‘‘(i) 
REGULATIONS.—Any 
importer
that claims preferential tariff treatment
under paragraph (2) or (3) shall comply
with customs procedures similar in all ma-
terial respects to the requirements of Article
502(1) of the NAFTA as implemented pur-
suant to United States law, in accordance
with regulations promulgated by the Sec-
retary of the Treasury.
‘‘(ii) DETERMINATION.—In order to
qualify for such preferential tariff treatment
and for a Certificate of Origin to be valid
with respect to any article for which such
treatment is claimed, there shall be in effect
a determination by the President that—
‘‘(I) the partnership country from
which the article is exported, and
‘‘(II) each partnership country in
which materials used in the production
of the article originate or undergo pro-
duction that contributes to a claim
that the article qualifies for such pref-
erential tariff treatment,
has implemented and follows, or is making
substantial progress toward implementing
and following, procedures and requirements
similar in all material respects to the rel-
evant procedures and requirements under
chapter 5 of the NAFTA.
‘‘(B) CERTIFICATE OF ORIGIN.—The Certifi-
cate of Origin that otherwise would be required
pursuant to the provisions of subparagraph (A)
shall not be required in the case of an article im-
ported under paragraph (2) or (3) if such Cer-
tificate of Origin would not be required under
Article 503 of the NAFTA (as implemented pur-
suant to United States law), if the article were
imported from Mexico.
‘‘(C) PENALTIES FOR TRANSSHIPMENTS.—If
the President determines, based on sufficient evi-
dence, that an exporter has engaged in willful il-
legal transshipment or willful customs fraud
with respect to textile or apparel articles for
which preferential tariff treatment under sub-
paragraph (A) or (B) of paragraph (2) is
claimed, then the President shall deny all bene-
fits under this title to such exporter, and any
successors of such exporter, for a period of 2
years.
‘‘(D) REPORT BY USTR ON COOPERATION OF
OTHER
COUNTRIES
CONCERNING
CIRCUMVEN-
TION.—The United States Commissioner of Cus-
toms shall conduct a study analyzing the extent
to which each partnership country—
‘‘(i) has cooperated fully with the
United States, consistent with its domestic
laws and procedures, in instances of cir-
cumvention or alleged circumvention of ex-
isting quotas on imports of textile and ap-
parel goods, to establish necessary relevant
facts in the places of import, export, and,
where applicable, transshipment, including
investigation of circumvention practices, ex-
changes of documents, correspondence, re-
ports, and other relevant information, to the
extent such information is available;
‘‘(ii) has taken appropriate measures,
consistent with its domestic laws and proce-
dures, against exporters and importers in-
volved in instances of false declaration con-
cerning fiber content, quantities, descrip-
tion, classification, or origin of textile and
apparel goods; and
‘‘(iii) has penalized the individuals
and entities involved in any such cir-
cumvention, consistent with its domestic
laws and procedures, and has worked closely
to seek the cooperation of any third country
to prevent such circumvention from taking
place in that third country.
The Trade Representative shall submit to the
Congress, not later than October 1, 1999, a re-
port on the study conducted under this subpara-
graph.
‘‘(5) 
DEFINITIONS.—For 
purposes 
of 
this
subsection—
‘‘(A) The term ‘the Annex’ means Annex
300–B of the NAFTA.
‘‘(B) The term ‘NAFTA’ means the North
American Free Trade Agreement entered into be-
tween the United States, Mexico, and Canada on
December 17, 1992.
‘‘(C) The term ‘partnership country’ means
a beneficiary country.
‘‘(D) The term ‘textile or apparel article’
means any article referred to in paragraph
(1)(A) that is a good listed in Appendix 1.1 of
the Annex.
