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any person to practice abortions. 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 the perform-
ance 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 bio-
medical research which relates in whole or in part, to meth-
ods of, or the performance of, abortions or involuntary steri-
lization 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 abor-
tions and involuntary sterilizations: Provided, That none
of the funds made available under this Act may be used
to lobby for or against abortion.
LIMITATIONS ON FUNDING FOR INTERNATIONAL FAMILY
PLANNING
SEC. 519. In determining eligibility for assistance
from funds appropriated to carry out section 104 of the
Foreign Assistance Act of 1961, nongovernmental and mul-
tilateral organizations shall not be subjected to requirements
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more restrictive than the requirements applicable to foreign
governments for such assistance.
REPORTING REQUIREMENT
SEC. 520. Section 25 of the Arms Export Control Act
is amended—
(1) in subsection (a), by striking ‘‘Congress’’ and
inserting in lieu thereof ‘‘appropriate congressional
committees’’;
(2) in subsection (b), by striking ‘‘the Committee
on Foreign Relations of the Senate or the Committee
on Foreign Affairs of the House of Representatives’’
and inserting in lieu thereof ‘‘any of the congressional
committees described in subsection (e)’’; and
(3) by adding the following subsection:
‘‘(e) As used in this section, the term ‘appropriate con-
gressional committees’ means the Committee on Foreign Re-
lations and the Committee on Appropriations of the Senate
and the Committee on International Relations and the
Committee on Appropriations of the House of Representa-
tives.’’.
SPECIAL NOTIFICATION REQUIREMENTS
SEC. 521. None of the funds appropriated in this Act
shall be obligated or expended for Colombia, Guatemala (ex-
cept that this provision shall not apply to development as-
sistance for Guatemala), Dominican Republic, Haiti, Libe-
ria, Pakistan, Peru, Serbia, Sudan, or the Democratic Re-
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public of Congo except as provided through the regular noti-
fication procedures of the Committee on Appropriations.
DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY
SEC. 522. For the purpose of this Act, ‘‘program,
project, and activity’’ shall be defined at the Appropriations
Act account level and shall include all Appropriations and
Authorizations Acts earmarks, ceilings, and limitations
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 program level
funding within each such account; for the development as-
sistance accounts of the Agency for International Develop-
ment ‘‘program, project, and activity’’ shall also be consid-
ered to include central program level funding, either as (1)
justified to the Congress, or (2) allocated by the executive
branch in accordance with a report, to be provided to the
Committees on Appropriations within thirty days of enact-
ment of this Act, as required by section 653(a) of the For-
eign Assistance Act of 1961.
CHILD SURVIVAL, AIDS, AND OTHER ACTIVITIES
SEC. 523. Up to $10,000,000 of the funds made avail-
able 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 pri-
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vate and voluntary organizations for the full cost of indi-
viduals (including for the personal services of such individ-
uals) detailed or assigned to, or contracted by, as the case
may be, the Agency for International Development for the
purpose of carrying out family planning activities, child
survival, and basic education activities, and activities re-
lating to research on, and the treatment and control of ac-
quired immune deficiency syndrome in developing coun-
tries: Provided, That funds appropriated by this Act that
are made available for child survival activities or activities
relating to research on, and the treatment and control of,
acquired immune deficiency syndrome may be made avail-
able notwithstanding any provision of law that restricts as-
sistance to foreign countries: Provided further, That funds
appropriated by this Act that are made available for family
planning activities may be made available notwithstanding
section 512 of this Act and section 620(q) of the Foreign
Assistance Act of 1961.
PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN
COUNTRIES
SEC. 524. None of the funds appropriated or otherwise
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 People’s Re-
public of China, unless the President of the United States
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certifies that the withholding of these funds is contrary to
the national interest of the United States.
RECIPROCAL LEASING
SEC. 525. Section 61(a) of the Arms Export Control
Act is amended by striking out ‘‘1997’’ and inserting in
lieu thereof ‘‘1998’’.
NOTIFICATION ON EXCESS DEFENSE EQUIPMENT
SEC. 526. Prior to providing excess Department of De-
fense articles in accordance with section 516(a) of the For-
eign Assistance Act of 1961, the Department of Defense shall
notify the Committees on Appropriations to the same extent
and under the same conditions as are other committees pur-
suant to subsection (c) of that section: Provided, 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 accord-
ance with the regular notification procedures of such Com-
mittees: Provided further, That such Committees shall also
be informed of the original acquisition cost of such defense
articles.
AUTHORIZATION REQUIREMENT
SEC. 527. Funds appropriated by this Act may be obli-
gated and expended notwithstanding section 10 of Public
Law 91–672 and section 15 of the State Department Basic
Authorities Act of 1956.
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PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST
COUNTRIES
SEC. 528. (a) Notwithstanding any other provision of
law, funds appropriated for bilateral assistance under any
heading of this Act and funds appropriated under any such
heading in a provision of law enacted prior to enactment
of this Act, shall not be made available to any country
which the President determines—
(1) grants sanctuary from prosecution to any in-
dividual or group which has committed an act of
international terrorism, or
(2) otherwise supports international terrorism.
(b) The President may waive the application of sub-
section (a) to a country if the President determines that
national security or humanitarian reasons justify such
waiver. The President shall publish each waiver in the Fed-
eral Register and, at least fifteen days before the waiver
takes effect, shall notify the Committees on Appropriations
of the waiver (including the justification for the waiver)
in accordance with the regular notification procedures of
the Committees on Appropriations.
COMMERCIAL LEASING OF DEFENSE ARTICLES
SEC. 529. Notwithstanding any other provision of law,
and subject to the regular notification procedures of the
Committees on Appropriations, the authority of section
23(a) of the Arms Export Control Act may be used to pro-
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vide financing to Israel, Egypt and NATO and major non-
NATO allies for the procurement by leasing (including leas-
ing with an option to purchase) of defense articles from
United States commercial suppliers, not including Major
Defense Equipment (other than helicopters and other types
of aircraft having possible civilian application), if the
President determines that there are compelling foreign pol-
icy or national security reasons for those defense articles
being provided by commercial lease rather than by govern-
ment-to-government sale under such Act.
COMPETITIVE INSURANCE
SEC. 530. 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 opportunity
to bid for insurance when such insurance is necessary or
appropriate.
STINGERS IN THE PERSIAN GULF REGION
SEC. 531. Except as provided in section 581 of the For-
eign Operations, Export Financing, and Related Programs
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 Export Control
Act or chapter 2 of part II of the Foreign Assistance Act
of 1961.
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DEBT-FOR-DEVELOPMENT
SEC. 532. In order to enhance the continued participa-
tion of nongovernmental organizations in economic assist-
ance activities under the Foreign Assistance Act of 1961,
including endowments, debt-for-development and debt-for-
nature exchanges, a nongovernmental organization 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 cur-
rencies which accrue to that organization as a result of eco-
nomic 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 provided to that
organization.
