Sec. 1710. United States policy with respect to Jerusalem as the capital of Is-
rael.
Sec. 1711. Report on compliance with the Hague Convention on International
Child Abduction.
DIVISION 
A—INTERNATIONAL
AFFAIRS AGENCY CONSOLI-
DATION, UNITED NATIONS RE-
FORM, FOREIGN ASSISTANCE
REFORM, AND FOREIGN AS-
SISTANCE AUTHORIZATIONS
TITLE I—GENERAL PROVISIONS
SEC. 101. SHORT TITLE.
This division may be cited as the ‘‘Foreign Assistance
Reform Act of 1997’’.
SEC. 102. DECLARATION OF POLICY.
The Congress declares the following:
(1) United States leadership overseas must be
maintained to support America’s vital national secu-
rity, economic, and humanitarian overseas interests.
(2) As part of this leadership, United States
foreign assistance programs are essential to support
America’s overseas interests.
(3) Following the end of the Cold War, foreign
assistance programs must be reformed to take ad-
vantage of the opportunities for the United States in
the 21st century.
TITLE 
II—CONSOLIDATION 
OF
CERTAIN 
FOREIGN 
ASSIST-
ANCE AGENCIES
CHAPTER 1—GENERAL PROVISIONS
SEC. 201. SHORT TITLE
This title may be cited as the ‘‘International Affairs
Agency Consolidation Act of 1997’’.
SEC. 202. DEFINITIONS.
The following terms have the following meanings for
the purposes of this title:
(1) The term ‘‘USAID’’ means the United
States Agency for International Development.
(2) The term ‘‘Federal agency’’ has the mean-
ing given to the term ‘‘agency’’ by section 551(1) of
title 5, United States Code.
(3) The term ‘‘function’’ means any duty, obli-
gation, power, authority, responsibility, right, privi-
lege, activity, or program.
CHAPTER 
2—UNITED 
STATES 
INTER-
NATIONAL DEVELOPMENT COOPERA-
TION AGENCY
Subchapter A—Abolition of United States
International Development Cooperation
Agency and Transfer of Functions to
United States Agency for International
Development
SEC. 211. ABOLITION OF UNITED STATES INTERNATIONAL
DEVELOPMENT COOPERATION AGENCY.
(a) IN GENERAL.—The United States International
Development Cooperation Agency is hereby abolished.
(b) CONFORMING
AMENDMENTS.—The following
shall cease to be effective:
(1) Reorganization Plan Numbered 2 of 1979
(5 U.S.C. App.).
(2) Sections 1–101 through 1–103, sections 1–
401 through 1–403, and such other provisions that
relate to the United States International Develop-
ment Cooperation Agency or the Director of such
Agency, of Executive Order 12163 (22 U.S.C. 2381
note; relating to administration of foreign assistance
and related functions).
(3) The International Development Cooperation
Agency Delegation of Authority Numbered 1 (44
Fed. Reg. 57521), except for section 1–6 of such
Delegation of Authority.
(4) Section 3 of Executive Order 12884 (58
Fed. Reg. 64099; relating to the delegation of func-
tions under the Freedom for Russia and Emerging
Eurasian Democracies and Open Markets Support
Act of 1992, the Foreign Assistance Act of 1961,
the Foreign Operations, Export Financing and Re-
lated Programs Appropriations Act, 1993, and sec-
tion 301 of title 3, United States Code).
(c) EFFECTIVE DATE.—This section shall take effect
6 months after the date of the enactment of this Act.
SEC. 212. TRANSFER OF FUNCTIONS TO UNITED STATES
AGENCY 
FOR 
INTERNATIONAL 
DEVELOP-
MENT.
(a) IN GENERAL.—There are transferred to the Ad-
ministrator of the United States Agency for International
Development all functions of the Director of United States
International Development Cooperation Agency and all
functions of such Agency and any officer or component
of such agency under any statute, reorganization plan, Ex-
ecutive order, or other provision of law before the effective
date of this title.
(b) EFFECTIVE DATE.—This section shall take effect
6 months after the date of the enactment of this Act.
SEC. 213. TRANSITION PROVISIONS.
(a) 
TRANSFER
OF
PERSONNEL, 
PROPERTY,
RECORDS, AND UNEXPENDED BALANCES.—
(1) PERSONNEL, PROPERTY, AND RECORDS.—
So much of the personnel, property, and records of
the United States International Development Co-
operation Agency as the Director of the Office of
Management and Budget shall determine shall be
transferred to the United States Agency for Inter-
national Development at such time or times as the
Director of the Office of Management and Budget
shall provide.
(2) UNEXPENDED BALANCES.—To the extent
provided in advance in appropriations Acts, so much
of the unexpended balances of appropriations, alloca-
tions, and other funds employed, used, held, avail-
able, or to be made available to the United States
International Development Cooperation Agency as
the Director of the Office of Management and Budg-
et shall determine shall be transferred to the United
States Agency for International Development at
such time or times as the Director of Office of Man-
agement and Budget shall provide, except that no
such unexpended balances transferred shall be used
for purposes other than those for which the appro-
priation was originally made.
(b) TERMINATING AGENCY AFFAIRS.—The Director
of the Office of Management and Budget shall provide for
terminating the affairs of the United States International
Development Cooperation Agency and for such further
measures and dispositions as such Director deems nec-
essary to accomplish the purposes of this subchapter.
Subchapter B—Continuation of United States
Agency for International Development
and Placement of Administrator of Agen-
cy under the Direction of the Secretary of
State
SEC. 221. CONTINUATION OF UNITED STATES AGENCY FOR
INTERNATIONAL DEVELOPMENT AND PLACE-
MENT 
OF 
ADMINISTRATOR 
OF 
AGENCY
UNDER THE DIRECTION OF THE SECRETARY
OF STATE.
(a) CONTINUATION OF USAID AS FEDERAL AGEN-
CY.—The United States Agency for International Develop-
ment, established in the Department of State pursuant to
the State Department Delegation of Authority Numbered
104 (26 Fed. Reg. 10608) and subsequently transferred
to the United States International Development Coopera-
tion Agency pursuant to the International Development
Cooperation Agency Delegation of Authority Numbered 1
(44 Fed. Reg. 57521), shall be continued in existence as
a Federal agency of the United States.
(b) PLACEMENT
OF ADMINISTRATOR
OF USAID
UNDER DIRECTION OF SECRETARY OF STATE.—
(1) IN
GENERAL.—The Administrator of the
United States Agency for International Develop-
ment, appointed pursuant to section 624(a) of the
Foreign Assistance Act of 1961 (22 U.S.C.
2384(a))—
(A) shall continue to head such Agency;
and
(B) shall be under the direction of the Sec-
retary of State.
(2) OTHER REQUIREMENTS.—Except to the ex-
tent inconsistent with other provisions of this Act,
the Administrator—
(A) shall continue to exercise all functions
that the Administrator exercised before the ef-
fective date of this Act; and
(B) shall exercise all functions transferred
to the Administrator pursuant to section 212.
(c) OTHER OFFICERS OF AID.—The other officers
of the United States Agency for International Develop-
ment, appointed pursuant to section 624(a) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2384(a)), shall con-
tinue to exercise such functions as the Administrator
deems appropriate.
Subchapter C—Conforming Amendments
SEC. 231. CONFORMING AMENDMENTS.
(a) TITLE
5, UNITED
STATES
CODE.—Section
7103(a)(2)(B)(iv) of title 5, United States Code, is
amended by striking ‘‘the United States International De-
velopment Cooperation Agency’’ and inserting ‘‘the United
States Agency for International Development’’.
(b) INSPECTOR GENERAL ACT OF 1978.—Section 8A
of the Inspector General Act of 1978 (5 U.S.C. App. 8A)
is amended—
(1) in subsection (a)—
(A) by striking paragraph (2);
(B) by striking ‘‘Agency for International
Development—’’ and all that follows through
‘‘shall supervise’’ and inserting ‘‘Agency for
International Development shall supervise’’; and
(C) by striking ‘‘; and’’ at the end and in-
serting a period;
(2) by striking subsection (c); and
(3) by striking subsection (f).
(c) INTERNATIONAL SECURITY AND DEVELOPMENT
COOPERATION ACT OF 1980.—Section 316 of the Inter-
national Security and Development Cooperation Act of
1980 (22 U.S.C. 2151 note) is amended—
(1) in subsection (a)—
(A) in the first sentence, by striking ‘‘Di-
rector of the United States International Devel-
opment Cooperation Agency’’ and inserting
‘‘Administrator of the United States Agency for
International Development’’; and
(B) in the second sentence, by striking
‘‘Director’’ and inserting ‘‘Administrator’’; and
(2) in subsection (b), by striking ‘‘Director’’
and inserting ‘‘Administrator’’.
(d) STATE DEPARTMENT BASIC AUTHORITIES ACT
OF 1956.—(1) Section 25(f) of the State Department
Basic Authorities Act of 1956 (22 U.S.C. 2697(f)) is
amended by striking ‘‘Director of the United States Inter-
national Development Cooperation Agency’’ and inserting
‘‘Administrator of the United States Agency for Inter-
national Development’’.
(2) Section 26(b) of such Act (22 U.S.C. 2698(b))
is amended by striking ‘‘Director of the United States
International Development Cooperation Agency’’ and in-
serting ‘‘Administrator of the United States Agency for
International Development’’.
(3) Section 32 of such Act (22 U.S.C. 2704) is
amended in the second sentence by striking ‘‘Director of
the United States International Development Cooperation
Agency’’ and inserting ‘‘Administrator of the United
States Agency for International Development’’.
(e) FOREIGN SERVICE ACT OF 1980.—(1) Section
202(a)(1) of the Foreign Service Act of 1980 (22 U.S.C.
3922(a)(1)) is amended by striking ‘‘Director of the Unit-
ed States International Development Cooperation Agency’’
and inserting ‘‘Administrator of the United States Agency
for International Development’’.
(2) Section 210 of such Act (22 U.S.C. 3930) is
amended in the second sentence by striking ‘‘United
States International Development Cooperation Agency’’
and inserting ‘‘United States Agency for International De-
velopment’’.
(3) Section 1003(a) of such Act (22 U.S.C. 4103(a))
is amended by striking ‘‘United States International De-
velopment Cooperation Agency’’ and inserting ‘‘United
States Agency for International Development’’.
(4) Section 1101(c) of such Act (22 U.S.C. 4131(c))
is amended by striking ‘‘United States International De-
velopment Cooperation Agency’’ and inserting ‘‘United
States Agency for International Development’’.
(f) TITLE 26, UNITED STATES CODE.—(1) Section
170(m)(7) of title 26, United States Code, is amended by
striking ‘‘Director of the United States International De-
velopment Cooperation Agency’’ and inserting ‘‘Adminis-
trator of the United States Agency for International De-
velopment’’.
(2) Section 2055(g)(6) of title 26, United States
Code, is amended by striking ‘‘Director of the United
States International Development Cooperation Agency’’
and inserting ‘‘Administrator of the United States Agency
for International Development’’.
(g) TITLE 49, UNITED STATES CODE.—Section
40118(d) of title 49, United States Code, is amended by
striking ‘‘Director of the United States International De-
velopment Cooperation Agency’’ and inserting ‘‘Adminis-
trator of the United States Agency for International De-
velopment’’.
(h) EXPORT ADMINISTRATION ACT OF 1979.—Sec-
tion 6(g) of the Export Administration Act of 1979 (50
U.S.C. App. 2405(g)) is amended—
(1) in the third sentence, by striking ‘‘Director
of the United States International Development Co-
operation Agency’’ and inserting ‘‘Administrator of
the United States Agency for International Develop-
ment’’;
(2) in the fourth sentence, by striking ‘‘Direc-
tor’’ and inserting ‘‘Administrator’’; and
(3) in the sixth sentence, by striking ‘‘Director
of the United States International Development Co-
operation Agency’’ and inserting ‘‘Administrator of
the United States Agency for International Develop-
ment’’.
SEC. 232. OTHER REFERENCES.
Any reference in any statute, reorganization plan,
Executive order, regulation, agreement, determination, or
other official document or proceeding to—
(1) the Director of the United States Inter-
national Development Cooperation Agency or any
other officer or employee of the United States Inter-
national Development Cooperation Agency shall be
deemed to refer to the Administrator of the United
States Agency for International Development; and
(2) the United States International Develop-
ment Cooperation Agency shall be deemed to refer
to the United States Agency for International Devel-
opment.
SEC. 233. EFFECTIVE DATE.
This subchapter shall take effect 6 months after the
date of the enactment of this Act.
TITLE III—FOREIGN ASSISTANCE
REFORM
SEC. 301. GRADUATION FROM DEVELOPMENT ASSISTANCE.
Section 634 of the Foreign Assistance Act of 1961
(22 U.S.C. 2394) is amended to read as follows:
‘‘SEC. 634. CONGRESSIONAL PRESENTATION DOCUMENTS.
‘‘(a) REQUIREMENT FOR SUBMISSION.—As part of
the annual requests for enactment of authorizations and
appropriations for foreign assistance programs for each
fiscal year, the President shall prepare and transmit to
the Congress annual congressional presentation docu-
ments for the programs authorized under this Act and the
Arms Export Control Act (22 U.S.C. 2751 et seq.).
‘‘(b) MATERIALS TO BE INCLUDED.—The documents
submitted pursuant to subsection (a) shall include—
‘‘(1) the rationale and direct United States na-
tional interest for the allocation of assistance or con-
tributions to each country, regional, or centrally-
funded program, or organization, as the case may
be;
‘‘(2) a description of how each such program or
contribution supports the objectives of this Act or
the Arms Export Control Act, as the case may be;
‘‘(3) a description of planned country, regional,
or centrally-funded programs or contributions to
international organizations and programs for the
coming fiscal year; and
‘‘(4) for each country for which assistance is re-
quested under this Act or the Arms Export Control
Act—
‘‘(A) the total number of years since 1946
that the United States has provided assistance;
‘‘(B) the total amount of bilateral assist-
ance provided by the United States since 1946,
including the principal amount of all loans,
credits, and guarantees; and
‘‘(C) the total amount of assistance pro-
vided to such country from all multilateral or-
ganizations to which the United States is a
member, including all international financial in-
stitutions, the United Nations, and other inter-
national organizations.
‘‘(c) GRADUATION FROM DEVELOPMENT ASSIST-
ANCE.—
‘‘(1) DETERMINATION.—As part of the congres-
sional presentation documents transmitted to the
Congress under this section, the President shall
make a separate determination for each country
identified in such documents for which bilateral de-
velopment assistance is requested, estimating the
year in which each such country will no longer be re-
ceiving bilateral development assistance.
‘‘(2) DEVELOPMENT
ASSISTANCE
DEFINED.—
For purposes of this section, the term ‘‘development
assistance’’ means assistance under—
‘‘(A) chapter 1 of part I of this Act;
‘‘(B) chapter 10 of part I of this Act;
‘‘(C) chapter 11 of part I of this Act; and
‘‘(D) the Support for East European De-
mocracy (SEED) Act of 1989 (22 U.S.C. 5401
et seq.).’’.
SEC. 302. PROHIBITION ON ASSISTANCE TO COUNTRIES
THAT CONSISTENTLY OPPOSE THE UNITED
STATES POSITION IN THE UNITED NATIONS
GENERAL ASSEMBLY.
(a) IN GENERAL.—Section 620 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2370) is amended by insert-
ing after subsection (u) the following new subsection:
‘‘(v)(1) United States assistance may not be provided
to a country that consistently opposed the United States
position in the United Nations General Assembly during
the most recently completed session of the General Assem-
bly.
‘‘(2) If—
‘‘(A) the Secretary of State determines that,
since the beginning of the most recently completed
session of the General Assembly, there has been a
fundamental change in the leadership and policies of
the government of a country to which the prohibition
in paragraph (1) applies, and
‘‘(B) the Secretary believes that because of that
change the government of that country will no
longer consistently oppose the United States position
in the General Assembly,
the Secretary may exempt that country from that prohibi-
tion. Any such exemption shall be effective only until sub-
mission of the next report under section 406 of the For-
eign Relations Authorization Act, Fiscal Years 1990 and
1991. The Secretary shall submit to the Congress a certifi-
cation of each exemption made under this paragraph.
Such certification shall be accompanied by a discussion of
the basis for the Secretary’s determination and belief with
respect to such exemption.
‘‘(3) The Secretary of State may waive the require-
ment of paragraph (1) if the Secretary determines and re-
ports to the Congress that despite the United Nations vot-
ing pattern of a particular country, the provision of United
States assistance to that country is necessary to promote
United States foreign policy objectives.
