H. R. 2159—27
DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY
SEC. 521. 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 ear-
marks, 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 assistance
accounts of the Agency for International Development ‘‘program,
project, and activity’’ shall also be considered to include central
program level funding, either as: (1) justified to the Congress;
or (2) allocated by the executive branch in accordance with a report,
to be provided to the Committees on Appropriations within 30
days of enactment of this Act, as required by section 653(a) of
the Foreign Assistance Act of 1961.
CHILD SURVIVAL, AIDS, AND OTHER ACTIVITIES
SEC. 522. Up to $10,000,000 of the funds made available by
this Act for assistance for family planning, health, child survival,
basic education, and AIDS, may be used to reimburse United States
Government agencies, agencies of State governments, institutions
of higher learning, and private and voluntary organizations for
the full cost of individuals (including for the personal services
of such individuals) detailed or assigned to, or contracted by, as
the case may be, the Agency for International Development for
the purpose of carrying out family planning activities, child survival,
and basic education activities, and activities relating to research
on, and the treatment and control of acquired immune deficiency
syndrome in developing countries: Provided, That funds appro-
priated 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
available notwithstanding any provision of law that restricts assist-
ance 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. 523. 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 Republic of China, unless the President
of the United States certifies that the withholding of these funds
is contrary to the national interest of the United States.
RECIPROCAL LEASING
SEC. 524. Section 61(a) of the Arms Export Control Act is
amended by striking out ‘‘1997’’ and inserting in lieu thereof ‘‘1998’’.
NOTIFICATION ON EXCESS DEFENSE EQUIPMENT
SEC. 525. Prior to providing excess Department of Defense
articles in accordance with section 516(a) of the Foreign Assistance
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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 pursuant 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 Committees:
Provided further, That such Committees shall also be informed
of the original acquisition cost of such defense articles.
AUTHORIZATION REQUIREMENT
SEC. 526. Funds appropriated by this Act may be obligated
and expended notwithstanding section 10 of Public Law 91–672
and section 15 of the State Department Basic Authorities Act of
1956.
PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST COUNTRIES
SEC. 527. (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 individual
or group which has committed an act of international
terrorism; or
(2) otherwise supports international terrorism.
(b) The President may waive the application of subsection (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 Federal Register and, at least 15 days
before the waiver takes effect, shall notify the Committees on Appro-
priations 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. 528. 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 provide financing to Israel, Egypt
and NATO and major non-NATO allies for the procurement by
leasing (including leasing with an option to purchase) of defense
articles from United States commercial suppliers, not 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 policy or national
security reasons for those defense articles being provided by
commercial lease rather than by government-to-government sale
under such Act.
COMPETITIVE INSURANCE
SEC. 529. All Agency for International Development contracts
and solicitations, and subcontracts entered into under such con-
tracts, shall include a clause requiring that United States insurance
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companies have a fair opportunity to bid for insurance when such
insurance is necessary or appropriate.
STINGERS IN THE PERSIAN GULF REGION
SEC. 530. Except as provided in section 581 of the Foreign
Operations, Export Financing, and Related Programs Appropria-
tions 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.
DEBT-FOR-DEVELOPMENT
SEC. 531. In order to enhance the continued participation of
nongovernmental organizations in economic assistance activities
under the Foreign Assistance Act of 1961, including endowments,
debt-for-development and debt-for-nature exchanges, a nongovern-
mental 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 currencies which accrue to that organization as a result of
economic assistance provided under title II of this Act and any
interest earned on such investment shall be used for the purpose
for which the assistance was provided to that organization.
SEPARATE ACCOUNTS
SEC. 532. (a) SEPARATE ACCOUNTS FOR LOCAL CURRENCIES.—
(1) If assistance is furnished to the government of a foreign country
under chapter 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 Adminis-
trator 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 government which
sets forth—
(i) the amount of the local currencies to be generated;
and
(ii) the terms and conditions under which the
currencies so deposited may be utilized, consistent 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 account for deposits into
and disbursements from the separate account.
(2) USES OF LOCAL CURRENCIES.—As may be agreed upon with
the foreign government, local currencies deposited in a separate
account pursuant to subsection (a), or an equivalent amount of
local currencies, shall be used only—
(A) to carry out chapter 1 or 10 of part I or chapter
4 of part II (as the case may be), for such purposes as—
(i) project and sector assistance activities; or
(ii) debt and deficit financing; or
(B) for the administrative requirements of the United
States Government.
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(3) PROGRAMMING ACCOUNTABILITY.—The Agency for Inter-
national Development shall take all necessary steps to ensure that
the equivalent of the local currencies disbursed pursuant to sub-
section (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 chapter 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 sub-
section shall supersede the tenth and eleventh provisos contained
under the heading ‘‘Sub-Saharan Africa, Development Assistance’’
as included in the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1989 and sections 531(d)
and 609 of the Foreign Assistance Act of 1961.
(6) REPORTING
REQUIREMENT.—The Administrator of the
Agency for International Development shall report on an annual
basis as part of the justification documents submitted to the
Committees on Appropriations on the use of local currencies for
the administrative requirements of the United States Government
as authorized in subsection (a)(2)(B), and such report shall include
the amount of local currency (and United States dollar equivalent)
used and/or to be used for such purpose in each applicable country.
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—(1) If assist-
ance is made available to the government of a foreign country,
under chapter 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 separate 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 Resolu-
tion 648 (H. Report No. 98–1159).
(3) NOTIFICATION.—At least 15 days prior to obligating any
such cash transfer or nonproject sector assistance, the President
shall submit a notification through the regular notification proce-
dures of the Committees on Appropriations, which shall include
a detailed description of how the funds proposed to be made avail-
able will be used, with a discussion of the United States interests
that will be served by the assistance (including, as appropriate,
a description of the economic policy reforms that will be promoted
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. 533. (a) No funds appropriated by this Act may be made
as payment to any international financial institution while the