foreign governments that the President has determined
have provided economic assistance to or engaged in
nonmarket-based trade with the Government of Cuba in
the preceding fiscal year.
‘‘(4) For purposes of this subsection—
‘‘(A) the term ‘appropriate congressional com-
mittees’ means the Committee on International Re-
lations and the Committee on Appropriations of the
House of Representatives and the Committee on
Foreign Relations and the Committee on Appropria-
tions of the Senate;
‘‘(B) the term ‘humanitarian assistance’ means
food (including the monetization of food), clothing,
medicine, and medical supplies; and
‘‘(C) the term ‘nonmarket-based trade’ includes
exports, imports, exchanges, or other trade arrange-
ments under which goods or services are provided on
terms more favorable than those generally available
in applicable markets or for comparable commod-
ities, including—
‘‘(i) exports to the Government of Cuba on
terms that involve a grant, concessional price,
guaranty, insurance, or subsidy;
‘‘(ii) imports from the Government of Cuba
at preferential tariff rates; and
‘‘(iii) exchange arrangements that include
advance delivery of commodities, arrangements
in which the Government of Cuba is not held
accountable for unfulfilled exchange contracts,
and arrangements under which such Govern-
ment does not pay appropriate transportation,
insurance, or finance costs.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the prohibition on assistance to a foreign
government contained in section 620(w) of the For-
eign Assistance Act of 1961, as added by subsection
(a), shall apply only with respect to assistance pro-
vided in fiscal years beginning on or after the date
of the enactment of this Act.
(2) EXCEPTION.—In the case of the fiscal year
in which this Act is enacted, such prohibition shall
apply with respect to the obligation or expenditure
of assistance on or after the date of the enactment
of this Act.
SEC. 3302. ASSISTANCE FOR NICARAGUA.
(a) RESTRICTIONS.—Amounts made available for fis-
cal years 1996 and 1997 for assistance under chapter 1
of part I of the Foreign Assistance Act of 1961 (22 U.S.C.
2151 et seq.; relating to development assistance) or chap-
ter 4 of part II of such Act (22 U.S.C. 2346 et seq.; relat-
ing to the economic support fund), including any unobli-
gated balances of prior appropriations, may only be made
available to the Government of Nicaragua if the Secretary
of State, in consultation with the Secretary of Defense and
the Director of the Central Intelligence, determines and
certifies to the appropriate congressional committees
that—
(1) a full and independent investigation has
been completed of the weapons caches discovered
after the May 23, 1993, Santa Rosa arms cache ex-
plosion, including an investigation of passports, iden-
tity papers, and other documents found at weapons
sites indicating the existence of a terrorist or kid-
napping ring and that the terrorist network was not
involved with the February 1993 World Trade Cen-
ter bombing;
(2) all individuals, including government offi-
cials and members of the armed forces or security
forces of Nicaragua, identified by the President as
part of a terrorist or kidnapping ring, have been
prosecuted;
(3) Nicaragua has met the requirements set
forth in section 527 of the Foreign Relations Au-
thorization Act, Fiscal Years 1994 and 1995 (relat-
ing to expropriation of United States property);
(4) the timely implementation of all rec-
ommendations made by the Tripartite Commission
with respect to individuals responsible for assassina-
tions has been made, including the immediate sus-
pension of all individuals from the Sandinista Army
and security forces who were named in such rec-
ommendations, and the expeditious prosecution of
such individuals;
(5) all individuals implicated in the murders of
Jean Paul Genie, Arges Sequeira, and Enrique
Bermu´dez have been removed from the military and
security forces of Nicaragua, and judicial proceed-
ings against these individuals have been completed;
(6) specific changes have been implemented
which have resulted in verifiable civilian control over
the Sandinista military, security forces, and police;
and
(7) there have been genuine, effective, and con-
crete reforms in the Nicaraguan judicial system.
(b) CONTENTS OF CERTIFICATION.—
(1) IN GENERAL.—A certification made pursu-
ant to subsection (a) shall include a detailed ac-
counting of all evidence in support of the determina-
tions listed in paragraphs (1) through (7) of such
subsection.
(2) FORM.—A certification made pursuant to
subsection (a) shall be submitted in unclassified
form, and, to the extent necessary, classified form.