‘‘(4) As used in this subsection—
‘‘(A) the term ‘consistently opposed the United
States position’ means that the country’s votes in
the United Nations General Assembly coincided with
the United States position less than 25 percent of
the time, using for this purpose the overall percent-
age-of-voting coincidences set forth in the annual re-
port submitted to the Congress pursuant to section
406 of the Foreign Relations Authorization Act, Fis-
cal Years 1990 and 1991;
‘‘(B) the term ‘most recently completed session
of the General Assembly’ means the most recently
completed plenary session of the General Assembly
for which overall percentage-of-voting coincidences is
set forth in the most recent report submitted to the
Congress pursuant to section 406 of the Foreign Re-
lations Authorization Act, Fiscal Years 1990 and
1991; and
‘‘(C) the term ‘United States assistance’ means
assistance under—
‘‘(i) chapter 11 of part I of this Act (relat-
ing to assistance for the independent states of
the former Soviet Union);
‘‘(ii) chapter 4 of part II of this Act (relat-
ing to the economic support fund),
‘‘(iii) chapter 5 of part II of this Act (re-
lating to international military education and
training),
‘‘(iv) chapter 1 of part I of this Act (relat-
ing to development assistance), except that such
term shall not include assistance under chapter
1 of part I of this Act in the case of countries
that voted in the United Nations General As-
sembly on less than 50 percent of the recorded
plenary votes,
‘‘(v) section 23 of the Arms Export Con-
trol Act (22 U.S.C. 2763; relating to the ‘For-
eign Military Financing Program’), or
‘‘(vi) the Support for East European De-
mocracy (SEED) Act of 1989 (22 U.S.C. 5401
et seq.),
except that such term does not include assistance
under chapter 8 of part I of this Act (relating to
international narcotics control) or assistance under
chapter 8 of part II of this Act (relating to
antiterrorism assistance).’’.
(b) EFFECTIVE DATE.—Section 620(v) of the For-
eign Assistance Act of 1961, as added by subsection (a),
shall take effect upon the date of the submission to the
Congress of the report pursuant to section 406 of the For-
eign Relations Authorization Act, Fiscal Years 1990 and
1991, that is required to be submitted by March 31, 1998.
SEC. 303. LIMITATION ON GOVERNMENT-TO-GOVERNMENT
ASSISTANCE.
(a) IN GENERAL.—For each of the fiscal years 1998
and 1999, the President should allocate an aggregate level
to private and voluntary organizations and cooperatives
under the Foreign Assistance Act of 1961 (22 U.S.C.
2151 et seq.) which reflects an increasing level allocated
to such organizations and cooperatives under such Act
since fiscal year 1995.
(b) DEFINITION.—For purposes of this section, the
term ‘‘private and voluntary organization’’ means a pri-
vate non-governmental 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 ap-
propriate tax-exempt status if the laws of the coun-
try 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.
(c) REPORT.—
(1) IN GENERAL.— Not later than September
30, 1997, the United States Agency for Inter-
national Development shall submit a report to the
Congress on the amount of its funding being chan-
neled through and private and voluntary organiza-
tions.
(2) ADDITIONAL REQUIREMENTS.—(A) The re-
port should use fiscal year 1995 as a baseline and
include an implementation plan for steadily increas-
ing the percentage of assistance channeled through
such organizations, consistent with the funding com-
mitment announced by Vice President Gore in
March 1995.
(B) The report should also indicate the propor-
tion of funds made available under the following pro-
visions and channeled through such organizations:
(i) Chapter 11 of part I of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2295 et seq.).
(ii) The Support for East European De-
mocracy (SEED) Act of 1989 (22 U.S.C. 5401
et seq.).
(iii) Chapter 4 of part II of the Foreign
Assistance Act of 1961 (22 U.S.C. 2346).
SEC. 304. MICRO- AND SMALL ENTERPRISE DEVELOPMENT
CREDITS.
Section 108 of the Foreign Assistance 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 de-
velopment and stability of a free, open, and equi-
table international economic system;
‘‘(2) it is, therefore, in the best interests of the
United States to assist the development of the pri-
vate 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
‘‘(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 as-
sistance 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 cred-
it 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.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There is authorized to be
appropriated the following amounts for the following
purposes (in addition to amounts otherwise available
for such purposes):
‘‘(A)(i) $1,500,000 for each of the fiscal
years 1998 and 1999 to carry out subsection
(b)(1).
‘‘(ii) Funds authorized to be appropriated
under this subparagraph shall be made avail-
able for the subsidy cost, as defined in section
502(5) of the Federal Credit Reform Act of
1990, for activities under such subsection.
‘‘(B) $500,000 for each of the fiscal years
1998 and 1999 to carry out paragraphs (2) and
(3) of subsection (b).
‘‘(2) AVAILABILITY
OF
AMOUNTS.—Amounts
authorized to be appropriated under paragraph (1)
are authorized to remain available until expended.’’.
SEC. 305. 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 inserting
after section 108, as amended by this Act, the following
new section:
‘‘SEC. 108A. MICROENTERPRISE DEVELOPMENT GRANT AS-
SISTANCE.
‘‘(a) AUTHORIZATION.—(1) In carrying out this part,
the Administrator of the United States Agency for Inter-
national Development is authorized to provide grant as-
sistance for programs of credit and other assistance for
micro enterprises in developing countries.
‘‘(2) Assistance authorized under paragraph (1) shall
be provided through organizations that have a capacity to
develop and implement microenterprise programs, includ-
ing particularly—
‘‘(A) United States and indigenous private
and voluntary organizations;
‘‘(B) United States and indigenous credit
unions and cooperative organizations; or
‘‘(C) other indigenous governmental and
nongovernmental organizations.
‘‘(3) Approximately one-half of the credit assistance
authorized under paragraph (1) shall be used for poverty
lending programs, including the poverty lending portion
of mixed programs. Such programs—
‘‘(A) shall meet the needs of the very poor
members of society, particularly poor women; and
‘‘(B) should provide loans of $300 or less in
1995 United States dollars to such poor members of
society.
‘‘(4) The Administrator should continue support for
mechanisms that—
‘‘(A) provide technical support for field mis-
sions;
‘‘(B) strengthen the institutional development
of the intermediary organizations described in para-
graph (2); and
‘‘(C) share information relating to the provision
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 au-
thorized under subsection (a)(1), the Administrator should
establish a monitoring system that—
‘‘(1) establishes performance goals for such as-
sistance 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 sus-
tainable development impact of such assistance, par-
ticularly the impact of such assistance on the very
poor, particularly poor women.’’.
SEC. 306. 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 fol-
lowing 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 eligi-
ble countries, including small businesses, the agricul-
tural 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, except sections
502B and 490 of this Act.
‘‘(b) 
COUNTRIES
ELIGIBLE
FOR
ENTERPRISE
FUNDS.—(1) Except as provided in paragraph (2), the
President is authorized to designate a private, nonprofit
organization as eligible to receive funds and support pur-
suant 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 sec-
tion 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) 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 other-
wise specifically provided in this section, the provisions
contained in section 201 of the Support for East Euro-
pean Democracy (SEED) Act of 1989 (22 U.S.C. 5421)
(excluding the authorizations of appropriations provided
in subsection (b) of that section) shall apply to any Enter-
prise Fund that receives Funds and support under this
section. The officers, members, or employees of an Enter-
prise Fund that receive funds and support under this sec-
tion shall enjoy the same status under law that is applica-
ble to officers, members, or employees of the Enterprise
Funds for Poland and Hungary under section 201 of the
Support for East European Democracy (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
support under this section for the first twelve months after
it is designated as eligible to receive such funds and sup-
port.
‘‘(e) FUNDING.—(1) 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 fiscal year to
carry out this section, in addition to amounts otherwise
available for such purposes.
‘‘(2) In addition to amounts available under para-
graph (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 available for such fiscal year to carry out this section
with respect to countries in Africa.’’.
SEC. 307. DEVELOPMENT CREDIT AUTHORITY.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151
et seq.) is amended by inserting after section 106 the fol-
lowing:
‘‘SEC. 107A. DEVELOPMENT CREDIT AUTHORITY.
‘‘(a) GENERAL AUTHORITY.—The President is au-
thorized to use credit authority (loans, loan guarantees,
and other investments involving the extension of credit)
to achieve any of the development purposes of this part
in cases where—
‘‘(1) the borrowers or activities are deemed suf-
ficiently creditworthy and do not otherwise have ac-
cess to such credit; and
‘‘(2) the use of credit authority would be appro-
priate to the achievement of such development pur-
poses.
‘‘(b) PRIORITY SECTOR POLICIES AND ACTIVITIES.—
‘‘(1) IN
GENERAL.—To the maximum extent
practicable, preference shall be given to the use of
credit authority to promote—
‘‘(A) micro- and small enterprise develop-
ment policies of section 108;
‘‘(B) sustainable urban and environmental
activities pursuant to the policy directives set
forth in this part; and
‘‘(C) other development activities that will
support and enhance grant-financed policy and
institutional reforms under this part.
‘‘(2) DEVELOPMENT CREDIT AUTHORITY.—The
credit authority described in paragraph (1) shall be
known as the ‘Development Credit Authority’.
‘‘(c) GENERAL AUTHORITY.—
‘‘(1) AUTHORITY.—Of the amounts made avail-
able to carry out this chapter, chapters 10 and 11
of this part, chapter 4 of part II of this Act, and
the Support for East European Democracy (SEED)
Act of 1989 for fiscal years 1998 and 1999, not
more than $13,000,000 for each such fiscal year
may be made available to carry out this section.
‘‘(2) LIMITATIONS.—(A) Funds made available
under paragraph (1) shall be used for activities in
the same geographic region for which such funds
were originally allocated.
‘‘(B) The President shall notify the congres-
sional committees specified in section 634A at least
fifteen days in advance of each transfer of funds
under paragraph (1) in accordance with procedures
applicable to reprogramming notifications under
such section.
‘‘(3) SUBSIDY COST.—Amounts made available
under paragraph (1) 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 this section.
‘‘(4) ADMINISTRATIVE EXPENSES.—
‘‘(A) AMOUNTS MADE AVAILABLE.—Of the
amounts made available under paragraph (1)
for a fiscal year, not more than $1,500,000
may be made available for administrative ex-
penses to carry out this section.
‘‘(B) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—In addition to amounts made available
under subparagraph (A), there are authorized
to be appropriated for administrative expenses
to carry out this section and section 221
$6,000,000 for each of the fiscal years 1998
and 1999.
‘‘(C) TRANSFER
AUTHORITY.—Amounts
made available under and subparagraph (A)
and amounts authorized to be appropriated
under subparagraph (B) may be transferred
and merged with amounts made available for
‘Operating Expenses of the Agency for Inter-
national Development’.
‘‘(5) AVAILABILITY.—Amounts made available
under paragraph (1) are authorized to remain avail-
able until expended.
‘‘(d) GENERAL PROVISIONS APPLICABLE TO DEVEL-
OPMENT CREDIT AUTHORITY.—
‘‘(1) POLICY
PROVISIONS.—In providing the
credit assistance authorized by this section, the
President should apply, as appropriate, the policy
provisions in this part applicable to development as-
sistance activities.
‘‘(2) DEFAULT
AND
PROCUREMENT
PROVI-
SIONS.—
‘‘(A) DEFAULT
PROVISION.—The provi-
sions of section 620(q) of this Act, or any com-
parable provisions of law, shall not be construed
to prohibit assistance to a country in the event
that a private sector recipient of assistance fur-
nished under this section is in default in its
payment to the United States for the period
specified in such section.
‘‘(B) PROCUREMENT
PROVISION.—Assist-
ance may be provided under this section with-
out regard to section 604(a) of this Act.
‘‘(3) TERMS AND CONDITIONS OF CREDIT AS-
SISTANCE.—(A) Assistance provided under this sec-
tion shall be offered on such terms and conditions,
including fees charged, as the President may deter-
mine.
‘‘(B) The principal amount of loans made or
guaranteed under this section in any fiscal year,
with respect to any single country or borrower, may
not exceed $100,000,000.
‘‘(C) No payment may be made under any
guarantee issued under this section for any loss aris-
ing out of fraud or misrepresentation for which the
party seeking payment is responsible.
‘‘(4) FULL FAITH AND CREDIT.—All guarantees
issued under this section shall constitute obligations,
in accordance with the terms of such guarantees, of
the United States of America and the full faith and
credit of the United States of America is hereby
pledged for the full payment and performance of
such obligations to the extent of the guarantee.
‘‘(5) CO-FINANCING AND RISK SHARING.—
‘‘(A) IN
GENERAL.—(i) Assistance pro-
vided under this section shall be in the form of
co-financing or risk sharing.
‘‘(ii) Credit assistance may not be provided
to a borrower under this section unless the Ad-
ministrator of the United States Agency for
International Development determines that
there are reasonable prospects of repayment by
such borrower.
‘‘(B) ADDITIONAL
REQUIREMENT.—The
investment or risk of the United States in any
one development activity may not exceed 80
percent of the total outstanding investment or
risk.
‘‘(6) ELIGIBLE BORROWERS.—
‘‘(A) IN GENERAL.—(i) In order to be eli-
gible to receive credit assistance under this sec-
tion, a borrower shall be sufficiently credit wor-
thy so that the estimated costs (as defined in
section 502 of the Federal Credit Reform Act)
of the proposed credit assistance for the bor-
rower does not exceed 30 percent of the prin-
cipal amount of credit assistance to be received.
‘‘(ii)(I) In addition, with respect to the eli-
gibility of foreign governments as an eligible
borrowers under this section, the Administrator
of the United States Agency for International
Development shall make a determination that
the additional debt of the government will not
exceed the debt repayment capacity of the gov-
ernment.
‘‘(II) In making the determination under
subclause (I), the Administrator shall consult,
as appropriate, with international financial in-
stitutions and other institutions or agencies
that assess debt service capacity.
‘‘(7) ASSESSMENT OF CREDIT RISK.—(A) The
Administrator of the United States Agency for
International Development shall use the Interagency
Country Risk Assessment System (ICRAS) and the
methodology approved by the Office of Management
and Budget to assess the cost of risk credit assist-
ance provided under this section to foreign govern-
ments.
‘‘(B) With respect to the provision of credit to
nongovernmental organizations, the Administrator—
‘‘(i) shall consult with appropriate private
sector institutions, including the two largest
United States private sector debt rating agen-
cies, prior to establishing the risk assessment
standards and methodologies to be used; and
‘‘(ii) shall periodically consult with such in-
stitutions in reviewing the performance of such
standards and methodologies.
‘‘(C) In addition, if the anticipated share of fi-
nancing attributable to public sector owned or con-
trolled entities, including the United States Agency
for International Development, exceeds 49 percent,
the Administrator shall determine the cost (as de-
fined in section 502(5) of the Federal Credit Reform
Act of 1990) of such assistance by using the cost
and risk assessment determinations of the private
sector co-financing entities.
‘‘(8) USE
OF
UNITED
STATES
TECHNOLOGY,
FIRMS, AND EQUIPMENT.—Activities financed under
this section shall, to the maximum extent prac-
ticable, use or employ United States technology,
firms, and equipment.’’.
SEC. 308. FOREIGN GOVERNMENT PARKING FINES.
(a) IN GENERAL.—Chapter 1 of part III of the For-
eign 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. 620K. FOREIGN GOVERNMENT PARKING FINES.
‘‘(a) IN GENERAL.—An amount equivalent to 110
percent of the total unpaid fully adjudicated parking fines
and penalties owed to the District of Columbia, Virginia,
Maryland, New York, and New York City by the govern-
ment of a foreign country as of the end of a fiscal year,
as certified and transmitted to the President by the chief
executive officer of each State, City, 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-
ments of the District of Columbia, Virginia, Maryland,
and New York.
‘‘(c) APPROPRIATE CONGRESSIONAL COMMITTEES
DEFINED.—For purposes of this section, the term ‘appro-
priate congressional committees’ means the Committee on
International Relations and the Committee on Appropria-
tions of the House of Representatives and the Committee
on Foreign Relations and the Committee on Appropria-
tions of the Senate.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply with respect to fines certified
as of the end of fiscal year 1998 or any fiscal year there-
after.
(c) TECHNICAL AMENDMENT.—The second section
620G of the Foreign Assistance Act of 1961, as added
by section 149 of Public Law 104–164 (110 Stat. 1436)—
(1) is redesignated as section 620J of such Act;
and
(2) is inserted after section 620I of such Act.
TITLE IV—DEFENSE AND
SECURITY ASSISTANCE
CHAPTER 1—NARCOTICS CONTROL
ASSISTANCE
SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
Section 482(a)(1) of the Foreign Assistance Act of
1961 (22 U.S.C. 2291a(a)(1)) is amended by striking
‘‘$147,783,000 for fiscal year 1993 and $171,500,000 for
fiscal year 1994’’ and inserting ‘‘$230,000,000 for each
of the fiscal years 1998 and 1999’’.
SEC. 402. ADDITIONAL REQUIREMENTS RELATING TO AS-
SISTANCE.
(a) IN GENERAL.—Section 481(e)(4) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2291(e)(4)) is amend-
ed—
(1) in subparagraph (A)(ii), inserting ‘‘or under
chapter 5 of part II’’ after ‘‘(including chapter 4 of
part II)’’; and
(2) in subparagraph (B), by inserting before
the semicolon at the end the following: ‘‘, other than
sales or financing provided for narcotics-related pur-
poses following notification in accordance with proce-
dures applicable to reprogramming notifications
under section 634A of this Act.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply with respect to assistance pro-
vided on or after the date of the enactment of this Act.
