II
Calendar No. 147
107TH CONGRESS
1ST SESSION
H.R. 2506
[Report No. 107–58]
Making appropriations for foreign operations, export financing, and related
programs for the fiscal year ending September 30, 2002, and for other
purposes.
IN THE SENATE OF THE UNITED STATES
JULY 25, 2001
Received; read twice and referred to the Committee on Appropriations
SEPTEMBER 4, 2001
Reported by Mr. LEAHY, with an amendment
[Strike all after the enacting clause and insert the part printed in italic]
AN ACT
Making appropriations for foreign operations, export financ-
ing, and related programs for the fiscal year ending
September 30, 2002, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That the following sums are appropriated, out of any
money in the Treasury not otherwise appropriated, for the
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fiscal year ending September 30, 2002, and for other pur-
poses, namely:
TITLE I—EXPORT AND INVESTMENT
ASSISTANCE
EXPORT-IMPORT BANK OF THE UNITED STATES
The Export-Import Bank of the United States is au-
thorized to make such expenditures within the limits of
funds and borrowing authority available to such corpora-
tion, and in accordance with law, and to make such con-
tracts and commitments without regard to fiscal year limi-
tations, as provided by section 104 of the Government
Corporation Control Act, as may be necessary in carrying
out the program for the current fiscal year for such cor-
poration: Provided, That none of the funds available dur-
ing the current fiscal year may be used to make expendi-
tures, contracts, or commitments for the export of nuclear
equipment, fuel, or technology to any country other than
a nuclear-weapon state as defined in Article IX of the
Treaty on the Non-Proliferation of Nuclear Weapons eligi-
ble to receive economic or military assistance under this
Act that has detonated a nuclear explosive after the date
of the enactment of this Act.
SUBSIDY APPROPRIATION
For the cost of direct loans, loan guarantees, insur-
ance, and tied-aid grants as authorized by section 10 of
the Export-Import Bank Act of 1945, as amended,
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$753,323,000 (reduced by $1) (reduced by $15,000,000)
to remain available until September 30, 2005: Provided,
That such costs, including the cost of modifying such
loans, shall be as defined in section 502 of the Congres-
sional Budget Act of 1974: Provided further, That such
sums shall remain available until September 30, 2020 for
the disbursement of direct loans, loan guarantees, insur-
ance and tied-aid grants obligated in fiscal years 2002,
2003, 2004, and 2005: Provided further, That none of the
funds appropriated by this Act or any prior Act appro-
priating funds for foreign operations, export financing, or
related programs for tied-aid credits or grants may be
used for any other purpose except through the regular no-
tification procedures of the Committees on Appropria-
tions: Provided further, That funds appropriated by this
paragraph are made available notwithstanding section
2(b)(2) of the Export Import Bank Act of 1945, in con-
nection with the purchase or lease of any product by any
East European country, any Baltic State or any agency
or national thereof.
ADMINISTRATIVE EXPENSES
For administrative expenses to carry out the direct
and guaranteed loan and insurance programs, including
hire of passenger motor vehicles and services as authorized
by 5 U.S.C. 3109, and not to exceed $30,000 for official
reception and representation expenses for members of the
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Board
of
Directors,
$63,000,000
(reduced
by
$3,000,000): Provided, That necessary expenses (includ-
ing special services performed on a contract or fee basis,
but not including other personal services) in connection
with the collection of moneys owed the Export-Import
Bank, repossession or sale of pledged collateral or other
assets acquired by the Export-Import Bank in satisfaction
of moneys owed the Export-Import Bank, or the investiga-
tion or appraisal of any property, or the evaluation of the
legal or technical aspects of any transaction for which an
application for a loan, guarantee or insurance commitment
has been made, shall be considered nonadministrative ex-
penses for the purposes of this heading: Provided further,
That, notwithstanding subsection (b) of section 117 of the
Export Enhancement Act of 1992, subsection (a) thereof
shall remain in effect until October 1, 2002.