‘‘(E) The term ‘transition period’ means,
with respect to a partnership country, the period
that begins on July 1, 2000, and ends on the
earlier of—
‘‘(i) August 1, 2002; or
‘‘(ii) the date on which—
‘‘(I) the United States first ap-
plies the NAFTA to the partnership
country upon its accession to the
NAFTA, or
‘‘(II) there enters into force with
respect to the United States and the
partnership country a free trade agree-
ment comparable to the NAFTA that
makes substantial progress in achiev-
ing the negotiating objectives set forth
in section 108(b)(5) of the North Amer-
ican Free Trade Agreement Implemen-
tation Act (19 U.S.C. 3317(b)(5)).
‘‘(F) An article shall be deemed as origi-
nating in the territory of a partnership country
if the article meets the rules of origin for a good
set forth in chapter 4 of the NAFTA, and, in the
case of an article described in Appendix 6.A of
the Annex, the requirements stated in such Ap-
pendix 6.A for such article to be treated as if it
were an originating good. In applying such
chapter 4 or Appendix 6.A with respect to a
partnership 
country 
for 
purposes 
of 
this
subsection—
‘‘(i) no countries other than the United
States and partnership countries may be
treated as being Parties to the NAFTA,
‘‘(ii) references to trade between the
United States and Mexico shall be deemed
to refer to trade between the United States
and partnership countries, and
‘‘(iii) references to a Party shall be
deemed to refer to the United States or a
partnership country, and references to the
Parties shall be deemed to refer to any com-
bination of partnership countries and the
United States.’’.
(b) DETERMINATION REGARDING RETENTION OF DES-
IGNATION.—Section 212(e)(1) of the Caribbean Basin Eco-
nomic Recovery Act (19 U.S.C. 2702(e)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’;
(2) by redesignating subparagraphs (A) and (B)
as clauses (i) and (ii), respectively;
(3) by adding at the end the following:
‘‘(B)(i) Based on the President’s review and
analysis described in subsection (f), the President
may determine if the preferential treatment under
section 213(b)(2) and (3) should be withdrawn, sus-
pended, or limited with respect to any article of a
partnership country. Such determination shall be in-
cluded in the report required by subsection (f).
‘‘(ii) Withdrawal, suspension, or limitation of
the preferential treatment under section 213(b)(2) and
(3) with respect to a partnership country shall be
taken only after the requirements of subsection (a)(2)
and paragraph (2) of this subsection have been met.’’.
(c) REPORTING REQUIREMENTS.—Section 212(f) of
the Caribbean Basin Economic Recovery Act (19 U.S.C.
2702(f)) is amended to read as follows:
‘‘(f) REPORTING REQUIREMENTS.—Not later than 1
year after the date of the enactment of the United States-
Caribbean Trade Partnership Act and at the close of each
3-year period thereafter, the President shall submit to the
Congress a complete report regarding the operation of this
title, including—
‘‘(1) with respect to subsections (b) and (c) of
this section, the results of a general review of bene-
ficiary countries based on the considerations described
in such subsections;
‘‘(2) with respect to subsection (c)(4), the degree
to which a country follows accepted rules of inter-
national trade provided for under the WTO Agree-
ment and the multilateral trade agreements (as such
terms are defined in paragraphs (9) and (4), respec-
tively, of section 2 of the Uruguay Round Agreements
Act);
‘‘(3) with respect to subsection (c)(9), the extent
to which beneficiary countries are providing or taking
steps to provide protection of intellectual property
rights comparable to the protection provided to the
United States in bilateral intellectual property rights
agreements;
‘‘(4) with respect to subsection (b)(2) and sub-
section (c)(5), the extent that beneficiary countries are
providing or taking steps to provide protection of in-
vestment and investors comparable to the protection
provided to the United States in bilateral investment
treaties;
‘‘(5) with respect to subsection (c)(3), the extent
that beneficiary countries are providing the United
States and other WTO members (as such term is de-
fined in section 2(10) of the Uruguay Round Agree-
ments Act (19 U.S.C. 3501(10)) with equitable and
reasonable market access in the product sectors for
which benefits are provided under this title;
‘‘(6) with respect to subsection (c)(11), the extent
that beneficiary countries are cooperating with the
United States in administering the provisions of sec-
tion 213(b); and
‘‘(7) with respect to subsection (c)(8), the extent
that beneficiary countries are meeting the inter-
nationally recognized worker rights criteria under
such subsection.