CHAPTER 
2—NONPROLIFERATION,
ANTITERRORISM, DEMINING, AND RE-
LATED PROGRAMS
SEC. 
411. 
NONPROLIFERATION, 
ANTITERRORISM,
DEMINING, AND RELATED PROGRAMS.
Part II of the Foreign Assistance Act of 1961 (22
U.S.C. 2301 et seq.) is amended by adding at the end
the following (and conforming the table of contents ac-
cordingly):
‘‘CHAPTER 
9—NONPROLIFERATION,
ANTITERRORISM, DEMINING AND RE-
LATED PROGRAMS
‘‘SEC. 581. NONPROLIFERATION AND DISARMAMENT FUND.
‘‘(a) ESTABLISHMENT
OF FUND.—The President
shall establish a Nonproliferation and Disarmament Fund,
which may be used notwithstanding any other provision
of law, to promote bilateral and multilateral nonprolifera-
tion and disarmament activities—
‘‘(1) to halt the proliferation of nuclear, biologi-
cal, and chemical weapons, their delivery systems,
related technologies, and other weapons;
‘‘(2) to dismantle and destroy nuclear, biologi-
cal, and chemical weapons, their delivery systems,
and conventional weapons;
‘‘(3) to prevent the diversion of weapons-related
scientific and technical expertise; and
‘‘(4) to support science and technology centers
in Russia and the Ukraine.
‘‘(b) 
PROHIBITED
ACTIVITIES.—Amounts 
made
available to carry out subsection (a) may not be used to
implement United States obligations pursuant to bilateral
or multilateral arm control treaties or nonproliferation ac-
cords, including the payment of salaries and expenses.
‘‘(c) ADDITIONAL REQUIREMENTS.—
‘‘(1) NOTIFICATION.—Amounts made available
to carry out subsection (a) may be provided only if
the congressional committees specified in section
634A of this Act are notified at least fifteen days
before providing funds under such subsection in ac-
cordance with procedures applicable to reprogram-
ming notifications under such section.
‘‘(2) ASSISTANCE
FOR
THE
INDEPENDENT
STATES OF THE FORMER SOVIET UNION AND INTER-
NATIONAL
ORGANIZATIONS.—Amounts made avail-
able to carry out subsection (a) may only be pro-
vided for the independent states of the former Soviet
Union and international organizations if the Sec-
retary of State—
‘‘(A) determines it is in the national inter-
est of the United States to do so; and
‘‘(B) includes such determination in the
notification described in paragraph (1).
‘‘(d) AVAILABILITY OF AMOUNTS.—
‘‘(1) IN
GENERAL.—Of the amounts made
available to carry out this chapter for fiscal years
1998 and 1999—
‘‘(A) not less than $15,000,000 for each
such fiscal year may be made available to carry
out subsection (a); and
‘‘(B) not more than $5,000,000 of the
amount made available under subparagraph (A)
for fiscal year 1998, and not more than
$3,000,000 of such amount made available in
fiscal year 1999, may be used to support export
control programs.
‘‘(2) AVAILABILITY.—Amounts made available
under paragraph (1) are authorized to remain avail-
able until expended.
heavy fuel oil costs associated with implementation of the
Agreed Framework.
‘‘SEC. 585. DEFINITIONS.
‘‘As used in this chapter
‘‘(1) AGREED FRAMEWORK.—The term ‘‘Agreed
Framework’’ means the documents agreed to be-
tween the United States and the Democratic Peo-
ple’s Republic of Korea on October 21, 1994, re-
garding elimination of the nuclear weapons program
of the Democratic People’s Republic of Korea and
the provision of certain assistance to that country.
‘‘(2) INDEPENDENT STATES OF THE FORMER
SOVIET
UNION.—The term ‘independent states of
the former Soviet Union’ has the meaning given
such term in section 3 of the Freedom for Russia
and Emerging Eurasian Democracies and Open
Markets Support Act of 1992 (22 U.S.C. 5801).
‘‘SEC. 586. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated $110,000,000 for fiscal
year 1998 and $111,000,000 for fiscal year 1999, in addi-
tion to amounts otherwise available for such purposes, to
carry out the purpose of this chapter. –
‘‘(b) ADMINISTRATIVE AUTHORITIES.—Any agency
of the United States Government may utilize such funds
in accordance with authority granted under this Act or
under authority governing the activities of that agency.
‘‘(c) DESIGNATION
OF ACCOUNT.—Appropriations
pursuant to subsection (a) may be referred to as the
‘‘Nonproliferation, Antiterrorism, Demining and Related
Programs Account’’ or ‘‘NADR Account’’.
(b) REFERENCE IN OTHER PROVISIONS OF LAW.—
A reference in any other provision of law to section 504
of the Freedom for Russia and Emerging Eurasian De-
mocracies and Open Markets Support Act of 1992 (22
U.S.C. 5854) shall be deemed to include a reference to
chapter 9 of part II of the Foreign Assistance Act of 1961,
as added by subsection (a).
(c) CONFORMING AMENDMENTS.—(1) Section 504 of
the Freedom for Russia and Emerging Eurasian Democ-
racies and Open Markets Support Act of 1992 (22 U.S.C.
5854) is hereby repealed.
(2) The table of contents of such Act is amended by
striking the item relating to section 504.
CHAPTER 3—FOREIGN MILITARY
FINANCING PROGRAM
SEC. 421. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Presi-
dent for grant assistance 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) $3,317,000,000 for fiscal year 1998; and
(2) $3,273,250,000 for fiscal year 1999.
SEC. 422. ASSISTANCE FOR ISRAEL.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under section 23 of the Arms Export Control Act (22
U.S.C. 2763; relating to the ‘‘Foreign Military Financing
Program’’), 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 1998, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Fi-
nancing, and Related Programs Appropriations
Act, 1998, or by October 31, 1997, whichever
is later; and
(B) with respect to fiscal year 1999, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Fi-
nancing, and Related Programs Appropriations
Act, 1999, or by October 31, 1998, 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
subsection (a) shall, as agreed by the Government of
Israel 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 de-
fense articles and defense services, including re-
search and development.
SEC. 423. ASSISTANCE FOR EGYPT.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under section 23 of the Arms Export Control Act (22
U.S.C. 2763; relating to the ‘‘Foreign Military Financing
Program’’ account), 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. 424. AUTHORIZATION OF ASSISTANCE TO FACILITATE
TRANSITION TO NATO MEMBERSHIP UNDER
NATO PARTICIPATION ACT OF 1994.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under section 23 of the Arms Export Control Act (22
U.S.C. 2763; relating to the ‘‘Foreign Military Financing
Program’’), not less than $50,900,000 for each such fiscal
year shall be made available for the program established
under section 203(a) of the NATO Participation Act of
1994 (title II of Public Law 103-447; 22 U.S.C. 1928
note).
(b) TERMS OF ASSISTANCE.—The assistance pro-
vided under subsection (a) may be provided on a grant
basis, and may also be made available for the subsidy cost,
as defined in section 502(5) of the Federal Credit Reform
Act of 1990, of direct loans to countries eligible for assist-
ance under the program established under section 203(a)
of the NATO Participation Act of 1994 (title II of Public
Law 103-447; 22 U.S.C. 1928 note).
SEC. 425. LOANS FOR GREECE AND TURKEY.
Of the amounts made available for fiscal year 1998
under section 23 of the Arms Export Control Act (22
U.S.C. 2763)—
(1) not more than $12,850,000 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 $33,150,000 shall be made
available for such subsidy cost of direct loans for
Turkey.
SEC. 426. LIMITATIONS ON LOANS.
Of the amounts made available for fiscal year 1999
under section 23 of the Arms Export Control (22 U.S.C.
2763) for the subsidy cost, as defined in section 502(5)
of the Federal Credit Reform Act of 1990, of direct loans,
no such amounts shall be made available to any country
which has an Inter-Agency Country Risk Systems (ICRS)
rating of less than grade C-.
SEC. 427. ADMINISTRATIVE EXPENSES.
Of the amounts made available for fiscal years 1998
and 1999 for assistance under section 23 of the Arms Ex-
port Control Act (22 U.S.C. 2763; relating to the ‘‘For-
eign Military Financing Program’’), not more than
$23,250,000 for each of the fiscal years 1998 and 1999
may be made available for necessary expenses for the gen-
eral costs of administration of military assistance and
sales, including expenses incurred in purchasing passenger
motor vehicles for replacement for use outside the United
States.
CHAPTER 4—INTERNATIONAL MILITARY
EDUCATION AND TRAINING
SEC. 431. AUTHORIZATION OF APPROPRIATIONS.
Section 542 of the Foreign Assistance Act of 1961
(22 U.S.C. 2347a) is amended by striking ‘‘$56,221,000
for the fiscal year 1986 and $56,221,000 for the fiscal
year 1987’’ and inserting ‘‘$50,000,000 for each of the
fiscal years 1998 and 1999’’.
SEC. 432. IMET ELIGIBILITY FOR PANAMA AND HAITI.
Notwithstanding section 660(c) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2420(c)), assistance
under chapter 5 of part II of such Act (22 U.S.C. 2347)
may be provided to Panama and Haiti for each of the fis-
cal years 1998 and 1999.
CHAPTER 5—TRANSFER OF NAVAL VES-
SELS TO CERTAIN FOREIGN COUN-
TRIES
SEC. 441. AUTHORITY TO TRANSFER NAVAL VESSELS.
(a) BRAZIL.—The Secretary of the Navy is author-
ized to transfer to the Government of Brazil the
‘‘HUNLEY’’ class submarine tender HOLLAND (AS 32).
(b) CHILE.—The Secretary of the Navy is authorized
to transfer to the Government of Chile the ‘‘KAISER’’
class oiler ISHERWOOD (T–AO 191).
(c) EGYPT.—The Secretary of the Navy is authorized
to transfer to the Government of Egypt the ‘‘KNOX’’
class frigates PAUL (FF 1080), MILLER (FF 1091),
JESSE L. BROWN (FFT 1089), and MOINESTER
(FFT 1097), and the ‘‘OLIVER HAZARD PERRY’’
class frigates FAHRION (FFG 22) and LEWIS B.
PULLER (FFG 23).
(d) ISRAEL.—The Secretary of the Navy is author-
ized to transfer to the Government of Israel the ‘‘NEW-
PORT’’ class tank landing ship PEORIA (LST 1183).
(e) MALAYSIA.—The Secretary of the Navy is author-
ized to transfer to the Government of Malaysia the
‘‘NEWPORT’’ class tank landing ship BARBOUR
COUNTY (LST 1195).
(f) MEXICO.—The Secretary of the Navy is author-
ized to transfer to the Government of Mexico the
‘‘KNOX’’ class frigate ROARK (FF 1053).
(g) TAIWAN.—The Secretary of the Navy is author-
ized to transfer to the Taipei Economic and Cultural Rep-
resentative Office in the United States (which is the Tai-
wan instrumentality designated pursuant to section 10(a)
of the Taiwan Relations Act) the ‘‘KNOX’’ class frigates
WHIPPLE (FF 1062) and DOWNES (FF 1070).
(h) THAILAND.—The Secretary of the Navy is au-
thorized to transfer to the Government of Thailand the
‘‘NEWPORT’’ class tank landing ship SCHENECTADY
(LST 1185).
(i) FORM OF TRANSFERS.—Each transfer authorized
by this section shall be on a sales basis under section 21
of the Arms Export Control Act (22 U.S.C. 2761; relating
to the foreign military sales program).
SEC. 442. COSTS OF TRANSFERS.
Any expense of the United States in connection with
a transfer authorized by this chapter shall be charged to
the recipient.
SEC. 443. EXPIRATION OF AUTHORITY.
The authority granted by section 451 shall expire at
the end of the 2-year period beginning on the date of the
enactment of this Act.
SEC. 444. REPAIR AND REFURBISHMENT OF VESSELS IN
UNITED STATES SHIPYARDS.
The Secretary of the Navy shall require, to the maxi-
mum extent possible, as a condition of a transfer of a ves-
sel under this chapter, that the country to which the vessel
is transferred have such repair or refurbishment of the
vessel as is needed, before the vessel joins the naval forces
of that country, performed at a shipyard located in the
United States, including a United States Navy shipyard.
CHAPTER 6—OTHER PROVISIONS
SEC. 451. EXCESS DEFENSE ARTICLES FOR CERTAIN EURO-
PEAN COUNTRIES.
Section 105 of Public Law 104–164 (110 Stat. 1427)
is amended by striking ‘‘1996 and 1997’’ and inserting
‘‘1998 and 1999’’.
SEC. 452. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS
DEFENSE ARTICLES IN THE WAR RESERVE
ALLIES STOCKPILE TO THE REPUBLIC OF
KOREA.
(a) AUTHORITY.—
(1) IN GENERAL.—Notwithstanding section 514
of the Foreign Assistance Act of 1961 (22 U.S.C.
2321h), the President is authorized to transfer to
the Republic of Korea, in return for concessions to
be negotiated by the Secretary of Defense, with the
concurrence of the Secretary of State, any or all of
the items described in paragraph (2).
(2) ITEMS DESCRIBED.—The items described in
this paragraph are equipment, tanks, weapons, re-
pair parts, and ammunition that—
(A) are obsolete or surplus items;
(B) are in the inventory of the Department
of Defense;
(C) are intended for use as reserve stocks
for the Republic of Korea; and
(D) as of the date of enactment of this
Act, are located in a stockpile in the Republic
of Korea.
(b) CONCESSIONS.—The value of the concessions ne-
gotiated pursuant to subsection (a) shall be at least equal
to the fair market value of the items transferred. The con-
cessions may include cash compensation, services, waiver
of charges otherwise payable by the United States, and
other items of value.
(c) ADVANCE NOTIFICATION
OF TRANSFER.—Not
less than 30 days before making a transfer under the au-
thority of this section, the President shall transmit to the
Committee on Foreign Relations of the Senate, the Com-
mittee on International Relations of the House of Rep-
resentatives, and the congressional defense committees a
notification of the proposed transfer. The notification shall
identify the items to be transferred and the concessions
to be received.
(d) EXPIRATION OF AUTHORITY.—No transfer may
be made under the authority of this section more than two
years after the date of the enactment of this Act.
SEC. 453. ADDITIONAL REQUIREMENTS RELATING TO
STOCKPILING OF DEFENSE ARTICLES FOR
FOREIGN COUNTRIES.
(a) VALUE OF ADDITIONS TO STOCKPILES.—Section
514(b)(2)(A) of the Foreign Assistance Act of 1961 (22
U.S.C. 2321h(b)(2)(A)) is amended by inserting before
the period at the end the following: ‘‘and $60,000,000 for
fiscal year 1998’’.
(b) REQUIREMENTS RELATING TO THE REPUBLIC OF
KOREA AND THAILAND.—Section 514(b)(2)(B) of such
Act (22 U.S.C 2321h(b)(2)(B)) is amended by adding at
the end the following: ‘‘Of the amount specified in sub-
paragraph (A) for fiscal year 1998, not more than
$40,000,000 may be made available for stockpiles in the
Republic of Korea and not more than $20,000,000 may
be made available for stockpiles in Thailand.’’.
SEC. 454. DELIVERY OF DRAWDOWN BY COMMERCIAL
TRANSPORTATION SERVICES.
Section 506 of the Foreign Assistance Act of 1961
(22 U.S.C.2318) is amended—
(1) in subsection (b)(2), by striking the period
and inserting the following: ‘‘, including providing
the Congress with a report detailing all defense arti-
cles, defense services, and military education and
training delivered to the recipient country or inter-
national organization upon delivery of such articles
or upon completion of such services or education and
training. Such report shall also include whether any
savings were realized by utilizing commercial trans-
port services rather than acquiring those services
from United States Government transport assets.’’;
(2) by redesignating subsection (c) as sub-
section (d); and
(3) by inserting after subsection (b) the follow-
ing:
‘‘(c) For the purposes of any provision of law that
authorizes the drawdown of defense or other articles or
commodities, or defense or other services from an agency
of the United States Government, such drawdown may in-
clude the supply of commercial transportation and related
services that are acquired by contract for the purposes of
the drawdown in question if the cost to acquire such com-
mercial transportation and related services is less than the
cost to the United States Government of providing such
services from existing agency assets.’’.
SEC. 455. CASH FLOW FINANCING NOTIFICATION.
Section 25 of the Arms Export Control Act (22
U.S.C. 2765) is amended—
(1) in the second subsection (d)—
(A) by striking ‘‘(d)’’ and inserting ‘‘(e)’’;
and
(B) by striking the semicolon at the end
and inserting a period; and
(2) by adding at the end the following:
‘‘(f) For each country that has been approved for
cash flow financing (as defined in subsection (e)) under
section 23 of this Act (relating to the ‘Foreign Military
Financing Program’), any letter of offer and acceptance
or other purchase agreement, or any amendment thereto,
for a procurement in excess of $100,000,000 that is to
be financed in whole or in part with funds made available
under this Act shall be submitted in accordance with the
procedures applicable to reprogramming notifications pur-
suant to section 634A of this Act and through the regular
notification procedures of the Committee on Appropria-
tions.’’.
