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fense shall notify the Committees on Appropriations to the
same extent and under the same conditions as are other
committees pursuant to subsection (c) of that section: Pro-
vided, 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 accordance with the regular notification
procedures of such Committees: Provided further, That
such Committees shall also be informed of the original ac-
quisition cost of such defense articles.
AUTHORIZATION REQUIREMENT
SEC. 526. Funds appropriated by this Act may be
obligated and expended notwithstanding section 10 of
Public Law 91–672 and section 15 of the State Depart-
ment Basic Authorities Act of 1956.
PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST
COUNTRIES
SEC. 527. (a) Funds appropriated for bilateral assist-
ance under any heading of this Act and funds appro-
priated under any such heading in a provision of law en-
acted prior to enactment of this Act, shall not be made
available to any country which the President determines—
(1) grants sanctuary from prosecution to any
individual or group which has committed an act of
international terrorism, or
(2) otherwise supports international terrorism.
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(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
Federal Register and, at least fifteen days before the waiv-
er takes effect, shall notify the Committees on Appropria-
tions of the waiver (including the justification for the waiv-
er) in accordance with the regular notification procedures
of the Committees on Appropriations.
COMMERCIAL LEASING OF DEFENSE ARTICLES
SEC. 528. Notwithstanding any other provision of
law, and subject to the regular notification procedures of
the Committees on Appropriations, the authority of sec-
tion 23(a) of the Arms Export Control Act may be used
to provide financing to Israel, Egypt and NATO and
major non-NATO allies for the procurement by leasing
(including leasing with an option to purchase) of defense
articles from United States commercial suppliers, not in-
cluding Major Defense Equipment (other than helicopters
and other types of aircraft having possible civilian applica-
tion), if the President determines that there are compel-
ling foreign policy or national security reasons for those
defense articles being provided by commercial lease rather
than by government-to-government sale under such Act.
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COMPETITIVE INSURANCE
SEC. 528A. 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 oppor-
tunity to bid for insurance when such insurance is nec-
essary or appropriate.
STINGERS IN THE PERSIAN GULF REGION
SEC. 529. Except as provided in section 581 of the
Foreign Operations, Export Financing, and Related Pro-
grams 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 Ex-
port Control Act or chapter 2 of part II of the Foreign
Assistance Act of 1961.
DEBT-FOR-DEVELOPMENT
SEC. 530. In order to enhance the continued partici-
pation of nongovernmental organizations in economic as-
sistance activities under the Foreign Assistance Act of
1961, including endowments, debt-for-development and
debt-for-nature exchanges, a nongovernmental organiza-
tion 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 currencies which accrue to that organization as
a result of economic assistance provided under title II of
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this Act and any interest earned on such investment shall
be used for the purpose for which the assistance was pro-
vided to that organization.
SEPARATE ACCOUNTS
SEC. 531. (a) SEPARATE ACCOUNTS
FOR LOCAL
CURRENCIES.—(1) If assistance is furnished to the gov-
ernment 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 genera-
tion 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—
(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 govern-
ment the responsibilities of the Agency for Inter-
national Development and that government to mon-
itor and account for deposits into and disbursements
from the separate account.
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(2) USES
OF LOCAL CURRENCIES.—As may be
agreed upon with the foreign government, local currencies
deposited 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 necessary
steps to ensure that the equivalent of the local currencies
disbursed pursuant to subsection (a)(2)(A) from the sepa-
rate 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 chap-
ters 1 or 10 of part I or chapter 4 of part II (as the case
may be), any unencumbered balances of funds which re-
main in a separate account established pursuant to sub-
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section (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 pro-
visos contained under the heading ‘‘Sub-Saharan Africa,
Development 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
Foreign Assistance Act of 1961.
(6) REPORTING REQUIREMENT.—The Administrator
of the Agency for International Development shall report
on an annual basis as part of the justification documents
submitted to the Committees on Appropriations on the use
of local currencies for the administrative requirements of
the United States Government as authorized in subsection
(a)(2)(B), and such report shall include the amount of
local currency (and United States dollar equivalent) used
and/or to be used for such purpose in each applicable
country.
