their participation in capital projects described in sub-
section (b). A fee shall be charged for each such guarantee
issued in an amount to be determined by the Director.
‘‘(e) PROCUREMENT FROM THE UNITED STATES.—
Guarantees and other financial support provided for cap-
ital projects under this section shall be provided for pro-
curement of goods and services from the United States
to the maximum extent possible, consistent with the guide-
lines of the Organization for Economic Cooperation and
Development.
‘‘(f) 
PROJECTS
TO
BE
DEVELOPMENTALLY
SOUND.—The Director, in coordination with the appro-
priate other members of the Trade Promotion Coordina-
tion Committee, shall ensure that each capital project for
which TDA provides financial support is developmentally
sound, as determined under the criteria developed by the
Development Assistance Committee of the Organization
for Economic Cooperation and Development.
‘‘(g) COORDINATION.—The President shall utilize the
existing interagency coordinating mechanism to coordinate
activities under this section with other relevant activities
of the United States Government.
‘‘(h) NONAPPLICABILITY OF OTHER PROVISIONS.—
Any funds used for purposes of this section may be used
notwithstanding any other provision of law.
‘‘(i) REPORT TO CONGRESS.—Not later than 1 year
after the date of enactment of this section, the Director
shall submit to the Congress a report describing—
‘‘(1) the extent to which United States Govern-
ment resources have been expended specifically to
support the capitol projects described in subsection
(b);
‘‘(2) the extent to which the activities of the
United States Government have been coordinated
pursuant to subsection (g); and
‘‘(3) the feasibility of establishing a permanent
program modeled on the pilot program establishment
pursuant to this section.
‘‘(j) FUNDING.—
‘‘(1) IN GENERAL.—Notwithstanding the per-
centage limitations in section 610(a), the President
shall transfer $300,000,000 of funds specified in
paragraph (2) to TDA for use in carrying out this
section, including the cost (as defined in section
502(5) of the Federal Credit Reform Act of 1990)
of guarantees issued under subsection (d).
‘‘(2) SOURCE OF FUNDS.—The funds specified
in this paragraph are—
‘‘(A) funds made available for fiscal year
1994 for assistance under chapter 4 of part II
of this Act (relating to the economic support
fund), excluding funds made available pursuant
to subsections (a)(1), (c), and (d) of section
317 of the Foreign Assistance Authorization
Act of 1993;
‘‘(B) funds made available for fiscal year
1994 for assistance under chapter 11 of part I
of this Act (relating to assistance for the inde-
pendent states of the former Soviet Union); and
‘‘(C) funds made available for fiscal year
1994 for assistance under the Support for East
European Democracy (SEED) Act of 1989.
‘‘(3) FUNDS TO BE USED TO SUPPORT CAPITAL
PROJECTS
IN
COUNTRIES
FOR
WHICH
ORIGINAL
FUNDING WAS PROVIDED.—(A) Any funds described
in paragraph (2)(A) that are earmarked by the Con-
gress for a specific country and that are transferred
pursuant to paragraph (1) shall be used to support
capital projects in that country.
‘‘(B) Any funds described in paragraph (2)(B)
that are transferred pursuant to paragraph (1) shall
be used to support capital projects in countries eligi-
ble for assistance under chapter 11 of part I of this
Act.
‘‘(C) Any funds described in paragraph (2)(C)
that are transferred pursuant to paragraph (1) shall
be used to support capital projects in countries eligi-
ble for assistance under the Support for East Euro-
pean Democracy (SEED) Act of 1989.
‘‘(k) DEFINITIONS.—As used in this section—
‘‘(1) the term ‘capital projects’ means a project
involving the construction, expansion, alteration of,
or the acquisition of equipment for, a physical facil-
ity or physical infrastructure, including related engi-
neering design (concept and detail) and other serv-
ices, the procurement of equipment (including any
related services), and feasibility studies or similar
engineering and economic services;
‘‘(2) the term ‘Director’ means the Director of
TDA; and
‘‘(3) the term ‘TDA’ means the Trade and De-
velopment Agency.’’.
