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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,
$41,500,000, to remain available until September 30,
2000: Provided, That the Trade and Development Agency
may receive reimbursements from corporations and other
entities for the costs of grants for feasibility studies and
other project planning services, to be deposited as an off-
setting collection to this account and to be available for
obligation until September 30, 2000, for necessary ex-
penses under this paragraph: Provided further, That such
reimbursements shall not cover, or be allocated against,
direct or indirect administrative costs of the agency.
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
September 30, 1999, unless otherwise specified herein, as
follows:
AGENCY FOR INTERNATIONAL DEVELOPMENT
CHILD SURVIVAL AND DISEASE 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, for child survival, basic education, assistance
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to combat tropical and other diseases, and related activi-
ties, in addition to funds otherwise available for such pur-
poses, $650,000,000, to remain available until expended:
Provided, That this amount shall be made available for
such activities as: (1) immunization programs; (2) oral re-
hydration programs; (3) health and nutrition programs,
and related education programs, which address the needs
of mothers and children; (4) water and sanitation pro-
grams; (5) assistance for displaced and orphaned children;
(6) programs for the prevention, treatment, and control
of, and research on, tuberculosis, HIV/AIDS, polio, ma-
laria and other diseases; and (7) up to $98,000,000 for
basic education programs for children: Provided further,
That none of the funds appropriated under this heading
may be made available for nonproject assistance.
DEVELOPMENT ASSISTANCE
(INCLUDING TRANSFER OF FUNDS)
For necessary expenses to carry out the provisions
of sections 103 through 106 and chapter 10 of part I of
the Foreign Assistance Act of 1961, $1,174,000,000, to
remain available until September 30, 2000: Provided,
That none of the funds made available in this Act nor
any unobligated balances from prior appropriations may
be made available to any organization or program which,
as determined by the President of the United States, sup-
ports or participates in the management of a program of
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coercive abortion or involuntary sterilization: Provided fur-
ther, That none of the funds made available under this
heading may be used to pay for the performance of abor-
tion as a method of family planning or to motivate or co-
erce any person to practice abortions; and that in order
to reduce reliance on abortion in developing nations, 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: Provided further, That in
awarding grants for natural family planning under section
104 of the Foreign Assistance Act of 1961 no applicant
shall be discriminated against because of such applicant’s
religious or conscientious commitment to offer only natu-
ral family planning; 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 authorizing or appropriating funds for foreign oper-
ations, export financing, and related programs, the term
‘‘motivate’’, as it relates to family planning assistance,
shall not be construed to prohibit the provision, consistent
with local law, of information or counseling about all preg-
nancy options: Provided further, That nothing in this para-
graph shall be construed to alter any existing statutory
prohibitions against abortion under section 104 of the
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Foreign Assistance Act of 1961: Provided further, That,
notwithstanding section 109 of the Foreign Assistance Act
of 1961, of the funds appropriated under this heading in
this Act, and of the unobligated balances of funds pre-
viously appropriated under this heading, not to exceed
$2,500,000 may be transferred to ‘‘International Organi-
zations and Programs’’ for a contribution to the Inter-
national Fund for Agricultural Development (IFAD), and
that any such transfer of funds shall be subject to the
regular notification procedures of the Committees on Ap-
propriations: Provided further, That none of the funds ap-
propriated under this heading may be made available for
any activity which is in contravention to the Convention
on International Trade in Endangered Species of Flora
and Fauna (CITES): Provided further, That none of the
funds appropriated under this heading may be made avail-
able for assistance for the central Government of the Re-
public of South Africa, until the Secretary of State reports
in writing to the appropriate committees of the Congress
on the steps being taken by the United States Government
to negotiate the repeal, suspension, or termination of sec-
tion 15(c) of South Africa’s Medicines and Related Sub-
stances Control Amendment Act No. 90 of 1997.
PRIVATE AND VOLUNTARY ORGANIZATIONS
None of the funds appropriated by this Act for devel-
opment assistance may be made available to any United
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States private and voluntary organization, except any co-
operative development organization, which obtains less
than 20 percent of its total annual funding for inter-
national activities from sources other than the United
States Government: Provided, That the requirements of
the provisions of section 123(g) of the Foreign Assistance
Act of 1961 and the provisions on private and voluntary
organizations in title II of the Foreign Assistance and Re-
lated Programs Appropriations Act, 1985 (as enacted in
Public Law 98–473) shall be superseded by the provisions
of this section, except that the authority contained in the
last sentence of section 123(g) may be exercised by the
Administrator with regard to the requirements of this
paragraph.
Funds appropriated under title II of this Act should
be made available to private and voluntary organizations
at a level which is at least equivalent to the level provided
in fiscal year 1995. Such private and voluntary organiza-
tions shall include those which operate on a not-for-profit
basis, receive contributions from private sources, receive
voluntary support from the public and are deemed to be
among the most cost-effective and successful providers of
development assistance.
INTERNATIONAL DISASTER ASSISTANCE
For necessary expenses for international disaster re-
lief, rehabilitation, and reconstruction assistance pursuant
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to section 491 of the Foreign Assistance Act of 1961, as
amended, $150,000,000, to remain available until ex-
pended.
MICRO AND SMALL ENTERPRISE DEVELOPMENT PROGRAM
ACCOUNT
For the cost of direct loans and loan guarantees,
$1,500,000, as authorized by section 108 of the Foreign
Assistance Act of 1961, as amended: Provided, That such
costs shall be as defined in section 502 of the Congres-
sional Budget Act of 1974: Provided further, That guaran-
tees of loans made under this heading in support of micro-
enterprise activities may guarantee up to 70 percent of
the principal amount of any such loans notwithstanding
section 108 of the Foreign Assistance Act of 1961. In ad-
dition, for administrative expenses to carry out programs
under this heading, $500,000, all of which may be trans-
ferred to and merged with the appropriation for Operating
Expenses of the Agency for International Development:
Provided further, That funds made available under this
heading shall remain available until September 30, 2000.
URBAN AND ENVIRONMENTAL CREDIT PROGRAM
ACCOUNT
For administrative expenses to carry out guaranteed
loan programs, $5,500,000, all of which may be trans-
ferred to and merged with the appropriation for Operating
Expenses of the Agency for International Development.
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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, $44,552,000.
OPERATING EXPENSES OF THE AGENCY FOR
INTERNATIONAL DEVELOPMENT
For necessary expenses to carry out the provisions
of section 667, $460,000,000: Provided, That none of the
funds appropriated by this Act for programs administered
by the Agency for International Development may be used
to finance printing costs of any report or study (except
feasibility, design, or evaluation reports or studies) in ex-
cess of $25,000 without the approval of the Administrator
of the Agency or the Administrator’s designee.
OPERATING
EXPENSES
OF
THE
AGENCY
FOR
INTER-
NATIONAL
DEVELOPMENT
OFFICE
OF
INSPECTOR
GENERAL
For necessary expenses to carry out the provisions
of section 667, $31,500,000, to remain available until Sep-
tember 30, 2000, which sum shall be available for the Of-
fice of the Inspector General of the Agency for Inter-
national 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, $2,326,000,000, to remain avail-
able until September 30, 2000: Provided, That of the
funds appropriated under this heading, not to exceed
$1,080,000,000 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 enactment of this
Act or by October 31, 1998, whichever is later: Provided
further, That not to exceed $775,000,000 shall be avail-
able only for Egypt, which sum shall be provided on a
grant basis, and of which sum cash transfer assistance
may be provided, with the understanding that Egypt will
undertake significant economic reforms which are addi-
tional to those which were undertaken in previous fiscal
years: Provided further, That in exercising the authority
to provide cash transfer assistance for Israel, the Presi-
dent shall ensure that the level of such assistance does
not cause an adverse impact on the total level of non-
military exports from the United States to such country.
INTERNATIONAL FUND FOR IRELAND
For necessary expenses to carry out the provisions
of chapter 4 of part II of the Foreign Assistance Act of
1961, $19,600,000, which shall be available for the United
States contribution to the International Fund for Ireland
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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, 2000.
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,
$450,000,000, to remain available until September 30,
2000, which shall be available, notwithstanding any other
provision of law, for economic assistance and for related
programs for Eastern Europe and the Baltic States.
(b) 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.
(c) None of the funds appropriated under this head-
ing may be made available for new housing construction
or repair or reconstruction of existing housing in Bosnia
and Herzegovina unless directly related to the efforts of
United States troops to promote peace in said country.
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(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)—
(1) the Administrator of the Agency for Inter-
national Development shall provide written approval
for grants and loans prior to the obligation and ex-
penditure of funds for such purposes, and prior to
the use of funds that have been returned or repaid
to any lending facility or grantee; and
(2) the provisions of section 532 of this Act
shall apply.
(e) The President is authorized to withhold funds ap-
propriated under this heading made available for economic
revitalization programs in Bosnia and Herzegovina, if he
determines and certifies to the Committees on Appropria-
tions that the Federation of Bosnia and Herzegovina has
not complied with article III of annex 1–A of the General
Framework Agreement for Peace in Bosnia and
Herzegovina concerning the withdrawal of foreign forces,
and that intelligence cooperation on training, investiga-
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tions, and related activities between Iranian officials and
Bosnian officials has not been terminated.
(f) Not to exceed $225,000,000 of the funds appro-
priated under this heading may be made available for Bos-
nia and Herzegovina.
(g) 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.
ASSISTANCE FOR THE NEW INDEPENDENT STATES OF
THE FORMER SOVIET UNION
(a) For necessary expenses to carry out the provisions
of chapter 11 of part I of the Foreign Assistance Act of
1961 and the FREEDOM Support Act, for assistance for
the new independent states of the former Soviet Union
and for related programs, $590,000,000, to remain avail-
able until September 30, 2000: Provided, That the provi-
sions of such chapter shall apply to funds appropriated
by this paragraph.
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(b) Funds appropriated under title II of this Act, in-
cluding funds appropriated under this heading, should be
made available for assistance for Mongolia at a level which
is at least equivalent to the level provided in fiscal year
1998: Provided, That funds made available for assistance
for Mongolia may be made available in accordance with
the purposes and utilizing the authorities provided in
chapter 11 of part I of the Foreign Assistance Act of
1961.
(c)(1) Of the funds appropriated under this heading
that are allocated for assistance for the Government of
Russia, 50 percent shall be withheld from obligation until
the President determines and certifies in writing to the
Committees on Appropriations that the Government of
Russia has terminated implementation of arrangements to
provide Iran with technical expertise, training, technology,
or equipment necessary to develop a nuclear reactor, relat-
ed nuclear research facilities or programs, or ballistic mis-
sile capability.
(2) Notwithstanding paragraph (1) assistance may be
provided for the Government of Russia if the President
determines and certifies to the Committees on Appropria-
tions that making such funds available: (A) is vital to the
national security interest of the United States; and (B)
that the Government of Russia is taking meaningful steps
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to limit major supply contracts and to curtail the transfer
of technology and technological expertise related to activi-
ties referred to in paragraph (1).
(d) Not more than 25 percent of the funds appro-
priated under this heading may be made available for as-
sistance for any country in the region.
(e) Of the funds appropriated under this heading, not
less than 33 percent shall be made available for assistance
for the Southern Caucasus region: Provided, That of the
funds made available for the Southern Caucasus region,
40 percent should be used for reconstruction and other
activities relating to the peaceful resolution of conflicts
within the region, especially those in the vicinity of
Abkhazia and Nagorno-Karabakh: Provided further, That
funds made available to parties participating in the Minsk
Process under the first proviso of this subsection shall be
provided only to those parties which agree to participate
in direct or proximity negotiations without preconditions
to resolve conflicts in the region: Provided further, That
if the Secretary of State after May 30, 1999, determines
and reports to the relevant committees of Congress that
the full amount of funds that may be made available under
the first proviso cannot be effectively utilized, the amount
provided under the previous proviso may be used for other
purposes under this heading.
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(f) Funds provided under the previous subsection
shall be made available for humanitarian assistance for
refugees, displaced persons, and needy civilians affected
by the conflicts in the Southern Caucasus region, includ-
ing those in Abkhazia and Nagorno-Karabakh, notwith-
standing any other provision of this or any other Act.
(g) Section 907 of the FREEDOM Support Act shall
not apply to—
(1) activities to support democracy or assist-
ance under title V of the FREEDOM Support Act
and section 1424 of Public Law 104–201;
(2) any assistance provided by the Trade and
Development Agency under section 661 of the For-
eign Assistance Act of 1961 (22 U.S.C. 2421); and
(3) any activity carried out by a member of the
United States and Foreign Commercial Service while
acting within his or her official capacity.
(h) 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 disbursement of such funds for program purposes.
The Fund may retain for such program purposes any in-
terest earned on such deposits without returning such in-
terest to the Treasury of the United States and without
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further appropriation by the Congress. Funds made avail-
able for Enterprise Funds shall be expended at the mini-
mum rate necessary to make timely payment for projects
and activities.
INDEPENDENT AGENCIES
INTER-AMERICAN FOUNDATION
For expenses necessary to carry out the functions of
the Inter-American Foundation in accordance with the
provisions of section 401 of the Foreign Assistance Act
of 1969, and to make commitments without regard to fis-
cal year limitations, as provided by 31 U.S.C. 9104(b)(3),
$20,680,000.
AFRICAN DEVELOPMENT FOUNDATION
For expenses necessary to carry out title V of the
International Security and Development Cooperation Act
of 1980, Public Law 96–533, and to make commitments
without regard to fiscal year limitations (31 U.S.C.
9104(b)(3)), $13,160,000: Provided, That funds made
available to grantees may be invested pending expenditure
for project purposes when authorized by the President of
the Foundation: Provided further, That interest earned
shall be used only for the purposes for which the grant
was made: Provided further, That this authority applies
to interest earned both prior to and following enactment
of this provision: Provided further, That notwithstanding
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section 505(a)(2) of the African Development Foundation
Act, in exceptional circumstances the board of directors
of the Foundation may waive the $250,000 limitation con-
tained in that section with respect to a project: Provided
further, That the Foundation shall provide a report to the
Committees on Appropriations after each time such waiver
authority is exercised.
PEACE CORPS
For expenses necessary to carry out the provisions
of the Peace Corps Act (75 Stat. 612), $230,000,000, in-
cluding the purchase of not to exceed five passenger motor
vehicles for administrative purposes for use outside of the
United States: Provided, That none of the funds appro-
priated under this heading shall be used to pay for abor-
tions: Provided further, That funds appropriated under
this heading shall remain available until September 30,
2000.
DEPARTMENT OF STATE
INTERNATIONAL NARCOTICS CONTROL
For necessary expenses to carry out section 481 of
the Foreign Assistance Act of 1961, $275,000,000: Pro-
vided, That during fiscal year 1999, the Department of
State may also use the authority of section 608 of the
Act, without regard to its restrictions, to receive excess
property from an agency of the United States Government
for the purpose of providing it to a foreign country under
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chapter 8 of part I of that Act subject to the regular noti-
fication procedures of the Committees on Appropriations.
MIGRATION AND REFUGEE ASSISTANCE
For expenses, not otherwise provided for, necessary
to enable the Secretary of State to provide, as authorized
by law, a contribution to the International Committee of
the Red Cross, assistance to refugees, including contribu-
tions to the International Organization for Migration and
the United Nations High Commissioner for Refugees, and
other activities to meet refugee and migration needs; sala-
ries and expenses of personnel and dependents as author-
ized by the Foreign Service Act of 1980; allowances as
authorized by sections 5921 through 5925 of title 5,
United States Code; purchase and hire of passenger motor
vehicles; and services as authorized by section 3109 of title
5, United States Code, $640,000,000: Provided, That not
more than $12,000,000 shall be available for administra-
tive expenses.
UNITED STATES EMERGENCY REFUGEE AND MIGRATION
ASSISTANCE FUND
For necessary expenses to carry out the provisions
of section 2(c) of the Migration and Refugee Assistance
Act 
of 
1962, 
as 
amended 
(22 
U.S.C. 
