181
(5) Each of the principles has been violated dur-
ing the course of war in Bosnia-Herzegovina: sov-
ereign equality and respect for the rights inherent in
sovereignty, refraining from the threat or use of force;
inviolability of frontiers; territorial integrity of
States; peaceful settlement of disputes; noninterven-
tion in internal affairs; respect for human rights and
fundamental freedoms, including the freedom of
thought, conscience, religion or belief; equal rights and
self-determination of peoples; cooperation among
States; and fulfillment in good faith of obligations
under international law.
(6) Principle II of the Final Act commits the
participating States to ‘‘refrain from any manifesta-
tion of force for the purpose of inducing another par-
ticipating State to renounce the full exercise of its
sovereign rights’’.
(7) Principle III of the Final Act commits the
participating States to ‘‘refrain from any demand
for, or act of, seizure and usurpation of part or all
of the territory of any participating State’’.
(8) Principle IV of the Final Act commits the
participating States to ‘‘respect the territorial integ-
rity of each of the participating States’’ and ‘‘refrain
from any action inconsistent with the purposes and
182
principles of the Charter of the United Nations
against the territorial integrity, political independ-
ence or the unity of any participating State’’.
(9) The Charter of Paris for a New Europe com-
mits the participating States ‘‘to cooperate in defend-
ing democratic institutions against activities which
violate the independence, sovereign equality, or terri-
torial integrity of the participating States’’.
(10) The Helsinki Document 1992 reaffirms ‘‘the
validity of the guiding principles and common values
of the Helsinki Final Act and the Charter of Paris,
embodying responsibilities of States towards each
other and of governments towards their own people’’
which serve as the ‘‘collective conscience of our com-
munity’’.
(11) The Charter of the United Nations calls
upon Member states to respect the territorial integrity
and political independence of any state in keeping
with the Purposes of the United Nations.
(12) The sovereign and independent state of
Bosnia-Herzegovina has been and continues to be sub-
jected to armed aggression Bosnian Serb forces, Cro-
atian Serb forces, and others in violation of Final Act
and the Charter.
183
(13) Unchecked armed aggression and genocide
threatens the lives of innocent civilians as well as the
very existence of the sovereign and independent state
of Bosnia-Herzegovina.
(b) SENSE OF CONGRESS.—It is the sense of the Con-
gress that the United States should refuse to recognize the
incorporation of any of the territory of Bosnia-Herzegovina
into the territory of any neighboring state or the creation
of any new state or states within the borders of Bosnia-
Herzegovina resulting from the threat or use of force, coer-
cion, or any other means inconsistent with international
law.
SEC. 2703. THE LAOGAI SYSTEM OF POLITICAL PRISONS.
(a) FINDINGS.—The Congress makes the following
findings:
(1) The Chinese gulag, known as the Laogai, was
created as a primary means of political repression
and control when the Communists assumed power in
China in 1949.
(2) The Laogai has caused millions of people to
suffer grave human rights abuses over the past 46
years, including countless deaths.
(3) The Laogai continues to be used to incarcer-
ate unknown numbers of ordinary citizens for politi-
184
cal reasons, including workers, students, intellectuals,
religious believers, and Tibetans.
(4) So-called ‘‘thought reform’’ is a standard
practice of Laogai officials, and reports of torture are
routinely received by human rights organizations
from Laogai prisoners and survivors.
(5) Negotiations about unfettered access to
Laogai prisoners between the Chinese Government
and the International Red Cross have ceased.
(6) The Laogai is in reality a huge system of
forced labor camps in which political and penal
criminals are slave laborers producing an array of
products for export throughout the world, including
the United States.
(7) The Chinese Government continues to main-
tain, as part of its official propaganda and in defi-
ance of significant evidence to the contrary gathered
by many human rights organizations, that the Laogai
is a prison system like any other in the world.
(8) Testimony delivered before the Subcommittee
on International Operations and Human Rights of
the Committee on International Relations of the
House of Representatives has documented human
rights abuses in the Laogai which continue to this
day.
185
(9) The American people have repeatedly ex-
pressed their abhorrence of forced labor camps sys-
tems, whether they be operated by the Nazis, Soviet
Communists, or any other political ideology.
(b) SENSE OF CONGRESS.—It is the sense of the Con-
gress that the President should—
(1) publicly condemn the continued existence of
the Laogai, and call upon the Government of the Peo-
ple’s Republic of China to dismantle it, and release
all of its political prisoners; and
(2) instruct the appropriate diplomatic rep-
resentatives of the United States to cause a resolution
condemning the Laogai to be put before the United
Nations Human Rights Commission and work for its
passage.
SEC. 2704. CONCERNING THE USE OF FUNDS TO FURTHER
NORMALIZE RELATIONS WITH VIETNAM.
It is the sense of the Congress that none of the funds
authorized to be appropriated or otherwise made available
by this Act may be obligated or expended to further normal-
ize diplomatic relations between the United States and Viet-
nam, until Vietnam—
(1) releases all of its political and religious pris-
oners;
186
(2) accounts for American POWs and MIAs from
the Vietnam War;
(3) holds democratic elections; and
(4) institutes policies which protect human
rights.
SEC. 2705. DECLARATION OF CONGRESS REGARDING UNIT-
ED STATES GOVERNMENT HUMAN RIGHTS
POLICY TOWARD CHINA.
(a) FINDINGS.—The Congress makes the following
findings:
(1) According to the 1994 State Department
Country Reports on Human Rights Practices there
continue to be ‘‘widespread and well-documented
human rights abuses in China, in violation of inter-
nationally accepted norms . . . (including) arbitrary
and lengthy incommunicado detention, torture, and
mistreatment of prisoners. The regime continued se-
vere restrictions on freedoms of speech, press assembly
and association, and tightened controls on the exercise
of these rights during 1994. Serious human rights
abuses persisted in Tibet and other areas populated
by ethnic minorities’’.
(2) The President, in announcing his decision on
Most Favored Nation trading status for China in
May 1994 stated that, ‘‘China continues to commit
187
very serious human rights abuses. Even as we engage
the Chinese on military, political, and economic is-
sues, we intend to stay engaged with those in China
who suffer from human rights abuses. The United
States must remain a champion of their liberties’’.
(b) SENSE OF CONGRESS.—It is the sense of the Con-
gress that the President should take the following actions:
(1) Decline the invitation to visit China until
and unless there is dramatic overall progress on
human rights in China and Tibet and communicate
to the Government of China that such a visit cannot
take place without such progress. Indications of over-
all progress would include the release of hundreds of
political, religious, and labor activists; an agreement
to allow unhindered confidential access to prisoners
by international humanitarian agencies; enactment of
major legal reforms such as an end to all restrictions
on the exercise of freedom of religion, revocation of the
1993 state security law, and the abolition of all so-
called ‘‘counter-revolutionary’’ crimes; an end to
forced abortion, forced sterilization, and the provision
by government facilities of human fetal remains for
consumption as food; and a decision to allow unre-
stricted access to Tibet by foreign media and inter-
national human rights monitors.
188
(2) Seek to develop an agreement on a multilat-
eral strategy to promote human rights in China with
other members of the G–7, beginning with the meeting
of the G–7 industrial partners scheduled for June
1995 in Halifax, Nova Scotia. Such an agreement
should include efforts to encourage greater cooperation
by the Government of China with the human rights
rapporteurs and working groups of the United Na-
tions Human Rights Commission, as well as bilateral
and multilateral initiatives to secure the uncondi-
tional release of imprisoned peaceful pro-democracy
advocates such as Wei Jingsheng.
(3) Instruct the United States delegates to the
United Nations Fourth World Conference on Women
in September 1995 to vigorously and publicly support
nongovernmental organizations that may be subjected
to harassment or to restrictions or limitations on
their activities, access to the media, or to channels of
communication during the conference by the Govern-
ment of China and to protest publicly and privately
any actions by the Government of China aimed at
punishing or repressing Chinese citizens who seek to
peacefully express their views or communicate with
foreign citizens or media during or following the
United Nations Conference.
189
(4) Extend an invitation to the Dalai Lama to
visit Washington, District of Columbia, in 1995.
(c) UNITED STATES GOVERNMENT HUMAN RIGHTS
POLICY TOWARD CHINA.—It shall be the policy of the Unit-
ed States Government to continue to promote internation-
ally recognized human rights and worker rights in China
and Tibet. The President shall submit the following reports
on the formulation and implementation of United States
human rights policy toward China and the results of that
policy to the International Relations Committee of the
House of Representatives :
(1) Not later than 90 days after the date of en-
actment of this Act, the President shall report on the
status of the ‘‘new United States Human Rights Pol-
icy for China’’ announced by the President on May
26, 1994, including an assessment of the implementa-
tion and effectiveness of the policy in bringing about
human rights improvements in China and Tibet, with
reference to the following specific initiatives an-
nounced on that date:
(A) High-level dialogue on human rights.
(B) Voluntary principles in the area of
human rights for United States businesses oper-
ating in China.
190
(C) Increased contact with and support for
groups and individuals in China promoting law
reform and human rights.
(D) Increased exchanges to support human
rights law reform in China.
(E) The practice of all United States offi-
cials who visit China to meet with the broadest
possible spectrum of Chinese citizens.
(F) Increased efforts to press United States
views on human rights in China at the United
Nations, the United Nations Human Rights
Commission, and other international organiza-
tions.
(G) A plan of international actions to ad-
dress Tibet’s human rights problems and to pro-
mote substantive discussions between the Dalai
Lama and the Chinese Government.
(H) Efforts to use the 1995 United Nations
Women’s Conference in Beijing to expand free-
doms of speech, association, and assembly, as
well as the rights of women, in China.
(I) An information strategy for promoting
human rights by expanding Chinese and Tibetan
language broadcasts on the Voice of America and
establishing Radio Free Asia.
191
(J) Encouraging the Chinese Government to
permit international human rights groups to op-
erate in and visit China.
The report required by this paragraph shall also as-
sess the progress, if any, of the People’s Republic of
China toward ending forced abortion, forced steriliza-
tion, and other coercive population control practices.
(2) Not later than 120 days after the date of en-
actment of this Act, the President shall report on the
status of Chinese Government compliance with United
States laws prohibiting the importation into the
United States of forced labor products, including (but
not limited to) a complete assessment and report on
the implementation of the Memorandum of Under-
standing signed by the United States and China in
1992. The report shall include (but not be limited to)
the following:
(A) All efforts made by the United States
Customs Service from 1992 until the date of the
report to investigate forced labor exports and to
conduct unannounced unrestricted inspections of
suspected forced labor sites in China, and the ex-
tent to which Chinese authorities cooperated with
such investigations.
192
(B) Recommendations of what further steps
might be taken to enhance United States effec-
tiveness in prohibiting forced labor exports to the
United States from China.
SEC. 2706. CONCERNING THE UNITED NATIONS VOLUNTARY
FUND FOR VICTIMS OF TORTURE.
It is the sense of the Congress that the President, acting
through the United States Permanent Representative to the
United Nations, should—
(1) request the United Nations Voluntary Fund
for Victims of Torture—
(A) to find new ways to support and protect
treatment centers that are carrying out rehabili-
tative services for victims of torture; and
(B) to encourage the development of new
such centers;
(2) use the voice and vote of the United States
to support the work of the Special Rapporteur on
Torture and the Committee Against Torture estab-
lished under the Convention Against Torture and
Other Cruel, Inhuman or Degrading Treatment or
Punishment; and
(3) use the voice and vote of the United States
to establish a country rapporteur or similar proce-
dural mechanism to investigate human rights viola-
193
tions in a country if either the Special Rapporteur or
the Committee Against Torture indicates that a sys-
tematic practice of torture is prevalent in that coun-
try.
SEC. 2707. RECOMMENDATIONS OF THE PRESIDENT FOR
REFORM OF WAR POWERS RESOLUTION.
It is the sense of the Congress that the President should
transmit to the Congress recommendations for reform of the
War Powers Resolution (50 U.S.C. 1541 et seq.) in order
to permit the Congress and the President to more effectively
fulfill their constitutional responsibilities with respect to the
deployment of United States Armed Forces abroad.
SEC. 2708. CONFLICT IN KASHMIR.
It is the sense of the Congress that the United States
reiterates the need for all parties to the conflict in Kashmir
to enter into negotiations and resolve the conflict peacefully.
The Congress urges the executive branch to work with all
parties to facilitate a peaceful negotiated settlement of the
Kashmir conflict.
SEC. 2709. UNITED STATES RELATIONS WITH THE FORMER
YUGOSLAV 
REPUBLIC 
OF 
MACEDONIA
(FYROM).
It is the sense of the Congress that the Former Yugoslav
Republic of Macedonia (FYROM) should be eligible for all
United States foreign assistance programs, including pro-
194
grams of the Export-Import Bank and the Overseas Private
Investment Corporation, if the government continues to re-
spect the rights of all ethnic minorities.
SEC. 2710. SENSE OF THE CONGRESS RELATING TO INDO-
NESIA.
It is the sense of the Congress that—
(1) the United States should continue to urge
progress in promotion and protection of internation-
ally recognized human rights by the Government of
Indonesia;
(2) in its bilateral relations with the Government
of Indonesia, the United States should place a high
priority on public and private efforts to urge the Gov-
ernment of Indonesia to take specific steps to remove
restrictions of freedom of expression and association,
to allow freedom of the press, to allow freedom of reli-
gion, to end arbitrary arrests and torture and ill-
treatment, to cease official attacks on nongovern-
mental organizations, to end the widespread denial of
worker rights, and to hold members of the military
accountable for human rights abuses;
(3) with respect to the situation in East Timor,
the United States should call on the Government of
Indonesia to make public the complete findings of the
investigations into the killings of unarmed civilians
195
in Liquica on January 12, 1995, including the re-
ports of the Army Council of Military Honor and the
findings of the National Human Rights Commission,
and that those responsible for the killings be identified
and brought to justice;
(4) the United States should continue to press
the Government of Indonesia to fully comply with the
1994 and 1995 recommendations of the United Na-
tions Human Rights Commission regarding the need
for a full accounting of the Dili incident of November
1991;
(5) the United States should urge the Govern-
ment of Indonesia to allow independent human rights
monitoring organizations and foreign journalists
unhindered access to East Timor;
(6) the United States should urge the Govern-
ment of Indonesia to respect free practice of religion,
including Christianity, in Indonesia, including East
Timor; and
(7) the President should instruct the United
States delegates to the annual Indonesia aid consor-
tium donor meeting in July 1995 to again raise con-
cerns about human rights violations in Indonesia, in-
cluding restrictions of freedom of the press, attacks on
196
nongovernmental organizations, and widespread vio-
lations of human rights in East Timor.
SEC. 2711. DISPLACED PERSONS.
It is the sense of the Congress that of the amounts made
available to the United Nations Development Program (and
United 
Nations 
Development 
Program-Administered
Funds), at least $20,000,000 for fiscal year 1996 and
$20,000,000 for fiscal year 1997 should be available for pro-
grams and services conducted in cooperation with the Inter-
national Organization for Migration, the International
Committee for the Red Cross, and nongovernmental organi-
zations, for persons who are displaced within their coun-
tries of nationality.
DIVISION C—FOREIGN
ASSISTANCE AUTHORIZATIONS
SEC. 3001. SHORT TITLE.
This division may be cited as the ‘‘Foreign Aid Reduc-
tion Act of 1995’’.
SEC. 3002. DECLARATION OF POLICY.
The Congress declares the following:
(1) United States leadership overseas must be
maintained to support our vital national security,
economic, and humanitarian interests.
197
(2) As part of this leadership, United States for-
eign assistance programs are essential to support
these national interests.
(3) However, United States foreign assistance
programs can be responsibly reduced while maintain-
ing United States leadership overseas.
TITLE XXXI—DEFENSE AND
SECURITY ASSISTANCE
CHAPTER 1—MILITARY AND RELATED
ASSISTANCE
Subchapter A—Foreign Military Financing
Program
SEC. 3101. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for grant as-
sistance under section 23 of the Arms Export Control Act
(22 U.S.C. 2763) and for the subsidy cost, as defined in
section 502(5) of the Federal Credit Reform Act of 1990,
of direct loans under such section—
(1) $3,284,440,000 for fiscal year 1996; and
(2) $3,240,020,000 for fiscal year 1997.
SEC. 3102. ADMINISTRATIVE EXPENSES.
Of the amounts made available for fiscal years 1996
and 1997 for assistance under the ‘‘Foreign Military Fi-
nancing Program’’ account under section 23 of the Arms
Export Control Act (22 U.S.C. 2763), not more than
198
$24,020,000 for each such fiscal year may be made available
for necessary expenses for the general costs of administra-
tion of military assistance and sales, including expenses in-
curred in purchasing passenger motor vehicles for replace-
ment for use outside the United States.
SEC. 3103. ASSISTANCE FOR ISRAEL.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1996 and 1997 for assistance
under the ‘‘Foreign Military Financing Program’’ account
under section 23 of the Arms Export Control Act (22 U.S.C.
2763), not less than $1,800,000,000 for each such fiscal year
shall be available only for Israel.
(b) TERMS OF ASSISTANCE.—
(1) GRANT BASIS.—The assistance provided for
Israel for each fiscal year under subsection (a) shall
be provided on a grant basis.
(2) EXPEDITED
DISBURSEMENT.—Such assist-
ance shall be disbursed—
(A) with respect to fiscal year 1996, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Financ-
ing, and Related Programs Appropriations Act,
1996, or by October 31, 1995, whichever is later;
and
199
(B) with respect to fiscal year 1997, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Financ-
ing, and Related Programs Appropriations Act,
1997, or by October 31, 1996, whichever is later.
(3) ADVANCED WEAPONS SYSTEMS.—To the ex-
tent that the Government of Israel requests that funds
be used for such purposes, funds described in sub-
section (a) shall, as agreed by the Government of Is-
rael and the Government of the United States, be
available for advanced weapons systems, of which not
less than $475,000,000 for each fiscal year shall be
available only for procurement in Israel of defense ar-
ticles and defense services, including research and de-
velopment.
