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quent to the termination of assistance a democratically
elected government has taken office.
TRANSFERS BETWEEN ACCOUNTS
SEC. 509. None of the funds made available by this
Act may be obligated under an appropriation account to
which they were not appropriated, except for transfers
specifically provided for in this Act, unless the President,
prior to the exercise of any authority contained in the For-
eign Assistance Act of 1961 to transfer funds, consults
with and provides a written policy justification to the
Committees on Appropriations of the House of Represent-
atives and the Senate: Provided, That the exercise of such
authority shall be subject to the regular notification proce-
dures of the Committees on Appropriations.
DEOBLIGATION/REOBLIGATION AUTHORITY
SEC. 510. (a) Amounts certified pursuant to section
1311 of the Supplemental Appropriations Act, 1955, as
having been obligated against appropriations heretofore
made under the authority of the Foreign Assistance Act
of 1961 for the same general purpose as any of the head-
ings under title II of this Act are, if deobligated, hereby
continued available for the same period as the respective
appropriations under such headings or until September
30, 1998, whichever is later, and for the same general pur-
pose, and for countries within the same region as origi-
nally obligated: Provided, That the Appropriations Com-
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mittees of both Houses of the Congress are notified fifteen
days in advance of the reobligation of such funds in ac-
cordance with regular notification procedures of the Com-
mittees on Appropriations.
(b) Obligated balances of funds appropriated to carry
out section 23 of the Arms Export Control Act as of the
end of the fiscal year immediately preceding the current
fiscal year are, if deobligated, hereby continued available
during the current fiscal year for the same purpose under
any authority applicable to such appropriations under this
Act: Provided, That the authority of this subsection may
not be used in fiscal year 1998.
AVAILABILITY OF FUNDS
SEC. 511. No part of any appropriation contained in
this Act shall remain available for obligation after the ex-
piration of the current fiscal year unless expressly so pro-
vided in this Act: Provided, That funds appropriated for
the purposes of chapters 1, 8, and 11 of part I, section
667, and chapter 4 of part II of the Foreign Assistance
Act of 1961, as amended, and funds provided under the
heading ‘‘Assistance for Eastern Europe and the Baltic
States’’, shall remain available until expended if such
funds are initially obligated before the expiration of their
respective periods of availability contained in this Act:
Provided further, That, notwithstanding any other provi-
sion of this Act, any funds made available for the purposes
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of chapter 1 of part I and chapter 4 of part II of the
Foreign Assistance Act of 1961 which are allocated for
cash disbursements in order to address balance of pay-
ments or economic policy reform objectives, shall remain
available until expended: Provided further, That the report
required by section 653(a) of the Foreign Assistance Act
of 1961 shall designate for each country, to the extent
known at the time of submission of such report, those
funds allocated for cash disbursement for balance of pay-
ment and economic policy reform purposes.
LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT
SEC. 512. No part of any appropriation contained in
this Act shall be used to furnish assistance to any country
which is in default during a period in excess of one cal-
endar year in payment to the United States of principal
or interest on any loan made to such country by the Unit-
ed States pursuant to a program for which funds are ap-
propriated under this Act: Provided, That this section and
section 620(q) of the Foreign Assistance Act of 1961 shall
not apply to funds made available in this Act or during
the current fiscal year for Nicaragua and Liberia, and for
any narcotics-related assistance for Colombia, Bolivia, and
Peru authorized by the Foreign Assistance Act of 1961
or the Arms Export Control Act.
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COMMERCE AND TRADE
SEC. 513. (a) None of the funds appropriated or
made available pursuant to this Act for direct assistance
and none of the funds otherwise made available pursuant
to this Act to the Export-Import Bank and the Overseas
Private Investment Corporation shall be obligated or ex-
pended to finance any loan, any assistance or any other
financial commitments for establishing or expanding pro-
duction of any commodity for export by any country other
than the United States, if the commodity is likely to be
in surplus on world markets at the time the resulting pro-
ductive capacity is expected to become operative and if the
assistance will cause substantial injury to United States
producers of the same, similar, or competing commodity:
Provided, That such prohibition shall not apply to the Ex-
port-Import Bank if in the judgment of its Board of Direc-
tors the benefits to industry and employment in the Unit-
ed States are likely to outweigh the injury to United
States producers of the same, similar, or competing com-
modity, and the Chairman of the Board so notifies the
Committees on Appropriations.
