Calendar No. 470
104TH CONGRESS
2D SESSION
H.R. 3540
[Report No. 104–295]
AN ACT
Making appropriations for foreign operations, ex-
port financing, and related programs for the fis-
cal year ending September 30, 1997, and for
other purposes.
JUNE 12, 1996
Received; read twice and referred to the Committee on
Appropriations
JUNE 27, 1996
Reported with an amendment
II
Calendar No. 470
104TH CONGRESS
2D SESSION
H.R. 3540
[Report No. 104–295]
IN THE SENATE OF THE UNITED STATES
JUNE 12, 1996
Received; read twice and referred to the Committee on Appropriations
JUNE 27, 1996
Reported by Mr. MCCONNELL, with an amendment
[Strike all after the enacting clause and insert the part printed in italic]
AN ACT
Making appropriations for foreign operations, export financ-
ing, and related programs for the fiscal year ending
September 30, 1997, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
That the following sums are appropriated, out of any
money in the Treasury not otherwise appropriated, for the
fiscal year ending September 30, 1997, and for other pur-
poses, namely:
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TITLE I—EXPORT AND INVESTMENT
ASSISTANCE
EXPORT-IMPORT BANK OF THE UNITED STATES
The Export-Import Bank of the United States is au-
thorized to make such expenditures within the limits of
funds and borrowing authority available to such corpora-
tion, and in accordance with law, and to make such con-
tracts and commitments without regard to fiscal year limi-
tations, as provided by section 104 of the Government
Corporation Control Act, as may be necessary in carrying
out the program for the current fiscal year for such cor-
poration: Provided, That none of the funds available dur-
ing the current fiscal year may be used to make expendi-
tures, contracts, or commitments for the export of nuclear
equipment, fuel, or technology to any country other than
a nuclear-weapon State as defined in Article IX of the
Treaty on the Non-Proliferation of Nuclear Weapons eligi-
ble to receive economic or military assistance under this
Act that has detonated a nuclear explosive after the date
of enactment of this Act.
SUBSIDY APPROPRIATION
For the cost of direct loans, loan guarantees, insur-
ance, and tied-aid grants as authorized by section 10 of
the Export-Import Bank Act of 1945, as amended,
$726,000,000 to remain available until September 30,
1998: Provided, That such costs, including the cost of
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formed on a contract or fee basis, but not including other
personal services) in connection with the collection of mon-
eys owed the Export-Import Bank, repossession or sale of
pledged collateral or other assets acquired by the Export-
Import Bank in satisfaction of moneys owed the Export-
Import Bank, or the investigation or appraisal of any
property, or the evaluation of the legal or technical aspects
of any transaction for which an application for a loan,
guarantee or insurance commitment has been made, shall
be considered nonadministrative expenses for the purposes
of this heading: Provided further, That, notwithstanding
subsection (b) of section 117 of the Export Enhancement
Act of 1992, subsection (a) thereof shall remain in effect
until October 1, 1997.
OVERSEAS PRIVATE INVESTMENT CORPORATION
NONCREDIT ACCOUNT
The Overseas Private Investment Corporation is au-
thorized to make, without regard to fiscal year limitations,
as provided by 31 U.S.C. 9104, such expenditures and
commitments within the limits of funds available to it and
in accordance with law as may be necessary: Provided,
That the amount available for administrative expenses to
carry out the credit and insurance programs (including an
amount for official reception and representation expenses
which
shall
not
exceed
$35,000)
shall
not
exceed
$30,000,000: Provided further, That project-specific trans-
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action costs, including direct and indirect costs incurred
in claims settlements, and other direct costs associated
with services provided to specific investors or potential in-
vestors pursuant to section 234 of the Foreign Assistance
Act of 1961, shall not be considered administrative ex-
penses for the purposes of this heading.
PROGRAM ACCOUNT
For
the
cost
of
direct
and
guaranteed
loans,
$72,000,000, as authorized by section 234 of the Foreign
Assistance Act of 1961: Provided, That such costs, includ-
ing the cost of modifying such loans, shall be as defined
in section 502 of the Congressional Budget Act of 1974:
Provided further, That such sums shall be available for di-
rect loan obligations and loan guaranty commitments in-
curred or made during fiscal years 1997 and 1998: Pro-
vided further, That such sums shall remain available
through fiscal year 2005 for the disbursement of direct
and guaranteed loans obligated in fiscal year 1997, and
through fiscal year 2006 for the disbursement of direct
and guaranteed loans obligated in fiscal year 1998. In ad-
dition, such sums as may be necessary for administrative
expenses to carry out the credit program may be derived
from amounts available for administrative expenses to
carry out the credit and insurance programs in the Over-
seas Private Investment Corporation Noncredit Account
and merged with said account.