In the first report under this subsection, the President shall
include a review of the implementation of section 213(b),
and his analysis of whether the benefits under paragraphs
(2) and (3) of such section further the objectives of this
title.’’.
(d) CONFORMING AMENDMENT.—Section 213(a)(1) of
the Caribbean Basin Economic Recovery Act is amended
by inserting ‘‘and except as provided in section 213(b)(2)
and (3),’’ after ‘‘Tax Reform Act of 1986,’’.
SEC. 105. EFFECT OF NAFTA ON SUGAR IMPORTS FROM
BENEFICIARY COUNTRIES.
The President shall monitor the effects, if any, that the
implementation of the NAFTA has on the access of bene-
ficiary countries under the Caribbean Basin Economic Re-
covery Act to the United States market for sugars, syrups,
and molasses. If the President considers that the implemen-
tation of the NAFTA is affecting, or will likely affect, in
an adverse manner the access of such countries to the
United States market, the President shall promptly—
(1) take such actions, after consulting with inter-
ested parties and with the appropriate committees of
the House of Representatives and the Senate, or
(2) propose to the Congress such legislative ac-
tions,
as may be necessary or appropriate to ameliorate such ad-
verse effect.
SEC. 106. DUTY-FREE TREATMENT FOR CERTAIN BEV-
ERAGES MADE WITH CARIBBEAN RUM.
Section 213(a) of the Caribbean Basin Economic Re-
covery Act (19 U.S.C. 2703(a)) is amended—
(1) in paragraph (5), by striking ‘‘chapter’’ and
inserting ‘‘title’’; and
(2) by adding at the end the following new para-
graph:
‘‘(6) Notwithstanding paragraph (1), the duty-free
treatment provided under this title shall apply to liqueurs
and spirituous beverages produced in the territory of Can-
ada from rum if—
‘‘(A) such rum is the growth, product, or manu-
facture of a beneficiary country or of the Virgin Is-
lands of the United States;
‘‘(B) such rum is imported directly from a bene-
ficiary country or the Virgin Islands of the United
States into the territory of Canada, and such liqueurs
and spirituous beverages are imported directly from
the territory of Canada into the customs territory of
the United States;
‘‘(C) when imported into the customs territory of
the United States, such liqueurs and spirituous bev-
erages are classified in subheading 2208.90 or
2208.40 of the HTS; and
‘‘(D) such rum accounts for at least 90 percent
by volume of the alcoholic content of such liqueurs
and spiritous beverages.’’.
SEC. 107. MEETINGS OF TRADE MINISTERS AND USTR.
(a) SCHEDULE OF MEETINGS.—The President shall
take the necessary steps to convene a meeting with the trade
ministers of the partnership countries in order to establish
a schedule of regular meetings, to commence as soon as is
practicable, of the trade ministers and the Trade Represent-
ative, for the purpose set forth in subsection (b).
(b) PURPOSE.—The purpose of the meetings scheduled
under subsection (a) is to reach agreement between the
United States and partnership countries on the likely tim-
ing and procedures for initiating negotiations for partner-
ship countries to accede to the NAFTA, or to enter into mu-
tually advantageous free trade agreements with the United
States that contain provisions comparable to those in the
NAFTA and would make substantial progress in achieving
the negotiating objectives set forth in section 108(b)(5) of
the North American Free Trade Agreement Implementation
Act (19 U.S.C. 3317(b)(5)).
SEC. 108. REPORT ON ECONOMIC DEVELOPMENT AND MAR-
KET ORIENTED REFORMS IN THE CARIBBEAN.
(a) IN GENERAL.—The Trade Representative shall
make an assessment of the economic development efforts and
market oriented reforms in each partnership country and
the ability of each such country, on the basis of such efforts
and reforms, to undertake the obligations of the NAFTA.