260(c)),
$30,000,000, to remain available until expended: Pro-
vided, That the funds made available under this heading
are appropriated notwithstanding the provisions contained
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in section 2(c)(2) of the Migration and Refugee Assistance
Act of 1962 which would limit the amount of funds which
could be appropriated for this purpose.
NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND
RELATED PROGRAMS
For necessary expenses for nonproliferation, anti-ter-
rorism and related programs and activities, $152,000,000,
to carry out the provisions of chapter 8 of part II of the
Foreign Assistance Act of 1961 for anti-terrorism assist-
ance, section 504 of the FREEDOM Support Act for the
Nonproliferation and Disarmament Fund, section 23 of
the Arms Export Control Act or the Foreign Assistance
Act of 1961 for demining, the clearance of unexploded
ordnance, and related activities, notwithstanding any
other provision of law, including activities implemented
through nongovernmental and international organizations,
section 301 of the Foreign Assistance Act of 1961 for a
voluntary contribution to the International Atomic Energy
Agency (IAEA), and for a United States contribution to
the Comprehensive Nuclear Test Ban Treaty Preparatory
Commission: Provided, That of this amount not to exceed
$15,000,000, to remain available until expended, may be
made available for the Nonproliferation and Disarmament
Fund, notwithstanding any other provision of law, to pro-
mote bilateral and multilateral activities relating to non-
proliferation and disarmament: Provided further, That
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such funds may also be used for such countries other than
the new independent states of the former Soviet Union
and international organizations when it is in the national
security interest of the United States to do so: Provided
further, That such funds shall be subject to the regular
notification procedures of the Committees on Appropria-
tions: Provided further, That funds appropriated under
this heading may be made available for the International
Atomic Energy Agency only if the Secretary of State de-
termines (and so reports to the Congress) that Israel is
not being denied its right to participate in the activities
of that Agency: Provided further, That the Secretary of
State shall submit to the appropriate congressional com-
mittees an annual report (to be submitted with the annual
presentation for appropriations) providing a full and de-
tailed accounting of the fiscal year request for the United
States contribution to KEDO, the expected operating
budget of KEDO, to include unpaid debt, proposed annual
costs associated with heavy fuel oil purchases, and the
amount of funds pledged by other donor nations and orga-
nizations to support KEDO activities on a per country
basis, and other related activities.
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DEPARTMENT OF THE TREASURY
DEBT RESTRUCTURING
For the cost, as defined in section 502 of the Con-
gressional Budget Act of 1974, of modifying direct loans
and loan guarantees, as the President may determine, for
which funds have been appropriated or otherwise made
available for programs within the International Affairs
Budget Function 150, including the cost of selling, reduc-
ing, or canceling amounts, through debt buybacks and
swaps, owed to the United States as a result of
concessional loans made to eligible Latin American and
Caribbean countries, pursuant to part IV of the Foreign
Assistance Act of 1961; of modifying concessional credit
agreements with least developed countries, as authorized
under section 411 of the Agricultural Trade Development
and Assistance Act of 1954, as amended, and concessional
loans, guarantees and credit agreements with any country
in sub-Saharan Africa, as authorized under section 572
of the Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 1989 (Public Law 100–
461); and of modifying any obligation, or portion of such
obligation for Latin American countries to pay for pur-
chases of United States agricultural commodities guaran-
teed by the Commodity Credit Corporation under export
credit guarantee programs authorized pursuant to section
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5(f ) of the Commodity Credit Corporation Charter Act of
June 29, 1948, as amended, section 4(b) of the Food for
Peace Act of 1966, as amended (Public Law 89–808), or
section 202 of the Agricultural Trade Act of 1978, as
amended (Public Law 95–501); $36,000,000, to remain
available until expended: Provided, That not to exceed
$2,900,000 of such funds may be used for implementation
of improvements in the foreign credit reporting system of
the United States Government: Provided further, That the
authority provided by section 572 of Public Law 100–461
may be exercised only with respect to countries that are
eligible to borrow from the International Development As-
sociation, but not from the International Bank for Recon-
struction and Development, commonly referred to as
‘‘IDA-only’’ countries.
TITLE III—MILITARY ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
INTERNATIONAL MILITARY EDUCATION AND TRAINING
For necessary expenses to carry out the provisions
of section 541 of the Foreign Assistance Act of 1961,
$50,000,000 of which up to $1,000,000 may remain avail-
able until expended: Provided, That the civilian personnel
for whom military education and training may be provided
under this heading may include civilians who are not mem-
bers of a government whose participation would contribute
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to improved civil-military relations, civilian control of the
military, or respect for human rights: Provided further,
That funds appropriated under this heading for grant fi-
nanced military education and training for Indonesia and
Guatemala may only be available for expanded inter-
national military education and training and funds made
available for Guatemala may only be provided through the
regular notification procedures of the Committees on Ap-
propriations: Provided further, That none of the funds ap-
propriated under this heading may be made available to
support grant financed military education and training at
the School of the Americas unless the Secretary of De-
fense certifies that the instruction and training provided
by the School of the Americas is fully consistent with
training and doctrine, particularly with respect to the ob-
servance of human rights, provided by the Department of
Defense to United States military students at Department
of Defense institutions whose primary purpose is to train
United States military personnel: Provided further, That
the Secretary of Defense shall submit to the Committees
on Appropriations, no later than January 15, 1999, a re-
port detailing the training activities of the School of the
Americas and a general assessment regarding the per-
formance of its graduates during 1997.
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FOREIGN MILITARY FINANCING PROGRAM
For expenses necessary for grants to enable the
President to carry out the provisions of section 23 of the
Arms Export Control Act, $3,335,910,000: Provided,
That of the funds appropriated under this heading, not
to exceed $1,860,000,000 shall be available for grants only
for Israel, and not to exceed $1,300,000,000 shall be made
available for grants only for Egypt: Provided further, That
the funds appropriated by this paragraph for Israel shall
be disbursed within 30 days of enactment of this Act or
by October 31, 1998, whichever is later: Provided further,
That to the extent that the Government of Israel requests
that funds be used for such purposes, grants made avail-
able for Israel by this paragraph shall, as agreed by Israel
and the United States, be available for advanced weapons
systems, of which not less than $490,000,000 shall be
available for the procurement in Israel of defense articles
and defense services, including research and development:
Provided further, That during fiscal year 1999 the Presi-
dent is authorized to, and shall, direct drawdowns of de-
fense articles from the stocks of the Department of De-
fense, defense services of the Department of Defense, and
military education and training of an aggregate value of
not less than $25,000,000 under the authority of this pro-
viso for Jordan for the purposes of part II of the Foreign
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Assistance Act of 1961: Provided further, That section
506(c) of the Foreign Assistance Act of 1961 shall apply,
and section 632(d) of the Foreign Assistance Act of 1961
shall not apply, to any such drawdown: Provided further,
That none of the funds made available under this heading
shall be available for any non-NATO country participating
in the Partnership for Peace Program except through the
regular notification procedures of the Committees on Ap-
propriations: Provided further, That funds appropriated by
this paragraph shall be nonrepayable notwithstanding any
requirement in section 23 of the Arms Export Control Act:
Provided further, That funds made available under this
heading shall be obligated upon apportionment in accord-
ance with paragraph (5)(C) of title 31, United States
Code, section 1501(a).
For the cost, as defined in section 502 of the Con-
gressional Budget Act of 1974, of direct loans authorized
by section 23 of the Arms Export Control Act as follows:
cost of direct loans, $20,000,000: Provided, That these
funds are available to subsidize gross obligations for the
principal amount of direct loans of not to exceed
$167,000,000.
None of the funds made available under this heading
shall be available to finance the procurement of defense
articles, defense services, or design and construction serv-
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ices that are not sold by the United States Government
under the Arms Export Control Act unless the foreign
country proposing to make such procurements has first
signed an agreement with the United States Government
specifying the conditions under which such procurements
may be financed with such funds: Provided, That all coun-
try and funding level increases in allocations shall be sub-
mitted through the regular notification procedures of sec-
tion 515 of this Act: Provided further, That none of the
funds appropriated under this heading shall be available
for Sudan and Liberia: Provided further, That funds made
available under this heading may be used, notwithstanding
any other provision of law, for demining, the clearance of
unexploded ordnance, and related activities and may in-
clude activities implemented through nongovernmental
and international organizations: Provided further, That
only those countries for which assistance was justified for
the ‘‘Foreign Military Sales Financing Program’’ in the
fiscal year 1989 congressional presentation for security as-
sistance programs may utilize funds made available under
this heading for procurement of defense articles, defense
services or design and construction services that are not
sold by the United States Government under the Arms
Export Control Act: Provided further, That, subject to the
regular notification procedures of the Committees on Ap-
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propriations, funds made available under this heading for
the cost of direct loans may also be used to supplement
the funds available under this heading for grants, and
funds made available under this heading for grants may
also be used to supplement the funds available under this
heading for the cost of direct loans: Provided further, That
funds appropriated under this heading shall be expended
at the minimum rate necessary to make timely payment
for defense articles and services: Provided further, That
not more than $29,910,000 of the funds appropriated
under this heading may be obligated for necessary ex-
penses, including the purchase of passenger motor vehicles
for replacement only for use outside of the United States,
for the general costs of administering military assistance
and sales: Provided further, That none of the funds under
this heading shall be available for Guatemala: Provided
further, That not more than $340,000,000 of funds real-
ized pursuant to section 21(e)(1)(A) of the Arms Export
Control Act may be obligated for expenses incurred by the
Department of Defense during fiscal year 1999 pursuant
to section 43(b) of the Arms Export Control Act, except
that this limitation may be exceeded only through the reg-
ular notification procedures of the Committees on Appro-
priations.
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PEACEKEEPING OPERATIONS
For necessary expenses to carry out the provisions
of section 551 of the Foreign Assistance Act of 1961,
$62,250,000: Provided, That none of the funds appro-
priated under this heading shall be obligated or expended
except as provided through the regular notification proce-
dures of the Committees on Appropriations.
TITLE IV—MULTILATERAL ECONOMIC
ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
INTERNATIONAL FINANCIAL INSTITUTIONS
CONTRIBUTION TO THE INTERNATIONAL BANK FOR
RECONSTRUCTION AND DEVELOPMENT
For payment to the International Bank for Recon-
struction and Development by the Secretary of the Treas-
ury, for the United States contribution to the Global Envi-
ronment Facility (GEF), $42,500,000, to remain available
until September 30, 2000, which shall be available for con-
tributions previously due.
CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT
ASSOCIATION
For payment to the International Development Asso-
ciation by the Secretary of the Treasury, $800,000,000,
to remain available until expended.
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CONTRIBUTION TO THE INTER-AMERICAN DEVELOPMENT
BANK
For payment to the Inter-American Development
Bank by the Secretary of the Treasury, for the United
States share of the paid-in share portion of the increase
in capital stock, $25,610,667, and for the United States
share of the increase in the resources of the Fund for Spe-
cial Operations, $21,152,000, to remain available until ex-
pended, which shall be available for contributions pre-
viously due.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS
The United States Governor of the Inter-American
Development Bank may subscribe without fiscal year limi-
tation to the callable capital portion of the United States
share of such capital stock in an amount not to exceed
$1,503,718,910.
CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS
MULTILATERAL INVESTMENT FUND
For payment to the Enterprise for the Americas Mul-
tilateral Investment Fund by the Secretary of the Treas-
ury, for the United States contribution to the Fund to
be administered by the Inter-American Development
Bank, $50,000,000 to remain available until expended,
which shall be available for contributions previously due.
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CONTRIBUTION TO THE ASIAN DEVELOPMENT BANK
For payment to the Asian Development Bank by the
Secretary of the Treasury for the United States share of
the paid-in portion of the increase in capital stock,
$13,221,596, to remain available until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS
The United States Governor of the Asian Develop-
ment Bank may subscribe without fiscal year limitation
to the callable capital portion of the United States share
of such capital stock in an amount not to exceed
$647,858,204.
CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND
For the United States contribution by the Secretary
of the Treasury to the increases in resources of the Asian
Development Fund, as authorized by the Asian Develop-
ment Bank Act, as amended (Public Law 89–369),
$210,000,000, to remain available until expended, of
which $150,000,000 shall be available for contributions
previously due.
CONTRIBUTION TO THE AFRICAN DEVELOPMENT FUND
For the United States contribution by the Secretary
of the Treasury to the increase in resources of the African
Development Fund, $128,000,000, to remain available
until expended, of which $88,300,000 shall be available
for contributions previously due.
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CONTRIBUTION TO THE EUROPEAN BANK FOR
RECONSTRUCTION AND DEVELOPMENT
For payment to the European Bank for Reconstruc-
tion and Development by the Secretary of the Treasury,
$35,778,717, for the United States share of the paid-in
portion of the increase in capital stock, to remain available
until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS
The United States Governor of the European Bank
for Reconstruction and Development may subscribe with-
out fiscal year limitation to the callable capital portion of
the United States share of such capital stock in an amount
not to exceed $123,237,803.
INTERNATIONAL ORGANIZATIONS AND PROGRAMS
For necessary expenses to carry out the provisions
of section 301 of the Foreign Assistance Act of 1961, and
of section 2 of the United Nations Environment Program
Participation Act of 1973, $157,250,000: Provided, That
none of the funds appropriated under this heading may
be made available for the United Nations Fund for
Science and Technology: Provided further, That none of
the funds appropriated under this heading may be made
available for the United Nations Population Fund
(UNFPA): Provided further, That none of the funds ap-
propriated under this heading may be made available for
the Korean Peninsula Energy Development Organization
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(KEDO) or the International Atomic Energy Agency
(IAEA).
TITLE V—GENERAL PROVISIONS
OBLIGATIONS DURING LAST MONTH OF AVAILABILITY
SEC. 501. Except for the appropriations entitled
‘‘International Disaster Assistance’’, and ‘‘United States
Emergency Refugee and Migration Assistance Fund’’, not
more than 15 percent of any appropriation item made
available by this Act shall be obligated during the last
month of availability.
PROHIBITION OF BILATERAL FUNDING FOR
INTERNATIONAL FINANCIAL INSTITUTIONS
SEC. 502. Notwithstanding section 614 of the For-
eign Assistance Act of 1961, as amended, none of the
funds contained in title II of this Act may be used to carry
out the provisions of section 209(d) of the Foreign Assist-
ance Act of 1961.
LIMITATION ON RESIDENCE EXPENSES
SEC. 503. Of the funds appropriated or made avail-
able pursuant to this Act, not to exceed $126,500 shall
be for official residence expenses of the Agency for Inter-
national Development during the current fiscal year: Pro-
vided, That appropriate steps shall be taken to assure
that, to the maximum extent possible, United States-
owned foreign currencies are utilized in lieu of dollars.
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LIMITATION ON EXPENSES
SEC. 504. Of the funds appropriated or made avail-
able pursuant to this Act, not to exceed $5,000 shall be
for entertainment expenses of the Agency for International
Development during the current fiscal year.
LIMITATION ON REPRESENTATIONAL ALLOWANCES
SEC. 505. Of the funds appropriated or made avail-
able pursuant to this Act, not to exceed $95,000 shall be
available for representation allowances for the Agency for
International Development during the current fiscal year:
Provided, That appropriate steps shall be taken to assure
that, to the maximum extent possible, United States-
owned foreign currencies are utilized in lieu of dollars:
Provided further, That of the funds made available by this
Act for general costs of administering military assistance
and sales under the heading ‘‘Foreign Military Financing
Program’’, not to exceed $2,000 shall be available for en-
tertainment expenses and not to exceed $50,000 shall be
available for representation allowances: Provided further,
That of the funds made available by this Act under the
heading ‘‘International Military Education and Train-
ing ’’, not to exceed $50,000 shall be available for enter-
tainment allowances: Provided further, That of the funds
made available by this Act for the Inter-American Foun-
dation, not to exceed $2,000 shall be available for enter-
tainment and representation allowances: Provided further,
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That of the funds made available by this Act for the Peace
Corps, not to exceed a total of $4,000 shall be available
for entertainment expenses: Provided further, That of the
funds made available by this Act under the heading
‘‘Trade and Development Agency’’, not to exceed $2,000
shall be available for representation and entertainment al-
lowances.
