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‘‘(2) funds available to the Department of De-
fense for the procurement of defense equipment are
not expended in connection with the transfer;
‘‘(3) the transfer of such articles will not have
an adverse impact on the military readiness of the
United States;
‘‘(4) with respect to a proposed transfer of such
articles on a grant basis, such a transfer is pref-
erable to a transfer on a sales basis, after taking
into account the potential proceeds from, and likeli-
hood of, such sales, and the comparative foreign pol-
icy benefits that may accrue to the United States as
the result of a transfer on either a grant or sales
basis;
‘‘(5) the President determines that the transfer
of such articles will not have an adverse impact on
the national technology and industrial base and, par-
ticularly, will not reduce the opportunities of entities
in the national technology and industrial base to sell
new or used equipment to the countries to which
such articles are transferred; and
‘‘(6) the transfer of such articles is consistent
with the policy framework for the Eastern Medi-
terranean established under section 620C of this
Act.
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‘‘(c) TERMS OF TRANSFERS.—
‘‘(1) NO COST TO RECIPIENT COUNTRY.—Ex-
cess defense articles may be transferred under this
section without cost to the recipient country.
‘‘(2) PRIORITY.—Notwithstanding any other
provision of law, the delivery of excess defense arti-
cles under this section to member countries of the
North Atlantic Treaty Organization (NATO) on the
southern and southeastern flank of NATO and to
major non-NATO allies on such southern and south-
eastern flank shall be given priority to the maximum
extent feasible over the delivery of such excess de-
fense articles to other countries.
‘‘(d) WAIVER OF REQUIREMENT FOR REIMBURSE-
MENT OF DEPARTMENT OF DEFENSE EXPENSES.—Sec-
tion 632(d) shall not apply with respect to transfers of
excess defense articles (including transportation and relat-
ed costs) under this section.
‘‘(e) TRANSPORTATION AND RELATED COSTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), funds available to the Department of De-
fense may not be expended for crating, packing,
handling, and transportation of excess defense arti-
cles transferred under the authority of this section.
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‘‘(2) EXCEPTION.—The President may provide
for the transportation of excess defense articles with-
out charge to a country for the costs of such trans-
portation if—
‘‘(A) it is determined that it is in the na-
tional interest of the United States to do so;
‘‘(B) the recipient is a developing country
receiving less than $10,000,000 of assistance
under chapter 5 of part II of this Act (relating
to international military education and train-
ing) or section 23 of the Arms Export Control
Act (22 U.S.C. 2763; relating to the Foreign
Military Financing program) in the fiscal year
in which the transportation is provided;
‘‘(C) the total weight of the transfer does
not exceed 25,000 pounds; and
‘‘(D) such transportation is accomplished
on a space available basis.
‘‘(f) ADVANCE NOTIFICATION
TO CONGRESS
FOR
TRANSFER OF CERTAIN EXCESS DEFENSE ARTICLES.—
‘‘(1) IN
GENERAL.—The President may not
transfer excess defense articles that are significant
military equipment (as defined in section 47(9) of
the Arms Export Control Act) or excess defense arti-
cles valued (in terms of original acquisition cost) at
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$7,000,000 or more, under this section or under the
Arms Export Control Act (22 U.S.C. 2751 et seq.)
until 15 days after the date on which the President
has provided notice of the proposed transfer to the
congressional 
committees 
specified 
in 
section
634A(a) in accordance with procedures applicable to
reprogramming notifications under that section.
‘‘(2) CONTENTS.—Such notification shall in-
clude—
‘‘(A) a statement outlining the purposes
for which the article is being provided to the
country, including whether such article has
been previously provided to such country;
‘‘(B) an assessment of the impact of the
transfer on the military readiness of the United
States;
‘‘(C) an assessment of the impact of the
transfer on the national technology and indus-
trial base and, particularly, the impact on op-
portunities of entities in the national technology
and industrial base to sell new or used equip-
ment to the countries to which such articles are
to be transferred; and
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‘‘(D) a statement describing the current
value of such article and the value of such arti-
cle at acquisition.
‘‘(g) AGGREGATE ANNUAL LIMITATION.—
‘‘(1) IN GENERAL.—The aggregate value of ex-
cess defense articles transferred to countries under
this section in any fiscal year may not exceed
$350,000,000.
‘‘(2) EFFECTIVE
DATE.—The limitation con-
tained in paragraph (1) shall apply only with respect
to fiscal years beginning after fiscal year 1996.