TITLE V—ECONOMIC
ASSISTANCE
CHAPTER 1—ECONOMIC SUPPORT
ASSISTANCE
SEC. 501. 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
$2,388,350,000 for fiscal year 1998 and $2,350,600,000
for fiscal year 1999.’’.
SEC. 502. ASSISTANCE FOR ISRAEL.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under chapter 4 of part II of the Foreign Assistance Act
of 1961 (22 U.S.C. 2346; 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.—
(1) CASH
TRANSFER.—The total amount of
funds allocated for Israel for each fiscal year under
subsection (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 1998, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Fi-
nancing, and Related Programs Appropriations
Act, 1998, or by October 31, 1997, whichever
is later; and
(B) with respect to fiscal year 1999, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Fi-
nancing, and Related Programs Appropriations
Act, 1999, or by October 31, 1998, 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.
SEC. 503. ASSISTANCE FOR EGYPT.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1998 and 1999 for assistance
under chapter 4 of part II of the Foreign Assistance Act
of 1961 (22 U.S.C. 2346; relating to the economic support
fund), not less than $815,000,000 for each such fiscal
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. 504. INTERNATIONAL FUND FOR IRELAND.
(a) FUNDING.—Of the amounts made available for
fiscal years 1998 and 1999 for assistance under chapter
4 of part II of the Foreign Assistance Act of 1961 (22
U.S.C. 2346; relating to the economic support fund), not
more than $19,600,000 for each of the fiscal years 1998
and 1999 shall be available for the United States contribu-
tion to the International Fund for Ireland in accordance
with the Anglo-Irish Agreement Support Act of 1986
(Public Law 99–415).
(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 con-
tributions 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 Ireland. 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’’;
(iii) by striking the period and insert-
ing ‘‘; and’’; and
(iv) by adding at the end the follow-
ing:
‘‘(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 re-
strictions’’.
(3) PRIOR CERTIFICATIONS.—Section 5(c)(2) of
such Act is amended—
(A) in subparagraph (A), by striking
‘‘principle of equality’’ and all that follows and
inserting ‘‘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;
(B) in paragraph (3), by striking the pe-
riod 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) REQUIREMENTS
RELATING
TO
FUNDS.—
Section 7 of such Act is amended by adding at the
end the following:
‘‘(c) PROHIBITION.—Nothing included herein shall
require quotas or reverse discrimination or mandate their
use.’’.
(6) 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 pe-
riod 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-
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 employ-
ment criteria which discriminate on the basis of
religion.
‘‘(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.
‘‘(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 im-
plementation of the principles described in sub-
paragraphs (A) through (H).’’.
(7) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect 180 days after
the date of the enactment of this Act.
SEC. 505. ASSISTANCE FOR TRAINING OF CIVILIAN PER-
SONNEL OF THE MINISTRY OF DEFENSE OF
THE GOVERNMENT OF NICARAGUA.
Notwithstanding section 531(e) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2346(e)), amounts made
available for fiscal years 1998 and 1999 for assistance
under chapter 4 of part II of such Act (22 U.S.C. 2346;
relating to the economic support fund) may be made avail-
able for assistance and training for civilian personnel of
the Ministry of Defense of the Government of Nicaragua
if, prior to the provision of such assistance, the Secretary
of State determines and reports to the Congress that such
assistance is necessary to establishing a civilian Ministry
of Defense capable of effective oversight and management
of the Nicaraguan armed forces and ensuring respect for
civilian authority and human rights.
CHAPTER 2—DEVELOPMENT ASSISTANCE
Subchapter A—Development Assistance
Authorities
SEC. 511. AUTHORIZATION OF APPROPRIATIONS.
(a) DEVELOPMENT ASSISTANCE FUND.—The For-
eign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is
amended by inserting after section 106 and before section
107A, as added by this Act, the following:
‘‘SEC. 107. DEVELOPMENT ASSISTANCE FUND.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to the President to carry
out sections 103 through 106, in addition to amounts oth-
erwise available for such purposes, $1,100,000,000 for
each of the fiscal years 1998 and 1999.
‘‘(b) ADDITIONAL
USE
OF
AMOUNTS.—Of the
amounts authorized to be appropriated under subsection
(a), the President may use such amounts as he deems ap-
propriate to carry out the provisions of section 316 of the
International Security and Development Cooperation Act
of 1980.
‘‘(c) AVAILABILITY.—The amounts authorized to be
appropriated under subsection (a) are authorized to re-
main available until expended.’’.
(b) DEVELOPMENT FUND FOR AFRICA.—Section 497
of the Foreign Assistance Act of 1961 (22 U.S.C. 2294)
is amended to read as follows:
‘‘(a) IN GENERAL.—Of the amounts made available
to carry out sections 103 through 106 (including section
104(c)) for fiscal years 1998 and 1999, not less than
$600,000,000 for each of the fiscal years 1998 and 1999
shall be made available to carry out this chapter (in addi-
tion to amounts otherwise available for such purposes).
‘‘(b) AVAILABILITY.—Amounts made available under
subsection (a) are authorized to remain available until ex-
pended.’’.
(c) ASSISTANCE FOR THE INDEPENDENT STATES OF
THE FORMER SOVIET UNION.—Section 498C(a) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2295c(a)) is
amended by striking ‘‘for fiscal year 1993 $410,000,000’’
and inserting ‘‘for economic assistance and related pro-
grams, 
$839,900,000 
for 
fiscal 
year 
1998 
and
$789,900,000 for fiscal year 1999’’.
(d) ASSISTANCE
FOR
EAST
EUROPEAN
COUN-
TRIES.—
(1) IN GENERAL.—There are authorized to be
appropriated to the President, in addition to
amounts otherwise available for such purposes,
$471,000,000 
for 
fiscal 
year 
1998 
and
$337,000,000 for fiscal year 1999 for economic as-
sistance and related programs for Eastern Europe
and the Baltic states under the Foreign Assistance
Act of 1961 (22 U.S.C. 2151 et seq.) and the Sup-
port for East European Democracy (SEED) Act of
1989 (22 U.S.C. 5401 et seq.).
(2) AVAILABILITY.—Amounts authorized to be
appropriated under paragraph (1) are authorized to
remain available until expended.
(e) 
INTER-AMERICAN
FOUNDATION.—Section
401(s)(2) of the Foreign Assistance Act of 1969 (22
U.S.C. 290f(s)(2)) is amended to read as follows:
‘‘(2)(A) There are authorized to be appropriated to
the President to carry out programs under this section,
in addition to amounts otherwise available for such pur-
poses, $20,000,000 for fiscal year 1998 and $15,000,000
for fiscal year 1999.
‘‘(B) Amounts authorized to be appropriated under
subparagraph (A) are authorized to remain available until
expended.’’.
(f) AFRICAN
DEVELOPMENT
FOUNDATION.—The
first sentence of section 510 of the International Security
and Development Cooperation Act of 1980 (22 U.S.C.
290h–8) is amended by striking ‘‘$3,872,000 for fiscal
year 1986 and $3,872,000 for fiscal year 1987’’ and in-
serting 
‘‘$11,500,000 
for 
fiscal 
year 
1998 
and
$10,000,000 for fiscal year 1999.’’.
SEC. 512. CHILD SURVIVAL ACTIVITIES.
Section 104(c) of the Foreign Assistance Act of 1961
(22 U.S.C. 2151b(c)) is amended to read as follows:
‘‘(c) ASSISTANCE FOR CHILD SURVIVAL, HEALTH,
BASIC EDUCATION FOR CHILDREN, AND DISEASE PRE-
VENTION.—
‘‘(1) AUTHORITY.—The President is authorized
to furnish assistance, on such terms and conditions
as he may determine, for child survival and health
programs, including programs that address the spe-
cial health and nutrition needs of children and moth-
ers, and basic education programs for children. As-
sistance under this subsection may be used for such
programs as—
‘‘(A) programs for the prevention, treat-
ment, and control of, and research on, tuber-
culosis, HIV/AIDS, polio, malaria, and other
diseases;
‘‘(B) basic integrated health services;
‘‘(C) immunization;
‘‘(D) oral rehydration;
‘‘(E) assistance for displaced and orphaned
children;
‘‘(F) basic education programs for chil-
dren;
‘‘(G) safe water and sanitation;
‘‘(H) health and nutrition programs, and
related education programs, which address the
needs of mothers and children; and
‘‘(I) related health planning and research.
‘‘(2) APPLICATION OF OTHER AUTHORITIES.—
Funds made available to carry out this subsection
that are provided for countries receiving assistance
under chapters 10 and 11 of part I of this Act or
the Support for East European Democracy (SEED)
Act of 1989, may be made available pursuant to the
authorities otherwise applicable to the provision of
assistance for such countries.
‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—In
addition to amounts otherwise available for such
purposes, there are authorized to be appropriated to
the President $455,000,000 for each of the fiscal
years 1998 and 1999 for use in carrying out this
subsection. Amounts appropriated under this para-
graph are authorized to remain available until ex-
pended.
‘‘(4) DESIGNATION OF FUND.—Appropriations
pursuant to this subsection may be referred to as
the ‘Child Survival and Disease Programs Fund’.’’.
SEC. 513. REQUIREMENT ON ASSISTANCE TO THE RUSSIAN
FEDERATION.
Of the amounts made available to carry out chapter
11 of part I of the Foreign Assistance Act of 1961 (22
U.S.C. 2295 et seq.) for fiscal years 1998 and 1999, not
more than $95,000,000 for each such fiscal year may be
provided to the Russian Federation unless the President
determines and reports to the Congress for each such fis-
cal year that—
(1) the Government of the Russian Federation
has terminated all official cooperation with, and
transfers of goods and technology to, ballistic missile
or nuclear programs in Iran, and has taken all ap-
propriate steps to prevent cooperation with, and
transfers of goods and technology to, such programs
in Iran by persons and entities subject to its juris-
diction; and
(2) the Government of the Russian Federation
has terminated all official cooperation with, and
transfers of goods and technology to, nuclear reactor
projects in Cuba, and has taken all appropriate
steps to prevent cooperation with, and transfers of
goods and technology to, such projects in Cuba by
persons and entities subject to its jurisdiction.
Subchapter B—Operating Expenses
SEC. 521. 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 fol-
lows:
‘‘(1) $473,000,000 for fiscal year 1998 and
$465,000,000 for fiscal year 1999 for necessary op-
erating expenses of the United States Agency for
International Development (other than the Office of
the Inspector General of such agency);’’.
SEC. 522. 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); and
(2) by inserting after paragraph (1) the follow-
ing:
‘‘(2) $29,047,000 for each of the fiscal years
1998 and 1999 for necessary operating expenses of
the Office of the Inspector General of such agency;
and’’.
CHAPTER 3—URBAN AND
ENVIRONMENTAL CREDIT PROGRAM
SEC. 531. URBAN AND ENVIRONMENTAL CREDIT PROGRAM.
(a) IN GENERAL.—The heading for title III of chap-
ter 2 of part I of the Foreign Assistance Act of 1961 is
amended to read as follows:
‘‘TITLE III—URBAN AND ENVIRONMENTAL
CREDIT PROGRAM’’.
(b) REPEALS.—(1) Section 222(k) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2182(k)) is hereby re-
pealed.
(2) Section 222A of such Act (22 U.S.C. 2182a) is
hereby repealed.
(3) Section 223(j) of such Act (22 U.S.C. 2183(j))
is hereby repealed.
CHAPTER 4—THE PEACE CORPS
SEC. 541. AUTHORIZATION OF APPROPRIATIONS.
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 $222,000,000 for fiscal
year 1998 and $225,000,000 for fiscal year 1999.
‘‘(2) Amounts authorized to be appropriated under
paragraph (1)—
‘‘(A) with respect to fiscal year 1998 are au-
thorized to remain available until September 30,
1999; and
‘‘(B) with respect to fiscal year 1999 are au-
thorized to remain available until September 30,
2000.’’.
SEC. 542. ACTIVITIES OF THE PEACE CORPS IN THE
FORMER SOVIET UNION AND MONGOLIA.
Of the amounts made available for fiscal years 1998
and 1999 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 So-
viet Union), not more than $11,000,000 for each such fis-
cal 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 Sup-
port Act of 1992) and Mongolia.
SEC. 543. AMENDMENTS TO THE PEACE CORPS ACT.
(a) TERMS AND CONDITIONS OF VOLUNTEER SERV-
ICE.—Section 5 of the Peace Corps Act (22 U.S.C. 2504)
is amended—
(1) in subsection (f)(1)(B), by striking ‘‘Civil
Service Commission’’ and inserting ‘‘Office of Per-
sonnel Management’’;
(2) in subsection (h), by striking ‘‘the Federal
Voting Assistance Act of 1955’’ and all that follows
through the end of the subsection and inserting
‘‘sections 5584 and 5732 of title 5, United States
Code (and readjustment allowances paid under this
Act shall be considered as pay for purposes of such
section 5732), section 1 of the Act of June 4, 1920
(22 U.S.C. 214), and section 3342 of title 31, Unit-
ed States Code.’’; and
(3) in subsection (j), by striking ‘‘section 1757
of the Revised Statutes’’ and all that follows through
the end of the subsection and inserting ‘‘section
3331 of title 5, United States Code.’’.
(b) GENERAL POWERS AND AUTHORITIES.—Section
10 of such Act (22 U.S.C. 2509) is amended—
(1) in subsection (a)(4), by striking ‘‘31 U.S.C.
665(b)’’ and inserting ‘‘section 1342 of title 31,
United States Code’’; and
(2) in subsection (a)(5), by striking ‘‘Provided,
That’’ and all that follows through the end of the
paragraph and inserting ‘‘, except that such individ-
uals shall not be deemed employees for the purpose
of any law administered by the Office of Personnel
Management.’’.
(c) UTILIZATION OF FUNDS.—Section 15 of such Act
(22 U.S.C. 2514) is amended—
(1) in the first sentence of subsection (c)—
(A) by striking ‘‘Public Law 84–918 (7
U.S.C. 1881 et seq.)’’ and inserting ‘‘sub-
chapter VI of chapter 33 of title 5, United
States Code (5 U.S.C. 3371 et seq.)’’; and
(B) by striking ‘‘specified in that Act’’and
inserting ‘‘or other organizations specified in
section 3372(b) of such title’’; and
(2) in subsection (d)—
(A) in paragraph (2), by striking ‘‘section
9 of Public Law 60–328 (31 U.S.C. 673)’’ and
inserting ‘‘section 1346 of title 31, United
States Code’’;
(B) in paragraph (6), by striking ‘‘without
regard to section 3561 of the Revised Statutes
(31 U.S.C. 543)’’;
(C) in paragraph (11)—
(i) by striking ‘‘Foreign Service Act of
1946, as amended (22 U.S.C. 801 et
seq.),’’ and inserting ‘‘Foreign Service Act
of 1980 (22 U.S.C. 3901 et seq.)’’; and
(ii) by striking ‘‘and’’ at the end;
(D) in paragraph (12), by striking the pe-
riod at the end and by inserting ‘‘; and’’; and
(E) by adding at the end the following:
‘‘(13) the transportation of Peace Corps em-
ployees, Peace Corps volunteers, dependents of em-
ployees and volunteers, and accompanying baggage,
by a foreign air carrier when the transportation is
between 2 places outside the United States without
regard to section 40118 of title 49, United States
Code.’’.
(d) PROHIBITION ON USE OF FUNDS FOR ABOR-
TIONS.—Section 15 of such Act (22 U.S.C. 2514) is
amended, as amended by this Act, is further amended by
adding at the end the following new subsection:
‘‘(e) Funds made available for the purposes of this
Act may not be used to pay for abortions.’’.
CHAPTER 5—INTERNATIONAL DISASTER
ASSISTANCE
SEC. 551. 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 (a), by striking ‘‘and rehabili-
tation’’ and inserting ‘‘, rehabilitation, and recon-
struction, as the case may be,’’;
(2) in subsection (b), by striking ‘‘and rehabili-
tation’’ and inserting ‘‘, rehabilitation, and recon-
struction’’; and
(3) in subsection (c), by striking ‘‘and rehabili-
tation’’ and inserting ‘‘, rehabilitation, and recon-
struction’’.
SEC. 552. AUTHORIZATIONS OF APPROPRIATIONS.
Section 492(a) of the Foreign Assistance Act of 1961
(22 U.S.C. (22 U.S.C. 2292a(a)) is amended in the first
sentence to read as follows: ‘‘There are authorized to be
appropriated to the President to carry out section 491,
in addition to funds otherwise available for such purposes,
$190,000,000 for each of the fiscal years 1998 and
1999.’’.