OVERSEAS PRIVATE INVESTMENT CORPORATION
NONCREDIT ACCOUNT
The Overseas Private Investment Corporation is au-
thorized to make, without regard to fiscal year limitations,
as provided by 31 U.S.C. 9104, such expenditures and
commitments within the limits of funds available to it and
in accordance with law as may be necessary: Provided,
That the amount available for administrative expenses to
carry out the credit and insurance programs (including an
amount for official reception and representation expenses
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which
shall
not
exceed
$35,000)
shall
not
exceed
$38,608,000: Provided further, That project-specific trans-
action costs, including direct and indirect costs incurred
in claims settlements, and other direct costs associated
with services provided to specific investors or potential in-
vestors pursuant to section 234 of the Foreign Assistance
Act of 1961, shall not be considered administrative ex-
penses for the purposes of this heading.
PROGRAM ACCOUNT
Such sums as may be necessary for administrative
expenses to carry out the credit program may be derived
from amounts available for administrative expenses to
carry out the credit and insurance programs in the Over-
seas Private Investment Corporation noncredit Account
and merged with said account.
FUNDS APPROPRIATED TO THE PRESIDENT
TRADE AND DEVELOPMENT AGENCY
For necessary expenses to carry out the provisions
of section 661 of the Foreign Assistance Act of 1961,
$50,024,000, to remain available until September 30,
2003.
TITLE II—BILATERAL ECONOMIC ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
For expenses necessary to enable the President to
carry out the provisions of the Foreign Assistance Act of
1961, and for other purposes, to remain available until
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September 30, 2002, unless otherwise specified herein, as
follows:
UNITED STATES AGENCY FOR INTERNATIONAL
DEVELOPMENT
CHILD SURVIVAL AND HEALTH PROGRAMS FUND
For necessary expenses to carry out the provisions
of chapters 1 and 10 of part I of the Foreign Assistance
Act of 1961 and title I of Public Law 106–570, for child
survival, reproductive health, assistance to combat tropical
and other infectious diseases, and related activities, in ad-
dition to funds otherwise available for such purposes,
$1,387,000,000 (increased by $18,000,000) (increased by
$20,000,000), to remain available until expended: Pro-
vided, That this amount shall be made available for such
activities as: (1) immunization programs; (2) oral rehydra-
tion programs; (3) health, nutrition, water and sanitation
programs, and related education programs, which directly
address the needs of mothers and children; (4) assistance
for displaced and orphaned children; (5) programs for the
prevention, treatment, and control of, and research on, tu-
berculosis, HIV/AIDS, polio, malaria and other infectious
diseases; and (6) reproductive health: Provided further,
That none of the funds appropriated under this heading
may be made available for nonproject assistance, except
that funds may be made available for such assistance for
ongoing health programs: Provided further, That of the
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funds appropriated under this heading, not to exceed
$125,000, in addition to funds otherwise available for such
purposes, may be used to monitor and provide oversight
of child survival, maternal health, and infectious disease
programs: Provided further, That the following amounts
should be allocated as follows: $295,000,000 for child sur-
vival and maternal health; $25,000,000 (increased by
$5,000,000) for vulnerable children; $434,000,000 (in-
creased by $13,000,000) for HIV/AIDS; $155,000,000
(increased by $20,000,000) for other infectious diseases;
$120,000,000 for UNICEF; and $358,000,000 for repro-
ductive health: Provided further, That of the funds appro-
priated under this heading, up to $60,000,000 may be
made available for a United States contribution to the The
Vaccine Fund and up to $10,000,000 may be made avail-
able for the International AIDS Vaccine Initiative: Pro-
vided further, That of the funds appropriated under this
heading and under the heading ‘‘Child Survival and Dis-
ease Programs Fund’’ in the Foreign Operations, Export
Financing, and Related Programs Appropriations Act,
2001, up to $100,000,000 may be made available for a
United States contribution to a multilateral trust fund to
fight HIV/AIDS, malaria, and tuberculosis: Provided fur-
ther, That none of the funds made available in this Act
nor any unobligated balances from prior appropriations
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may be made available to any organization or program
which, as determined by the President of the United
States, supports or participates in the management of a
program of coercive abortion or involuntary sterilization:
Provided further, That none of the funds made available
under this heading may be used to pay for the perform-
ance of abortion as a method of family planning or to mo-
tivate or coerce any person to practice abortions; and that
in order to reduce reliance on abortion in developing na-
