‘‘(C) has been designated, in the most re-
cent Department of State ‘Trafficking in Per-
sons Report’, as a ‘Tier 3’ nation pursuant to 
the Victims of Trafficking and Violence Protec-
tion Act of 2000 (Public Law 106–386) for its 
failure to cooperate on international trafficking 
in persons prevention efforts. 
‘‘(4) PROGRAMS
TO
COMBAT
POVERTY.—A 
country that is otherwise eligible to receive cancella-
tion of debt under the Enhanced HIPC Initiative 
may receive such cancellation only if the country has 
agreed—
‘‘(A) to ensure that the financial benefits 
of debt cancellation are applied to programs to 
combat poverty (in particular through concrete 
measures to improve basic services in education, 
nutrition, and health), and to redress environ-
mental degradation; 
‘‘(B) to ensure that the financial benefits 
of debt cancellation are in addition to the gov-
ernment’s total spending on programs to com-
bat poverty for the previous year or the average 
total of such expenditures for the previous 3 
years, whichever is greater;
‘‘(C) 
to 
implement 
transparent 
and 
participatory policymaking and budget proce-
dures, 
good 
governance, 
and 
effective 
anticorruption measures; and 
‘‘(D) to broaden public participation and 
popular understanding of the principles and 
goals of poverty reduction. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) AIDS.—The term ‘‘AIDS’’ means the ac-
quired immune deficiency syndrome. 
‘‘(2) PUBLIC
HEALTH
CRISIS.—A country is 
deemed to be suffering ‘a public health crisis’ if—
‘‘(A) the nationwide HIV/AIDS infection 
rate for the country, as reported in the most re-
cent epidemiological data as compiled by the 
Joint United Nations Program on HIV/AIDS, 
is at least 5 percent among women attending 
prenatal clinics, or 20 percent or more among 
individuals in groups with high-risk behavior; or 
‘‘(B) the country is suffering a health cri-
sis or epidemic, as defined by the World Health 
Organization. 
‘‘(3) DECISION
POINT.—The term ‘Decision 
Point’ means the date on which the executive boards 
of the World Bank and the International Monetary
Fund review the debt sustainability analysis for a 
country and determine that the country is eligible 
for debt relief under the Enhanced HIPC Initiative. 
‘‘(4) ENHANCED HIPC INITIATIVE.—The term 
‘Enhanced HIPC Initiative’ means the multilateral 
debt initiative for heavily indebted poor countries 
presented in the Report of G–7 Finance Ministers 
on the Cologne Debt Initiative to the Cologne Eco-
nomic Summit, Cologne, June 18–20, 1999. 
‘‘(5) HIV.—The term ‘HIV’ means the human 
immunodeficiency virus, the pathogen that causes 
AIDS. 
‘‘(6) 
HIV/AIDS.—The 
term 
‘HIV/AIDS’ 
means, with respect to an individual, an individual 
who is infected with HIV or living with AIDS.’’. 
SEC. 3. MODIFICATION OF DETERMINATION OF COUNTRIES 
SUPPORTING TERRORISM UNDER CERTAIN 
INTERNATIONAL AFFAIRS LAWS. 
(a) FOREIGN ASSISTANCE ACT OF 1961.—
(1) GENERAL PROHIBITION ON ASSISTANCE.—
Section 620A(a) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2371(a)) is amended by inserting 
after ‘‘international terrorism’’ the following: ‘‘or 
has failed to cooperate with the United States on ef-
forts to combat international terrorism’’.
(2) ENTERPRISE FOR THE AMERICAS INITIA-
TIVE.—Section 703(a)(2) of such Act (22 U.S.C. 
2430b(a)(2)) is amended by inserting after ‘‘inter-
national terrorism’’ the following: ‘‘and has cooper-
ated with the United States on efforts to combat 
international terrorism’’. 