(c) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—For purposes of this section, the term ‘‘appro-
priate congressional committees’’ means the Committee on
International Relations and the Committee on Appropria-
tions of the House of Representatives and the Committee
on Foreign Relations and the Committee on Appropria-
tions of the Senate.
SEC. 3303. ELIGIBILITY OF PANAMA UNDER ARMS EXPORT
CONTROL ACT.
The Government of the Republic of Panama shall be
eligible to purchase defense articles and defense services
under the Arms Export Control Act (22 U.S.C. 2751 et
seq.), except as otherwise specifically provided by law.
SEC. 3304. FUTURE OF THE UNITED STATES MILITARY
PRESENCE IN PANAMA.
(a) FINDINGS.—The Congress makes the following
findings:
(1) The Panama Canal is a vital strategic asset
to the United States, its allies, and the world.
(2) The Treaty on the Permanent Neutrality
and Operation of the Panama Canal signed on Sep-
tember 7, 1977, provides that Panama and the
United States have the responsibility to assure that
the Panama Canal will remain open and secure.
(3) Such Treaty also provides that each of the
two countries shall, in accordance with their respec-
tive constitutional processes, defend the Canal
against any threat to the regime of neutrality, and
consequently shall have the right to act against any
aggression or threat directed against the Canal or
against the peaceful transit of vessels through the
Canal.
(4) The United States instrument of ratifica-
tion of such Treaty includes specific language that
the two countries should consider negotiating future
arrangements or agreements to maintain military
forces necessary to fulfill the responsibility of the
two countries of maintaining the neutrality of the
Canal after 1999.
(5) The Government of Panama, in the bilateral
Protocol of Exchange of instruments of ratification,
expressly ‘‘agreed upon’’ such arrangements or
agreements.
(6) The United States Navy depends upon the
Panama Canal for rapid transit in times of emer-
gency, as demonstrated during World War II, the
Korean War, the Vietnam conflict, the Cuban Mis-
sile Crisis, and the Persian Gulf conflict.
(7) Drug trafficking and money laundering
have proliferated in the Western Hemisphere since
the Treaty on the Permanent Neutrality and Oper-
ation of the Panama Canal was signed on September
7, 1977, and such trafficking and laundering poses
a grave threat to peace and security in the region.
(8) Certain facilities now utilized by the United
States Armed Forces in Panama are critical to com-
bat the trade in illegal drugs.
(9) The United States and Panama share com-
mon policy goals such as strengthening democracy,
expanding economic trade, and combating illegal
narcotics throughout Latin America.
(10) The Government of Panama has dissolved
its military forces and has maintained only a civilian
police organization to defend the Panama Canal
against aggression.
(11) Certain public opinion polls in Panama
suggest that many Panamanians desire a continued
United States military presence in Panama.
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that—
(1) the President should negotiate a new base
rights agreement with the Government of Panama—
(A) to allow the stationing of United
States Armed Forces in Panama beyond De-
cember 31, 1999; and
(B) to ensure that the United States will
be able to act appropriately, consistent with the
Panama Canal Treaty, the Treaty Concerning
the Permanent Neutrality and Operation of the
Panama Canal, and the resolutions of ratifica-
tion thereto, for the purpose of assuring that
the Panama Canal shall remain open, neutral,
secure, and accessible; and
(2) the President should consult with the Con-
gress throughout the negotiations described in para-
graph (1).
SEC. 3305. PEACE AND STABILITY IN THE SOUTH CHINA
SEA.
(a) FINDINGS.—The Congress finds the following:
(1) The South China Sea is a critically impor-
tant waterway through which 25 percent of the
world’s ocean freight and 70 percent of Japan’s en-
ergy supplies transit.
(2) The South China Sea serves as a crucial sea
lane for United States Navy ships moving between
the Pacific and Indian Oceans, particularly in time
of emergency.
(3) There are a number of competing claims to
territory in the South China Sea.
(4) The 1992 Manila Declaration adhered to by
the Association of South East Asian Nations, the
Socialist Republic of Vietnam, and the People’s Re-
public of China calls for all claimants to territory in
the South China Sea to resolve questions of bound-
aries through peaceful negotiations.
(5) The legislature of the People’s Republic of
China has declared the entire South China Sea to be
Chinese territorial waters.