(b) None of the funds appropriated by this or any
other Act to carry out chapter 1 of part I of the Foreign
Assistance Act of 1961 shall be available for any testing
or breeding feasibility study, variety improvement or intro-
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duction, consultancy, publication, conference, or training
in connection with the growth or production in a foreign
country of an agricultural commodity for export which
would compete with a similar commodity grown or pro-
duced in the United States: Provided, That this subsection
shall not prohibit—
(1) activities designed to increase food security
in developing countries where such activities will not
have a significant impact in the export of agricul-
tural commodities of the United States; or
(2) research activities intended primarily to
benefit American producers.
SURPLUS COMMODITIES
SEC. 514. The Secretary of the Treasury shall in-
struct the United States Executive Directors of the Inter-
national Bank for Reconstruction and Development, the
International Development Association, the International
Finance Corporation, the Inter-American Development
Bank, the International Monetary Fund, the Asian Devel-
opment Bank, the Inter-American Investment Corpora-
tion, the North American Development Bank, the Euro-
pean Bank for Reconstruction and Development, the Afri-
can Development Bank, and the African Development
Fund to use the voice and vote of the United States to
oppose any assistance by these institutions, using funds
appropriated or made available pursuant to this Act, for
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the production or extraction of any commodity or mineral
for export, if it is in surplus on world markets and if the
assistance will cause substantial injury to United States
producers of the same, similar, or competing commodity.
NOTIFICATION REQUIREMENTS
SEC. 515. For the purposes of providing the Execu-
tive Branch with the necessary administrative flexibility,
none of the funds made available under this Act for ‘‘Child
Survival and Disease Programs Fund’’, ‘‘Development As-
sistance’’, ‘‘International organizations and programs’’,
‘‘Trade and Development Agency’’, ‘‘International narcot-
ics control’’, ‘‘Assistance for Eastern Europe and the Bal-
tic States’’, ‘‘Assistance for the New Independent States
of the Former Soviet Union’’, ‘‘Economic Support Fund’’,
‘‘Peacekeeping operations’’, ‘‘Operating expenses of the
Agency for International Development’’, ‘‘Operating ex-
penses of the Agency for International Development Office
of Inspector General’’, ‘‘Nonproliferation, anti-terrorism,
demining and related programs’’, ‘‘Foreign Military Fi-
nancing Program’’, ‘‘International military education and
training’’, ‘‘Inter-American Foundation’’, ‘‘African Devel-
opment Foundation’’, ‘‘Peace Corps’’, ‘‘Migration and ref-
ugee assistance’’, shall be available for obligation for ac-
tivities, programs, projects, type of materiel assistance,
countries, or other operations not justified or in excess of
the amount justified to the Appropriations Committees for
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obligation under any of these specific headings unless the
Appropriations Committees of both Houses of Congress
are previously notified fifteen days in advance: Provided,
That the President shall not enter into any commitment
of funds appropriated for the purposes of section 23 of
the Arms Export Control Act for the provision of major
defense equipment, other than conventional ammunition,
or other major defense items defined to be aircraft, ships,
missiles, or combat vehicles, not previously justified to
Congress or 20 per centum in excess of the quantities jus-
tified to Congress unless the Committees on Appropria-
tions are notified fifteen days in advance of such commit-
ment: Provided further, That this section shall not apply
to any reprogramming for an activity, program, or project
under chapter 1 of part I of the Foreign Assistance Act
of 1961 of less than 10 per centum of the amount pre-
viously justified to the Congress for obligation for such
activity, program, or project for the current fiscal year:
Provided further, That the requirements of this section or
any similar provision of this Act or any other Act, includ-
ing any prior Act requiring notification in accordance with
the regular notification procedures of the Committees on
Appropriations, may be waived if failure to do so would
pose a substantial risk to human health or welfare: Pro-
vided further, That in case of any such waiver, notification
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to the Congress, or the appropriate congressional commit-
tees, shall be provided as early as practicable, but in no
event later than three days after taking the action to
which such notification requirement was applicable, in the
context of the circumstances necessitating such waiver:
Provided further, That any notification provided pursuant
to such a waiver shall contain an explanation of the emer-
gency circumstances.
Drawdowns made pursuant to section 506(a)(2) of
the Foreign Assistance Act of 1961 shall be subject to the
regular notification procedures of the Committees on Ap-
propriations.
LIMITATION ON AVAILABILITY OF FUNDS FOR
INTERNATIONAL ORGANIZATIONS AND PROGRAMS
SEC. 516. Notwithstanding any other provision of law
or of this Act, none of the funds provided for ‘‘Inter-
national Organizations and Programs’’ shall be available
for the United States proportionate share, in accordance
with section 307(c) of the Foreign Assistance Act of 1961,
for any programs identified in section 307, or for Libya,
Iran, or, at the discretion of the President, Communist
countries listed in section 620(f) of the Foreign Assistance
Act of 1961, as amended: Provided, That, subject to the
regular notification procedures of the Committees on Ap-
propriations, funds appropriated under this Act or any
previously enacted Act making appropriations for foreign
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operations, export financing, and related programs, which
are returned or not made available for organizations and
programs because of the implementation of this section
or any similar provision of law, shall remain available for
obligation through September 30, 1999.