‘‘(h) 
CONGRESSIONAL
PRESENTATION
DOCU-
MENTS.—Documents described in subsection (a) justifying
the transfer of excess defense articles shall include an ex-
planation of the general purposes of providing excess de-
fense articles as well as a table which provides an aggre-
gate annual total of transfers of excess defense articles
in the preceding year by country in terms of offers and
actual deliveries and in terms of acquisition cost and cur-
rent value. Such table shall indicate whether such excess
defense articles were provided on a grant or sale basis.
‘‘(i) EXCESS COAST GUARD PROPERTY.—For pur-
poses of this section, the term ‘excess defense articles’
shall be deemed to include excess property of the Coast
Guard, and the term ‘Department of Defense’ shall be
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deemed, with respect to such excess property, to include
the Coast Guard.’’.
(b) CONFORMING AMENDMENTS.—
(1) ARMS
EXPORT
CONTROL
ACT.—Section
21(k) of the Arms Export Control Act (22 U.S.C.
2761(k)) is amended by striking ‘‘the President
shall’’ and all that follows and inserting the follow-
ing: ‘‘the President shall determine that the sale of
such articles will not have an adverse impact on the
national technology and industrial base and, particu-
larly, will not reduce the opportunities of entities in
the national technology and industrial base to sell
new or used equipment to the countries to which
such articles are transferred.’’.
(2) REPEALS.—The following provisions of law
are hereby repealed:
(A) Section 502A of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2303).
(B) Sections 517 through 520 of the For-
eign Assistance Act of 1961 (22 U.S.C. 2321k
through 2321n).
(C) Section 31(d) of the Arms Export Con-
trol Act (22 U.S.C. 2771(d)).
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SEC. 1505. EXCESS DEFENSE ARTICLES FOR CERTAIN EU-
ROPEAN COUNTRIES.
Notwithstanding section 516(e) of the Foreign As-
sistance Act of 1961, during each of the fiscal years 1996
and 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 section 516 of such Act to countries that
are eligible to participate in the Partnership for Peace and
that are eligible for assistance under the Support for East
European Democracy (SEED) Act of 1989.
Subtitle B—International Military
Education and Training
SEC. 1511. ASSISTANCE FOR INDONESIA.
Funds made available for fiscal years 1996 and 1997
to carry out chapter 5 of part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2347 et seq.) may be obligated
for Indonesia only for expanded military and education
training that meets the requirements of clauses (i)
through (iv) of the second sentence of section 541 of such
Act (22 U.S.C. 2347).
SEC. 1512. ADDITIONAL REQUIREMENTS.
(a) GENERAL AUTHORITY.—Section 541 of the For-
eign Assistance Act of 1961 (22 U.S.C. 2347) is amended
in the second sentence in the matter preceding clause (i)
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by inserting ‘‘and individuals who are not members of the
government’’ after ‘‘legislators’’.
(b) EXCHANGE TRAINING.—Section 544 of such Act
(22 U.S.C. 2347c) is amended—
(1) by striking ‘‘In carrying out this chapter’’
and inserting ‘‘(a) In carrying out this chapter’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) The President may provide for the attendance
of foreign military and civilian defense personnel at flight
training schools and programs (including test pilot
schools) in the United States without charge, and without
charge to funds available to carry out this chapter (not-
withstanding section 632(d) of this Act), if such attend-
ance is pursuant to an agreement providing for the ex-
change of students on a one-for-one basis each fiscal year
between those United States flight training schools and
programs (including test pilot schools) and comparable
flight training schools and programs of foreign coun-
tries.’’.
(c) ASSISTANCE FOR CERTAIN HIGH-INCOME FOR-
EIGN COUNTRIES.—
(1) AMENDMENT TO THE FOREIGN ASSISTANCE
ACT OF 1961.—Chapter 5 of part II of such Act (22
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U.S.C. 2347 et seq.) is amended by adding at the
end the following new section:
‘‘SEC. 546. PROHIBITION ON GRANT ASSISTANCE FOR CER-
TAIN HIGH INCOME FOREIGN COUNTRIES.
‘‘(a) IN GENERAL.—None of the funds made avail-
able for a fiscal year for assistance under this chapter may
be made available for assistance on a grant basis for any
of the high-income foreign countries described in sub-
section (b) for military education and training of military
and related civilian personnel of such country.
‘‘(b) HIGH-INCOME
FOREIGN
COUNTRIES
DE-
SCRIBED.—The high-income foreign countries described in
this subsection are Austria, Finland, the Republic of
Korea, Singapore, and Spain.’’.
(2) AMENDMENT TO THE ARMS EXPORT CON-
TROL ACT.—Section 21(a)(1)(C) of the Arms Export
Control Act (22 U.S.C. 2761) is amended by insert-
ing ‘‘or to any high-income foreign country (as de-
scribed in that chapter)’’ after ‘‘Foreign Assistance
Act of 1961’’.
Subtitle C—Antiterrorism
Assistance
SEC. 1521. ANTITERRORISM TRAINING ASSISTANCE.
(a) IN GENERAL.—Section 571 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2349aa) is amended by strik-
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ing ‘‘Subject to the provisions of this chapter’’ and insert-
ing ‘‘Notwithstanding any other provision of law that re-
stricts assistance to foreign countries (other than sections
502B and 620A of this Act)’’.
(b) LIMITATIONS.—Section 573 of such Act (22
U.S.C. 2349aa–2) is amended—
(1) in the heading, by striking ‘‘SPECIFIC AU-
THORITIES AND’’;
(2) by striking subsection (a);
(3) by redesignating subsections (b) through (f)
as subsections (a) through (e), respectively; and
(4) in subsection (c) (as redesignated)—
(A) by striking paragraphs (1) and (2);
(B) 
by 
redesignating 
paragraphs 
(3)
through (5) as paragraphs (1) through (3), re-
spectively; and
(C) by amending paragraph (2) (as redes-
ignated) to read as follows:
‘‘(2)(A) Except as provided in subparagraph (B),
funds made available to carry out this chapter shall not
be made available for the procurement of weapons and am-
munition.
‘‘(B) Subparagraph (A) shall not apply to small arms
and ammunition in categories I and III of the United
States Munitions List that are integrally and directly re-
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lated to antiterrorism training provided under this chapter
if, at least 15 days before obligating those funds, the
President notifies the appropriate congressional commit-
tees specified in section 634A of this Act in accordance
with the procedures applicable to reprogramming notifica-
tions under such section.
‘‘(C) The value (in terms of original acquisition cost)
of all equipment and commodities provided under this
chapter in any fiscal year may not exceed 25 percent of
the funds made available to carry out this chapter for that
fiscal year.’’.
(c) ANNUAL REPORT.—Section 574 of such Act (22
U.S.C. 2349aa–3) is hereby repealed.
(d) TECHNICAL CORRECTIONS.—Section 575 (22
U.S.C. 2349aa–4) and section 576 (22 U.S.C. 2349aa–
5) of such Act are redesignated as sections 574 and 575,
respectively.
SEC. 1522. RESEARCH AND DEVELOPMENT EXPENSES.
Funds made available for fiscal years 1996 and 1997
to carry out chapter 8 of part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2349aa et seq.; relating to
antiterrorism assistance) may be made available to the
Technical Support Working Group of the Department of
State for research and development expenses related to
contraband detection technologies or for field demonstra-
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tions of such technologies (whether such field demonstra-
tions take place in the United States or outside the United
States).
Subtitle D—Narcotics Control
Assistance
SEC. 1531. ADDITIONAL REQUIREMENTS.
(a) POLICY AND GENERAL AUTHORITIES.—Section
481(a) of the Foreign Assistance Act (22 U.S.C. 2291(a))
is amended—
(1) in paragraph (1)—
(A) by redesignating subparagraphs (D)
through (F) as subparagraphs (E) through (G),
respectively; and
(B) by inserting after subparagraph (C)
the following new subparagraph:
‘‘(D) International criminal activities, particu-
larly international narcotics trafficking, money laun-
dering, and corruption, endanger political and eco-
nomic stability and democratic development, and as-
sistance for the prevention and suppression of inter-
national criminal activities should be a priority for
the United States.’’; and
(2) in paragraph (4), by adding before the pe-
riod at the end the following: ‘‘, or for other
anticrime purposes’’.
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(b) CONTRIBUTIONS
AND REIMBURSEMENT.—Sec-
tion 482(c) of that Act (22 U.S.C. 2291a(c)) is amend-
ed—
(1) by striking ‘‘CONTRIBUTION BY RECIPIENT
COUNTRY.—To’’ and inserting ‘‘CONTRIBUTIONS
AND REIMBURSEMENT.—(1) To’’; and
(2) by adding at the end the following new
paragraphs:
‘‘(2)(A) The President is authorized to accept con-
tributions from foreign governments to carry out the pur-
poses of this chapter. Such contributions shall be depos-
ited as an offsetting collection to the applicable appropria-
tion account and may be used under the same terms and
conditions as funds appropriated pursuant to this chapter.
‘‘(B) At the time of submission of the annual congres-
sional presentation documents required by section 634(a),
the President shall provide a detailed report on any con-
tributions received in the preceding fiscal year, the amount
of such contributions, and the purposes for which such
contributions were used.
‘‘(3) The President is authorized to provide assist-
ance under this chapter on a reimbursable basis. Such re-
imbursements shall be deposited as an offsetting collection
to the applicable appropriation and may be used under the