SEPARATE ACCOUNTS
SEC. 533. (a) SEPARATE ACCOUNTS FOR LOCAL CUR-
RENCIES.—(1) If assistance is furnished to the government
of a foreign country under chapters 1 and 10 of part I or
chapter 4 of part II of the Foreign Assistance Act of 1961
under agreements which result in the generation 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—
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(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 government
the responsibilities of the Agency for International
Development and that government to monitor and ac-
count 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 depos-
ited in a separate account pursuant to subsection (a), or
an equivalent amount of local currencies, shall be used
only—
(A) to carry out chapters 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
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ensure that the equivalent of the local currencies disbursed
pursuant to subsection (a)(2)(A) from the separate 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 chapters 1 or
10 of part I or chapter 4 of part II (as the case may be),
any unencumbered balances of funds which remain in a
separate account established pursuant to subsection (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 provi-
sos contained under the heading ‘‘Sub-Saharan Africa, De-
velopment 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 For-
eign 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
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(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 for-
eign country, under chapters 1 or 10 of part I or chapter
4 of part II of the Foreign Assistance Act of 1961, as cash
transfer assistance or as nonproject sector assistance, that
country shall be required to maintain such funds in a sepa-
rate account and not commingle them with any other funds.
(2) APPLICABILITY OF OTHER PROVISIONS OF LAW.—
Such funds may be obligated and expended notwithstanding
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 Resolution 648 (H.
Report No. 98–1159).
(3) NOTIFICATION.—At least fifteen 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 Appro-
priations, 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 de-
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scription 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 Committees
on Appropriations.
COMPENSATION FOR UNITED STATES EXECUTIVE
DIRECTORS TO INTERNATIONAL FINANCIAL INSTITUTIONS
SEC. 534. (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 in-
stitution is compensated by the institution at a rate which,
together with whatever compensation such Director 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 institution at a
rate in excess of the rate provided for an individual occupy-
ing a position at level V of the Executive Schedule 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 Devel-
opment Fund, the African Development Bank, the African
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Development Fund, the International Monetary Fund, the
North American Development Bank, and the European
Bank for Reconstruction and Development.
COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST
IRAQ
SEC. 535. None of the funds appropriated or otherwise
made available pursuant to this Act to carry out the For-
eign Assistance Act of 1961 (including title IV of chapter
2 of part I, relating to the Overseas Private Investment Cor-
poration) 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 Council 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 humani-
tarian assistance for foreign nationals who have fled
Iraq and Kuwait.
COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES
SEC. 536. Direct costs associated with meeting a for-
eign customer’s additional or unique requirements will con-
tinue to be allowable under contracts under section 22(d)
of the Arms Export Control Act. Loadings applicable to
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such direct costs shall be permitted at the same rates appli-
cable to procurement of like items purchased by the Depart-
ment of Defense for its own use.
AUTHORITIES FOR THE PEACE CORPS
SEC. 537. 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-
thorized by or conducted under the Peace Corps Act. The
agency shall promptly report to the Committees on Appro-
priations whenever it is conducting activities or is propos-
ing to conduct activities in a country for which assistance
is prohibited.
IMPACT ON JOBS IN THE UNITED STATES
SEC. 538. None of the funds appropriated by this Act
may be obligated or expended to provide—
(a) 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 induce-
ment is likely to reduce the number of employees of
such business enterprise in the United States because
United States production is being replaced by such
enterprise outside the United States;
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(b) assistance for the purpose of establishing or
developing in a foreign country any export processing
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 carried out
within that zone or area, unless the President deter-
mines and certifies that such assistance is not likely
to cause a loss of jobs within the United States; or
(c) 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 commensurate
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.
RESTRICTIONS ON THE TERMINATION OF SANCTIONS
AGAINST SERBIA AND MONTENEGRO
SEC. 539. (a) RESTRICTIONS.—Notwithstanding any
other provision of law, no sanction, prohibition, or require-
ment described in section 1511 of the National Defense Au-
thorization Act for Fiscal Year 1994 (Public Law 103–160),
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with respect to Serbia or Montenegro, may cease to be effec-
tive, unless—
(1) the President first submits to the Congress a
certification described in subsection (b); and
(2) the requirements of section 1511 of that Act
are met.
(b) CERTIFICATION.—A certification described in this
subsection is a certification that—
(1) there is substantial progress toward—
(A) the realization of a separate identity for
Kosova and the right of the people of Kosova to
govern themselves; or
(B) the creation of an international protec-
torate for Kosova;
(2) there is substantial improvement in the
human rights situation in Kosova;
(3) international human rights observers are al-
lowed to return to Kosova; and
(4) the elected government of Kosova is permitted
to meet and carry out its legitimate mandate as elect-
ed representatives of the people of Kosova.
(c) WAIVER AUTHORITY.—The President may waive
the application in whole or in part, of subsection (a) if the
President certifies to the Congress that the President has
determined that the waiver is necessary to meet emergency
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humanitarian needs or to achieve a negotiated settlement
of the conflict in Bosnia and Herzegovina that is acceptable
to the parties.
SPECIAL AUTHORITIES
SEC. 540. (a) Funds appropriated in title II of this
Act that are made available for Afghanistan, Lebanon, and
for victims of war, displaced children, displaced Burmese,
humanitarian assistance for Romania, and humanitarian
assistance for the peoples of Kosova, may be made available
notwithstanding any other provision of law: Provided, That
any such funds that are made available for Cambodia shall
be subject to the provisions of section 531(e) of the Foreign
Assistance Act of 1961 and section 906 of the International
Security and Development Cooperation Act of 1985.
(b) Funds appropriated by this Act to carry out the
provisions of sections 103 through 106 of the Foreign Assist-
ance Act of 1961 may be used, notwithstanding any other
provision of law, for the purpose of supporting tropical for-
estry and energy programs aimed at reducing emissions of
greenhouse gases, and for the purpose of supporting bio-
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) During fiscal year 1998, the President may use up
to $40,000,000 under the authority of section 451 of the
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Foreign Assistance Act of 1961, notwithstanding the fund-
ing ceiling contained in subsection (a) of that section.
(d) The Agency for International Development may
employ personal services contractors, notwithstanding any
other provision of law, for the purpose of administering pro-
grams for the West Bank and Gaza.
POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT OF
ISRAEL
SEC. 541. 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;
and
(2) 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 commercial
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relations with Israel when determining whether
to sell weapons to said county;
(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 commercial rela-
tions with Israel; and
(D) encourage the allies and trading part-
ners of the United States to enact laws prohibit-
ing businesses from complying with the boycott
and penalizing businesses that do comply.
ANTI-NARCOTICS ACTIVITIES
SEC. 542. (a) Of the funds appropriated or otherwise
made available by this Act for ‘‘Economic Support Fund’’,
assistance may be provided to strengthen the administra-
tion of justice in countries in Latin America and the Carib-
bean 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 ju-
dicial 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. Funds made available pursuant to
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subsection (a) for Bolivia, Colombia and Peru may be made
available notwithstanding section 534(c) and the second
sentence of section 534(e) of the Foreign Assistance Act of
1961.
ELIGIBILITY FOR ASSISTANCE
SEC. 543. (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 ap-
propriated by this Act to carry out the provisions of chap-
ters 1, 10, and 11 of part I and chapter 4 of part II of
the Foreign Assistance Act of 1961, and from funds appro-
priated under the heading ‘‘Assistance for Eastern Europe
and the Baltic States’’: 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 nongovern-
mental organizations is in the national interest of the Unit-
ed States: Provided further, That before using the authority
of this subsection to furnish assistance in support of pro-
grams of nongovernmental organizations, the President
shall notify the Committees on Appropriations under the
regular notification procedures of those committees, includ-
ing a description of the program to be assisted, the assist-
ance to be provided, and the reasons for furnishing such
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assistance: Provided further, That nothing in this sub-
section shall be construed to alter any existing statutory
prohibitions against abortion or involuntary sterilizations
contained in this or any other Act.