(6) The armed forces of the People’s Republic
of China have asserted China’s claim to the South
China Sea through the kidnapping of citizens of the
Republic of the Philippines and the construction of
military bases on territory claimed by the Phil-
ippines.
(7) These acts of aggression committed by the
armed forces of the People’s Republic of China
against citizens of the Philippines are contrary to
both international law and to peace and stability in
East Asia.
(b) POLICY DECLARATIONS.—The Congress—
(1) declares the right of free passage through
the South China Sea to be vital to the national secu-
rity interests of the United States, its friends, and
allies;
(2) 
declares 
that 
any 
attempt 
by 
a
nondemocratic power to assert, through the use of
force or intimidation, its claims to territory in the
South China Sea to be a matter of grave concern to
the United States;
(3) calls upon the Government of the People’s
Republic of China to adhere faithfully to its commit-
ment under the Manila Declaration of 1992; and
(4) calls upon the President to review the de-
fense needs of democratic countries with claims to
territory in the South China Sea.
SEC. 3306. ASSISTANCE FOR ZAIRE.
(a) SECURITY ASSISTANCE.—Assistance may not be
provided for the Government of Zaire for each of the fiscal
years 1996 and 1997—
(1) under chapter 4 of part II of the Foreign
Assistance Act of 1961 (22 U.S.C. 2346 et seq.; re-
lating to the economic support fund);
(2) under chapter 5 of part II of that Act (22
U.S.C. 2347 et seq.; relating to international mili-
tary education and training); or
(3) from the ‘‘Foreign Military Financing Pro-
gram’’ account under section 23 of the Arms Export
Control Act (22 U.S.C. 2763).
(b) DEVELOPMENT ASSISTANCE.—Assistance under
chapter 1 of part I of the Foreign Assistance Act of 1961
(22 U.S.C. 2151 et seq.; relating to development assist-
ance) or chapter 10 of such part (22 U.S.C. 2293 et seq.;
relating to the Development Fund for Africa) for each of
the fiscal years 1996 and 1997 shall not be provided to
the Government of Zaire.
TITLE 
XXXIV—SPECIAL 
AU-
THORITIES AND OTHER PRO-
VISIONS
CHAPTER 1—SPECIAL AUTHORITIES
SEC. 3401. ENHANCED TRANSFER AUTHORITY.
Section 610 of the Foreign Assistance Act of 1961
(22 U.S.C. 2360) is amended to read as follows:
‘‘SEC. 610. TRANSFER BETWEEN ACCOUNTS.
‘‘(a) GENERAL AUTHORITY.—Whenever the Presi-
dent determines it to be necessary for the purposes of this
Act or the Arms Export Control Act (22 U.S.C. 2751 et
seq.), not to exceed 20 percent of the funds made available
to carry out any provision of this Act (except funds made
available pursuant to title IV of chapter 2 of part I) or
section 23 of the Arms Export Control Act (22 U.S.C.
2763)—
‘‘(1) may be transferred to, and consolidated
with, the funds in any other account or fund avail-
able to carry out any provision of this Act; and
‘‘(2) may be used for any purpose for which
funds in that account or fund may be used.
‘‘(b) LIMITATION ON AMOUNT OF INCREASE.—The
total amount in the account or fund for the benefit of
which transfer is made under subsection (a) during any
fiscal year may not be increased by more than 20 percent
of the amount of funds otherwise made available.
‘‘(c) NOTIFICATION.—The President shall notify in
writing the congressional committees specified in section
634A at least fifteen days in advance of each such transfer
between accounts in accordance with procedures applicable
to reprogramming notifications under such section.’’.
SEC. 3402. AUTHORITY TO MEET UNANTICIPATED CONTIN-
GENCIES.
(a) IN GENERAL.—Chapter 1 of part III of the For-
eign Assistance Act of 1961 is amended by inserting after
section 610 (22 U.S.C. 2360) the following new section:
‘‘SEC. 610A. AUTHORITY TO MEET UNANTICIPATED CONTIN-
GENCIES.
‘‘(a) AUTHORITY.—
‘‘(1) IN GENERAL.—In order to provide for any
unanticipated contingency in the programs, projects,
or activities for which assistance is provided under
this Act, the President is authorized to use funds
made available to carry out any provision of this Act
for the purpose of providing assistance authorized by
any other provision of this Act in accordance with
the provisions applicable to the furnishing of such
assistance.