SEC. 506. MICROENTERPRISE DEVELOPMENT.
Chapter 2 of part I of the Foreign Assistance Act
of 1961 is amended by adding after title V the following:
‘‘TITLE VI—MICROENTERPRISE DEVELOPMENT
‘‘SEC. 251. MICROENTERPRISE DEVELOPMENT.
‘‘(a) CENTRALLY-MANAGED FUND.—
‘‘(1) ESTABLISHMENT
AND
MANAGEMENT.—
The administrator of the agency primarily respon-
sible for administering this part shall establish with-
in the agency a centrally-managed fund to be known
as the Microenterprise Development Fund (herein-
after in this section referred to as the ‘Fund’). The
Fund shall be managed by the office in that agency
that has primary responsibility for working with pri-
vate and voluntary organizations.
‘‘(2) DISBURSEMENTS THROUGH THE FUND.—
All funds made available to carry out this part that
are used to promote microenterprise development
shall be disbursed through the Fund.
‘‘(b) ACTIVITIES TO BE SUPPORTED.—The Fund
shall be used to support—
‘‘(1) the institutional development of the orga-
nizations described in subsection (c);
‘‘(2) the provision of microenterprise credit
through the organizations described in subsection
(c); and
‘‘(3) research on microenterprise development
and evaluation of microenterprise activities funded
under this section.
‘‘(c) INTERMEDIARY ORGANIZATIONS.—Funds dis-
bursed through the Fund shall be primarily channeled
through—
‘‘(1) United States and indigenous private and
voluntary organizations,
‘‘(2) United States and indigenous credit union
organizations, and
‘‘(3) other indigenous governmental and non-
governmental organizations,
that have demonstrated a capacity to develop sustainable
microenterprise service institutions.
‘‘(d) ALLOCATION OF FUNDS.—
‘‘(1) 
MICROENTERPRISE
CREDIT.—(A) 
Of
amounts disbursed through the Fund each fiscal
year pursuant to subsection (b)(2), at least 50 per-
cent shall be used for poverty lending. As used in
this paragraph, the term ‘poverty lending’ means a
loan of $300 or less or, in the case of an initial loan,
of $150 or less.
‘‘(B) The administrator of the agency primarily
responsible for administering this part shall seek to
ensure that not less than 60 percent of the borrow-
ers of funds disbursed through the Fund pursuant
to subsection (b)(2) are women.
‘‘(2) RESEARCH AND EVALUATION.—Not more
than 5 percent of funds disbursed through the Fund
each fiscal year may be used for research and eval-
uation activities under subsection (b)(3).’’.
SEC. 507. REPORT ON AID’S IMPLEMENTATION OF AGENDA
21 PRINCIPLES.
Not later than 2 years after the date of enactment
of this Act, the administrator of the agency primarily re-
sponsible for administering part I of the Foreign Assist-
ance Act of 1961 shall submit to the Congress a report
on the incorporation of the Agenda 21 principles of the
United Nations Conference on Environment and Develop-
ment into the foreign assistance activities administered by
that agency.
SEC. 508. AUTHORITY TO PROVIDE RECONSTRUCTION AS-
SISTANCE UNDER INTERNATIONAL DISASTER
ASSISTANCE.
Section 491(b) of the Foreign Assistance Act of 1961
is amended by striking ‘‘disaster relief and rehabilitation’’
and inserting ‘‘disaster relief, rehabilitation, and recon-
struction’’.
SEC. 509. DEOBLIGATION OF CERTAIN UNEXPENDED ECO-
NOMIC ASSISTANCE FUNDS.
Chapter 3 of part III of the Foreign Assistance Act
of 1961 is amended by adding at the end the following:
‘‘SEC. 671. DEOBLIGATION OF CERTAIN UNEXPENDED ECO-
NOMIC ASSISTANCE FUNDS.
‘‘(a) REQUIREMENT TO DEOBLIGATE.—
‘‘(1) ANNUAL DEOBLIGATIONS.—Except as pro-
vided in subsection (b), at the beginning of each fis-
cal year the President shall deobligate and return to
the Treasury any funds described in paragraph (2)
that, as of the end of the preceding fiscal year, have
been obligated for a period of more than 4 years but
have not been expended.