The Trade Representative shall, not later than 2 years after
the date of the enactment of this Act, submit to the President
and to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representa-
tives a report on that assessment.
(b) ACCESSION TO NAFTA.—
(1) ABILITY
OF
COUNTRIES
TO
IMPLEMENT
NAFTA.—The Trade Representative shall include in
the report under subsection (a) a discussion of pos-
sible timetables and procedures pursuant to which
partnership countries can complete the economic re-
forms necessary to enable them to negotiate accession
to the NAFTA. The Trade Representative shall also
include an assessment of the potential phase-in peri-
ods that may be necessary for those partnership coun-
tries with less developed economies to implement the
obligations of the NAFTA.
(2) FACTORS IN ASSESSING ABILITY TO IMPLE-
MENT NAFTA.—In assessing the ability of each part-
nership country to undertake the obligations of the
NAFTA, the Trade Representative should consider,
among other factors—
(A) whether the country has joined the
WTO;
(B) the extent to which the country provides
equitable access to the markets of that country;
(C) the degree to which the country uses ex-
port subsidies or imposes export performance re-
quirements or local content requirements;
(D) macroeconomic reforms in the country
such as the abolition of price controls on traded
goods and fiscal discipline;
(E) progress the country has made in the
protection of intellectual property rights;
(F) progress the country has made in the
elimination of barriers to trade in services;
(G) whether the country provides national
treatment to foreign direct investment;
(H) the level of tariffs bound by the country
under the WTO (if the country is a WTO mem-
ber);
(I) the extent to which the country has
taken other trade liberalization measures; and
(J) the extent which the country works to
accommodate market access objectives of the
United States.
(c) PARITY REVIEW IN THE EVENT A NEW COUNTRY
ACCEDES TO NAFTA.—If—
(1) a country or group of countries accedes to the
NAFTA, or
(2) the United States negotiates a comparable
free trade agreement with another country or group
of countries,
the Trade Representative shall provide to the committees
referred to in subsection (a) a separate report on the eco-
nomic impact of the new trade relationship on partnership
countries. The report shall include any measures the Trade
Representative proposes to minimize the potential for the
diversion of investment from partnership countries to the
new NAFTA member or free trade agreement partner.
Subtitle B—Revenue Offset
SEC. 111. LIMITATIONS ON WELFARE BENEFIT FUNDS OF 10
OR MORE EMPLOYER PLANS.
(a) BENEFITS TO WHICH EXCEPTION APPLIES.—Sec-
tion 419A(f)(6)(A) of the Internal Revenue Code of 1986
(relating to exception for 10 or more employer plans) is
amended to read as follows:
‘‘(A) IN GENERAL.—This subpart shall not
apply to a welfare benefit fund which is part of
a 10 or more employer plan if the only benefits
provided through the fund are 1 or more of the
following:
‘‘(i) Medical benefits.
‘‘(ii) Disability benefits.
‘‘(iii) Group term life insurance bene-
fits which do not provide for any cash sur-
render value or other money that can be
paid, assigned, borrowed, or pledged for col-
lateral for a loan.
The preceding sentence shall not apply to any
plan which maintains experience-rating arrange-
ments with respect to individual employers.’’
(b) LIMITATION ON USE OF AMOUNTS FOR OTHER
PURPOSES.—Section 4976(b) of such Code (defining dis-
qualified benefit) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(5) SPECIAL RULE FOR 10 OR MORE EMPLOYER
PLANS EXEMPTED FROM PREFUNDING LIMITS.—For
purposes of paragraph (1)(C), if—
‘‘(A) subpart D of part I of subchapter D
of chapter 1 does not apply by reason of section
419A(f)(6) to contributions to provide 1 or more
welfare benefits through a welfare benefit fund
under a 10 or more employer plan, and
‘‘(B) any portion of the welfare benefit fund
attributable to such contributions is used for a
purpose other than that for which the contribu-
tions were made,
then such portion shall be treated as reverting to the
benefit of the employers maintaining the fund.’’