‘‘(2) LIMITATION.—The authority of paragraph
(1) may not be used to authorize the use of more
than $40,000,000 in any fiscal year.
‘‘(b) SUPERSEDES OTHER LAWS.—Funds authorized
to be appropriated under this section are authorized to
be made available notwithstanding any other provision of
law.
‘‘(c) NOTIFICATION OF CONGRESS.—
‘‘(1) NOTIFICATION.—Except as provided in
paragraph (2), the President shall notify the con-
gressional committees specified in section 634A(a) at
least 15 days before obligating any funds under this
section in accordance with the procedures applicable
to 
reprogramming 
notifications 
under 
section
634A(a).
‘‘(2) EXCEPTION.—The President may waive
the requirement contained in paragraph (1) if the
President determines that complying with such re-
quirement would pose a substantial risk to human
health or welfare. If the President exercises the
waiver under the preceding sentence, the President
shall notify the congressional committees specified in
section 634A(a) as early as practicable, but in no
event later than 3 days after the date on which the
President took the action to which such notification
requirement was applicable.’’.
(b) REPEAL.—Chapter 5 of part I of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2261; relating to contin-
gencies) is hereby repealed.
SEC. 3403. SPECIAL WAIVER AUTHORITY.
Section 614 of the Foreign Assistance Act of 1961
(22 U.S.C. 2364) is amended to read as follows:
‘‘SEC. 614. SPECIAL WAIVER AUTHORITY.
‘‘(a) AUTHORITY.—The President may provide as-
sistance and make loans under the provisions of law de-
scribed in subsection (b), notwithstanding any other provi-
sion of law, if the President determines that to do so is
vital to the national interests of the United States.
‘‘(b) LAWS WHICH MAY BE WAIVED.—The provi-
sions of law described in this subsection are—
‘‘(1) this Act;
‘‘(2) the Arms Export Control Act (22 U.S.C.
2751 et seq.);
‘‘(3) any provision of law authorizing the provi-
sion of assistance to foreign countries or making ap-
propriations for such assistance;
‘‘(4) any other provision of law that restricts
the authority to provide assistance or make loans
under a provision of law described in paragraph (1),
(2), or (3).
‘‘(c) CONSULTATION WITH CONGRESS.—Before exer-
cising the authority under subsection (a), the President
shall consult with, and shall provide a written policy jus-
tification to the Committee on International Relations and
the Committee on Appropriations of the House of Rep-
resentatives and the Committee on Foreign Relations and
the Committee on Appropriations of the Senate.
‘‘(d) NOTIFICATION TO CONGRESS.—A determination
under subsection (a) shall be effective only if the President
notifies the congressional committees specified in sub-
section (c) in writing of that determination.
‘‘(e) ANNUAL CEILINGS.—
‘‘(1) IN GENERAL.—The authority of this sec-
tion may not be used in any fiscal year to author-
ize—
‘‘(A) more than $750,000,000 in sales or
leases to be made under the Arms Export Con-
trol Act (22 U.S.C. 2751 et seq.);
‘‘(B) the use of more than $250,000,000
of funds made available under this Act or the
Arms Export Control Act; or
‘‘(C) the use of more than $100,000,000 of
foreign currencies accruing under this Act or
any other provision of law.
‘‘(2) SALES UNDER THE ARMS EXPORT CON-
TROL ACT.—If the authority of this section is used
both to authorize a sale or lease under the Arms Ex-
port Control Act and to authorize funds to be used
under this Act with respect to the financing of that
sale or lease, then the use of the funds shall be
counted against the limitation in paragraph (1)(B)
and the portion, if any, of the sale or lease which
is not so financed shall be counted against the limi-
tation in paragraph (1)(A).
‘‘(3) LEASES.—For purposes of paragraph
(1)(A) the replacement cost, less any depreciation in
the value, of the defense articles authorized to be
leased shall be counted against the limitation in that
paragraph.
‘‘(4) COUNTRY
LIMITS.—(A) Not more than
$75,000,000 of the $250,000,000 limitation pro-
vided in paragraph (1)(B) may be allocated to any
one country in any fiscal year unless that country is
a victim of active aggression.
‘‘(B) Not more than $500,000,000 of the ag-
gregate limitation of $1,000,000,000 provided in
paragraph (1)(A) and (1)(B) may be allocated to
any one country in any fiscal year.’’.