PROHIBITION ON FINANCING NUCLEAR GOODS
SEC. 506. None of the funds appropriated or made
available (other than funds for ‘‘Nonproliferation, Anti-
terrorism, Demining and Related Programs’’) pursuant to
this Act, for carrying out the Foreign Assistance Act of
1961, may be used, except for purposes of nuclear safety,
to finance the export of nuclear equipment, fuel, or tech-
nology.
PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN
COUNTRIES
SEC. 507. None of the funds appropriated or other-
wise made available pursuant to this Act shall be obligated
or expended to finance directly any assistance or repara-
tions to Cuba, Iraq, Libya, North Korea, Iran, Sudan, or
Syria: Provided, That for purposes of this section, the pro-
hibition on obligations or expenditures shall include direct
loans, credits, insurance and guarantees of the Export-Im-
port Bank or its agents.
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MILITARY COUPS
SEC. 508. None of the funds appropriated or other-
wise made available pursuant to this Act shall be obligated
or expended to finance directly any assistance to any coun-
try whose duly elected head of government is deposed by
military coup or decree: Provided, That assistance may be
resumed to such country if the President determines and
reports to the Committees on Appropriations that subse-
quent to the termination of assistance a democratically
elected government has taken office.
TRANSFERS BETWEEN ACCOUNTS
SEC. 509. None of the funds made available by this
Act may be obligated under an appropriation account to
which they were not appropriated, except for transfers
specifically provided for in this Act, unless the President,
prior to the exercise of any authority contained in the For-
eign Assistance Act of 1961 to transfer funds, consults
with and provides a written policy justification to the
Committees on Appropriations of the House of Represent-
atives and the Senate: Provided, That the exercise of such
authority shall be subject to the regular notification proce-
dures of the Committees on Appropriations.
DEOBLIGATION/REOBLIGATION AUTHORITY
SEC. 510. (a) Amounts certified pursuant to section
1311 of the Supplemental Appropriations Act, 1955, as
having been obligated against appropriations heretofore
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made under the authority of the Foreign Assistance Act
of 1961 for the same general purpose as any of the head-
ings under title II of this Act are, if deobligated, hereby
continued available for the same period as the respective
appropriations under such headings or until September
30, 1999, whichever is later, and for the same general pur-
pose, and for countries within the same region as origi-
nally obligated: Provided, That the Appropriations Com-
mittees of both Houses of the Congress are notified 15
days in advance of the reobligation of such funds in ac-
cordance with regular notification procedures of the Com-
mittees on Appropriations.
(b) Obligated balances of funds appropriated to carry
out section 23 of the Arms Export Control Act as of the
end of the fiscal year immediately preceding the current
fiscal year are, if deobligated, hereby continued available
during the current fiscal year for the same purpose under
any authority applicable to such appropriations under this
Act: Provided, That the authority of this subsection may
not be used in fiscal year 1999.
AVAILABILITY OF FUNDS
SEC. 511. No part of any appropriation contained in
this Act shall remain available for obligation after the ex-
piration of the current fiscal year unless expressly so pro-
vided in this Act: Provided, That funds appropriated for
the purposes of chapters 1, 8, and 11 of part I, section
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667, and chapter 4 of part II of the Foreign Assistance
Act of 1961, as amended, and funds provided under the
heading ‘‘Assistance for Eastern Europe and the Baltic
States’’, shall remain available until expended if such
funds are initially obligated before the expiration of their
respective periods of availability contained in this Act:
Provided further, That, notwithstanding any other provi-
sion of this Act, any funds made available for the purposes
of chapter 1 of part I and chapter 4 of part II of the
Foreign Assistance Act of 1961 which are allocated or ob-
ligated for cash disbursements in order to address balance
of payments or economic policy reform objectives, shall re-
main available until expended: Provided further, That the
report required by section 653(a) of the Foreign Assist-
ance Act of 1961 shall designate for each country, to the
extent known at the time of submission of such report,
those funds allocated for cash disbursement for balance
of payment and economic policy reform purposes.
LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT
SEC. 512. No part of any appropriation contained in
this Act shall be used to furnish assistance to any country
which is in default during a period in excess of one cal-
endar year in payment to the United States of principal
or interest on any loan made to such country by the
United States pursuant to a program for which funds are
appropriated under this Act: Provided, That this section
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and section 620(q) of the Foreign Assistance Act of 1961
shall not apply to funds made available in this Act or dur-
ing the current fiscal year for Nicaragua, Brazil, the
Democratic Republic of Congo, and Liberia, and for any
narcotics-related assistance for Colombia, Bolivia, and
Peru authorized by the Foreign Assistance Act of 1961
or the Arms Export Control Act.
COMMERCE AND TRADE
SEC. 513. (a) None of the funds appropriated or
made available pursuant to this Act for direct assistance
and none of the funds otherwise made available pursuant
to this Act to the Export-Import Bank and the Overseas
Private Investment Corporation shall be obligated or ex-
pended to finance any loan, any assistance or any other
financial commitments for establishing or expanding pro-
duction of any commodity for export by any country other
than the United States, if the commodity is likely to be
in surplus on world markets at the time the resulting pro-
ductive capacity is expected to become operative and if the
assistance will cause substantial injury to United States
producers of the same, similar, or competing commodity:
Provided, That such prohibition shall not apply to the Ex-
port-Import Bank if in the judgment of its Board of Direc-
tors the benefits to industry and employment in the
United States are likely to outweigh the injury to United
States producers of the same, similar, or competing com-
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modity, and the Chairman of the Board so notifies the
Committees on Appropriations.
(b) None of the funds appropriated by this or any
other Act to carry out chapter 1 of part I of the Foreign
Assistance Act of 1961 shall be available for any testing
or breeding feasibility study, variety improvement or intro-
duction, consultancy, publication, conference, or training
in connection with the growth or production in a foreign
country of an agricultural commodity for export which
would compete with a similar commodity grown or pro-
duced in the United States: Provided, That this subsection
shall not prohibit—
(1) activities designed to increase food security
in developing countries where such activities will not
have a significant impact in the export of agricul-
tural commodities of the United States; or
(2) research activities intended primarily to
benefit American producers.
SURPLUS COMMODITIES
SEC. 514. The Secretary of the Treasury shall in-
struct the United States Executive Directors of the Inter-
national Bank for Reconstruction and Development, the
International Development Association, the International
Finance Corporation, the Inter-American Development
Bank, the International Monetary Fund, the Asian Devel-
opment Bank, the Inter-American Investment Corpora-
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tion, the North American Development Bank, the Euro-
pean Bank for Reconstruction and Development, the Afri-
can Development Bank, and the African Development
Fund to use the voice and vote of the United States to
oppose any assistance by these institutions, using funds
appropriated or made available pursuant to this Act, for
the production or extraction of any commodity or mineral
for export, if it is in surplus on world markets and if the
assistance will cause substantial injury to United States
producers of the same, similar, or competing commodity.
NOTIFICATION REQUIREMENTS
SEC. 515. (a) For the purposes of providing the exec-
utive branch with the necessary administrative flexibility,
none of the funds made available under this Act for ‘‘Child
Survival and Disease Programs Fund’’, ‘‘Development as-
sistance’’, ‘‘International Organizations and Programs’’,
‘‘Trade and Development Agency’’, ‘‘International narcot-
ics control’’, ‘‘Assistance for Eastern Europe and the Bal-
tic States’’, ‘‘Assistance for the New Independent States
of the Former Soviet Union’’, ‘‘Economic Support Fund’’,
‘‘Peacekeeping operations’’, ‘‘Operating expenses of the
Agency for International Development’’, ‘‘Operating ex-
penses of the Agency for International Development Office
of Inspector General’’, ‘‘Nonproliferation, anti-terrorism,
demining and related programs’’, ‘‘Foreign Military Fi-
nancing Program’’, ‘‘International military education and
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training ’’, ‘‘Peace Corps’’, ‘‘Migration and refugee assist-
ance’’, shall be available for obligation for activities, pro-
grams, projects, type of materiel assistance, countries, or
other operations not justified or in excess of the amount
justified to the Appropriations Committees for obligation
under any of these specific headings unless the Appropria-
tions Committees of both Houses of Congress are pre-
viously notified 15 days in advance: Provided, That the
President shall not enter into any commitment of funds
appropriated for the purposes of section 23 of the Arms
Export Control Act for the provision of major defense
equipment, other than conventional ammunition, or other
major defense items defined to be aircraft, ships, missiles,
or combat vehicles, not previously justified to Congress or
20 percent in excess of the quantities justified to Congress
unless the Committees on Appropriations are notified 15
days in advance of such commitment: Provided further,
That this section shall not apply to any reprogramming
for an activity, program, or project under chapter 1 of
part I of the Foreign Assistance Act of 1961 of less than
10 percent of the amount previously justified to the Con-
gress for obligation for such activity, program, or project
for the current fiscal year: Provided further, That the re-
quirements of this section or any similar provision of this
Act or any other Act, including any prior Act requiring
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notification in accordance with the regular notification
procedures of the Committees on Appropriations, may be
waived if failure to do so would pose a substantial risk
to human health or welfare: Provided further, That in case
of any such waiver, notification to the Congress, or the
appropriate congressional committees, shall be provided as
early as practicable, but in no event later than three days
after taking the action to which such notification require-
ment was applicable, in the context of the circumstances
necessitating such waiver: Provided further, That any noti-
fication provided pursuant to such a waiver shall contain
an explanation of the emergency circumstances.
(b) Drawdowns made pursuant to section 506(a)(2)
of the Foreign Assistance Act of 1961 shall be subject to
the regular notification procedures of the Committees on
Appropriations.
LIMITATION ON AVAILABILITY OF FUNDS FOR
INTERNATIONAL ORGANIZATIONS AND PROGRAMS
SEC. 516. Notwithstanding any other provision of law
or of this Act, none of the funds provided for ‘‘Inter-
national Organizations and Programs’’ shall be available
for the United States proportionate share, in accordance
with section 307(c) of the Foreign Assistance Act of 1961,
for any programs identified in section 307, or for Libya,
Iran, or, at the discretion of the President, Communist
countries listed in section 620(f ) of the Foreign Assist-
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ance Act of 1961, as amended: Provided, That, subject
to the regular notification procedures of the Committees
on Appropriations, funds appropriated under this Act or
any previously enacted Act making appropriations for for-
eign operations, export financing, and related programs,
which are returned or not made available for organizations
and programs because of the implementation of this sec-
tion or any similar provision of law, shall remain available
for obligation through September 30, 2000.
NEW INDEPENDENT STATES OF THE FORMER SOVIET
UNION
SEC. 517. (a) ECONOMIC REFORMS.—None of the
funds appropriated under the heading ‘‘Assistance for the
New Independent States of the Former Soviet Union’’
shall be made available for assistance for the Government
of Russia—
(1) unless that Government is making progress
in implementing comprehensive economic reforms
based on market principles, private ownership, nego-
tiating repayment of commercial debt, respect for
commercial contracts, and equitable treatment of
foreign private investment;
(2) if that Government applies or transfers
United States assistance to any entity for the pur-
pose of expropriating or seizing ownership or control
of assets, investments, or venture.
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Assistance may be furnished without regard to this sub-
section if the President determines that to do so is in the
national interest.
(b) None of the funds appropriated under the heading
‘‘Assistance for the New Independent States of the
Former Soviet Union’’ shall be made available to any gov-
ernment of the new independent states of the former So-
viet Union if that government directs any action in viola-
tion of the territorial integrity or national sovereignty of
any other new independent state, such as those violations
included in the Helsinki Final Act: Provided, That such
funds may be made available without regard to the restric-
tion in this subsection if the President determines that
to do so is in the national security interest of the United
States: Provided further, That the restriction of this sub-
section shall not apply to the use of such funds for the
provision of assistance for purposes of humanitarian and
refugee relief.
(c) None of the funds appropriated under the heading
‘‘Assistance for the New Independent States of the
Former Soviet Union’’ shall be made available for any
state to enhance its military capability: Provided, That
this restriction shall not apply to demilitarization,
demining, or nonproliferation programs.
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(d) Funds appropriated under the heading ‘‘Assist-
ance for the New Independent States of the Former Soviet
Union’’ shall be subject to the regular notification proce-
dures of the Committees on Appropriations.
(e) Funds made available in this Act for assistance
to the new independent states of the former Soviet Union
shall be subject to the provisions of section 117 (relating
to environment and natural resources) of the Foreign As-
sistance Act of 1961.
(f) In issuing new task orders, entering into con-
tracts, or making grants, with funds appropriated under
the heading ‘‘Assistance for the New Independent States
of the Former Soviet Union’’ in this Act or in prior appro-
priations Acts, for projects or activities that have as one
of their primary purposes the fostering of private sector
development, the Coordinator for United States Assistance
to the New Independent States and the implementing
agency shall encourage the participation of and give sig-
nificant weight to contractors and grantees who propose
investing a significant amount of their own resources (in-
cluding volunteer services and in-kind contributions) in
such projects and activities.
PROHIBITION ON FUNDING FOR ABORTIONS AND
INVOLUNTARY STERILIZATION
SEC. 518. None of the funds made available to carry
out part I of the Foreign Assistance Act of 1961, as
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amended, may be used to pay for the performance of abor-
tions as a method of family planning or to motivate or
coerce any person to practice abortions. None of the funds
made available to carry out part I of the Foreign Assist-
ance Act of 1961, as amended, may be used to pay for
the performance of involuntary sterilization as a method
of family planning or to coerce or provide any financial
incentive to any person to undergo sterilizations. None of
the funds made available to carry out part I of the Foreign
Assistance Act of 1961, as amended, may be used to pay
for any biomedical research which relates in whole or in
part, to methods of, or the performance of, abortions or
involuntary sterilization as a means of family planning.
None of the funds made available to carry out part I of
the Foreign Assistance Act of 1961, as amended, may be
obligated or expended for any country or organization if
the President certifies that the use of these funds by any
such country or organization would violate any of the
above provisions related to abortions and involuntary steri-
lizations: Provided, That none of the funds made available
under this Act may be used to lobby for or against abor-
tion.
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FOREIGN ORGANIZATIONS THAT PERFORM OR PROMOTE
ABORTION
OVERSEAS; FORCED
ABORTION
IN
THE
PEOPLE’S REPUBLIC OF CHINA
SEC. 518A. (a) Section 104 of the Foreign Assistance
Act of 1961 is amended by adding at the end the following
new subsection:
‘‘(h) RESTRICTIONS ON ASSISTANCE TO FOREIGN
ORGANIZATIONS THAT PERFORM OR ACTIVELY PROMOTE
ABORTIONS.—
‘‘(1) PERFORMANCE OF ABORTIONS.—
‘‘(A) Notwithstanding section 614 of this
Act or any other provision of law, no funds ap-
propriated for population planning activities or
other population assistance may be made avail-
able for any foreign private, nongovernmental,
or multilateral organization until the organiza-
tion certifies that it will not, during the period
for which the funds are made available, perform
abortions in any foreign country, except where
the life of the mother would be endangered if
the pregnancy were carried to term or in cases
of forcible rape or incest.
‘‘(B) Subparagraph (A) may not be con-
strued to apply to the treatment of injuries or
illnesses caused by legal or illegal abortions or
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to assistance provided directly to the govern-
ment of a country.
‘‘(2) LOBBYING ACTIVITIES.—
‘‘(A) Notwithstanding section 614 of this
Act or any other provision of law, no funds ap-
propriated for population planning activities or
other population assistance may be made avail-
able for any foreign private, nongovernmental,
or multilateral organization until the organiza-
tion certifies that it will not, during the period
for which the funds are made available, violate
the laws of any foreign country concerning the
circumstances under which abortion is per-
mitted, regulated, or prohibited, or engage in
any activity or effort to alter the laws or gov-
ernmental policies of any foreign country con-
cerning the circumstances under which abortion
is permitted, regulated, or prohibited.