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to contributions paid or accrued after
June 8, 1999, in taxable years ending after such date.
Subtitle C—Suspension of Limita-
tion on Cover Over of Tax on
Distilled Spirits
SEC. 121. SUSPENSION OF LIMITATION ON COVER OVER OF
TAX ON DISTILLED SPIRITS.
(a) IN GENERAL.—Section 7652(f) of the Internal Rev-
enue Code of 1986 (relating to limitation on cover over of
tax on distilled spirits) is amended by adding at the end
the following new sentence:
‘‘The preceding sentence shall not apply to articles that are
tax-determined after June 30, 1999, and before October 1,
1999.’’
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendment made by this
section shall apply to articles that are tax-determined
after June 30, 1999.
(2) SPECIAL RULE.—
(A) IN GENERAL.—The treasury of Puerto
Rico shall make a Conservation Trust Fund
transfer within 30 days after the date of each
cover over payment (made to such treasury
under section 7652(e) of the Internal Revenue
Code of 1986) to which section 7652(f) of such
Code does not apply by reason of the last sen-
tence thereof.
(B) CONSERVATION
TRUST
FUND
TRANS-
FER.—
(i) IN GENERAL.—For purposes of this
paragraph, the term ‘‘Conservation Trust
Fund transfer’’ means a transfer to the
Puerto Rico Conservation Trust Fund of an
amount equal to 50 cents per proof gallon
of the taxes imposed under section 5001 or
section 7652 of such Code on distilled spir-
its that are covered over to the treasury of
Puerto Rico under section 7652(e) of such
Code.
(ii) TREATMENT OF TRANSFER.—Each
Conservation Trust Fund transfer shall be
treated as principal for an endowment, the
income from which to be available for use
by the Puerto Rico Conservation Trust
Fund for the purposes for which the Trust
Fund was established.
(iii) RESULT OF NONTRANSFER.—
(I) IN GENERAL.—Upon notifica-
tion by the Secretary of the Interior
that a Conservation Trust Fund trans-
fer has not been made by the treasury
of Puerto Rico as required by subpara-
graph (A), the Secretary of the Treas-
ury shall, except as provided in sub-
clause (II), deduct and withhold from
the next cover over payment to be made
to the treasury of Puerto Rico under
section 7652(e) of such Code an
amount equal to the appropriate Con-
servation Trust Fund transfer and in-
terest thereon at the underpayment
rate established under section 6621 of
such Code as of the due date of such
transfer. The Secretary of the Treasury
shall transfer such amount deducted
and withheld, and the interest thereon,
directly to the Puerto Rico Conserva-
tion Trust Fund.
(II) GOOD CAUSE EXCEPTION.—If
the Secretary of the Interior finds,
after consultation with the Governor of
Puerto Rico, that the failure by the
treasury of Puerto Rico to make a re-
quired transfer was for good cause, and
notifies the Secretary of the Treasury
of the finding of such good cause before
the due date of the next cover over pay-
ment following the notification of non-
transfer, then the Secretary of the
Treasury shall not deduct the amount
of such nontransfer from any cover
over payment.
(C) PUERTO
RICO
CONSERVATION
TRUST
FUND.—For purposes of this paragraph, the term
‘‘Puerto Rico Conservation Trust Fund’’ means
the fund established pursuant to a Memorandum
of Understanding between the United States De-
partment of the Interior and the Commonwealth
of Puerto Rico, dated December 24, 1968.
TITLE II—FOREIGN ASSISTANCE
FOR CENTRAL AMERICA AND
THE CARIBBEAN
Subtitle A—Microcredit and
Agricultural Assistance
SEC. 201. DECLARATION OF POLICY.