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FUNDS APPROPRIATED TO THE PRESIDENT
TRADE AND DEVELOPMENT AGENCY
For necessary expenses to carry out the provisions
of section 661 of the Foreign Assistance Act of 1961,
$38,000,000, to remain available for obligation until Sep-
tember 30, 1998: Provided, That the Trade and Develop-
ment Agency may receive reimbursements from corpora-
tions and other entities for the costs of grants for feasibil-
ity studies and other project planning services, to be de-
posited as an offsetting collection to this account and to
be available for obligation until September 30, 1998, for
necessary expenses under this paragraph: Provided fur-
ther, That such reimbursements shall not cover, or be allo-
cated against, direct or indirect administrative costs of the
agency.
TITLE II—BILATERAL ECONOMIC ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
For expenses necessary to enable the President to
carry out the provisions of the Foreign Assistance Act of
1961, and for other purposes, to remain available until
September 30, 1997, unless otherwise specified herein, as
follows:
AGENCY FOR INTERNATIONAL DEVELOPMENT
CHILD SURVIVAL AND DISEASE PROGRAMS FUND
For necessary expenses to carry out the provisions
of part I and chapter 4 of part II of the Foreign Assist-
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ance Act of 1961, for child survival, basic education, as-
sistance to combat tropical and other diseases, and related
activities, in addition to funds otherwise available for such
purposes, $600,000,000, to remain available until ex-
pended: Provided, That this amount shall be made avail-
able for such activities as (1) immunization programs, (2)
oral rehydration programs, (3) health and nutrition pro-
grams, and related education programs, which address the
needs of mothers and children, (4) water and sanitation
programs, (5) assistance for displaced and orphaned chil-
dren, (6) programs for the prevention, treatment, and con-
trol of, and research on, tuberculosis, HIV/AIDS, polio,
malaria and other diseases, (7) not to exceed $98,000,000
for basic education programs for children, and (8) a con-
tribution on a grant basis to the United Nations Chil-
dren’s Fund (UNICEF) pursuant to section 301 of the
Foreign Assistance Act of 1961.
DEVELOPMENT ASSISTANCE
(INCLUDING TRANSFER OF FUNDS)
For necessary expenses to carry out the provisions
of sections 103 through 106 and chapter 10 of part I of
the Foreign Assistance Act of 1961, $1,150,000,000, to
remain available until September 30, 1998: Provided,
That none of the funds made available in this Act nor
any unobligated balances from prior appropriations may
be made available to any organization or program which,
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as determined by the President of the United States, sup-
ports or participates in the management of a program of
coercive abortion or involuntary sterilization: Provided fur-
ther, That none of the funds made available under this
heading may be used to pay for the performance of abor-
tion as a method of family planning or to motivate or co-
erce any person to practice abortions; and that in order
to reduce reliance on abortion in developing nations, funds
shall be available only to voluntary family planning
projects which offer, either directly or through referral to,
or information about access to, a broad range of family
planning methods and services: Provided further, That in
awarding grants for natural family planning under section
104 of the Foreign Assistance Act of 1961 no applicant
shall be discriminated against because of such applicant’s
religious or conscientious commitment to offer only natu-
ral family planning; and, additionally, all such applicants
shall comply with the requirements of the previous proviso:
Provided further, That for purposes of this or any other
Act authorizing or appropriating funds for foreign oper-
ations, export financing, and related programs, the term
‘‘motivate’’, as it relates to family planning assistance,
shall not be construed to prohibit the provision, consistent
with local law, of information or counseling about all preg-
nancy options: Provided further, That nothing in this para-
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graph shall be construed to alter any existing statutory
prohibitions against abortion under section 104 of the
Foreign Assistance Act of 1961: Provided further, That
the total amount of funds appropriated under this heading
and under the heading ‘‘Child Survival and Disease Pro-
grams Fund’’ should be made available for each of the
sub-Saharan Africa and Latin America and Caribbean re-
gions in at least the same proportion as the total amount
identified in the fiscal year 1997 draft congressional pres-
entation document for development assistance for each
such region is to the total amount requested for develop-
ment assistance for such fiscal year.
PRIVATE AND VOLUNTARY ORGANIZATIONS
None of the funds appropriated or otherwise made
available by this Act for development assistance may be
made available to any United States private and voluntary
organization, except any cooperative development organi-
zation, which obtains less than 20 per centum of its total
annual funding for international activities from sources
other than the United States Government: Provided, That
the requirements of the provisions of section 123(g) of the
Foreign Assistance Act of 1961 and the provisions on pri-
vate and voluntary organizations in title II of the ‘‘Foreign
Assistance and Related Programs Appropriations Act,
1985’’ (as enacted in Public Law 98–473) shall be super-
seded by the provisions of this section, except that the au-
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thority contained in the last sentence of section 123(g)
may be exercised by the Administrator with regard to the
requirements of this paragraph.
Funds appropriated or otherwise made available
under title II of this Act should be made available to pri-
vate and voluntary organizations at a level which is equiv-
alent to the level provided in fiscal year 1995. Such private
and voluntary organizations shall include those which op-
erate on a not-for-profit basis, receive contributions from
private sources, receive voluntary support from the public
and are deemed to be among the most cost-effective and
successful providers of development assistance.
INTERNATIONAL DISASTER ASSISTANCE
For necessary expenses for international disaster re-
lief, rehabilitation, and reconstruction assistance pursuant
to section 491 of the Foreign Assistance Act of 1961, as
amended, $190,000,000, to remain available until ex-
pended.
DEBT RESTRUCTURING
For the cost, as defined in section 502 of the Con-
gressional Budget Act of 1974, of modifying direct loans
and loan guarantees, as the President may determine, for
which funds have been appropriated or otherwise made
available for programs within the International Affairs
Budget Function 150, including the cost of selling, reduc-
ing, or canceling amounts, through debt buybacks and
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swaps,
owed
to
the
United
States
as
a
result
of
concessional loans made to eligible Latin American and
Caribbean countries, pursuant to part IV of the Foreign
Assistance Act of 1961, $10,000,000, to remain available
until expended: Provided, That none of the funds appro-
priated under this heading shall be obligated or expended
except as provided through the regular notification proce-
dures of the Committees on Appropriations.
MICRO AND SMALL ENTERPRISE DEVELOPMENT PROGRAM
ACCOUNT
For the cost of direct loans and loan guarantees,
$1,500,000, as authorized by section 108 of the Foreign
Assistance Act of 1961, as amended: Provided, That such
costs shall be as defined in section 502 of the Congres-
sional Budget Act of 1974: Provided further, That guaran-
tees of loans made under this heading in support of micro-
enterprise activities may guarantee up to 70 percent of
the principal amount of any such loans notwithstanding
section 108 of the Foreign Assistance Act of 1961. In ad-
dition, for administrative expenses to carry out programs
under this heading, $500,000, all of which may be trans-
ferred to and merged with the appropriation for Operating
Expenses of the Agency for International Development:
Provided further, That funds made available under this
heading shall remain available until September 30, 1998.
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HOUSING GUARANTY PROGRAM ACCOUNT
For the cost, as defined in section 502 of the Con-
gressional Budget Act of 1974, of guaranteed loans au-
thorized by sections 221 and 222 of the Foreign Assist-
ance Act of 1961, $500,000, to remain available until Sep-
tember 30, 1998: Provided, That these funds are available
to subsidize loan principal, 100 percent of which shall be
guaranteed, pursuant to the authority of such sections. In
addition, for administrative expenses to carry out guaran-
teed loan programs, $6,000,000, all of which may be
transferred to and merged with the appropriation for Op-
erating Expenses of the Agency for International Develop-
ment: Provided further, That commitments to guarantee
loans under this heading may be entered into notwith-
standing the second and third sentences of section 222(a)
and, with regard to programs for the benefit of South Af-
ricans disadvantaged by apartheid, section 223(j) of the
Foreign Assistance Act of 1961: Provided further, That
funds appropriated under this heading for the cost of
guaranteed loans may be made available for obligation
only for activities in South Africa.
PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND
DISABILITY FUND
For payment to the ‘‘Foreign Service Retirement and
Disability Fund’’, as authorized by the Foreign Service
Act of 1980, $43,826,000.
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OPERATING EXPENSES OF THE AGENCY FOR
INTERNATIONAL DEVELOPMENT
For necessary expenses to carry out the provisions
of section 667, $465,750,000: Provided, That of this
amount not more than $1,475,000 may be made available
to pay for printing costs: Provided further, That none of
the funds appropriated by this Act for programs adminis-
tered by the Agency for International Development (AID)
may be used to finance printing costs of any report or
study (except feasibility, design, or evaluation reports or
studies) in excess of $25,000 without the approval of the
Administrator of the Agency or the Administrator’s des-
ignee.
OPERATING
EXPENSES
OF
THE
AGENCY
FOR
INTER-
NATIONAL
DEVELOPMENT
OFFICE
OF
INSPECTOR
GENERAL
For necessary expenses to carry out the provisions
of section 667, $30,000,000, to remain available until Sep-
tember 30, 1998, which sum shall be available for the Of-
fice of the Inspector General of the Agency for Inter-
national Development.
OTHER BILATERAL ECONOMIC ASSISTANCE
ECONOMIC SUPPORT FUND
For necessary expenses to carry out the provisions
of chapter 4 of part II, $2,336,000,000, to remain avail-
able until September 30, 1998: Provided, That any funds
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appropriated under this heading that are made available
for Israel shall be available on a grant basis as a cash
transfer and shall be disbursed within thirty days of enact-
ment of this Act or by October 31, 1996, whichever is
later: Provided further, That none of the funds appro-
priated under this heading shall be made available for
Zaire.
INTERNATIONAL FUND FOR IRELAND
For necessary expenses to carry out the provisions
of chapter 4 of part II of the Foreign Assistance Act of
1961, $19,600,000, which shall be available for the United
States contribution to the International Fund for Ireland
and shall be made available in accordance with the provi-
sions of the Anglo-Irish Agreement Support Act of 1986
(Public Law 99–415): Provided, That such amount shall
be expended at the minimum rate necessary to make time-
ly payment for projects and activities: Provided further,
That funds made available under this heading shall re-
main available until September 30, 1998.
ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC
STATES
(a) For necessary expenses to carry out the provisions
of the Foreign Assistance Act of 1961 and the Support
for East European Democracy (SEED) Act of 1989,
$475,000,000, to remain available until September 30,
1998, which shall be available, notwithstanding any other
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provision of law, for economic assistance and for related
programs for Eastern Europe and the Baltic States.
(b) Funds appropriated under this heading or in prior
appropriations Acts that are or have been made available
for an Enterprise Fund may be deposited by such Fund
in interest-bearing accounts prior to the Fund’s disburse-
ment of such funds for program purposes. The Fund may
retain for such program purposes any interest earned on
such deposits without returning such interest to the Treas-
ury of the United States and without further appropria-
tion by the Congress. Funds made available for Enterprise
Funds shall be expended at the minimum rate necessary
to make timely payment for projects and activities.
(c) Funds appropriated under this heading shall be
considered to be economic assistance under the Foreign
Assistance Act of 1961 for purposes of making available
the administrative authorities contained in that Act for
the use of economic assistance.
(d) None of the funds appropriated under this head-
ing may be made available for new housing construction
or repair or reconstruction of existing housing in Bosnia
and Herzegovina unless directly related to the efforts of
United States troops to promote peace in said country.
(e) With regard to funds appropriated or otherwise
made available under this heading for the economic revi-
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talization program in Bosnia and Herzegovina, and local
currencies generated by such funds (including the conver-
sion of funds appropriated under this heading into cur-
rency used by Bosnia and Herzegovina as local currency
and local currency returned or repaid under such pro-
gram)—
(1) the Administrator of the Agency for Inter-
national Development shall provide written approval
for grants and loans prior to the obligation and ex-
penditure of funds for such purposes, and prior to
the use of funds that have been returned or repaid
to any lending facility or grantee; and
(2) the provisions of section 531 of this Act
shall apply.
ASSISTANCE FOR THE NEW INDEPENDENT STATES OF
THE FORMER SOVIET UNION
(a) For necessary expenses to carry out the provisions
of chapter 11 of part I of the Foreign Assistance Act of
1961 and the FREEDOM Support Act, for assistance for
the new independent states of the former Soviet Union
and for related programs, $590,000,000, to remain avail-
able until September 30, 1998: Provided, That the provi-
sions of section 498B(j) of the Foreign Assistance Act of
1961 shall apply to funds appropriated by this paragraph.
(b) None of the funds appropriated under this head-
ing shall be transferred to the Government of Russia—
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(1) unless that Government is making progress
in implementing comprehensive economic reforms
based on market principles, private ownership, nego-
tiating repayment of commercial debt, respect for
commercial contracts, and equitable treatment of
foreign private investment; and
(2) if that Government applies or transfers
United States assistance to any entity for the pur-
pose of expropriating or seizing ownership or control
of assets, investments, or ventures.
(c) Funds may be furnished without regard to sub-
section (b) if the President determines that to do so is
in the national interest.
(d) None of the funds appropriated under this head-
ing shall be made available to any government of the new
independent states of the former Soviet Union if that gov-
ernment directs any action in violation of the territorial
integrity or national sovereignty of any other new inde-
pendent state, such as those violations included in the Hel-
sinki Final Act: Provided, That such funds may be made
available without regard to the restriction in this sub-
section if the President determines and reports to the
Committees on Appropriations that to do so is in the na-
tional security interest of the United States: Provided fur-
ther, That the restriction of this subsection shall not apply
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to the use of such funds for the provision of assistance
for purposes of humanitarian, disaster and refugee relief.
(e) None of the funds appropriated under this head-
ing for the new independent states of the former Soviet
Union shall be made available for any state to enhance
its military capability: Provided, That this restriction does
not apply to demilitarization or nonproliferation programs.
(f) Funds appropriated under this heading shall be
subject to the regular notification procedures of the Com-
mittees on Appropriations.
(g) Funds made available in this Act for assistance
to the new independent states of the former Soviet Union
shall be subject to the provisions of section 117 (relating
to environment and natural resources) of the Foreign As-
sistance Act of 1961.
(h) Funds appropriated under this heading may be
made available for assistance for Mongolia.
(i) Funds made available in this Act for assistance
to the New Independent States of the former Soviet Union
shall be provided to the maximum extent feasible through
the private sector, including small- and medium-size busi-
nesses, entrepreneurs, and others with indigenous private
enterprises in the region, intermediary development orga-
nizations committed to private enterprise, and private vol-
untary organizations: Provided, That grantees and con-
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tractors should, to the maximum extent possible, place in
key staff positions specialists with prior on the ground ex-
pertise in the region of activity and fluency in one of the
local languages.
(j) In issuing new task orders, entering into con-
tracts, or making grants, with funds appropriated under
this heading or in prior appropriations Acts, for projects
or activities that have as one of their primary purposes
the fostering of private sector development, the Coordina-
tor for United States Assistance to the New Independent
States and the implementing agency shall encourage the
participation of and give significant weight to contractors
and grantees who propose investing a significant amount
of their own resources (including volunteer services and
in-kind contributions) in such projects and activities.
(k)(1) None of the funds appropriated under this
heading may be made available for Russia unless the
President determines and certifies in writing to the Com-
mittees on Appropriations that the Government of Russia
has terminated implementation of arrangements to pro-
vide Iran with technical expertise, training, technology, or
equipment necessary to develop a nuclear reactor or relat-
ed nuclear research facilities or programs.
(2) Subparagraph (1) shall not apply if the President
determines and reports to the Committees on Appropria-
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tions that making such funds available is important to the
national security interest of the United States. Any such
determination shall cease to be effective six months after
being made unless the President determines that its con-
tinuation is important to the national security interest of
the United States.
(l) Funds appropriated under this heading or in prior
appropriations Acts that are or have been made available
for an Enterprise Fund may be deposited by such Fund
in interest-bearing accounts prior to the disbursement of
such funds by the Fund for program purposes. The Fund
may retain for such program purposes any interest earned
on such deposits without returning such interest to the
Treasury of the United States and without further appro-
priation by the Congress. Funds made available for Enter-
prise Funds shall be expended at the minimum rate nec-
essary to make timely payment for projects and activities.
(m)(1) Notwithstanding section 907 of the FREE-
DOM Support Act or any other provision of law, non-
governmental organizations and private voluntary organi-
zations shall not be precluded from using facilities or vehi-
cles of the Government of Azerbaijan to provide humani-
tarian assistance to refugees and internally displaced per-
sons in Azerbaijan with funds made available under this
heading, or from using such assistance to make necessary
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repairs to such facilities (such as health clinics and hous-
ing) or vehicles that are used to provide the assistance.
(2) Humanitarian assistance may be provided with
funds made available under this heading to refugees and
internally displaced persons in Azerbaijan only if humani-
tarian assistance is also provided to refugees and inter-
nally displaced persons in Nagorno-Karabagh with funds
made available under this heading, in accordance with
paragraph (3).
(3) Humanitarian assistance may be provided with
funds made available under this heading to refugees and
internally displaced persons in Azerbaijan and Nagorno-
Karabagh only in the proportion that the number of refu-
gees and internally displaced persons in Azerbaijan and
Nagorno-Karabagh, respectively, bears to the total num-
ber of refugees and internally displaced persons in both
Azerbaijan and Nagorno-Karabagh, but in no case more
than $7 to Azerbaijan for every dollar to Nagorno-
Karabagh.
INDEPENDENT AGENCIES
AFRICAN DEVELOPMENT FOUNDATION
For necessary expenses to carry out the provisions
of title V of the International Security and Development
Cooperation Act of 1980, Public Law 96–533, and to
make such contracts and commitments without regard to