H. R. 2673—197
making all practicable efforts to apprehend and transfer Ratko
Mladic;
(2) taking steps that are consistent with the Dayton Accords
to end Serbian financial, political, security and other support
which has served to maintain separate Republika Srpska
institutions; and
(3) taking steps to implement policies which reflect a
respect for minority rights and the rule of law, including the
release of political prisoners from Serbian jails and prisons.
(d) This section shall not apply to Montenegro, Kosovo, humani-
tarian assistance or assistance to promote democracy in municipali-
ties.
COMMUNITY-BASED POLICE ASSISTANCE
SEC. 573. (a) AUTHORITY.—Funds made available by this Act
to carry out the provisions of chapter 1 of part I and chapter
4 of part II of the Foreign Assistance Act of 1961, may be used,
notwithstanding section 660 of that Act, to enhance the effectiveness
and accountability of civilian police authority in Jamaica and El
Salvador through training and technical assistance in human rights,
the rule of law, strategic planning, and through assistance to foster
civilian police roles that support democratic governance including
assistance for programs to prevent conflict and foster improved
police relations with the communities they serve.
(b) NOTIFICATION.—Assistance provided under subsection (a)
shall be subject to the regular notification procedures of the
Committees on Appropriations.
SPECIAL DEBT RELIEF FOR THE POOREST
SEC. 574. (a) AUTHORITY
TO REDUCE DEBT.—The President
may reduce amounts owed to the United States (or any agency
of the United States) by an eligible country as a result of—
(1) guarantees issued under sections 221 and 222 of the
Foreign Assistance Act of 1961;
(2) credits extended or guarantees issued under the Arms
Export Control Act; or
(3) any obligation or portion of such obligation, to pay
for purchases of United States agricultural commodities guaran-
teed by the Commodity Credit Corporation under export credit
guarantee programs authorized pursuant to section 5(f) of the
Commodity Credit Corporation Charter Act of June 29, 1948,
as amended, section 4(b) of the Food for Peace Act of 1966,
as amended (Public Law 89–808), or section 202 of the Agricul-
tural Trade Act of 1978, as amended (Public Law 95–501).
(b) LIMITATIONS.—
(1) The authority provided by subsection (a) may be exer-
cised only to implement multilateral official debt relief and
referendum agreements, commonly referred to as ‘‘Paris Club
Agreed Minutes’’.
(2) The authority provided by subsection (a) may be exer-
cised only in such amounts or to such extent as is provided
in advance by appropriations Acts.
(3) The authority provided by subsection (a) may be exer-
cised only with respect to countries with heavy debt burdens
that are eligible to borrow from the International Development
Association, 
but 
not 
from 
the 
International 
Bank 
for
H. R. 2673—198
Reconstruction and Development, commonly referred to as
‘‘IDA-only’’ countries.
(c) CONDITIONS.—The authority provided by subsection (a) may
be exercised only with respect to a country whose government—
(1) does not have an excessive level of military expendi-
tures;
(2) has not repeatedly provided support for acts of inter-
national terrorism;
(3) is not failing to cooperate on international narcotics
control matters;
(4) (including its military or other security forces) does
not engage in a consistent pattern of gross violations of inter-
nationally recognized human rights; and
(5) is not ineligible for assistance because of the application
of section 527 of the Foreign Relations Authorization Act, Fiscal
Years 1994 and 1995.
(d) AVAILABILITY OF FUNDS.—The authority provided by sub-
section (a) may be used only with regard to the funds appropriated
by this Act under the heading ‘‘Debt Restructuring’’.
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduction of debt
pursuant to subsection (a) shall not be considered assistance for
the purposes of any provision of law limiting assistance to a country.
The authority provided by subsection (a) may be exercised notwith-
standing section 620(r) of the Foreign Assistance Act of 1961 or
section 321 of the International Development and Food Assistance
Act of 1975.
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES
SEC. 575. (a) LOANS ELIGIBLE FOR SALE, REDUCTION, OR CAN-
CELLATION.—
(1) AUTHORITY
TO
SELL, REDUCE, OR
CANCEL
CERTAIN
LOANS.—Notwithstanding any other provision of law, the Presi-
dent may, in accordance with this section, sell to any eligible
purchaser any concessional loan or portion thereof made before
January 1, 1995, pursuant to the Foreign Assistance Act of
1961, to the government of any eligible country as defined
in section 702(6) of that Act or on receipt of payment 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-development 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
development, and child survival and other child develop-
ment, in a manner consistent with sections 707 through
710 of the Foreign Assistance Act of 1961, if the sale,
reduction, or cancellation would not contravene any term
or condition of any prior agreement relating to such loan.
(2) TERMS AND CONDITIONS.—Notwithstanding any other
provision of law, the President shall, in accordance with this
H. R. 2673—199
section, establish the terms and conditions under which loans
may be sold, reduced, or canceled pursuant to this section.