‘‘(B) Subparagraph (A) shall not apply to
activities in opposition to coercive abortion or
involuntary sterilization.
‘‘(3) APPLICATION
TO
FOREIGN
ORGANIZA-
TIONS.—The prohibitions of this subsection apply to
funds made available to a foreign organization either
directly or as a subcontractor or subgrantee, and the
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certifications required by paragraphs (1) and (2)
apply to activities in which the organization engages
either directly or through a subcontractor or sub-
grantee.
‘‘(4) DEFINITION.—As used in this section, the
term ‘activity or effort to alter the laws or govern-
mental policies of any foreign country concerning the
circumstances under which abortion is permitted,
regulated, or prohibited’ includes not only overt lob-
bying for such changes, but also such other activities
as sponsoring, rather than merely attending, con-
ferences and workshops on the alleged defects in the
abortion laws, as well the drafting and distribution
of materials or public statements calling attention to
such alleged defects.’’.
(b) Section 301 of the Foreign Assistance Act of
1961 is amended by adding at the end the following new
subsection:
‘‘(i) LIMITATION RELATING TO FORCED ABORTIONS
IN THE PEOPLE’S REPUBLIC OF CHINA.—Notwithstand-
ing section 614 of this Act or any other provision of law,
no funds may be made available for the United Nations
Population Fund (UNFPA) in any fiscal year unless the
President certifies that—
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‘‘(1) UNFPA has terminated all activities in
the People’s Republic of China, and the United
States has received assurances that UNFPA will
conduct no such activities during the fiscal year for
which the funds are to be made available; or
‘‘(2) during the 12 months preceding such cer-
tification there have been no abortions as the result
of coercion associated with the family planning poli-
cies of the national government or other govern-
mental entities within the People’s Republic of
China. As used in this section, the term ‘coercion’
includes physical duress or abuse, destruction or
confiscation of property, loss of means of livelihood,
or severe psychological pressure.’’.
(c) The President may waive the provisions of section
104(h)(1) of the Foreign Assistance Act of 1961, as
amended, pertaining to population assistance to foreign
organizations that perform abortions in foreign countries,
for any fiscal year: Provided, That if the President exer-
cises the waiver provided by this subsection for any fiscal
year, not to exceed $356,000,000 may be made available
for population planning activities or other population as-
sistance for such fiscal year: Provided further, That the
limitation in the previous proviso includes all funds for
programs and activities designed to control fertility or to
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reduce or delay childbirths or pregnancies, irrespective of
the heading under which such funds are made available.
EXCESS DEFENSE ARTICLES FOR CENTRAL EUROPEAN
COUNTRIES
SEC. 519. Section 105 of Public Law 104–164 (110
Stat 1427) is amended by striking ‘‘1996 and 1997’’ and
inserting ‘‘1999 and 2000’’.
SPECIAL NOTIFICATION REQUIREMENTS
SEC. 520. None of the funds appropriated by this Act
shall be obligated or expended for Colombia, Honduras,
Haiti, Liberia, Pakistan, Panama, Peru, Serbia, Sudan,
or the Democratic Republic of Congo except as provided
through the regular notification procedures of the Com-
mittees on Appropriations.
DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY
SEC. 521. For the purpose of this Act, ‘‘program,
project, and activity’’ shall be defined at the appropria-
tions Act account level and shall include all appropriations
and authorizations Acts earmarks, ceilings, and limita-
tions with the exception that for the following accounts:
Economic Support Fund and Foreign Military Financing
Program, ‘‘program, project, and activity’’ shall also be
considered to include country, regional, and central pro-
gram level funding within each such account; for the devel-
opment assistance accounts of the Agency for Inter-
national Development ‘‘program, project, and activity’’
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shall also be considered to include central program level
funding, either as: (1) justified to the Congress; or (2)
allocated by the executive branch in accordance with a re-
port, to be provided to the Committees on Appropriations
within 30 days of enactment of this Act, as required by
section 653(a) of the Foreign Assistance Act of 1961.
CHILD SURVIVAL, AIDS, AND OTHER ACTIVITIES
SEC. 522. Up to $10,000,000 of the funds made
available by this Act for assistance for family planning,
health, child survival, basic education, and AIDS, may be
used to reimburse United States Government agencies,
agencies of State governments, institutions of higher
learning, and private and voluntary organizations for the
full cost of individuals (including for the personal services
of such individuals) detailed or assigned to, or contracted
by, as the case may be, the Agency for International De-
velopment for the purpose of carrying out family planning
activities, child survival, and basic education activities,
and activities relating to research on, and the treatment
and control of acquired immune deficiency syndrome in
developing countries: Provided, That funds appropriated
by this Act that are made available for child survival and
disease programs activities may be made available not-
withstanding any provision of law that restricts assistance
to foreign countries: Provided further, That funds appro-
priated under title II of this Act may be made available
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pursuant to section 301 of the Foreign Assistance Act of
1961 if a primary purpose of the assistance is for child
survival and related programs: Provided further, That
funds appropriated by this Act that are made available
for family planning activities may be made available not-
withstanding section 512 of this Act and section 620(q)
of the Foreign Assistance Act of 1961.
PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN
COUNTRIES
SEC. 523. None of the funds appropriated or other-
wise made available pursuant to this Act shall be obligated
to finance indirectly any assistance or reparations to
Cuba, Iraq, Libya, Iran, Syria, North Korea, or the Peo-
ple’s Republic of China, unless the President of the United
States certifies that the withholding of these funds is con-
trary to the national interest of the United States.
RECIPROCAL LEASING
SEC. 524. Section 61(a) of the Arms Export Control
Act is amended by striking out ‘‘1998’’ and inserting in
lieu thereof ‘‘1999’’.
NOTIFICATION ON EXCESS DEFENSE EQUIPMENT
SEC. 525. Prior to providing excess Department of
Defense articles in accordance with section 516(a) of the
Foreign Assistance Act of 1961, the Department of De-
fense shall notify the Committees on Appropriations to the
same extent and under the same conditions as are other
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committees pursuant to subsection (c) of that section: Pro-
vided, That before issuing a letter of offer to sell excess
defense articles under the Arms Export Control Act, the
Department of Defense shall notify the Committees on
Appropriations in accordance with the regular notification
procedures of such Committees: Provided further, That
such Committees shall also be informed of the original ac-
quisition cost of such defense articles.
AUTHORIZATION REQUIREMENT
SEC. 526. Funds appropriated by this Act may be
obligated and expended notwithstanding section 10 of
Public Law 91–672 and section 15 of the State Depart-
ment Basic Authorities Act of 1956.
DEMOCRACY IN CHINA
SEC. 527. Notwithstanding any other provision of law
that restricts assistance to foreign countries, funds appro-
priated by this Act for ‘‘Economic Support Fund’’ may
be made available to provide general support for non-
governmental organizations located outside the People’s
Republic of China that have as their primary purpose fos-
tering democracy in that country, and for activities of non-
governmental organizations located outside the People’s
Republic of China to foster democracy in that country:
Provided, That none of the funds made available for activi-
ties to foster democracy in the People’s Republic of China
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may be made available for assistance to the government
of that country.
COMMERCIAL LEASING OF DEFENSE ARTICLES
SEC. 528. Notwithstanding any other provision of
law, and subject to the regular notification procedures of
the Committees on Appropriations, the authority of sec-
tion 23(a) of the Arms Export Control Act may be used
to provide financing to Israel, Egypt and NATO and
major non-NATO allies for the procurement by leasing
(including leasing with an option to purchase) of defense
articles from United States commercial suppliers, not in-
cluding Major Defense Equipment (other than helicopters
and other types of aircraft having possible civilian applica-
tion), if the President determines that there are compel-
ling foreign policy or national security reasons for those
defense articles being provided by commercial lease rather
than by government-to-government sale under such Act.
COMPETITIVE INSURANCE
SEC. 529. All Agency for International Development
contracts and solicitations, and subcontracts entered into
under such contracts, shall include a clause requiring that
United States insurance companies have a fair oppor-
tunity to bid for insurance when such insurance is nec-
essary or appropriate.
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STINGERS IN THE PERSIAN GULF REGION
SEC. 530. Except as provided in section 581 of the
Foreign Operations, Export Financing, and Related Pro-
grams Appropriations Act, 1990, the United States may
not sell or otherwise make available any Stingers to any
country bordering the Persian Gulf under the Arms Ex-
port Control Act or chapter 2 of part II of the Foreign
Assistance Act of 1961.
DEBT-FOR-DEVELOPMENT
SEC. 531. In order to enhance the continued partici-
pation of nongovernmental organizations in economic as-
sistance activities under the Foreign Assistance Act of
1961, including endowments, debt-for-development and
debt-for-nature exchanges, a nongovernmental organiza-
tion which is a grantee or contractor of the Agency for
International Development may place in interest bearing
accounts funds made available under this Act or prior Acts
or local currencies which accrue to that organization as
a result of economic assistance provided under title II of
this Act and any interest earned on such investment shall
be used for the purpose for which the assistance was pro-
vided to that organization.
SEPARATE ACCOUNTS
SEC. 532. (a) SEPARATE ACCOUNTS
FOR LOCAL
CURRENCIES.—(1) If assistance is furnished to the gov-
ernment of a foreign country under chapter 1 and 10 of
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part I or chapter 4 of part II of the Foreign Assistance
Act of 1961 under agreements which result in the genera-
tion of local currencies of that country, the Administrator
of the 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 govern-
ment the responsibilities of the Agency for Inter-
national Development and that government to mon-
itor and account for deposits into and disbursements
from the separate account.
(2) USES
OF LOCAL CURRENCIES.—As may be
agreed upon with the foreign government, local currencies
deposited in a separate account pursuant to subsection
(a), or an equivalent amount of local currencies, shall be
used only—
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(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—
(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 Agency
for International Development shall take all necessary
steps to ensure that the equivalent of the local currencies
disbursed pursuant to subsection (a)(2)(A) from the sepa-
rate account established pursuant to subsection (a)(1) are
used for the purposes agreed upon pursuant to subsection
(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 re-
main in a separate account established pursuant to sub-
section (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) CONFORMING AMENDMENTS.—The provisions of
this subsection shall supersede the tenth and eleventh pro-
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visos contained under the heading ‘‘Sub-Saharan Africa,
Development Assistance’’ as included in the Foreign Oper-
ations, Export Financing, and Related Programs Appro-
priations Act, 1989 and sections 531(d) and 609 of the
Foreign Assistance Act of 1961.
(6) REPORTING REQUIREMENT.—The Administrator
of the 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 requirements 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 equivalent) used
and/or to be used for such purpose in each applicable
country.
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—
(1) If assistance is made available to the government of
a foreign country, under chapter 1 or 10 of part I or chap-
ter 4 of part II of the Foreign Assistance Act of 1961,
as cash transfer assistance or as nonproject sector assist-
ance, that country shall be required to maintain such
funds in a separate account and not commingle them with
any other funds.
(2) APPLICABILITY
OF
OTHER
PROVISIONS
OF
LAW.—Such funds may be obligated and expended not-
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withstanding 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 Res-
olution 648 (H. 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 Ap-
propriations, which shall include a detailed description of
how the funds proposed to be made available will be used,
with a discussion of the United States interests that will
be served by the assistance (including, as appropriate, a
description of the economic policy reforms that will be pro-
moted by such assistance).
(4) EXEMPTION.—Nonproject sector assistance funds
may be exempt from the requirements of subsection (b)(1)
only through the notification procedures of the Commit-
tees on Appropriations.
COMPENSATION FOR UNITED STATES EXECUTIVE
DIRECTORS TO INTERNATIONAL FINANCIAL INSTITUTIONS
SEC. 533. (a) No funds appropriated by this Act may
be made as payment to any international financial institu-
tion while the United States Executive Director to such
institution is compensated by the institution at a rate
which, together with whatever compensation such Director
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receives from the United States, is in excess of the rate
provided for an individual occupying a position at level IV
of the Executive Schedule under section 5315 of title 5,
United States Code, or while any alternate United States
Director to such institution is compensated by the institu-
tion at a rate in excess of the rate provided for an individ-
ual occupying a position at level V of the Executive Sched-
ule under section 5316 of title 5, United States Code.
(b) For purposes of this section, ‘‘international finan-
cial institutions’’ are: the International Bank for Recon-
struction and Development, the Inter-American Develop-
ment Bank, the Asian Development Bank, the Asian De-
velopment Fund, the African Development Bank, the Afri-
can Development Fund, the International Monetary Fund,
the North American Development Bank, and the Euro-
pean Bank for Reconstruction and Development.
COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST
IRAQ
SEC. 534. None of the funds appropriated or other-
wise made available pursuant to this Act to carry out the
Foreign Assistance Act of 1961 (including title IV of
chapter 2 of part I, relating to the Overseas Private In-
vestment Corporation) or the Arms Export Control Act
may be used to provide assistance to any country that is
not in compliance with the United Nations Security Coun-
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cil sanctions against Iraq unless the President determines
and so certifies to the Congress that—
(1) such assistance is in the national interest of
the United States;
(2) such assistance will directly benefit the
needy people in that country; or
(3) the assistance to be provided will be human-
itarian assistance for foreign nationals who have fled
Iraq and Kuwait.
COMPETITIVE PRICING FOR SALES OF DEFENSE
ARTICLES
SEC. 535. Direct costs associated with meeting a for-
eign customer’s additional or unique requirements will
continue to be allowable under contracts under section
22(d) of the Arms Export Control Act. Loadings applica-
ble to such direct costs shall be permitted at the same
rates applicable to procurement of like items purchased
by the Department of Defense for its own use.
AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMER-
ICAN
FOUNDATION
AND
THE
AFRICAN
DEVELOP-
MENT FOUNDATION
SEC. 536. Unless expressly provided to the contrary,
provisions of this or any other Act, including provisions
contained in prior Acts authorizing or making appropria-
tions for foreign operations, export financing, and related
programs, shall not be construed to prohibit activities au-
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thorized by or conducted under the Peace Corps Act, the
Inter-American Foundation Act, or the African Develop-
ment Foundation Act. The appropriate agency shall
promptly report to the Committees on Appropriations
whenever it is conducting activities or is proposing to con-
duct activities in a country for which assistance is prohib-
ited.
IMPACT ON JOBS IN THE UNITED STATES
SEC. 537. None of the funds appropriated by this Act
may be obligated or expended to provide—
(1) any financial incentive to a business enter-
prise currently located in the United States for the
purpose of inducing such an enterprise to relocate
outside the United States if such incentive or in-
ducement is likely to reduce the number of employ-
ees of such business enterprise in the United States
because United States production is being replaced
by such enterprise 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
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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 recipient
country, including any designated zone or area in
that country: Provided, That in recognition that the
application of this subsection should be commensu-
rate with the level of development of the recipient
country and sector, the provisions of this subsection
shall not preclude assistance for the informal sector
in such country, micro and small-scale enterprise,
and smallholder agriculture.
SPECIAL AUTHORITIES
SEC. 538. (a) Funds appropriated in titles I and II
of this Act that are made available for Afghanistan, Leb-
anon, Montenegro, and for victims of war, displaced chil-
dren, displaced Burmese, humanitarian assistance for Ro-
mania, and humanitarian assistance for the peoples of
Bosnia and Herzegovina, Croatia, and Kosova, may be
made available notwithstanding any other provision of law.
(b) Funds appropriated by this Act to carry out the
provisions of sections 103 through 106 of the Foreign As-
sistance Act of 1961 may be used, notwithstanding any
other provision of law, for the purpose of supporting bio-
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diversity conservation activities: Provided, That such as-
sistance shall be subject to sections 116, 502B, and 620A
of the Foreign Assistance Act of 1961.
