gross violations of internationally recognized human
rights;
(5) is not ineligible for assistance because of the
application of section 527 of the Foreign Relations
Authorization Act, Fiscal Years 1994 and 1995; and
(6) has not been designated, in the most recent
Department of State ‘Trafficking in Persons Re-
port’, as a ‘Tier 3’ nation pursuant to the Victims
of Trafficking and Violence Protection Act of 2000
(Public Law 106–386) for its failure to cooperate on
international trafficking in persons prevention ef-
forts.
(d) ADDITIONAL REQUIREMENTS RELATING TO AC-
TIONS TO PREVENT HIV/AIDS AND POVERTY.—In addi-
tion to the requirements of subsection (c), the authority
provided by subsection (a) may be exercised only with re-
spect to an eligible country if the country has agreed
that—
(1) the financial benefits of debt reduction will
be applied to programs to combat HIV/AIDS and
poverty, in particular through concrete measures to
improve basic services in health, education, nutri-
tion, and other development priorities, and to re-
dress environmental degradation;
(2) the financial benefits of debt reduction are
in addition to the total spending of the country’s
government on poverty reduction for the previous
year, or the average total of such expenditures for
the previous 3 years, whichever is greater;
(3) the eligible country will implement trans-
parent and participatory policy making and budget
procedures, good governance, and effective anti-cor-
ruption measures; and
(4) the eligible country will broaden public par-
ticipation and popular understanding of the prin-
ciples and goals of poverty reduction.
(e) AVAILABILITY OF FUNDS.—The authority pro-
vided by subsection (a) may be used only with regard to
funds appropriated by an Act making appropriations for
foreign operations, export financing, and related programs
under the heading ‘‘Debt Restructuring’’.
(f) CERTAIN PROHIBITIONS INAPPLICABLE.—A re-
duction of debt pursuant to subsection (a) shall not be
considered assistance for purposes of any provision of law
limiting assistance to a country. The authority provided
by subsection (a) may be exercised notwithstanding sec-
tion 620(r) of the Foreign Assistance Act of 1961 or sec-
tion 321 of the International Development and Food As-
sistance Act of 1975.
SEC. 5. MODIFICATION OF DETERMINATION OF COUNTRIES
SUPPORTING TERRORISM UNDER CERTAIN
INTERNATIONAL AFFAIRS LAWS.
(a) FOREIGN ASSISTANCE ACT OF 1961.—
(1) GENERAL PROHIBITION ON ASSISTANCE.—
Section 620A(a) of the Foreign Assistance Act of
1961 (22 U.S.C. 2371(a)) is amended by inserting
after ‘‘international terrorism’’ the following: ‘‘or
has failed to cooperate with the United States on ef-
forts to combat international terrorism’’.
(2) ENTERPRISE FOR THE AMERICAS INITIA-
TIVE.—Section 703(a)(2) of such Act (22 U.S.C.
2430b(a)(2)) is amended by inserting after ‘‘inter-
national terrorism’’ the following: ‘‘and has cooper-
ated with the United States on efforts to combat
international terrorism’’.
(b) ARMS EXPORT CONTROL ACT.—
(1) 
GENERAL
PROHIBITION
ON
TRANS-
ACTIONS.—Section 40(d) of the Arms Export Con-
trol Act (22 U.S.C. 2780(d)) is amended in the first
sentence by inserting after ‘‘international terrorism’’
the following: ‘‘or has failed to cooperate with the
United States on efforts to combat international ter-
rorism’’.
(2) TRANSFER
OF
MISSILE
EQUIPMENT
OR
TECHNOLOGY BY UNITED STATES PERSON.—Section
72(c) of such Act (22 U.S.C. 2797a(c)) is amended
by inserting after ‘‘international terrorism’’ the fol-
lowing: ‘‘or has failed to cooperate with the United
States on efforts to combat international terrorism’’.
(3) TRANSFER
OF
MISSILE
EQUIPMENT
OR
TECHNOLOGY BY FOREIGN PERSON.—Section 73(f)
of such Act (22 U.S.C. 2797b(f)) is amended by in-
serting after ‘‘international terrorism’’ the following:
‘‘or has failed to cooperate with the United States
on efforts to combat international terrorism’’.
(4) TRANSFER OF CHEMICAL OR BIOLOGICAL
WEAPONS
BY
FOREIGN
PERSON.—Section
81(a)(2)(B) of such Act (22 U.S.C. 2798(a)(2)(B))
is amended by inserting after ‘‘international ter-
rorism’’ the following: ‘‘or has failed to cooperate
with the United States on efforts to combat inter-
national terrorism’’.
(c) EXPORT ADMINISTRATION ACT OF 1979.—
(1) 
GENERAL
REQUIREMENTS.—Section
6(j)(1)(A) of the Export Administration Act of 1979
(50 U.S.C. app. 2405(j)(1)(A)) is amended—
(A) in subsection (j)(1)(A), by inserting
after ‘‘international terrorism’’ the following:
‘‘or has failed to cooperate with the United
States on efforts to combat international ter-
rorism’’; and
(B) in subsection (l)(3)(B), by inserting
after ‘‘international terrorism’’ the following:
‘‘or to have failed to cooperate with the United
States on efforts to combat international ter-
rorism’’.
(2) TRANSFER OF CHEMICAL OR BIOLOGICAL
WEAPONS
BY
FOREIGN
PERSON.—Section
11C(a)(2)(B) 
of 
such 
Act 
(50 
U.S.C. 
app.
2410c(a)(2)(B)) is amended by inserting after
‘‘international terrorism’’ the following: ‘‘or has
failed to cooperate with the United States on efforts
to combat international terrorism’’.
Æ