(b) PUBLIC LAW 480.—During fiscal year 1998, re-
strictions contained in this or any other Act with respect
to assistance for a country shall not be construed to restrict
assistance under the Agricultural Trade Development and
Assistance Act of 1954: Provided, That none of the funds
appropriated to carry out title I of such Act and made
available pursuant to this subsection may be obligated or
expended except as provided through the regular notifica-
tion procedures of the Committees on Appropriations.
(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 inter-
national terrorism; or
(2) with respect to section 116 of the Foreign As-
sistance Act of 1961 or any comparable provision of
law prohibiting assistance to countries that violate
internationally recognized human rights.
EARMARKS
SEC. 544. (a) Funds appropriated by this Act which
are earmarked may be reprogrammed for other programs
within the same account notwithstanding the earmark if
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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 signifi-
cantly reduced its military or economic cooperation with
the United States since enactment of the Foreign Oper-
ations, Export Financing, and Related Programs Appro-
priations Act, 1991; however, before exercising the authority
of this subsection with regard to a base rights or base access
country which has significantly reduced its military or eco-
nomic cooperation with the United States, the President
shall consult with, and shall provide a written policy jus-
tification to the Committees on Appropriations: Provided,
That any such reprogramming shall be subject to the regu-
lar notification procedures of the Committees on Appropria-
tions: Provided further, That assistance that is repro-
grammed pursuant to this subsection shall be made avail-
able under the same terms and conditions as originally pro-
vided.
(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 particu-
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lar 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
available for an additional fiscal year shall be obligated
only for the purpose of such earmark.
CEILINGS AND EARMARKS
SEC. 545. Ceilings and earmarks contained in this Act
shall not be applicable to funds or authorities appropriated
or otherwise made available by any subsequent Act unless
such Act specifically so directs.
PROHIBITION ON PUBLICITY OR PROPAGANDA
SEC. 546. 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.
PROHIBITION OF PAYMENTS TO UNITED NATIONS MEMBERS
SEC. 547. 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 member
of the United Nations.
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CONSULTING SERVICES
SEC. 548. The expenditure of any appropriation under
this Act for any consulting service through procurement
contract, pursuant to section 3109 of title 5, United States
Code, shall be limited to those contracts where such expendi-
tures are a matter of public record and available for public
inspection, except where otherwise provided under existing
law, or under existing Executive order pursuant to existing
law.
PRIVATE VOLUNTARY ORGANIZATIONS—DOCUMENTATION
SEC. 549. None of the funds appropriated or made
available pursuant to this Act shall be available to a private
voluntary organization which fails to provide upon timely
request any document, file, or record necessary to the audit-
ing requirements of the Agency for International Develop-
ment.
PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS
THAT
EXPORT
LETHAL
MILITARY
EQUIPMENT
TO
COUNTRIES SUPPORTING INTERNATIONAL TERRORISM
SEC. 550. (a) None of the funds appropriated or other-
wise 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. The
prohibition under this section with respect to a foreign gov-
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ernment shall terminate 12 months after that government
ceases to provide such military equipment. This section ap-
plies with respect to lethal military equipment provided
under a contract entered into after the date of enactment
of this Act.
(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 exercised,
the President shall submit to the appropriate congressional
committees a report with respect to the furnishing of such
assistance. Any such report shall include a detailed expla-
nation of the assistance to be provided, including the esti-
mated dollar amount of such assistance, and an expla-
nation of how the assistance furthers United States national
interests.
WITHHOLDING OF ASSISTANCE FOR PARKING FINES OWED
BY FOREIGN COUNTRIES
SEC. 551. (a) IN GENERAL.—Of the funds made avail-
able for a foreign country under part I of the Foreign As-
sistance Act of 1961, an amount equivalent to 110 per cen-
tum 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 Secretary of State
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certifies and reports in writing to the appropriate congres-
sional 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 Ap-
propriations of the Senate and the Committee on Inter-
national Relations and the Committee on Appropriations
of the House of Representatives.
LIMITATION ON ASSISTANCE FOR THE PLO FOR THE WEST
BANK AND GAZA
SEC. 552. None of the funds appropriated by this Act
may be obligated for assistance for the Palestine Liberation
Organization for the West Bank and Gaza unless the Presi-
dent has exercised the authority under section 604(a) of the
Middle East Peace Facilitation Act of 1995 (title VI of Pub-
lic Law 104–107) or any other legislation to suspend or
make inapplicable section 307 of the Foreign Assistance Act
of 1961 and that suspension is still in effect: Provided, That
if the President fails to make the certification 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 Liberation Organization for the West Bank
and Gaza.
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EXPORT FINANCING TRANSFER AUTHORITIES
SEC. 553. Not to exceed 5 per centum of any appro-
priation other than for administrative expenses made avail-
able for fiscal year 1998 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 per centum by
any such transfer: Provided, That the exercise of such au-
thority shall be subject to the regular notification procedures
of the Committees on Appropriations.
WAR CRIMES TRIBUNALS DRAWDOWN
SEC. 554. 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 amend-
ed, of up to $25,000,000 of commodities and services for
the United Nations War Crimes Tribunal established with
regard to the former Yugoslavia by the United Nations Se-
curity Council or such other tribunals or commissions as
the Council may establish to deal with such violations,
without regard to the ceiling limitation contained in para-
graph (2) thereof: Provided, That the determination re-
quired under this section shall be in lieu of any determina-
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tions otherwise required under section 552(c): Provided fur-
ther, That sixty days after the date of enactment of this
Act, and every one hundred eighty days thereafter, the Sec-
retary of State shall submit a report to the Committees on
Appropriations describing the steps the United States Gov-
ernment is taking to collect information regarding allega-
tions 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. 555. 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 clearing 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.
RESTRICTIONS CONCERNING THE PALESTINIAN AUTHORITY
SEC. 556. None of the funds appropriated by this Act
may be obligated or expended to create in any part of Jeru-
salem a new office of any department or agency of the Unit-
ed States Government for the purpose of conducting official
United States Government business with the Palestinian
Authority over Gaza and Jericho or any successor Palestin-
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ian governing entity provided for in the Israel-PLO Dec-
laration of Principles: Provided, That this restriction shall
not apply to the acquisition of additional space for the ex-
isting Consulate General in Jerusalem: Provided further,
That meetings between officers and employees of the United
States and officials of the Palestinian Authority, or any
successor Palestinian governing entity provided for in the
Israel-PLO Declaration of Principles, 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 con-
tinue to meet in Jerusalem on other subjects with Palestin-
ians (including those who now occupy positions in the Pal-
estinian Authority), have social contacts, and have inciden-
tal discussions.
PROHIBITION OF PAYMENT OF CERTAIN EXPENSES
SEC. 557. None of the funds appropriated or otherwise
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-
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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, including
entrance fees at sporting events and amusement
parks.
PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS
SEC. 558. (a) To the greatest extent practicable, assist-
ance provided or used for purchases should use American
equipment, services, commodities, and products.