(c) The Agency for International Development may
employ personal services contractors, notwithstanding any
other provision of law, for the purpose of administering
programs for the West Bank and Gaza.
(d)(1) WAIVER.—The President may waive the provi-
sions of section 1003 of Public Law 100–204 if the Presi-
dent determines and certifies in writing to the Speaker
of the House of Representatives and the President pro
tempore of the Senate that it is important to the national
security interests of the United States.
(2) PERIOD
OF APPLICATION
OF WAIVER.—Any
waiver pursuant to paragraph (1) shall be effective for no
more than a period of six months at a time and shall not
apply beyond twelve months after enactment of this Act.
POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT
OF ISRAEL
SEC. 539. It is the sense of the Congress that—
(1) the Arab League countries should imme-
diately and publicly renounce the primary boycott of
Israel and the secondary and tertiary boycott of
American firms that have commercial ties with
Israel;
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(2) the decision by the Arab League in 1997 to
reinstate the boycott against Israel was deeply trou-
bling and disappointing;
(3) the Arab League should immediately re-
scind its decision on the boycott and its members
should develop normal relations with their neighbor
Israel; and
(4) the President should—
(A) take more concrete steps to encourage
vigorously Arab League countries to renounce
publicly the primary boycotts of Israel and the
secondary and tertiary boycotts of American
firms that have commercial relations with Israel
as a confidence-building measure;
(B) take into consideration the participa-
tion of any recipient country in the primary
boycott of Israel and the secondary and tertiary
boycotts of American firms that have commer-
cial relations with Israel when determining
whether to sell weapons to said country;
(C) report to Congress on the specific
steps being taken by the President to bring
about a public renunciation of the Arab primary
boycott of Israel and the secondary and tertiary
boycotts of American firms that have commer-
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cial relations with Israel and to expand the
process of normalizing ties between Arab
League countries and Israel; and
(D) encourage the allies and trading part-
ners of the United States to enact laws prohib-
iting businesses from complying with the boy-
cott and penalizing businesses that do comply.
ANTI-NARCOTICS ACTIVITIES
SEC. 540. (a) Of the funds appropriated by this Act
for ‘‘Economic Support Fund’’, assistance may be pro-
vided to strengthen the administration of justice in coun-
tries in Latin America and the Caribbean and in other
regions consistent with the provisions of section 534(b) of
the Foreign Assistance Act of 1961, except that programs
to enhance protection of participants in judicial cases may
be conducted notwithstanding section 660 of that Act.
(b) Funds made available pursuant to this section
may be made available notwithstanding section 534(c) and
the second and third sentences of section 534(e) of the
Foreign Assistance Act of 1961.
ELIGIBILITY FOR ASSISTANCE
SEC. 541. (a) ASSISTANCE THROUGH NONGOVERN-
MENTAL ORGANIZATIONS.—Restrictions contained in this
or any other Act with respect to assistance for a country
shall not be construed to restrict assistance in support of
programs of nongovernmental organizations from funds
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appropriated by this Act to carry out the provisions of
chapters 1, 10, and 11 of part I, and chapter 4 of part
II, of the Foreign Assistance Act of 1961: Provided, That
the President shall take into consideration, in any case
in which a restriction on assistance would be applicable
but for this subsection, whether assistance in support of
programs of nongovernmental organizations is in the na-
tional interest of the United States: Provided further, That
before using the authority of this subsection to furnish as-
sistance in support of programs of nongovernmental orga-
nizations, the President shall notify the Committees on
Appropriations under the regular notification procedures
of those committees, including a description of the pro-
gram to be assisted, the assistance to be provided, and
the reasons for furnishing such assistance: Provided fur-
ther, That nothing in this subsection shall be construed
to alter any existing statutory prohibitions against abor-
tion or involuntary sterilizations contained in this or any
other Act.
(b) PUBLIC LAW 480.—During fiscal year 1999, re-
strictions contained in this or any other Act with respect
to assistance for a country shall not be construed to re-
strict assistance under the Agricultural Trade Develop-
ment and Assistance Act of 1954: Provided, That none
of the funds appropriated to carry out title I of such Act
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and made available pursuant to this subsection may be
obligated or expended except as provided through the reg-
ular notification procedures of the Committees on Appro-
priations.
(c) EXCEPTION.—This section shall not apply—
(1) with respect to section 620A of the Foreign
Assistance Act or any comparable provision of law
prohibiting assistance to countries that support
international terrorism; or
(2) with respect to section 116 of the Foreign
Assistance Act of 1961 or any comparable provision
of law prohibiting assistance to countries that violate
internationally recognized human rights.
EARMARKS
SEC. 542. (a) Funds appropriated by this Act which
are earmarked may be reprogrammed for other programs
within the same account notwithstanding the earmark if
compliance with the earmark is made impossible by oper-
ation of any provision of this or any other Act or, with
respect to a country with which the United States has an
agreement providing the United States with base rights
or base access in that country, if the President determines
that the recipient for which funds are earmarked has sig-
nificantly reduced its military or economic cooperation
with the United States since enactment of the Foreign Op-
erations, Export Financing, and Related Programs Appro-
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priations Act, 1991; however, before exercising the author-
ity of this subsection with regard to a base rights or base
access country which has significantly reduced its military
or economic cooperation with the United States, the Presi-
dent shall consult with, and shall provide a written policy
justification to the Committees on Appropriations: Pro-
vided, That any such reprogramming shall be subject to
the regular notification procedures of the Committees on
Appropriations: Provided further, That assistance that is
reprogrammed pursuant to this subsection shall be made
available under the same terms and conditions as origi-
nally provided.
(b) In addition to the authority contained in sub-
section (a), the original period of availability of funds ap-
propriated by this Act and administered by the Agency
for International Development that are earmarked for par-
ticular programs or activities by this or any other Act shall
be extended for an additional fiscal year if the Adminis-
trator of such agency determines and reports promptly to
the Committees on Appropriations that the termination of
assistance to a country or a significant change in cir-
cumstances makes it unlikely that such earmarked funds
can be obligated during the original period of availability:
Provided, That such earmarked funds that are continued
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available for an additional fiscal year shall be obligated
only for the purpose of such earmark.
CEILINGS AND EARMARKS
SEC. 543. Ceilings and earmarks contained in this
Act shall not be applicable to funds or authorities appro-
priated or otherwise made available by any subsequent Act
unless such Act specifically so directs.
PROHIBITION ON PUBLICITY OR PROPAGANDA
SEC. 544. No part of any appropriation contained in
this Act shall be used for publicity or propaganda purposes
within the United States not authorized before the date
of enactment of this Act by the Congress: Provided, That
not to exceed $950,000 may be made available to carry
out the provisions of section 316 of Public Law 96–533.
PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS
SEC. 545. (a) To the maximum extent possible, as-
sistance provided under this Act should make full use of
American resources, including commodities, products, and
services.
(b) It is the Sense of the Congress that, to the great-
est extent practicable, all equipment and products pur-
chased with funds made available in this Act should be
American-made.
(c) In providing financial assistance to, or entering
into any contract with, any entity using funds made avail-
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able in this Act, the head of each Federal agency, to the
greatest extent practicable, shall provide to such entity a
notice describing the statement made in subsection (b) by
the Congress.
PROHIBITION OF PAYMENTS TO UNITED NATIONS
MEMBERS
SEC. 546. None of the funds appropriated or made
available pursuant to this Act for carrying out the Foreign
Assistance Act of 1961, may be used to pay in whole or
in part any assessments, arrearages, or dues of any mem-
ber of the United Nations.
CONSULTING SERVICES
SEC. 547. The expenditure of any appropriation
under this Act for any consulting service through procure-
ment contract, pursuant to section 3109 of title 5, United
States Code, shall be limited to those contracts where such
expenditures are a matter of public record and available
for public inspection, except where otherwise provided
under existing law, or under existing Executive order pur-
suant to existing law.
PRIVATE VOLUNTARY ORGANIZATIONS–DOCUMENTATION
SEC. 548. None of the funds appropriated or made
available pursuant to this Act shall be available to a pri-
vate voluntary organization which fails to provide upon
timely request any document, file, or record necessary to
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the auditing requirements of the Agency for International
Development.
PROHIBITION
ON
ASSISTANCE
TO
FOREIGN
GOVERN-
MENTS
THAT
EXPORT
LETHAL
MILITARY
EQUIP-
MENT TO COUNTRIES SUPPORTING INTERNATIONAL
TERRORISM
SEC. 549. (a) None of the funds appropriated or oth-
erwise made available by this Act may be available to any
foreign government which provides lethal military equip-
ment to a country the government of which the Secretary
of State has determined is a terrorist government for pur-
poses of section 40(d) of the Arms Export Control Act
or any other comparable provision of law. The prohibition
under this section with respect to a foreign government
shall terminate 12 months after that government ceases
to provide such military equipment. This section applies
with respect to lethal military equipment provided under
a contract entered into after October 1, 1997.
(b) Assistance restricted by subsection (a) or any
other similar provision of law, may be furnished if the
President determines that furnishing such assistance is
important to the national interests of the United States.
(c) Whenever the waiver of subsection (b) is exer-
cised, the President shall submit to the appropriate con-
gressional committees a report with respect to the furnish-
ing of such assistance. Any such report shall include a de-
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tailed explanation of the assistance estimated to be pro-
vided, including the estimated dollar amount of such as-
sistance, and an explanation of how the assistance fur-
thers United States national interests.
WITHHOLDING OF ASSISTANCE FOR PARKING FINES
OWED BY FOREIGN COUNTRIES
SEC. 550. (a) IN GENERAL.—Of the funds made
available for a foreign country under part I of the Foreign
Assistance Act of 1961, an amount equivalent to 110 per-
cent of the total unpaid fully adjudicated parking fines
and penalties owed to the District of Columbia by such
country as of the date of enactment of this Act shall be
withheld from obligation for such country until the Sec-
retary of State certifies and reports in writing to the ap-
propriate congressional committees that such fines and
penalties are fully paid to the government of the District
of Columbia.
(b) DEFINITION.—For purposes of this section, the
term ‘‘appropriate congressional committees’’ means the
Committee on Foreign Relations and the Committee on
Appropriations of the Senate and the Committee on Inter-
national Relations and the Committee on Appropriations
of the House of Representatives.
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LIMITATION ON ASSISTANCE FOR THE PLO FOR THE
WEST BANK AND GAZA
SEC. 551. None of the funds appropriated by this Act
may be obligated for assistance for the Palestine Libera-
tion Organization for the West Bank and Gaza unless the
President has exercised the authority under section 604(a)
of the Middle East Peace Facilitation Act of 1995 (title
VI of Public Law 104–107) or any other legislation to sus-
pend or make inapplicable section 307 of the Foreign As-
sistance Act of 1961 and that suspension is still in effect:
Provided, That if the President fails to make the certifi-
cation under section 604(b)(2) of the Middle East Peace
Facilitation Act of 1995 or to suspend the prohibition
under other legislation, funds appropriated by this Act
may not be obligated for assistance for the Palestine Lib-
eration Organization for the West Bank and Gaza.
WAR CRIMES TRIBUNALS DRAWDOWN
SEC. 552. If the President determines that doing so
will contribute to a just resolution of charges regarding
genocide or other violations of international humanitarian
law, the President may direct a drawdown pursuant to sec-
tion 552(c) of the Foreign Assistance Act of 1961, as
amended, of up to $25,000,000 of commodities and serv-
ices for the United Nations War Crimes Tribunal estab-
lished with regard to the former Yugoslavia by the United
Nations Security Council or such other tribunals or com-
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missions as the Council may establish to deal with such
violations, without regard to the ceiling limitation con-
tained in paragraph (2) thereof: Provided, That the deter-
mination required under this section shall be in lieu of
any determinations otherwise required under section
552(c): Provided further, That 60 days after the date of
enactment of this Act, and every 180 days thereafter, the
Secretary of State shall submit a report to the Committees
on Appropriations describing the steps the United States
Government is taking to collect information regarding alle-
gations of genocide or other violations of international law
in the former Yugoslavia and to furnish that information
to the United Nations War Crimes Tribunal for the former
Yugoslavia.
LANDMINES
SEC. 553. Notwithstanding any other provision of
law, demining equipment available to the Agency for Inter-
national Development and the Department of State and
used in support of the clearance of landmines and
unexploded ordnance for humanitarian purposes may be
disposed of on a grant basis in foreign countries, subject
to such terms and conditions as the President may pre-
scribe.
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RESTRICTIONS CONCERNING THE PALESTINIAN
AUTHORITY
SEC. 554. None of the funds appropriated by this Act
may be obligated or expended to create in any part of Je-
rusalem a new office of any department or agency of the
United States Government for the purpose of conducting
official United States Government business with the Pal-
estinian Authority over Gaza and Jericho or any successor
Palestinian governing entity provided for in the Israel-
PLO Declaration of Principles: Provided, That this re-
striction shall not apply to the acquisition of additional
space for the existing Consulate General in Jerusalem:
Provided further, That meetings between officers and em-
ployees of the United States and officials of the Palestin-
ian Authority, or any successor Palestinian governing en-
tity provided for in the Israel-PLO Declaration of Prin-
ciples, for the purpose of conducting official United States
Government business with such authority should continue
to take place in locations other than Jerusalem. As has
been true in the past, officers and employees of the United
States Government may continue to meet in Jerusalem on
other subjects with Palestinians (including those who now
occupy positions in the Palestinian Authority), have social
contacts, and have incidental discussions.
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PROHIBITION OF PAYMENT OF CERTAIN EXPENSES
SEC. 555. None of the funds appropriated or other-
wise made available by this Act under the heading ‘‘Inter-
national Military Education and Training ’’ or ‘‘Foreign
Military Financing Program’’ for Informational Program
activities may be obligated or expended to pay for—
(1) alcoholic beverages;
(2) food (other than food provided at a military
installation) not provided in conjunction with Infor-
mational Program trips where students do not stay
at a military installation; or
(3) entertainment expenses for activities that
are substantially of a recreational character, includ-
ing entrance fees at sporting events and amusement
parks.
EQUITABLE ALLOCATION OF FUNDS
SEC. 556. Not more than 18 percent of the funds
appropriated by this Act to carry out the provisions of sec-
tions 103 through 106 and chapter 4 of part II of the
Foreign Assistance Act of 1961, that are made available
for Latin America and the Caribbean region may be made
available, through bilateral and Latin America and the
Caribbean regional programs, to provide assistance for
any country in such region.
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SPECIAL DEBT RELIEF FOR THE POOREST
SEC. 557. (a) AUTHORITY TO REDUCE DEBT.—The
President may reduce amounts owed to the United States
(or any agency of the United States) by an eligible country
as a result of—
(1) guarantees issued under sections 221 and
222 of the Foreign Assistance Act of 1961;
(2) credits extended or guarantees issued under
the Arms Export Control Act; or
(3) any obligation or portion of such obligation
for a Latin American country, to pay for purchases
of United States agricultural commodities guaran-
teed by the Commodity Credit Corporation under ex-
port credit guarantee programs authorized pursuant
to section 5(f ) of the Commodity Credit Corporation
Charter Act of June 29, 1948, as amended, section
4(b) of the Food for Peace Act of 1966, as amended
(Public Law 89–808), or section 202 of the Agricul-
tural Trade Act of 1978, as amended (Public Law
95–501).
(b) LIMITATIONS.—
(1) The authority provided by subsection (a)
may be exercised only to implement multilateral offi-
cial debt relief ad referendum agreements, commonly
referred to as ‘‘Paris Club Agreed Minutes’’.
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(2) The authority provided by subsection (a)
may be exercised only in such amounts or to such
extent as is provided in advance by appropriations
Acts.
(3) The authority provided by subsection (a)
may be exercised only with respect to countries with
heavy debt burdens that are eligible to borrow from
the International Development Association, but not
from the International Bank for Reconstruction and
Development, commonly referred to as ‘‘IDA-only’’
countries.