‘‘(2) FUNDS
SUBJECT
TO
REQUIREMENTS.—
Paragraph (1) applies with respect to funds made
available to carry out chapter 1 of part I (relating
to development assistance), chapter 4 of part I (re-
lating to the Multilateral Assistance Initiative for
the Philippines), chapter 10 of part I (relating to
the Development Fund for Africa), chapter 11 of
part I (relating to assistance for the independent
states of the former Soviet Union), or chapter 4 of
part II (relating to the economic support fund) or to
carry out the Support for East European Democracy
(SEED) Act of 1989.
‘‘(b) EXCEPTIONS.—The President, on a case-by-case
basis, may waive the requirement of subsection (a) if the
President determines, and reports to the appropriate con-
gressional committees, that—
‘‘(1) the funds are being used for a construction
or long term participant training project that re-
quires more than 4 years to complete; or
‘‘(2) the funds have not been expended because
of 
unforeseen 
circumstances, 
and 
those 
cir-
cumstances could not have been reasonably foreseen.
‘‘(c) IG COMMENTS ON WAIVERS.—As soon as pos-
sible after submission of a report pursuant to subsection
(b), the Inspector General for the agency primarily respon-
sible for administering part I of this Act shall submit to
the appropriate congressional committees such comments
as the Inspector General considers appropriate with re-
gard to the determination described in that report.
‘‘(d) APPROPRIATE CONGRESSIONAL COMMITTEES.—
As used in this section, the term ‘appropriate congres-
sional committees’ means the Committee on Foreign Af-
fairs and the Committee on Appropriations of the House
of Representatives and the Committee on Foreign Rela-
tions and the Committee on Appropriations of the
Senate.’’.
SEC. 510. PROCUREMENT.
Section 604(a) of the Foreign Assistance Act of 1961
is amended to read as follows:
‘‘(a) LIMITATIONS ON PROCUREMENT OUTSIDE THE
UNITED STATES.—(1) Funds made available for assist-
ance under this Act may be used for procurement outside
the United States only if—
‘‘(A) the funds are used for the procurement of
commodities or services, or defense articles or de-
fense services, in the recipient country or in a devel-
oping country;
‘‘(B) the provision of such assistance requires
commodities or services, or defense articles or de-
fense services, of a type that are not available for
purchase in the United States, the recipient country,
or developing countries; or
‘‘(C) the President determines, on a case-by-
case basis, that procurement in a country other than
the United States, the recipient country, or a devel-
oping country is necessary to meet unforeseen cir-
cumstances, such as emergency situations, where it
is important to permit procurement in such other
country.
‘‘(2) For purposes of this section, the term ‘develop-
ing country’ shall not include advanced developing coun-
tries.’’.
SEC. 511. VIOLATIONS OF TERMS OF ASSISTANCE.
Chapter 3 of part III of the Foreign Assistance Act
of 1961, as amended by the preceding sections of this Act,
is further amended by adding at the end the following:
‘‘SEC. 672. VIOLATION OF TERMS OF ASSISTANCE.
‘‘(a) TERMINATION OF ASSISTANCE.—If any recipi-
ent of assistance under this Act uses such assistance in
substantial violation (either in terms of amounts or in
terms of the gravity of the consequences regardless of the
amounts involved) of any agreement pursuant to which
that assistance was furnished by using such assistance,
without the consent of the United States, for a purpose
not authorized under such agreement, then all assistance
and deliveries of assistance to such recipient under this
Act shall be terminated if—
‘‘(1) the President so determines and states in
writing to the Congress; and
‘‘(2) the Congress enacts a joint resolution de-
claring that the Congress agrees with such deter-
mination.
‘‘(b) PERIOD OF TERMINATION.—Assistance shall re-
main terminated in accordance with subsection (a) until
such time as—
‘‘(1) the President determines that the violation
has ceased; and
‘‘(2) the recipient concerned has given assur-
ances satisfactory to the President that such viola-
tion will not recur.’’.