CHAPTER 6—DEBT RELIEF
SEC. 561. DEBT RESTRUCTURING FOR FOREIGN ASSIST-
ANCE.
Chapter 6 of part I of the Foreign Assistance Act
of 1961 (22 U.S.C. 2271 et seq.) is amended to read as
follows:
‘‘CHAPTER 6—DEBT RELIEF
‘‘SEC. 461. SPECIAL DEBT RELIEF FOR POOR COUNTRIES.
‘‘(a) AUTHORITY TO REDUCE DEBT.—The President
may reduce amounts owed to the United States Govern-
ment by a country described in subsection (b) as a result
of—
‘‘(1) loans or guarantees issued under this Act;
or
‘‘(2) credits extended or guarantees issued
under the Arms Export Control Act (22 U.S.C.
2751 et seq.).
‘‘(b) COUNTRY DESCRIBED.—A country described in
this subsection is a country—
‘‘(1) with a heavy debt burden that is eligible
to borrow from the International Development Asso-
ciation but not from the International Bank for Re-
construction and Development (commonly referred
to as an ‘IDA-only’ country);
‘‘(2) the government of which—
‘‘(A) does not have an excessive level of
military expenditures;
‘‘(B) has not repeatedly provided support
for acts of international terrorism; and
‘‘(C) is not failing to cooperate with the
United States on international narcotics control
matters;
‘‘(3) the government (including the military or
other security forces of such government) of which
does not engage in a consistent pattern of gross vio-
lations of internationally recognized human rights;
and
‘‘(4) that is not ineligible for assistance because
of the application of section 527(a) of the Foreign
Relations Authorization Act, Fiscal Years 1994 and
1995.
‘‘(c) LIMITATIONS.—The authority under subsection
(a) may be exercised—
‘‘(1) only to implement multilateral official debt
relief ad referendum agreements (commonly referred
to as ‘Paris Club Agreed Minutes’); and
‘‘(2) only to the extent that appropriations for
the cost of the modification, as defined in section
502 of the Congressional Budget Act of 1974, are
made in advance.
‘‘(d) CERTAIN PROHIBITIONS INAPPLICABLE.—A re-
duction of debt pursuant to the exercise of authority under
subsection (a)—
‘‘(1) shall not be considered assistance for pur-
poses of any provision of law limiting assistance to
a country; and
‘‘(2) may be exercised notwithstanding section
620(r) of this Act or any comparable provision of
law.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated to the President for the purpose of car-
rying out this section and the Foreign Operations,
Export Financing, and Related Programs Supple-
mental Appropriations Act, 1994 (title VI of the
Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 1994; Public Law
103-306) $32,000,000 for each of the fiscal years
1998 and 1999.
‘‘(2) AVAILABILITY.—Amounts authorized to be
appropriated under paragraph (1) are authorized to
remain available until expended.’’.
SEC. 562. DEBT BUYBACKS OR SALES FOR DEBT SWAPS.
Part IV of the Foreign Assistance Act of 1961 (22
U.S.C. 2430 et seq.) is amended by adding at the end
the following:
‘‘SEC. 711. AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR
SALES.
‘‘(a) LOANS ELIGIBLE FOR SALE, REDUCTION, OR
CANCELLATION.—
‘‘(1) AUTHORITY TO SELL, REDUCE, OR CANCEL
CERTAIN LOANS.—Notwithstanding any other provi-
sion of law, the President may, in accordance with
this section, sell to any eligible purchaser any
concessional loan or portion thereof made before
January 1, 1995, pursuant to this Act, to the gov-
ernment of any eligible country, as defined in section
702(6), or on receipt of payment from an eligible
purchaser or such eligible country, reduce or cancel
such loan or portion thereof, only for the purpose of
facilitating—
‘‘(A) debt-for-equity swaps, debt-for-devel-
opment swaps, or debt-for-nature swaps; or
‘‘(B) a debt buyback by an eligible country
of its own qualified debt, only if the eligible
country uses an additional amount of the local
currency of the eligible country, equal to not
less than 40 percent of the price paid for such
debt by such eligible country, or the difference
between the price paid for such debt and the
face value of such debt, to support activities (i)
that link conservation and sustainable use of
natural resources with local community develop-
ment, and (ii) for child survival and other child
development activities, in a manner consistent
with sections 707 through 710, if the sale, re-
duction, or cancellation would not contravene
any term or condition of any prior agreement
relating to such loan.
‘‘(2) TERMS AND CONDITIONS.—Notwithstand-
ing any other provision of law, the President shall,
in accordance with this section, establish the terms
and conditions under which loans may be sold, re-
duced, or canceled pursuant to this section.
‘‘(3) ADMINISTRATION.—The Facility, as de-
fined in section 702(8), shall notify the Adminis-
trator of the United States Agency for International
Development of purchasers that the President has
determined to be eligible, and shall direct such agen-
cy to carry out the sale, reduction, or cancellation of
a loan pursuant to this section. Such agency shall
make an adjustment in its accounts to reflect the
sale, reduction, or cancellation.
‘‘(4) LIMITATION.—The authorities of this sub-
section shall be available only to the extent that ap-
propriations for the cost of the modification, as de-
fined in section 502 of the Congressional Budget Act
of 1974, are made in advance.
‘‘(b) DEPOSIT OF PROCEEDS.—The proceeds from
the sale, reduction, or cancellation of any loan sold, re-
duced, or canceled pursuant to this section shall be depos-
ited in an account or accounts established in the Treasury
for the repayment of such loan.
‘‘(c) ELIGIBLE PURCHASERS.—A loan may be sold
pursuant to subsection (a)(1)(A) only to a purchaser who
presents plans satisfactory to the President for using the
loan for the purpose of engaging in debt-for-equity swaps,
debt-for-development swaps, or debt-for-nature swaps.
‘‘(d) DEBTOR CONSULTATIONS.—Before the sale to
any eligible purchaser, or any reduction or cancellation
pursuant to this section, of any loan made to an eligible
country, the President shall consult with the country con-
cerning the amount of loans to be sold, reduced, or can-
celed and their uses for debt-for-equity swaps, debt-for-
development swaps, or debt-for-nature swaps.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN
GENERAL.—Of the amounts made
available for fiscal years 1998 and 1999 to carry out
section 461, $20,000,000 for each such fiscal year
shall be made available for the sale, reduction, and
cancellation of loans or portions thereof pursuant to
this section.
‘‘(2) AVAILABILITY.—Amounts authorized to be
appropriated under paragraph (1) are authorized to
remain available until expended.’’.
CHAPTER 7—OTHER ASSISTANCE
PROVISIONS
SEC. 571. 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 re-
spect to assistance for a country shall not be construed
to restrict assistance under this chapter, chapter 10, and
chapter 11 of this part, chapter 4 of part II, or the Sup-
port for East European Democracy (SEED) Act of 1989
(22 U.S.C. 5401 et seq.), in support of programs of non-
governmental organizations.
‘‘(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 in support of a program of a
nongovernmental organization, the President shall notify
the congressional committees specified in section 634A(a)
of this Act in accordance with procedures applicable to re-
programming notifications under that section. Such notifi-
cation shall describe the program assisted, the assistance
provided, and the reasons for furnishing such assistance.’’.
SEC. 572. 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 ob-
tains less than 20 percent of its total annual funding for
its international activities from sources other than the
United States Government.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) applies with respect to funds made available
for programs of any United States private and voluntary
organization on or after the date of the enactment of this
Act.
SEC. 573. 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:
‘‘(w) None of the funds made available to carry out
this Act shall be available to any private and voluntary
organization which—
‘‘(1) fails to provide upon timely request any
document, file, or record necessary to the auditing
requirements of the United States Agency for Inter-
national Development; or
‘‘(2) is not registered with the United States
Agency for International Development.’’.
SEC. 574. ENCOURAGEMENT OF FREE ENTERPRISE AND
PRIVATE PARTICIPATION.
Section 601(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2351(a)) is amended—
(1) by striking ‘‘(a)’’ and inserting ‘‘(a)(1)’’;
and
(2) by adding the following:
‘‘(2) To the maximum extent feasible, in providing
assistance under Part I of this Act, the President should
give special emphasis to programs and activities that en-
courage the creation and development of private enterprise
and free market systems, including—
‘‘(A) the development of private cooperatives,
credit unions, labor unions, and civic and profes-
sional associations;
‘‘(B) the reform and restructuring of banking
and financial systems; and
‘‘(C) the development and strengthening of
commercial laws and regulations, including laws and
regulations to protect intellectual property.’’.
TITLE VI—TRADE AND
DEVELOPMENT AGENCY
SEC. 601. AUTHORIZATION OF APPROPRIATIONS.
Section 661(f)(1)(A) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2421(f)(1)(A)) is amended to read as
follows:
‘‘(1) AUTHORIZATION.—(A) There are author-
ized to be appropriated for purposes of this section,
in addition to funds otherwise available for such pur-
poses, $43,000,000 for each of the fiscal years 1998
and 1999.’’.
TITLE VII—SPECIAL AUTHORI-
TIES AND OTHER PROVISIONS
CHAPTER 1—SPECIAL AUTHORITIES
SEC. 701. ENHANCED TRANSFER AUTHORITY.
Section 610 of the Foreign Assistance Act of 1961
(22 U.S.C. 2360) is amended to read as follows:
‘‘SEC. 610. TRANSFER BETWEEN ACCOUNTS.
‘‘(a) GENERAL AUTHORITY.—Whenever the Presi-
dent determines it to be necessary for the purposes of this
Act or the Arms Export Control Act (22 U.S.C. 2751 et
seq.), not to exceed 20 percent of the funds made available
to carry out any provision of this Act (except funds made
available pursuant to title IV of chapter 2 of part I) or
section 23 of the Arms Export Control Act (22 U.S.C.
2763)—
‘‘(1) may be transferred to, and consolidated
with, the funds in any other account or fund avail-
able to carry out any provision of this Act or the
Arms Export Control Act; and
‘‘(2) may be used for any purpose for which
funds in that account or fund may be used.
‘‘(b) LIMITATION ON AMOUNT OF INCREASE.—The
total amount in the account or fund for the benefit of
which transfer is made under subsection (a) during any
fiscal year may not be increased by more than 20 percent
of the amount of funds otherwise made available.
‘‘(c) NOTIFICATION.—The President shall notify in
writing the congressional committees specified in section
634A at least fifteen days in advance of each such transfer
between accounts in accordance with procedures applicable
to reprogramming notifications under such section.’’.
SEC. 702. AUTHORITY TO MEET UNANTICIPATED CONTIN-
GENCIES.
Paragraph (1) of section 451(a) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2261(a)(1)) is amended
by striking ‘‘$25,000,000’’ and inserting ‘‘$50,000,000’’.
SEC. 703. SPECIAL WAIVER AUTHORITY.
(a) LAWS AFFECTED.—Section 614 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2364) is amended by
striking subsections (a)(1) and (a)(2) and inserting the
following:
‘‘(a) AUTHORITY
TO
AUTHORIZE
ASSISTANCE,
SALES, AND OTHER ACTIONS; LIMITATIONS.—(1) The
President may authorize assistance, sales, or other action
under this Act, the Arms Export Control Act, or any an-
nual (or periodic) foreign assistance authorization or ap-
propriations legislation, without regard to any of the pro-
visions described in subsection (b), if the President deter-
mines, and notifies in writing the Speaker of the House
of Representatives and the chairman of the Committee on
Foreign Relations of the Senate—
‘‘(A) with respect to assistance or other actions
under chapter 2 or 5 of part II of this Act, or assist-
ance, sales, or other actions under the Arms Export
Control Act, that to do so is vital to the national se-
curity interests of the United States; and
‘‘(B) with respect to other assistance or actions
that to do so is important to the national interests
of the United States.
‘‘(2) The President may waive any provision de-
scribed in paragraph (1), (2), or (3) of subsection (b) that
would otherwise prohibit or restrict assistance or other ac-
tion under any provision of law not described in those
paragraphs if the President determines, and notifies in
writing the Speaker of the House of Representatives and
the chairman of the Committee on Foreign Relations of
the Senate, that to do so is important to the national in-
terests of the United States.’’.
(b) ANNUAL CEILINGS.—Section 614(a)(4) of such
Act (22 U.S.C. 2364(a)(4)) is amended—
(1) in subparagraph (A)—
(A) 
in 
clause 
(i), 
by 
striking
‘‘$750,000,000’’ 
and 
inserting
‘‘$1,000,000,000’’;
(B) 
in 
clause 
(ii), 
by 
striking
‘‘$250,000,000’’ and inserting ‘‘$500,000,000’’;
and
(C) 
in 
clause 
(iii), 
by 
striking
‘‘$100,000,000’’ and inserting ‘‘$200,000,000’’;
and
(2) in subparagraph (C)—
(A) by striking ‘‘$50,000,000’’ and insert-
ing ‘‘$75,000,000’’; and
(B) by striking $1,000,000,000’’ and in-
serting ‘‘$1,500,000,000’’.
(c) LAWS WHICH MAY BE WAIVED.—Section 614 of
such Act (22 U.S.C. 2364) is amended by striking sub-
sections (b) and (c) and inserting the following:
‘‘(b) LAWS WHICH MAY BE WAIVED.—The provi-
sions referred to in subsections (a)(1) and (a)(2) are—
‘‘(1) the provisions of this Act;
‘‘(2) the provisions of the Arms Export Control
Act;
‘‘(3) the provisions of any annual (or periodic)
foreign assistance authorization or appropriations
legislation, including any amendment made by any
such Act;
‘‘(4) any other provision of law that restricts
assistance, sales or leases, or other action under the
Acts referred to in paragraph (1), (2), or (3); and
‘‘(5) any law relating to receipts and credits ac-
cruing to the United States.’’.
(d) 
CONFORMING
AMENDMENT.—Section
614(a)(4)(B) of such Act (22 U.S.C 2364(a)(4)(B)) is
amended by striking ‘‘the Arms Export Control Act or
under’’.
SEC. 704. TERMINATION OF ASSISTANCE.
Section 617 of the Foreign Assistance Act of 1961
(22 U.S.C. 2367) is amended to read as follows:
‘‘SEC. 617. TERMINATION OF ASSISTANCE.
‘‘(a) IN GENERAL.—(1) In order to ensure the effec-
tiveness of assistance provided under this Act, notwith-
standing any other provision of law, funds made available
under this Act or the Arms Export Control Act to carry
out any program, project, or activity of assistance shall
remain available for obligation 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 funds so obligated may remain
available until expended.
‘‘(2) Funds obligated to carry out any program,
project, or activity of assistance before the effective date
of the termination of such assistance are authorized to be
available for expenditure for the necessary expenses of
winding up such programs, projects, and activities, not-
withstanding any provision of law restricting the expendi-
ture of funds, and may be reobligated to meet any other
necessary expenses arising from the termination of such
assistance.
‘‘(3) The necessary expenses of winding up programs,
projects, and activities of assistance include the obligation
and expenditure of funds to complete the training or stud-
100
ies outside their countries of origin of students whose
course of study or training program began before assist-
ance was terminated.
‘‘(b) LIABILITY TO CONTRACTORS.—For the purpose
of making an equitable settlement of termination claims
under extraordinary contractual relief standards, the
President is authorized to adopt as a contract or other
obligation of the United States Government, and assume
(in whole or in part) any liabilities arising thereunder, any
contract with a United States or third-country contractor
to carry out any program, project, or activity of assistance
under this Act that was subsequently terminated pursuant
to law.
‘‘(c) GUARANTEE PROGRAMS.—Provisions of this or
any other Act requiring the termination of assistance
under this Act shall not be construed to require the termi-
nation of guarantee commitments that were entered into
before the effective date of the termination of assistance.’’.
SEC. 705. LOCAL ASSISTANCE TO HUMAN RIGHTS GROUPS
IN CUBA.
Section 109 of the Cuban Liberty and Democratic
Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6039)
is amended by adding at the end the following:
‘‘(d) LOCAL ASSISTANCE.—
101
‘‘(1) IN GENERAL.—For the purposes of provid-
ing assistance to independent nongovernmental orga-
nizations and individuals in Cuba as authorized by
subsection (a), amounts made available under such
subsection may be used for assistance to individuals
and nongovernmental organizations in Cuba and for
local costs incurred in delivering such assistance.
‘‘(2) CERTIFICATION.—A certification by a rep-
resentative of a United States or local nongovern-
mental organization, or other entity, administering
assistance described in paragraph (1), that such as-
sistance is being used for its intended purpose, shall
be deemed to satisfy any accountability requirement
of the United States Agency for International Devel-
opment for the administration of such assistance.’’.
CHAPTER 2—REPEALS
SEC. 711. REPEAL OF OBSOLETE PROVISIONS.
(a) 1987 FOREIGN ASSISTANCE APPROPRIATIONS
ACT.—Section 539(g)(2) of the Foreign Assistance and
Related Programs Appropriations Act, 1987, as included
in Public Law 99–591, is hereby repealed.
(b) 1986 ASSISTANCE ACT.—The Special Foreign
Assistance Act of 1986 is hereby repealed except for sec-
tion 1, section 204, and title III of such Act.