(c) FOREIGN MILITARY SALES.—Section 21(h) of the
Arms Export Control Act (22 U.S.C. 2761(h)) is amend-
ed—
(1) in paragraph (1)(A), by inserting ‘‘or the
Government of Israel’’ after ‘‘North Atlantic Treaty
Organization’’; and
(2) in paragraph (2), by striking ‘‘or to any
member government of that Organization if that Or-
ganization or member government’’ and inserting ‘‘,
any member government of that Organization, or the
200
Government of Israel, if the Organization, member
government, or Government of Israel, as the case may
be,’’.
SEC. 3104. ASSISTANCE FOR EGYPT.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1996 and 1997 for assistance
under the ‘‘Foreign Military Financing Program’’ account
under section 23 of the Arms Export Control Act (22 U.S.C.
2763), not less than $1,300,000,000 for each such fiscal year
shall be available only for Egypt.
(b) TERMS OF ASSISTANCE.—The assistance provided
for Egypt for each fiscal year under subsection (a) shall
be provided on a grant basis.
SEC. 3105. LOANS FOR GREECE AND TURKEY.
Of the amounts made available for fiscal year 1996
under section 23 of the Arms Export Control Act (22 U.S.C.
2763)—
(1) not more than $26,620,000 shall be made
available for the subsidy cost, as defined in section
502(5) of the Federal Credit Reform Act of 1990, of
direct loans for Greece; and
(2) not more than $37,800,000 shall be made
available for such subsidy cost of direct loans for Tur-
key.
201
SEC. 3106. TERMS OF LOANS.
Section 31(c) of the Arms Export Control Act (22
U.S.C. 2771(c)) is amended to read as follows:
‘‘(c) Loans available under section 23 shall be provided
at rates of interest that are not less than the current average
market yield on outstanding marketable obligations of the
United States of comparable maturities.’’.
SEC. 3107. NONREPAYMENT OF GRANT ASSISTANCE.
Section 23 of the Arms Export Control Act (22 U.S.C.
2763) is amended by adding at the end the following new
subsection:
‘‘(f) Notwithstanding any other provision of this sec-
tion, the President shall not require repayment of any as-
sistance provided on a grant basis under this section to a
foreign country or international organization.’’.
SEC. 3108. ADDITIONAL REQUIREMENTS.
(a) AVAILABILITY OF FUNDS FOR PROCUREMENT OF
DEFENSE ARTICLES, SERVICES, AND DESIGN AND CON-
STRUCTION SERVICES NOT SOLD BY UNITED STATES GOV-
ERNMENT.—Section 23 of the Arms Export Control Act (22
U.S.C. 2763), as amended by this Act, is further amended
by adding at the end the following new subsection:
‘‘(g) Funds made available to carry out this section
for a fiscal year may be made available to a foreign country
or international organization for the purpose of financing
the procurement of defense articles, defense services, and de-
202
sign and construction services that are not sold by the Unit-
ed States Government under this Act only—
‘‘(1) with respect to a country that is a member
country of the North Atlantic Treaty Organization, a
major non-NATO ally, or Jordan for which assistance
was justified under this section in the annual congres-
sional presentation documents under section 634 of
the Foreign Assistance Act of 1961 for that fiscal
year; and
‘‘(2) if such country or international organiza-
tion enters into an agreement with the United States
Government that specifies the terms and conditions
under which such procurements shall be financed with
such funds.’’.
(b) AUDIT OF CERTAIN PRIVATE FIRMS.—Section 23
of such Act (22 U.S.C. 2763), as amended by this Act, is
further amended by adding at the end the following new
subsection:
‘‘(h) For each fiscal year, the Secretary of Defense, as
requested by the Director of the Defense Security Assistance
Agency, shall conduct audits on a nonreimbursable basis
of private firms that have entered into contracts with for-
eign governments under which defense articles, defense serv-
ices, or design and construction services are to be procured
203
by such firms for such governments from financing under
this section for such fiscal year.’’.
(c) PROHIBITION ON USE OF FUNDS FOR THE TRANS-
PORT
OF
AIRCRAFT
TO
COMMERCIAL
ARMS
SALES
SHOWS.—Section 23 of such Act (22 U.S.C. 2763), as
amended by this Act, is further amended by adding at the
end the following new subsection:
‘‘(i) Funds made available to carry out this section
may not be used to facilitate the transport of aircraft to
commercial arms sales shows.’’.
(d) NOTIFICATION REQUIREMENT WITH RESPECT TO
CASH FLOW FINANCING.—Section 23 of such Act (22 U.S.C.
2763), as amended by this Act, is further amended by add-
ing at the end the following new subsection:
‘‘(j)(1) For each country and international organiza-
tion that has been approved for cash flow financing under
this section, any letter of offer and acceptance or other pur-
chase agreement, or any amendment thereto, for a procure-
ment of defense articles, defense services, or design and con-
struction services in excess of $100,000,000 that is to be fi-
nanced in whole or in part with funds made available
under this Act or the Foreign Assistance Act of 1961 shall
be submitted to the congressional committees specified in
section 634A(a) of the Foreign Assistance Act of 1961 in
204
accordance 
with 
the 
procedures 
applicable 
to
reprogramming notifications under that section.
‘‘(2) For purposes of this subsection, the term ‘cash
flow financing’ has the meaning given such term in the sec-
ond subsection (d) of section 25.’’.
(e) LIMITATIONS ON USE OF FUNDS FOR DIRECT COM-
MERCIAL CONTRACTS.—Section 23 of such Act (22 U.S.C.
2763), as amended by this Act, is further amended by add-
ing at the end the following new subsection:
‘‘(k) Of the amounts made available for a fiscal year
to carry out this section, not more than $100,000,000 for
such fiscal year may be made available for countries other
than Israel and Egypt for the purpose of financing the pro-
curement of defense articles, defense services, and design
and construction services that are not sold by the United
States Government under this Act.’’.
(f) USE OF FUNDS FOR DEMINING ACTIVITIES.—Sec-
tion 23 of such Act (22 U.S.C. 2763), as amended by this
Act, is further amended by adding at the end the following
new subsection:
‘‘(l) Notwithstanding any other provision of law, funds
made available to carry out this section may be used for
demining activities, and may include activities imple-
mented through nongovernmental and international organi-
zations.’’.
205
Subchapter B—Other Assistance
SEC. 3121. DEFENSE DRAWDOWN SPECIAL AUTHORITIES.
(a) UNFORESEEN EMERGENCY DRAWDOWN.—Section
506(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C.
2318(a)(1)) is amended by striking ‘‘$75,000,000’’ and in-
serting ‘‘$100,000,000’’.
(b) ADDITIONAL DRAWDOWN.—Section 506 of such Act
(22 U.S.C. 2318) is amended—
(1) in subsection (a)(2)(A), by striking ‘‘defense
articles from the stocks’’ and all that follows and in-
serting the following: ‘‘articles and services from the
inventory and resources of any agency of the United
States Government and military education and train-
ing from the Department of Defense, the President
may direct the drawdown of such articles, services,
and military education and training—
‘‘(i) for the purposes and under the authori-
ties of—
‘‘(I) chapter 8 of part I (relating to
international narcotics control assistance);
‘‘(II) chapter 9 of part I (relating to
international disaster assistance); or
‘‘(III) the Migration and Refugee As-
sistance Act of 1962; or
206
‘‘(ii) for the purpose of providing such arti-
cles, services, and military education and train-
ing to Vietnam, Cambodia, and Laos as the
President determines are necessary—
‘‘(I) to support efforts to locate and re-
patriate members of the United States
Armed Forces and civilians employed di-
rectly or indirectly by the United States
Government who remain unaccounted for
from the Vietnam War; and
‘‘(II) to ensure the safety of United
States Government personnel engaged in
such cooperative efforts and to support De-
partment of Defense-sponsored humani-
tarian projects associated with such ef-
forts.’’;
(2) 
in 
subsection 
(a)(2)(B), 
by 
striking
‘‘$75,000,000’’ and all that follows and inserting
‘‘$150,000,000 in any fiscal year of such articles,
services, and military education and training may be
provided pursuant to subparagraph (A) of this para-
graph—
‘‘(i) not more than $75,000,000 of which
may be provided from the drawdown from the
207
inventory and resources of the Department of
Defense;
‘‘(ii) not more than $75,000,000 of which
may be provided pursuant to clause (i)(I) of
such subparagraph; and
‘‘(iii) not more than $15,000,000 of which
may be provided to Vietnam, Cambodia, and
Laos pursuant to clause (ii) of such subpara-
graph.’’; and
(3) in subsection (b)(1), by adding at the end the
following: ‘‘In the case of drawdowns authorized by
subclauses (I) and (III) of subsection (a)(2)(A)(i), no-
tifications shall be provided to those committees at
least 15 days in advance in accordance with the pro-
cedures applicable to reprogramming notifications
under section 634A.’’.
(c) NOTICE TO CONGRESS OF EXERCISE OF SPECIAL
AUTHORITIES.—Section 652 of such Act (22 U.S.C. 2411)
is amended by striking ‘‘prior to the date’’ and inserting
‘‘before’’.
SEC. 3122. STOCKPILES OF DEFENSE ARTICLES.
(a) LIMITATION ON VALUE OF ADDITIONS.—Section
514(b)(1) of the Foreign Assistance Act of 1961 (22 U.S.C.
2321h(b)(1)) is amended by inserting ‘‘or in the implemen-
208
tation of agreements with Israel’’ after ‘‘North Atlantic
Treaty Organization’’.
(b) ADDITIONS IN FISCAL YEARS 1996 AND 1997.—
Section 514(b)(2) of such Act (22 U.S.C. 2321h(b)(2)) is
amended to read as follows:
‘‘(2)(A) The value of such additions to stockpiles of de-
fense articles in foreign countries shall not exceed
$50,000,000 for each of the fiscal years 1996 and 1997.
‘‘(B) Of the amount specified in subparagraph (A) for
each of the fiscal years 1996 and 1997, not more than
$40,000,000 may be made available for stockpiles in the Re-
public of Korea and not more than $10,000,000 may be
made available for stockpiles in Thailand.’’.
(c) LOCATION OF STOCKPILES OF DEFENSE ARTI-
CLES.—Section 514(c) of such Act (22 U.S.C. 2321h(c)) is
amended to read as follows:
‘‘(c) LOCATION OF STOCKPILES OF DEFENSE ARTI-
CLES.—
‘‘(1) LIMITATION.—Except as provided in para-
graph (2), no stockpile of defense articles may be lo-
cated outside the boundaries of a United States mili-
tary base or a military base used primarily by the
United States.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
apply with respect to stockpiles of defense articles lo-
209
cated in the Republic of Korea, Thailand, any coun-
try that is a member of the North Atlantic Treaty Or-
ganization, any country that is a major non-NATO
ally, or any other country the President may des-
ignate. At least 15 days before designating a country
pursuant to the last clause of the preceding sentence,
the President shall notify the congressional commit-
tees specified in section 634A(a) in accordance with
the procedures applicable to reprogramming notifica-
tions under that section.’’.
SEC. 3123. TRANSFER OF EXCESS DEFENSE ARTICLES.
(a) IN GENERAL.—Section 516 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2321j) is amended to read as
follows:
‘‘SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE AR-
TICLES.
‘‘(a) AUTHORIZATION.—The President is authorized to
transfer excess defense articles under this section to coun-
tries for which receipt of such articles was justified pursu-
ant to the annual congressional presentation documents for
military assistance programs, or for programs under chap-
ter 8 of part I of this Act, submitted under section 634 of
this Act, or for which receipt of such articles was separately
justified, for the fiscal year in which the transfer is author-
ized.
210
‘‘(b) LIMITATIONS
ON TRANSFERS.—The President
may transfer excess defense articles under this section only
if—
‘‘(1) such articles are drawn from existing stocks
of the Department of Defense;
‘‘(2) funds available to the Department of De-
fense for the procurement of defense equipment are not
expended in connection with the transfer;
‘‘(3) the transfer of such articles will not have an
adverse impact on the military readiness of the Unit-
ed States;
‘‘(4) with respect to a proposed transfer of such
articles on a grant basis, such a transfer is preferable
to a transfer on a sales basis, after taking into ac-
count the potential proceeds from, and likelihood of,
such sales, and the comparative foreign policy benefits
that may accrue to the United States as the result of
a transfer on either a grant or sales basis;
‘‘(5) the President determines that the transfer of
such articles will not have an adverse impact on the
national technology and industrial base, and particu-
larly, will not reduce the opportunities of entities in
the national technology and industrial base to sell
new or used equipment to the countries to which such
articles are transferred; and
211
‘‘(6) the transfer of such articles is consistent
with the policy framework for the Eastern Mediterra-
nean established under section 620C of this Act.
‘‘(c) TERMS OF TRANSFERS.—
‘‘(1) NO COST TO RECIPIENT COUNTRY.—Excess
defense articles may be transferred under this section
without cost to the recipient country.
‘‘(2) PRIORITY.—Notwithstanding any other pro-
vision of law, the delivery of excess defense articles
under this section to member countries of the North
Atlantic Treaty Organization (NATO) on the south-
ern and southeastern flank of NATO and to major
non-NATO allies on such southern and southeastern
flank shall be given priority to the maximum extent
feasible over the delivery of such excess defense articles
to other countries.
‘‘(d) WAIVER OF REQUIREMENT FOR REIMBURSEMENT
OF DEPARTMENT OF DEFENSE EXPENSES.—Section 632(d)
shall not apply with respect to transfers of excess defense
articles (including transportation and related costs) under
this section.
‘‘(e) TRANSPORTATION AND RELATED COSTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), funds available to the Department of De-
fense may not be expended for crating, packing, han-
212
dling, and transportation of excess defense articles
transferred under the authority of this section.
‘‘(2) EXCEPTION.—The President may provide
for the transportation of excess defense articles with-
out charge to a country for the costs of such transpor-
tation if—
‘‘(A) it is determined that it is in the na-
tional interest of the United States to do so;
‘‘(B) the recipient is a developing country
receiving less than $10,000,000 of assistance
under chapter 5 of part II of this Act (relating
to international military education and train-
ing) or section 23 of the Arms Export Control
Act (22 U.S.C. 2763; relating to the Foreign
Military Financing program) in the fiscal year
in which the transportation is provided;
‘‘(C) the total weight of the transfer does not
exceed 25,000 pounds; and
‘‘(D) such transportation is accomplished
on a space available basis.
‘‘(f) ADVANCE
NOTIFICATION
TO
CONGRESS
FOR
TRANSFER OF CERTAIN EXCESS DEFENSE ARTICLES.—
‘‘(1) IN
GENERAL.—The President may not
transfer excess defense articles that are significant
military equipment (as defined in section 47(9) of the
213
Arms Export Control Act) or excess defense articles
valued (in terms of original acquisition cost) at
$7,000,000 or more, under this section or under the
Arms Export Control Act (22 U.S.C. 2751 et seq.)
until 15 days after the date on which the President
has provided notice of the proposed transfer to the
congressional committees specified in section 634A(a)
in 
accordance 
with 
procedures 
applicable 
to
reprogramming notifications under that section.
‘‘(2) CONTENTS.—Such notification shall in-
clude—
‘‘(A) a statement outlining the purposes for
which the article is being provided to the coun-
try, including whether such article has been pre-
viously provided to such country;
‘‘(B) an assessment of the impact of the
transfer on the military readiness of the United
States;
‘‘(C) an assessment of the impact of the
transfer on the national technology and indus-
trial base, and particularly, the impact on op-
portunities of entities in the national technology
and industrial base to sell new or used equip-
ment to the countries to which such articles are
to be transferred; and
214
‘‘(D) a statement describing the current
value of such article and the value of such article
at acquisition.
‘‘(g) AGGREGATE ANNUAL LIMITATION.—The aggre-
gate value of excess defense articles transferred to countries
under this section in any fiscal year may not exceed
$350,000,000.
‘‘(h) CONGRESSIONAL PRESENTATION DOCUMENTS.—
Documents described in subsection (a) justifying the trans-
fer of excess defense articles shall include an explanation
of the general purposes of providing excess defense articles
as well as a table which provides an aggregate annual total
of transfers of excess defense articles in the preceding year
by country in terms of offers and actual deliveries and in
terms of acquisition cost and current value. Such table shall
indicate whether such excess defense articles were provided
on a grant or sale basis.
‘‘(i) EXCESS COAST GUARD PROPERTY.—For purposes
of this section, the term ‘excess defense articles’ shall be
deemed to include excess property of the Coast Guard, and
the term ‘Department of Defense’ shall be deemed, with re-
spect to such excess property, to include the Coast Guard.’’.
(b) CONFORMING AMENDMENTS.—
(1) ARMS EXPORT CONTROL ACT.—Section 21(k)
of the Arms Export Control Act (22 U.S.C. 2761(k))
215
is amended by striking ‘‘the President shall’’ and all
that follows and inserting the following: ‘‘the Presi-
dent shall determine that the sale of such articles will
not have an adverse impact on the national tech-
nology and industrial base, and particularly, will not
reduce the opportunities of entities in the national
technology and industrial base to sell new or used
equipment to the countries to which such articles are
transferred.’’.
(2) REPEALS.—The following provisions of law
are hereby repealed:
(A) Section 502A of the Foreign Assistance
Act of 1961 (22 U.S.C. 2303).
(B) Sections 517 through 520 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2321k through
2321n).
(C) Section 31(d) of the Arms Export Con-
trol Act (22 U.S.C. 2771(d)).
SEC. 3124. NONLETHAL EXCESS DEFENSE ARTICLES FOR
ALBANIA.
Notwithstanding section 516(e) of the Foreign Assist-
ance Act of 1961, during each of the fiscal years 1996 and
1997, funds available to the Department of Defense may
be expended for crating, packing, handling, and transpor-
216
tation of nonlethal excess defense articles transferred under
the authority of section 516 of such Act to Albania.
