733 
States production is being replaced by such enterprise out-
side the United States. 
(b) WORKERS’ RIGHTS.—No foreign assistance may 
be made available for any program, project, or activity 
that contributes to the violation of internationally recog-
nized worker rights (as such term is defined in section 
507(4) of the Trade Act of 1974 (19 U.S.C. 2467(4))) 
of workers in a partner country, including any designated 
zone or area in the country. 
(c) MICRO AND SMALL-SCALE ENTERPRISE.—The 
application of subparagraph (D) or (E) of section 507(4) 
of the Trade Act of 1974 (19 U.S.C. 2467(4)) with respect 
to a partner country should be commensurate with the 
level of development of the country and the relevant eco-
nomic sector of the country, and shall not preclude assist-
ance for the informal sector of the country, micro and 
small-scale enterprise in the country, and smallholder agri-
culture in the country. 
SEC. 10502. PROHIBITION ON ASSISTANCE TO GOVERN-
MENTS THAT EXPROPRIATE UNITED STATES 
PROPERTY. 
(a) IN GENERAL.—No foreign assistance may be pro-
vided to a foreign government which the Secretary deter-
mines has— 
(1) on or after January 1, 1962— 
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(A) nationalized or expropriated or seized 
ownership or control of property owned by any 
United States citizen or by any corporation, 
partnership, or association not less than 50 per-
cent beneficially owned by United States citi-
zens; 
(B) taken steps to repudiate or nullify ex-
isting contracts or agreements with any United 
States citizen or any corporation, partnership, 
or association not less than 50 percent bene-
ficially owned by United States citizens; or 
(C) imposed or enforced discriminatory 
taxes or other exactions, or restrictive mainte-
nance or operational conditions, or has taken 
other actions, which have the effect of national-
izing, expropriating, or otherwise seizing owner-
ship or control of property so owned; and 
(2) failed within a reasonable time to take ap-
propriate steps, which may include arbitration, to— 
(A) discharge its obligations under inter-
national law toward such citizen or entity, in-
cluding speedy compensation for such property 
in convertible foreign exchange, equivalent to 
the full value thereof, as required by inter-
national law; or 
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735 
(B) provide relief from such taxes, exac-
tions, or conditions, as the case may be. 
(b) ‘‘REASONABLE TIME’’ DEFINED.—For the pur-
poses of subsection (a)(2), the term ‘‘reasonable time’’ 
means— 
(1) not more than six months after an action 
described in subsection (a)(1); or 
(2) in the event of a referral to the Foreign 
Claims Settlement Commission of the United States, 
not more than twenty days after the report of the 
Commission is received. 
(c) EXPIRATION
OF DETERMINATIONS.—A deter-
mination of the Secretary under subsection (a) shall re-
main in effect until rescinded. 
(d) RESCISSION
OF DETERMINATIONS.—A deter-
mination of the Secretary under subsection (a) with re-
spect to a foreign government shall not be rescinded unless 
the President submits to the appropriate congressional 
committees a report certifying that the government has 
taken appropriate steps to— 
(1) discharge its obligations under international 
law toward such citizen or entity; or 
(2) provide relief from the taxes, exactions, or 
conditions, as the case may be. 
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736 
(e) PUBLICATION.—A determination made under 
subsection (a) or a report submitted under subsection (d) 
shall be published in the Federal Register and made avail-
able on the Internet website of the Department of State. 
(f) LIST.—The Secretary shall include in the annual 
report required by section 9302 (relating to congressional 
budget justification) a list of foreign governments for 
which determinations under subsection (a) are currently 
in effect. 
(g) WAIVER.—Assistance prohibited by subsection (a) 
may be provided to a foreign government described in that 
subsection if, at least 15 days before providing assistance, 
the President submits to the appropriate congressional 
committees— 
(1) a certification that such a waiver is impor-
tant to the national interests of the United States; 
and 
(2) a report describing— 
(A) the type and amount of assistance to 
be provided pursuant to the waiver; 
(B) the justification for such waiver; and 
(C) the time period for which such waiver 
will be effective. 
(h) FOREIGN CLAIMS SETTLEMENT COMMISSION.— 
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737 
(1) IN GENERAL.—Upon request of the Presi-
dent (within 70 days after an action referred to in 
subsection (a)(1)), the Foreign Claims Settlement 
Commission of the United States (established pursu-
ant to Reorganization Plan No. 1 of 1954, 68 Stat. 
1279) is hereby authorized to evaluate expropriated 
property, determining the full value of any property 
nationalized, expropriated, or seized, or subject to 
discriminatory or other actions as aforesaid, for pur-
poses of this section and to render an advisory re-
port to the President within 90 days after such re-
quest. 
(2) FORM OF REPORT.—Unless authorized by 
the President, the Commission shall not publish its 
advisory report except to the citizen or entity owning 
such property. 
(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated such 
amounts, to remain available until expended, as may 
be necessary from time to time to enable the Com-
mission to carry out expeditiously its functions 
under this subsection. 
(i) FEDERAL ACT OF STATE DOCTRINE.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law, no court in the United States shall 
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738 
decline on the ground of the Federal act of state 
doctrine to make a determination on the merits giv-
ing effect to the principles of international law in a 
case in which claim of title or other right to property 
is asserted by any party, including a foreign state 
(or a party claiming through such state), based upon 
(or traced through) a confiscation or other taking 
after January 1, 1959, by an act of that state in vio-
lation of the principles of international law, includ-
ing the principles of compensation and the other 
standards set out in this section. 