102
(c) 1985 ASSISTANCE ACT.—The International Secu-
rity and Development Cooperation Act of 1985 is hereby
repealed except for section 1, section 131, section 132, sec-
tion 502, section 504, section 505, part B of title V (other
than section 558 and section 559), section 1302, section
1303, and section 1304.
(d) 1985 JORDAN SUPPLEMENTAL ACT.—The Jor-
dan Supplemental Economic Assistance Authorization Act
of 1985 is hereby repealed.
(e) 1985 AFRICAN FAMINE ACT.—The African Fam-
ine Relief and Recovery Act of 1985 is hereby repealed.
(f) 1983 ASSISTANCE ACT.—The International Secu-
rity and Development Assistance Authorization Act of
1983 is hereby repealed.
(g) 1983 LEBANON ASSISTANCE ACT.—The Lebanon
Emergency Assistance Act of 1983 is hereby repealed.
(h) 1981 ASSISTANCE ACT.—The International Secu-
rity and Development Cooperation Act of 1981 is hereby
repealed except for section 1, section 709, and section 714.
(i) 1980 ASSISTANCE ACT.—The International Secu-
rity and Development Cooperation Act of 1980 is hereby
repealed except for section 1, section 110, section 316, and
title V.
103
(j) 1979 DEVELOPMENT ASSISTANCE ACT.—The
International Development Cooperation Act of 1979 is
hereby repealed.
(k) 1979 SECURITY ASSISTANCE ACT.—The Inter-
national Security Assistance Act of 1979 is hereby re-
pealed.
(l) 1979 SPECIAL SECURITY ASSISTANCE ACT.—The
Special International Security Assistance Act of 1979 is
hereby repealed.
(m) 1978 DEVELOPMENT ASSISTANCE ACT.—The
International Development and Food Assistance Act of
1978 is hereby repealed, except for section 1, title IV, and
section 603(a)(2).
(n) 1978 SECURITY ASSISTANCE ACT.—The Inter-
national Security Assistance Act of 1978 is hereby re-
pealed.
(o) 1977 DEVELOPMENT ASSISTANCE ACT.—The
International Development and Food Assistance Act of
1977 is hereby repealed except for section 1, section
132(b), and section 133.
(p) 1977 SECURITY ASSISTANCE ACT.—The Inter-
national Security Assistance Act of 1977 is hereby re-
pealed.
(q) 1976 SECURITY ASSISTANCE ACT.—The Inter-
national Security Assistance and Arms Export Control Act
104
of 1976 is hereby repealed except for section 1, section
201(b), section 212(b), section 601, and section 608.
(r) 1975 DEVELOPMENT ASSISTANCE ACT.—The
International Development and Food Assistance Act of
1975 is hereby repealed.
(s) 1975 BIB ACT.—Public Law 94–104 is hereby
repealed.
(t) 1974 ASSISTANCE ACT.—The Foreign Assistance
Act of 1974 is hereby repealed.
(u) 1973 EMERGENCY
ASSISTANCE
ACT.—The
Emergency Security Assistance Act of 1973 is hereby re-
pealed.
(v) 1973 ASSISTANCE ACT.—The Foreign Assistance
Act of 1973 is hereby repealed.
(w) 1971 ASSISTANCE ACT.—The Foreign Assistance
Act of 1971 is hereby repealed.
(x) 1971 SPECIAL ASSISTANCE ACT.—The Special
Foreign Assistance Act of 1971 is hereby repealed.
(y) 1969 ASSISTANCE ACT.—The Foreign Assistance
Act of 1969 is hereby repealed except for the first section
and part IV.
(z) 1968 ASSISTANCE ACT.—The Foreign Assistance
Act of 1968 is hereby repealed.
(aa) 1964 ASSISTANCE ACT.—The Foreign Assist-
ance Act of 1964 is hereby repealed.
105
(bb) LATIN AMERICAN DEVELOPMENT ACT.—The
Latin American Development Act is hereby repealed.
(cc) 1959 MUTUAL SECURITY ACT.—The Mutual Se-
curity Act of 1959 is hereby repealed.
(dd) 1954 MUTUAL SECURITY ACT.—Sections 402
and 417 of the Mutual Security Act of 1954 are hereby
repealed.
(ee) DEPARTMENT OF STATE AUTHORIZATION ACT,
FISCAL YEARS 1982 AND 1983.—Section 109 of the De-
partment of State Authorization Act, Fiscal Years 1982
and 1983, is hereby repealed.
(ff) DEPARTMENT OF STATE AUTHORIZATION ACT,
FISCAL YEARS 1984 AND 1985.—Sections 1004 and
1005(a) of the Department of State Authorization Act,
Fiscal Years 1984 and 1985, are hereby repealed.
(gg) SAVINGS PROVISION.—Except as otherwise pro-
vided in this Act, the repeal by this Act of any provision
of law that amended or repealed another provision of law
does not affect in any way that amendment or repeal.
DIVISION 
B—FOREIGN 
RELA-
TIONS AUTHORIZATIONS ACT
TITLE X—GENERAL PROVISIONS
SEC. 1001. SHORT TITLE.
This division may be cited as the ‘‘Foreign Relations
Authorization Act, Fiscal Years 1998 and 1999’’ and shall
106
be effective for all purposes as if enacted as a separate
Act.
SEC. 1002. STATEMENT OF HISTORY OF LEGISLATION.
This division consists of H.R. 1253, the Foreign Re-
lations Authorization Act, Fiscal Years 1998 and 1999,
which was introduced by Representative Smith of New
Jersey on April 9, 1997, and amended and reported by
the Subcommittee on International Operations and
Human Rights of the Committee on International Rela-
tions on April 10, 1997.
SEC. 1003. DEFINITIONS.
The following terms have the following meanings for
the purposes of this division:
(1) The term ‘‘AID’’ means the Agency for
International Development.
(2) The term ‘‘ACDA’’ means the United
States Arms Control and Disarmament Agency.
(3) The term ‘‘appropriate congressional com-
mittees’’ means the Committee on International Re-
lations of the House of Representatives and the
Committee of Foreign Relations of the Senate.
(4) The term ‘‘Department’’ means the Depart-
ment of State.
107
(5) The term ‘‘Federal agency’’ has the mean-
ing given to the term ‘‘agency’’ by section 551(1) of
title 5, United States Code.
(6) The term ‘‘Secretary’’ means the Secretary
of State.
(7) The term ‘‘USIA’’ means the United States
Information Agency.
TITLE XI—AUTHORIZATION OF
APPROPRIATIONS 
FOR 
DE-
PARTMENT OF STATE AND
CERTAIN INTERNATIONAL AF-
FAIRS FUNCTIONS AND AC-
TIVITIES
SEC. 1101. ADMINISTRATION OF FOREIGN AFFAIRS.
The following amounts are authorized to be appro-
priated for the Department of State under ‘‘Administra-
tion of Foreign Affairs’’ to carry out the authorities, func-
tions, duties, and responsibilities in the conduct of the for-
eign affairs of the United States and for other purposes
authorized by law, including the diplomatic security pro-
gram:
(1) DIPLOMATIC AND CONSULAR PROGRAMS.—
For ‘‘Diplomatic and Consular Programs’’, of the
Department of State $1,280,300,000 for the fiscal
108
year 1998 and $1,291,977,000 for the fiscal year
1999.
(2) SALARIES AND EXPENSES.—
(A) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—For ‘‘Salaries and Expenses’’, of the
Department of State $352,300,000 for the fis-
cal year 1998 and $352,300,000 for the fiscal
year 1999.
(B) LIMITATIONS.—
(i) Of the amounts authorized to be
appropriated 
by 
subparagraph 
(A),
$12,000,000 for fiscal year 1998 and
$12,000,000 for fiscal year 1999 are au-
thorized to be appropriated for salaries
and expenses of the Bureau of Refugee
and Migration Assistance.
(ii) Of the amounts authorized to be
appropriated 
by 
subparagraph 
(A)
$1,000,000 for fiscal year 1998 and
$1,000,000 for fiscal year 1999 are au-
thorized to be appropriated only for the re-
cruitment and training of Hispanic Ameri-
cans, Asian-Pacific Americans, and African
Americans for careers in the Foreign Serv-
ice and international affairs.
109
(3) CAPITAL INVESTMENT FUND.—For ‘‘Cap-
ital Investment Fund’’, of the Department of State
$56,000,000 
for 
the 
fiscal 
year 
1998 
and
$56,000,000 for the fiscal year 1999.
(4) SECURITY AND MAINTENANCE OF BUILD-
INGS ABROAD.—For ‘‘Security and Maintenance of
Buildings Abroad’’, $373,081,000 for the fiscal year
1998 and $373,081,000 for the fiscal year 1999.
(5) 
REPRESENTATION
ALLOWANCES.—For
‘‘Representation Allowances’’, $4,300,000 for the
fiscal year 1998 and $4,300,000 for the fiscal year
1999.
(6) EMERGENCIES
IN
THE
DIPLOMATIC
AND
CONSULAR SERVICE.—For ‘‘Emergencies in the Dip-
lomatic and Consular Service’’, $5,500,000 for the
fiscal 1998 and $5,500,000 for the fiscal year 1999.
(7) OFFICE OF THE INSPECTOR GENERAL.—
For ‘‘Office of the Inspector General’’, $28,300,000
for the fiscal year 1998 and $28,300,000 for the fis-
cal year 1999.
(8) PAYMENT TO THE AMERICAN INSTITUTE IN
TAIWAN.—For ‘‘Payment to the American Institute
in Taiwan’’, $14,490,000 for the fiscal year 1998
and $14,490,000 for the fiscal year 1999.
110
(9) PROTECTION
OF
FOREIGN
MISSIONS
AND
OFFICIALS.—For ‘‘Protection of Foreign Missions
and Officials’’, $7,900,000 for the fiscal year 1998
and $7,900,000 for the fiscal year 1999.
(10) REPATRIATION
LOANS.—For ‘‘Repatri-
ation Loans’’, $1,200,000 for the fiscal year 1998
and $1,200,000 for the fiscal year 1999, for admin-
istrative expenses.
SEC. 1102. INTERNATIONAL ORGANIZATIONS, PROGRAMS,
AND CONFERENCES.
(a) ASSESSED CONTRIBUTIONS TO INTERNATIONAL
ORGANIZATIONS.—There are authorized to be appro-
priated for ‘‘Contributions to International Organiza-
tions’’, $960,389,000 for the fiscal year 1998 and
$987,590,000 for the fiscal year 1999 for the Department
of State to carry out the authorities, functions, duties, and
responsibilities in the conduct of the foreign affairs of the
United States with respect to international organizations
and to carry out other authorities in law consistent with
such purposes.
(b) 
VOLUNTARY
CONTRIBUTIONS
TO
INTER-
NATIONAL ORGANIZATIONS.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated for ‘‘Vol-
untary Contributions to International Organiza-
111
tions’’, $299,725,000 for the fiscal year 1998 and
$299,725,000 for the fiscal year 1999.
(2) LIMITATIONS.—
(A) WORLD
FOOD
PROGRAM.—Of the
amounts authorized to be appropriated under
paragraph (1), $5,000,000 for the fiscal year
1998 and $5,000,000 for the fiscal year 1999
are authorized to be appropriated only for a
United States contribution to the World Food
Program.
(B) UNITED NATIONS VOLUNTARY FUND
FOR VICTIMS OF TORTURE.—Of the amount au-
thorized to be appropriated under paragraph
(1), $3,000,000 for the fiscal year 1998 and
$3,000,000 for the fiscal year 1999 are author-
ized to be appropriated only for a United States
contribution to the United Nations Voluntary
Fund for Victims of Torture.
(C) INTERNATIONAL
PROGRAM
ON
THE
ELIMINATION
OF
CHILD
LABOR.—Of 
the
amounts authorized to be appropriated under
paragraph (1), $10,000,000 for the fiscal year
1998 and $10,000,000 for the fiscal year 1999
are authorized to be appropriated only for a
United States contribution to the International
112
Labor Organization for the activities of the
International Program on the Elimination of
Child Labor.
(3) AVAILABILITY
OF
FUNDS.—Amounts au-
thorized to be appropriated under paragraph (1) are
authorized to remain available until expended.
(c) ASSESSED CONTRIBUTIONS FOR INTERNATIONAL
PEACEKEEPING ACTIVITIES.—There are authorized to be
appropriated for ‘‘Contributions for International Peace-
keeping Activities’’, $240,000,000 for the fiscal year 1998
and $240,000,000 for the fiscal year 1999 for the Depart-
ment of State to carry out the authorities, functions, du-
ties, and responsibilities in the conduct of the foreign af-
fairs of the United States with respect to international
peacekeeping activities and to carry out other authorities
in law consistent with such purposes.
(d) VOLUNTARY CONTRIBUTIONS TO PEACEKEEPING
OPERATIONS.—There are authorized to be appropriated
for ‘‘Peacekeeping Operations’’, $87,600,000 for the fiscal
year 1998 and $67,000,000 for the fiscal year 1999 for
the Department of State to carry out section 551 of Public
Law 87–195.
(e) INTERNATIONAL CONFERENCES
AND CONTIN-
GENCIES.—There are authorized to be appropriated for
‘‘International 
Conferences 
and 
Contingencies’’,
113
$3,000,000 for the fiscal year 1998 and $3,000,000 for
the fiscal year 1999 for the Department of State to carry
out the authorities, functions, duties, and responsibilities
in the conduct of the foreign affairs of the United States
with respect to international conferences and contin-
gencies and to carry out other authorities in law consistent
with such purposes.
(f) FOREIGN CURRENCY EXCHANGE RATES.—In ad-
dition to amounts otherwise authorized to be appropriated
by subsections (a) and (b) of this section, there are au-
thorized to be appropriated such sums as may be nec-
essary for each of the fiscal years 1998 and 1999 to offset
adverse fluctuations in foreign currency exchange rates.
Amounts appropriated under this subsection shall be avail-
able for obligation and expenditure only to the extent that
the Director of the Office of Management and Budget de-
termines and certifies to Congress that such amounts are
necessary due to such fluctuations.
(g) LIMITATION ON UNITED STATES VOLUNTARY
CONTRIBUTIONS
TO UNITED NATIONS DEVELOPMENT
PROGRAM.—
(1) Of the amounts made available for fiscal
years 1998 and 1999 for United States voluntary
contributions to the United Nations Development
Program—
114
(A) not more than $76,350,000 shall be
made available for fiscal year 1998 unless, dur-
ing fiscal year 1998, the President submits to
the appropriate committees of Congress the cer-
tification described in paragraph (2), and
(B) not more than $76,350,000 shall be
available for fiscal year 1999 unless, during fis-
cal year 1999, the President submits to the ap-
propriate committees of Congress the certifi-
cation described in paragraph (2).
(2) The certification referred to in paragraph
(1) is a certification by the President that all pro-
grams and activities of the United Nations Develop-
ment Program (including United Nations Develop-
ment Program—Administered Funds) in Burma—
(A) are focused on eliminating human suf-
fering and addressing the needs of the poor;
(B) are undertaken only through inter-
national or private voluntary organizations that
have been deemed independent of the State
Law and Order Restoration Council (SLORC)
by the leadership of the National League for
Democracy and the leadership of the National
Coalition Government of the Union of Burma;
115
(C) provide no financial, political, or mili-
tary benefit to the SLORC; and
(D) are supported by the leadership of the
National League for Democracy and the leader-
ship of the National Coalition Government of
the Union of Burma.
SEC. 1103. INTERNATIONAL COMMISSIONS.
The following amounts are authorized to be appro-
priated under ‘‘International Commissions’’ for the De-
partment of State to carry out the authorities, functions,
duties, and responsibilities in the conduct of the foreign
affairs of the United States and for other purposes author-
ized by law:
(1) INTERNATIONAL
BOUNDARY
AND
WATER
COMMISSION, UNITED
STATES
AND
MEXICO.—For
‘‘International Boundary and Water Commission,
United States and Mexico’’—
(A) 
for 
‘‘Salaries 
and 
Expenses’’
$18,490,000 for the fiscal year 1998 and
$18,490,000 for the fiscal year 1999; and
(B) for ‘‘Construction’’ $6,493,000 for the
fiscal year 1998 and $6,493,000 for the fiscal
year 1999.
(2) INTERNATIONAL
BOUNDARY
COMMISSION,
UNITED STATES AND CANADA.—For ‘‘International
116
Boundary Commission, United States and Canada’’,
$785,000 for the fiscal year 1998 and $785,000 for
the fiscal year 1999.
(3) INTERNATIONAL JOINT COMMISSION.—For
‘‘International Joint Commission’’, $3,225,000 for
the fiscal year 1998 and $3,225,000 for the fiscal
year 1999.
(4) 
INTERNATIONAL
FISHERIES
COMMIS-
SIONS.—For ‘‘International Fisheries Commissions’’,
$14,549,000 
for 
the 
fiscal 
year 
1998 
and
$14,549,000 for the fiscal year 1999.