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—
(1) If assistance is made available to the government of
a foreign 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 assist-
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ance, that country shall be required to maintain such
funds in a separate account and not commingle them with
any other funds.
(2) APPLICABILITY
OF
OTHER
PROVISIONS
OF
LAW.—Such funds may be obligated and expended not-
withstanding 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 Res-
olution 648 (H. Report No. 98–1159).
(3) NOTIFICATION.—At least fifteen days prior to ob-
ligating any such cash transfer or nonproject sector assist-
ance, the President shall submit a notification through the
regular notification procedures of the Committees on Ap-
propriations, 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
description 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 Com-
mittees on Appropriations.
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COMPENSATION FOR UNITED STATES EXECUTIVE DIREC-
TORS TO INTERNATIONAL FINANCING INSTITUTIONS
SEC. 532. (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
institution 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 institu-
tion at a rate in excess of the rate provided for an individ-
ual occupying a position at level V of the Executive Sched-
ule 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 De-
velopment Fund, the African Development Bank, the Afri-
can Development Fund, the International Monetary Fund,
the North American Development Bank, and the Euro-
pean Bank for Reconstruction and Development.
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COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST
IRAQ
SEC. 533. (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 Export Control Act may be used to provide assist-
ance 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 human-
itarian 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
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a period of time as he considers appropriate, the importa-
tion 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. 534. (a) Notwithstanding any other provision
of law, the President may direct the drawdown, without
reimbursement 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
training, of an aggregate value not to exceed $15,000,000
in fiscal year 1997, as may be necessary to carry out sub-
section (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
support efforts to locate and repatriate members of the
United States Armed Forces and civilians employed di-
rectly or indirectly by the United States Government who
remain unaccounted for from the Vietnam War, and to
ensure the safety of United States Government personnel
engaged in such cooperative efforts and to support United
States Department of Defense-sponsored humanitarian
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projects associated with the POW/MIA efforts. Any air-
craft 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 section 61 of the Arms Export Con-
trol Act and may be maintained with defense articles, serv-
ices 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 identi-
fies the articles, services, and training drawn down under
this section.
MEDITERRANEAN EXCESS DEFENSE ARTICLES
SEC. 535. For the four-year period beginning on Oc-
tober 1, 1996, the President shall ensure that excess de-
fense 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
defense articles under those sections during the four-year
period that began on October 1, 1992, pursuant to section
573(e) of the Foreign Operations, Export Financing, Re-
lated Programs Appropriations Act, 1990.
CASH FLOW FINANCING
SEC. 536. 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
purchase agreement, or any amendment thereto, for a pro-
curement 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
procedures to the Committees on Appropriations.
AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMER-
ICAN
FOUNDATION
AND
THE
AFRICAN
DEVELOP-
MENT FOUNDATION
SEC. 537. 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. 538. 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 in-
ducement is likely to reduce the number of employ-
ees 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 process-
ing 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 car-
ried out within that zone or area, unless the Presi-
dent determines and certifies that such assistance is
not likely to cause a loss of jobs within the United
States; or
(c) assistance for any project or activity that
contributes to the violation of internationally 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 commensu-
rate with the level of development of the recipient
country and sector, the provisions of this subsection
shall not preclude assistance for the informal sector
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in such country, micro and small-scale enterprise,
and smallholder agriculture.
AUTHORITY TO ASSIST BOSNIA AND HERZEGOVINA
SEC. 539. (a) The President is authorized to direct
the transfer, subject to 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 that equals the difference between $100,000,000
and the aggregate value of any such articles and services
that were transferred under the authority of Section 540
of Public Law 104–107, the Foreign Operations, Export
Financing, and Related Programs Appropriations Act,
1996: Provided, That the President certifies in a timely
fashion to the Congress that the transfer of such defense
articles would assist that nation in self-defense and there-
by promote the security and stability of the region.
(b) Within 60 days of any transfer under the author-
ity provided in subsection (b), and every 60 days there-
after, 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 disposition thereof.