(c) CONDITIONS.—The authority provided by sub-
section (a) may be exercised only with respect to a country
whose government—
(1) does not have an excessive level of military
expenditures;
(2) has not repeatedly provided support for acts
of international terrorism;
(3) is not failing to cooperate on international
narcotics control matters;
(4) (including its military or other security
forces) does not engage in a consistent pattern of
gross violations of internationally recognized human
rights; and
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(5) is not ineligible for assistance because of the
application of section 527 of the Foreign Relations
Authorization Act, Fiscal Years 1994 and 1995.
(d) AVAILABILITY OF FUNDS.—The authority pro-
vided by subsection (a) may be used only with regard to
funds appropriated by this Act under the heading ‘‘Debt
restructuring ’’.
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A re-
duction of debt pursuant to subsection (a) shall not be
considered assistance for purposes of any provision of law
limiting assistance to a country. The authority provided
by subsection (a) may be exercised notwithstanding sec-
tion 620(r) of the Foreign Assistance Act of 1961.
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES
SEC. 558. (a) LOANS ELIGIBLE FOR SALE, REDUC-
TION, OR CANCELLATION.—
(1) AUTHORITY TO SELL, REDUCE, OR CANCEL
CERTAIN LOANS.—Notwithstanding any other provi-
sion of law, the President may, in accordance with
this section, sell to any eligible purchaser any
concessional loan or portion thereof made before
January 1, 1995, pursuant to the Foreign Assist-
ance Act of 1961, to the government of any eligible
country as defined in section 702(6) of that Act or
on receipt of payment from an eligible purchaser, re-
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duce or cancel such loan or portion thereof, only for
the purpose of facilitating—
(A) debt-for-equity swaps, debt-for-develop-
ment swaps, or debt-for-nature swaps; or
(B) a debt buyback by an eligible country
of its own qualified debt, only if the eligible
country uses an additional amount of the local
currency of the eligible country, equal to not
less than 40 percent of the price paid for such
debt by such eligible country, or the difference
between the price paid for such debt and the
face value of such debt, to support activities
that link conservation and sustainable use of
natural resources with local community develop-
ment, and child survival and other child devel-
opment, in a manner consistent with sections
707 through 710 of the Foreign Assistance Act
of 1961, if the sale, reduction, or cancellation
would not contravene any term or condition of
any prior agreement relating to such loan.
(2) TERMS AND CONDITIONS.—Notwithstanding
any other provision of law, the President shall, in ac-
cordance with this section, establish the terms and
conditions under which loans may be sold, reduced,
or canceled pursuant to this section.
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(3) ADMINISTRATION.—The Facility, as defined
in section 702(8) of the Foreign Assistance Act of
1961, shall notify the administrator of the agency
primarily responsible for administering part I of the
Foreign Assistance Act of 1961 of purchasers that
the President has determined to be eligible, and
shall direct such agency to carry out the sale, reduc-
tion, or cancellation of a loan pursuant to this sec-
tion. Such agency shall make an adjustment in its
accounts to reflect the sale, reduction, or cancella-
tion.
(4) LIMITATION.—The authorities of this sub-
section shall be available only to the extent that ap-
propriations for the cost of the modification, as de-
fined in section 502 of the Congressional Budget Act
of 1974, are made in advance.
(b) DEPOSIT OF PROCEEDS.—The proceeds from the
sale, reduction, or cancellation of any loan sold, reduced,
or canceled pursuant to this section shall be deposited in
the United States Government account or accounts estab-
lished for the repayment of such loan.
(c) ELIGIBLE PURCHASERS.—A loan may be sold
pursuant to subsection (a)(1)(A) only to a purchaser who
presents plans satisfactory to the President for using the
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loan for the purpose of engaging in debt-for-equity swaps,
debt-for-development swaps, or debt-for-nature swaps.
(d) DEBTOR CONSULTATIONS.—Before the sale to
any eligible purchaser, or any reduction or cancellation
pursuant to this section, of any loan made to an eligible
country, the President should consult with the country
concerning the amount of loans to be sold, reduced, or
canceled and their uses for debt-for-equity swaps, debt-
for-development swaps, or debt-for-nature swaps.
(e) AVAILABILITY OF FUNDS.—The authority pro-
vided by subsection (a) may be used only with regard to
funds appropriated by this Act under the heading ‘‘Debt
restructuring ’’.
SANCTIONS AGAINST COUNTRIES HARBORING WAR
CRIMINALS
SEC. 559. (a) BILATERAL ASSISTANCE.—The Presi-
dent is authorized to withhold funds appropriated by this
Act under the Foreign Assistance Act of 1961 or the Arms
Export Control Act for any country described in sub-
section (c).
(b) MULTILATERAL ASSISTANCE.—The Secretary of
the Treasury should instruct the United States executive
directors of the international financial institutions to work
in opposition to, and vote against, any extension by such
institutions of financing or financial or technical assist-
ance to any country described in subsection (c).
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(c) SANCTIONED COUNTRIES.—A country described
in this subsection is a country the government of which
knowingly grants sanctuary to persons in its territory for
the purpose of evading prosecution, where such persons—
(1) have been indicted by the International
Criminal Tribunal for Rwanda, or any other inter-
national tribunal with similar standing under inter-
national law; or
(2) have been indicted for war crimes or crimes
against humanity committed during the period be-
ginning March 23, 1933 and ending on May 8, 1945
under the direction of, or in association with—
(A) the Nazi government of Germany;
(B) any government in any area occupied
by the military forces of the Nazi government
of Germany;
(C) any government which was established
with the assistance or cooperation of the Nazi
government; or
(D) any government which was an ally of
the Nazi government of Germany.
LIMITATION ON ASSISTANCE FOR HAITI
SEC. 560. (a) LIMITATION.—Funds appropriated by
this Act may be made available for assistance for the Gov-
ernment of Haiti only if the President reports to the Com-
mittee on Appropriations and the Committee on Inter-
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national Relations of the House of Representatives and
the Committee on Appropriations and the Committee on
Foreign Relations of the Senate that the Government of
Haiti—
(1) has completed privatization of (or placed
under long-term private management or concession)
three major public entities including the completion
of all required incorporating documents, the transfer
of assets, and the eviction of unauthorized occupants
of the land or facility;
(2) is cooperating with the United States in
halting illegal emigration from Haiti;
(3) is conducting thorough investigations of
extrajudicial and political killings and has made sub-
stantial progress in bringing to justice a person or
persons responsible for one or more extrajudicial or
political killings in Haiti, and is cooperating with
United States authorities and with United States-
funded technical advisors to the Haitian National
Police in such investigations;
(4) has taken action to remove from the Hai-
tian National Police, national palace and residential
guard, ministerial guard, and any other public secu-
rity entity or unit of Haiti those individuals who are
credibly alleged to have engaged in or conspired to
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conceal gross violations of internationally recognized
human rights or credibly alleged to have engaged in
or conspired to engage in narcotics trafficking; and
(5) is implementing the maritime counter-nar-
cotics agreements signed in October 1997.
(b) AVAILABILITY
OF ELECTORAL ASSISTANCE.—
Funds appropriated by this Act may be made available
to support elections in Haiti only if the President reports
to the Congress that the Government of Haiti:
(1) has achieved a transparent settlement of the
contested April 1997 elections; and
(2) has made concrete progress on the constitu-
tion of a credible and competent provisional electoral
council with the agreement of a broad spectrum of
diverse political parties.
(c) EXCEPTIONS.—The limitations in subsections (a)
and (b) shall not apply to the provision of—
(1) counter-narcotics assistance, support for the
Haitian National Police’s Special Investigations Unit
and anti-corruption programs, the International
Criminal Investigative Assistance Program, and as-
sistance in support of Haitian customs and maritime
officials;
(2) food assistance management and support;
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(3) assistance for urgent humanitarian needs,
such as medical and other supplies and services in
support of community health services, schools, and
orphanages; and
(4) not more than $3,000,000 for the develop-
ment and support of political parties.
(d) WAIVER.—At any time after 150 days from the
date of enactment of this Act, the Secretary of State may
waive the requirements contained in subsection (a)(1) if
she reports to the Committees specified in subsection (a)
that the Government of Haiti has satisfied the require-
ments of subsection (a)(1) with regard to one major public
entity.
(e) REPORTS.—The Secretary of State shall provide
to the Committees specified in subsection (a) on a quar-
terly basis—
(1) in consultation with the Secretary of De-
fense and the Administrator of the Drug Enforce-
ment Administration, a report on the status and
number of United States personnel deployed in and
around Haiti on Department of Defense, Drug En-
forcement Administration, and United Nations mis-
sions, including displays by functional or operational
assignment for such personnel and the cost to the
United States of these operations; and
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(2) the monthly reports, prepared during the
previous quarter, of the Organization of American
States/United Nations International Civilian Mission
to Haiti (MICIVIH).
REQUIREMENT FOR DISCLOSURE OF FOREIGN AID IN
REPORT OF SECRETARY OF STATE
SEC. 561. (a) FOREIGN AID REPORTING REQUIRE-
MENT.—In addition to the voting practices of a foreign
country, the report required to be submitted to Congress
under section 406(a) of the Foreign Relations Authoriza-
tion Act, fiscal years 1990 and 1991 (22 U.S.C. 2414a),
shall include a side-by-side comparison of individual coun-
tries’ overall support for the United States at the United
Nations and the amount of United States assistance pro-
vided to such country in fiscal year 1998.
(b) UNITED STATES ASSISTANCE.—For purposes of
this section, the term ‘‘United States assistance’’ has the
meaning given the term in section 481(e)(4) of the For-
eign Assistance Act of 1961 (22 U.S.C. 2291(e)(4)).
RESTRICTIONS ON VOLUNTARY CONTRIBUTIONS TO
UNITED NATIONS AGENCIES
SEC. 562. (a) PROHIBITION ON VOLUNTARY CON-
TRIBUTIONS FOR THE UNITED NATIONS.—None of the
funds appropriated by this Act may be made available to
pay any voluntary contribution of the United States to the
United Nations (including the United Nations Develop-
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ment Program) if the United Nations implements or im-
poses any taxation on any United States persons.
(b) CERTIFICATION REQUIRED FOR DISBURSEMENT
OF FUNDS.—None of the funds appropriated by this Act
may be made available to pay any voluntary contribution
of the United States to the United Nations (including the
United Nations Development Program) unless the Presi-
dent certifies to the Congress 15 days in advance of such
payment that the United Nations is not engaged in any
effort to implement or impose any taxation on United
States persons in order to raise revenue for the United
Nations or any of its specialized agencies.
(c) DEFINITIONS.—As used in this section the term
‘‘United States person’’ refers to—
(1) a natural person who is a citizen or national
of the United States; or
(2) a corporation, partnership, or other legal
entity organized under the United States or any
State, territory, possession, or district of the United
States.
LIMITATION ON ASSISTANCE TO THE PALESTINIAN
AUTHORITY
SEC. 563. (a) PROHIBITION OF FUNDS.—None of the
funds appropriated by this Act to carry out the provisions
of chapter 4 of part II of the Foreign Assistance Act of
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1961 may be obligated or expended with respect to provid-
ing funds to the Palestinian Authority.
(b) WAIVER.—The prohibition included in subsection
(a) shall not apply if the President certifies in writing to
the Speaker of the House of Representatives and the
President pro tempore of the Senate that waiving such
prohibition is important to the national security interests
of the United States.
(c) PERIOD
OF APPLICATION
OF WAIVER.—Any
waiver pursuant to subsection (b) shall be effective for no
more than a period of six months at a time and shall not
apply beyond twelve months after enactment of this Act.
LIMITATION ON ASSISTANCE TO THE GOVERNMENT OF
CROATIA
SEC. 564. None of the funds appropriated by title II
of this Act may be made available to the Government of
Croatia to relocate the remains of Croatian Ustashe sol-
diers, at the site of the World War II concentration camp
at Jasenovac, Croatia.
LIMITATION ON ASSISTANCE TO SECURITY FORCES
SEC. 565. None of the funds made available by this
Act may be provided to any unit of the security forces
of a foreign country if the Secretary of State has credible
evidence that such unit has committed gross violations of
human rights, unless the Secretary determines and reports
to the Committees on Appropriations that the government
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of such country is taking effective measures to bring the
responsible members of the security forces unit to justice:
Provided, That nothing in this section shall be construed
to withhold funds made available by this Act from any
unit of the security forces of a foreign country not credibly
alleged to be involved in gross violations of human rights:
Provided further, That in the event that funds are withheld
from any unit pursuant to this section, the Secretary of
State shall promptly inform the foreign government of the
basis for such action and shall, to the maximum extent
practicable, assist the foreign government in taking effec-
tive measures to bring the responsible members of the se-
curity forces to justice.
LIMITATIONS ON TRANSFER OF MILITARY EQUIPMENT TO
EAST TIMOR
SEC. 566. In any agreement for the sale, transfer,
or licensing of any lethal equipment or helicopter for Indo-
nesia entered into by the United States pursuant to the
authority of this Act or any other Act, the agreement shall
state that the United States expects that the items will
not be used in East Timor: Provided, That nothing in this
section shall be construed to limit Indonesia’s inherent
right to legitimate national self-defense as recognized
under the United Nations Charter and international law.
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RESTRICTIONS ON ASSISTANCE TO COUNTRIES PROVIDING
SANCTUARY TO INDICTED WAR CRIMINALS
SEC. 567. (a) BILATERAL ASSISTANCE.—None of the
funds made available by this or any prior Act making ap-
propriations for foreign operations, export financing and
related programs, may be provided for any country, entity
or canton described in subsection (d).
(b) MULTILATERAL ASSISTANCE.—
(1) PROHIBITION.—The Secretary of the Treas-
ury shall instruct the United States executive direc-
tors of the international financial institutions to
work in opposition to, and vote against, any exten-
sion by such institutions of any financial or technical
assistance or grants of any kind to any country or
entity described in subsection (d).
(2) NOTIFICATION.—Not less than 15 days be-
fore any vote in an international financial institution
regarding the extension of financial or technical as-
sistance or grants to any country or entity described
in subsection (d), the Secretary of the Treasury, in
consultation with the Secretary of State, shall pro-
vide to the Committee on Appropriations and the
Committee on Foreign Relations of the Senate and
the Committee on Appropriations and the Commit-
tee on Banking and Financial Services of the House
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of Representatives a written justification for the pro-
posed assistance, including an explanation of the
United States position regarding any such vote, as
well as a description of the location of the proposed
assistance by municipality, its purpose, and its in-
tended beneficiaries.
(3) DEFINITION.—The term ‘‘international fi-
nancial institution’’ includes the International Mone-
tary Fund, the International Bank for Reconstruc-
tion and Development, the International Develop-
ment Association, the International Finance Cor-
poration, the Multilateral Investment Guaranty
Agency, and the European Bank for Reconstruction
and Development.
(c) EXCEPTIONS.—
(1) IN GENERAL.—Subject to paragraph (2),
subsections (a) and (b) shall not apply to the provi-
sion of—
(A) humanitarian assistance;
(B) democratization assistance;
(C) assistance for cross border physical in-
frastructure projects involving activities in both
a sanctioned country, entity, or canton and a
nonsanctioned contiguous country, entity, or
canton, if the project is primarily located in and
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primarily benefits the nonsanctioned country,
entity, or canton and if the portion of the
project located in the sanctioned country, en-
tity, or canton is necessary only to complete the
project;
(D) small-scale assistance projects or ac-
tivities requested by United States Armed
Forces that promote good relations between
such forces and the officials and citizens of the
areas in the United States SFOR sector of Bos-
nia;
(E) implementation of the Brcko Arbitral
Decision;
(F) lending by the international financial
institutions to a country or entity to support
common monetary and fiscal policies at the na-
tional level as contemplated by the Dayton
Agreement; or
(G) direct lending to a non-sanctioned en-
tity, or lending passed on by the national gov-
ernment to a non-sanctioned entity.