(b) NOTICE REQUIREMENT.—In providing financial
assistance to, or entering into any contract with, any entity
using funds made available in this Act, the head of each
Federal agency, to the greatest extent practicable, shall pro-
vide to such entity a notice describing the statement made
in subsection (a) by the Congress.
SPECIAL DEBT RELIEF FOR THE POOREST
SEC. 559. (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; or
(2) credits extended or guarantees issued under
the Arms Export Control Act.
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(b) LIMITATIONS.—
(1) The authority provided by subsection (a)
may be exercised only to implement multilateral offi-
cial debt relief and referendum agreements, commonly
referred to as ‘‘Paris Club Agreed Minutes’’.
(2) The authority provided by subsection (a)
may be exercised only in such amounts or to such ex-
tent 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;
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(4) (including its military or other security
forces) does not engage in a consistent pattern of gross
violations of internationally recognized human rights;
and
(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 provided
by subsection (a) may be used only with regard to funds
appropriated by this Act under the heading ‘‘Debt restruc-
turing’’.
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduc-
tion of debt pursuant to subsection (a) shall not be consid-
ered assistance for purposes of any provision of law limit-
ing assistance to a country. The authority provided by sub-
section (a) may be exercised notwithstanding section 620(r)
of the Foreign Assistance Act of 1961.
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES
SEC. 560. (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 Jan-
uary 1, 1995, pursuant to the Foreign Assistance Act
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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, reduce 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 per centum of the price paid for such
debt by such eligible country, or the difference be-
tween the price paid for such debt and the face
value of such debt, to support activities that link
conservation and sustainable use of natural re-
sources with local community development, and
child survival and other child development, 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-
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cordance with this section, establish the terms and
conditions under which loans may be sold, reduced, or
canceled pursuant to this section.
(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 di-
rect such agency to carry out the sale, reduction, or
cancellation of a loan pursuant to this section. Such
agency shall make an adjustment in its accounts to
reflect the sale, reduction, or cancellation.
(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 pur-
suant to subsection (a)(1)(A) only to a purchaser who pre-
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sents plans satisfactory to the President for using the 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 pursu-
ant 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 provided
by subsection (a) may be used only with regard to funds
appropriated by this Act under the heading ‘‘Debt restruc-
turing’’.
LIBERIA
SEC. 561. Funds appropriated by this Act may be
made available for assistance for Liberia notwithstanding
section 620(q) of the Foreign Assistance Act of 1961 and
section 512 of this Act.
GUATEMALA
SEC. 562. (a) Funds provided in this Act may be made
available for the Guatemalan military forces, and the re-
strictions on Guatemala under the headings ‘‘International
Military Education and Training’’ and ‘‘Foreign Military
Financing Program’’ shall not apply, only if the President
determines and certifies to the Congress that the Guate-
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malan military is cooperating fully with efforts to resolve
human rights abuses which elements of the Guatemalan
military forces are alleged to have committed, ordered or
attempted to thwart the investigation of, and with efforts
to implement a peace settlement.
(b) The prohibition contained in subsection (a) shall
not apply to funds made available to implement a ceasefire
or peace agreement.
(c) Any funds made available pursuant to subsections
(a) and (b) for international military education and train-
ing may only be for expanded international military edu-
cation and training.
SANCTIONS AGAINST COUNTRIES HARBORING WAR
CRIMINALS
SEC. 563. (a) BILATERAL ASSISTANCE.—The Presi-
dent shall withhold funds appropriated by this Act under
the Foreign Assistance Act of 1961 or the Arms Export Con-
trol Act for any country described in subsection (c).
(b) MULTILATERAL ASSISTANCE.—The Secretary of
the Treasury shall instruct the United States executive di-
rectors of the international financial institutions to work
in opposition to, and vote against, any extension by such
institutions of financing or financial or technical assistance
to any country described in subsection (c).
(c) SANCTIONED COUNTRIES.—A country described in
this subsection is a country the government of which know-
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ingly grants sanctuary to persons in its territory, or terri-
tory within its control, for the purpose of evading prosecu-
tion, where such persons have been indicted by the Inter-
national Criminal Tribunal for Rwanda.
LIMITATION ON ASSISTANCE FOR HAITI
SEC. 564. (a) LIMITATION.—None of the funds appro-
priated or otherwise made available by this Act may be pro-
vided to the Government of Haiti unless the President re-
ports to Congress that the Government of Haiti—
(1) is conducting thorough investigations of
extrajudicial and political killings;
(2) is cooperating with United States authorities
in the investigations of political and extrajudicial
killings;
(3) 
has 
made 
demonstrable 
progress 
in
privatizing major governmental parastatals, includ-
ing demonstrable progress toward the material and
legal transfer of ownership of such parastatals; and
(4) has taken action to remove from the Haitian
National Police, national palace and residential
guard, ministerial guard, and any other public secu-
rity entity of Haiti those individuals who are
credibly alleged to have engaged in or conspired to
conceal gross violations of internationally recognized
human rights.
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(b) EXCEPTIONS.—The limitation in subsection (a)
does not apply to the provision of humanitarian, electoral,
counter narcotics, or development assistance.
(c) WAIVER.—The President may waive the require-
ments of this section on a semiannual basis if the President
determines and certifies to the appropriate committees of
Congress that such waiver is in the national interest of the
United States.
(d) PARASTATALS DEFINED.—As used in this section,
the term ‘‘parastatal’’ means a government-owned enter-
prise.
REQUIREMENT FOR DISCLOSURE OF FOREIGN AID IN
REPORT OF SECRETARY OF STATE
SEC. 565. (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 Authorization
Act fiscal years 1990 and 1991 (22 U.S.C. 2414a), shall
include a side-by-side comparison of individual countries’
overall support for the United States at the United Nations
and the amount of United States assistance provided to
such country in fiscal year 1996.
(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 Foreign
Assistance Act of 1961 (22 U.S.C. 2291(e)(4)).
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BURMA LABOR REPORT
SEC. 566. Not later than one hundred twenty days
after enactment of this Act, the Secretary of Labor shall
provide to the Committees on Appropriations a report ad-
dressing labor practices in Burma: Provided, That the re-
port shall provide comprehensive details on child labor
practices, worker’s rights, force relocation of laborers, forced
labor performed to support the tourism industry, and forced
labor performed in conjunction with, and in support of, the
Yadonna gas pipeline: Provided further, That the report
should discuss whether the State Law and Order Restora-
tion Council (SLORC) is in compliance with international
labor standards: Provided further, That the report should
provide considerable detail regarding the U.S. government’s
efforts to address the issue of forced labor in Burma.
HAITI
SEC. 567. The Government of Haiti shall be eligible
to purchase defense articles and services under the Arms
Export Control Act (22 U.S.C. 2751 et seq.), for the civil-
ian-led Haitian National Police and Coast Guard: Pro-
vided, That the authority provided by this section shall be
subject to the regular notification procedures of the Commit-
tees on Appropriations.
INTERNATIONAL FINANCIAL INSTITUTION POLICIES
SEC. 568. The Secretary of the Treasury shall instruct
the United States Executive Directors of the International
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Bank for Reconstruction and Development and the Inter-
national Development Association to use the voice and vote
of the United States to strongly encourage their respective
institutions to—
(1) provide timely public information on pro-
curement opportunities available to United States
suppliers, with a special emphasis on small business;
and
(2) systematically consult with local commu-
nities on the potential impact of loans as part of the
normal lending process, and expand the participation
of affected peoples and nongovernmental organizations
in decisions on the selection, design and implementa-
tion of policies and projects.