(c) There are authorized to be appropriated to the
President such sums as may be necessary to reimburse
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the applicable appropriation, fund, or account for defense
articles provided under this section.
RESTRICTIONS ON THE TERMINATION OF SANCTIONS
AGAINST SERBIA AND MONTENEGRO
SEC. 540. (a) RESTRICTIONS.—Notwithstanding any
other provision of law, no sanction, prohibition, or require-
ment described in section 1511 of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law 103–
160), with respect to Serbia or Montenegro, may cease
to be effective, 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 per-
mitted to meet and carry out its legitimate mandate
as elected 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 emer-
gency humanitarian needs or to achieve a negotiated set-
tlement of the conflict in Bosnia and Herzegovina that is
acceptable to the parties.
SPECIAL AUTHORITIES
SEC. 541. (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,
displaced 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 Cam-
bodia 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 Coopera-
tion Act of 1985: Provided further, That the President
shall terminate assistance to any country or organization
that he determines is cooperating, tactically or strategi-
cally, with the Khmer Rouge in their military operations,
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or to the military of any country which the President de-
termines is not taking steps to prevent a pattern or prac-
tice of commercial relations between its members and the
Khmer Rouge.
(b) Funds appropriated by this Act to carry out the
provisions of sections 103 through 106 of the Foreign As-
sistance Act of 1961 may be used, notwithstanding any
other provision of law, for the purpose of supporting tropi-
cal forestry and energy programs aimed at reducing emis-
sions of greenhouse gases, and for the purpose of support-
ing biodiversity conservation activities: Provided, That
such assistance 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 $50,000,000 under the authority of section 451 of
the Foreign Assistance Act of 1961, notwithstanding the
funding ceiling contained in subsection (a) of that section.
(d) The Agency for International Development may
employ personal services contractors, notwithstanding any
other provision of law, for the purpose of administering
programs for the West Bank and Gaza.
POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT
OF ISRAEL
SEC. 542. It is the sense of the Congress that—
(1) the Arab League countries should imme-
diately and publicly renounce the primary boycott of
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Israel and the secondary and tertiary boycott of
American firms that have commercial ties with Is-
rael; 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 commer-
cial relations with Israel when determining
whether to sell weapons to said country;
(C) report to Congress on the specific
steps being taken by the President to bring
about a public renunciation of the Arab primary
boycott of Israel and the secondary and tertiary
boycotts of American firms that have commer-
cial relations with Israel; and
(D) encourage the allies and trading part-
ners of the United States to enact laws prohib-
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iting businesses from complying with the boy-
cott and penalizing businesses that do comply.
ANTI-NARCOTICS ACTIVITIES
SEC. 543. (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 Car-
ibbean and in other regions consistent with the provisions
of section 534(b) of the Foreign Assistance Act of 1961,
except that programs to enhance protection of 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 section 534(c) and
the second and third sentences of section 534(e) of the
Foreign Assistance Act of 1961. Funds made available
pursuant to subsection (a) for Bolivia, Colombia and Peru
may be made available notwithstanding section 534(c) and
the second sentence of section 534(e) of the Foreign As-
sistance Act of 1961.
ELIGIBILITY FOR ASSISTANCE
SEC. 544. (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
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appropriated by this Act to carry out the provisions of
chapters 1 and 10 of part I of the Foreign Assistance Act
of 1961: Provided, That the President shall take into con-
sideration, 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
nongovernmental organizations, the President shall notify
the Committees on Appropriations under the regular noti-
fication procedures of those committees, including a de-
scription of the program to be assisted, the assistance to
be provided, and the reasons for furnishing such assist-
ance: Provided further, That nothing in this subsection
shall be construed to alter any existing statutory prohibi-
tions against abortion or involuntary sterilizations con-
tained in this or any other Act.
(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 re-
strict assistance under the Agricultural Trade Develop-
ment 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
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obligated or expended except as provided through the reg-
ular notification procedures of the Committees on Appro-
priations.