CHAPTER 2—INTERNATIONAL MILITARY
EDUCATION AND TRAINING
SEC. 3141. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated $39,781,000
for each of the fiscal years 1996 and 1997 to carry out chap-
ter 5 of part II of the Foreign Assistance Act of 1961 (22
U.S.C. 2347 et seq.).
SEC. 3142. ASSISTANCE FOR INDONESIA.
Funds made available for fiscal years 1996 and 1997
to carry out chapter 5 of part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2347 et seq.) may be obligated for
Indonesia only for expanded military and education train-
ing that meets the requirements of clauses (i) through (iv)
of the second sentence of section 541 of such Act (22 U.S.C.
2347).
SEC. 3143. ADDITIONAL REQUIREMENTS.
(a) GENERAL AUTHORITY.—Section 541 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2347) is amended in the
second sentence in the matter preceding clause (i) by insert-
ing ‘‘and individuals who are not members of the govern-
ment’’ after ‘‘legislators’’.
(b) TEST PILOT EXCHANGE TRAINING.—Section 544
of such Act (22 U.S.C. 2347c) is amended—
217
(1) by striking ‘‘In carrying out this chapter’’
and inserting ‘‘(a) In carrying out this chapter’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) The President may provide for the attendance of
foreign military and civilian defense personnel at test pilot
flight schools in the United States without charge, and with-
out charge to funds available to carry out this chapter (not-
withstanding section 632(d) of this Act), if such attendance
is pursuant to an agreement providing for the exchange of
students on a one-for-one basis each fiscal year between
those United States test pilot flight schools and comparable
flight test pilot schools of foreign countries.’’.
(c) ASSISTANCE FOR CERTAIN FOREIGN COUNTRIES.—
Chapter 5 of part II of such Act (22 U.S.C. 2347 et seq.)
is amended by adding at the end the following new section:
‘‘SEC. 546. ASSISTANCE FOR CERTAIN FOREIGN COUNTRIES.
‘‘Of the amounts made available for a fiscal year for
assistance under this chapter, not more than $300,000 for
such fiscal year may be made available for assistance on
a grant basis for any high-income foreign country for mili-
tary education and training of military and related civil-
ian personnel of such country if such country agrees to pro-
vide for the transportation and living allowances of such
military and related civilian personnel.’’.
218
CHAPTER 3—ANTITERRORISM
ASSISTANCE
SEC. 3151. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated $20,000,000 for fiscal year 1996 and $25,000,000
for fiscal year 1997 to carry out chapter 8 of part II of
the Foreign Assistance Act of 1961 (22 U.S.C. 2349aa et
seq.).
(b) AVAILABILITY OF AMOUNTS.—Amounts authorized
to be appropriated under subsection (a) are authorized to
remain available until expended.
SEC. 3152. ANTITERRORISM TRAINING ASSISTANCE.
(a) IN GENERAL.—Section 571 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2349aa) is amended by striking
‘‘Subject to the provisions of this chapter’’ and inserting
‘‘Notwithstanding any other provision of law that restricts
assistance to foreign countries (other than sections 502B
and 620A of this Act)’’.
(b) LIMITATIONS.—Section 573 of such Act (22 U.S.C.
2349aa–2) is amended—
(1) in the heading, by striking ‘‘SPECIFIC AU-
THORITIES AND’’;
(2) by striking subsection (a);
(3) by redesignating subsections (b) through (f)
as subsections (a) through (e), respectively; and
219
(4) in subsection (c) (as redesignated)—
(A) by striking paragraphs (1) and (2);
(B) 
by 
redesignating 
paragraphs 
(3)
through (5) as paragraphs (1) through (3), re-
spectively; and
(C) by amending paragraph (2) (as redesig-
nated) to read as follows:
‘‘(2)(A) Except as provided in subparagraph (B),
funds made available to carry out this chapter shall not
be made available for the procurement of weapons and am-
munition.
‘‘(B) Subparagraph (A) shall not apply to small arms
and ammunition in categories I and III of the United
States Munitions List that are integrally and directly relat-
ed to antiterrorism training provided under this chapter
if, at least 15 days before obligating those funds, the Presi-
dent notifies the appropriate congressional committees spec-
ified in section 634A of this Act in accordance with the
procedures applicable to reprogramming notifications
under such section.
‘‘(C) The value (in terms of original acquisition cost)
of all equipment and commodities provided under this
chapter in any fiscal year may not exceed 25 percent of
the funds made available to carry out this chapter for that
fiscal year.’’.
220
(c) ANNUAL REPORT.—Section 574 of such Act (22
U.S.C. 2349aa–3) is hereby repealed.
(d) TECHNICAL
CORRECTIONS.—Section 575 (22
U.S.C. 2349aa–4) and section 576 (22 U.S.C. 2349aa–5)
of such Act are redesignated as sections 574 and 575, respec-
tively.
SEC. 3153. RESEARCH AND DEVELOPMENT EXPENSES.
Funds made available for fiscal years 1996 and 1997
to carry out chapter 8 of part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2349aa et seq.; relating to
antiterrorism assistance) may be made available to the
Technical Support Working Group of the Department of
State for research and development expenses related to con-
traband detection technologies or for field demonstrations
of such technologies (whether such field demonstrations take
place in the United States or outside the United States).
CHAPTER 4—NARCOTICS CONTROL
ASSISTANCE
SEC. 3161. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated $213,000,000 for each of the fiscal years 1996 and
1997 to carry out chapter 8 of part I of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2291 et seq.).
221
(b) AVAILABILITY OF AMOUNTS.—Amounts authorized
to be appropriated under subsection (a) are authorized to
remain available until expended.
SEC. 3162. ADDITIONAL REQUIREMENTS.
(a) POLICY
AND GENERAL AUTHORITIES.—Section
481(a) of the Foreign Assistance Act (22 U.S.C. 2291(a))
is amended—
(1) in paragraph (1)—
(A) by redesignating subparagraphs (D)
through (F) as subparagraphs (E) through (G),
respectively; and
(B) by inserting after subparagraph (C) the
following new subparagraph:
‘‘(D) International criminal activities, particu-
larly international narcotics trafficking, money laun-
dering, and corruption, endanger political and eco-
nomic stability and democratic development, and as-
sistance for the prevention and suppression of inter-
national criminal activities should be a priority for
the United States.’’; and
(2) in paragraph (4), by adding before the pe-
riod at the end the following: ‘‘, or for other related
anticrime purposes’’.
(b) CONTRIBUTIONS AND REIMBURSEMENT.—Section
482(c) of that Act (22 U.S.C. 2291a(c)) is amended—
222
(1) by striking ‘‘CONTRIBUTION BY RECIPIENT
COUNTRY.—To’’ and inserting ‘‘CONTRIBUTIONS AND
REIMBURSEMENT.—(1) To’’; and
(2) by adding at the end the following new para-
graphs:
‘‘(2)(A) The President is authorized to accept contribu-
tions from other foreign governments to carry out the pur-
poses of this chapter. Such contributions shall be deposited
as an offsetting collection to the applicable appropriation
account and may be used under the same terms and condi-
tions as funds appropriated pursuant to this chapter.
‘‘(B) At the time of submission of the annual congres-
sional presentation documents required by section 634(a),
the President shall provide a detailed report on any con-
tributions received in the preceding fiscal year, the amount
of such contributions, and the purposes for which such con-
tributions were used.
‘‘(3) The President is authorized to provide assistance
under this chapter on a reimbursable basis. Such reimburse-
ments shall be deposited as an offsetting collection to the
applicable appropriation and may be used under the same
terms and conditions as funds appropriated pursuant to
this chapter.’’.
(c) IMPLEMENTATION OF LAW ENFORCEMENT ASSIST-
ANCE.—Section 482 of such Act (22 U.S.C. 2291a) is
223
amended by adding at the end the following new sub-
sections:
‘‘(f) TREATMENT OF FUNDS.—Funds transferred to
and consolidated with funds appropriated pursuant to this
chapter may be made available on such terms and condi-
tions as are applicable to funds appropriated pursuant to
this chapter. Funds so transferred or consolidated shall be
apportioned directly to the bureau within the Department
of State responsible for administering this chapter.
‘‘(g) EXCESS PROPERTY.—For purposes of this chap-
ter, the Secretary of State may use the authority of section
608, without regard to the restrictions of such section, to
receive nonlethal excess property from any agency of the
United States Government for the purpose of providing such
property to a foreign government under the same terms and
conditions as funds authorized to be appropriated for the
purposes of this chapter.’’.
(d) REPORTING REQUIREMENTS.—(1) Section 489 of
such Act (22 U.S.C. 2291h) is amended—
(A) in the section heading, by striking ‘‘FOR
FISCAL YEAR 1995’’;
(B) by striking ‘‘(a) INTERNATIONAL NARCOTICS
CONTROL STRATEGY REPORT.—’’; and
(C) by striking subsections (b) and (c).
224
(2) Section 489A of such Act (22 U.S.C. 2291i) is here-
by repealed.
(e) CERTIFICATION REQUIREMENTS.—(1) Section 490
of such Act (22 U.S.C. 2291j) is amended—
(A) in the section heading by striking ‘‘FOR
FISCAL YEAR 1995’’; and
(B) by striking subsection (i).
(2) Section 490A of such Act (22 U.S.C. 2291k) is here-
by repealed.
SEC. 3163. NOTIFICATION REQUIREMENT.
(a) IN GENERAL.—The authority of section 1003(d) of
the National Narcotics Control Leadership Act of 1988 (21
U.S.C. 1502(d)) may be exercised with respect to funds au-
thorized to be appropriated pursuant to the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2151 et seq.) and with respect
to the personnel of the Department of State only to the ex-
tent that the appropriate congressional committees have
been notified 15 days in advance in accordance with the
reprogramming procedures applicable under section 634A
of that Act (22 U.S.C. 2394).
(b) DEFINITION.—For purposes of this section, the
term ‘‘appropriate congressional committees’’ means the
Committee on International Relations and the Committee
on Appropriations of the House of Representatives and the
225
Committee on Foreign Relations and the Committee on Ap-
propriations of the Senate.
SEC. 3164. WAIVER OF RESTRICTIONS FOR NARCOTICS-RE-
LATED ECONOMIC ASSISTANCE.
For each of the fiscal years 1996 and 1997, narcotics-
related assistance under part I of the Foreign Assistance
Act of 1961 (22 U.S.C. 2151 et seq.) may be provided not-
withstanding any other provision of law that restricts as-
sistance to foreign countries (other than section 490(e) or
section 502B of that Act (22 U.S.C. 2291j(e) and 2304))
if, at least 15 days before obligating funds for such assist-
ance, the President notifies the appropriate congressional
committees (as defined in section 481(e) of that Act (22
U.S.C. 2291(e))) in accordance with the procedures applica-
ble to reprogramming notifications under section 634A of
that Act (22 U.S.C. 2394).
CHAPTER 5—NONPROLIFERATION AND
DISARMAMENT FUND
SEC. 3171. NONPROLIFERATION AND DISARMAMENT FUND.
(a) IN GENERAL.—There are authorized to be appro-
priated $25,000,000 for each of the fiscal years 1996 and
1997 to carry out bilateral and multilateral nonprolifera-
tion and disarmament activities for the independent states
of the former Soviet Union, countries other than the inde-
pendent states of the former Soviet Union, and inter-
226
national organizations under section 504 of the Freedom
for Russia and Emerging Eurasian Democracies and Open
Markets Support Act of 1992 (22 U.S.C. 5854).
(b) SUPERSEDES OTHER LAWS.—Funds made avail-
able for fiscal years 1996 and 1997 under the authority of
section 504 of the Freedom for Russia and Emerging Eur-
asian Democracies and Open Markets Support Act of 1992
(22 U.S.C. 5854) may be used notwithstanding any other
provision of law.
(c) AVAILABILITY OF AMOUNTS.—Amounts authorized
to be appropriated under subsection (a) are authorized to
remain available until expended.
CHAPTER 6—OTHER PROVISIONS
SEC. 3181. STANDARDIZATION OF CONGRESSIONAL REVIEW
PROCEDURES FOR ARMS TRANSFERS.
(a) THIRD
COUNTRY
TRANSFERS
UNDER
FMS
SALES.—Section 3(d)(2) of the Arms Export Control Act
(22 U.S.C. 2753(d)(2)) is amended—
(1) in subparagraph (A), by striking ‘‘, as pro-
vided for in sections 36(b)(2) and 36(b)(3) of this
Act’’;
(2) in subparagraph (B), by striking ‘‘law’’ and
inserting ‘‘joint resolution’’; and
(3) by adding at the end the following:
227
‘‘(C) If the President states in his certification under
subparagraph (A) or (B) that an emergency exists which
requires that consent to the proposed transfer become effec-
tive immediately in the national security interests of the
United States, thus waiving the requirements of that sub-
paragraph, the President shall set forth in the certification
a detailed justification for his determination, including a
description of the emergency circumstances which neces-
sitate immediate consent to the transfer and a discussion
of the national security interests involved.
‘‘(D)(i) Any joint resolution under this paragraph
shall be considered in the Senate in accordance with the
provisions of section 601(b) of the International Security
Assistance and Arms Export Control Act of 1976.
‘‘(ii) For the purpose of expediting the consideration
and enactment of joint resolutions under this paragraph,
a motion to proceed to the consideration of any such joint
resolution after it has been reported by the appropriate
committee shall be treated as highly privileged in the House
of Representatives.’’.
(b) THIRD COUNTRY TRANSFERS UNDER COMMERCIAL
SALES.—Section 3(d)(3) of such Act (22 U.S.C. 2753(d)(3))
is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’;
(2) in the first sentence—
228
(A) by striking ‘‘at least 30 calendar days’’;
and
(B) by striking ‘‘report’’ and inserting ‘‘cer-
tification’’; and
(3) by striking the last sentence and inserting
the following: ‘‘Such certification shall be submitted—
‘‘(i) at least 15 calendar days before such consent
is given in the case of a transfer to a country which
is a member of the North Atlantic Treaty Organiza-
tion or Australia, Japan, or New Zealand; and
‘‘(ii) at least 30 calendar days before such con-
sent is given in the case of a transfer to any other
country,
unless the President states in his certification that an emer-
gency exists which requires that consent to the proposed
transfer become effective immediately in the national secu-
rity interests of the United States. If the President states
in his certification that such an emergency exists (thus
waiving the requirements of clause (i) or (ii), as the case
may be, and of subparagraph (B)) the President shall set
forth in the certification a detailed justification for his de-
termination, including a description of the emergency cir-
cumstances which necessitate that consent to the proposed
transfer become effective immediately and a discussion of
the national security interests involved.
229
‘‘(B) Consent to a transfer subject to subparagraph (A)
shall become effective after the end of the 15-day or 30-day
period specified in subparagraph (A)(i) or (ii), as the case
may be, only if the Congress does not enact, within that
period, a joint resolution prohibiting the proposed transfer.
‘‘(C)(i) Any joint resolution under this paragraph
shall be considered in the Senate in accordance with the
provisions of section 601(b) of the International Security
Assistance and Arms Export Control Act of 1976.
‘‘(ii) For the purpose of expediting the consideration
and enactment of joint resolutions under this paragraph,
a motion to proceed to the consideration of any such joint
resolution after it has been reported by the appropriate
committee shall be treated as highly privileged in the House
of Representatives.’’.
(c) COMMERCIAL SALES.—Section 36(c)(2) of such Act
(22 U.S.C. 2753(c)(2)) is amended by amending subpara-
graphs (A) and (B) to read as follows:
‘‘(A) in the case of a license for an export to the
North Atlantic Treaty Organization, any member
country of that Organization or Australia, Japan, or
New Zealand, shall not be issued until at least 15 cal-
endar days after the Congress receives such certifi-
cation, and shall not be issued then if the Congress,
230
within that 15-day period, enacts a joint resolution
prohibiting the proposed export; and
‘‘(B) in the case of any other license, shall not
be issued until at least 30 calendar days after the
Congress receives such certification, and shall not be
issued then if the Congress, within that 30-day pe-
riod, enacts a joint resolution prohibiting the pro-
posed export.’’.
(d) COMMERCIAL MANUFACTURING AGREEMENTS.—
Section 36(d) of such Act (22 U.S.C. 2753(d)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’;
(2) by striking ‘‘for or in a country not a mem-
ber of the North Atlantic Treaty Organization’’; and
(3) by adding at the end the following:
‘‘(2) A certification under this subsection shall be sub-
mitted—
‘‘(A) at least 15 days before approval is given in
the case of an agreement for or in a country which
is a member of the North Atlantic Treaty Organiza-
tion or Australia, Japan, or New Zealand; and
‘‘(B) at least 30 days before approval is given in
the case of an agreement for or in any other country;
unless the President states in his certification that an emer-
gency exists which requires the immediate approval of the
231
agreement in the national security interests of the United
States.
‘‘(3) If the President states in his certification that an
emergency exists which requires the immediate approval of
the agreement in the national security interests of the Unit-
ed States, thus waiving the requirements of paragraph (4),
he shall set forth in the certification a detailed justification
for his determination, including a description of the emer-
gency circumstances which necessitate the immediate ap-
proval of the agreement and a discussion of the national
security interests involved.
‘‘(4) Approval for an agreement subject to paragraph
(1) may not be given under section 38 if the Congress, with-
in the 15-day or 30-day period specified in paragraph
(2)(A) or (B), as the case may be, enacts a joint resolution
prohibiting such approval.
‘‘(5)(A) Any joint resolution under paragraph (4) shall
be considered in the Senate in accordance with the provi-
sions of section 601(b) of the International Security Assist-
ance and Arms Export Control Act of 1976.
‘‘(B) For the purpose of expediting the consideration
and enactment of joint resolutions under paragraph (4), a
motion to proceed to the consideration of any such joint
resolution after it has been reported by the appropriate
232
committee shall be treated as highly privileged in the House
of Representatives.’’.