LIMITATION ON ASSISTANCE TO SECURITY FORCES
SEC. 569. 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 evi-
dence to believe such unit has committed gross violations
of human rights, unless the Secretary determines and re-
ports to the Committees on Appropriations that the govern-
ment of such country is taking steps to bring the responsible
members of the security forces unit to justice.
CAMBODIA
SEC. 570. The Secretary of the Treasury shall instruct
the United States Executive Directors of the international
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financial institutions to use the voice and vote of the United
States to oppose loans to the Government of Cambodia, ex-
cept loans to support basic human needs, unless the Govern-
ment of Cambodia has: (1) not been established in office
by the use of force or a coup d’etat; (2) discontinued all
political violence and intimidation of journalists and mem-
bers of opposition parties; (3) established an independent
election commission; (4) protected the rights of voters, can-
didates, and election observers and participants by estab-
lishing laws and procedures guaranteeing freedom of speech
and assembly; (5) eliminated corruption and collaboration
with narcotics smugglers; and (6) been elected in a free and
fair election.
LIMITATIONS ON TRANSFER OF MILITARY EQUIPMENT TO
EAST TIMOR
SEC. 571. 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 au-
thority of this Act or any other Act, the agreement shall
state that such items will not be used in East Timor.
TRANSPARENCY OF BUDGETS
SEC. 572. Section 576(a)(1) of the Foreign Operations,
Export Financing, and Related Programs Appropriations
Act, 1997, as contained in Public Law 104–208, is amended
to read as follows:
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‘‘(1) does not have in place a functioning system
for reporting to civilian authorities audits of receipts
and expenditures that fund activities of the armed
forces and security forces;’’.
Section 576(a)(2) of the Foreign Operations, Export
Financing, and Related Programs Appropriations Act,
1997, as contained in Public Law 104–208, is amended to
read as follows:
‘‘(2) has not provided to the institution informa-
tion about the audit process requested by the institu-
tion.’’.
RESTRICTIONS ON FUNDING TO COUNTRIES PROVIDING
SANCTUARY TO INDICTED WAR CRIMINALS
SEC. 573. (a) BILATERAL ASSISTANCE.—None of the
funds made available by this or any prior Act making ap-
propriations for foreign operations, export promotion and
related programs, may be provided for any country de-
scribed in subsection (d).
(b) MULTILATERAL ASSISTANCE.—The Secretary of
the Treasury shall instruct the United States executive di-
rectors of the international financial institutions to work
in opposition to, and vote against, any extension by such
institutions of any financial or technical assistance or
grants of any kind to any country described in subsection
(d).
(c) EXCEPTIONS.—
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(1) IN GENERAL.—Subject to paragraph (2), sub-
sections (a) and (b) shall not apply to the provision
of—
(A) humanitarian assistance;
(B) democratization assistance; or
(C) assistance for physical infrastructure
projects involving activities in both a sanctioned
country and a nonsanctioned contiguous coun-
try, if the nonsanctioned country is the primary
beneficiary.
(2) FURTHER
LIMITATIONS.—Notwithstanding
paragraph (1)—
(A) no assistance may be made available by
this Act, or any other Act making appropria-
tions for foreign operations, export promotion
and related programs, for a program, project, or
activity in any country described in subsection
(d) in which an indicted war criminal has any
financial or material interest or through any or-
ganization in which the indicted individual is
affiliated; and
(B) no assistance (other than emergency
foods or medical assistance or demining assist-
ance) may be made available by this Act, or any
other Act making appropriations for foreign op-
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erations, export promotion and related programs
to any program, project, or activity in any area
of any country described in subsection (d) in
which local authorities are not complying with
the provisions of Article IX and Annex 4, Article
II of the Dayton Agreement relating to war
crimes and the Tribunal, or with the provisions
of Annex 7 of the Dayton Agreement relating to
the rights of refugees and displaced persons to re-
turn to their homes of origin.
(d) SANCTIONED COUNTRIES.—A country described in
this section is a country the authorities of which fail to
apprehend and transfer to the Tribunal all persons in terri-
tory that is under their effective control who have been in-
dicted by the Tribunal.
(e) WAIVER.—
(1) AUTHORITY.—The President may waive the
application of subsection (a) or subsection (b) with
respect to a country if the President determines and
certifies to the appropriate committees of Congress
within six months after the date of enactment of this
Act that a majority of the indicted persons who are
within territory that is under the effective control of
the country have been arrested and transferred to the
Tribunal.
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(2) PERIOD
OF
EFFECTIVENESS.—Any waiver
made pursuant to this subsection shall be effective for
a period of six months.
(f) TERMINATION OF SANCTIONS.—The sanctions im-
posed pursuant to subsection (a) or subsection (b) with re-
spect to a country shall cease to apply only if the President
determines and certifies to Congress that the authorities of
that country have apprehended and transferred to the Tri-
bunal all persons in territory that is under their effective
control who have been indicted by the Tribunal.
(g) DEFINITIONS.—As used in this section—
(1) COUNTRY.—The term ‘‘country’’ shall not in-
clude Bosnia and Herzegovina, and the provisions of
this Act shall be applied separately to its constituent
entities of Republika Srpska and the Federation of
Bosnia and Herzegovina.
(2) DAYTON
AGREEMENT.—The term ‘‘Dayton
Agreement’’ means the General Framework Agreement
for Peace in Bosnia and Herzegovina, together with
annexes relating thereto, done at Dayton, November
10 through 16, 1995.
(3) DEMOCRATIZATION ASSISTANCE.—The term
‘‘democratization assistance’’ includes electoral assist-
ance and assistance used in establishing the institu-
tions of a democratic and civil society.
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(4) HUMANITARIAN ASSISTANCE.—The term ‘‘hu-
manitarian assistance’’ includes assistance for food,
demining, refugees, housing, education, health care,
and other social services.
(5) TRIBUNAL.—The term ‘‘Tribunal’’ means the
International Criminal Tribunal for the Former
Yugoslavia.
EXTENSION OF CERTAIN ADJUDICATION PROVISIONS
SEC. 574. The Foreign Operations, Export Financing,
and Related Programs Appropriations Act, 1990 (Public
Law 101–167) is amended—
(1) in section 599D (8 U.S.C. 1157 note)—
(A) in subsection (b)(3), by striking ‘‘and
1997’’ and inserting ‘‘1997, and 1998’’; and
(B) in subsection (e), by striking ‘‘October
1, 1997’’ each place it appears and inserting
‘‘October 1, 1998’’; and
(2) in section 599E (8 U.S.C. 1255 note) in sub-
section (b)(2), by striking ‘‘September 30, 1997’’ and
inserting ‘‘September 30, 1998’’.