SEC. 3404. TERMINATION OF ASSISTANCE.
Section 617 of the Foreign Assistance Act of 1961
(22 U.S.C. 2364) is amended to read as follows:
‘‘SEC. 617. TERMINATION OF ASSISTANCE.
‘‘(a) IN GENERAL.—(1) In order to ensure the effec-
tiveness of assistance provided under this Act, funds made
available under this Act to carry out any program, project,
or activity of assistance shall remain available for obliga-
tion for a period not to exceed 8 months after the date
of termination of such assistance for the necessary ex-
penses of winding up such programs, projects, or activities
and, notwithstanding any other provision of law, funds so
obligated may remain available until expended.
‘‘(2) Funds obligated to carry out any program,
project, or activity of assistance before the effective date
of the termination of such assistance are authorized to be
available for expenditure for the necessary expenses of
winding up such programs, projects, and activities, not-
withstanding any provision of law restricting the expendi-
ture of funds, and may be reobligated to meet any other
necessary expenses arising from the termination of such
assistance.
‘‘(3) The necessary expenses of winding up programs,
projects, and activities of assistance include the obligation
and expenditure of funds to complete the training or stud-
ies outside their countries of origin of students whose
course of study or training program began before assist-
ance was terminated.
‘‘(b) LIABILITY TO CONTRACTORS.—For the purpose
of making an equitable settlement of termination claims
under extraordinary contractual relief standards, the
President is authorized to adopt as a contract or other
obligation of the United States Government, and assume
(in whole or in part) any liabilities arising thereunder, any
contract with a United States or third-country contractor
to carry out any program, project, or activity of assistance
under this Act that was subsequently terminated pursuant
to law.
‘‘(c) GUARANTEE PROGRAMS.—Provisions of this or
any other Act requiring the termination of assistance
under this Act shall not be construed to require the termi-
nation of guarantee commitments that were entered into
before the effective date of the termination of assistance.’’.
CHAPTER 2—OTHER PROVISIONS
SEC. 3411. CONGRESSIONAL PRESENTATION DOCUMENTS.
Section 634 of the Foreign Assistance Act of 1961
(22 U.S.C. 2394) is amended to read as follows:
‘‘SEC. 634. CONGRESSIONAL PRESENTATION DOCUMENTS.
‘‘(a) REQUIREMENT FOR SUBMISSION.—As part of
the annual requests for enactment of authorizations and
appropriations for foreign assistance programs for each
fiscal year, the President shall prepare and transmit to
the Congress annual congressional presentation docu-
ments for the programs authorized under this Act and the
Arms Export Control Act (22 U.S.C. 2751 et seq.).
‘‘(b) MATERIALS TO BE INCLUDED.—The documents
submitted pursuant to subsection (a) shall include—
‘‘(1) the rationale for the allocation of assist-
ance or contributions to each country, regional, or
centrally funded program, or organization, as the
case may be;
‘‘(2) a description of how each such program or
contribution supports the objectives of this Act or
the Arms Export Control Act, as the case may be;
‘‘(3) a description of planned country, regional,
or centrally funded programs or contributions to
international organizations and programs for the
coming fiscal year; and
‘‘(4) for each country for which assistance is re-
quested under this Act or the Arms Export Control
Act—
‘‘(A) the total number of years since 1946
that the United States has provided assistance;
‘‘(B) the total amount of bilateral assist-
ance provided by the United States since 1946,
including the principal amount of all loans,
credits, and guarantees; and
‘‘(C) the total amount of assistance pro-
vided to such country from all multilateral or-
ganizations to which the United States is a
member, including all international financial in-
stitutions, the United Nations, and other inter-
national organizations.
‘‘(c) GRADUATION FROM DEVELOPMENT ASSIST-
ANCE.—
‘‘(1) DETERMINATION.—As part of the congres-
sional presentation documents transmitted to the
Congress under this section, the Secretary of State
shall make a separate determination for each coun-
try identified in such documents for which bilateral
development assistance is requested, estimating the
year in which each such country will no longer be re-
ceiving bilateral development assistance.