(e) GOVERNMENT-TO-GOVERNMENT LEASES.—
(1) CONGRESSIONAL
REVIEW
PERIOD.—Section
62 of such Act (22 U.S.C. 2796a) is amended—
(A) in subsection (a), by striking ‘‘Not less
than 30 days before’’ and inserting ‘‘Before’’;
(B) in subsection (b)—
(i) by striking ‘‘determines, and imme-
diately reports to the Congress’’ and insert-
ing ‘‘states in his certification’’; and
(ii) by adding at the end of the sub-
section the following: ‘‘If the President
states in his certification that such an emer-
gency exists, he shall set forth in the certifi-
cation a detailed justification for his deter-
mination, including a description of the
emergency circumstances which necessitate
that the lease be entered into immediately
and a discussion of the national security in-
terests involved.’’; and
(C) by adding at the end of the section the
following:
‘‘(c) The certification required by subsection (a) shall
be transmitted—
233
‘‘(1) not less than 15 calendar days before the
agreement is entered into or renewed in the case of an
agreement with the North Atlantic Treaty Organiza-
tion, any member country of that Organization or
Australia, Japan, or New Zealand; and
‘‘(2) not less than 30 calendar days before the
agreement is entered into or renewed in the case of an
agreement with any other organization or country.’’.
(2) 
CONGRESSIONAL
DISAPPROVAL.—Section
63(a) of such Act (22 U.S.C. 2796b(a)) is amended—
(A) by striking ‘‘(a)(1)’’ and inserting
‘‘(a)’’;
(B) by striking out the ‘‘30 calendar days
after receiving the certification with respect to
that proposed agreement pursuant to section
62(a),’’ and inserting in lieu thereof ‘‘the 15-day
or 30-day period specified in section 62(c) (1) or
(2), as the case may be,’’; and
(C) by striking paragraph (2).
(f) EFFECTIVE DATE.—The amendments made by this
section apply with respect to certifications required to be
submitted on or after the date of the enactment of this Act.
234
SEC. 3182. STANDARDIZATION OF THIRD COUNTRY TRANS-
FERS OF DEFENSE ARTICLES.
Section 3 of the Arms Export Control Act (22 U.S.C.
2753) is amended by inserting after subsection (a) the fol-
lowing new subsection:
‘‘(b) The consent of the President under paragraph (2)
of subsection (a) or under paragraph (1) of section 505(a)
of the Foreign Assistance Act of 1961 (as it relates to sub-
paragraph (B) of such paragraph) shall not be required for
the transfer by a foreign country or international organiza-
tion of defense articles sold by the United States under this
Act if—
‘‘(1) such articles constitute components incor-
porated into foreign defense articles;
‘‘(2) the recipient is the government of a member
country of the North Atlantic Treaty Organization,
the Government of Australia, the Government of
Japan, or the Government of New Zealand;
‘‘(3) the United States-origin components are
not—
‘‘(A) significant military equipment (as de-
fined in section 47(9));
‘‘(B) defense articles for which notification
to Congress is required under section 36(b); and
‘‘(C) identified by regulation as Missile
Technology Control Regime items; and
235
‘‘(4) the foreign country or international organi-
zation provides notification of the transfer of the de-
fense articles to the United States Government not
later than 30 days after the date of such transfer.’’.
SEC. 3183. INCREASED STANDARDIZATION, RATIONALIZA-
TION, AND INTEROPERABILITY OF ASSIST-
ANCE AND SALES PROGRAMS.
Paragraph (6) of section 515(a) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2321i(a)(6)) is amended by
striking ‘‘among members of the North Atlantic Treaty Or-
ganization and with the Armed Forces of Japan, Australia,
and New Zealand’’.
SEC. 3184. REPEAL OF PRICE AND AVAILABILITY REPORT-
ING REQUIREMENT RELATING TO PROPOSED
SALE OF DEFENSE ARTICLES AND SERVICES.
(a) IN GENERAL.—Section 28 of the Arms Export Con-
trol Act (22 U.S.C. 2768) is hereby repealed.
(b) CONFORMING AMENDMENT.—Section 36(b) of such
Act (22 U.S.C. 2776(b)) is amended by striking paragraph
(4) of such section.
SEC. 3185. DEFINITION OF SIGNIFICANT MILITARY EQUIP-
MENT.
Section 47 of the Arms Export Control Act (22 U.S.C.
2794) is amended—
236
(1) in paragraph (7), by striking ‘‘and’’ at the
end;
(2) in paragraph (8), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new para-
graph:
‘‘(9) ‘significant military equipment’ means articles—
‘‘(A) for which special export controls are war-
ranted because of the capacity of such articles for sub-
stantial military utility or capability; and
‘‘(B) identified on the United States Munitions
List.’’.
SEC. 3186. REQUIREMENTS RELATING TO THE SPECIAL DE-
FENSE ACQUISITION FUND.
(a) ELIMINATION OF ANNUAL REPORT.—
(1) IN GENERAL.—Section 53 of the Arms Ex-
port Control Act (22 U.S.C. 2795b) is hereby re-
pealed.
(2) CONFORMING AMENDMENT.—Section 51(a)(4)
of such Act (22 U.S.C. 2795(a)(4)) is amended—
(A) by striking ‘‘(a)’’; and
(B) by striking subparagraph (B).
(b) RETURN OF CERTAIN AMOUNTS IN FUND TO THE
TREASURY.—During fiscal year 1996 the President shall
return $6,281,000 to the miscellaneous receipts account of
237
the Treasury from collections into the Special Defense Ac-
quisition Fund pursuant to section 51(b) of the Arms Ex-
port Control Act in addition to the amount of such collec-
tions to be returned for such fiscal year as indicated in the
President’s budget of the United States Government for fis-
cal year 1996.
SEC. 3187. COST OF LEASED DEFENSE ARTICLES THAT
HAVE BEEN LOST OR DESTROYED.
Section 61(a)(4) of the Arms Export Control Act (22
U.S.C. 2796(a)(4)) is amended by striking ‘‘and the re-
placement cost’’ and all that follows and inserting the fol-
lowing: ‘‘and, if the articles are lost or destroyed while
leased—
‘‘(A) in the event the United States intends
to replace the articles lost or destroyed, the re-
placement cost (less any depreciation in the
value) of the articles; or
‘‘(B) in the event the United States does not
intend to replace the articles lost or destroyed,
an amount not less than the actual value (less
any depreciation in the value) specified in the
lease agreement.’’.
SEC. 3188. DESIGNATION OF MAJOR NON-NATO ALLIES.
(a) DESIGNATION.—
238
(1) NOTICE TO CONGRESS.—Chapter 2 of part II
of the Foreign Assistance Act of 1961 (22 U.S.C. 2311
et seq.), as amended by this Act, is further amended
by adding at the end the following new section:
‘‘SEC. 517. DESIGNATION OF MAJOR NON-NATO ALLIES.
‘‘(a) NOTICE TO CONGRESS.—The President shall no-
tify the Congress in writing at least 30 days before—
‘‘(1) designating a country as a major non-
NATO ally for purposes of this Act and the Arms Ex-
port Control Act (22 U.S.C. 2751 et seq.); or
‘‘(2) terminating such a designation.
‘‘(b) INITIAL DESIGNATIONS.—Australia, Egypt, Is-
rael, Japan, the Republic of Korea, and New Zealand shall
be deemed to have been so designated by the President as
of the effective date of this section, and the President is not
required to notify the Congress of such designation of those
countries.’’.
(2) DEFINITION.—Section 644 of such Act (22
U.S.C. 2403) is amended by adding at the end the fol-
lowing:
‘‘(q) ‘Major non-NATO ally’ means a country which
is designated in accordance with section 517 as a major
non-NATO ally for purposes of this Act and the Arms Ex-
port Control Act (22 U.S.C. 2751 et seq.).’’.
239
(3) EXISTING DEFINITIONS.—(A) The last sen-
tence of section 21(g) of the Arms Export Control Act
(22 U.S.C. 2761(g)) is repealed.
(B) Section 65(d) of such Act is amended—
(i) by striking ‘‘or major non-NATO’’; and
(ii) by striking out ‘‘or a’’ and all that fol-
lows through ‘‘Code’’.
(b) COOPERATIVE TRAINING AGREEMENTS.—Section
21(g) of the Arms Export Control Act (22 U.S.C. 2761(g))
is amended in the first sentence by striking ‘‘similar agree-
ments’’ and all that follows through ‘‘other countries’’ and
inserting ‘‘similar agreements with countries’’.
SEC. 3189. CERTIFICATION THRESHOLDS.
(a) INCREASE IN DOLLAR THRESHOLDS.—The Arms
Export Control Act (22 U.S.C. 2751 et seq.) is amended—
(1) in section 3(d) (22 U.S.C. 2753(d))—
(A) in paragraphs (1) and (3), by striking
‘‘$14,000,000’’ each place it appears and insert-
ing ‘‘$25,000,000’’; and
(B) in paragraphs (1) and (3), by striking
‘‘$50,000,000’’ each place it appears and insert-
ing ‘‘$75,000,000’’;
(2) in section 36 (22 U.S.C. 2776)—
240
(A) in subsections (b)(1), (b)(5)(C), and
(c)(1), by striking ‘‘$14,000,000’’ each place it
appears and inserting ‘‘$25,000,000’’;
(B) in subsections (b)(1), (b)(5)(C), and
(c)(1), by striking ‘‘$50,000,000’’ each place it
appears and inserting ‘‘$75,000,000’’; and
(C) in subsections (b)(1) and (b)(5)(C), by
striking ‘‘$200,000,000’’ each place it appears
and inserting ‘‘$300,000,000’’; and
(3) in section 63(a) (22 U.S.C. 2796b(a))—
(A) by striking ‘‘$14,000,000’’ and inserting
‘‘$25,000,000’’; and
(B) by striking ‘‘$50,000,000’’ and inserting
‘‘$75,000,000’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) apply with respect to certifications submitted
on or after the date of the enactment of this Act.
SEC. 3190. COMPETITIVE PRICING FOR SALES OF DEFENSE
ARTICLES AND SERVICES.
(a) COSTING BASIS.—Section 22 of the Arms Export
Control Act (22 U.S.C. 2762) is amended by adding at the
end the following:
‘‘(d) COMPETITIVE PRICING.—Procurement contracts
made in implementation of sales under this section for de-
fense articles and defense services wholly paid from funds
241
made available on a nonrepayable basis shall be priced on
the same costing basis with regard to profit, overhead, inde-
pendent research and development, bid and proposal, and
other costing elements, as is applicable to procurements of
like items purchased by the Department of Defense for its
own use.’’.
(b) EFFECTIVE DATE AND IMPLEMENTING REGULA-
TIONS.—Section 22(d) of the Arms Export Control Act, as
added by subsection (a)—
(1) shall take effect on the 60th day following the
date of the enactment of this Act;
(2) shall be applicable only to contracts made in
implementation of sales made after such effective date;
and
(3) shall be implemented by revised procurement
regulations, which shall be issued prior to such effec-
tive date.
SEC. 3191. DEPLETED URANIUM AMMUNITION.
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. 620H. DEPLETED URANIUM AMMUNITION.
‘‘(a) PROHIBITION.—Except as provided in subsection
(b), none of the funds made available to carry out this Act
242
or any other Act may be made available to facilitate in
any way the sale of M–833 antitank shells or any com-
parable antitank shells containing a depleted uranium pen-
etrating component to any country other than—
‘‘(1) a country that is a member of the North At-
lantic Treaty Organization;
‘‘(2) a country that has been designated as a
major non-NATO ally (as defined in section 644(q));
or
‘‘(3) Taiwan.
‘‘(b) EXCEPTION.—The prohibition contained in sub-
section (a) shall not apply with respect to the use of funds
to facilitate the sale of antitank shells to a country if the
President determines that to do so is in the national secu-
rity interest of the United States.’’.
SEC. 3192. END-USE MONITORING OF DEFENSE ARTICLES
AND DEFENSE SERVICES.
(a) IN GENERAL.—The Arms Export Control Act (22
U.S.C.2751 et seq.) is amended by inserting after chapter
3 the following new chapter:
243
‘‘CHAPTER 3A—END-USE MONITORING OF
DEFENSE 
ARTICLES 
AND 
DEFENSE
SERVICES
‘‘SEC. 40A. END-USE MONITORING OF DEFENSE ARTICLES
AND DEFENSE SERVICES.
‘‘(a) ESTABLISHMENT OF MONITORING PROGRAM.—
‘‘(1) IN GENERAL.—In order to improve account-
ability with respect to defense articles and defense
services sold, leased, or exported under this Act or the
Foreign Assistance Act of 1961 (22 U.S.C. 2151 et
seq.), the Secretary of State shall establish a program
which provides for the end-use monitoring of such ar-
ticles and services.
‘‘(2) REQUIREMENTS OF PROGRAM.—To the ex-
tent practicable, such program—
‘‘(A) shall provide for the end-use monitor-
ing of defense articles and defense services in ac-
cordance with the standards that apply for iden-
tifying high-risk exports for regular end-use ver-
ification developed under section 38(g)(7) of this
Act (commonly referred to as the ‘Blue Lantern’
program); and
‘‘(B) shall be designed to provide reasonable
assurance that—
244
‘‘(i) the recipient is complying with the
requirements imposed by the United States
Government with respect to use, transfers,
and security of defense articles and defense
services; and
‘‘(ii) such articles and services are
being used for the purposes for which they
are provided.
‘‘(b) CONDUCT OF PROGRAM.—In carrying out the
program established under subsection (a), the Secretary
shall ensure that the program—
‘‘(1) provides for the end-use verification of de-
fense articles and defense services that incorporate
sensitive technology, defense articles and defense serv-
ices that are particularly vulnerable to diversion or
other misuse, or defense articles or defense services
whose diversion or other misuse could have significant
consequences; and
‘‘(2) prevents the diversion (through reverse engi-
neering or other means) of technology incorporated in
defense articles.
‘‘(c) MONITORING RESPONSIBILITIES.—
‘‘(1) IN GENERAL.—Pursuant to subsection (a),
sections 3 and 38 of this Act, and sections 505, 622,
and 623 of the Foreign Assistance Act of 1961, the
245
Secretary of State, in consultation with the Secretary
of Defense and officials of appropriate other Federal
agencies, shall provide for the monitoring of defense
articles and defense services described in subsection
(a).
‘‘(2) ADDITIONAL
PERSONNEL.—Upon the re-
quest of the Secretary of State, the Secretary of De-
fense or the Secretary of the Treasury, as the case
may be, shall provide to the agency primarily respon-
sible for the licensing of exports under this section, on
a nonreimbursable basis, personnel with appropriate
expertise to assist in the end-use monitoring and en-
forcement functions under this section and section 38
of this Act.
‘‘(d) REPORT TO CONGRESS.—Not later than 6 months
after the date of the enactment of the Foreign Aid Reduction
Act of 1995, and annually thereafter as a part of the annual
congressional presentation documents submitted under sec-
tion 634 of the Foreign Assistance Act of 1961, the Presi-
dent shall transmit to the Congress a report describing the
actions taken to implement this section.
‘‘(e) THIRD COUNTRY TRANSFERS.—For purposes of
this section, defense articles and defense services sold, leased,
or exported under this Act or the Foreign Assistance Act
of 1961 (22 U.S.C. 2151 et seq.) includes defense articles
246
and defense services that are transferred to a third country
or other third party.’’.
(b) EFFECTIVE DATES.—Section 40A of the Arms Ex-
port Control Act, as added by subsection (a), applies with
respect to defense articles and defense services provided be-
fore or after the date of the enactment of this Act.
SEC. 3193. BROKERING ACTIVITIES RELATING TO COMMER-
CIAL SALES OF DEFENSE ARTICLES AND
SERVICES.
(a) IN GENERAL.—Section 38(b)(1)(A) of the Arms
Export Control Act (22 U.S.C. 2778(b)(1)(A)) is amend-
ed—
(1) in the first sentence, by striking ‘‘As pre-
scribed in regulations’’ and inserting ‘‘(i) As pre-
scribed in regulations’’; and
(2) by adding at the end the following new
clause:
‘‘(ii)(I) As prescribed in regulations issued under this
section, every person (other than an officer or employee of
the United States Government acting in official capacity)
who engages in the business of brokering activities with re-
spect to the manufacture, export, import, or transfer of any
defense article or defense service designated by the President
under subsection (a)(1), or in the business of brokering ac-
tivities with respect to the manufacture, export, import, or
247
transfer of any foreign defense article or defense service (as
defined in subclause (IV)), shall register with the United
States Government agency charged with the administration
of this section, and shall pay a registration fee which shall
be prescribed by such regulations.
‘‘(II) Such brokering activities shall include the fi-
nancing, transportation, freight forwarding, or the taking
of any other action that facilitates the manufacture, export,
or import of a defense article or defense service.
‘‘(III) No person may engage in the business of
brokering activities without a license, issued in accordance
with this Act, except that no license shall be required for
such activities undertaken by or for an agency of the United
States Government—
‘‘(aa) for official use by an agency of the United
States Government; or
‘‘(bb) for carrying out any foreign assistance or
sales program authorized by law and subject to the
control of the President by other means.
‘‘(IV) For purposes of this clause, the term ‘foreign de-
fense article or defense service’ includes any non-United
States defense article or defense service of a nature described
on the United States Munitions List regardless of whether
such article or service is of United States origin or whether
248
such article or service contains United States origin compo-
nents.’’.
(b) EFFECTIVE DATE.—Section 38(b)(1)(A)(ii) of the
Arms Export Control Act, as added by subsection (a), shall
apply with respect to brokering activities engaged in on or
after the date of the enactment of this Act.
TITLE XXXII—ECONOMIC
ASSISTANCE
CHAPTER 1—ECONOMIC SUPPORT
ASSISTANCE
SEC. 3201. ECONOMIC SUPPORT FUND.
Section 532(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2346a(a)) is amended to read as follows:
‘‘(a) There are authorized to be appropriated to the
President to carry out the purposes of this chapter
$2,356,378,000 for fiscal year 1996 and $2,283,478,000 for
fiscal year 1997.’’.
