency of the Unit-
ed States Government for the purpose of conducting official
United States Government business with the Palestinian
Authority over Gaza and Jericho or any successor Palestin-
ian governing entity provided for in the Israel-PLO Dec-
laration of Principles: Provided, That this restriction shall
not apply to the acquisition of additional space for the ex-
isting Consulate General in Jerusalem: Provided further,
That meetings between officers and employees of the United
States and officials of the Palestinian Authority, or any
successor Palestinian governing entity provided for in the
Israel-PLO Declaration of Principles, for the purpose of
conducting official United States Government business with
such authority should continue to take place in locations
other than Jerusalem. As has been true in the past, officers
and employees of the United States Government may con-
tinue to meet in Jerusalem on other subjects with Palestin-
ians (including those who now occupy positions in the Pal-
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estinian Authority), have social contacts, and have inciden-
tal discussions.
PROHIBITION OF PAYMENT OF CERTAIN EXPENSES
SEC. 564. None of the funds appropriated or otherwise
made available by this Act under the heading ‘‘INTER-
NATIONAL MILITARY EDUCATION AND TRAINING’’ or ‘‘FOR-
EIGN MILITARY FINANCING PROGRAM’’ for Informational
Program activities may be obligated or expended to pay
for—
(1) alcoholic beverages;
(2) food (other than food provided at a military
installation) not provided in conjunction with Infor-
mational Program trips where students do not stay at
a military installation; or
(3) entertainment expenses for activities that are
substantially of a recreational character, including
entrance fees at sporting events and amusement
parks.
HUMANITARIAN ASSISTANCE
SEC. 565. The Foreign Assistance Act of 1961 is
amended by adding immediately after section 620H the fol-
lowing new section:
‘‘SEC. 620I. PROHIBITION ON ASSISTANCE TO COUN-
TRIES THAT RESTRICT UNITED STATES HUMANITARIAN
ASSISTANCE.—
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‘‘(a) IN GENERAL.—No assistance shall be fur-
nished under this Act or the Arms Export Control Act
to any country when it is made known to the Presi-
dent that the government of such country prohibits or
otherwise restricts, directly or indirectly, the trans-
port or delivery of United States humanitarian as-
sistance.
‘‘(b) EXCEPTION.—Assistance may be furnished
without regard to the restriction in subsection (a) if
the President determines that to do so is in the na-
tional security interest of the United States.’’.
PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS
SEC. 566. (a) SENSE OF CONGRESS.—It is the sense
of the Congress that, to the greatest extent practicable, all
equipment and products purchased with funds made avail-
able in this Act should be American-made.
(b) NOTICE REQUIREMENT.—In providing financial
assistance to, or entering into any contract with, any entity
using funds made available in this Act, the head of each
Federal agency, to the greatest extent practicable, shall pro-
vide to such entity a notice describing the statement made
in subsection (a) by the Congress.
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LIMITATION OF FUNDS FOR NORTH AMERICAN
DEVELOPMENT BANK
SEC. 567. None of the funds appropriated in this Act
under the heading ‘‘North American Development Bank’’
and made available for the Community Adjustment and In-
vestment Program shall be used for purposes other than
those set out in the binational agreement establishing the
Bank.
POLICY TOWARD BURMA
SEC. 568. (a) Until such time as the President deter-
mines and certifies to Congress that Burma has made meas-
urable and substantial progress in improving human rights
practices and implementing democratic government, the fol-
lowing sanctions shall be imposed on Burma:
(1) BILATERAL ASSISTANCE.—There shall be no
United States assistance to the Government of
Burma, other than:
(A) humanitarian assistance,
(B) 
counter-narcotics 
assistance 
under
chapter 8 of part I of the Foreign Assistance Act
of 1961, or crop substitution assistance, if the
Secretary of State certifies to the appropriate
congressional committees that—
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(i) the Government of Burma is fully
cooperating with United States counter-nar-
cotics efforts, and
(ii) the programs are fully consistent
with United States human rights concerns
in Burma and serve the United States na-
tional interest, and
(C) assistance promoting human rights and
democratic values.
(2) MULTILATERAL ASSISTANCE.—The Secretary
of the Treasury shall instruct the United States execu-
tive director of each international financial institu-
tion to vote against any loan or other utilization of
funds of the respective bank to or for Burma.
(3) VISAS.—Except as required by treaty obliga-
tions or to staff the Burmese mission to the United
States, the United States shall not grant entry visas
to any Burmese government official.
(b) CONDITIONAL SANCTIONS.—The President shall
prohibit United States persons from new investment in
Burma, if the President determines and certifies to Congress
that, after the date of enactment of this Act, the Government
of Burma has physically harmed, rearrested for political
acts, or exiled Daw Aung San Suu Kyi or has committed
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large-scale repression of or violence against the Democratic
opposition.
(c) MULTILATERAL STRATEGY.—The President shall
seek to develop, in coordination with members of ASEAN
and other countries having major trading and investment
interests in Burma, a comprehensive, multilateral strategy
to bring democracy to and improve human rights practices
and the quality of life in Burma, including the development
of a dialogue between the State Law and Order Restoration
Council (SLORC) and democratic opposition groups within
Burma.
(d) PRESIDENTIAL REPORTS.—Every six months fol-
lowing the enactment of this Act, the President shall report
to the Chairmen of the Committee on Foreign Relations,
the Committee on International Relations and the House
and Senate Appropriations Committees on the following:
(1) progress toward democratization in Burma;
(2) progress on improving the quality of life of
the Burmese people, including progress on market re-
forms, living standards, labor standards, use of forced
labor in the tourism industry, and environmental
quality; and
(3) progress made in developing the strategy re-
ferred to in subsection (c).