(2) EXCEPTIONS.—This subsection shall not be 
applicable— 
(A) in any case in which an act of a for-
eign state is not contrary to international law 
or with respect to a claim of title or other right 
to property acquired pursuant to an irrevocable 
letter of credit of not more than 180 days dura-
tion issued in good faith prior to the time of the 
confiscation or other taking; or 
(B) in any case with respect to which the 
President determines that application of the act 
of state doctrine is required in that particular 
case by the foreign policy interests of the 
United States and a suggestion to this effect is 
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739 
filed on the President’s behalf in that case with 
the court. 
SEC. 10503. PROHIBITION ON ASSISTANCE FOR COMPENSA-
TION RELATING TO EXPROPRIATED OR NA-
TIONALIZED PROPERTY. 
(a) PROHIBITION.—No foreign assistance may be 
provided to compensate owners for expropriated or nation-
alized property and, upon finding by the President that 
such assistance has been used by a government for such 
purpose, no further assistance under this Act may be pro-
vided to the government until appropriate reimbursement 
is made to the United States. 
(b) EXCEPTION.—The prohibition in subsection (a) 
shall not apply to monetary assistance made available for 
use by a foreign government to compensate nationals of 
that country in accordance with a land reform program 
if the President determines that monetary assistance for 
such land reform program will further the national inter-
ests of the United States. 
SEC. 10504. PROHIBITION ON ASSISTANCE TO GOVERN-
MENTS 
THAT 
REFUSE 
EXTRADITION 
RE-
QUESTS. 
(a) IN GENERAL.—No assistance under this Act 
(other than assistance under title V) may be provided to 
the central government of a country which has notified 
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740 
the Department of State of its refusal to extradite to the 
United States any individual indicted for a criminal of-
fense for which the maximum penalty is life imprisonment 
without the possibility of parole or for killing a law en-
forcement officer, as specified in a United States extra-
dition request. 
(b) APPLICABILITY.—The prohibition in subsection 
(a) shall only apply to the central government of a coun-
try— 
(1) with which the United States maintains dip-
lomatic relations; and 
(2) which is violating the terms and conditions 
of its extradition treaty with the United States. 
(c) WAIVER.—The Secretary may waive the prohibi-
tion in subsection (a) on a case-by-case basis if the Sec-
retary certifies and reports to the appropriate congres-
sional committees pursuant to section 9401 that such 
waiver is important to the national interests of the United 
States. 
SEC. 10505. PROHIBITION ON TAXATION OF FOREIGN AS-
SISTANCE. 
(a) IN GENERAL.—No foreign assistance may be pro-
vided to a foreign government under a bilateral agreement 
entered into after the date of the enactment of this Act 
governing the terms and conditions under which such as-
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741 
sistance is to be provided unless such agreement includes 
a provision stating that United States foreign assistance 
shall be exempt from taxation or reimbursed by the for-
eign government. 
(b) REIMBURSEMENT OF FOREIGN TAXES.—In each 
fiscal year, the Secretary shall reduce the amount of for-
eign assistance made available under this Act to a govern-
ment by an amount equivalent to the total taxes assessed 
on United States foreign assistance, either directly or 
through grantees, contractors and subcontractors, by such 
government in the previous fiscal year, until such taxes 
have been reimbursed to the United States. 
(c) TRANSPARENCY.—The Secretary shall include in 
each report on allocations of assistance under section 9303 
the amount of unreimbursed taxes assessed by each gov-
ernment to which the United States Government intends 
to provide funds. 
(d) DEFINITION.—In this section, the terms ‘‘taxes’’ 
and ‘‘taxation’’ refer to value-added taxes and customs du-
ties imposed on commodities financed with United States 
foreign assistance, and do not include foreign taxes of a 
de minimis nature. 
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742 
SEC. 10506. REIMBURSEMENT OF PARKING FINES AND 
REAL PROPERTY TAXES OWED BY GOVERN-
MENTS. 
(a) IN GENERAL.—In each fiscal year, the Secretary 
shall reduce the amounts made available to a foreign gov-
ernment under this Act by an amount equivalent to 110 
percent of the total amount of the unpaid parking fines 
and unpaid property taxes owed by such government, until 
such parking fines and property taxes are fully paid. 
(b) 
ADDITIONAL
AMOUNTS.—Amounts 
reduced 
under subsection (a) shall be in addition to amounts with-
held under any other provision of law. 
(c) WAIVER.—The Secretary may waive the require-
ments of subsection (a) with respect to a government if 
the Secretary determines that it is in the national interests 
of the United States to do so. 
(d) REPORTS.—The Secretary shall— 
(1) include in the annual report required by 
section 9302 a list of governments for which waivers 
under subsection (c) have been issued; and 
(2) include in each report on allocations of as-
sistance under section 9303 the amount of unpaid 
parking fines and unpaid property taxes owed by 
each foreign government to which the United States 
Government intends to provide assistance. 
(e) DEFINITIONS.—In this section— 
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(1) the term ‘‘unpaid parking fines’’ means 
fully adjudicated parking fines, including penalties— 
(A) which are incurred after April 1, 1997; 
(B) which are owed to the District of Co-
lumbia or New York, New York; 
(C) for which the person to whom the vehi-
cle is registered— 
(i) has not responded to the parking 
violation summons; or 
(ii) has not followed the appropriate 
adjudication procedure to challenge the 
summons; and 
(D) for which the period of time for pay-
ment of or challenge to the summons has 
lapsed; and 
(2) the term ‘‘unpaid property taxes’’ means 
the amount of unpaid taxes and interest determined 
to be owed by a foreign country on real property in 
the District of Columbia or New York, New York, 
in a court order or judgment entered against such 
country by a court of the United States or any State 
or subdivision thereof. 
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