SEC. 1104. MIGRATION AND REFUGEE ASSISTANCE.
(a) MIGRATION AND REFUGEE ASSISTANCE.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated for ‘‘Migra-
tion and Refugee Assistance’’ for authorized activi-
ties, $623,000,000 for the fiscal year 1998 and
$623,000,000 for the fiscal year 1999.
(2) LIMITATION REGARDING TIBETAN REFU-
GEES IN INDIA AND NEPAL.—Of the amounts au-
thorized to be appropriated in paragraph (1),
$1,000,000 for the fiscal year 1998 and $1,000,000
for the fiscal year 1999 are authorized to be avail-
able only for humanitarian assistance, including but
not limited to food, medicine, clothing, and medical
117
and vocational training to Tibetan refugees in India
and Nepal who have fled Chinese-occupied Tibet.
(b) REFUGEES RESETTLING IN ISRAEL.—There are
authorized to be appropriated $80,000,000 for the fiscal
year 1998 and $80,000,000 for the fiscal year 1999 for
assistance for refugees resettling in Israel from other
countries.
(c) HUMANITARIAN ASSISTANCE
FOR DISPLACED
BURMESE.—There are authorized to be appropriated
$1,500,000 for the fiscal year 1998 and $1,500,000 for
the fiscal year 1999 for humanitarian assistance, includ-
ing but not limited to food, medicine, clothing, and medi-
cal and vocational training to persons displaced as a result
of civil conflict in Burma, including persons still within
Burma.
(d) LIMITATION.—None of the funds authorized to
be appropriated by this section are authorized to be appro-
priated for salaries and administrative expenses of the Bu-
reau of Migration and Refugee Assistance.
(e) AVAILABILITY OF FUNDS.—Funds appropriated
pursuant to this section are authorized to be available
until expended.
SEC. 1105. ASIA FOUNDATION.
There are authorized to be appropriated for ‘‘Asia
Foundation’’, $10,000,000 for the fiscal year 1998 and
118
$10,000,000 for the fiscal year 1999 for the Department
of State to carry out the authorities, functions, duties, and
responsibilities in the conduct of the foreign affairs of the
United States with respect to Asia Foundation and to
carry out other authorities in law consistent with such
purposes.
SEC. 
1106. 
UNITED 
STATES 
INFORMATIONAL, 
EDU-
CATIONAL, AND CULTURAL PROGRAMS.
The following amounts are authorized to be appro-
priated to carry out international information activities
and educational and cultural exchange programs under
the United States Information and Educational Exchange
Act of 1948, the Mutual Educational and Cultural Ex-
change Act of 1961, Reorganization Plan Number 2 of
1977, the United States International Broadcasting Act
of 1994, the Radio Broadcasting to Cuba Act, the Tele-
vision Broadcasting to Cuba Act, the Board for Inter-
national Broadcasting Act, the North/South Center Act of
1991, the National Endowment for Democracy Act, and
to carry out other authorities in law consistent with such
purposes:
(1) SALARIES AND EXPENSES.—For ‘‘Salaries
and Expenses’’, $434,097,000 for the fiscal year
1998 and $434,097,000 for the fiscal year 1999.
119
(2) TECHNOLOGY
FUND.—For ‘‘Technology
Fund’’ for the United States Information Agency,
$6,350,000 for the fiscal year 1998 and $6,350,000
for the fiscal year 1999.
(3) EDUCATIONAL AND CULTURAL EXCHANGE
PROGRAMS.—
(A) FULBRIGHT
ACADEMIC
EXCHANGE
PROGRAMS.—For the ‘‘Fulbright Academic Ex-
change Programs’’, $94,236,000 for the fiscal
year 1998 and $94,236,000 for the fiscal year
1999.
(B) SOUTH PACIFIC EXCHANGES.—For the
‘‘South Pacific Exchanges’’, $500,000 for the
fiscal year 1998 and $500,000 for the fiscal
year 1999.
(C) EAST TIMORESE SCHOLARSHIPS.—For
the ‘‘East Timorese Scholarships’’, $500,000
for the fiscal year 1998 and $500,000 for the
fiscal year 1999.
(D) 
TIBETAN
EXCHANGES.—For 
the
‘‘Educational and Cultural Exchanges with
Tibet’’ under section 236 of the Foreign Rela-
tions Authorization Act, Fiscal Years 1994 and
1995 (Public Law 103–236), $500,000 for the
120
fiscal year 1998 and $500,000 for the fiscal
year 1999.
(E) OTHER PROGRAMS.—For ‘‘Hubert H.
Humphrey Fellowship Program’’, ‘‘Edmund S.
Muskie Fellowship Program’’, ‘‘International
Visitors Program’’, ‘‘Mike Mansfield Fellowship
Program’’, ‘‘Claude and Mildred Pepper Schol-
arship Program of the Washington Workshops
Foundation’’, ‘‘Citizen Exchange Programs’’,
‘‘Congress-Bundestag 
Exchange 
Program’’,
‘‘Newly Independent States and Eastern Eu-
rope Training’’, and ‘‘Institute for Representa-
tive Government’’, $97,995,000 for the fiscal
year 1998 and $97,995,000 for the fiscal year
1999.
(4) INTERNATIONAL
BROADCASTING
ACTIVI-
TIES.—
(A) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—For ‘‘International Broadcasting Ac-
tivities’’, $334,655,000 for the fiscal year 1998,
and $334,655,000 for the fiscal year 1999.
(B) ALLOCATION.—Of the amounts au-
thorized to be appropriated under subparagraph
(A), the Director of the United States Informa-
tion Agency and the Board of Broadcasting
121
Governors shall seek to ensure that the
amounts made available for broadcasting to na-
tions whose people do not fully enjoy freedom of
expression do not decline in proportion to the
amounts made available for broadcasting to
other nations.
(5) RADIO CONSTRUCTION.—For ‘‘Radio Con-
struction’’, $30,000,000 for the fiscal year 1998,
and $30,000,000 for the fiscal year 1999.
(6) RADIO
FREE
ASIA.—For ‘‘Radio Free
Asia’’, $10,000,000 for the fiscal year 1998 and
$10,000,000 for the fiscal year 1999.
(7) BROADCASTING
TO
CUBA.—For ‘‘Broad-
casting to Cuba’’, $22,095,000 for the fiscal year
1998 and $22,095,000 for the fiscal year 1999.
(8) CENTER FOR CULTURAL AND TECHNICAL
INTERCHANGE
BETWEEN
EAST
AND
WEST.—For
‘‘Center for Cultural and Technical Interchange be-
tween East and West’’, $10,000,000 for the fiscal
year 1998 and $10,000,000 for the fiscal year 1999.
(9) NATIONAL
ENDOWMENT
FOR
DEMOC-
RACY.—For ‘‘National Endowment for Democracy’’,
$30,000,000 
for 
the 
fiscal 
year 
1998 
and
$30,000,000 for the fiscal year 1999.
122
(10) CENTER FOR CULTURAL AND TECHNICAL
INTERCHANGE BETWEEN NORTH AND SOUTH.—For
‘‘Center for Cultural and Technical Interchange be-
tween North and South’’ $2,000,000 for the fiscal
year 1998 and $2,000,000 for the fiscal year 1999.
SEC. 1107. UNITED STATES ARMS CONTROL AND DISAR-
MAMENT.
There are authorized to be appropriated to carry out
the purposes of the Arms Control and Disarmament Act—
(1) $44,000,000 for the fiscal year 1998 and
$44,000,000 for the fiscal year 1999; and
(2) such sums as may be necessary for each of
the fiscal years 1998 and 1999 for increases in sal-
ary, pay, retirement, other employee benefits author-
ized by law, and to offset adverse fluctuations in for-
eign currency exchange rates.
123
TITLE 
XII—DEPARTMENT 
OF
STATE AUTHORITIES AND AC-
TIVITIES
CHAPTER 1—AUTHORITIES AND
ACTIVITIES
SEC. 1201. REVISION OF DEPARTMENT OF STATE REWARDS
PROGRAM.
(a) IN GENERAL.—Section 36 of the State Depart-
ment Basic Authorities Act of 1956 (22 U.S.C. 2708) is
amended to read as follows:
‘‘SEC. 36. DEPARTMENT OF STATE REWARDS PROGRAM.
‘‘(a) ESTABLISHMENT.—(1) There is established a
program for the payment of rewards to carry out the pur-
poses of this section.
‘‘(2) The rewards program established by this section
shall be administered by the Secretary of State, in con-
sultation, where appropriate, with the Attorney General.
‘‘(b) PURPOSE.—(1) The rewards program estab-
lished by this section shall be designed to assist in the
prevention of acts of international terrorism, international
narcotics trafficking, and other related criminal acts.
‘‘(2) At the sole discretion of the Secretary of State
and in consultation, as appropriate, with the Attorney
General, the Secretary may pay a reward to any individual
who furnishes information leading to—
124
‘‘(A) the arrest or conviction in any country of
any individual for the commission of an act of inter-
national terrorism against a United States person or
United States property;
‘‘(B) the arrest or conviction in any country of
any individual conspiring or attempting to commit
an act of international terrorism against a United
States person or United States property;
‘‘(C) the arrest or conviction in any country of
any individual for committing, primarily outside the
territorial jurisdiction of the United States, any nar-
cotics-related offense if that offense involves or is a
significant part of conduct that involves—
‘‘(i) a violation of United States narcotics
laws and which is such that the individual
would be a major violator of such laws; or
‘‘(ii) the killing or kidnapping of—
‘‘(I) any officer, employee, or contract
employee of the United States Government
while such individual is engaged in official
duties, or on account of that individual’s
official duties, in connection with the en-
forcement of United States narcotics laws
or the implementing of United States nar-
cotics control objectives; or
125
‘‘(II) a member of the immediate fam-
ily of any such individual on account of
that individual’s official duties, in connec-
tion with the enforcement of United States
narcotics laws or the implementing of
United States narcotics control objectives;
or
‘‘(iii) an attempt or conspiracy to commit
any of the acts described in clause (i) or (ii);
or
‘‘(D) the arrest or conviction in any country of
any individual aiding or abetting in the commission
of an act described in subparagraphs (A) through
(C); or
‘‘(E) the prevention, frustration, or favorable
resolution of an act described in subparagraphs (A)
through (C).
‘‘(c) COORDINATION.—(1) To ensure that the pay-
ment of rewards pursuant to this section does not dupli-
cate or interfere with the payment of informants or the
obtaining of evidence or information, as authorized to the
Department of Justice, the offering, administration, and
payment of rewards under this section, including proce-
dures for—
126
‘‘(A) identifying individuals, organizations, and
offenses with respect to which rewards will be of-
fered;
‘‘(B) the publication of rewards;
‘‘(C) offering of joint rewards with foreign gov-
ernments;
‘‘(D) the receipt and analysis of data; and
‘‘(E) the payment and approval of payment,
shall be governed by procedures developed by the Sec-
retary of State, in consultation with the Attorney General.
‘‘(2) Before making a reward under this section in
a matter over which there is Federal criminal jurisdiction,
the Secretary of State shall advise and consult with the
Attorney General.
‘‘(d) FUNDING.—(1) There is authorized to be appro-
priated to the Department of State from time to time such
amounts as may be necessary to carry out the purposes
of this section, notwithstanding section 102 of the Foreign
Relations Authorization Act, Fiscal Years 1986 and 1987
(Public Law 99–93).
‘‘(2) No amount of funds may be appropriated which,
when added to the amounts previously appropriated but
not yet obligated, would cause such amounts to exceed
$15,000,000.
127
‘‘(3) To the maximum extent practicable, funds made
available to carry out this section should be distributed
equally for the purpose of preventing acts of international
terrorism and for the purpose of preventing international
narcotics trafficking.
‘‘(4) Amounts appropriated to carry out the purposes
of this section shall remain available until expended.
‘‘(e) LIMITATION AND CERTIFICATION.—(1) A re-
ward under this section may not exceed $2,000,000.
‘‘(2) A reward under this section of more than
$100,000 may not be made without the approval of the
President or the Secretary of State.
‘‘(3) Any reward granted under this section shall be
approved and certified for payment by the Secretary of
State.
‘‘(4) The authority of paragraph (2) may not be dele-
gated to any other officer or employee of the United States
Government.
‘‘(5) If the Secretary determines that the identity of
the recipient of a reward or of the members of the recipi-
ent’s immediate family must be protected, the Secretary
may take such measures in connection with the payment
of the reward as he considers necessary to effect such pro-
tection.
128
‘‘(f) INELIGIBILITY.—An officer or employee of any
governmental entity who, while in the performance of his
or her official duties, furnishes information described in
subsection (b) shall not be eligible for a reward under this
section.
‘‘(g) REPORTS.—(1) Not later than 30 days after
paying any reward under this section, the Secretary of
State shall submit a report to the appropriate congres-
sional committees with respect to such reward. The report,
which may be submitted on a classified basis if necessary,
shall specify the amount of the reward paid, to whom the
reward was paid, and the acts with respect to which the
reward was paid. The report shall also discuss the signifi-
cance of the information for which the reward was paid
in dealing with those acts.
‘‘(2) Not later than 60 days after the end of each
fiscal year, the Secretary of State shall submit an annual
report to the appropriate congressional committees with
respect to the operation of the rewards program author-
ized by this section. Such report shall provide information
on the total amounts expended during such fiscal year to
carry out the purposes of this section, including amounts
spent to publicize the availability of rewards.
‘‘(h) PUBLICATION REGARDING REWARDS OFFERED
BY FOREIGN GOVERNMENTS.—Notwithstanding any other
129
provision of this section, at the sole discretion of the Sec-
retary of State the resources of the rewards program au-
thorized by this section, shall be available for the publica-
tion of rewards offered by foreign governments regarding
acts of international terrorism which do not involve United
States persons or property or a violation of the narcotics
laws of the United States.
‘‘(i) DEFINITIONS.—As used in this section—
‘‘(1) the term ‘appropriate congressional com-
mittees’ means the Committee on International Re-
lations of the House of Representatives and the
Committee on Foreign Relations of the Senate;
‘‘(2) the term ‘act of international terrorism’ in-
cludes, but is not limited to—
‘‘(A) any act substantially contributing to
the acquisition of unsafeguarded special nuclear
material (as defined in section 830(8) of the
Nuclear Proliferation Prevention Act of 1994)
or any nuclear explosive device (as defined in
section 830(4) of that Act) by an individual,
group, or non-nuclear weapon state (as defined
in section 830(5) of that Act); and
‘‘(B) any act, as determined by the Sec-
retary of State, which materially supports the
conduct of international terrorism, including the
130
counterfeiting of United States currency or the
illegal use of other monetary instruments by an
individual, group, or country supporting inter-
national terrorism as determined for purposes
of section 6(j) of the Export Administration Act
of 1979;
‘‘(3) the term ‘United States narcotics laws’
means the laws of the United States for the preven-
tion and control of illicit traffic in controlled sub-
stances (as such term is defined for purposes of the
Controlled Substances Act); and
‘‘(4) the term ‘member of the immediate family’
includes—
‘‘(A) a spouse, parent, brother, sister, or
child of the individual;
‘‘(B) a person to whom the individual
stands in loco parentis; and
‘‘(C) any other person living in the individ-
ual’s household and related to the individual by
blood or marriage.
‘‘(j) DETERMINATIONS OF THE SECRETARY.—A de-
termination made by the Secretary of State under this sec-
tion shall be final and conclusive and shall not be subject
to judicial review.’’.
131
(b) USE OF EARNINGS FROM FROZEN ASSETS FOR
PROGRAM.—
(1) AMOUNTS TO BE MADE AVAILABLE.—Up to
2 percent of the earnings accruing, during periods
beginning October 1, 1998, on all assets of foreign
countries blocked by the President pursuant to the
International Emergency Powers Act (50 U.S.C.
1701 and following) shall be available, subject to ap-
propriations Acts, to carry out section 36 of the
State Department Basic Authorities Act, as amend-
ed by this section, except that the limitation con-
tained in subsection (d)(2) of such section shall not
apply to amounts made available under this para-
graph.
(2) CONTROL OF FUNDS BY THE PRESIDENT.—
The President is authorized and directed to take
possession and exercise full control of so much of the
earnings described in paragraph (1) as are made
available under such paragraph.
SEC. 1202. FOREIGN SERVICE NATIONAL SEPARATION LI-
ABILITY TRUST FUND.
Section 151 of the Foreign Relations Authorization
Act, Fiscal Years 1992 and 1993 (22 U.S.C. 4012a) is
amended by adding at the end the following new sub-
section:
132
‘‘(e) INTEREST.—The Secretary of the Treasury shall
deposit amounts in the fund in interest-bearing accounts.
Any interest earned on such deposits may be credited to
the fund without further appropriation.’’.
SEC. 1203. CAPITAL INVESTMENT FUND.