‘‘(2) DEVELOPMENT
ASSISTANCE
DEFINED.—
For purposes of this section, the term ‘development
assistance’ means assistance under—
‘‘(A) chapter 1 of part I of this Act;
‘‘(B) chapter 10 of part I of this Act;
‘‘(C) chapter 11 of part I of this Act; and
‘‘(D) the Support for East European De-
mocracy (SEED) Act of 1989 (22 U.S.C. 5401
et seq.).’’.
SEC. 3412. PROHIBITION ON ASSISTANCE TO FOREIGN GOV-
ERNMENTS 
ENGAGED 
IN 
ESPIONAGE
AGAINST THE UNITED STATES.
Chapter 1 of part III of the Foreign Assistance Act
of 1961 (22 U.S.C. 2370 et seq.), as amended by this Act,
is further amended by adding at the end the following new
section:
‘‘SEC. 620I. PROHIBITION ON ASSISTANCE TO FOREIGN
GOVERNMENTS 
ENGAGED 
IN 
ESPIONAGE
AGAINST THE UNITED STATES.
‘‘(a) PROHIBITION.—None of the funds made avail-
able to carry out this Act or the Arms Export Control
Act (22 U.S.C. 2751 et seq.) (other than humanitarian
assistance or assistance for refugees) may be provided to
any foreign government which the President determines
is engaged in intelligence activities within the United
States harmful to the national security of the United
States.
‘‘(b) PERIODIC REPORTS.—Beginning one year after
the date of enactment of this section, and annually there-
after, the President shall prepare and transmit to the
Committee on Foreign Relations and the Select Commit-
tee on Intelligence of the Senate and the Committee on
International Relations and the Permanent Select Com-
mittee on Intelligence of the House of Representatives a
report, in classified and unclassified forms, listing all for-
eign governments which the President determines are con-
ducting intelligence activities within the United States
harmful to the national security of the United States.
‘‘(c) DEFINITION.—As used in this section, the term
‘humanitarian assistance’ means food (including the
monetization of food), clothing, medicine, and medical
supplies.’’.
100
SEC. 3413. DEBT RESTRUCTURING FOR FOREIGN ASSIST-
ANCE.
Chapter 1 of part III of the Foreign Assistance Act
of 1961 (22 U.S.C. 2370 et seq.), as amended by this Act,
is further amended by adding at the end the following new
section:
‘‘SEC. 620J. SPECIAL DEBT RELIEF FOR POOR COUNTRIES.
‘‘(a) AUTHORITY TO REDUCE DEBT.—The President
may reduce amounts owed to the United States Govern-
ment by a country described in subsection (b) as a result
of—
‘‘(1) loans or guarantees issued under this Act;
or
‘‘(2) credits extended or guarantees issued
under the Arms Export Control Act (22 U.S.C.
2751 et seq.).
‘‘(b) COUNTRY DESCRIBED.—A country described in
this subsection is a country—
‘‘(1) with a heavy debt burden that is eligible
to borrow from the International Development Asso-
ciation but not from the International Bank for Re-
construction and Development (commonly referred
to as an ‘IDA-only’ country); and
‘‘(2) the government of which—
‘‘(A) does not have an excessive level of
military expenditures;
101
‘‘(B) has not repeatedly provided support
for acts of international terrorism;
‘‘(C) is cooperating with the United States
on international narcotics control matters;
‘‘(4) (including the military or other security
forces of such government) does not engage in a
consistent pattern of gross violations of internation-
ally recognized human rights; and
‘‘(5) is not prohibited from receiving assistance
described in section 527(a) of the Foreign Relations
Authorization Act, Fiscal Years 1994 and 1995 by
reason of such section.
‘‘(c) LIMITATIONS.—The authority under subsection
(a) may be exercised—
‘‘(1) only to implement multilateral official debt
relief ad referendum agreements (commonly referred
to as ‘Paris Club Agreed Minutes’); and
‘‘(2) only to the extent that appropriations for
the cost of the modification, as defined in section
502 of the Congressional Budget Act of 1974, are
made in advance.
‘‘(d) CERTAIN PROHIBITIONS INAPPLICABLE.—A re-
duction of debt pursuant to the exercise of authority under
subsection (a)—
102
‘‘(1) shall not be considered assistance for pur-
poses of any provision of law limiting assistance to
a country; and
‘‘(2) may be exercised notwithstanding section
620(r) of this Act or any comparable provision of
law.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated to the President for the purpose of car-
rying out this section $7,000,000 for each of the fis-
cal years 1996 and 1997.