tions, funds shall be available only to voluntary family
planning projects which offer, either directly or through
referral to, or information about access to, a broad range
of family planning methods and services, and that any
such voluntary family planning project shall meet the fol-
lowing requirements: (1) service providers or referral
agents in the project shall not implement or be subject
to quotas, or other numerical targets, of total number of
births, number of family planning acceptors, or acceptors
of a particular method of family planning (this provision
shall not be construed to include the use of quantitative
estimates or indicators for budgeting and planning pur-
poses); (2) the project shall not include payment of incen-
tives, bribes, gratuities, or financial reward to: (A) an indi-
vidual in exchange for becoming a family planning accep-
tor; or (B) program personnel for achieving a numerical
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target or quota of total number of births, number of fam-
ily planning acceptors, or acceptors of a particular method
of family planning; (3) the project shall not deny any right
or benefit, including the right of access to participate in
any program of general welfare or the right of access to
health care, as a consequence of any individual’s decision
not to accept family planning services; (4) the project shall
provide family planning acceptors comprehensible infor-
mation on the health benefits and risks of the method cho-
sen, including those conditions that might render the use
of the method inadvisable and those adverse side effects
known to be consequent to the use of the method; and
(5) the project shall ensure that experimental contracep-
tive drugs and devices and medical procedures are pro-
vided only in the context of a scientific study in which
participants are advised of potential risks and benefits;
and, not less than 60 days after the date on which the
Administrator of the United States Agency for Inter-
national Development determines that there has been a
violation of the requirements contained in paragraph (1),
(2), (3), or (5) of this proviso, or a pattern or practice
of violations of the requirements contained in paragraph
(4) of this proviso, the Administrator shall submit to the
Committee on International Relations and the Committee
on Appropriations of the House of Representatives and to
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the Committee on Foreign Relations and the Committee
on Appropriations of the Senate, a report containing a de-
scription of such violation and the corrective action taken
by the Agency: Provided further, That in awarding grants
for natural family planning under section 104 of the For-
eign Assistance Act of 1961 no applicant shall be discrimi-
nated against because of such applicant’s religious or con-
scientious commitment to offer only natural family plan-
ning; and, additionally, all such applicants shall comply
with the requirements of the previous proviso: Provided
further, That for purposes of this or any other Act author-
izing or appropriating funds for foreign operations, export
financing, and related programs, the term ‘‘motivate’’, as
it relates to family planning assistance, shall not be con-
strued to prohibit the provision, consistent with local law,
of information or counseling about all pregnancy options:
Provided further, That nothing in this paragraph shall be
construed to alter any existing statutory prohibitions
against abortion under section 104 of the Foreign Assist-
ance Act of 1961: Provided further, That of the amount
made
available
under
this
heading
for
HIV/AIDS,
$5,000,000 shall be for assistance to prevent mother-to-
child HIV/AIDS transmission through effective partner-
ships with nongovernmental organizations and research
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facilities pursuant to section 104(c)(5) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2151b(c)(5)).
DEVELOPMENT ASSISTANCE
For necessary expenses to carry out the provisions
of sections 103, 105, 106, and 131, and chapter 10 of
part
I
of
the
Foreign
Assistance
Act
of
1961,
$1,098,000,000, to remain available until September 30,
2003: Provided, That none of the funds appropriated
under this heading may be made available for any activity
which is in contravention to the Convention on Inter-
national Trade in Endangered Species of Flora and Fauna
(CITES): Provided further, That of the funds appro-
priated under this heading that are made available for as-
sistance programs for displaced and orphaned children
and victims of war, not to exceed $25,000, in addition to
funds otherwise available for such purposes, may be used
to monitor and provide oversight of such programs: Pro-
vided further, That $135,000,000 should be allocated for
children’s basic education.
INTERNATIONAL DISASTER ASSISTANCE
For necessary expenses for international disaster re-
lief, rehabilitation, and reconstruction assistance pursuant
to section 491 of the Foreign Assistance Act of 1961, as
amended, $200,000,000 (increased by $1,000,000), to re-
main available until expended.