(2) FURTHER
LIMITATIONS.—Notwithstanding
paragraph (1)—
(A) no assistance may be made available
by this Act, or any prior Act making appropria-
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tions for foreign operations, export financing
and related programs, in any country, entity, or
canton described in subsection (d), for a pro-
gram, project, or activity in which a publicly in-
dicted war criminal is known to have any finan-
cial or material interest; and
(B) no assistance (other than emergency
foods or medical assistance or demining assist-
ance) may be made available by this Act, or any
prior Act making appropriations for foreign op-
erations, export financing and related programs
for any program, project, or activity in a com-
munity within any country, entity or canton de-
scribed in subsection (d) if competent authori-
ties within that community are not complying
with the provisions of Article IX and Annex 4,
Article II, paragraph 8 of the Dayton Agree-
ment relating to war crimes and the Tribunal.
(d) SANCTIONED COUNTRY, ENTITY, OR CANTON.—
A sanctioned country, entity, or canton described in this
section is one whose competent authorities have failed, as
determined by the Secretary of State, to take necessary
and significant steps to apprehend and transfer to the Tri-
bunal all persons who have been publicly indicted by the
Tribunal.
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(e) WAIVER.—
(1) IN GENERAL.—The Secretary of State may
waive the application of subsection (a) or subsection
(b) with respect to specified bilateral programs or
international financial institution projects or pro-
grams in a sanctioned country, entity, or canton
upon providing a written determination to the Com-
mittee on Appropriations and the Committee on
Foreign Relations of the Senate and the Committee
on Appropriations and the Committee on Inter-
national Relations of the House of Representatives
that such assistance directly supports the implemen-
tation of the Dayton Agreement and its Annexes,
which include the obligation to apprehend and trans-
fer indicted war criminals to the Tribunal.
(2) REPORT.—Not later than 15 days after the
date of any written determination under paragraph
(e)(1), the Secretary of State shall submit a report
to the Committee on Appropriations and the Com-
mittee on Foreign Relations of the Senate and the
Committee on Appropriations and the Committee on
International Relations of the House of Representa-
tives regarding the status of efforts to secure the
voluntary surrender or apprehension and transfer of
persons indicted by the Tribunal, in accordance with
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the Dayton Agreement, and outlining obstacles to
achieving this goal.
(3) ASSISTANCE PROGRAMS AND PROJECTS AF-
FECTED.—Any waiver made pursuant to this sub-
section shall be effective only with respect to a speci-
fied bilateral program or multilateral assistance
project or program identified in the determination of
the Secretary of State to Congress.
(f ) TERMINATION
OF SANCTIONS.—The sanctions
imposed pursuant to subsections (a) and (b) with respect
to a country or entity shall cease to apply only if the Sec-
retary of State determines and certifies to Congress that
the authorities of that country, entity, or canton have ap-
prehended and transferred to the Tribunal all persons who
have been publicly indicted by the Tribunal.
(g) DEFINITIONS.—As used in this section—
(1) COUNTRY.—The term ‘‘country’’ means
Bosnia-Herzegovina, Croatia, Serbia, and Montene-
gro.
(2) ENTITY.—The term ‘‘entity’’ refers to the
Federation of Bosnia and Herzegovina and the
Republika Srpska.
(3) CANTON.—The term ‘‘canton’’ means the
administrative units in Bosnia and Herzegovina.
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(4) DAYTON AGREEMENT.—The term ‘‘Dayton
Agreement’’ means the General Framework Agree-
ment for Peace in Bosnia and Herzegovina, together
with annexes relating thereto, done at Dayton, No-
vember 10 through 16, 1995.
(5) TRIBUNAL.—The term ‘‘Tribunal’’ means
the International Criminal Tribunal for the Former
Yugoslavia.
(h) ROLE OF HUMAN RIGHTS ORGANIZATIONS AND
GOVERNMENT AGENCIES.—In carrying out this section,
the Secretary of State, the Administrator of the Agency
for International Development, and the executive directors
of the international financial institutions shall consult with
representatives of human rights organizations and all gov-
ernment agencies with relevant information to help pre-
vent publicly indicted war criminals from benefitting from
any financial or technical assistance or grants provided to
any country or entity described in subsection (d).
ADDITIONAL REQUIREMENTS RELATING TO STOCKPILING
OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES
SEC. 568. (a) VALUE
OF ADDITIONS
TO STOCK-
PILES.—Section 514(b)(2)(A) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2321h(b)(2)(A)) is amended by
inserting before the period at the end the following: ‘‘and
$340,000,000 for fiscal year 1999’’.
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(b) REQUIREMENTS RELATING TO THE REPUBLIC OF
KOREA AND THAILAND.—Section 514(b)(2)(B) of such
Act (22 U.S.C. 2321h(b)(2)(B)) is amended by adding at
the end the following: ‘‘Of the amount specified in sub-
paragraph (A) for fiscal year 1999, not more than
$320,000,000 may be made available for stockpiles in the
Republic of Korea and not more than $20,000,000 may
be made available for stockpiles in Thailand.’’.
REQUIREMENTS FOR THE REPORTING TO CONGRESS OF
THE COSTS TO THE FEDERAL GOVERNMENT ASSOCI-
ATED WITH THE PROPOSED AGREEMENT TO REDUCE
GREENHOUSE GAS EMISSIONS
SEC. 569. The President shall provide to the Con-
gress a detailed account of all Federal agency obligations
and expenditures for climate change programs and activi-
ties, domestic and international, for fiscal year 1998,
planned obligations for such activities in fiscal year 1999,
and any plan for programs thereafter in the context of
negotiations to amend the Framework Convention on Cli-
mate Change (FCCC) to be provided to the appropriate
congressional committees no later than November 15,
1998.
WITHHOLDING ASSISTANCE TO COUNTRIES VIOLATING
UNITED NATIONS SANCTIONS AGAINST LIBYA
SEC. 570. (a) WITHHOLDING OF ASSISTANCE.—Ex-
cept as provided in subsection (b), whenever the President
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determines and certifies to Congress that the government
of any country is violating any sanction against Libya im-
posed pursuant to United Nations Security Council Reso-
lution 731, 748, or 883, then not less than 5 percent of
the funds allocated for the country under section 653(a)
of the Foreign Assistance Act of 1961 out of appropria-
tions in this Act shall be withheld from obligation and ex-
penditure for that country.
(b) EXCEPTION.—The requirement to withhold funds
under subsection (a) shall not apply to funds appropriated
in this Act for allocation under section 653(a) of the For-
eign Assistance Act of 1961 for development assistance
or for humanitarian assistance.
(c) WAIVER.—Funds may be provided for a country
without regard to subsection (a) if the President deter-
mines that to do so is in the national security interest of
the United States.
AID TO THE GOVERNMENT OF THE DEMOCRATIC
REPUBLIC OF CONGO
SEC. 571. None of the funds appropriated by this Act
may be provided for assistance for the central Government
of the Democratic Republic of Congo until such time as
the President reports in writing to the Congress that the
central Government of the Democratic Republic of Congo
is cooperating fully with investigators from the United Na-
tions in accounting for human rights violations committed
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in the Democratic Republic of Congo or adjacent coun-
tries.
ASSISTANCE FOR THE MIDDLE EAST
SEC. 572. Of the funds appropriated by this Act
under the headings ‘‘Economic Support Fund’’, ‘‘Foreign
Military Financing ’’, ‘‘International Military Education
and Training ’’, ‘‘Peacekeeping Operations’’, for refugees
resettling in Israel under the heading ‘‘Migration and Ref-
ugee Assistance’’, and for assistance for Israel to carry
out provisions of chapter 8 of part II of the Foreign As-
sistance Act of 1961 under the heading ‘‘Nonproliferation,
Anti-Terrorism, Demining, and Related Programs’’, not
more than a total of $5,402,850,000 may be made avail-
able for Israel, Egypt, Jordan, Lebanon, the West Bank
and Gaza, the Israel-Lebanon Monitoring Group, the Mul-
tinational Force and Observers, the Middle East Regional
Democracy Fund, Middle East Regional Cooperation, and
Middle East Multilateral Working Groups: Provided, That
any funds that were appropriated under such headings in
prior fiscal years and that were at the time of enactment
of this Act obligated or allocated for other recipients may
not during fiscal year 1999 be made available for activities
that, if funded under this Act, would be required to count
against this ceiling: Provided further, That funds may be
made available notwithstanding the requirements of this
section if the President determines and certifies to the
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Committees on Appropriations that it is important to the
national security interest of the United States to do so
and any such additional funds shall only be provided
through the regular notification procedures of the Com-
mittees on Appropriations.
ENTERPRISE FUND RESTRICTIONS
SEC. 573. Prior to the distribution of any assets re-
sulting from any liquidation, dissolution, or winding up
of an Enterprise Fund, in whole or in part, the President
shall submit to the Committees on Appropriations, in ac-
cordance with the regular notification procedures of the
Committees on Appropriations, a plan for the distribution
of the assets of the Enterprise Fund.
CAMBODIA
SEC. 574. (a) None of the funds appropriated in this
Act may be made available for assistance for the Govern-
ment of Cambodia: Provided, That the restrictions under
this heading shall not apply to humanitarian, demining or
election-related programs or activities: Provided further,
That the provision of such assistance shall be made avail-
able subject to the regular notification procedures of the
Committees on Appropriations.
(b) The Secretary of the Treasury should instruct the
United States executive directors of the international fi-
nancial institutions to use the voice and vote of the United
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States to oppose loans to the Government of Cambodia,
except loans to support basic human needs.
EXPORT FINANCING TRANSFER AUTHORITIES
SEC. 575. Not to exceed 5 percent of any appropria-
tion other than for administrative expenses made available
for fiscal year 1999 for programs under title I of this Act
may be transferred between such appropriations for use
for any of the purposes, programs and activities for which
the funds in such receiving account may be used, but no
such appropriation, except as otherwise specifically pro-
vided, shall be increased by more than 25 percent by any
such transfer: Provided, That the exercise of such author-
ity shall be subject to the regular notification procedures
of the Committees on Appropriations.
AUTHORIZATION FOR POPULATION PLANNING
SEC. 576. Not to exceed $385,000,000 of the funds
appropriated in title II of this Act may be available for
population planning activities or other population assist-
ance.
REPORT ON FOREIGN MILITARY TRAINING
SEC. 577. The Secretary of Defense and the Sec-
retary of State shall jointly provide to the Congress by
January 31, 1999, a report on all overseas military train-
ing provided to foreign military personnel under programs
administered by the Department of Defense and the De-
partment of State during fiscal years 1998 and 1999, in-
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cluding those proposed for fiscal year 1999. This report
shall include, for each such military training activity, the
foreign policy justification and purpose for the training ac-
tivity, the cost of the training activity, the number of for-
eign students trained and their units of operation, and the
location of the training. In addition, this report shall also
include, with respect to United States personnel, the oper-
ational benefits to United States forces derived from each
such training activity and the United States military units
involved in each such training activity. This report may
include a classified annex if deemed necessary and appro-
priate.
KOREAN PENINSULA ENERGY DEVELOPMENT
ORGANIZATION
SEC. 578. Notwithstanding sections 614 and 451 of
the Foreign Assistance Act of 1961, as amended, or any
other provision of law, none of the funds appropriated by
this Act may be used for a voluntary contribution to, or
assistance for, the Korean Peninsula Energy Development
Organization.
REPEAL OF RESTRICTIONS ON ASSISTANCE
SEC. 579. Section 907 of the FREEDOM Support
Act is hereby repealed.
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TITLE VI
FUNDS APPROPRIATED TO THE PRESIDENT
INTERNATIONAL MONETARY PROGRAMS
LOANS TO THE INTERNATIONAL MONETARY FUND
For loans to the International Monetary Fund under
section 17 of the Bretton Woods Agreements Act pursuant
to the New Arrangements to Borrow, the dollar equivalent
of 2,462,000,000 Special Drawing Rights, to remain avail-
able until expended. In addition, the amounts appro-
priated by title III of the Foreign Aid and Related Agen-
cies Appropriations Act, 1963 (Public Law 87–872) and
section 1101(b) of the Supplemental Appropriations Act,
1984 (Public Law 98–181) may also be used under section
17 of the Bretton Woods Agreements Act pursuant to the
New Arrangements to Borrow.
GENERAL PROVISIONS—THIS TITLE
CONDITIONS FOR THE USE OF APPROPRIATED FUNDS
SEC. 601. (a) CONDITION FOR THE USE OF APPRO-
PRIATED FUNDS FOR QUOTA INCREASE.—None of the
funds appropriated after July 15, 1998, under the heading
‘‘United States Quota in the International Monetary
Fund’’ may be obligated or made available to the Inter-
national Monetary Fund until 15 days after the Secretary
of the Treasury and the Chairman of the Board of Gov-
ernors of the Federal Reserve System jointly provide writ-
ten notification to the appropriate committees that the
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major shareholders of the International Monetary Fund
have publicly agreed to, and will act to implement in the
Fund policies providing that for conditions in standby
agreements or other arrangements regarding the use of
Fund resources include requirements that the recipient
country—
(1) liberalize restrictions on trade in goods and
services and on investment, at a minimum consistent
with the terms of all international trade agreements
of which the borrowing country is a signatory;
(2) eliminate the pervasive practice or policy of
government directed lending on non-commercial
terms or provision of market distorting subsidies to
favored industries, enterprises, parties, or institu-
tions; and
(3) guarantee nondiscriminatory treatment in
insolvency proceedings between domestic and foreign
creditors, and for debtors and other concerned per-
sons.
(b) CONDITION FOR THE USE OF APPROPRIATED
FUNDS FOR LOANS TO THE IMF.—
(1) IN GENERAL.—None of the funds appro-
priated in this title under the heading ‘‘Loans to the
International Monetary Fund’’ may be obligated or
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made available to the International Monetary Fund
unless—
(A) there is in effect a written certifi-
cation, made by the Secretary of the Treasury,
to the appropriate committees that the Inter-
national Monetary Fund has met the require-
ments of paragraph (2); and
(B) the Congress has enacted legislation
approving the certification.
(2) REQUIREMENTS.—The requirements of this
paragraph are that the International Monetary Fund
has in effect policies that are designed to ensure the
following:
(A) Within 3 months after any meeting of
the Executive Board of the International Mone-
tary Fund at which a Letter of Intent, a Policy
Framework Paper, an Article IV economic re-
view consultation with a member country, or a
change in a general policy of the International
Monetary Fund is discussed, a full written sum-
mary of the meeting shall be made available for
public inspection, with the following information
redacted:
(i) Information which, if released,
would adversely affect the national security
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of a country, and which is of the type that
would be classified by United States Gov-
ernment.
(ii) Market-sensitive information.
(iii) Proprietary information.
(B) Within 3 months after the Executive
Board of the International Monetary Fund at
which a Letter of Intent or a Policy Framework
Paper is discussed, a copy of the Letter of In-
tent or Policy Framework Paper shall be made
available for public inspection with the following
information redacted:
(i) Information which, if released,
would adversely affect the national security
of a country, and which is of the type that
would be classified by United States Gov-
ernment.
(ii) Market-sensitive information.
(iii) Proprietary information.
(C) Interest charges on loans to member
countries shall be based on the International
Monetary Fund’s market-determined cost of fi-
nancing, adjusted weekly, and loans from any
facility established to address circumstances of
exceptional balance of payments difficulties and
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impaired access to capital due to a sudden loss
of market confidence should carry a substantial
surcharge that serves to provide an incentive
for early repayment and encourage private mar-
ket refinancing, and that reflects risk.
REPORTS ON FINANCIAL STABILIZATION PROGRAMS LED
BY THE INTERNATIONAL MONETARY FUND IN CON-
NECTION WITH FINANCING FROM THE EXCHANGE
STABILIZATION FUND
SEC. 602. (a) IN GENERAL.—The Secretary of the
Treasury shall submit to the appropriate committees 2 re-
ports on the implementation of financial stabilization pro-
grams led by the International Monetary Fund in any
country in connection with which the United States has
made a commitment to provide or has provided financing
from the stabilization fund established under section 5302
of title 31, United States Code. A report shall include the
following with respect to each such country:
(1) The extent that the country has made
progress in making conglomerate business practices
more transparent through the application of inter-
nationally accepted accounting practices, independ-
ent external audits, full disclosure, and provision of
consolidated statements.