‘‘(2) AVAILABILITY.—Amounts authorized to be
appropriated under paragraph (1) are authorized to
remain available until expended.’’.
SEC. 3414. DEBT BUYBACKS OR SALES FOR DEBT SWAPS.
Part IV of the Foreign Assistance Act of 1961 (22
U.S.C. 2430 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 711. AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR
SALES.
‘‘(a) LOANS ELIGIBLE FOR SALE, REDUCTION, OR
CANCELLATION.—
‘‘(1) AUTHORITY TO SELL, REDUCE, OR CANCEL
CERTAIN LOANS.—Notwithstanding any other provi-
sion of law, the President may, in accordance with
103
this section, sell to any eligible purchaser any
concessional loan or portion thereof made before
January 1, 1995, to the government of any eligible
country pursuant to this Act, or on receipt of pay-
ment from an eligible purchaser, reduce or cancel
such loan or portion thereof, only for the purpose of
facilitating—
‘‘(A) debt-for-equity swaps, debt-for-devel-
opment swaps, or debt-for-nature swaps; or
‘‘(B) a debt buyback by an eligible country
of its own qualified debt, only if the eligible
country uses an additional amount of the local
currency of the eligible country, equal to not
less than 40 percent of the price paid for such
debt by such eligible country, or the difference
between the price paid for such debt and the
face value of such debt, to support activities
that link conservation and sustainable use of
natural resources with local community develop-
ment, and child survival and other child devel-
opment, in a manner consistent with sections
707 through 710, if the sale, reduction, or can-
cellation would not contravene any term or con-
dition of any prior agreement relating to such
loan.
104
‘‘(2) TERMS AND CONDITIONS.—Notwithstand-
ing any other provision of law, the President shall,
in accordance with this section, establish the terms
and conditions under which loans may be sold, re-
duced, or canceled pursuant to this section.
‘‘(3) ADMINISTRATION.—The Facility shall no-
tify the administrator of the agency primarily re-
sponsible for administering part I of this Act of pur-
chasers that the President has determined to be eli-
gible, and shall direct such agency to carry out the
sale, reduction, or cancellation of a loan pursuant to
this section. Such agency shall make an adjustment
in its accounts to reflect the sale, reduction, or can-
cellation.
‘‘(4) LIMITATION.—The authorities of this sub-
section shall be available only to the extent that ap-
propriations for the cost of the modification, as de-
fined in section 502 of the Congressional Budget Act
of 1974, are made in advance.
‘‘(b) DEPOSIT OF PROCEEDS.—The proceeds from
the sale, reduction, or cancellation of any loan sold, re-
duced, or canceled pursuant to this section shall be depos-
ited in an account or accounts established in the Treasury
for the repayment of such loan.
105
‘‘(c) ELIGIBLE PURCHASERS.—A loan may be sold
pursuant to subsection (a)(1)(A) only to a purchaser who
presents plans satisfactory to the President for using the
loan for the purpose of engaging in debt-for-equity swaps,
debt-for-development swaps, or debt-for-nature swaps.
‘‘(d) DEBTOR CONSULTATIONS.—Before the sale to
any eligible purchaser, or any reduction or cancellation
pursuant to this section, of any loan made to an eligible
country, the President shall consult with the country con-
cerning the amount of loans to be sold, reduced, or can-
celed and their uses for debt-for-equity swaps, debt-for-
development swaps, or debt-for-nature swaps.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN
GENERAL.—For the sale, reduction,
and cancellation of loans or portions thereof pursu-
ant to this section, there are authorized to be appro-
priated to the President $3,000,000 for each of the
fiscal years 1996 and 1997.
‘‘(2) AVAILABILITY.—Amounts authorized to be
appropriated under paragraph (1) are authorized to
remain available until expended.’’.
SEC. 3415. IMPACT ON JOBS IN THE UNITED STATES.