(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
international terrorism; or
(2) with respect to section 116 of the Foreign
Assistance Act of 1961 or any comparable provision
of law prohibiting assistance to countries that violate
internationally recognized human rights.
EARMARKS
SEC. 544A. (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 base access in that country, if the President determines
that the recipient for which funds are earmarked has sig-
nificantly reduced its military or economic cooperation
with the United States since enactment of the Foreign Op-
erations, Export Financing, and Related Programs Appro-
priations Act, 1991; however, before exercising the author-
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ity of this subsection with regard to a base rights or base
access country which has significantly reduced its military
or economic cooperation with the United States, the Presi-
dent shall consult with, and shall provide a written policy
justification to the Committees on Appropriations: Pro-
vided, That any such reprogramming shall be subject to
the regular notification procedures of the Committees on
Appropriations: Provided further, That assistance that is
reprogrammed pursuant to this subsection shall be made
available under the same terms and conditions as origi-
nally provided.
(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 par-
ticular 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
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.
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CEILINGS AND EARMARKS
SEC. 545. Ceilings and earmarks contained in this
Act shall not be applicable to funds or authorities appro-
priated or otherwise made available by any subsequent Act
unless such Act specifically so directs.
PROHIBITION ON PUBLICITY OR PROPAGANDA
SEC. 546. 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. 547. To the maximum extent possible, assist-
ance provided under this Act should make full use of
American resources, including commodities, products, and
services.
PROHIBITION OF PAYMENTS TO UNITED NATIONS
MEMBERS
SEC. 548. 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 mem-
ber of the United Nations.
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CONSULTING SERVICES
SEC. 549. The expenditure of any appropriation
under this Act for any consulting service through procure-
ment contract, pursuant to section 3109 of title 5, United
States Code, shall be limited to those contracts where such
expenditures are a matter of public record and available
for public inspection, except where otherwise provided
under existing law, or under existing Executive order pur-
suant to existing law.
PRIVATE VOLUNTARY ORGANIZATIONS—DOCUMENTATION
SEC. 550. None of the funds appropriated or made
available pursuant to this Act shall be available to a pri-
vate voluntary organization which fails to provide upon
timely request any document, file, or record necessary to
the auditing requirements of the Agency for International
Development.
PROHIBITION
ON
ASSISTANCE
TO
FOREIGN
GOVERN-
MENTS
THAT
EXPORT
LETHAL
MILITARY
EQUIP-
MENT TO COUNTRIES SUPPORTING INTERNATIONAL
TERRORISM
SEC. 551. (a) None of the funds appropriated or oth-
erwise 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.
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The prohibition under this section with respect to a for-
eign government shall terminate 12 months after that gov-
ernment ceases to provide such military equipment. This
section applies 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 exer-
cised, the President shall submit to the appropriate con-
gressional committees a report with respect to the furnish-
ing of such assistance. Any such report shall include a de-
tailed explanation of the assistance to be provided, includ-
ing the estimated dollar amount of such assistance, and
an explanation of how the assistance furthers United
States national interests.
WITHHOLDING OF ASSISTANCE FOR PARKING FINES
OWED BY FOREIGN COUNTRIES
SEC. 552. (a) IN GENERAL.—Of the funds made
available for a foreign country under part I of the Foreign
Assistance Act of 1961, an amount equivalent to 110 per-
cent of the total unpaid fully adjudicated parking fines
and penalties owed to the District of Columbia by such
country as of the date of enactment of this Act shall be
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withheld from obligation for such country until the Sec-
retary of State certifies and reports in writing to the ap-
propriate congressional 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
Appropriations 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. 553. None of the funds appropriated by this Act
may be obligated for assistance for the Palestine Libera-
tion Organization for the West Bank and Gaza unless the
President has exercised the authority under section 604(a)
of the Middle East Peace Facilitation Act of 1995 (title
VI of Public Law 104–107) or any other legislation to sus-
pend or make inapplicable section 307 of the Foreign As-
sistance Act of 1961 and that suspension is still in effect:
Provided, That if the President fails to make the certifi-
cation 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
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may not be obligated for assistance for the Palestine Lib-
eration Organization for the West Bank and Gaza.