DEVELOPMENT CREDIT AUTHORITY
SEC. 575. For the cost, as defined in section 502 of
the Congressional Budget Act of 1974, of direct loans and
loan guarantees in support of the development objectives of
the Foreign Assistance Act of 1961 (FAA), up to
$10,000,000, which amount may be derived by transfer
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from funds appropriated by this Act to carry out part I
of the Foreign Assistance Act of 1961 and funds appro-
priated by this Act under the heading ‘‘Assistance for East-
ern Europe and the Baltic States’’, to remain available
until expended: Provided, That of this amount, up to
$1,500,000 for administrative expenses to carry out such
programs may be transferred to and merged with ‘‘Operat-
ing Expenses of the Agency for International Development’’:
Provided further, That the provisions of section 107A(d)
(relating to general provisions applicable to development
credit authority) of the Foreign Assistance Act of 1961, as
added by section 306 of H.R. 1486 as reported by the House
Committee on International Relations on May 9, 1997,
shall be applicable to direct loans and loan guarantees pro-
vided under this paragraph: Provided further, That direct
loans or loan guarantees under this paragraph may not be
provided until the Director of the Office of Management and
Budget has certified to the Committees on Appropriations
that the Agency for International Development has estab-
lished a credit management system capable of effectively
managing the credit programs funded under this heading,
including that such system (1) can provide accurate and
timely provision of loan and loan guarantee data, (2) con-
tains information control systems for loan and loan guar-
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antee data, (3) is adequately staffed, and (4) contains ap-
propriate review and monitoring procedures.
EXCESS DEFENSE ARTICLES FOR CERTAIN EUROPEAN
COUNTRIES
SEC. 576. Section 105 of Public Law 104–164 (110
Stat. 1427) is amended by striking ‘‘1996 and 1997’’ and
inserting ‘‘1998 and 1999’’.
ADDITIONAL REQUIREMENTS RELATING TO STOCKPILING
OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES
SEC. 577. (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 $60,000,000
for fiscal year 1998’’.
(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 subpara-
graph (A) for fiscal year 1998, not more than $40,000,000
may be made available for stockpiles in the Republic of
Korea and not more than $20,000,000 may be made avail-
able for stockpiles in Thailand.’’.
DELIVERY OF DRAWDOWN BY COMMERCIAL
TRANSPORTATION SERVICES
SEC. 578. Section 506 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2318) is amended—
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(1) in subsection (b)(2), by striking the period
and inserting the following: ‘‘, including providing
the Congress with a report detailing all defense arti-
cles, defense services, and military education and
training delivered to the recipient country or inter-
national organization upon delivery of such articles
or upon completion of such services or education and
training. Such report shall also include whether any
savings were realized by utilizing commercial trans-
port services rather than acquiring those services from
United States Government transport assets.’’;
(2) by redesignating subsection (c) as subsection
(d); and
(3) by inserting after subsection (b) the follow-
ing:
‘‘(c) For the purposes of any provision of law that au-
thorizes the drawdown of defense or other articles or com-
modities, or defense or other services from an agency of the
United States Government, such drawdown may include the
supply of commercial transportation and related services
that are acquired by contract for the purposes of the
drawdown in question if the cost to acquire such commer-
cial transportation and related services is less than the cost
to the United States Government of providing such services
from existing agency assets.’’.
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SENSE OF THE SENATE REGARDING ESTONIA, LATVIA, AND
LITHUANIA.
SEC. 579. It is the sense of the Senate that Estonia,
Latvia, and Lithuania—
(1) are to be commended for their progress to-
ward political and economic reform and meeting the
guidelines for prospective NATO members;
(2) would make an outstanding contribution to
furthering the goals of NATO and enhancing stabil-
ity, freedom, and peace in Europe should they become
NATO members; and
(3) upon complete satisfaction of all relevant cri-
teria should be invited to become full NATO members
at the earliest possible date.
TO PROHIBIT FOREIGN ASSISTANCE TO THE GOVERNMENT
OF RUSSIA SHOULD IT ENACT LAWS WHICH WOULD
DISCRIMINATE AGAINST MINORITY RELIGIOUS FAITHS
IN THE RUSSIAN FEDERATION
SEC. 580. (a) None of the funds appropriated under
this Act may be made available for the Government of Rus-
sian Federation unless the President determines and cer-
tifies in writing to the Committee on Appropriations and
the Committee on Foreign Relations of the Senate that the
Government of the Russian Federation has enacted no stat-
ute or promulgated no executive order that would discrimi-
nate, or would have as its principal effect discrimination,
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against religious minorities in the Russian Federation in
violation of accepted international agreements on human
rights and religious freedoms to which the Russian Federa-
tion is a signatory, including the European Convention and
the 1989 Vienna Concluding Document of the Conference
on Security and Cooperation in Europe.
(b) This section shall become effective one day after the
enactment of this Act.
SENSE OF THE SENATE REGARDING SUPPORT FOR
COUNTRIES OF THE SOUTH CAUCASUS AND CENTRAL ASIA
SEC. 581. (a) FINDINGS.—Congress makes the follow-
ing findings:
(1) The ancient Silk Road, once the economic
lifeline of Central Asia and the South Caucasus, tra-
versed much of the territory now within the countries
of 
Armenia, 
Azerbaijan, 
Georgia, 
Kazakstan,
Kyrgyzstan, 
Tajikistan, 
Turkmenistan, 
and
Uzbekistan.
(2) Economic interdependence spurred mutual
cooperation among the peoples along the Silk Road
and restoration of the historic relationships and eco-
nomic ties between those peoples is an important ele-
ment of ensuring their sovereignty as well as the suc-
cess of democratic and market reforms.
(3) The development of strong political and eco-
nomic ties between countries of the South Caucasus
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and Central Asia and the West will foster stability in
the region.
(4) The development of open market economies
and open democratic systems in the countries of the
South Caucasus and Central Asis will provide posi-
tive incentives for international private investment,
increased trade, and other forms of commercial inter-
actions with the rest of the world.
(5) The Caspian Sea Basin, overlapping the ter-
ritory of the countries of the South Caucasus and
Central Asia, contains proven oil and gas reserves
that may exceed $4,000,000,000,000 in value.
(6) The region of the South Caucasus and
Central Asia will produce oil and gas in sufficient
quantities to reduce the dependence of the United
States on energy from the volatile Persian Gulf re-
gion.
(7) United States foreign policy and inter-
national assistance should be narrowly targeted to
support the economic and political independence of
the countries of the South Caucasus and Central Asia.
(b) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that the policy of the United States in the countries
of the South Caucasus and Central Asia should be—
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(1) to promote sovereignty and independence
with democratic government;
(2) to assist actively in the resolution of regional
conflicts;
(3) to promote friendly relations and economic
cooperation; and
(4) to help promote market-oriented principles
and practices;
(5) to assist in the development of infrastructure
necessary for communications, transportation, and
energy and trade on an East-West axis in order to
build strong international relations and commerce be-
tween those countries and the stable, democratic, and
market-oriented countries of the Euro-Atlantic Com-
munity; and
(6) to support United States business interests
and investments in the region.
(c) DEFINITION.—In this section, the term ‘‘countries
of the South Caucasus and Central Asia’’ means Armenia,
Azerbaijan, Georgia, Kazakstan, Kyrgystan, Tajikistan,
Turkmenistan, and Uzbekistan.
PROMOTION OF RELIGIOUS FREEDOM AND HUMAN RIGHTS
SEC. 582. (a) REPORTS.—Not later than March 30,
1998, and each subsequent year thereafter, the Secretary of
State shall submit to the International Relations Committee
of the House of Representatives and the Foreign Relations
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Committee of the Senate an annual report on religious per-
secution on a country-by-country basis. Reports shall in-
clude a list of individuals who have been materially in-
volved in the commission of acts of persecution that are mo-
tivated by a person’s religion.