SEC. 3202. ASSISTANCE FOR ISRAEL.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1996 and 1997 for assistance
under chapter 4 of part II of the Foreign Assistance Act
of 1961 (22 U.S.C. 2346 et seq.; relating to the economic
support fund), not less than $1,200,000,000 for each such
fiscal year shall be available only for Israel.
(b) TERMS OF ASSISTANCE.—
249
(1) CASH TRANSFER.—The total amount of funds
allocated for Israel for each fiscal year under sub-
section (a) shall be made available on a grant basis
as a cash transfer.
(2) EXPEDITED
DISBURSEMENT.—Such funds
shall be disbursed—
(A) with respect to fiscal year 1996, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Financ-
ing, and Related Programs Appropriations Act,
1996, or by October 31, 1995, whichever is later;
and
(B) with respect to fiscal year 1997, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Financ-
ing, and Related Programs Appropriations Act,
1997, or by October 31, 1996, whichever is later.
(3) ADDITIONAL
REQUIREMENT.—In exercising
the authority of this subsection, the President shall
ensure that the amount of funds provided as a cash
transfer to Israel does not cause an adverse impact on
the total level of nonmilitary exports from the United
States to Israel.
250
SEC. 3203. ASSISTANCE FOR EGYPT.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1996 and 1997 for assistance
under chapter 4 of part II of the Foreign Assistance Act
of 1961 (22 U.S.C. 2346 et seq.; relating to the economic
support fund), not less than $815,000,000 for each such fis-
cal year shall be available only for Egypt.
(b) ADDITIONAL REQUIREMENT.—In exercising the
authority of this section, the President shall ensure that the
amount of funds provided as a cash transfer to Egypt does
not cause an adverse impact on the total level of non-
military exports from the United States to Egypt.
SEC. 3204. INTERNATIONAL FUND FOR IRELAND.
(a) FUNDING.—
(1) IN GENERAL.—Of the amounts made avail-
able for fiscal years 1996 and 1997 for assistance
under chapter 4 of part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2346 et seq.; relating to the
economic support fund), not more than $29,600,000
for fiscal year 1996 and not more than $19,600,000
for fiscal year 1997 shall be available for the United
States contribution to the International Fund for Ire-
land in accordance with the Anglo-Irish Agreement
Support Act of 1986 (Public Law 99–415).
251
(2) AVAILABILITY.—Amounts made available
under paragraph (1) are authorized to remain avail-
able until expended.
(b) ADDITIONAL REQUIREMENTS.—
(1) PURPOSES.—Section 2(b) of the Anglo-Irish
Agreement Support Act of 1986 (Public Law 99–415;
100 Stat. 947) is amended by adding at the end the
following new sentences: ‘‘United States contributions
shall be used in a manner that effectively increases
employment opportunities in communities with rates
of unemployment significantly higher than the local
or urban average of unemployment in Northern Ire-
land. In addition, such contributions shall be used to
benefit individuals residing in such communities.’’.
(2) CONDITIONS
AND
UNDERSTANDINGS.—Sec-
tion 5(a) of such Act is amended—
(A) in the first sentence—
(i) by striking ‘‘The United States’’
and inserting the following:
‘‘(1) IN GENERAL.—The United States’’;
(ii) by striking ‘‘in this Act may be
used’’ and inserting the following: ‘‘in this
Act—
‘‘(A) may be used’’;
252
(iii) by striking the period and insert-
ing ‘‘; and’’; and
(iv) by adding at the end the following:
‘‘(B) may be provided to an individual or
entity in Northern Ireland only if such individ-
ual or entity is in compliance with the prin-
ciples of economic justice.’’; and
(B) in the second sentence, by striking ‘‘The
restrictions’’ and inserting the following:
‘‘(2) ADDITIONAL REQUIREMENTS.—The restric-
tions’’.
(3) PRIOR CERTIFICATIONS.—Section 5(c)(2) of
such Act is amended—
(A) in subparagraph (A), by striking ‘‘prin-
ciple of equality’’ and all that follows and insert-
ing ‘‘principles of economic justice; and’’; and
(B) in subparagraph (B), by inserting be-
fore the period at the end the following: ‘‘and
will create employment opportunities in regions
and communities of Northern Ireland suffering
the highest rates of unemployment’’.
(4) ANNUAL REPORTS.—Section 6 of such Act is
amended—
(A) in paragraph (2), by striking ‘‘and’’ at
the end;
253
(B) in paragraph (3), by striking the period
and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(4) each individual or entity receiving assist-
ance from United States contributions to the Inter-
national Fund has agreed in writing to comply with
the principles of economic justice.’’.
(5) DEFINITIONS.—Section 8 of such Act is
amended—
(A) in paragraph (1), by striking ‘‘and’’ at
the end;
(B) in paragraph (2), by striking the period
at the end and inserting a semicolon; and
(C) by adding at the end the following new
paragraphs:
‘‘(3) the term ‘Northern Ireland’ includes the
counties of Antrim, Armagh, Derry, Down, Tyrone,
and Fermanagh; and
‘‘(4) the term ‘principles of economic justice’
means the following principles:
‘‘(A) Increasing the representation of indi-
viduals from underrepresented religious groups
in the workforce, including managerial, super-
254
visory, administrative, clerical, and technical
jobs.
‘‘(B) Providing adequate security for the
protection of minority employees at the work-
place.
‘‘(C) Banning provocative sectarian or po-
litical emblems from the workplace.
‘‘(D) Providing that all job openings be ad-
vertised publicly and providing that special re-
cruitment efforts be made to attract applicants
from underrepresented religious groups.
‘‘(E) Providing that layoff, recall, and ter-
mination procedures do not favor a particular
religious group.
‘‘(F) Abolishing job reservations, appren-
ticeship restrictions, and differential employment
criteria which discriminate on the basis of reli-
gion.
‘‘(G) Providing for the development of
training programs that will prepare substantial
numbers of minority employees for skilled jobs,
including the expansion of existing programs
and the creation of new programs to train, up-
grade, and improve the skills of minority em-
ployees.
255
‘‘(H) Establishing procedures to assess,
identify, and actively recruit minority employees
with the potential for further advancement.
‘‘(I) Providing for the appointment of a
senior management staff member to be respon-
sible for the employment efforts of the entity and,
within a reasonable period of time, the imple-
mentation of the principles described in subpara-
graphs (A) through (H).’’.
(6) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect 180 days after the
date of the enactment of this Act.
SEC. 3205. LAW ENFORCEMENT ASSISTANCE.
(a) IN GENERAL.—Of the amounts made available for
fiscal years 1996 and 1997 for assistance under chapter 4
of part II of the Foreign Assistance Act of 1961 (22 U.S.C.
2346 et seq.; relating to the economic support fund), not
more than $12,000,000 for each such fiscal year shall be
available for law enforcement assistance under chapter 8
of part I of such Act (22 U.S.C. 2291 et seq.).
(b) AVAILABILITY.—Amounts made available under
subsection (a) are authorized to remain available until
expended.
256
CHAPTER 2—ASSISTANCE FOR PRIVATE
SECTOR PROGRAMS AND ACTIVITIES
SEC. 3211. PRIVATE SECTOR ENTERPRISE FUNDS.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151
et seq.) is amended by inserting after section 601 the follow-
ing new section:
‘‘SEC. 601A. PRIVATE SECTOR ENTERPRISE FUNDS.
‘‘(a) AUTHORITY.—(1) The President may provide
funds and support to Enterprise Funds designated in ac-
cordance with subsection (b) that are or have been estab-
lished for the purposes of promoting—
‘‘(A) development of the private sectors of eligible
countries, including small businesses, the agricultural
sector, and joint ventures with United States and host
country participants; and
‘‘(B) policies and practices conducive to private
sector development in eligible countries;
on the same basis as funds and support may be provided
with respect to Enterprise Funds for Poland and Hungary
under the Support for East European Democracy (SEED)
Act of 1989 (22 U.S.C. 5401 et seq.).
‘‘(2) Funds may be made available under this section
notwithstanding any other provision of law.
‘‘(b) 
COUNTRIES
ELIGIBLE
FOR
ENTERPRISE
FUNDS.—(1) Except as provided in paragraph (2), the
257
President is authorized to designate a private, nonprofit or-
ganization as eligible to receive funds and support pursuant
to this section with respect to any country eligible to receive
assistance under part I of this Act in the same manner and
with the same limitations as set forth in section 201(d) of
the Support for East European Democracy (SEED) Act of
1989 (22 U.S.C. 5421(d)).
‘‘(2) The authority of paragraph (1) shall not apply
to any country with respect to which the President is au-
thorized to designate an enterprise fund under section
498B(c) or section 498C of this Act or section 201 of the
Support for East European Democracy (SEED) Act of
1989 (22 U.S.C. 5421).
‘‘(c) TREATMENT EQUIVALENT TO ENTERPRISE FUNDS
FOR POLAND AND HUNGARY.—Except as otherwise specifi-
cally provided in this section, the provisions contained in
section 201 of the Support for East European Democracy
(SEED) Act of 1989 (22 U.S.C. 5421) (excluding the au-
thorizations of appropriations provided in subsection (b) of
that section) shall apply to any Enterprise Fund that re-
ceives funds and support under this section. The officers,
members, or employees of an Enterprise Fund that receive
funds and support under this section shall enjoy the same
status under law that is applicable to officers, members, or
employees of the Enterprise Funds for Poland and Hungary
258
under section 201 of the Support for East European Democ-
racy (SEED) Act of 1989 (22 U.S.C. 5421).
‘‘(d) REPORTING
REQUIREMENT.—Notwithstanding
any other provision of this section, the requirement of sec-
tion 201(p) of the Support for East European Democracy
(SEED) Act of 1989 (22 U.S.C. 5421(p)), that an Enter-
prise Fund shall be required to publish an annual report
not later than January 31 each year, shall not apply with
respect to an Enterprise Fund that receives funds and sup-
port under this section for the first twelve months after it
is designated as eligible to receive such funds and support.
‘‘(e) FUNDING.—
‘‘(1) IN GENERAL.—Amounts made available for
a fiscal year to carry out chapter 1 of part I of this
Act (relating to development assistance) and to carry
out chapter 4 of part II of this Act (relating to the
economic support fund) shall be available for such fis-
cal year to carry out this section, in addition to
amounts otherwise available for such purposes.
‘‘(2) AFRICAN
DEVELOPMENT.—In addition to
amounts available under paragraph (1) for a fiscal
year, amounts made available for such fiscal year to
carry out chapter 10 of part I of this Act (relating
to the Development Fund for Africa) shall be avail-
259
able for such fiscal year to carry out this section with
respect to countries in Africa.’’.
SEC. 3212. MICRO- AND SMALL ENTERPRISE DEVELOPMENT
CREDITS.
(a) IN GENERAL.—Section 108 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2151f) is amended to read as
follows:
‘‘SEC. 108. MICRO- AND SMALL ENTERPRISE DEVELOPMENT
CREDITS.
‘‘(a) FINDINGS AND POLICY.—The Congress finds and
declares that—
‘‘(1) the development of micro- and small enter-
prise, including cooperatives, is a vital factor in the
stable growth of developing countries and in the devel-
opment and stability of a free, open, and equitable
international economic system;
‘‘(2) it is, therefore, in the best interests of the
United States to assist the development of the private
sector in developing countries and to engage the
United States private sector in that process;
‘‘(3) the support of private enterprise can be
served by programs providing credit, training, and
technical assistance for the benefit of micro- and
small enterprises; and
260
‘‘(4) programs that provide credit, training, and
technical assistance to private institutions can serve
as a valuable complement to grant assistance pro-
vided for the purpose of benefiting micro- and small
private enterprise.
‘‘(b) PROGRAM.—To carry out the policy set forth in
subsection (a), the President is authorized to provide assist-
ance to increase the availability of credit to micro- and
small enterprises lacking full access to credit, including
through—
‘‘(1) loans and guarantees to credit institutions
for the purpose of expanding the availability of credit
to micro- and small enterprises;
‘‘(2) training programs for lenders in order to
enable them to better meet the credit needs of micro-
and small entrepreneurs; and
‘‘(3) training programs for micro- and small en-
trepreneurs in order to enable them to make better use
of credit and to better manage their enterprises.’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—(A) There is authorized to be
appropriated to carry out section 108 of the Foreign
Assistance Act of 1961, in addition to funds otherwise
available for such purposes, $2,000,000 for each of the
fiscal years 1996 and 1997. Funds authorized to be
261
appropriated under this subsection shall be made
available for the subsidy cost, as defined in section
502(5) of the Federal Credit Reform Act of 1990, for
activities under section 108 of the Foreign Assistance
Act of 1961.
(B) In addition, there are authorized to be ap-
propriated $500,000 for each of the fiscal years 1996
and 1997 for the cost of training programs and ad-
ministrative expenses to carry out such section.
(2) AVAILABILITY OF AMOUNTS.—Amounts au-
thorized to be appropriated under paragraph (1) are
authorized to remain available until expended.
SEC. 3213. MICROENTERPRISE DEVELOPMENT GRANT AS-
SISTANCE.
Chapter 1 of part I of the Foreign Assistance Act of
1961 (22 U.S.C. 2151 et seq.) is amended by adding at the
end the following new section:
‘‘SEC. 129. MICROENTERPRISE DEVELOPMENT GRANT AS-
SISTANCE.
‘‘(a) AUTHORIZATION.—(1) In carrying out this part,
the administrator of the agency primarily responsible for
administering this part is authorized to provide grant as-
sistance for programs of credit and other assistance for
microenterprises in developing countries.
262
‘‘(2) Assistance authorized under paragraph (1) shall
be provided through the following organizations that have
a capacity to develop and implement microenterprise pro-
grams:
‘‘(A) United States and indigenous private and
voluntary organizations.
‘‘(B) United States and indigenous credit unions
and cooperative organizations.
‘‘(C) Other indigenous governmental and non-
governmental organizations.
‘‘(3) Approximately 50 percent of assistance author-
ized under paragraph (1) shall be used for poverty lending
programs which—
‘‘(A) meet the needs of the very poor members of
society, particularly poor women; and
‘‘(B) provide loans of $300 or less in 1995 Unit-
ed States dollars to such poor members of society.
‘‘(4) The administrator of the agency primarily re-
sponsible for administering this part shall strengthen ap-
propriate mechanisms, including mechanisms for central
microenterprise programs, for the purpose of—
‘‘(A) providing technical support for field mis-
sions;
263
‘‘(B) strengthening the institutional development
of the intermediary organizations described in para-
graph (2); and
‘‘(C) sharing information relating to the provi-
sion of assistance authorized under paragraph (1) be-
tween such field missions and intermediary organiza-
tions.
‘‘(b) MONITORING SYSTEM.—In order to maximize the
sustainable development impact of the assistance authorized
under subsection (a)(1), the administrator of the agency
primarily responsible for administering this part shall es-
tablish a monitoring system that—
‘‘(1) establishes performance goals for such assist-
ance and expresses such goals in an objective and
quantifiable form, to the extent feasible;
‘‘(2) establishes performance indicators to be
used in measuring or assessing the achievement of the
goals and objectives of such assistance; and
‘‘(3) provides a basis for recommendations for
adjustments to such assistance to enhance the sustain-
able development impact of such assistance, particu-
larly the impact of such assistance on the very poor,
particularly poor women.’’.
264
CHAPTER 3—DEVELOPMENT ASSISTANCE
Subchapter A—Development Assistance
Authorities
SEC. 3221. AUTHORIZATIONS OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated the following amounts for the following purposes (in
addition to amounts otherwise available for such purposes):
(1) 
DEVELOPMENT
ASSISTANCE
FUND.—
$858,000,000 for each of the fiscal years 1996 and
1997 to carry out sections 103 through 106 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2151a
through 2151d).
(2) 
DEVELOPMENT
FUND
FOR
AFRICA.—
$629,214,000 for each of the fiscal years 1996 and
1997 to carry out chapter 10 of part I of the Foreign
Assistance Act of 1961 (22 U.S.C. 2293 et seq.).
(3) ASSISTANCE FOR THE INDEPENDENT STATES
OF THE FORMER SOVIET UNION.—$643,000,000 for
fiscal year 1996 and $650,000,000 for fiscal year
1997 to carry out programs under chapter 11 of part
I of the Foreign Assistance Act of 1961 (22 U.S.C.
2295 et seq.) and other related programs.
(4) ASSISTANCE
FOR
EAST
EUROPEAN
COUN-
TRIES.—$325,000,000 for fiscal year 1996 and
$275,000,000 for fiscal year 1997 for economic assist-
265
ance for Eastern Europe and the Baltic states under
the Foreign Assistance Act of 1961 (22 U.S.C. 2151
et seq.) and the Support for East European Democ-
racy (SEED) Act of 1989 (22 U.S.C. 5401 et seq.).
(5) INTER-AMERICAN FOUNDATION.—$20,000,000
for fiscal year 1996 and $10,000,000 for fiscal year
1997 to carry out section 401 of the Foreign Assist-
ance Act of 1969 (22 U.S.C. 290f).
(6) AFRICAN
DEVELOPMENT
FOUNDATION.—
$10,000,000 for fiscal year 1996 and $5,000,000 for
fiscal year 1997 to carry out the African Development
Foundation Act (22 U.S.C. 290h et seq.).
(b) AVAILABILITY OF AMOUNTS.—Amounts authorized
to be appropriated under subsection (a) are authorized to
remain available until expended.
SEC. 3222. CHILD SURVIVAL ACTIVITIES, VITAMIN A DEFI-
CIENCY PROGRAM, AND RELATED ACTIVITIES.
(a) CHILD SURVIVAL ACTIVITIES.—
(1) IN
GENERAL.—(A) Of the amounts made
available to carry out the provisions of law described
in paragraph (2) for fiscal years 1996 and 1997, not
less than $280,000,000 for each such fiscal year shall
be made available only for activities which have a di-
rect measurable impact on rates of child morbidity
and mortality, with a particular emphasis on deliv-
266
ery of community-based primary health care and
health education services which benefit the poorest of
the poor.