EXPORT FINANCING TRANSFER AUTHORITIES
SEC. 554. Not to exceed 5 percent of any appropria-
tion 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 appropriation, except as otherwise specifically pro-
vided, shall be increased by more than 25 percent by any
such transfer: Provided, That the exercise of such author-
ity shall be subject to the regular notification procedures
of the Committees on Appropriations.
WAR CRIMES TRIBUNALS
SEC. 555. 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 President may direct a drawdown pursuant to sec-
tion 552(c) of the Foreign Assistance Act of 1961, as
amended, of up to $50,000,000 of commodities and serv-
ices for the United Nations War Crimes Tribunal estab-
lished with regard to the former Yugoslavia by the United
Nations Security Council or such other tribunals or com-
missions as the Council may establish to deal with such
violations, without regard to the ceiling limitation con-
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tained in paragraph (2) thereof: Provided, That the deter-
mination required under this section shall be in lieu of
any determinations otherwise 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 information regarding alle-
gations of genocide or other violations of international law
in the former Yugoslavia and to furnish that information
to the United Nations War Crimes Tribunal for the former
Yugoslavia.
LANDMINES
SEC. 556. Notwithstanding any other provision of
law, demining equipment available to any department or
agency and used in support of the clearing of landmines
for humanitarian purposes may be disposed of on a grant
basis in foreign countries, subject to such terms and condi-
tions as the President may prescribe.
RESTRICTIONS CONCERNING THE PALESTINIAN
AUTHORITY
SEC. 557. None of the funds appropriated by this Act
may be obligated or expended to create in any part of Je-
rusalem a new office of any department or agency of the
United States Government for the purpose of conducting
official United States Government business with the Pal-
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estinian Authority over Gaza and Jericho or any successor
Palestinian governing entity provided for in the Israel-
PLO Declaration of Principles: Provided, That this re-
striction shall not apply to the acquisition of additional
space for the existing Consulate General in Jerusalem:
Provided further, That meetings between officers and em-
ployees of the United States and officials of the Palestin-
ian Authority, or any successor Palestinian governing en-
tity provided for in the Israel-PLO Declaration of Prin-
ciples, 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 continue to meet in Jerusalem on
other subjects with Palestinians (including those who now
occupy positions in the Palestinian Authority), have social
contacts, and have incidental discussions.
PROHIBITION OF PAYMENT OF CERTAIN EXPENSES
SEC. 558. None of the funds appropriated or other-
wise made available by this Act under the heading
‘‘INTERNATIONAL MILITARY EDUCATION AND TRAINING’’
or ‘‘FOREIGN MILITARY FINANCING PROGRAM’’ for Infor-
mational Program activities may be obligated or expended
to pay for—
(1) alcoholic beverages;
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(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, includ-
ing entrance fees at sporting events and amusement
parks.
HUMANITARIAN ASSISTANCE
SEC. 559. (a) IN GENERAL.—None of the funds
made available in this Act may be used for assistance in
support of any country when it is made known to the
President that the government of such country prohibits
or otherwise restricts, directly or indirectly, the transport
or delivery of United States humanitarian assistance.
(b) EXCEPTION.—Funds (other than funds appro-
priated in this Act under the heading ‘‘Economic Support
Fund’’) may be made available without regard to the re-
striction in subsection (a) if the President determines that
to do so is in the national security interest of the United
States.
WITHHOLDING OF ASSISTANCE TO COUNTRIES
SUPPORTING NUCLEAR PLANT IN CUBA
SEC. 560. (a) WITHHOLDING.—The President shall
withhold from assistance made available with funds appro-
priated or made available pursuant to this Act an amount
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equal to the sum of assistance and credits, if any, provided
on or after the date of the enactment of this Act by that
country, or any entity in that country, in support of the
completion of the Cuban nuclear facility at Juragua, near
Cienfuegos, Cuba.