ECONOMIC SUPPORT FUND ASSISTANCE FOR ISRAEL
SEC. 517. The Congress finds that progress on the
peace process in the Middle East is vitally important to
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.
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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-
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
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under this Act may be used to lobby for or against abor-
tion.
AUTHORIZATION FOR POPULATION PLANNING
SEC. 518A. Not to exceed $385,000,000 of the funds
appropriated in title II of this Act may be made available
for population planning activities or other population as-
sistance.
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, Haiti, Libe-
ria, Pakistan, Panama, Peru, Russia, Serbia, Sudan, or
the Democratic Republic of Congo except as provided
through the regular notification procedures of the Com-
mittees on Appropriations.
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
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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.
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 Unit-
ed States Government agencies, agencies of State govern-
ments, institutions of higher learning, and private and vol-
untary 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
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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.
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 ‘‘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 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
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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
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 subject to 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 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.
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(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-
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 procedures 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.
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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.
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
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this Act and any interest earned on such investment shall
be used for the purpose for which the assistance was pro-
vided to that organization.
SEPARATE ACCOUNTS
SEC. 531. (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
part I or chapter 4 of part II of the Foreign Assistance
Act of 1961 under agreements which result in the genera-
tion of local currencies of that country, the Administrator
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 govern-
ment 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, con-
sistent with this section; and
(C) establish by agreement with that govern-
ment the responsibilities of the Agency for Inter-
national Development and that government to mon-
itor and account for deposits into and disbursements
from the separate account.
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(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 chapters 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.
(3) PROGRAMMING ACCOUNTABILITY.—The Agency
for International Development shall take all necessary
steps to ensure that the equivalent of the local currencies
disbursed pursuant to subsection (a)(2)(A) from the sepa-
rate 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 chap-
ters 1 or 10 of part I or chapter 4 of part II (as the case
may be), any unencumbered balances of funds which re-
main in a separate account established pursuant to sub-
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section (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 subsection shall supersede the tenth and eleventh pro-
visos contained under the heading ‘‘Sub-Saharan Africa,
Development Assistance’’ as included in the Foreign Oper-
ations, Export Financing, and Related Programs Appro-
priations 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 assistance is made available to the government of
a foreign country, under chapters 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 assist-
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ance, 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 not-
withstanding 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 Res-
olution 648 (H. Report No. 98–1159).
(3) NOTIFICATION.—At least fifteen days prior to ob-
ligating any such cash transfer or nonproject sector assist-
ance, the President shall submit a notification through the
regular notification procedures of the Committees on Ap-
propriations, which shall include a detailed description of
how the funds proposed to be made available 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 pro-
moted 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 Commit-
tees on Appropriations.
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COMPENSATION FOR UNITED STATES EXECUTIVE
DIRECTORS TO INTERNATIONAL FINANCIAL INSTITUTIONS
SEC. 532. (a) No funds appropriated by this Act may
be made as payment to any international financial institu-
tion while the United States Executive Director to such
institution is compensated by the institution at a rate
which, together with whatever compensation such Director
receives from the United States, is in excess of the rate
provided for an individual occupying a position at level IV
of the Executive Schedule under section 5315 of title 5,
United States Code, or while any alternate United States
Director to such institution is compensated by the institu-
tion at a rate in excess of the rate provided for an individ-
ual occupying a position at level V of the Executive Sched-
ule under section 5316 of title 5, United States Code.
(b) For purposes of this section, ‘‘international finan-
cial institutions’’ are: the International Bank for Recon-
struction and Development, the Inter-American Develop-
ment Bank, the Asian Development Bank, the Asian De-
velopment Fund, the African Development Bank, the Afri-
can Development Fund, the International Monetary Fund,
the North American Development Bank, and the Euro-
pean Bank for Reconstruction and Development.
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COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST
IRAQ
SEC. 533. None of the funds appropriated or other-
wise made available pursuant to this Act to carry out the
Foreign Assistance Act of 1961 (including title IV of
chapter 2 of part I, relating to the Overseas Private In-
vestment Corporation) or the Arms Export Control Act
may be used to provide assistance to any country that is
not in compliance with the United Nations Security Coun-
cil sanctions against Iraq unless the President determines
and so certifies to the Congress that—
(1) such assistance is in the national interest of
the United States;
(2) such assistance will directly benefit the
needy people in that country; or
(3) the assistance to be provided will be human-
itarian assistance for foreign nationals who have fled
Iraq and Kuwait.
