conflicts. These nations will seek to achieve sub-
stantial reductions in military forces and ex-
penditures by the year 2000.
(B) Special envoys be appointed by the
United Nations Secretary-General to organize
these demilitarization talks in various regions of
the world.
(C) Every nation meet with its regional
envoy to present plans for regional security at
reduced force levels. These nations will also
participate in negotiations guided by the envoy
in order to identify military capacities and im-
plement mutual force reductions. Such negotia-
tions will reduce the threat that nations pose to
each other due to the size, proximity, and tech-
nological sophistication of their armed forces.
(D) With savings from reduced military
spending, all nations, in cooperation with grass-
roots organizations, implement economic re-
forms related to demilitarization, such as the
conversion of military to non-military produc-
tion, landmine clearance, community recon-
struction, and the reintegration of demobilized
soldiers.
(E) In support of the steps taken toward
demilitarization by developing countries, indus-
trialized nations condition their bilateral and
multilateral aid to promote demilitarization.
They will exchange debt forgiveness for military
conversion efforts, provide special funding for
programs to assist the demilitarization process,
promote full transparency and reductions in
military budgets, and bring about the end of
military involvement in the civilian economy.
(F) All arms-exporting nations agree to a
Code of Conduct on arms transfers that would
bar exports to nondemocratic governments,
countries engaged in armed aggression in viola-
tion of international law, countries that do not
fully participate in the United Nations Register
of conventional arms, and governments permit-
ting gross violations of internationally recog-
nized human rights.
(14) Citizens around the world are signing The
Arias Peace Pledge and communicating to their gov-
ernments their support for the proposals of The
Year 2000 Campaign to Redirect World Military
Spending to Human Development.
(15) The United Nations General Assembly is
expected to consider crucial components of this 6-
point plan.
SEC. 3. PURPOSE.
The purpose of this Act is to enhance international
security by using the resources and expertise of the inter-
national financial institutions and the United Nations to
redirect world military spending to human development.
SEC. 4. SPECIAL ENVOYS FOR MUTUAL DISARMAMENT.
The President shall instruct the United States Am-
bassador to the United Nations to support in the Security
Council, the General Assembly, and other United Nations
bodies, resolutions and other efforts to—
(1) appoint special envoys for conflict preven-
tion to organize and conduct, in cooperation with ap-
propriate multilateral institutions, mutual disar-
mament talks in every region of the world in which
all nations would participate, and to report to inter-
national financial institutions on the degree of co-
operation of governments with these talks;
(2) commit each member state to agree to meet
with its regional special envoy within 3 months of
appointment to deliver and discuss its proposal for
regional (and, where appropriate, international) con-
fidence-building measures, including mutual reduc-
tions in the size, proximity, and technological sophis-
tication of its and other nations’ armed forces, that
would lead to significant cuts in threat levels and
military spending; and
(3) commit each member state to agree to con-
tinue meeting with the special envoy and such re-
gional bodies and states as the special envoy shall
suggest to complete negotiations on such confidence-
building measures, with the goal of making signifi-
cant cuts in military spending by the year 2000.
SEC. 5. ALTERNATIVE SECURITY PLAN.
Within 3 months after the date of the enactment of
this Act, the President shall prepare and deliver to the
Congress and to the Secretary General of the United Na-
tions a report as described in section 4(2) that would de-
tail the changes in other nations’ forces and United States
forces that would permit by the year 2000 a 50 percent
reduction in United States military spending.
SEC. 6. UNITED STATES POLICY AT INTERNATIONAL FINAN-
CIAL INSTITUTIONS.
(a) HIGHER PRIORITY
FOR DEMILITARIZATION.—
Title XV of the International Financial Institutions Act
(22 U.S.C. 262o–262o–1) is amended by adding at the
end the following:
‘‘SEC. 1503. PROMOTION OF, AND REPORTING ON, DEMILI-
TARIZATION ACTIVITIES.
‘‘The Secretary of the Treasury shall instruct the
United States executive directors at the international fi-
nancial institutions (as defined in section 1701(c)(2) of
the International Financial Institutions Act) to promote,
and to report annually to the Congress on, the establish-
ment of lending facilities, debt forgiveness programs, and
increased funding in lending facilities for demilitarization
activities, including auditing of military budgets and re-
duction of military involvement in the civilian economy,
the conversion of military to nonmilitary production, land-
mine clearance, community reconstruction, and the re-
integration of demobilized soldiers.’’.
(b) CONDITIONALITY OF LOANS.—Title XV of the
International Financial Institutions Act (22 U.S.C. 262o–
262o–1), as amended by subsection (a) of this section, is
amended by adding at the end the following:
‘‘SEC. 1504. TRANSPARENCY OF MILITARY EXPENDITURES.
‘‘Beginning 3 years after the date of the enactment
of this section, the Secretary of the Treasury shall instruct
the United States Executive Director at each international
financial institution (as defined in section 1701(c)(2)) to
use the voice and vote of the United States to oppose any
proposal that the institution make a loan to the govern-
ment of any country, other than to address basic human
needs, unless the President of the United States deter-
mines that—
‘‘(1) the recipient government has in place a
functioning system for, and, in the immediately pre-
ceding year, has conducted, an independent civilian
audit of all receipts and expenditures in its military
budget and other portions of its national budget that
fund activities of the armed forces and security
forces;
‘‘(2) the recipient government has provided a
summary of the audit to the institution;
‘‘(3) the institution has taken independent steps
to confirm that the audit is accurate; and
‘‘(4) the recipient government has prepared and
reported to the institution an accounting of all own-
ership and financial interest in revenue-generating
enterprises by military institutions and individuals
acting on their behalf.’’.
(c) REPORT.—The Secretary of the Treasury shall,
drawing on other Executive Branch resources as appro-
priate, prepare an annual report to the Congress that—
(1) describes and evaluates steps being taken by
the International Monetary Fund and the Inter-
national Bank for Reconstruction and Development
to comply with section 1504 of the International Fi-
nancial Institutions Act, and of steps being taken by
the Executive Branch to implement this legislation;
and
(2) identifies specific additional measures that
need to be taken by the institutions to achieve full
compliance, and an action plan to ensure these
measures are adopted.
SEC. 7. SENSE OF THE CONGRESS.
It is the sense of the Congress that—
(1) the United States should not provide eco-
nomic assistance, military assistance, or approve
arms transfers or related training, to any foreign
government at any time during which the United
States is opposing loans to that foreign government
at international financial institutions pursuant to
section 1504 of the International Financial Institu-
tions Act;
(2) the President should designate the United
States Agency for International Development to be
the lead agency for the determinations made pursu-
ant to such section; and
(3) the President should report annually to the
Congress on the progress made by international fi-
nancial institutions in integrating military spending
issues such as those raised in this Act into the loan
review process of such international financial institu-
tions.
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