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(b) CONFORMING AMENDMENT.—Section 906(a) of
the Freedom for Russia and Emerging Eurasian Democ-
racies and Open Markets Support Act of 1992 is amend-
ed—
(1) by striking paragraph (2);
(2) by striking ‘‘eligible—’’ through ‘‘(1) to
purchase’’ and inserting ‘‘eligible to purchase’’;
(3) by redesignating subparagraphs (A) and
(B) as paragraphs (1) and (2), respectively; and
(4) by striking ‘‘; and’’ at the end of paragraph
(1), as so redesignated, and inserting a period.
SEC. 1404. EXCEPTION TO PAYMENT OF FULL COST FOR
SALES OF DEFENSE TRAINING SERVICES TO
CERTAIN COUNTRIES AND INTERNATIONAL
ORGANIZATIONS.
Section 21(a) of the Arms Export Control Act is
amended—
(1) in paragraph (1)(C)—
(A) by inserting ‘‘(i)’’ after ‘‘sold to’’,
(B) by inserting ‘‘or (ii) to a purchaser de-
scribed in paragraph (3)’’ after ‘‘Act of 1961’’,
and
(C) by striking ‘‘such assistance’’ and in-
serting ‘‘such training’’; and
(2) by adding after paragraph (2) the following:
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‘‘(3) Clause (ii) of paragraph (1)(C) applies in the
case of a purchaser of training under this section if the
President notifies the Committee on Appropriations, the
Committee on Armed Services, and the Committee on For-
eign Relations of the Senate and the Committee on Appro-
priations, the Committee on Armed Services, and the
Committee on Foreign Affairs of the House of Representa-
tives, in accordance with the regular notification proce-
dures of those committees, at least 15 days before issuing
a letter of offer to sell such training. Such notification
shall include a description of any reciprocal benefits that
the United States Government will receive in exchange for
the sale of such training on less than a full cost basis.’’.
SEC. 1405. ELIGIBILITY OF MAJOR NON-NATO ALLIES TO
RECEIVE CERTAIN CONTRACT SERVICES IN
CONNECTION WITH SALES OF DEFENSE ARTI-
CLES AND SERVICES.
(a) AUTHORIZATION.—Section 21(h) of the Arms Ex-
port Control Act is amended—
(1) in paragraph (1)(A), by inserting ‘‘or which
is a major non-NATO ally’’ after ‘‘Treaty Organiza-
tion’’;
(2) in paragraph (2), by striking ‘‘if that Orga-
nization or member government’’ and inserting ‘‘or
182
to any major non-NATO ally, if that Organization,
member government, or major non-NATO ally’’; and
(3) by adding at the end the following new
paragraph:
‘‘(3) As used in this subsection, the term ‘major non-
NATO ally’ has the meaning given such term in section
2350a(i)(3) of title 10, United States Code.’’.
(b) EFFECTIVE
DATE.—Notwithstanding section
21(h)(1) of that Act, the amendment made by subsection
(a)(1) applies with respect to contracts and subcontracts
entered into after the date of enactment of this Act.
SEC. 1406. ADDITIONS TO WAR RESERVE STOCKPILES FOR
ALLIES.
Section 514(b)(2) of the Foreign Assistance Act of
1961 is amended by adding at the end the following: ‘‘Ex-
cept as provided in the last two sentences of this para-
graph, the value of such additions to stockpiles in foreign
countries in fiscal year 1994 shall not exceed $72,000,000,
which shall be for stockpiles in the Republic of Korea. In
addition, to the extent that the authority of the first sen-
tence of this paragraph has not been exercised with re-
spect to Israel in fiscal year 1993, that authority may be
exercised during fiscal year 1994 except that the aggre-
gate value of such additions for Israel in both such fiscal
years may not exceed $200,000,000. Defense articles hav-
183
ing an aggregate value of not to exceed $20,000,000 may
be added to stockpiles in Thailand in fiscal years 1993
and 1994.’’.
TITLE XV—OTHER FOREIGN
ASSISTANCE PROVISIONS
SEC. 1501. INTEREST ACCRUING TO NONGOVERNMENTAL
ORGANIZATIONS.
(a) IN GENERAL.—Chapter 1 of part III of the For-
eign Assistance Act of 1961 is amended by inserting after
section 617 the following:
‘‘SEC. 618. INTEREST ACCRUING TO NONGOVERNMENTAL
ORGANIZATIONS.
‘‘A nongovernmental organization may place in an in-
terest bearing account—
‘‘(1) funds made available on a grant basis
under part I of this Act or under the Support for
East European Democracy (SEED) Act of 1989;
and
‘‘(2) local currencies which accrue to that orga-
nization as a result of grant assistance provided
under part I of this Act or assistance under titles I
through III of the Agricultural Trade Development
and Assistance Act of 1954, section 416(b) of the
Agricultural Act of 1949, or the Food for Progress
Act of 1985.