(b) PRISONER INFORMATION REGISTRY.—The Sec-
retary of State shall establish a Prisoner Information Reg-
istry which shall provide information on all political pris-
oners, prisoners of conscience, and prisoners of faith on a
country-by-country basis. Such information shall include
the charges, judicial processes, administrative actions, use
of forced labor, incidences of torture, length of imprison-
ment, physical and health conditions, and other matters re-
lated to the incarceration of such prisoners. The Secretary
of State is authorized to make funds available to nongovern-
mental organizations presently engaged in monitoring ac-
tivities regarding such prisoners to assist in the creation
and maintenance of the registry.
(c) SENSE OF CONGRESS CONCERNING ESTABLISH-
MENT OF A COMMISSION ON SECURITY AND COOPERATION
IN ASIA.—It is the sense of the Congress that Congress, the
President, and the Secretary of State should work with the
governments of the People’s Republic of China and other
countries to establish a Commission on Security and Co-
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operation in Asia which would be modeled after the Com-
mission on Security and Cooperation in Europe.
UNITED STATES INTELLIGENCE ACTIVITIES RELATED TO
MONITORING HUMAN RIGHTS ABUSES AND RELIGIOUS
PERSECUTION
SEC. 583. (a) IN GENERAL.—The President shall de-
vote additional personnel and resources to gathering intel-
ligence information regarding human rights abuses and
acts of religious persecution.
(b) REPORT.—Not later than March 30, 1998, the
President shall submit to the Permanent Select Committee
on Intelligence of the House of Representatives and the Se-
lect Committee on Intelligence of the Senate a report on
the number of personnel and resources that are being de-
voted to gathering intelligence information regarding
human rights abuses and acts of religious persecution.
WILDLIFE CONSERVATION
SEC. 584. Of the funds appropriated by this Act, not
more than $2,900,000 may be made available for the Com-
munal Areas Management Programme for Indigenous Re-
sources (CAMPFIRE) in Zimbabwe: Provided, That none
of the funds appropriated by this Act may be used to di-
rectly finance the trophy hunting of elephants or other en-
dangered species as defined in the Convention on Inter-
national Trade in Endangered Species of Flora and Fauna
(CITES) or the Endangered Species Act: Provided further,
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That the funds appropriated by this Act that are provided
under the CAMPFIRE program may not be used for activi-
ties with the express intent to lobby or otherwise influence
international conventions or treaties, or United States Gov-
ernment decision makers: Provided further, That funds ap-
propriated by this Act that are made available for the
CAMPFIRE program may be used only in Zimbabwe for
the purpose of maximizing benefits to rural people while
strengthening natural resources management institutions:
Provided further, That not later than March 1, 1998, the
Administrator of the Agency for International Development
shall submit a report to the appropriate congressional com-
mittees describing the steps taken to implement the CAMP-
FIRE program, the impact of the program on the people
and wildlife of CAMPFIRE districts, alternatives to trophy
hunting as a means of generating income for CAMPFIRE
districts, and a description of how funds made available
for CAMPFIRE in fiscal year 1998 are to be used.
DEMOCRACY-BUILDING ACTIVITY IN PAKISTAN
SEC. 585. (a) OPIC.—Section 239(f) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2199(f)) is amended by
inserting ‘‘, or Pakistan’’ after ‘‘China’’.
(b) TRAINING ACTIVITY.—Section 638(b) of the For-
eign Assistance Act of 1961 (22 U.S.C. 2398(b)) is amend-
ed—
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(1) by inserting ‘‘or any activity to promote the
development of democratic institutions’’ after ‘‘activ-
ity’’; and
(2) by inserting ‘‘, Pakistan,’’ after ‘‘Brazil’’.
(c) TRADE AND DEVELOPMENT.—It is the sense of
Congress that the Director of the Trade and Development
Agency should use funds made available to carry out the
provisions of section 661 of the Foreign Assistance Act of
1961 (22 U.S.C. 2421) to promote United States exports
to Pakistan.
SENSE OF THE SENATE ON THE EUROPEAN COMMISSION’S
HANDLING OF THE BOEING AND MCDONNELL DOUGLAS
MERGER
SEC. 586. (a) FINDINGS.—(1) The Boeing Company
and McDonnell Douglas have announced their merger; and
(2) the Department of Defense has approved that merg-
er as consistent with the national security of the United
States; and
(3) the Federal Trade Commission has found that
merger not to violate the anti-trust laws of the United
States; and
(4) the European Commission has consistently criti-
cized and threatened the merger before, during and after
its consideration of the facts; and
(5) the sole true reason for the European Commission’s
criticism and imminent disapproval of the merger is to
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gain an unfair competitive advantage for Airbus, a govern-
ment owned aircraft manufacturer.
(b) SENSE OF SENATE.—Now therefore, it is the sense
of the Senate that—
(1) any such disapproval on the part of the Eu-
ropean Commission would constitute an unwarranted
and unprecedented interference in a United States
business transaction that would threaten thousands of
American aerospace jobs; and
(2) the Senate suggests that the President take
such actions as he deems appropriate to protect Unit-
ed States interests in connection therewith.
RESTRICTION ON ASSISTANCE MADE TO THE PALESTINIAN
AUTHORITY
SEC. 587. None of the funds appropriated or otherwise
made available by this Act may be obligated or expended
with respect to providing funds to the Palestinian Author-
ity, unless the President certifies to Congress that—
(1) the Palestinian Authority is using its maxi-
mum efforts to combat terrorism, and, in accordance
with the Oslo Accords, has ceased the use of violence,
threat of violence, or incitement to violence as a tool
of the Palestinian Authority’s policy toward Israel;
(2) after a full investigation by the Department
of Justice, the Executive branch of Government con-
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cludes that Chairman Arafat had no prior knowledge
of the World Trade Center bombing; and
(3) after a full inquiry by the Department of
State, the Executive branch of Government concludes
that Chairman Arafat did not authorize and did not
fail to use his authority to prevent the Tel Aviv cafe
bombing of March 21, 1997.
USE OF FUNDS FOR THE UNITED STATES-ASIA
ENVIRONMENTAL PARTNERSHIP
SEC. 588. Notwithstanding any other provision of law
that restricts assistance to foreign countries, funds appro-
priated by this or any other Act making appropriations
pursuant to part I of the Foreign Assistance Act of 1961
that are made available for the United States-Asia Envi-
ronmental Partnership may be made available for activities
for the People’s Republic of China.
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. 589. The President shall provide to the Congress
a detailed account of all Federal agency obligations and ex-
penditures for climate change programs and activities, do-
mestic and international, for fiscal year 1997, planned obli-
gations for such activities in fiscal year 1998, and any plan
for programs thereafter in the context of negotiations to
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amend the Framework Convention on Climate Change
(FCCC) to be provided to the appropriate congressional
committees no later than October 15, 1997.
AUTHORITY TO ISSUE INSURANCE AND EXTEND FINANCING
SEC. 590. (a) IN GENERAL.—Section 235(a) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2195(a)) is
amended—
(1) by striking paragraphs (1) and (2)(A) and
inserting the following:
‘‘(1) INSURANCE AND FINANCING.—(A) The max-
imum contingent liability outstanding at any one
time pursuant to insurance issued under section
234(a), and the amount of financing issued under sec-
tions 234 (b) and (c), shall not exceed in the aggre-
gate $29,000,000,000.’’;
(2) by redesignating paragraph (3) as para-
graph (2); and
(3) by amending paragraph (2) (as so redesig-
nated) by striking ‘‘1997’’ and inserting ‘‘1999’’.