(b) ARMS EXPORT CONTROL ACT.—
(1) 
GENERAL
PROHIBITION
ON
TRANS-
ACTIONS.—Section 40(d) of the Arms Export Con-
trol Act (22 U.S.C. 2780(d)) is amended in the first 
sentence by inserting after ‘‘international terrorism’’ 
the following: ‘‘or has failed to cooperate with the 
United States on efforts to combat international ter-
rorism’’. 
(2) TRANSFER
OF
MISSILE
EQUIPMENT
OR 
TECHNOLOGY BY UNITED STATES PERSON.—Section 
72(c) of such Act (22 U.S.C. 2797a(c)) is amended 
by inserting after ‘‘international terrorism’’ the fol-
lowing: ‘‘or has failed to cooperate with the United 
States on efforts to combat international terrorism’’. 
(3) TRANSFER
OF
MISSILE
EQUIPMENT
OR 
TECHNOLOGY BY FOREIGN PERSON.—Section 73(f) 
of such Act (22 U.S.C. 2797b(f)) is amended by in-
serting after ‘‘international terrorism’’ the following:
‘‘or has failed to cooperate with the United States 
on efforts to combat international terrorism’’. 
(4) TRANSFER OF CHEMICAL OR BIOLOGICAL 
WEAPONS
BY
FOREIGN
PERSON.—Section 
81(a)(2)(B) of such Act (22 U.S.C. 2798(a)(2)(B)) 
is amended by inserting after ‘‘international ter-
rorism’’ the following: ‘‘or has failed to cooperate 
with the United States on efforts to combat inter-
national terrorism’’. 
(c) EXPORT ADMINISTRATION ACT OF 1979.—
(1) 
GENERAL
REQUIREMENTS.—Section 
6(j)(1)(A) of the Export Administration Act of 1979 
(50 U.S.C. app. 2405(j)(1)(A)) is amended—
(A) in subsection (j)(1)(A), by inserting 
after ‘‘international terrorism’’ the following: 
‘‘or has failed to cooperate with the United 
States on efforts to combat international ter-
rorism’’; and 
(B) in subsection (l)(3)(B), by inserting 
after ‘‘international terrorism’’ the following: 
‘‘or to have failed to cooperate with the United 
States on efforts to combat international ter-
rorism’’. 
(2) TRANSFER OF CHEMICAL OR BIOLOGICAL 
WEAPONS
BY
FOREIGN
PERSON.—Section
SEC. 5. REPORT ON EXPANSION OF DEBT RELIEF TO NON-
HIPC COUNTRIES. 
(a) IN GENERAL.—Within 90 days after the date of 
the enactment of this Act, the Secretary of the Treasury 
shall submit to the Congress a report on—
(1) the options and costs associated with ex-
panding debt relief to include poor countries who 
were not eligible for inclusion in the Enhanced 
HIPC Initiative; 
(2) options for burden-sharing among donor 
countries and multilateral institutions of costs asso-
ciate with expanding debt relief; and 
(3) options, in addition to the Enhanced HIPC 
Initiative, to ensure debt sustainability in poor coun-
tries, particularly in cases when the poor country 
has suffered an external economic shock or a natural 
disaster. 
(b) SPECIFIC
OPTIONS
TO
BE
CONSIDERED.—
Among the options for expansion of debt relief, consider-
ation should be given to making eligible for the relief poor 
countries for which outstanding public and publicly guar-
anteed debt requires annual payments in excess of 10 per-
cent or, in the case of countries suffering a public health 
crisis, 5 percent of the amount of the annual current reve-
nues received by the countries from internal sources.
(c) ENHANCED HIPC INITIATIVE DEFINED.—In this 
section, the term ‘‘Enhanced HIPC Initiative’’ means the 
multilateral debt initiative for heavily indebted poor coun-
tries presented in the Report of G–7 Finance Ministers 
on the Cologne Debt Initiative to the Cologne Economic 
Summit, Cologne, June 18–20, 1999.
Æ