(3) ADMINISTRATION.—The Facility, as defined in section
702(8) of the Foreign Assistance Act of 1961, shall notify the
administrator of the agency primarily responsible for admin-
istering part I of the Foreign Assistance Act of 1961 of pur-
chasers that the President has determined to be eligible, and
shall direct such agency to carry out the sale, reduction, or
cancellation of a loan pursuant to this section. Such agency
shall make adjustment in its accounts to reflect the sale, reduc-
tion, or cancellation.
(4) LIMITATION.—The authorities of this subsection shall
be available 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.
(b) DEPOSIT OF PROCEEDS.—The proceeds from the sale, reduc-
tion, or cancellation of any loan sold, reduced, or canceled pursuant
to this section shall be deposited in the United States Government
account or accounts established for the repayment of such loan.
(c) ELIGIBLE PURCHASERS.—A loan may be sold pursuant to
subsection (a)(1)(A) only to a purchaser who presents plans satisfac-
tory 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 should
consult with the country concerning the amount of loans to be
sold, reduced, or canceled and their uses for debt-for-equity swaps,
debt-for-development swaps, or debt-for-nature swaps.
(e) AVAILABILITY OF FUNDS.—The authority provided by sub-
section (a) may be used only with regard to funds appropriated
by this Act under the heading ‘‘Debt Restructuring’’.
DISASTER SURGE CAPACITY
SEC. 576. Funds appropriated by this Act to carry out part
I of the Foreign Assistance Act of 1961 may be used, in addition
to funds otherwise available for such purposes, for the cost
(including the support costs) of individuals detailed to or employed
by the United States Agency for International Development whose
primary responsibility is to carry out programs to address natural
or manmade disasters or programs under the heading ‘‘Transition
Initiatives’’.
IFAD AUTHORIZATION
SEC. 577. The Secretary of the Treasury may, to fulfill commit-
ments of the United States, contribute on behalf of the United
States to the sixth replenishment of the resources of the Inter-
national Fund for Agricultural Development. The following amount
is authorized to be appropriated without fiscal year limitation for
payment by the Secretary of the Treasury: $45,000,000 for the
International Fund for Agricultural Development.
H. R. 2673—200
PHILIPPINE EDUCATION AND HEALTH INFRASTRUCTURE
SEC. 578. Of the funds appropriated under ‘‘Economic Support
Fund’’ for the Philippines in Public Law 108–11, the Emergency
Wartime Supplemental Appropriations Act, 2003, $600,000 shall
be available only for upgrading education and health infrastructure
in the Sulu Archipelago.
BASIC EDUCATION
SEC. 579. Of the funds appropriated by title II of this Act,
not less than $326,500,000 shall be made available for basic edu-
cation: Provided, That the Secretary of State, in consultation with
the Administrator of the United States Agency for International
Development (USAID), shall submit a report not later than 120
days after enactment of this Act articulating a strategy for the
use of basic education funds in Africa, East Asia and the Pacific,
the Near East, South Asia, and the Western Hemisphere (excluding
the United States) to include—
(1) country strategies and brief project descriptions of the
uses and proposed uses of all United States Government
resources for basic education overseas;
(2) a detailed description of the administrative structure
currently in place to manage strategic coordination undertaken
among the State Department, USAID and other agencies
involved in international basic education activities; and
(3) a description of actions being taken to expand the
administrative capacity of both USAID and the State Depart-
ment to deliver effective expanded basic education programs.
PARTICIPATION IN THE THIRTEENTH REPLENISHMENT OF THE
RESOURCES OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION
SEC. 580. The International Development Association Act (22
U.S.C. 284–284s) is amended by adding at the end the following:
‘‘SEC. 22. THIRTEENTH REPLENISHMENT.
‘‘(a) CONTRIBUTION AUTHORITY.—
‘‘(1) IN
GENERAL.—The United States Governor of the
Association may contribute on behalf of the United States an
amount equal to the amount appropriated under subsection
(b), pursuant to the resolution of the Association entitled ‘Addi-
tions to IDA Resources: Thirteenth Replenishment’.
‘‘(2) SUBJECT
TO
APPROPRIATIONS.—Any commitment to
make the contribution authorized by paragraph (1) shall be
effective only to such extent or in such amounts as are provided
in advance in appropriations Acts.
‘‘(b) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—For
the contribution authorized by subsection (a), there are authorized
to be appropriated such sums as may be necessary for payment
by the Secretary of the Treasury, without fiscal year limitation.’’.
ADMINISTRATIVE PROVISIONS RELATED TO MULTILATERAL
DEVELOPMENT INSTITUTIONS
SEC. 581. Title XV of the International Financial Institutions
Act (22 U.S.C. 262o—262o–2) is amended by adding at the end
the following: