HR 2863 IH
United States security interests in the region. The Con-
gress recognizes that, in fulfilling its obligations under the
Treaty of Peace Between the Arab Republic of Egypt and
the State of Israel, done at Washington on March 26,
1979, Israel incurred severe economic burdens. Further-
more, the Congress recognizes that an economically and
militarily secure Israel serves the security interests of the
United States, for a secure Israel is an Israel which has
the incentive and confidence to continue pursuing the
peace process. Therefore, the Congress declares that, sub-
ject to the availability of appropriations, it is the policy
and the intention of the United States that the funds pro-
vided in annual appropriations for the Economic Support
Fund which are allocated to Israel shall not be less than
the annual debt repayment (interest and principal) from
Israel to the United States Government in recognition that
such a principle serves United States interests in the re-
gion.
PROHIBITION ON FUNDING FOR ABORTIONS AND
INVOLUNTARY STERILIZATION
SEC. 518. 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 performance of abor-
tions as a method of family planning or to motivate or
coerce any person to practice abortions. None of the funds
made available to carry out part I of the Foreign Assist-
HR 2863 IH
ance Act of 1961, as amended, may be used to pay for
the performance 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 biomedical research which relates in whole or in
part, to methods of, or the performance of, abortions or
involuntary sterilization 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 abortions and involuntary steri-
lizations: Provided, That none of the funds made available
under this Act may be used to lobby for or against abor-
tion.
REPORTING REQUIREMENT
SEC. 519. The President shall submit to the Commit-
tees on Appropriations the reports required by section
25(a)(1) of the Arms Export Control Act.
SPECIAL NOTIFICATION REQUIREMENTS
SEC. 520. None of the funds appropriated in this Act
shall be obligated or expended for Colombia, Dominican
Republic, Guatemala, Haiti, Liberia, Nicaragua, Peru,
HR 2863 IH
Russia, Sudan, or Zaire except as provided through the
regular notification procedures of the Committees on Ap-
propriations: Provided, That this section shall not apply
to funds appropriated by this Act to carry out the provi-
sions of chapter 1 of part I of the Foreign Assistance Act
of 1961 that are made available for Nicaragua.
DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY
SEC. 521. For the purpose of this Act, ‘‘program,
project, and activity’’ shall be defined at the Appropria-
tions Act account level and shall include all Appropriations
and Authorizations Acts earmarks, ceilings, and limita-
tions 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 pro-
gram level funding within each such account; for the devel-
opment assistance accounts of the Agency for Inter-
national Development ‘‘program, project, and activity’’
shall also be considered to include central program level
funding, either as (1) justified to the Congress, or (2) allo-
cated by the executive branch in accordance with a report,
to be provided to the Committees on Appropriations within
thirty days of enactment of this Act, as required by section
653(a) of the Foreign Assistance Act of 1961.
HR 2863 IH
CHILD SURVIVAL AND AIDS ACTIVITIES
SEC. 522. Up to $8,000,000 of the funds made avail-
able by this Act for assistance for family planning, health,
child survival, and AIDS, may be used to reimburse
United States Government agencies, agencies of State gov-
ernments, institutions of higher learning, and private and
voluntary organizations for the full cost of individuals (in-
cluding for the personal services of such individuals) de-
tailed or assigned to, or contracted by, as the case may
be, the Agency for International Development for the pur-
pose of carrying out family planning activities, child sur-
vival activities and activities relating to research on, and
the treatment and control of, acquired immune deficiency
syndrome in developing countries: 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 available notwithstanding any pro-
vision of law that restricts assistance 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.
HR 2863 IH
PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN
COUNTRIES
SEC. 523. None of the funds appropriated or other-
wise 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 Peo-
ple’s Republic of China, unless the President of the United
States certifies that the withholding of these funds is con-
trary 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 ‘‘1995’’ and inserting in
lieu thereof ‘‘1996’’.
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 Act of 1961, the Department of De-
fense 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: Pro-
vided, 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 accordance with the regular notification
procedures of such Committees: Provided further, That
HR 2863 IH
such Committees shall also be informed of the original ac-
quisition 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 Depart-
ment Basic Authorities Act of 1956.
OPPOSITION TO ASSISTANCE TO TERRORIST COUNTRIES
BY INTERNATIONAL FINANCIAL INSTITUTIONS
SEC. 527. (a) INSTRUCTIONS FOR UNITED STATES
EXECUTIVE DIRECTORS.—The Secretary of the Treasury
shall instruct the United States Executive Director of each
international financial institution designated in subsection
(b), and the Administrator of the Agency for International
Development shall instruct the United States Executive
Director of the International Fund for Agriculture Devel-
opment, to use the voice and vote of the United States
to oppose any loan or other use of the funds of the respec-
tive institution to or for a country for which the Secretary
of State has made a determination under section 6(j) of
the Export Administration Act of 1979.
(b) DEFINITION.—For purposes of this section, the
term ‘‘international financial institution’’ includes—
(1) the International Bank for Reconstruction
and Development, the International Development
HR 2863 IH
Association, and the International Monetary Fund;
and
(2) wherever applicable, the Inter-American De-
velopment Bank, the Asian Development Bank, the
African Development Bank, the African Develop-
ment Fund, and the European Bank for Reconstruc-
tion and Development.
PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST
COUNTRIES
SEC. 527A. (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 enact-
ment of this Act, shall not be made available to any coun-
try 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 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
Federal Register and, at least fifteen days before the waiv-
er takes effect, shall notify the Committees on Appropria-
tions of the waiver (including the justification for the waiv-
HR 2863 IH
er) 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 requirements
of the Committees on Appropriations, the authority of sec-
tion 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 in-
cluding Major Defense Equipment (other than helicopters
and other types of aircraft having possible civilian applica-
tion), if the President determines that there are compel-
ling 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. 528A. 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 oppor-
tunity to bid for insurance when such insurance is nec-
essary or appropriate.
HR 2863 IH
STINGERS IN THE PERSIAN GULF REGION
SEC. 529. Except as provided in section 581 of the
Foreign Operations, Export Financing, and Related Pro-
grams 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 Ex-
port Control Act or chapter 2 of part II of the Foreign
Assistance Act of 1961.
DEBT-FOR-DEVELOPMENT
SEC. 530. In order to enhance the continued partici-
pation of nongovernmental organizations in economic as-
sistance activities under the Foreign Assistance Act of
1961, including endowments, debt-for-development and
debt-for-nature exchanges, a nongovernmental organiza-
tion 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 may
be used for the purpose for which the assistance was pro-
vided to that organization.
HR 2863 IH
COMPETITIVE PRICING FOR SALES OF DEFENSE
ARTICLES
SEC. 531A. (a) COSTING BASIS.—Section 22 of the
Arms Export Control Act (22 U.S.C. 2762) is amended
by adding at the end the following:
‘‘(d) COMPETITIVE
PRICING.—Procurement con-
tracts made in implementation of sales under this section
for defense articles and defense services wholly paid for
from funds made available on a nonrepayable basis shall
be priced on the same costing basis with regard to profit,
overhead, independent research and development, bid and
proposal, and other costing elements, as is applicable to
procurements of like items purchased by the Department
of Defense for its own use.’’.
(b) EFFECTIVE DATE AND IMPLEMENTING REGULA-
TIONS.—Section 22(d) of the Arms Export Control Act,
as added by subsection (a)—
(1) shall take effect on the 60th day following
the date of the enactment of this Act;
(2) shall be applicable only to contracts made in
implementation of sales made after such effective
date; and
(3) shall be implemented by revised procure-
ment regulations, which shall be issued prior to such
effective date.
HR 2863 IH
(c) DIRECT COSTS ALLOWABLE.—Direct costs asso-
ciated with meeting a foreign customer’s additional or
unique requirements will continue to be allowable under
such contracts. Loadings applicable to such direct costs
shall be permitted at the same rates applicable to procure-
ment of like items purchased by the Department of De-
fense for its own use.
STOCKPILES OF DEFENSE ARTICLES
SEC. 531B. (a) LIMITATION ON VALUE OF ADDI-
TIONS.—Section 514(b)(1) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2321h(b)(1)) is amended by inserting
‘‘or in the implementation of agreements with Israel’’ after
‘‘North Atlantic Treaty Organization’’.
(b) ADDITIONS IN FISCAL YEARS 1996 AND 1997.—
Section 514(b)(2) of such Act (22 U.S.C. 2321h(b)(2))
is amended to read as follows:
‘‘(2)(A) The value of such additions to stockpiles of
defense articles in foreign countries shall not exceed
$50,000,000 for each of the fiscal years 1996 and 1997.
‘‘(B) Of the amount specified in subparagraph (A)
for each of the fiscal years 1996 and 1997, not more than
$40,000,000 may be made available for stockpiles in the
Republic of Korea and not more than $10,000,000 may
be made available for stockpiles in Thailand.’’.
HR 2863 IH
(c) LOCATION
OF STOCKPILES
OF DEFENSE AU-
THORITIES.—Section 514(c) of such Act (22 U.S.C.
2321h(c)) is amended to read as follows:
‘‘(c) LOCATION OF STOCKPILES OF DEFENSE ARTI-
CLES.—
‘‘(1) LIMITATION.—Except as provided in para-
graph (2), no stockpile of defense articles may be lo-
cated outside the boundaries of a United States mili-
tary base or a military base used primarily by the
United States.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
apply with respect to stockpiles of defense articles
located in the Republic of Korea, Thailand, any
country that is a member of the North Atlantic
Treaty Organization, any country that is a major
non-NATO ally, or any other country the President
may designate. At least 15 days before designating
a country pursuant to the last clause of the preced-
ing sentence, the President shall notify the congres-
sional committees specified in section 634A(a) in ac-
cordance 
with 
the 
procedures 
applicable 
to
reprogramming notifications under that section.’’.
SEPARATE ACCOUNTS
SEC. 532. (a) SEPARATE ACCOUNTS
FOR LOCAL
CURRENCIES.—(1) If assistance is furnished to the gov-
ernment of a foreign country under chapters 1 and 10 of