(b) CONFORMING AMENDMENT.—Paragraph (2) of sec-
tion 235(a) of that Act (22 U.S.C. 2195(a)), as redesignated
by subsection (a), is further amended by striking ‘‘(a) and
(b)’’ and inserting ‘‘(a), (b), and (c)’’.
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WITHHOLDING ASSISTANCE TO COUNTRIES VIOLATING
UNITED NATIONS SANCTIONS AGAINST LIBYA
SEC. 591. (a) WITHHOLDING OF ASSISTANCE.—Except
as provided in subsection (b), whenever the President deter-
mines and certifies to Congress that the government of any
country is violating any sanction against Libya imposed
pursuant to United Nations Security Council Resolution
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 appropriations in this Act
shall be withheld from obligation and expenditure 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.
WAR CRIMES PROSECUTION
SEC. 592. Section 2401 of title 18, United States Code
(Public Law 104–192; the War Crimes Act of 1996) is
amended as follows—
(1) in subsection (a), by striking ‘‘commits a
grave breach of the Geneva Conventions’’ and insert-
ing in lieu thereof ‘‘commits a war crime’’;
(2) in subsection (b)—
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(A) by striking ‘‘the person committing such
breach or the victim of such breach’’ and insert-
ing in lieu thereof ‘‘the person committing such
crime or the victim of such crime’’; and
(B) by inserting before the period at the end
of the subsection ‘‘or that the person committing
such crime is later found in the United States
after such crime is committed’’;
(3) in subsection (c)—
(A) by striking ‘‘the term ‘grave breach of
the Geneva Conventions’ means conduct defined
as’’ and inserting in lieu thereof ‘‘the term ‘war
crime’ means conduct (1) defined as’’; and
(B) by inserting the following before the pe-
riod at the end—
‘‘; (2) prohibited by Articles 23, 25, 27, or 28 of
the Annex to the Hague Convention IV, Respecting
the Laws and Customs of War on Land, signed on
October, 1907; (3) which constitutes a violation of
common Article 3 of the international conventions
signed at Geneva on August 1949; or (4) of a person
who, in relation to an armed conflict and contrary to
the provisions of the Protocol on Prohibitions or Re-
strictions on the Use of Mines, Booby-traps and Other
Devices as amended at Geneva on 3 May 1996 (Proto-
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col II as amended on 3 May 1996), when the United
States is a party to such Protocol, willfully kills or
causes serious injury to civilians’’;
(4) by adding a new subsection (d) to read as
follows:
‘‘(d) NOTIFICATION.—No prosecution of any
crime prohibited in this section shall be undertaken
by the United States except upon the written notifica-
tion to the Congress by the Attorney General or his
designee that in his judgment a prosecution by the
United States is in the national interest and nec-
essary to secure substantial justice.’’.
REFORM AND REVIEW OF UNITED STATES SPONSORED
TRAINING PROGRAMS
SEC. 593. (a) FINDINGS.—Congress makes the follow-
ing findings:
(1) United States training of members of Latin
American military and security forces that occurred
primarily at the Army School of the Americas be-
tween 1982 and 1991 has been severely criticized for
promoting practices that have contributed to the vio-
lation of human rights and have otherwise been in-
consistent with the appropriate role of the Armed
Forces in a democratic society.
(2) Numerous members of Latin American mili-
tary and security forces who have participated in
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United States sponsored training programs, have sub-
sequently been identified as having masterminded,
participated in, or sought to cover up some of the
most heinous human rights abuses in the region.
(3) United States interests in Latin America
would be better served if Latin American military
personnel were exposed to training programs designed
to promote—
(A) proper management of scarce national
defense resources,
(B) improvements in national systems of
justice in accordance with internationally recog-
nized principles of human rights, and
(C) greater respect and understanding of the
principle of civilian control of the military.
(4) In 1989, Congress mandated that the Depart-
ment of Defense institute new training programs
(commonly referred to as expanded IMET) with funds
made available for international military and edu-
cation programs in order to promote the interests de-
scribed in paragraph (3). Congress also expanded the
definition of eligibility for such training to include
non-defense government personnel from countries in
Latin America.
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(5) Despite congressionally mandated emphasis
on expanded IMET training programs, only 4 of the
more than 50 courses offered annually at the United
States Army School of the Americas qualify as ex-
panded IMET.
(b) LIMITATION ON USE OF FUNDS.—Notwithstanding
any other provision of law, none of the funds appropriated
in this Act under the heading relating to international mili-
tary education and training may be made available for
training members of any Latin American military or secu-
rity force until—
(1) the Secretary of Defense has advised the Sec-
retary of State in writing that 30 percent of IMET
funds appropriated for fiscal year 1998 for the cost
of Latin American participants in IMET programs
will be disbursed only for the purpose of supporting
enrollment of such participants in expanded IMET
courses; and
(2) the Secretary of State has identified suffi-
cient numbers of qualified, non-military personnel
from countries in Latin America to participate in
IMET programs during fiscal year 1998 in consulta-
tion with the Secretary of Defense, and has instructed
United States embassies in the hemisphere to approve
their participation in such programs so that not less
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than 25 percent of the individuals from Latin Amer-
ican countries attending United States supported
IMET programs are civilians.
(c) REPORT.—Not later than 1 year after the date of
enactment of this Act, the Secretary of State shall report
in writing to the appropriate committees of Congress on
the progress made to improve military training of Latin
American participants in the areas of human rights and
civilian control of the military. The Secretary shall include
in the report plans for implementing additional expanded
IMET programs for Latin America during the next 3 fiscal
years.
LIBERATION TIGERS OF TAMIL EELAM
SEC. 594. SENSE OF SENATE.—It is the sense of the
Senate that the Department of State should list the Libera-
tion Tigers of Tamil Eelam as a terrorist organization.
LIMITATION ON INTERNATIONAL MILITARY EDUCATION AND
TRAINING ASSISTANCE FOR PERU
SEC. 595. None of the funds appropriated or otherwise
made available by this Act may be provided to the Govern-
ment of Peru for international military education and
training under chapter 5 of part II of the Foreign Assist-
ance Act of 1961, unless the President certifies to Congress
that the Government of Peru is taking all necessary steps
to ensure that United States citizens held in prisons in Peru
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are accorded timely, open, and fair legal proceedings in ci-
vilian courts.
LIMIT AID TO THE GOVERNMENT OF CONGO UNTIL
PRESIDENTIAL CERTIFICATION
SEC. 596. None of the funds appropriated or otherwise
made available by this Act may be provided to the Govern-
ment of Congo until such time as the President reports in
writing to the Congress that the Government of Congo is
cooperating fully with investigators from the United Na-
tions or any other international relief organizations in ac-
counting for human rights violations or atrocities commit-
ted in Congo or adjacent countries.
Titles I through V of this Act may be cited as the ‘‘For-
eign Operations, Export Financing, and Related Programs
Appropriations Act, 1998’’.
Passed the House of Representatives September 4,
1997.
Attest:
ROBIN H. CARLE,
Clerk.
Passed the Senate September 5, 1997.
Attest:
GARY SISCO,
Secretary.