(b) EXCEPTIONS.—The requirement of subsection (a)
to withhold assistance shall not apply with respect to—
(1) assistance to meet urgent humanitarian
needs including disaster and refugee relief;
(2) democratic political reform and rule of law
activities;
(3) support for private sector and nongovern-
mental organizations that are independent of govern-
ment control;
(4) the development of a free market economic
system; and
(5) assistance for the purposes described in the
Cooperative Threat Reduction Act of 1993 (title XII
of Public Law 103–160).
EQUITABLE ALLOCATION OF FUNDS
SEC. 561. Not more than 20 percent of the funds
appropriated by this Act to carry out the provisions of sec-
tions 103 through 106 and chapter 4 of part II of the
Foreign Assistance Act of 1961, that are made available
for Latin America and the Caribbean region may be made
available, through bilateral and Latin America and the
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Caribbean regional programs, to provide assistance for
any country in such region.
PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS
SEC. 562. (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
available in this Act should be American-made.
(b) NOTICE REQUIREMENT.—In providing financial
assistance to, or entering into any contract with, any en-
tity using funds made available in this Act, the head of
each Federal agency, to the greatest extent practicable,
shall provide to such entity a notice describing the state-
ment made in subsection (a) by the Congress.
LIMITATION OF FUNDS FOR NORTH AMERICAN
DEVELOPMENT BANK
SEC. 563. None of the funds appropriated in this Act
under the heading ‘‘North American Development Bank’’
and made available for the Community Adjustment and
Investment Program shall be used for purposes other than
those set out in the binational agreement establishing the
Bank.
INTERNATIONAL DEVELOPMENT ASSOCIATION
SEC. 564. In order to pay for the United States con-
tribution to the tenth replenishment of the resources of
the International Development Association authorized in
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section 526 of Public Law 103–87, there is authorized to
be 
appropriated, 
without 
fiscal 
year 
limitation,
$525,000,000 for payment by the Secretary of the Treas-
ury.
SPECIAL DEBT RELIEF FOR THE POOREST
SEC. 565. (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—
(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, com-
monly referred to as ‘‘Paris Club Agreed Minutes’’.
(2) The authority provided by subsection (a)
may be exercised only in such amounts or to such
extent 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
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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;
(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 pro-
vided by subsection (a) may be used only with regard to
funds appropriated by this Act under the heading ‘‘Debt
restructuring’’.
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A re-
duction of debt pursuant to subsection (a) shall not be
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considered assistance for purposes of any provision of law
limiting assistance to a country. The authority provided
by subsection (a) may be exercised notwithstanding sec-
tion 620(r) of the Foreign Assistance Act of 1961.
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES
SEC. 566. (a) LOANS ELIGIBLE FOR SALE, REDUC-
TION, OR CANCELLATION.—
(1) AUTHORITY TO SELL, REDUCE, OR CANCEL
CERTAIN LOANS.—Notwithstanding any other provi-
sion of law, the President may, in accordance with
this section, sell to any eligible purchaser any
concessional loan or portion thereof made before
January 1, 1995, pursuant to the Foreign Assist-
ance 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, re-
duce 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
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between the price paid for such debt and the
face value of such debt, to support activities
that link conservation and sustainable use of
natural resources with local community develop-
ment, and child survival and other child devel-
opment, 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 any term or condition of
any prior agreement relating to such loan.
(2) TERMS AND CONDITIONS.—Notwithstanding
any other provision of law, the President shall, in ac-
cordance with this section, establish the terms and
conditions under which loans may be sold, reduced,
or canceled pursuant to this section.
(3) ADMINISTRATION.—The Facility, as defined
in section 702(8) of the Foreign Assistance Act of
1961, shall notify the administrator of the agency
primarily responsible for administering part I of the
Foreign Assistance Act of 1961 of purchasers that
the President has determined to be eligible, and
shall direct such agency to carry out the sale, reduc-
tion, or cancellation of a loan pursuant to this sec-
tion. Such agency shall make an adjustment in its
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(e) AVAILABILITY OF FUNDS.—The authority pro-
vided by subsection (a) may be used only with regard to
funds appropriated by this Act under the heading ‘‘Debt
restructuring’’.