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TRANSITION INITIATIVES
For necessary expenses for international disaster re-
habilitation and reconstruction assistance pursuant to sec-
tion
491
of
the
Foreign
Assistance
Act
of
1961,
$40,000,000, to remain available until expended, to sup-
port transition to democracy and to long-term develop-
ment of countries in crisis: Provided, That such support
may include assistance to develop, strengthen, or preserve
democratic institutions and processes, revitalize basic in-
frastructure, and foster the peaceful resolution of conflict:
Provided further, That the United States Agency for Inter-
national Development shall submit a report to the Com-
mittees on Appropriations at least 5 days prior to begin-
ning a new program of assistance.
DEVELOPMENT CREDIT AUTHORITY
(INCLUDING TRANSFER OF FUNDS)
For the cost of loan guarantees, up to $12,500,000,
as authorized by sections 108 and 635 of the Foreign As-
sistance Act of 1961: Provided, That such funds shall be
derived by transfer from funds appropriated by this Act
to carry out part I of the Foreign Assistance Act of 1961,
and under the heading ‘‘Assistance for Eastern Europe
and the Baltic States’’: Provided further, That such funds
shall be made available only for micro and small enterprise
programs and other programs which further the purposes
of part I of the Act: Provided further, That during fiscal
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year 2002, commitments to guarantee loans shall not ex-
ceed $177,500,000: Provided further, That such costs shall
be as defined in section 502 of the Congressional Budget
Act of 1974: Provided further, That the provisions of sec-
tion 107A(d) (relating to general provisions applicable to
the Development Credit Authority) of the Foreign Assist-
ance Act of 1961, as contained in section 306 of H.R.
1486 as reported by the House Committee on Inter-
national Relations on May 9, 1997, shall be applicable to
loan guarantees provided under this heading. In addition,
for administrative expenses to carry out credit programs
administered by the United States Agency for Inter-
national Development, $7,500,000, all of which may be
transferred to and merged with the appropriation for Op-
erating Expenses of the Agency for International Develop-
ment: Provided further, That funds appropriated under
this heading shall remain available until September 30,
2003.
PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND
DISABILITY FUND
For payment to the ‘‘Foreign Service Retirement and
Disability Fund’’, as authorized by the Foreign Service
Act of 1980, $44,880,000.
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OPERATING EXPENSES OF THE UNITED STATES AGENCY
FOR INTERNATIONAL DEVELOPMENT
For necessary expenses to carry out the provisions
of section 667, $549,000,000: Provided, That none of the
funds appropriated under this heading may be made avail-
able to finance the construction (including architect and
engineering services), purchase, or long term lease of of-
fices for use by the United States Agency for International
Development, unless the Administrator has identified such
proposed construction (including architect and engineering
services), purchase, or long term lease of offices in a re-
port submitted to the Committees on Appropriations at
least 15 days prior to the obligation of these funds for
such purposes: Provided further, That the previous proviso
shall not apply where the total cost of construction (in-
cluding architect and engineering services), purchase, or
long term lease of offices does not exceed $1,000,000.
OPERATING EXPENSES OF THE UNITED STATES AGENCY
FOR INTERNATIONAL DEVELOPMENT OFFICE OF IN-
SPECTOR GENERAL
For necessary expenses to carry out the provisions
of section 667, $30,000,000, to remain available until Sep-
tember 30, 2003, which sum shall be available for the Of-
fice of the Inspector General of the United States Agency
for International Development.