It is the policy of the United States, consistent with
title XII of chapter 2 of part I of the Foreign Assistance
Act of 1961 (22 U.S.C. 2220a), to support the governments
of Central American countries and Caribbean countries,
United States and nongovernmental organizations, univer-
sities, businesses, and international organizations, to help
ensure the availability of basic nutrition and economic op-
portunities for individuals in the affected areas of Central
America and the Caribbean, through sustainable agri-
culture and rural development.
SEC. 202. MICROENTERPRISE ASSISTANCE.
(a) BILATERAL ASSISTANCE.—In providing disaster
assistance in the aftermath of Hurricane Georges and Hur-
ricane Mitch, the Administrator of the United States Agen-
cy for International Development shall, to the extent prac-
ticable, use credit and microcredit assistance to rehabilitate
agriculture production in the affected areas of Central
America and the Caribbean. In providing such assistance,
the Administrator should use the applied research and tech-
nical assistance capabilities of United States land-grant
universities.
(b) MULTILATERAL ASSISTANCE.—The Administrator
shall continue to work with other countries, international
organizations (including multilateral development institu-
tions), and entities assisting microenterprises and shall de-
velop a comprehensive and coordinated strategy for pro-
viding microenterprise assistance for Central America and
the Caribbean.
SEC. 203. SUPPORT FOR PRODUCER-OWNED COOPERATIVE
MARKETING ASSOCIATIONS.
(a) PURPOSES.—The purposes of this section are—
(1) to support producer-owned cooperative pur-
chasing and marketing associations in Central Amer-
ica and the Caribbean;
(2) to strengthen the capacity of farmers in Cen-
tral America and the Caribbean to participate in na-
tional and international private markets and to pro-
mote rural development in the region;
(3) to encourage the efforts of farmers in Central
America and the Caribbean to increase their produc-
tivity and income through improved access to farm
supplies, seasonal credit, technical expertise; and
(4) to support small businesses in Central Amer-
ica and the Caribbean as such businesses grow beyond
microenterprises.
(b) SUPPORT FOR PRODUCER-OWNED COOPERATIVE
MARKETING ASSOCIATIONS.—
(1) ACTIVITIES.—The Administrator of the
United States Agency for International Development
is authorized to utilize relevant foreign assistance
programs and initiatives for the Central America and
the Caribbean region to support private producer-
owned cooperative marketing associations in the re-
gion, including rural business associations that are
owned and controlled by farmer shareholders.
(2) OTHER ACTIVITIES.—In addition to carrying
out paragraph (1), the Administrator is encouraged—
(A) to cooperate with governments of foreign
countries, including governments of political sub-
divisions of such countries, their agricultural re-
search universities, and particularly with United
States 
nongovernmental 
organizations 
and
United States land-grant universities, that have
demonstrated expertise in the development and
promotion of successful private producer-owned
cooperative marketing associations; and
(B) 
to 
facilitate 
partnerships 
between
United States and Central America and the Car-
ibbean cooperatives and private businesses to en-
hance the capacity and technical and marketing
expertise of business associations in the Central
America and the Caribbean region.
SEC. 204. AGRICULTURAL RESEARCH AND EXTENSION AC-
TIVITIES.
(a) DEVELOPMENT OF PLAN.—The Administrator of
the United States Agency for International Development,
in consultation with the Secretary of Agriculture and ap-
propriate other officials in the Department of Agriculture,
especially the head of the Cooperative State, Research, Edu-
cation and Extension Service (CSREES), shall develop a
comprehensive plan to coordinate and build on the research
and extension activities of United States land-grant univer-
sities, international agricultural research centers, and na-
tional agricultural research and extension centers in Cen-
tral America and the Caribbean.
(b) ADDITIONAL REQUIREMENTS.—The plan described
in subsection (a) shall seek to ensure that—
(1) research and extension activities respond to
the needs of the agriculture sectors devastated by Hur-
ricane Georges and Hurricane Mitch while developing
the potential and skills of researchers, extension
agents, farmers, and agribusiness persons in the re-
gion; and
(2) sustainable agricultural methods of farming
will be considered together with new technologies in
rehabilitating agricultural production in the region.