LIBERIA
SEC. 567. Funds appropriated by this Act may be
made available for assistance for Liberia notwithstanding
section 620(q) of the Foreign Assistance Act of 1961 and
section 512 of this Act.
GUATEMALA
SEC. 568. (a) Funds provided in this Act may be
made available for the Guatemalan military forces, and
the restrictions on Guatemala under the headings ‘‘Inter-
national Military Education and Training’’ and ‘‘Foreign
Military Financing Program’’ shall not apply, only if the
President determines and certifies to the Congress that
the Guatemalan military is cooperating with efforts to re-
solve human rights abuses which elements of the Guate-
malan military forces are alleged to have committed, or-
dered or attempted to thwart the investigation of.
(b) The prohibition contained in subsection (a) shall
not apply to funds made available to implement a ceasefire
or peace agreement.
(c) Any funds made available pursuant to subsections
(a) or (b) shall be subject to the regular notification proce-
dures of the Committees on Appropriations.
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(d) Any funds made available pursuant to subsections
(a) and (b) for international military education and train-
ing may only be for expanded international military edu-
cation and training.
SANCTIONS AGAINST COUNTRIES HARBORING WAR
CRIMINALS
SEC. 569. (a) BILATERAL ASSISTANCE.—The Presi-
dent is authorized to withhold funds appropriated by this
Act under the Foreign Assistance Act of 1961 or the Arms
Export Control Act for any country described in sub-
section (c).
(b) MULTILATERAL ASSISTANCE.—The Secretary of
the Treasury should instruct the United States executive
directors of the international financial institutions to work
in opposition to, and vote against, any extension by such
institutions of financing or financial or technical assist-
ance to any country described in subsection (c).
(c) SANCTIONED COUNTRIES.—A country described
in this subsection is a country the government of which
knowingly grants sanctuary to persons in its territory for
the purpose of evading prosecution, where such persons—
(1) have been indicted by the International
Criminal Tribunal for the former Yugoslavia, the
International Criminal Tribunal for Rwanda, or any
other international tribunal with similar standing
under international law, or
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(2) have been indicted for war crimes or crimes
against humanity committed during the period be-
ginning March 23, 1933 and ending on May 8, 1945
under the direction of, or in association with—
(A) the Nazi government of Germany;
(B) any government in any area occupied
by the military forces of the Nazi government
of Germany;
(C) any government which was established
with the assistance or cooperation of the Nazi
government; or
(D) any government which was an ally of
the Nazi government of Germany.
LIMITATION ON ASSISTANCE FOR HAITI
SEC. 570. (a) LIMITATION.—None of the funds ap-
propriated or otherwise made available by this Act, may
be provided to the Government of Haiti until the President
reports to Congress that—
(1) the Government is conducting thorough in-
vestigations of extrajudicial and political killings, in-
cluding the murders of Mireille Bertin, Michel Gon-
zalez, and Jean Hubert Feuille; and
(2) the Government is cooperating with United
States authorities in the investigations of political
and extrajudicial killings.
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(b) Nothing in this section shall be construed to re-
strict the provision of humanitarian or electoral assist-
ance.
(c) The President may waive the requirements of this
section on a quarterly basis if he determines and certifies
to the appropriate committees of Congress that it is in
the national interest of the United States.
(d) The authority contained in the previous sub-
section to make such a determination may be exercised
by the President only and may not be delegated.
LIMITATION OF ASSISTANCE TO TURKEY
SEC. 571. Not more than $25,000,000 of the funds
appropriated in this Act under the heading ‘‘Economic
Support Fund’’ may be made available to the Government
of Turkey.
REPORTS REGARDING HONG KONG
SEC. 572. (a) Section 301 of the United States-Hong
Kong Policy Act of 1992 (22 U.S.C. 5731) is amended
in the text above paragraph (1) by inserting ‘‘March 31,
1997,’’ after ‘‘March 31, 1996,’’.