(2) The success of measures undertaken by the
United States Government and the International
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Monetary Fund to ensure that the country will not
provide Government-subsidized support or tax privi-
leges to bail out individual corporations, particularly
in the semiconductor, steel, plywood, paper, and
glassware industries.
(3) Whether International Monetary Fund in-
volvement in labor market flexibility measures has
had a negative effect on worker rights in the coun-
try, and the nature of any such negative effects.
(b) TIMING OF REPORTS.—The first report required
by subsection (a) shall be due by December 1, 1998, and
the second such report shall be due by May 1, 1999.
(c) 
NOTIFICATION
OF
IMPENDING
DISBURSE-
MENTS.—Not later than 36 hours before the disbursement
to a country with respect to which a report is required
by subsection (a) of any resources from the stabilization
fund referred to in subsection (a) in connection with the
implementation of a financial stabilization program de-
scribed in subsection (a), the Secretary of the Treasury
shall notify the appropriate committees of the impending
disbursement.
ADVISORY COMMISSION
SEC. 603. (a) IN GENERAL.—The Secretary of the
Treasury shall establish an International Financial Insti-
tution Advisory Commission (in this section referred to as
the ‘‘Commission’’).
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(b) MEMBERSHIP.—The Commission shall include—
(1) 6 individuals appointed by the Congress, in-
cluding at least 2 former Secretaries of the Treas-
ury, 1 of whom shall serve as the chairman of the
Commission; and
(2) not to exceed 2 members as designated by
the Secretary.
(c) RECOMMENDATIONS.—Within 180 days after the
appointment of Commission members, the Commission
shall submit to the appropriate committees a report that
contains the recommendations of the Commission regard-
ing the future role and responsibilities of the International
Monetary Fund and the International Bank for Recon-
struction and Development, including changes to the pol-
icy goals set forth for the International Monetary Fund
and the International Bank for Reconstruction and Devel-
opment in the Bretton Woods Agreements Act and the
International Financial Institutions Act.
(d) INTERNATIONAL ADVISORY COMMITTEE.—The
Secretary of the Treasury shall instruct the United States
Executive Director at the International Monetary Fund to
use the voice and vote of the United States to seek the
establishment of a permanent advisory committee to the
Interim Committee of the Board of Governors of the Inter-
national Monetary Fund, that is to consist of elected mem-
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bers of the national legislatures of the member countries
directly represented by appointed members of the Execu-
tive Board of the International Monetary Fund.
DEFINITIONS
SEC. 604. For purposes of sections 601 through 603
of this chapter, the term ‘‘appropriate committees’’ means
the Committees on Appropriations, Foreign Relations, and
Banking, Housing, and Urban Affairs of the Senate and
the Committees on Appropriations and Banking and Fi-
nancial Services of the House of Representatives.
PARTICIPATION IN QUOTA INCREASE
SEC. 605. (a) IN GENERAL.—The Bretton Woods
Agreements Act (22 U.S.C. 286–286mm) is amended by
adding at the end the following:
‘‘SEC. 61. QUOTA INCREASE.
‘‘(a) IN GENERAL.—The United States Governor of
the Fund may consent to an increase in the quota of the
United States in the Fund equivalent to 10,622,500,000
Special Drawing Rights.
‘‘(b) SUBJECT TO APPROPRIATIONS.—The authority
provided by subsection (a) shall be effective only to such
extent or in such amounts as are provided in advance in
appropriations Acts.’’.
(b) EFFECTIVENESS SUBJECT TO CERTIFICATION.—
The amendment made by subsection (a) shall not take ef-
fect until the Secretary of the Treasury certifies to the
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Committee on Banking and Financial Services of the
House of Representatives and the Committee on Foreign
Relations of the Senate that the investors and banks have
made a significant contribution in conjunction with a fi-
nancing package that, in the context of an international
financial crisis, might include taxpayer supported official
financing.
NEW ARRANGEMENTS TO BORROW
SEC. 606. Section 17 of the Bretton Woods Agree-
ments Act (22 U.S.C. 286e–2 et seq.) is amended—
(1) in subsection (a)—
(A) by striking ‘‘and February 24, 1983’’
and inserting ‘‘February 24, 1983, and Janu-
ary 27, 1997’’; and
(B) by striking ‘‘4,250,000,000’’ and in-
serting ‘‘6,712,000,000’’;
(2) 
in 
subsection 
(b), 
by 
striking
‘‘4,250,000,000’’ and inserting ‘‘6,712,000,000’’;
and
(3) in subsection (d)—
(A) by inserting ‘‘or the Decision of Janu-
ary 27, 1997,’’ after ‘‘February 24, 1983,’’;
and
(B) by inserting ‘‘or the New Arrange-
ments to Borrow, as applicable’’ before the pe-
riod at the end.
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ADVOCACY OF POLICIES TO ENHANCE THE GENERAL EF-
FECTIVENESS OF THE INTERNATIONAL MONETARY
FUND
SEC. 607. (a) IN GENERAL.—Title XV of the Inter-
national Financial Institutions Act (22 U.S.C. 262o–262o-
1) is amended by adding at the end the following:
‘‘SEC. 1503. ADVOCACY OF POLICIES TO ENHANCE THE
GENERAL EFFECTIVENESS OF THE INTER-
NATIONAL MONETARY FUND.
‘‘(a) IN GENERAL.—The Secretary of the Treasury
shall instruct the United States Executive Director of the
International Monetary Fund to use aggressively the voice
and vote of the Executive Director to do the following:
‘‘(1) Vigorously promote policies to increase the
effectiveness of the International Monetary Fund in
structuring programs and assistance so as to pro-
mote policies and actions that will contribute to ex-
change rate stability and avoid competitive devalu-
ations that will further destabilize the international
financial and trading systems.
‘‘(2) Vigorously promote policies to increase the
effectiveness of the International Monetary Fund in
promoting market-oriented reform, trade liberaliza-
tion, economic growth, democratic governance, and
social stability through—
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‘‘(A) appropriate liberalization of pricing,
trade, investment, and exchange rate regimes of
countries to open countries to the competitive
forces of the global economy;
‘‘(B) opening domestic markets to fair and
open internal competition among domestic en-
terprises by eliminating inappropriate favor-
itism for small or large businesses, eliminating
elite monopolies, creating and effectively imple-
menting anti-trust and anti-monopoly laws to
protect free competition, and establishing fair
and accessible legal procedures for dispute set-
tlement among domestic enterprises;
‘‘(C) privatizing industry in a fair and eq-
uitable manner that provides economic opportu-
nities to a broad spectrum of the population,
eliminating government and elite monopolies,
closing loss-making enterprises, and reducing
government control over the factors of produc-
tion;
‘‘(D) economic deregulation by eliminating
inefficient and overly burdensome regulations
and strengthening the legal framework support-
ing private contract and intellectual property
rights;
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‘‘(E) establishing or strengthening key ele-
ments of a social safety net to cushion the ef-
fects on workers of unemployment and disloca-
tion; and
‘‘(F) encouraging the opening of markets
for agricultural commodities and products by
requiring recipient countries to make efforts to
reduce trade barriers.
‘‘(3) Vigorously promote policies to increase the
effectiveness of the International Monetary Fund, in
concert with appropriate international authorities
and other international financial institutions (as de-
fined in section 1701(c)(2)), in strengthening finan-
cial systems in developing countries, and encourag-
ing the adoption of sound banking principles and
practices, including the development of laws and reg-
ulations that will help to ensure that domestic finan-
cial institutions meet strong standards regarding
capital reserves, regulatory oversight, and trans-
parency.
‘‘(4) Vigorously promote policies to increase the
effectiveness of the International Monetary Fund, in
concert with appropriate international authorities
and other international financial institutions (as de-
fined in section 1701(c)(2)), in facilitating the devel-
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opment and implementation of internationally ac-
ceptable domestic bankruptcy laws and regulations
in developing countries, including the provision of
technical assistance as appropriate.
‘‘(5) Vigorously promote policies that aim at
appropriate burden-sharing by the private sector so
that investors and creditors bear more fully the con-
sequences of their decisions, and accordingly advo-
cate policies which include—
‘‘(A) strengthening crisis prevention and
early warning signals through improved and
more effective surveillance of the national eco-
nomic policies and financial market develop-
ment of countries (including monitoring of the
structure and volume of capital flows to identify
problematic imbalances in the inflow of short
and medium term investment capital, poten-
tially destabilizing inflows of offshore lending
and foreign investment, or problems with the
maturity profiles of capital to provide warnings
of imminent economic instability), and fuller
disclosure of such information to market par-
ticipants;
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‘‘(B) accelerating work on strengthening fi-
nancial systems in emerging market economies
so as to reduce the risk of financial crises;
‘‘(C) consideration of provisions in debt
contracts that would foster dialogue and con-
sultation between a sovereign debtor and its
private creditors, and among those creditors;
‘‘(D) consideration of extending the scope
of the International Monetary Fund’s policy on
lending to members in arrears and of other
policies so as to foster the dialogue and con-
sultation referred to in subparagraph (C);
‘‘(E) intensified consideration of mecha-
nisms to facilitate orderly workout mechanisms
for countries experiencing debt or liquidity cri-
ses;
‘‘(F) consideration of establishing ad hoc
or formal linkages between the provision of offi-
cial financing to countries experiencing a finan-
cial crisis and the willingness of market partici-
pants to meaningfully participate in any sta-
bilization effort led by the International Mone-
tary Fund;
‘‘(G) using the International Monetary
Fund to facilitate discussions between debtors
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and private creditors to help ensure that finan-
cial difficulties are resolved without inappropri-
ate resort to public resources; and
‘‘(H) the International Monetary Fund ac-
companying the provision of funding to coun-
tries experiencing a financial crisis resulting
from imprudent borrowing with efforts to
achieve a significant contribution by the private
creditors, investors, and banks which had ex-
tended such credits.
‘‘(6) Vigorously promote policies that would
make the International Monetary Fund a more ef-
fective mechanism, in concert with appropriate inter-
national authorities and other international financial
institutions (as defined in section 1701(c)(2)), for
promoting good governance principles within recipi-
ent countries by fostering structural reforms, includ-
ing procurement reform, that reduce opportunities
for corruption and bribery, and drug-related money
laundering.
‘‘(7) Vigorously promote the design of Inter-
national Monetary Fund programs and assistance so
that governments that draw on the International
Monetary Fund channel public funds away from un-
productive purposes, including large ‘show case’
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projects and excessive military spending, and toward
investment in human and physical capital as well as
social programs to protect the neediest and promote
social equity.
‘‘(8) Work with the International Monetary
Fund to foster economic prescriptions that are ap-
propriate to the individual economic circumstances
of each recipient country, recognizing that inappro-
priate stabilization programs may only serve to fur-
ther destabilize the economy and create unnecessary
economic, social, and political dislocation.
‘‘(9) Structure International Monetary Fund
programs and assistance so that the maintenance
and improvement of core labor standards are rou-
tinely incorporated as an integral goal in the policy
dialogue with recipient countries, so that—
‘‘(A) recipient governments commit to af-
fording workers the right to exercise inter-
nationally recognized core worker rights, includ-
ing the right of free association and collective
bargaining through unions of their own choos-
ing;
‘‘(B) measures designed to facilitate labor
market flexibility are consistent with such core
worker rights; and
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‘‘(C) the staff of the International Mone-
tary Fund surveys the labor market policies and
practices of recipient countries and recommends
policy initiatives that will help to ensure the
maintenance or improvement of core labor
standards.
‘‘(10) Vigorously promote International Mone-
tary Fund programs and assistance that are struc-
tured to the maximum extent feasible to discourage
practices which may promote ethnic or social strife
in a recipient country.
‘‘(11) Vigorously promote recognition by the
International Monetary Fund that macroeconomic
developments and policies can affect and be affected
by environmental conditions and policies, and urge
the International Monetary Fund to encourage mem-
ber countries to pursue macroeconomic stability
while promoting environmental protection.
‘‘(12) Facilitate greater International Monetary
Fund transparency, including by enhancing acces-
sibility of the International Monetary Fund and its
staff, fostering a more open release policy toward
working papers, past evaluations, and other Inter-
national Monetary Fund documents, seeking to pub-
lish all Letters of Intent to the International Mone-
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tary Fund and Policy Framework Papers, and estab-
lishing a more open release policy regarding Article
IV consultations.
‘‘(13) Facilitate greater International Monetary
Fund accountability and enhance International Mon-
etary Fund self-evaluation by vigorously promoting
review of the effectiveness of the Office of Internal
Audit and Inspection and the Executive Board’s ex-
ternal evaluation pilot program and, if necessary, the
establishment of an operations evaluation depart-
ment modeled on the experience of the International
Bank for Reconstruction and Development, guided
by such key principles as usefulness, credibility,
transparency, and independence.
‘‘(14) Vigorously promote coordination with the
International Bank for Reconstruction and Develop-
ment and other international financial institutions
(as defined in section 1701(c)(2)) in promoting
structural reforms which facilitate the provision of
credit to small businesses, including microenterprise
lending, especially in the world’s poorest, heavily in-
debted countries.
‘‘(b) COORDINATION WITH OTHER EXECUTIVE DE-
PARTMENTS.—To the extent that it would assist in achiev-
ing the goals described in subsection (a), the Secretary
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of the Treasury shall pursue the goals in coordination with
the Secretary of State, the Secretary of Labor, the Sec-
retary of Commerce, the Administrator of the Environ-
mental Protection Agency, the Administrator of the Agen-
cy for International Development, and the United States
Trade Representative.’’.
(b) ADVISORY COMMITTEE ON IMF POLICY.—Sec-
tion 1701 of such Act (22 U.S.C. 262p–5) is amended
by adding at the end the following:
‘‘(e) ADVISORY COMMITTEE ON IMF POLICY.—
‘‘(1) IN
GENERAL.—The Secretary of the
Treasury shall establish an International Monetary
Fund Advisory Committee (in this subsection re-
ferred to as the ‘Advisory Committee’).
‘‘(2) MEMBERSHIP.—The Advisory Committee
shall consist of 9 members appointed by the Sec-
retary of the Treasury, after appropriate consulta-
tions with the relevant organizations, as follows:
‘‘(A) 1 member shall be a former Secretary
or Deputy Secretary of the Treasury, who shall
serve as the chairman of the Advisory Commit-
tee.
‘‘(B) 2 members shall be representatives
from organized labor.
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‘‘(C) 2 members shall be representatives
from banking and financial services.
‘‘(D) 2 members shall be representatives
from industry and agriculture.
‘‘(E) 2 members shall be representatives
from 
nongovernmental 
environmental 
and
human rights organizations.
‘‘(3) DUTIES.—Not less frequently than every 6
months, the Advisory Committee shall meet with the
Secretary of the Treasury or the Deputy Secretary
of the Treasury to review, and provide advice on, the
extent to which individual country International
Monetary Fund programs meet the policy goals set
forth in this Act regarding the International Mone-
tary Fund.
‘‘(4) INAPPLICABILITY OF TERMINATION PROVI-
SION
OF
THE
FEDERAL
ADVISORY
COMMITTEE
ACT.—Section 14(a)(2) of the Federal Advisory
Committee Act shall not apply to the Advisory Com-
mittee.’’.
SENSE OF THE CONGRESS ON THE ROLE OF JAPAN IN
RESTORING REGIONAL AND GLOBAL ECONOMIC GROWTH
SEC. 608. It is the sense of the Congress that Japan
should assume a greater regional leadership role, which
would coincide with Japan’s goal of promoting strong do-
mestic demand-led growth and avoiding a significant in-