(B) Of the amounts made available under sub-
paragraph (A) for a fiscal year, not less than
$30,000,000 for such fiscal year shall be provided to
private and voluntary organizations under the PVO
Child Survival grants program carried out by the
agency primarily responsible for administering part
I of the Foreign Assistance Act of 1961.
(2) PROVISIONS OF LAW.—The provisions of law
described in this paragraph are the following:
(A) Sections 103 through 106 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2151a through
2151d; relating to the development assistance
fund).
(B) Chapter 10 of part I of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2293 et seq.; re-
lating to the Development Fund for Africa).
(C) Chapter 4 of part II of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2346 et seq.; re-
lating to the economic support fund).
(D) The ‘‘Multilateral Assistance Initiative
for the Philippines’’ program.
267
(3) SPECIAL
RULE.—Amounts made available
under sections 103 through 106 of the Foreign Assist-
ance Act of 1961 for the Vitamin A Deficiency Pro-
gram, part I of such Act for iodine and iron fortifica-
tion programs and for iron supplementation pro-
grams for pregnant women, chapter 9 of part I of
such Act for international disaster assistance, section
104(c) of such Act for international AIDS prevention
and control, and any other provision of law for mi-
gration and refugee assistance, shall not be included
in the aggregate amounts described in paragraph (1)
for purposes of the requirements contained in such
paragraph.
(b) VITAMIN A DEFICIENCY PROGRAM AND RELATED
ACTIVITIES.—Of the amounts made available to carry out
sections 103 through 106 of the Foreign Assistance Act of
1961 (22 U.S.C. 2151a through 2151d) for fiscal years 1996
and 1997, not less than $25,000,000 for each such fiscal
year shall be made available for the Vitamin A Deficiency
Program and for activities relating to iodine deficiency and
other micronutrients.
(c) UNDP/WHO TROPICAL DISEASE PROGRAM.—Of
the amounts made available to carry out section 103
through 106 of the Foreign Assistance Act of 1961 (22
U.S.C. 2151a through 2151d) for fiscal years 1996 and
268
1997, not less than $15,000,000 for each such fiscal year
shall be made available for the United Nations Development
Program/World Health Organization Special Program for
Research and Training in Tropical Diseases.
SEC. 3223. ASSISTANCE FOR FAMILY PLANNING.
(a) RESTRICTION ON USE OF FUNDS FOR VOLUNTARY
POPULATION PLANNING.—Section 104(b) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2151b(b)) is amended by
inserting after the first sentence the following new sentence:
‘‘Such assistance shall be available only for voluntary fam-
ily planning projects which offer, either directly or through
referral to, or information about access to, a broad range
of family planning methods and services.’’
(b) PROHIBITION ON USE OF FUNDS FOR VOLUNTARY
POPULATION PLANNING TO ORGANIZATIONS OR PROGRAMS
SUPPORTING OR PARTICIPATING IN THE MANAGEMENT OF
ABORTION OR INVOLUNTARY STERILIZATION PROGRAMS.—
Section 104(b) of such Act (22 U.S.C. 2151b(b)), as amend-
ed by subsection (a), is further amended—
(1) in the first sentence, by striking ‘‘In order
to’’ and inserting ‘‘(1) In order to’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) None of the funds made available to carry out
this subsection may be made available to any organization
269
or program which, as determined by the President, supports
or participates in the management of a program of coercive
abortion or involuntary sterilization.’’.
(c) PROHIBITION ON DISCRIMINATION WITH RESPECT
TO GRANTS FOR NATURAL FAMILY PLANNING.—Section
104(b) of such Act (22 U.S.C. 2151b(b)), as amended by
subsections (a) and (b), is further amended by adding at
the end the following new paragraph:
‘‘(3) In providing grants for natural family planning
under this subsection, the administrator of the agency pri-
marily responsible for administering this part shall not dis-
criminate against applicants because of any religious or
conscientious commitment by such applicants to offer only
natural family planning services.’’.
(d) CLARIFICATION WITH RESPECT TO PROHIBITION
ON USE OF FUNDS FOR ABORTIONS.—Section 104(f)(1) of
such Act (22 U.S.C. 2151b(f)(1)) is amended—
(1) by striking ‘‘None of the funds’’ and insert-
ing ‘‘(A) None of the funds’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) For purposes of this paragraph, the term ‘moti-
vate’ shall not be construed to prohibit the provision, con-
sistent with local law, of information and counseling con-
cerning all pregnancy options, including abortion.’’.
270
SEC. 3224. ASSISTANCE FOR THE INDEPENDENT STATES OF
THE FORMER SOVIET UNION.
(a) CONDITIONS ON ASSISTANCE.—Section 498A(b) of
the Foreign Assistance Act of 1961 (22 U.S.C. 2295a(b))
is amended—
(1) in paragraph (4), by striking ‘‘or’’ at the
end;
(2) by redesignating paragraph (5) as para-
graph (10); and
(3) by inserting after paragraph (4) the follow-
ing new paragraphs:
‘‘(5) for the Government of Russia, unless the
President certifies to the Congress that such Govern-
ment—
‘‘(A) is pursuing, without preconditions, an
immediate and permanent ceasefire, and is pur-
suing a negotiated settlement to the conflict in
the Russian Federation Republic of Chechnya;
‘‘(B) is taking steps to provide unhindered
access to the region of Chechnya and surround-
ing areas of the Russian Federation by elected
officials of the Russian Federation and by inde-
pendent Russian media;
‘‘(C) is cooperating with the Organization
for Security and Cooperation in Europe and
other appropriate international organizations in
271
undertaking steps to investigate and prosecute
any and all individuals, including members of
the Russian armed forces and internal security
agencies, who may be responsible for atrocities,
war crimes, or crimes against humanity in the
region of Chechnya;
‘‘(D) is cooperating with the Assistance
Group of the Organization on Security and Co-
operation in Europe established in Chechnya in
fulfilling that mission’s mandate;
‘‘(E) 
is 
cooperating 
in 
assuring 
the
unhindered delivery of humanitarian assistance
to the civilian population in Chechnya;
‘‘(F) has made the fullest possible account-
ing of all persons currently detained by Russian
military or security forces as a result of the con-
flict in Chechnya and has allowed access to those
individuals by the International Committee of
the Red Cross;
‘‘(G) is taking steps to repatriate refugees
and displaced persons wishing to return to
Chechnya; and
‘‘(H) is taking steps to hold free and fair
elections in Chechnya, based on the principles of
the Organization on Security and Cooperation
272
in Europe and conducted in the presence of for-
eign and domestic observers;
except that this paragraph shall not apply to the pro-
vision of such assistance for purposes of humani-
tarian, disaster, and refugee relief or assisting demo-
cratic political reform and rule of law activities, pro-
vision of technical assistance for safety upgrade of ci-
vilian nuclear power plants, and assisting in the cre-
ation of private sector and nongovernmental organi-
zations that are independent of government ownership
and control;
‘‘(6) for the government of any independent state
that has agreed to provide nuclear reactor components
to Iran, unless the President determines that the sale
of such components to Iran includes safeguards that
are consistent with the national security objectives of
the United States and the concerns of the United
States with respect to nonproliferation of nuclear
weapons technology, except that this paragraph shall
not apply to the provision of such of assistance for
purposes of—
‘‘(A) humanitarian, disaster, and refugee
relief; or
‘‘(B) assisting democratic political reform,
rule of law activities, and the creation of private
273
sector and nongovernmental organizations that
are independent of government ownership and
control;
‘‘(7) for the government of any independent state
that the President determines directs any action in
violation of the territorial integrity or national sov-
ereignty of any other new independent state, except
that this paragraph shall not apply to the provision
of such assistance for purposes of—
‘‘(A) humanitarian, disaster, and refugee
relief; or
‘‘(B) assisting democratic political reform,
rule of law activities, and the creation of private
sector and nongovernmental organizations that
are independent of government ownership and
control;
‘‘(8) for the purpose of enhancing the military
capability of any independent state, except that this
paragraph shall not apply to demilitarization, defense
conversion or nonproliferation programs, or programs
to support troop withdrawal including through the
support of an officer resettlement program, and tech-
nical assistance for the housing sector;
‘‘(9) for the Government of Russia if the Presi-
dent determines that Government—
274
‘‘(A) is not making progress in implement-
ing comprehensive economic reforms based on
market principles, including fostering private
ownership, the repayment of commercial debt,
the respect of commercial contracts, the equitable
treatment of foreign private investment; or
‘‘(B) applies or transfers assistance pro-
vided under this chapter to any entity for the
purpose of expropriating or seizing ownership or
control of assets, investments, or ventures; or’’.
(b) ASSISTANCE THROUGH THE PRIVATE SECTOR.—
Section 498B(a) of such Act (22 U.S.C. 2295b(a)) is amend-
ed to read as follows:
‘‘(a) ASSISTANCE THROUGH THE PRIVATE SECTOR.—
Assistance under this chapter shall be provided, to the maxi-
mum extent feasible, through the private sector, including
private and voluntary organizations and other nongovern-
mental organizations functioning in the independent states
of the former Soviet Union.’’.
(c) WAIVER
OF
CERTAIN
PROVISIONS.—Section
498B(j)(1) of such Act (22 U.S.C. 2295b(j)(1)) is amended
in the matter preceding subparagraph (A)—
(1) by striking ‘‘for fiscal year 1993 by this
chapter’’ and inserting ‘‘to carry out this chapter’’;
and
275
(2) by striking ‘‘appropriated for fiscal year
1993’’.
SEC. 3225. DEVELOPMENT FUND FOR LATIN AMERICA AND
THE CARIBBEAN.
Part I of the Foreign Assistance Act of 1961 (22 U.S.C.
2151 et seq.) is amended by adding at the end the following
new chapter:
‘‘CHAPTER 12—DEVELOPMENT FUND FOR
LATIN AMERICA AND THE CARIBBEAN
‘‘SEC. 499. STATEMENT OF POLICY.
‘‘The Congress declares the following:
‘‘(1) The historic, economic, political, and geo-
graphic relationships among the countries of the
Western Hemisphere are unique and of continuing
special significance.
‘‘(2) Following the historic Summit of the Amer-
icas and the passage of the North American Free
Trade Agreement, the countries of the Western Hemi-
sphere have moved steadfastly toward economic and
political integration.
‘‘(3) The interests of the countries of the Western
Hemisphere are more interrelated than ever, and
sound economic, social, and democratic progress in
each of the countries continues to be of importance to
276
all countries, and lack of it in any country may have
serious repercussions in others.
‘‘(4) For the peoples of Latin America and the
Caribbean to progress within the framework of social
justice, respect for human rights, political democracy,
and market-oriented economies, there is a compelling
need for the achievement of social and economic ad-
vancement and the consolidation of political democ-
racy and the rule of law adequate to meet the legiti-
mate aspirations of the individual citizens of the
countries of Latin America and the Caribbean for a
better way of life.
‘‘(5) The prosperity, security, and well-being of
the United States is linked directly to peace, prosper-
ity, and democracy in Latin America and the Carib-
bean.
‘‘(6) Democratic values are dominant throughout
Latin America and the Caribbean region and nearly
all governments in such region have come to power
through democratic elections.
‘‘(7) Nonetheless, existing democratic govern-
ments and their supporting institutions remain frag-
ile and face critical challenges, including, in particu-
lar, the consolidation of civilian control of such gov-
ernments and institutions, including control of the
277
military, the consolidation or establishment of inde-
pendent judicial institutions and of the rule of law,
and where appropriate, the decentralization of gov-
ernment.
‘‘(8) In adherence to free market principles, it is
essential to promote economic growth with equity—
enlarging employment and decisionmaking opportu-
nities and the provision of basic social services for
traditionally marginalized groups, such as indigenous
minorities, women, and the poor—and to protect and
promote workers rights.
‘‘(9) By supporting the purposes and objectives
of sustainable development and applying such pur-
poses and objectives to Latin America and the Carib-
bean, the Development Fund for Latin America and
the Caribbean can advance the national interests of
the United States and can directly improve the lives
of the poor, encourage broad-based economic growth
while protecting the environment, build human cap-
ital and knowledge, support participation in democ-
racy, and promote peace and justice in Latin Amer-
ica and the Caribbean.
‘‘SEC. 499A. AUTHORIZATION OF ASSISTANCE.
‘‘(a) IN GENERAL.—The President is authorized to
provide assistance for Latin America and the Caribbean to
278
promote democracy, sustainable development, and economic
growth in Latin America and the Caribbean.
‘‘(b) TERMS AND CONDITIONS.—Assistance under this
chapter shall be provided on such terms and conditions as
the President may determine.
‘‘SEC. 499B. AVAILABILITY OF AMOUNTS.
‘‘(a) IN GENERAL.—Of the amounts made available to
carry out the provisions of law described in subsection (b)
for fiscal year 1996 and for each succeeding fiscal year, not
less than an amount requested by the President and ap-
proved by the Congress in appropriations Acts shall be
made available to carry out this chapter.
‘‘(b) PROVISIONS OF LAW.—The provisions of law de-
scribed in this subsection are the following:
‘‘(1) Sections 103 through 106 of this Act (relat-
ing to the development assistance fund).
‘‘(2) Chapter 8 of this part (relating to inter-
national narcotics control).
‘‘(3) Chapter 4 of part II of this Act (relating
to the economic support fund).
‘‘(4) Chapter 5 of part II of this Act (relating
to international military education and training).
‘‘(5) Titles II and III of the Agricultural Trade
Development and Assistance Act of 1954.
279
‘‘(6) The ‘Foreign Military Financing Program’
under section 23 of the Arms Export Control Act (22
U.S.C. 2763).
‘‘(c) AVAILABILITY.—Amounts made available under
this section are authorized to remain available until ex-
pended.’’.
SEC. 3226. EFFECTIVENESS OF UNITED STATES DEVELOP-
MENT ASSISTANCE.
Chapter 1 of part I of the Foreign Assistance Act of
1961 (22 U.S.C. 2251 et seq.), as amended by this Act, is
further amended by adding at the end the following new
section:
‘‘SEC. 130. EFFECTIVENESS OF UNITED STATES DEVELOP-
MENT ASSISTANCE.
‘‘(a) REPORTS.—Not later than December 31, 1996,
and December 31 of each third year thereafter, the President
shall transmit to the Congress a report which analyzes, on
a country-by-country basis, the impact and effectiveness of
the United States development assistance provided during
the preceding three fiscal years. Each report shall include
the following for each recipient country:
‘‘(1) An analysis of the impact of United States
development assistance during the preceding three fis-
cal years on development in that country, with a dis-
cussion of the United States interests that were served
280
by the assistance. Such analysis shall be done on a
sector-by-sector basis to the extent possible and shall
identify any economic policy reforms which were pro-
moted by the assistance. Such analysis shall—
‘‘(A) include a description, quantified to the
extent practicable, of the specific objectives the
United States sought to achieve in providing de-
velopment assistance for that country; and
‘‘(B) specify the extent to which those objec-
tives were not achieved, with an explanation of
why they were not achieved.
‘‘(2) A description of the amount and nature of
development assistance provided by other donors dur-
ing the preceding three fiscal years, set forth by devel-
opment sector to the extent possible.
‘‘(3) A discussion of the commitment of the host
government to addressing the country’s needs in each
development sector, including a description of the re-
sources devoted by that government to each develop-
ment sector during the preceding three fiscal years.
‘‘(4) A description of the trends, both favorable
and unfavorable, in each development sector.
‘‘(5) Statistical and other information necessary
to evaluate the impact and effectiveness of United
281
States development assistance on development in the
country.
‘‘(b) LISTING OF MOST AND LEAST SUCCESSFUL AS-
SISTANCE PROGRAMS.—Each report required by this sec-
tion shall identify—
‘‘(1) those five countries in which United States
development assistance has been most successful; and
‘‘(2) those five countries in which United States
development assistance has been least successful.
For each country listed pursuant to paragraph (2), the re-
port shall explain why the assistance was not more success-
ful and shall specify what the United States has done as
a result.
‘‘(c) REPORT TO BE A SEPARATE DOCUMENT.—Each
report required by this section shall be submitted to the Con-
gress as a separate document.
‘‘(d) DEFINITION.—As used in this section, the terms
‘United States development assistance’ and ‘development as-
sistance’ means assistance under this chapter.’’.
SEC. 3227. FUNDING FOR PRIVATE AND VOLUNTARY ORGA-
NIZATIONS AND COOPERATIVES.
(a) IN GENERAL.—For each of the fiscal years 1996
and 1997, the President shall allocate an aggregate amount
to private and voluntary organizations and cooperatives
under the Foreign Assistance Act of 1961 (22 U.S.C. 2151
282
et seq.) and the Support for East European Democracy
(SEED) Act of 1989 which, at a minimum, is equal to the
aggregate amount allocated to such organizations and co-
operatives under such Acts for fiscal year 1994.
(b) DEFINITION.—For purposes of this section, the
term ‘‘private and voluntary organization’’ means a pri-
vate nongovernmental organization which—
(1) is organized under the laws of a country;
(2) receives funds from private sources;
(3) operates on a not-for-profit basis with appro-
priate tax-exempt status if the laws of the country
grant such status to not-for-profit organizations;
(4) is voluntary in that it receives voluntary
contributions of money, time, or in-kind support from
the public; and
(5) is engaged or intends to be engaged in vol-
untary, charitable, development, or humanitarian as-
sistance activities.
SEC. 3228. SENSE OF THE CONGRESS RELATING TO UNITED
STATES COOPERATIVES AND CREDIT UNIONS.
It is the sense of the Congress that—
(1) United States cooperatives and credit unions
can provide an opportunity for people in developing
countries to participate directly in democratic deci-
sionmaking for their economic and social benefit
283
through ownership and control of business enterprises
and through the mobilization of local capital and sav-
ings; and
(2) such organizations should be utilized in fos-
tering democracy, free markets, community-based de-
velopment, and self-help projects.
Subchapter B—Operating Expenses
SEC. 3231. OPERATING EXPENSES GENERALLY.