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(e) WAIVER AUTHORITY.—The President shall have the
authority to waive, temporarily or permanently, any sanc-
tion referred to in subsection (a) or subsection (b) if he de-
termines and certifies to Congress that the application of
such sanction would be contrary to the national security
interests of the United States.
(f) DEFINITIONS.—
(1) The term ‘‘international financial institu-
tions’’ shall include the International Bank for Re-
construction and Development, the International De-
velopment Association, the International Finance
Corporation, the Multilateral Investment Guarantee
Agency, the Asian Development Bank, and the Inter-
national Monetary Fund.
(2) The term ‘‘new investment’’ shall mean any
of the following activities if such an activity is under-
taken pursuant to an agreement, or pursuant to the
exercise of rights under such an agreement, that is en-
tered into with the Government of Burma or a non-
governmental entity in Burma, on or after the date
of the certification under subsection (b):
(A) the entry into a contract that includes
the economical development of resources located
in Burma, or the entry into a contract providing
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for the general supervision and guarantee of an-
other person’s performance of such a contract;
(B) the purchase of a share of ownership,
including an equity interest, in that develop-
ment;
(C) the entry into a contract providing for
the participation in royalties, earnings, or prof-
its in that development, without regard to the
form of the participation:
Provided, That the term ‘‘new investment’’ does not
include the entry into, performance of, or financing
of a contract to sell or purchase goods, services, or
technology.
REPORTS ON THE SITUATION IN BURMA
SEC. 569. (a) LABOR PRACTICES.—Not later than 90
days after the date of the enactment of this Act, the Sec-
retary of Labor, in consultation with the Secretary of State,
shall submit a report to the appropriate congressional com-
mittees on—
(1) Burma’s compliance with international labor
standards including, but not limited to, the use of
forced labor, slave labor, and involuntary prison labor
by the junta;
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(2) the degree to which foreign investment in
Burma contributes to violations of fundamental work-
er rights;
(3) labor practices in support of Burma’s foreign
tourist industry; and
(4) efforts by the United States to end violations
of fundamental labor rights in Burma.
(b) DEFINITION.—As used in this section, the term
‘‘appropriate congressional committees’’ means the Com-
mittee on Appropriations and the Committee on Foreign
Relations of the Senate and the Committee on Appropria-
tions and the Committee on International Relations of the
House of Representatives.
(c) FUNDING.—(1) There are hereby appropriated, out
of any money in the Treasury not otherwise appropriated,
for the fiscal year ending September 30, 1997, for expenses
necessary to carry out the provisions of this section, $30,000
to the Department of Labor.
(2) The amount appropriated by this Act under the
heading ‘‘DEPARTMENT OF STATE, INTERNATIONAL NAR-
COTICS CONTROL’’ shall be reduced by $30,000.
SPECIAL DEBT RELIEF FOR THE POOREST
SEC. 570. (a) AUTHORITY TO REDUCE DEBT.—The
President may reduce amounts owed to the United States
(or any agency of the United States) by an eligible country
as a result of—
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(1) guarantees issued under sections 221 and 222
of the Foreign Assistance Act of 1961; or
(2) credits extended or guarantees issued under
the Arms Export Control Act.
(b) LIMITATIONS.—
(1) The authority provided by subsection (a)
may be exercised only to implement multilateral offi-
cial debt relief and referendum agreements, commonly
referred to as ‘‘Paris Club Agreed Minutes’’.
(2) The authority provided by subsection (a)
may be exercised only in such amounts or to such ex-
tent as is provided in advance by appropriations
Acts.
(3) The authority provided by subsection (a)
may be exercised only with respect to countries with
heavy debt burdens that are eligible to borrow from
the International Development Association, but not
from the International Bank for Reconstruction and
Development, commonly referred to as ‘‘IDA-only’’
countries.
(c) CONDITIONS.—The authority provided by sub-
section (a) may be exercised only with respect to a country
whose government—
(1) does not have an excessive level of military
expenditures;
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(2) has not repeatedly provided support for acts
of international terrorism;
(3) is not failing to cooperate on international
narcotics control matters;
(4) (including its military or other security
forces) does not engage in a consistent pattern of gross
violations of internationally recognized human rights;
and
(5) is not ineligible for assistance because of the
application of section 527 of the Foreign Relations
Authorization Act, fiscal years 1994 and 1995.
(d) AVAILABILITY OF FUNDS.—The authority provided
by subsection (a) may be used only with regard to funds
appropriated by this Act under the heading ‘‘Debt restruc-
turing’’.
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduc-
tion of debt pursuant to subsection (a) shall not be consid-
ered assistance for purposes of any provision of law limit-
ing assistance to a country. The authority provided by sub-
section (a) may be exercised notwithstanding section 620(r)
of the Foreign Assistance Act of 1961.
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES
SEC. 571. (a) LOANS ELIGIBLE FOR SALE, REDUC-
TION, OR CANCELLATION.—
(1) AUTHORITY TO SELL, REDUCE, OR CANCEL
CERTAIN LOANS.—Notwithstanding any other provi-
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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 the Foreign Assistance Act
of 1961, to the government of any eligible country as
defined in section 702(6) of that Act or on receipt of
payment from an eligible purchaser, 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 that link con-
servation and sustainable use of natural re-
sources with local community development, and
child survival and other child development, in a
manner consistent with sections 707 through 710
of the Foreign Assistance Act of 1961, if the sale,
reduction, or cancellation would not contravene