(b) In light of the deficiencies in reports submitted
to the Congress pursuant to section 301 of the United
States-Hong Kong Policy Act (22 U.S.C. 5731), the Con-
gress directs that the additional report required to be sub-
mitted under such section by subsection (a) of this section
include detailed information on the status of, and other
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developments affecting, implementation of the Sino-Brit-
ish Joint Declaration on the Question of Hong Kong, in-
cluding—
(1) the Basic Law and its consistency with the
Joint Declaration;
(2) Beijing’s plans to replace the elected legisla-
ture with an appointed body;
(3) the openness and fairness of the election of
the chief executive and the executive’s accountability
to the legislature;
(4) the treatment of political parties;
(5) the independence of the Judiciary and its
ability to exercise the power of final judgment over
Hong Kong law; and
(6) the Bill of Rights.
LIMITATION ON USE OF FUNDS FOR PURCHASE OF
PRODUCTS NOT MADE IN AMERICA
SEC. 573. None of the funds appropriated in this Act
may be made available to the government of any foreign
country when it is made known to the Federal official hav-
ing authority to obligate or expend such funds that—
(1) the funds are to be used to purchase any
equipment or product made in a country other than
such foreign country or the United States; and
(2) substantially similar equipment or products
are made in the United States and available for pur-
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chase at a price that is not more than 10 percent
higher.
LIMITATION ON ASSISTANCE TO TURKEY
SEC. 574. Not more than $22,000,000 of the funds
appropriated in this Act under the heading ‘‘Economic
Support Fund’’ may be made available to the Government
of Turkey, except when it is made known to the Federal
official having authority to obligate or expend such funds
that the Government of Turkey has (1) joined the United
States in acknowledging the atrocity committed against
the Armenian population of the Ottoman Empire from
1915 to 1923; and (2) taken all appropriate steps to honor
the memory of the victims of the Armenian genocide.
LIMITATION ON FOREIGN MILITARY FINANCING
SEC. 575. None of the funds made available under
the heading ‘‘Foreign Military Financing Program’’ may
be made available for any country when it is made known
to the President that the government of such country has
not agreed to the Department of Defense conducting dur-
ing the current fiscal year nonreimbursable audits of pri-
vate 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.
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LIMITATION UNDER ARMS EXPORT CONTROL ACT
SEC. 576. Not more than $100,000,000 of the funds
made available under the heading ‘‘Foreign Military Fi-
nancing Program’’ may be made available for use in fi-
nancing the procurement of defense articles, defense serv-
ices, or design and construction services that are not sold
by the United States Government under the Arms Export
Control Act to countries other than Israel and Egypt.
LIMITATION ON ASSISTANCE TO MEXICO
SEC. 577. None of the funds appropriated or other-
wise made available by this Act may be obligated or ex-
pended for the Government of Mexico, except if it is made
known to the Federal entity or official to which funds are
appropriated under this Act that—
(1) the Government of Mexico is taking actions
to reduce the amount of illegal drugs entering the
United States from Mexico; and
(2) the Government of Mexico—
(A) is taking effective actions to apply vig-
orously all law enforcement resources to inves-
tigate, track, capture, incarcerate, and pros-
ecute individuals controlling, supervising, or
managing international narcotics cartels or
other similar entities and the accomplices of
such individuals, individuals responsible for, or
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otherwise involved in, corruption, and individ-
uals involved in money-laundering;
(B) is pursuing international anti-drug
trafficking initiatives;
(C) is cooperating fully with international
efforts at narcotics interdiction; and
(D) is cooperating fully with requests by
the United States for assistance in investiga-
tions of money-laundering violations and is
making progress toward implementation of ef-
fective laws to prohibit money-laundering.
This Act may be cited as the ‘‘Foreign Operations,
Export Financing, and Related Programs Appropriations
Act, 1997’’.
Passed the House of Representatives June 11, 1996.
Attest:
ROBIN H. CARLE,
Clerk.
By LINDA NAVE,
Deputy Clerk.