Section 667(a)(1) of the Foreign Assistance Act of 1961
(22 U.S.C. 2427(a)(1)) is amended to read as follows:
‘‘(1) $465,774,000 for fiscal year 1996 and
$419,196,000 for fiscal year 1997 for necessary oper-
ating expenses of the agency primarily responsible for
administering part I of this Act (other than the office
of the inspector general of such agency); and’’.
SEC. 3232. OPERATING EXPENSES OF THE OFFICE OF THE
INSPECTOR GENERAL.
Section 667(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2427(a)), as amended by this Act, is further
amended—
(1) by redesignating paragraph (2) as para-
graph (3);
(2) by striking ‘‘and’’ at the end of paragraph
(1); and
284
(3) by inserting after paragraph (1) the follow-
ing:
‘‘(2) $35,206,000 for fiscal year 1996 and
$31,685,000 for fiscal year 1997 for necessary operat-
ing expenses of the office of the inspector general of
such agency; and’’.
CHAPTER 4—PUBLIC LAW 480
SEC. 3241. LEVELS OF ASSISTANCE FOR TITLE II.
Section 204(a) of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1724(a)) is amend-
ed—
(1) in paragraph (1)(E), by striking ‘‘for fiscal
year 1995’’ and inserting ‘‘for each of the fiscal years
1995 through 1997’’; and
(2) in paragraph (2)(E), by striking ‘‘for fiscal
year 1995’’ and inserting ‘‘for each of the fiscal years
1995 through 1997’’.
SEC. 3242. AUTHORIZATION OF APPROPRIATIONS FOR
TITLE III.
No funds are authorized to be appropriated for either
of the fiscal years 1996 and 1997 for the provision of agri-
cultural commodities under title III of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C.
1727 et seq.).
285
CHAPTER 5—HOUSING GUARANTEE
PROGRAM
SEC. 3251. AUTHORIZATION OF APPROPRIATIONS FOR AD-
MINISTRATIVE EXPENSES.
(a) IN GENERAL.—(1) Subject to paragraph (2), there
are authorized to be appropriated $7,000,000 for fiscal year
1996 and $6,000,000 for fiscal year 1997 for administrative
expenses to carry out guaranteed loan programs under sec-
tions 221 and 222 of the Foreign Assistance Act of 1961
(22 U.S.C. 2181 and 2182).
(2) Amounts authorized to be appropriated under
paragraph (1) may be made available only for—
(A) administrative expenses incurred with re-
spect to guaranties issued before the date of the enact-
ment of this Act; or
(B) expenses incurred with respect to activities
related to the collection of amounts paid by the Unit-
ed States in the discharge of liabilities under guaran-
ties issued under section 222 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2182).
(b) AVAILABILITY.—Amounts authorized to be appro-
priated under subsection (a) are authorized to remain
available until expended.
286
SEC. 3252. ADDITIONAL REQUIREMENTS.
(a) EXPIRATION OF AUTHORITY.—Section 222(a) of
the Foreign Assistance Act of 1961 (22 U.S.C. 2182(a)) is
amended by striking the third sentence and inserting the
following: ‘‘No guaranties may be issued under this section
on or after the date of the enactment of the Foreign Aid
Reduction Act of 1995.’’.
(b) CANCELLATION OF CERTAIN EXISTING GUARAN-
TIES.—Section 222 of such Act (22 U.S.C. 2182) is amend-
ed—
(1) by redesignating subsection (k) as subsection
(d); and
(2) by adding at the end the following new sub-
section:
‘‘(e) The President shall cancel all guaranties issued
under this section with respect to which eligible investors
have not (before the date of the enactment of the Foreign
Aid Reduction Act of 1995) applied such guaranties to
loans for projects under this title.’’.
(c) PROHIBITION ON ASSISTANCE FOR ENTITIES IN
DEFAULT AND CERTAIN OTHER ENTITIES.—Section 620 of
such Act (22 U.S.C. 2370) is amended by inserting after
subsection (u) the following new subsection:
‘‘(v)(1) Subject to paragraph (2), no assistance shall
be furnished under this Act to any entity that—
287
‘‘(A) fails to make timely payments on loans
with respect to which guaranties have been issued
under title III of chapter 2 of part I of this Act (re-
lating to housing and other credit guaranty pro-
grams); or
‘‘(B) causes amounts (including amounts for ad-
ministrative expenses) to be paid by the United States
in the discharge of liabilities under guaranties issued
under such title, unless such entity has reimbursed the
United States for such amounts.
‘‘(2) The President may waive the prohibition in para-
graph (1) with respect to an entity if the President deter-
mines that it is in the national interest of the United States
to furnish assistance under this Act to such entity.’’.
CHAPTER 6—PEACE CORPS
SEC. 3261. PEACE CORPS.
Section 3(b) of the Peace Corps Act (22 U.S.C.
2502(b)) is amended to read as follows:
‘‘(b)(1) There are authorized to be appropriated to
carry out the purposes of this Act $219,745,000 for each
of the fiscal years 1996 and 1997.
‘‘(2) Amounts authorized to be appropriated under
paragraph (1)—
288
‘‘(A) with respect to fiscal year 1996 are author-
ized to remain available until September 30, 1997;
and
‘‘(B) with respect to fiscal year 1997 are author-
ized to remain available until September 30, 1998.’’.
SEC. 3262. ACTIVITIES OF THE PEACE CORPS IN THE
FORMER SOVIET UNION.
(a) IN GENERAL.—Of the amounts made available for
fiscal years 1996 and 1997 to carry out chapter 11 of part
I of the Foreign Assistance Act of 1961 (22 U.S.C. 2295
et seq.; relating to assistance for the independent states of
the former Soviet Union), not more than $11,600,000 for
each such fiscal year shall be available for activities of the
Peace Corps in the independent states of the former Soviet
Union (as defined in section 3 of the Freedom for Russia
and Emerging Eurasian Democracies and Open Markets
Support Act of 1992).
(b) AVAILABILITY.—Amounts made available under
subsection (a)—
(1) with respect to fiscal year 1996 are author-
ized to remain available until September 30, 1997;
and
(2) with respect to fiscal year 1997 are author-
ized to remain available until September 30, 1998.
289
SEC. 3263. PROHIBITION ON USE OF FUNDS FOR ABOR-
TIONS.
Section 15 of the Peace Corps Act (22 U.S.C. 2514)
is amended by adding at the end the following new sub-
section:
‘‘(e) Funds made available for the purposes of this Act
may not be used to pay for abortions.’’.
CHAPTER 7—INTERNATIONAL DISASTER
ASSISTANCE
SEC. 3271. AUTHORITY TO PROVIDE RECONSTRUCTION AS-
SISTANCE.
Section 491 of the Foreign Assistance Act of 1961 (22
U.S.C. 2292) is amended—
(1) in subsection (b), by striking ‘‘and rehabili-
tation’’ and inserting ‘‘, rehabilitation, and recon-
struction’’; and
(2) in subsection (c), by striking ‘‘and rehabilita-
tion’’ and inserting ‘‘, rehabilitation, and reconstruc-
tion’’.
SEC. 3272. AUTHORIZATIONS OF APPROPRIATIONS.
Section 492(a) of such Act (22 U.S.C. 2292a(a)) is
amended to read as follows:
‘‘(a) There are authorized to be appropriated to the
President to carry out section 491, in addition to funds oth-
erwise available for such purposes, $200,000,000 for each
of the fiscal years 1996 and 1997.’’.
290
CHAPTER 8—OTHER PROVISIONS
SEC. 3281. EXEMPTION FROM RESTRICTIONS ON ASSIST-
ANCE THROUGH NONGOVERNMENTAL ORGA-
NIZATIONS.
Section 123(e) of the Foreign Assistance Act of 1961
(22 U.S.C. 2151u(e)) is amended to read as follows:
‘‘(e)(1) Subject to paragraph (3), restrictions con-
tained in this Act or any other provision of law with respect
to assistance for a country shall not be construed to restrict
assistance under this chapter, chapter 10, or chapter 11 of
this part in support of programs of nongovernmental orga-
nizations.
‘‘(2) The President shall take into consideration, in
any case in which a restriction on assistance for a country
would be applicable but for this subsection, whether assist-
ance for programs of nongovernmental organizations is in
the national interest of the United States.
‘‘(3) Whenever the authority of this subsection is used
to furnish assistance for a program of a nongovernmental
organization, the President shall notify the congressional
committees specified in section 634A(a) of this Act in ac-
cordance with procedures applicable to reprogramming no-
tifications under that section. Such notification shall de-
scribe the program assisted, the assistance provided, and
the reasons for furnishing such assistance.’’.
291
SEC. 3282. FUNDING REQUIREMENTS RELATING TO UNITED
STATES PRIVATE AND VOLUNTARY ORGANI-
ZATIONS.
(a) IN GENERAL.—Section 123(g) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2151u(g)) is amended to
read as follows:
‘‘(g) Funds made available to carry out this chapter
or chapter 10 of this part may not be made available to
any United States private and voluntary organization, ex-
cept any cooperative development organization, that obtains
less than 20 percent of its total annual financial support
for its international activities from sources other than the
United States Government.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) applies with respect to funds made available for
programs of any United States private and voluntary orga-
nization on or after the date of the enactment of this Act.
SEC. 3283. DOCUMENTATION REQUESTED OF PRIVATE AND
VOLUNTARY ORGANIZATIONS.
Section 620 of the Foreign Assistance Act of 1961 (22
U.S.C. 2370), as amended by this Act, is further amended
by inserting after subsection (v) (as added by this Act) the
following new subsection:
‘‘(w) None of the funds made available to carry out
this Act shall be available to any private and voluntary
organization which—
292
‘‘(1) fails to provide upon timely request any
document, file, or record necessary to the auditing re-
quirements of the agency primarily responsible for
administering part I of this Act; or
‘‘(2) is not registered with the agency primarily
responsible for administering part I of this Act.’’.
SEC. 3284. FOREIGN GOVERNMENT PARKING FINES.
(a) IN GENERAL.—Chapter 1 of part III of the Foreign
Assistance Act of 1961 (22 U.S.C. 2351 et seq.), as amended
by this Act, is further amended by adding at the end the
following new section:
‘‘SEC. 620I. FOREIGN GOVERNMENT PARKING FINES.
‘‘(a) IN GENERAL.—An amount equivalent to 110 per-
cent of the total unpaid fully adjudicated parking fines and
penalties owed to the District of Columbia, Virginia, Mary-
land, and New York by the government of a foreign country
as of the end of a fiscal year, as certified to the President
by the chief executive officer of each State or District, shall
be withheld from obligation for such country out of funds
available in the next fiscal year to carry out part I of this
Act, until the requirement of subsection (b) is satisfied.
‘‘(b) REQUIREMENT.—The requirement of this sub-
section is satisfied when the Secretary of State determines
and certifies to the appropriate congressional committees
that such fines and penalties are fully paid to the govern-
293
ments of the District of Columbia, Virginia, Maryland, and
New York.
‘‘(c) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—For purposes of this section, the term ‘appropriate
congressional committees’ means the Committee on Inter-
national Relations and the Committee on Appropriations
of the House of Representatives and the Committee on For-
eign Relations and the Committee on Appropriations of the
Senate.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply with respect to fines certified as of
the end of fiscal year 1995 or any fiscal year thereafter.
SEC. 3285. HUMAN RIGHTS REPORTS.
(a) SECTION 116 REPORT.—Section 116(d) of the For-
eign Assistance Act of 1961 (22 U.S.C. 2151n) is amend-
ed—
(1) in paragraph (2), by striking ‘‘and’’ at the
end;
(2) by redesignating paragraph (3) as para-
graph (5); and
(3) by inserting after paragraph (2) the follow-
ing new paragraphs:
‘‘(3) the votes of each member of the United Na-
tions Commission on Human Rights on all country-
specific and thematic resolutions voted on at the Com-
294
mission’s annual session during the period covered
during the preceding year;
‘‘(4) the extent to which each country has ex-
tended protection to refugees, including the provision
of first asylum and resettlement; and’’.
(b) SECTION 502B REPORT.—Section 502B(b) of such
Act (22 U.S.C. 2304(b)) is amended by adding after the
second sentence the following new sentence: ‘‘Each report
under this section shall list the votes of each member of the
United Nations Commission on Human Rights on all coun-
try-specific and thematic resolutions voted on at the Com-
mission’s annual session during the period covered during
the preceding year.’’.
SEC. 3286. DEOBLIGATION OF CERTAIN UNEXPENDED ECO-
NOMIC ASSISTANCE FUNDS.
Chapter 3 of part III of the Foreign Assistance Act
of 1961 (22 U.S.C. 2401 et seq.) is amended by adding at
the end the following:
‘‘SEC. 668. DEOBLIGATION OF CERTAIN UNEXPENDED ECO-
NOMIC ASSISTANCE FUNDS.
‘‘(a) REQUIREMENT TO DEOBLIGATE.—
‘‘(1) IN GENERAL.—Except as provided in sub-
section (b) of this section and in paragraphs (1) and
(3) of section 617(a) of this Act, at the beginning of
each fiscal year the President shall deobligate and re-
295
turn to the Treasury, any funds described in para-
graph (2) that, as of the end of the preceding fiscal
year, have been obligated for a project or activity for
a period of more than 3 years but have not been ex-
pended.
‘‘(2) FUNDS.—Paragraph (1) applies to funds
made available for—
‘‘(A) assistance under chapter 1 of part I of
this Act (relating to development assistance),
chapter 10 of part I of this Act (relating to the
Development Fund for Africa), or chapter 4 of
part II of this Act (relating to the economic sup-
port fund);
‘‘(B) assistance under the ‘Multilateral As-
sistance Initiative for the Philippines’;
‘‘(C) assistance under the Support for East
European Democracy (SEED) Act of 1989; and
‘‘(D) economic assistance for the independ-
ent states of the former Soviet Union under this
Act or under any other Act authorizing economic
assistance for such independent states.
‘‘(b) EXCEPTIONS.—The President, on a case-by-case
basis, may waive the requirement of subsection (a)(1) if the
President determines, and reports to the appropriate con-
gressional committees, that—
296
‘‘(1) the funds are being used for a construction
project that requires more than 3 years to complete;
or
‘‘(2) the funds have not been expended because of
unforeseen circumstances, and those circumstances
could not have been reasonably foreseen.
‘‘(c) COMMENTS BY INSPECTOR GENERAL.—As soon as
possible after the submission of a report pursuant to sub-
section (b), the Inspector General of the agency primarily
responsible for administering part I of this Act shall submit
to the appropriate congressional committees such comments
as the Inspector General considers appropriate with regard
to the determination described in that report.
‘‘(d) APPROPRIATE CONGRESSIONAL COMMITTEES.—
As used in this section, the term ‘appropriate congressional
committees’ means the Committee on International Rela-
tions and the Committee on Appropriations of the House
of Representatives and the Committee on Foreign Relations
and the Committee on Appropriations of the Senate.’’.
297
TITLE XXXIII—REGIONAL
PROVISIONS
SEC. 3301. PROHIBITION ON ASSISTANCE TO FOREIGN GOV-
ERNMENTS 
PROVIDING 
ASSISTANCE 
TO
CUBA.
(a) IN GENERAL.—Section 620 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2370), as amended by this Act,
is further amended by adding at the end the following new
subsection:
‘‘(y)(1) No assistance may be provided under this Act
(other than humanitarian assistance and assistance for ref-
ugees) for a fiscal year to any foreign government that the
President determines has provided economic assistance to
or engaged in nonmarket-based trade with the Government
of Cuba or any entity controlled by such Government in
the preceding fiscal year.
‘‘(2) The President may waive the requirements of
paragraph (1) if—
‘‘(A) the President certifies to the congressional
committees specified in section 634A of this Act (in
accordance 
with 
procedures 
applicable 
to
reprogramming of funds under that section) that the
provision of such assistance is vital to the national se-
curity of the United States; or
298
‘‘(B) the President determines and reports to the
Congress that the Government of Cuba has met the re-
quirements contained in section 1708 of the Cuban
Democracy Act of 1992 (22 U.S.C. 6001 et seq.).
‘‘(3) Not later than February 1st each year, the Presi-
dent shall prepare and transmit to the appropriate congres-
sional committees a report containing a list of all foreign
governments that the President has determined have pro-
vided 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 Rela-
tions and the Committee on Appropriations of the
House of Representatives and the Committee on For-
eign Relations and the Committee on Appropriations
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
299
applicable markets or for comparable commodities,
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 ac-
countable for unfulfilled exchange contracts, and
arrangements under which such Government 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(y) of the Foreign
Assistance Act of 1961, as added by subsection (a),
shall apply only with respect to assistance provided
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
300
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 chapter
4 of part II of such Act (22 U.S.C. 2346 et seq.; relating
to the economic support fund), including any unobligated
balances of prior appropriations, may only be made avail-
able to the Government of Nicaragua if the Secretary of
State determines and certifies to the appropriate congres-
sional 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 explosion, in-
cluding an investigation of passports, identity papers,
and other documents found at weapons sites indicat-
ing the existence of a terrorist or kidnapping ring
and whether the terrorist network was involved in the
February 1993 World Trade Center bombing;
(2) prosecutions have been initiated against all
individuals, including government officials and mem-
bers of the armed forces or security forces of Nica-
301
ragua, identified in the investigation described in
paragraph (1);
(3) Nicaragua has made substantial progress in
meeting the requirements set forth in section 527 of
the Foreign Relations Authorization Act, Fiscal Years
1994 and 1995 (relating to expropriation of United
States property);
(4) substantial progress has been made in the
timely implementation of all recommendations made
by the Tripartite Commission with respect to individ-
uals responsible for assassinations, including the im-
mediate suspension of all individuals from the Sandi-
nista Army and security forces who were named in
such recommendations, and the expeditious prosecu-
tion of such individuals;
(5) all individuals responsible for the murders of
Jean Paul Genie, Arges Sequeira, and Enrique
Bermudez have been removed from the military and
security forces of Nicaragua, and judicial proceedings
against these individuals have been initiated;
(6) specific changes have been implemented
which have resulted in verifiable civilian control over
the Sandinista military, security forces, and police;
and
302
(7) genuine, effective, and concrete reforms in the
Nicaraguan judicial system have been initiated.