COMPETITIVE PRICING FOR SALES OF DEFENSE
ARTICLES
SEC. 534. Direct costs associated with meeting a for-
eign customer’s additional or unique requirements will
continue to be allowable under contracts under section
22(d) of the Arms Export Control Act. Loadings applica-
ble to such direct costs shall be permitted at the same
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rates applicable to procurement of like items purchased
by the Department of Defense for its own use.
EXTENSION OF AUTHORITY TO OBLIGATE FUNDS TO
CLOSE THE SPECIAL DEFENSE ACQUISITION FUND
SEC. 535. Title III of Public Law 103–306 is amend-
ed under the heading ‘‘Special Defense Acquisition Fund’’
by striking ‘‘1998’’ and inserting ‘‘2000’’.
CASH FLOW FINANCING
SEC. 536. For each country that has been approved
for cash flow financing (as defined in section 25(d) of the
Arms Export Control Act, as added by section 112(b) of
Public Law 99–83) under the Foreign Military Financing
Program, any Letter of Offer and Acceptance or other
purchase agreement, or any amendment thereto, for a pro-
curement in excess of $100,000,000 that is to be financed
in whole or in part with funds made available under this
Act shall be submitted through the regular notification
procedures to the Committees on Appropriations.
AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMER-
ICAN
FOUNDATION
AND
THE
AFRICAN
DEVELOP-
MENT FOUNDATION
SEC. 537. Unless expressly provided to the contrary,
provisions of this or any other Act, including provisions
contained in prior Acts authorizing or making appropria-
tions for foreign operations, export financing, and related
programs, shall not be construed to prohibit activities au-
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thorized by or conducted under the Peace Corps Act, the
Inter-American Foundation Act, or the African Develop-
ment Foundation Act. The appropriate agency shall
promptly report to the Committees on Appropriations
whenever it is conducting activities or is proposing to con-
duct activities in a country for which assistance is prohib-
ited.
IMPACT ON JOBS IN THE UNITED STATES
SEC. 538. None of the funds appropriated by this Act
may be obligated or expended to provide—
(a) any financial incentive to a business enter-
prise currently located in the United States for the
purpose of inducing such an enterprise to relocate
outside the United States if such incentive or in-
ducement is likely to reduce the number of employ-
ees of such business enterprise in the United States
because United States production is being replaced
by such enterprise outside the United States;
(b) assistance for the purpose of establishing or
developing in a foreign country any export process-
ing zone or designated area in which the tax, tariff,
labor, environment, and safety laws of that country
do not apply, in part or in whole, to activities car-
ried out within that zone or area, unless the Presi-
dent determines and certifies that such assistance is
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not likely to cause a loss of jobs within the United
States; or
(c) assistance for any project or activity that
contributes to the violation of internationally recog-
nized workers rights, as defined in section 502(a)(4)
of the Trade Act of 1974, of workers in the recipient
country, including any designated zone or area in
that country: Provided, That in recognition that the
application of this subsection should be commensu-
rate with the level of development of the recipient
country and sector, the provisions of this subsection
shall not preclude assistance for the informal sector
in such country, micro and small-scale enterprise,
and smallholder agriculture.
RESTRICTIONS ON THE TERMINATION OF SANCTIONS
AGAINST SERBIA AND MONTENEGRO
SEC. 539. (a) RESTRICTIONS.—Notwithstanding any
other provision of law, no sanction, prohibition, or require-
ment described in section 1511 of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law 103–
160), with respect to Serbia or Montenegro, may cease
to be effective, unless—
(1) the President first submits to the Congress
a certification described in subsection (b); and
(2) the requirements of section 1511 of that
Act are met.
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(b) CERTIFICATION.—A certification described in this
subsection is a certification that—
(1) there is substantial progress toward—
(A) the realization of a separate identity
for Kosova and the right of the people of
Kosova to govern themselves; or
(B) the creation of an international protec-
torate for Kosova;
(2) there is substantial improvement in the
human rights situation in Kosova;
(3) international human rights observers are al-
lowed to return to Kosova; and
(4) the elected government of Kosova is per-
mitted to meet and carry out its legitimate mandate
as elected representatives of the people of Kosova.
(c) WAIVER AUTHORITY.—The President may waive
the application in whole or in part, of subsection (a) if
the President certifies to the Congress that the President
has determined that the waiver is necessary to meet emer-
gency humanitarian needs or to achieve a negotiated set-
tlement of the conflict in Bosnia and Herzegovina that is
acceptable to the parties.