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OTHER BILATERAL ECONOMIC ASSISTANCE
ECONOMIC SUPPORT FUND
For necessary expenses to carry out the provisions
of chapter 4 of part II, $2,199,000,000, to remain avail-
able until September 30, 2003: Provided, That of the
funds appropriated under this heading, not less than
$720,000,000 shall be available only for Israel, which sum
shall be available on a grant basis as a cash transfer and
shall be disbursed within 30 days of the enactment of this
Act or by October 31, 2001, whichever is later: Provided
further, That not less than $655,000,000 shall be available
only for Egypt, which sum shall be provided on a grant
basis, and of which sum cash transfer assistance shall be
provided with the understanding that Egypt will under-
take significant economic reforms which are additional to
those which were undertaken in previous fiscal years: Pro-
vided further, That in exercising the authority to provide
cash transfer assistance for Israel, the President shall en-
sure that the level of such assistance does not cause an
adverse impact on the total level of nonmilitary exports
from the United States to such country and that Israel
enters into a side letter agreement in an amount propor-
tional to the fiscal year 1999 agreement: Provided further,
That not less than $35,000,000 of the funds appropriated
under this heading should be made available for Lebanon
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to be used, among other programs, for scholarships and
direct support of the American educational institutions in
Lebanon:
Provided
further,
That
not
less
than
$15,000,000 of the funds appropriated under this heading
should be made available for Cyprus to be used only for
scholarships, administrative support of the scholarship
program, bicommunal projects, and measures aimed at re-
unification of the island and designed to reduce tensions
and promote peace and cooperation between the two com-
munities on Cyprus: Provided further, That funds appro-
priated under this heading may be used, notwithstanding
any other provision of law, to provide assistance to the
National Democratic Alliance of Sudan to strengthen its
ability to protect civilians from attacks, slave raids, and
aerial bombardment by the Sudanese Government forces
and its militia allies, and the provision of such funds shall
be subject to the regular notification procedures of the
Committees on Appropriations: Provided further, That in
the previous proviso, the term ‘‘assistance’’ includes non-
lethal, non-food aid such as blankets, medicine, fuel, mo-
bile clinics, water drilling equipment, communications
equipment to notify civilians of aerial bombardment, non-
military vehicles, tents, and shoes.
INTERNATIONAL FUND FOR IRELAND
For necessary expenses to carry out the provisions
of chapter 4 of part II of the Foreign Assistance Act of
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1961, $25,000,000, which shall be available for the United
States contribution to the International Fund for Ireland
and shall be made available in accordance with the provi-
sions of the Anglo-Irish Agreement Support Act of 1986
(Public Law 99–415): Provided, That such amount shall
be expended at the minimum rate necessary to make time-
ly payment for projects and activities: Provided further,
That funds made available under this heading shall re-
main available until September 30, 2003.
ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC
STATES
(a) For necessary expenses to carry out the provisions
of the Foreign Assistance Act of 1961 and the Support
for East European Democracy (SEED) Act of 1989,
$600,000,000, to remain available until September 30,
2003, which shall be available, notwithstanding any other
provision of law, for assistance and for related programs
for Eastern Europe and the Baltic States: Provided, That
funds made available for assistance for Kosovo from funds
appropriated under this heading and under the headings
‘‘Economic Support Fund’’ and ‘‘International Narcotics
Control and Law Enforcement’’ should not exceed 15 per-
cent of the total resources pledged by all donors for cal-
endar year 2002 for assistance for Kosovo as of March
31, 2002: Provided further, That none of the funds made
available under this Act for assistance for Kosovo shall
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be made available for large scale physical infrastructure
reconstruction.
(b) Funds appropriated under this heading or in prior
appropriations Acts that are or have been made available
for an Enterprise Fund may be deposited by such Fund
in interest-bearing accounts prior to the Fund’s disburse-
ment of such funds for program purposes. The Fund may
retain for such program purposes any interest earned on
such deposits without returning such interest to the Treas-
ury of the United States and without further appropria-
tion by the Congress. Funds made available for Enterprise
Funds shall be expended at the minimum rate necessary
to make timely payment for projects and activities.
(c) Funds appropriated under this heading shall be
considered to be economic assistance under the Foreign
Assistance Act of 1961 for purposes of making available
the administrative authorities contained in that Act for
the use of economic assistance.
(d) With regard to funds appropriated under this
heading for the economic revitalization program in Bosnia
and Herzegovina, and local currencies generated by such
funds (including the conversion of funds appropriated
under this heading into currency used by Bosnia and
Herzegovina as local currency and local currency returned
or repaid under such program) the Administrator of the