184
Any interest so earned may be retained by the nongovern-
mental organization and used for the purpose for which
the assistance was provided to that organization.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section applies to both interest earned before and in-
terest earned after the date of enactment of this Act.
SEC. 1502. PRIVATE SECTOR REVOLVING FUND.
Section 108 of the Foreign Assistance Act of 1961
is amended by adding at the end the following:
‘‘(j) TERMINATION OF AUTHORITY.—After the date
of enactment of this subsection, loans may not be made,
loan guarantees may not be issued, previously issued guar-
antees may not be renewed or otherwise extended, and as-
sistance may not otherwise be provided under the author-
ity of this section.’’.
SEC. 1503. DEVELOPMENT ASSISTANCE THROUGH NON-
GOVERNMENTAL ORGANIZATIONS.
Chapter 1 of part III of the Foreign Assistance Act
of 1961 is amended by inserting before section 620 the
following:
‘‘SEC. 619. ASSISTANCE THROUGH NONGOVERNMENTAL OR-
GANIZATIONS.
‘‘(a) DEVELOPMENT ASSISTANCE.—Restrictions con-
tained in this or any other Act with respect to assistance
for a country shall not restrict assistance in support of
185
programs of nongovernmental organizations that is pro-
vided under chapter 1 or chapter 10 of part I of this Act.
The President shall take into consideration, in any case
in which a restriction on assistance would be applicable
but for this section, whether assistance in support of pro-
grams of nongovernmental organizations is in the national
interest of the United States.
‘‘(b) NOTICE TO CONGRESS.—Before using the au-
thority of this section to furnish assistance in support of
programs of nongovernmental organizations, the President
shall notify the congressional committees specified in sec-
tion 634A(a) of this Act in accordance with the procedures
applicable to reprogramming notifications under that sec-
tion. Such notice shall include a description of the pro-
gram to be assisted, the assistance to be provided, and
the reasons for furnishing such assistance.
‘‘(c) EXCEPTIONS.—This section shall not apply with
respect to—
‘‘(1) section 620A of this Act or any com-
parable provision of law prohibiting assistance to
countries that support international terrorism; or
‘‘(2) section 116 of this Act or any comparable
provision of law prohibiting assistance to countries
that violate internationally recognized human rights.
186
‘‘(d) ABORTION AND INVOLUNTARY STERILIZATION
PROHIBITIONS.—Nothing in this section alters any statu-
tory prohibition against funding for abortion or involun-
tary sterilizations.’’.
SEC. 1504. IMPACT OF FOREIGN ASSISTANCE PROGRAMS
ON JOBS IN THE UNITED STATES.
Funds authorized to be appropriated by this Act for
foreign assistance programs for fiscal year 1994 may not
be obligated or expended to provide—
(1) any financial incentive to a business enter-
prise located in the United States for the purpose of
inducing that enterprise to relocate outside the Unit-
ed States if such incentive or inducement is likely to
reduce the number of individuals employed in the
United States by that enterprise because that enter-
prise would replace production in the United States
with production outside the United States;
(2) 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
187
not likely to cause a loss of jobs within the United
States; or
(3) 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 recipi-
ent country, including in any designated zone or
area in that country.
In recognition that the application of paragraph (3) should
be commensurate with the level of development of the re-
cipient country and sector, that paragraph does not pre-
clude assistance for the informal sector in such country,
for microenterprises and small-scale enterprises, or for
smallholder agriculture.
SEC. 1505. CAPITAL PROJECTS.
Part III of the Foreign Assistance Act of 1961 is
amended by inserting after section 661 the following:
‘‘SEC. 662. CAPITAL PROJECTS.
‘‘(a) ESTABLISHMENT
OF PILOT PROGRAM.—The
Director of the Trade and Development Agency shall es-
tablish a capital projects pilot program to carry out the
purpose described in subsection (b).
‘‘(b) PURPOSE OF PROGRAM.—The purpose referred
to in subsection (a) is to develop a program administered
by TDA that would focus solely on developmentally sound
188
capital projects in developing countries and in countries
making the transition from a nonmarket to a market econ-
omy, taking into consideration the development needs of
the host country and the export opportunities for the
United States.
‘‘(c) ACTIVITIES.—The Director, in coordination with
the appropriate other members of the Trade Promotion
Coordination Committee—
‘‘(1) shall support capital projects in developing
countries and in countries making the transition
from a nonmarket to a market economy; and
‘‘(2) shall periodically review infrastructure
needs in these countries and shall explore opportuni-
ties for United States firms in the development of
new capital projects in these countries, keeping both
United States firms and the Congress informed of
these reviews.
‘‘(d) GUARANTEE AUTHORITY.—In addition to mak-
ing grants to carry out this section, the Director is author-
ized to issue guarantees to eligible investors (as defined
in section 238(c)) assuring against losses incurred in con-
nection with loans obtained by such investors to finance
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.
189
‘‘(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—
190
‘‘(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