SEC. 205. NONEMERGENCY FOOD ASSISTANCE PROGRAMS.
(a) IN GENERAL.—In providing nonemergency assist-
ance under title II of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1721 et seq.), the Ad-
ministrator of the United States Agency for International
Development shall ensure that—
(1) in planning, decisionmaking, and providing
assistance, the Administrator takes into consideration
local input and participation directly and through
United States and indigenous private and voluntary
organizations;
(2) each of the nonemergency activities described
in paragraphs (2) through (6) of section 201 of such
Act (7 U.S.C. 1721), including programs that provide
assistance to people of any age group who are other-
wise unable to meet their basic food needs (including
feeding programs for the disabled, orphaned, elderly,
sick and dying), are carried out; and
(3) greater flexibility is provided for program
and evaluation plans so that such assistance may be
developed to meet local needs, as provided for in sec-
tion 202(f) of such Act (7 U.S.C. 1722(f)).
(b) OTHER REQUIREMENTS.—In providing assistance
under the Agriculture Trade Development and Assistance
Act of 1954, the Secretary of Agriculture and the Adminis-
trator shall ensure that commodities are provided in a man-
ner that is consistent with subsections (a) and (b) of section
403 of such Act (7 U.S.C. 1733(a) and (b)).
Subtitle B—Overseas Private
Investment Corporation
SEC. 211. PRIVATE SECTOR DEVELOPMENT ACTIVITIES OF
OPIC.
(a) PURPOSE.—The purpose of this section is to com-
mend OPIC for its recent initiative to provide financing
and insurance to an investment facility in partnership with
Citibank and to encourage OPIC to continue to work with
United States businesses and other United States entities
to invest in the affected areas of Central America and the
Caribbean, particularly in ways that will help promote sus-
tainable development.
(b) SENSE OF CONGRESS.—It is the sense of the Con-
gress that OPIC should, in accordance with its mandate
to foster private investment and enhance the ability of pri-
vate enterprise to make its full contribution to the develop-
ment process, exercise the authorities it has to further in-
crease efforts to promote and support United States spon-
sored private investment in the affected areas of Central
America and the Caribbean, including—
(1) issuing loans, guaranties, and insurance, to
support infrastructure, agriculture, small business,
tourism, and other projects as appropriate; and
(2) 
undertaking 
a 
special 
initiative 
that
includes—
(A) sending a needs assessment team to the
affected areas of Central America and the Carib-
bean to determine ways in which OPIC can best
support the essential investment required to re-
store infrastructure and other critical services in
those affected areas;
(B) engaging in an exhaustive outreach pro-
gram to involve United States companies in the
recovery process and exploring potential new
projects which will assist those affected areas;
(C) consulting and coordinating with host
country governments to promote private invest-
ment in priority sectors; and
(D) utilizing existing equity funds to sup-
port developmental private sector projects.
(c) TECHNICAL AMENDMENTS.—Section 234 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2194) is
amended—
(1) by redesignating subsection (c) (the second
place it appears) as paragraph (5);
(2) by amending the heading of paragraph (5),
as redesignated by paragraph (1) of this subsection,
to read as follows:
‘‘(5) CREATION OF FUND FOR ACQUISITION OF
EQUITY.—’’; and
(3) by indenting paragraph (5), as redesignated
by paragraph (1) of this subsection, one full measure.
Subtitle C—Economic Support
Fund Assistance
SEC. 221. ECONOMIC SUPPORT FUND ASSISTANCE.
(a) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the President for fiscal
year 1999 $611,000,000 to carry out chapter 4 of part II
of the Foreign Assistance Act of 1961 (22 U.S.C. 2346 et
seq.) for reconstruction and disaster mitigation assistance
for affected areas of Central America and the Caribbean.