(b) CONTENTS OF CERTIFICATION.—
(1) IN GENERAL.—A certification made pursuant
to subsection (a) shall include a detailed accounting
of all evidence in support of the determinations 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) EXCEPTION TO RESTRICTIONS.—The restrictions
on the availability of funds in subsection (a) shall not apply
to support for—
(1) programs facilitating the resolution of
United States citizen property claims;
(2) the International Commission for Support
and Verification of the Organization of American
States for human rights monitoring, related assist-
ance programs or election observation;
(3) independent human rights groups in Nica-
ragua;
(4) programs intended to ensure free and fair
elections in Nicaragua;
303
(5) democracy-building programs administered
through the National Endowment for Democracy and
related nongovernmental groups; or
(6) programs to promote civilian control of the
military.
(d) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—For purposes of this section, the term ‘‘appropriate
congressional committees’’ means the Committee on Inter-
national Relations and the Committee on Appropriations
of the House of Representatives and the Committee on For-
eign Relations and the Committee on Appropriations of the
Senate.
SEC. 3303. SENSE OF THE CONGRESS REGARDING RELA-
TIONS WITH BURMA.
It is the sense of the Congress that—
(1) official United States trade delegations to
Burma should be indefinitely suspended;
(2) visits to Burma by senior officials of the
United States Government should be minimized until
Aung San Suu Kyi is released from house arrest;
(3) the Secretary of Labor should submit to the
Congress a report on labor practices in Burma so that
Members of Congress can better inform constituents,
including stockholders and business leaders of the
304
United States companies which transact commerce
with Burma, on labor conditions in that country;
(4) the Secretary of State should submit to the
Congress a report on resource exploitation and envi-
ronmental degradation in Burma;
(5) no assistance should be used for cooperative
counternarcotics efforts between the United States and
members of the State Law and Order Restoration
Committee (SLORC) regime;
(6) the United States should discourage the Asso-
ciation of Southeast Asian Nations (ASEAN) from
including the SLORC regime in ASEAN activities;
(7) the Secretary of State should submit to the
Congress a report which outlines a strategy for en-
couraging democratic transition in Burma; and
(8) the United States should encourage its allies
to restrict the relations of such allies with Burma in
accordance with this section.
SEC. 3304. DEBT RESTRUCTURING FOR EGYPT.
(a) FINDINGS.—The Congress makes the following
findings:
(1) The Government of Egypt owes the United
States Government over $6,000,000,000 from prior
economic assistance credit programs.
305
(2) Current annual debt service payments by
Egypt to the United States are approximately
$270,000,000, will climb in the near future to
$350,000,000, and will continue until the year 2021.
(3) Egypt’s debt service to the United States re-
sults in reduced investment capital and slower eco-
nomic growth in Egypt.
(4) Restructuring Egypt’s debt burden, and buy-
ing down Egypt’s debt, could substantially reduce
over time Egypt’s requirement for economic assist-
ance.
(5) Addressing Egypt’s debt burden is in the mu-
tual interest of Egypt and the United States.
(b) REPORT.—(1) Not later than January 31, 1996,
the Secretary of State and the Secretary of the Treasury
shall develop and submit to the appropriate congressional
committee options to restructure Egypt’s debt, and buy
down, over a period of time through the use of funds author-
ized to be appropriated 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), all outstanding debt
owed by the Government of Egypt to the United States Gov-
ernment, including debt owed under development assist-
ance, agriculture, Export-Import Bank, and Commodity
Credit Corporation credit programs.
306
(2) The Secretary of State and the Secretary of the
Treasury shall develop the options required by paragraph
(1) in such a way as to enable the United States to reduce
assistance to Egypt in the future under chapter 4 of part
II of the Foreign Assistance Act of 1961 (22 U.S.C. 2346
et seq.; relating to the economic support fund). In the devel-
opment of such options, the Secretaries shall consult with
the Secretary of Commerce for the purpose of determining
the impact of the options required under paragraph (1) on
the level of United States exports to Egypt.
(3) 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 Appropriations
of the Senate.
SEC. 3305. PROHIBITION ON ASSISTANCE TO FOREIGN GOV-
ERNMENTS PROVIDING ASSISTANCE TO IRAN.
(a) FINDINGS.—The Congress makes the following
findings:
(1) Iran is engaged in an intensive effort to de-
velop nuclear weapons and some nations have indi-
cated that they are prepared to cooperate with Iran
in the nuclear field.
307
(2) The possession of nuclear weapons by Iran
would represent a serious threat to the peace and se-
curity of the entire Middle East region and an ex-
tremely serious challenge to United States interests in
that region.
(3) The United States places the highest priority
on denying to Iran the capability to produce nuclear
weapons and systems for the delivery of nuclear
weapons and other weapons of mass destruction.
(4) The sale or transfer to Iran by any other
government or with the permission of any other gov-
ernment of technology that may be critical for Iran
to develop or deploy nuclear weapons is a serious
threat to United States interests.
(b) ADMISSION TO NATO.—It is the sense of the Con-
gress that the United States should vigorously oppose the
accession to the North Atlantic Treaty and the admission
to the North Atlantic Treaty Organization of any country
which sells or licenses for sale any nuclear or dual-use tech-
nology or any military weapons, equipment, ammunition
or munitions of any kind, including any item included on
any lists covered by the Missile Technology Control Regime,
to Iran or to any country which the Secretary of State has
determined repeatedly provides support for acts of inter-
308
national terrorism pursuant to section 6(j) of the Export
Administration Act of 1979.
(c) PROHIBITION ON UNITED STATES ASSISTANCE.—
No assistance authorized to be appropriated by this Act or
any other Act may be provided by any agency of the United
States Government to the government of any country which
sells or licenses for sale any nuclear or dual-use technology
or any military weapons, equipment, ammunition or mu-
nitions of any kind, including any item included on any
lists covered by the Missile Technology Control Regime, to
Iran or to any other country which the Secretary of State
has determined repeatedly provides support for acts of
international terrorism pursuant to section 6(j) of the Ex-
port Administration Act of 1979.
(d) EXCEPTIONS.—The prohibition in subsection (c)
shall not apply to—
(1) assistance provided to Russia, Belarus,
Ukraine, or Kazakhstan under the authorities of the
Soviet Nuclear Threat Reduction Act of 1991 (title II
of Public Law 102–228; 105 Stat. 1691); and
(2) assistance provided under chapter 11 of part
I of the Foreign Assistance Act of 1961 (22 U.S.C.
2295 et seq.; relating to assistance for the independent
states of the former Soviet Union) for the purposes
of—
309
(A) humanitarian, disaster, or refugee re-
lief; or
(B) assisting democratic political reform
and rule of law activities, and assisting in the
creation of private sector and nongovernmental
organizations that are independent of govern-
ment ownership and control.
SEC. 3306. ASSISTANCE FOR PAKISTAN.
Section 620E(e) of the Foreign Assistance Act of 1961
(22 U.S.C. 2375(e)) is amended—
(1) by striking ‘‘No assistance shall’’ and insert-
ing ‘‘(1) Except as provided in paragraph (2), no as-
sistance shall’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2)(A) Assistance in support of nongovernmental or-
ganizations or microenterprises under chapter 1 of part I
of this Act (relating to development assistance) and assist-
ance under the provisions of law described in subparagraph
(B) may be made available for Pakistan.
‘‘(B) The provisions of law described in this subpara-
graph are the following:
‘‘(i) Title IV of chapter 2 of part I of this Act
(relating to the Overseas Private Investment Corpora-
tion).
310
‘‘(ii) Chapter 8 of part I of this Act (relating to
international narcotics control).
‘‘(iii) Chapter 5 of part II of this Act (relating
to international military education and training).
‘‘(iv) Chapter 8 of part II of this Act (relating
to antiterrorism assistance).
‘‘(v) Any provision of law under which assist-
ance is available to carry out the following activities:
‘‘(I) Aviation safety.
‘‘(II) Immigration and customs procedures.
‘‘(III) Peacekeeping.
‘‘(IV) Promotion of trade and investment
interests of the United States.
‘‘(C) Assistance described in subparagraph (B)(iii)
may be made available for Pakistan under this paragraph
for fiscal year 1997 and each subsequent fiscal year only
if the President certifies to the Congress for such fiscal year
that the Government of Pakistan is fully cooperating with
United States counter-narcotics assistance programs and
policies.’’.
SEC. 3307. RETURN OF MILITARY EQUIPMENT OF PAKISTAN.
It is the sense of the Congress that—
(1) the inability of the President since October 1,
1990, to make the necessary certification under sec-
tion 620E(e) of the Foreign Assistance Act of 1961
311
(relating to the nuclear activities of Pakistan) has
prevented the delivery of military aircraft for which
Pakistan made nonrefundable cash payments to con-
tractors and unnecessarily complicated the achieve-
ment of United States foreign policy and non-
proliferation objectives in South Asia;
(2) in the absence of a Presidential certification
for Pakistan under section 620E(e) of such Act, the
United States should make a determined effort to find
a third party buyer for the such military aircraft and
should reimburse Pakistan with any proceeds derived
from a sale to such third party, up to the amount
paid by Pakistan for such military aircraft; and
(3) with respect to other military equipment im-
ported into the United States from Pakistan prior to
May 1, 1991, for repair or modification by the De-
partment of Defense, the return of such military
equipment, including spare parts thereof, or equiva-
lent equipment or spare parts originally owned by
another country, does not constitute a transfer of
military equipment under the terms of section
620E(e) of such Act, provided such military equip-
ment or spare parts are returned in an unrepaired
state or without modifications for which they were
originally imported into the United States.
312
SEC. 3308. 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. 3309. 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 September
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 con-
sequently shall have the right to act against any ag-
gression or threat directed against the Canal or
against the peaceful transit of vessels through the
Canal.
313
(4) The United States instrument of ratification
of such Treaty includes specific language that the two
countries should consider negotiating future arrange-
ments or agreements to maintain military forces nec-
essary 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 agree-
ments.
(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 Ko-
rean War, the Vietnam conflict, the Cuban Missile
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 Operation
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.
314
(9) The United States and Panama share com-
mon policy goals such as strengthening democracy,
expanding economic trade, and combating illegal nar-
cotics throughout Latin America.
(10) The Government of Panama has dissolved
its military forces and has maintained only a civil-
ian 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 December 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
315
Panama Canal shall remain open, neutral, se-
cure, and accessible; and
(2) the President should consult with the Con-
gress throughout the negotiations described in para-
graph (1).
SEC. 3310. 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 So-
cialist Republic of Vietnam, and the People’s Republic
of China calls for all claimants to territory in the
South China Sea to resolve questions of boundaries
through peaceful negotiations.
316
(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 Repub-
lic of the Philippines and the construction of military
bases on territory claimed by the Philippines.
(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 security
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 Re-
public of China to adhere faithfully to its commit-
ment under the Manila Declaration of 1992; and
317
(4) calls upon the President to review the defense
needs of democratic countries with claims to territory
in the South China Sea.
SEC. 3311. SENSE OF THE CONGRESS REGARDING NARCOT-
ICS CONTROL EFFORTS OF COLOMBIA.
It is the sense of the Congress that—
(1) relations between the United States and Co-
lombia are at a critical stage, particularly following
the President’s March 1, 1995, decision to grant the
Government of Colombia a national interest waiver
in the 1994 narcotics certification determination;
(2) the Government of Colombia has undertaken
efforts toward the elimination of drug trafficking or-
ganizations, especially the powerful ‘‘kingpins’’ based
in Cali;
(3) important advances need to be taken to dis-
mantle the operations of criminal enterprises in Co-
lombia which seek to corrupt government institutions;
(4) the Government of Colombia should be en-
couraged to complete specific, attainable objectives in
its overall narcotics control strategy, including—
(A) the arrest and prosecution of the ac-
knowledged leaders of the Cali drug organization;
318
(B) the imposition of tougher sentencing of
drug traffickers to ensure that such traffickers
serve sentences commensurate with their crimes;
(C) the expeditious passage of legislation to
criminalize money laundering;
(D) the aggressive eradication of illicit
crops, including coca opium, and marijuana;
(E) the elimination of the industrial infra-
structure of the narcotics trade, including lab-
oratories, precursor chemicals, and aircraft;
(F) the destruction of the internal narcotics
distribution export system, including the use of
airports, rivers, and ports for such system;
(G) the elimination of the island of San An-
dres as a illegal narcotics transshipment point;
and
(H) the end of the current policy of the Gov-
ernment of Colombia under which key drug traf-
fickers are given lenient sentences in return for
their surrender;
(5) the Secretary of State should make the issue
of illicit narcotics the highest foreign policy priority
of the United States with respect to relations with key
illicit drug transit and producing nations, such as
Colombia; and
319
(6) the Secretary of State should request our Eu-
ropean allies to join the United States in sending a
clear message to Colombia on the importance of at-
taining these counternarcotics goals and objectives in
the shortest possible time so that reductions in United
States foreign assistance will not be necessary in the
future.
SEC. 3312. NOTIFICATION OF ARMS SALES TO SAUDI
ARABIA.
(a) NOTIFICATION.—Until the certification under sub-
section (b) is submitted to the Congress, section 36(b)(1) of
the Arms Export Control Act shall be applied to sales of
Saudi Arabia by substituting in the first sentence ‘‘0’’ for
$50,000,000, 
‘‘0’’ 
for 
$200,000,000, 
and 
‘‘0’’ 
for
$14,000,000.
(b) CERTIFICATION.—Subsection (a) shall cease to
apply if and when the Secretary of State certifies and re-
ports in writing to the Congress that the unpaid claims of
American firms against the Government of Saudi Arabia
that are described in the June 30, 1993, report by the Sec-
retary of Defense pursuant to section 9140(c) of the Depart-
ment of Defense Appropriations Act, 1993 (Public Law
102–396; 106 Stat. 1939), including the additional claims
noticed by the Department of Commerce on page 2 of that
report, have been resolved satisfactorily.
320
SEC. 3313. ASSISTANCE FOR ZAIRE.
(a) SECURITY ASSISTANCE.—Assistance may not be
transferred to the Government of Zaire for each of the fiscal
years 1996 and 1997—
(1) under chapter 4 of part II of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2346 et seq.; relating
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 military
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 assistance)
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 transferred to the Govern-
ment of Zaire.
321
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 President
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
322
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 Foreign
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
(other than chapter 1 or chapter 10 of part I of this
Act) for the purpose of providing assistance author-
ized by any other provision of this Act in accordance
with the provisions applicable to the furnishing of
such assistance.
323
‘‘(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 made avail-
able under the authority of this section may be used not-
withstanding any other provision of law.
‘‘(c) NOTIFICATION OF CONGRESS.—
‘‘(1) NOTIFICATION.—Except as provided in
paragraph (2), the President shall notify the congres-
sional 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 Presi-
dent determines that complying with such require-
ment 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 ap-
plicable.’’.
324
(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 assist-
ance and make loans under the provisions of law described
in subsection (b), notwithstanding any other provision 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 provisions
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; and
‘‘(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).
325
‘‘(c) CONSULTATION WITH CONGRESS.—Before exercis-
ing the authority under subsection (a), the President shall
consult with, and shall provide a written policy justifica-
tion to the Committee on International Relations and the
Committee on Appropriations of the House of Representa-
tives and the Committee on Foreign Relations and the Com-
mittee 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 subsection
(c) in writing of that determination.
‘‘(e) ANNUAL CEILINGS.—
‘‘(1) IN GENERAL.—The authority of this section
may not be used in any fiscal year to authorize—
‘‘(A) more than $750,000,000 in sales or
leases to be made under the Arms Export Control
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 CONTROL
ACT.—If the authority of this section is used both to
326
authorize a sale or lease under the Arms Export Con-
trol 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 limitation 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 provided
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 aggre-
gate limitation of $1,000,000,000 provided in para-
graph (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. 2367) is amended to read as follows:
327
‘‘SEC. 617. TERMINATION OF ASSISTANCE.
‘‘(a) IN GENERAL.—(1) In order to ensure the effective-
ness 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 expenses
of winding up such programs, projects, or activities and,
notwithstanding any other provision of law, funds so obli-
gated 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 wind-
ing up such programs, projects, and activities, notwith-
standing any provision of law restricting the expenditure
of funds, and may be reobligated to meet any other nec-
essary expenses arising from the termination of such assist-
ance.
‘‘(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 studies
outside their countries of origin of students whose course
of study or training program began before assistance was
terminated.
328
‘‘(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 termination
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 appro-
priations for foreign assistance programs for each fiscal
year, the President shall prepare and transmit to the Con-
gress annual congressional presentation documents for the
329
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 assistance
or contributions to each country, regional, or cen-
trally 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 assistance
provided by the United States since 1946, in-
cluding the principal amount of all loans, cred-
its, and guarantees; and
330
‘‘(C) the total amount of assistance provided
to such country from all multilateral organiza-
tions to which the United States is a member,
including all international financial institu-
tions, 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 Con-
gress under this section, the Secretary of State shall
make a separate determination for each country iden-
tified in such documents for which bilateral develop-
ment assistance is requested, estimating the year in
which each such country will no longer be receiving
bilateral development assistance.
‘‘(2) DEVELOPMENT ASSISTANCE DEFINED.—For
purposes of this section, the term ‘development assist-
ance’ 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.).’’.
331
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. 620J. PROHIBITION ON ASSISTANCE TO FOREIGN
GOVERNMENTS 
ENGAGED 
IN 
ESPIONAGE
AGAINST THE UNITED STATES.
‘‘(a) PROHIBITION.—None of the funds made available
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 Com-
mittee on Foreign Relations and the Select Committee on
Intelligence of the Senate and the Committee on Inter-
national Relations and the Permanent Select Committee on
Intelligence of the House of Representatives a report, in
classified and unclassified forms, listing all foreign govern-
ments which the President determines are conducting intel-