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vided, That up to $1,200,000 may be used for the Reagan/
Fascell Democracy Fellows program.
(d) Of the funds made available under subsection (a),
not less than $10,000,000 shall be made available for the
National Endowment for Democracy to support the activi-
ties described in subsection (a), and of the funds made
available under subsection (b)(1), not less than $10,000,000
shall be made available for the National Endowment for
Democracy to support the activities described in subsection
(b)(1): Provided, That the Secretary of State shall provide
a report to the Committees on Appropriations within 120
days of the date of enactment of this Act on the status of
the allocation and obligation of such funds.
PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST
COUNTRIES
SEC. 6027. (a) Funds appropriated for bilateral assist-
ance under any heading of this Act and funds appropriated
under any such heading in a provision of law enacted prior
to the enactment of this Act, shall not be made available
to any country which the President determines—
(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
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national security or humanitarian reasons justify such
waiver. The President shall publish each waiver in the Fed-
eral Register and, at least 15 days before the waiver takes
effect, shall notify the Committees on Appropriations of the
waiver (including the justification for the waiver) in ac-
cordance with the regular notification procedures of the
Committees on Appropriations.
DEBT-FOR-DEVELOPMENT
SEC. 6028. In order to enhance the continued partici-
pation of nongovernmental organizations in debt-for-devel-
opment and debt-for-nature exchanges, a nongovernmental
organization which is a grantee or contractor of the United
States Agency for International Development may place in
interest bearing accounts local currencies which accrue to
that organization as a result of economic assistance pro-
vided under title III of this Act and, subject to the regular
notification procedures of the Committees on Appropria-
tions, any interest earned on such investment shall be used
for the purpose for which the assistance was provided to
that organization.
SEPARATE ACCOUNTS
SEC. 6029. (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
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currencies of that country, the Administrator of the United
States 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 government
the responsibilities of the United States Agency for
International Development and that government to
monitor and account for deposits into and disburse-
ments 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 chapter 1 or 10 of part I or
chapter 4 of part II (as the case may be), for such
purposes as—
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(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 United
States Agency for International Development shall take all
necessary steps to ensure that the equivalent of the local cur-
rencies disbursed 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 sub-
section (a)(2).
(4) TERMINATION OF ASSISTANCE PROGRAMS.—Upon
termination of assistance to a country under chapter 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) REPORTING REQUIREMENT.—The Administrator of
the United States 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 require-
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ments 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 equiva-
lent) used and/or to be used for such purpose in each appli-
cable country.
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—(1)
If assistance is made available to the government of a for-
eign country, under chapter 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
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
(House Report No. 98–1159).
(3) NOTIFICATION.—At least 15 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