(b) USE OF AMOUNTS.—Of the amount appropriated
under subsection (a), the President shall reserve the fol-
lowing amounts for the following purposes:
(1) AGRICULTURE
AND
RURAL
RECONSTRUC-
TION.—$283,000,000 for the construction and repair
of rural roads, the provision of micro-enterprise loans,
the provision of tools, seed, and fertilizer, and for as-
sistance for rural farmers to adopt sustainable pro-
duction techniques.
(2) DISEASE CONTROL, SURVEILLANCE, AND PRE-
VENTION.—$136,000,000 for the reconstruction and
rehabilitation of health posts and clinics, the provi-
sion of water and sanitation services, and disease
control, surveillance, and prevention.
(3) EDUCATION AND HOUSING.—$55,000,000 for
construction, repair, and re-equipment of educational
facilities, including the provision of school supplies,
and the re-equipment of new housing units.
(4) ENVIRONMENTAL
MANAGEMENT
AND
DIS-
ASTER MITIGATION.—$64,000,000 for environmental
management and disaster mitigation, including land
use planning and resources management.
(5) ANTI-CORRUPTION ACTIVITIES.—$22,000,000
for the efficient management of local reconstruction
assistance, including anti-corruption training for
municipal governments, nongovernmental organiza-
tions, and law enforcement.
(6) ASSISTANCE FOR THE DOMINICAN REPUBLIC
AND
OTHER
CARIBBEAN
COUNTRIES
AFFECTED
BY
HURRICANE
GEORGES.—$42,000,000 for reconstruc-
tion assistance related to health, economic revitaliza-
tion, and housing for the Dominican Republic and
other Caribbean countries affected by Hurricane
Georges.
(c) ADMINISTRATIVE EXPENSES.—Of the amount au-
thorized to be appropriated under subsection (a), the Presi-
dent shall reserve $6,000,000 for the operating expenses of
the United States Agency for International Development in-
curred in connection with assistance provided under this
Act.
SEC. 222. REIMBURSEMENT OF INTERNATIONAL DISASTER
ACCOUNT.
There is authorized to be appropriated to the President
for fiscal year 1999 $25,000,000 to reimburse the inter-
national disaster assistance account for expenses incurred
with respect to international disaster assistance provided
for affected areas of Central America and the Caribbean
under chapter 9 of part I of the Foreign Assistance Act of
1961 (22 U.S.C. 2292 et seq.) for recovery from Hurricane
Georges and Hurricane Mitch.
SEC. 223. RULE OF CONSTRUCTION; AVAILABILITY OF
AMOUNTS.
(a) RULE OF CONSTRUCTION.—Amounts authorized to
be appropriated under this subtitle are in addition to
amounts otherwise available for the purposes described in
the section of this subtitle involved.
(b) AVAILABILITY OF AMOUNTS.—Amounts authorized
to be appropriated under this subtitle are authorized to re-
main available until expended.
TITLE III—DEPARTMENT OF
DEFENSE
SEC. 301. REPLACEMENT OF FUNDS USED FOR DISASTER
RELIEF AND RECONSTRUCTION.
In addition to amounts authorized to be appropriated
under any other law for the Department of Defense for fiscal
year 1999, funds are hereby authorized to be appropriated
for the use of the Armed Forces and other activities and
agencies of the Department of Defense for expenses, not oth-
erwise provided for, for operation and maintenance, in
amounts as follows:
(1) For replenishment of Department of Defense
accounts used in providing disaster relief and recon-
struction to affected areas of Central America and the
Caribbean, $135,200,000, of which—
(A) $75,000,000 may be used for replenish-
ment of operation and maintenance and mili-
tary personal accounts;
(B) $37,500,000 may be used for replenish-
ment of the Overseas Humanitarian Disaster
and Civic Aid account (including demining ini-
tiatives); and
(C) $20,000,000 may be used for replenish-
ment of the Commanders in Chief (CINC) Initia-
tive Fund.
(2) For the New Horizons Program, $56,000,000
for expanded National Guard and Reserve exercises in
Central American countries and the Dominican Re-
public.