Section 636 of the Foreign Assistance Act of 1961
(22 U.S.C. 2396) is amended by adding at the end the
following new subsection:
106
‘‘(j)(1) Funds made available to carry out the provi-
sions of this Act may not be made available to provide—
‘‘(A) any financial incentive to a business enter-
prise located in the United States for the purpose of
inducing that enterprise to relocate outside the
United States if such incentive or inducement is
likely to reduce the number of individuals employed
in the United States by that enterprise because that
enterprise would replace production in the United
States with production outside the United States;
‘‘(B) assistance for the purpose of establishing
or developing in a foreign country any export proc-
essing zone or designated area in which the tax, tar-
iff, labor, environment, and safety laws of that coun-
try do not apply, in part or in whole, to activities
carried out within that zone or area, unless the
President determines and certifies that such assist-
ance is not likely to cause a loss of jobs within the
United States; or
‘‘(C) subject to paragraph (2), assistance for
any project or activity that contributes to the viola-
tion of internationally recognized workers rights (as
defined in section 502(a)(4) of the Trade Act of
1974) of workers in the foreign country, including in
any designated zone or area in that country.
107
‘‘(2) Paragraph (1) shall not apply with respect to
the provision of assistance for microenterprises and small-
scale enterprises, or for small-holder agriculture in the in-
formal sector of the foreign country.’’.
SEC. 3416. PROHIBITION ON ASSISTANCE TO FOREIGN GOV-
ERNMENTS THAT EXPORT LETHAL MILITARY
EQUIPMENT 
TO 
COUNTRIES 
SUPPORTING
INTERNATIONAL TERRORISM.
(a) IN GENERAL.—Section 620 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2370) is amended by adding
at the end the following new subsection:
‘‘(y)(1) No assistance may be provided under this Act
or the Arms Export Control Act to any foreign govern-
ment that provides lethal military equipment to a country,
the government of which the Secretary of State has deter-
mined pursuant to section 40(d) of the Arms Export Con-
trol Act is a government that has repeatedly provided sup-
port for acts of international terrorism.
‘‘(2) The prohibition under paragraph (1) with re-
spect to a foreign government shall terminate 12 months
after the date on which that government ceases to provide
such lethal military equipment.
‘‘(3) The President may waive the requirements of
paragraph (1) if the President determines that the provi-
108
sion of such assistance is important to the national secu-
rity interests of the United States.
‘‘(4) Whenever the waiver of paragraph (3) is exer-
cised, the President shall prepare and transmit to the ap-
propriate congressional committees a report with respect
to the furnishing of such assistance. Such report shall in-
clude a detailed explanation of the assistance to be pro-
vided, including the estimated dollar amount of such as-
sistance, and an explanation of how the assistance fur-
thers the national interests of the United States.
‘‘(5) For purposes of this subsection, the term ‘appro-
priate congressional committees’ means the Committee on
International Relations and the Committee on Appropria-
tions of the House of Representatives and the Committee
on Foreign Relations and the Committee on Appropria-
tions of the Senate.’’.
(b) EFFECTIVE DATE.—Section 620(y) of the For-
eign Assistance Act of 1961, as added by subsection (a),
applies with respect to lethal military equipment provided
pursuant to a contract entered into on or after the date
of enactment of this Act.
109
CHAPTER 3—REPEALS
SEC. 3421. REPEAL OF OBSOLETE PROVISIONS.
(a) 1992 JOBS THROUGH EXPORTS ACT.—Title III
of the Jobs Through Exports Act of 1992 is hereby re-
pealed.
(b) 1988 OPIC ACT.—The Overseas Private Invest-
ment Corporation Amendments Act of 1988 (as enacted
by reference by section 555 of the Foreign Operations, Ex-
port Financing, and Related Programs Appropriations
Act, 1989) is hereby repealed.
(c) 1988 FOREIGN OPERATIONS APPROPRIATIONS
ACT.—Section 537(h)(2) of the Foreign Operations, Ex-
port Financing, and Related Programs Appropriations
Act, 1988, as included in Public Law 100–202, is hereby
repealed.
(d) 1987 FOREIGN ASSISTANCE APPROPRIATIONS
ACT.—Section 539(g)(2) of the Foreign Assistance and
Related Programs Appropriations Act, 1987, as included
in Public Law 99–591, is hereby repealed.
(e) 1986 ASSISTANCE ACT.—The Special Foreign As-
sistance Act of 1986 is hereby repealed except for section
1 and section 204.
(f) 1985 ASSISTANCE ACT.—The International Secu-
rity and Development Cooperation Act of 1985 is hereby
repealed except for section 1, section 131, section 132, sec-