SPECIAL AUTHORITIES
SEC. 540. (a) Funds appropriated in title II of this
Act that are made available for Afghanistan, Lebanon,
and Cambodia, and for victims of war, displaced children,
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displaced Burmese, humanitarian assistance for Romania,
and humanitarian assistance for the peoples of Bosnia and
Herzegovina, Croatia, and Kosova, may be made available
notwithstanding any other provision of law: Provided,
That any such funds that are made available for Cam-
bodia shall be subject to the provisions of section 531(e)
of the Foreign Assistance Act of 1961 and section 906
of the International Security and Development Coopera-
tion Act of 1985.
(b) Funds appropriated by this Act to carry out the
provisions of sections 103 through 106 of the Foreign As-
sistance Act of 1961 may be used, notwithstanding any
other provision of law, for the purpose of supporting tropi-
cal forestry and energy programs aimed at reducing emis-
sions of greenhouse gases, and for the purpose of support-
ing biodiversity conservation activities: Provided, That
such assistance shall be subject to sections 116, 502B, and
620A of the Foreign Assistance Act of 1961.
(c) The Agency for International Development may
employ personal services contractors, notwithstanding any
other provision of law, for the purpose of administering
programs for the West Bank and Gaza.
POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT
OF ISRAEL
SEC. 541. It is the sense of the Congress that—
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(1) the Arab League countries should imme-
diately and publicly renounce the primary boycott of
Israel and the secondary and tertiary boycott of
American firms that have commercial ties with Is-
rael; and
(2) the decision by the Arab League in 1997 to
reinstate the boycott against Israel was deeply trou-
bling and disappointing; and
(3) the Arab League should immediately re-
scind its decision on the boycott and its members
should develop normal relations with their neighbor
Israel; and
(4) the President should—
(A) take more concrete steps to encourage
vigorously Arab League countries to renounce
publicly the primary boycotts of Israel and the
secondary and tertiary boycotts of American
firms that have commercial relations with Israel
as a confidence-building measure;
(B) take into consideration the participa-
tion of any recipient country in the primary
boycott of Israel and the secondary and tertiary
boycotts of American firms that have commer-
cial relations with Israel when determining
whether to sell weapons to said country;
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(C) report to Congress on the specific
steps being taken by the President to bring
about a public renunciation of the Arab primary
boycott of Israel and the secondary and tertiary
boycotts of American firms that have commer-
cial relations with Israel and to expand the
process of normalizing ties between Arab
League countries and Israel; and
(D) encourage the allies and trading part-
ners of the United States to enact laws prohib-
iting businesses from complying with the boy-
cott and penalizing businesses that do comply.
ANTI-NARCOTICS ACTIVITIES
SEC. 542. (a) Of the funds appropriated or otherwise
made available by this Act for ‘‘Economic Support Fund’’,
assistance may be provided to strengthen the administra-
tion of justice in countries in Latin America and the Car-
ibbean and in other regions consistent with the provisions
of section 534(b) of the Foreign Assistance Act of 1961,
except that programs to enhance protection of participants
in judicial cases may be conducted notwithstanding section
660 of that Act.
(b) Funds made available pursuant to this section
may be made available notwithstanding section 534(c) and
the second and third sentences of section 534(e) of the
Foreign Assistance Act of 1961. Funds made available
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pursuant to subsection (a) for Bolivia, Colombia and Peru
may be made available notwithstanding section 534(c) and
the second sentence of section 534(e) of the Foreign As-
sistance Act of 1961.
ELIGIBILITY FOR ASSISTANCE
SEC. 543. (a) ASSISTANCE THROUGH NONGOVERN-
MENTAL ORGANIZATIONS.—Restrictions contained in this
or any other Act with respect to assistance for a country
shall not be construed to restrict assistance in support of
programs of nongovernmental organizations from funds
appropriated by this Act to carry out the provisions of
chapters 1 and 10 and 11 of part I, and chapter 4 of
part II, of the Foreign Assistance Act of 1961: Provided,
That the President shall take into consideration, in any
case in which a restriction on assistance would be applica-
ble but for this subsection, whether assistance in support
of programs of nongovernmental organizations is in the
national interest of the United States: Provided further,
That before using the authority of this subsection to fur-
nish assistance in support of programs of nongovern-
mental organizations, the President shall notify the Com-
mittees on Appropriations under the regular notification
procedures of those committees, including a description of
the program to be assisted, the assistance to be provided,
and the reasons for furnishing such assistance: Provided
further, That nothing in this subsection shall be construed