Section 135 of the Foreign Relations Authorization
Act, Fiscal Years 1994 and 1995 (22 U.S.C. 2684a) is
amended—
(1) in subsection (a) by inserting ‘‘and enhance-
ment’’ after ‘‘procurement’’;
(2) in subsection (c) by striking ‘‘are authorized
to’’ and inserting ‘‘shall’’;
(3) in subsection (d) by striking ‘‘for expendi-
ture to procure capital equipment and information
technology’’ and inserting in lieu thereof ‘‘for pur-
poses of subsection (a)’’; and
(4) by amending subsection (e) to read as fol-
lows:
‘‘(e) REPROGRAMMING PROCEDURES.—Funds cred-
ited to the Capital Investment Fund shall not be available
for obligation or expenditure except in compliance with the
procedures applicable to reprogrammings under section 34
of the State Department Basic Authorities Act of 1956
(22 U.S.C. 2710).’’.
133
SEC. 1204. INTERNATIONAL CENTER RESERVE FUNDS.
Section 5 of the International Center Act (Public
Law 90-533) is amended by adding at the end the follow-
ing new sentence: ‘‘Amounts in the reserve may be depos-
ited in interest-bearing accounts and the Secretary may
retain for the purposes set forth in this section any inter-
est earned on such deposits without returning such inter-
est to the Treasury of the United States and without fur-
ther appropriation.’’.
SEC. 1205. PROCEEDS OF SALE OF FOREIGN PROPERTIES.
Section 9 of the Foreign Service Buildings Act, 1926
(22 U.S.C. 300) is amended by adding at the end the fol-
lowing new subsection:
‘‘(d) Any proceeds held or deposited pursuant to this
section may be deposited in interest bearing accounts. The
Secretary of State may retain interest earned on such de-
posits for the purposes of this section without returning
such interest to the Treasury of the United States and
interest earned may be obligated and expended without
further appropriation.’’.
SEC. 1206. REDUCTION OF REPORTING.
(a) REPORT ON FOREIGN SERVICE PERSONNEL IN
EACH AGENCY.—Section 601(c)(4) of the Foreign Service
Act of 1980 (22 U.S.C. 4001(c)(4)) is repealed.
(b) REPORT ON PARTICIPATION BY U.S. MILITARY
PERSONNEL
ABROAD
IN
U.S. ELECTIONS.—Section
134
101(b)(6) of the Uniformed and Overseas Citizens Absen-
tee Voting Act (42 U.S.C. 1973ff(b)(6)) is amended by
striking ‘‘of voter participation’’ and inserting ‘‘of uni-
formed services voter participation, a general assessment
of overseas nonmilitary participation,’’.
(c) COUNTRY REPORTS ON ECONOMIC POLICY AND
TRADE PRACTICES.—Section 2202 of the Omnibus Trade
and Competitiveness Act of 1988 (15 U.S.C. 4711) is re-
pealed.
(d) ANNUAL REPORT ON SOCIAL AND ECONOMIC
GROWTH.—Section 574 of the Foreign Operations, Ex-
port Financing, and Related Programs Appropriations
Act, 1996 (Public Law 104-107) is repealed.
(e) REPORT.—Section 308 of the Chemical and Bio-
logical Weapons and Warfare Elimination Act of 1991 (22
U.S.C. 5606) is repealed.
SEC. 1207. CONTRACTING FOR LOCAL GUARDS SERVICES
OVERSEAS.
Section 136(c) of the Foreign Relations Authoriza-
tion Act, Fiscal Years 1990 and 1991 (22 U.S.C. 4864(c))
is amended—
(1) by amending paragraph (3) to read as fol-
lows:
‘‘(3) in evaluating proposals for such contracts,
award contracts to the technically acceptable firm
135
offering the lowest evaluated price, except that pro-
posals of United States persons and qualified United
States joint venture persons (as defined in sub-
section (d)) shall be evaluated by reducing the bid
price by 5 percent;’’;
(2) by inserting ‘‘and’’ at the end of paragraph
(5);
(3) by striking ‘‘; and’’ at the end of paragraph
(6) and inserting a period; and
(4) by striking paragraph (7).
SEC. 1208. PREADJUDICATION OF CLAIMS.
Section 4(a) of the International Claims Settlement
Act (22 U.S.C. 1623(a)) is amended—
(1) in the first sentence by striking ‘‘1948, or’’
and inserting ‘‘1948,’’;
(2) by inserting before the period at the end of
the first sentence ‘‘, or included in a category of
claims against a foreign government which is re-
ferred to the Commission by the Secretary of State’’;
and
(3) in paragraph (1) by striking ‘‘the applica-
ble’’ and inserting ‘‘any applicable’’.
136
SEC. 1209. EXPENSES RELATING TO CERTAIN INTER-
NATIONAL CLAIMS AND PROCEEDINGS.
(a) RECOVERY OF CERTAIN EXPENSES.—The De-
partment of State Appropriation Act of 1937 (49 Stat.
1321, 22 U.S.C. 2661) is amended in the fifth undesig-
nated paragraph under the heading entitled ‘‘INTER-
NATIONAL FISHERIES COMMISSION’’ by striking ‘‘extraor-
dinary’’.
(b) PROCUREMENT OF SERVICES.—Section 38(c) of
the State Department Basic Authorities Act of 1956 (22
U.S.C. 2710(c)) is amended in the first sentence by insert-
ing ‘‘personal and’’ before ‘‘other support services’’.
SEC. 1210. ESTABLISHMENT OF FEE ACCOUNT AND PROVID-
ING FOR PASSPORT INFORMATION SERVICES.
(a) DISPOSITION OF FEES.—Amounts collected by
the Department of State pursuant to section 281 of the
Immigration and Nationality Act (8 U.S.C. 1351), section
1 of the Passport Act of June 4, 1920 (22 U.S.C. 214),
section 16 of the Act of August 18, 1856 (22 U.S.C.
4219), and section 9701 of title 31, United States Code,
shall be deposited in a special fund of the Treasury.
(b) USE OF FUNDS.—Subject to subsections (d) and
(e), amounts collected and deposited in the special fund
in the Treasury pursuant to subsection (a) shall be avail-
able to the extent and in such amounts as are provided
137
in advance in appropriations Acts for the following pur-
poses:
(1) To pay all necessary expenses of the De-
partment of State and the Foreign Service, including
expenses authorized by the State Department Basic
Authorities Act of 1956.
(2) Representation to certain international or-
ganizations in which the United States participates
pursuant to treaties ratified pursuant to the advice
and consent of the Senate or specific Acts of Con-
gress.
(3) Acquisition by exchange or purchase of pas-
senger motor vehicles as authorized by section 1343
of title 31, United States Code, section 201(c) of the
Federal Property and Administrative Services Act of
1949 (40 U.S.C. 481(c)), and section 7 of the State
Department Basic Authorities Act (22 U.S.C. 2674).
(4) Expenses of general administration of the
Department of State.
(5) To carry out the Foreign Service Buildings
Act of 1926 (22 U.S.C. 292-300) and the Diplo-
matic Security Construction Program as authorized
by title IV of the Omnibus Diplomatic Security and
Antiterrorism Act of 1986 (22 U.S.C. 4851).
138
(c) AVAILABILITY
OF FUNDS.—Amounts collected
and deposited in the special fund pursuant to subsection
(a) are authorized to remain available until expended.
(d) LIMITATION.—For any fiscal year, any amount
deposited in the special fund under subsection (a) that ex-
ceeds $455,000,000 is authorized to be made available
only if a notification is submitted in compliance with the
procedures applicable to a reprogramming of funds under
section 34 of the State Department Basic Authorities Act
of 1956.
(e) PASSPORT INFORMATION SERVICES.—For each
of the fiscal years 1998 and 1999, $5,000,000 of the
amounts available in the fund shall be available only for
the purpose of providing passport information without
charge to citizens of the United States, including—
(1) information about who is eligible to receive
a United States passport and how and where to
apply;
(2) information about the status of pending ap-
plications; and
(3) names, addresses, and telephone numbers of
State and Federal officials who are authorized to
provide passport information in cooperation with the
Department of State.
139
SEC. 1211. ESTABLISHMENT OF MACHINE READABLE FEE
ACCOUNT.
Section 140(a) of the Foreign Relations Authoriza-
tion Act, Fiscal Years 1994 and 1995 (Public Law 103–
236) is amended—
(1) by redesignating paragraph (4) as para-
graph (6);
(2) by striking paragraph (5);
(3) by striking paragraphs (2) and (3) and in-
serting the following:
‘‘(2) Amounts collected under the authority of
paragraph (1) shall be deposited in a special fund of
the Treasury.
‘‘(3) Subject to paragraph (5), fees deposited in
the special fund pursuant to paragraph (2) shall be
available to the extent and in such amounts as are
provided in advance in appropriations Acts for costs
of the Department of State’s border security pro-
gram, including the costs of—
‘‘(A) installation and operation of the ma-
chine readable visa and automated name-check
process;
‘‘(B) improving the quality and security of
the United States passport;
‘‘(C) passport and visa fraud investiga-
tions; and
140
‘‘(D) the technological infrastructure to
support and operate the programs referred to in
subparagraphs (A) through (C).
‘‘(4) Amounts deposited pursuant to paragraph
(2) shall remain available for obligation until ex-
pended.
‘‘(5) For any fiscal year, any amount collected
pursuant to the authority of paragraph (1) that ex-
ceeds $140,000,000 is authorized to be made avail-
able only if a notification is submitted in compliance
with the procedures applicable to a reprogramming
of funds under section 34 of the State Department
Basic Authorities Act of 1956.’’.
SEC. 1212. RETENTION OF ADDITIONAL DEFENSE TRADE
CONTROLS REGISTRATION FEES.
Section 45(a) of the State Department Basic Au-
thorities Act of 1956 (22 U.S.C. 2717(a)) is amended—
(1) by striking ‘‘$700,000 of the’’ and inserting
‘‘all’’;
(2) at the end of paragraph (1) by striking
‘‘and’’;
(3) in paragraph (2)—
(A) by striking ‘‘functions’’ and inserting
‘‘functions, including compliance and enforce-
ment activities,’’; and
141
(B) by striking the period at the end and
inserting ‘‘; and’’; and
(4) by adding at the end the following new
paragraph (3):
‘‘(3) the enhancement of defense trade export
compliance and enforcement activities to include
compliance audits of United States and foreign par-
ties, the conduct of administrative proceedings, end-
use monitoring of direct commercial arms sales and
transfer, and cooperation in criminal proceedings re-
lated to defense trade export controls.’’.
SEC. 1213. TRAINING.
(a) INSTITUTE FOR TRAINING.—Section 701 of the
Foreign Service Act of 1980 (22 U.S.C. 4021) is amend-
ed—
(1) by redesignating subsection (d)(4) as sub-
section (g); and
(2) by inserting after paragraph (3) of sub-
section (d) the following new subsections:
‘‘(e)(1) The Secretary of State may, in the discretion
of the Secretary, provide appropriate training and related
services through the institution to employees of United
States companies engaged in business abroad, and to the
families of such employees.
142
‘‘(2) In the case of any company under contract to
provide services to the Department of State, the Secretary
of State is authorized to provide job-related training and
related services to any company employee who is perform-
ing such services.
‘‘(3) Training under this subsection shall be on a re-
imbursable or advance-of-funds basis. Such reimburse-
ments or advances shall be credited to the currently avail-
able applicable appropriation account.
‘‘(4) Training and related services under this sub-
section is authorized only to the extent that it will not
interfere with the institution’s primary mission of training
employees of the Department and of other agencies in the
field of foreign relations.
‘‘(f)(1) The Secretary of State is authorized to pro-
vide on a reimbursable basis training programs to Mem-
bers of Congress or the judiciary.
‘‘(2) Congressional staff members and employees of
the judiciary may participate on a reimbursable, space-
available basis in training programs offered by the institu-
tion.
‘‘(3) Reimbursements collected under this subsection
shall be credited to the currently available applicable ap-
propriation account.
143
‘‘(4) Training under this subsection is authorized
only to the extent that it will not interfere with the institu-
tion’s primary mission of training employees of the De-
partment of State and of other agencies in the field of
foreign relations.’’.
(b) FEES FOR USE OF NATIONAL FOREIGN AFFAIRS
TRAINING CENTER.—The State Department Basic Au-
thorities Act of 1956 (22 U.S.C. 2669 et seq.) is amended
by adding after section 52 the following new section:
‘‘SEC. 53. FEES FOR USE OF THE NATIONAL FOREIGN AF-
FAIRS TRAINING CENTER.
‘‘The Secretary is authorized to charge a fee for use
of the National Foreign Affairs Training Center Facility
of the Department of State. Funds collected under the au-
thority of this section, including reimbursements, sur-
charges, and fees, shall be deposited as an offsetting col-
lection to any Department of State appropriation to re-
cover the costs of such use and shall remain available for
obligation until expended.’’.
SEC. 1214. RECOVERY OF COSTS OF HEALTH CARE SERV-
ICES.
(a) AUTHORITIES.—Section 904 of the Foreign Serv-
ice Act of 1980 (22 U.S.C. 4084) is amended—
(1) in subsection (a)—
144
(A) by striking ‘‘and’’ after ‘‘employees,’’,
and
(B) by inserting before the period ‘‘, and
(for care provided abroad) such other persons
as are designated by the Secretary of State’’;
(2) in subsection (d), by inserting ‘‘, subject to
subsections (g) through (i)’’ before ‘‘the Secretary’’;
and
(3) by adding at the end the following new sub-
sections:
‘‘(g)(1)(A) In the case of a covered beneficiary who
is provided health care under this section and who is en-
rolled in a covered health benefits plan of a third-party
payer, the United States shall have the right to collect
from the third-party payer a reasonable charge amount
for the care to the extent that the payment would be made
under such plan for such care under the conditions speci-
fied in paragraph (2) if a claim were submitted by or on
behalf of the covered beneficiary.
‘‘(B) Such a covered beneficiary is not required to
pay any deductible, copayment, or other cost-sharing
under the covered health benefits plan or under this sec-
tion for health care provided under this section.
145
‘‘(2) With respect to health care provided under this
section to a covered beneficiary, for purposes of carrying
out paragraph (1)—
‘‘(A) the reasonable charge amount (as defined
in paragraph (9)(C)) shall be treated by the third-
party payer as the payment basis otherwise allowable
for the care under the plan;
‘‘(B) under regulations, if the covered health
benefits plan restricts or differentiates in benefit
payments based on whether a provider of health care
has a participation agreement with the third-party
payer, the Secretary shall be treated as having such
an agreement as results in the highest level of pay-
ment under this subsection;
‘‘(C) no provision of the health benefit plan
having the effect of excluding from coverage or limit-
ing payment of charges for certain care shall operate
to prevent collection under subsection (a), including
(but not limited to) any provision that limits cov-
erage or payment on the basis that—
‘‘(i) the care was provided outside the
United States,
‘‘(ii) the care was provided by a govern-
mental entity,
146
‘‘(iii) the covered beneficiary (or any other
person) has no obligation to pay for the care,
‘‘(iv) the provider of the care is not li-
censed to provide the care in the United States
or other location,
‘‘(v) a condition of coverage relating to uti-
lization review, prior authorization, or similar
utilization control has not been met, or
‘‘(vi) in the case that drugs were provided,
the provision of the drugs for any indicated
purpose has not been approved by the Federal
Food, Drug, and Cosmetic Administration;
‘‘(D) if the covered health benefits plan con-
tains a requirement for payment of a deductible, co-
payment, or similar cost-sharing by the bene-
ficiary—
‘‘(i) the beneficiary’s not having paid such
cost-sharing with respect to the care shall not
preclude collection under this section, and
‘‘(ii) the amount the United States may
collect under this section shall be reduced by
application of the appropriate cost-sharing;
‘‘(E) amounts that would be payable by the
third-party payer under this section but for the ap-
plication of a deductible under subparagraph (D)(ii)
147
shall be counted towards such deductible notwith-
standing that under paragraph (1)(B) the individual
is not charged for the care and did not pay an
amount towards such care; and
‘‘(F) the Secretary may apply such other provi-
sions as may be appropriate to carry out this section
in an equitable manner.
‘‘(3) In exercising authority under paragraph (1)—
‘‘(A) the United States shall be subrogated to
any right or claim that the covered beneficiary may
have against a third-party payer;
‘‘(B) the United States may institute and pros-
ecute legal proceedings against a third-party payer
to enforce a right of the United States under this
section; and
‘‘(C) the Secretary may compromise, settle, or
waive a claim of the United States under this sec-
tion.
‘‘(4) No law of any State, or of any political subdivi-
sion of a State, shall operate to prevent or hinder collec-
tion by the United States under this section.
‘‘(5) If collection is sought from a third-party payer
for health care furnished a covered beneficiary under this
section, under regulations medical records of the bene-
ficiary shall be made available for inspection and review
148
by representatives of the third-party payer for the sole
purpose of permitting the third-party payer to verify, con-
sistent with this subsection that—
‘‘(A) the care for which recovery or collection is
sought were furnished to the beneficiary; and
‘‘(B) except as otherwise provided in this sub-
section, the provision of such care to the beneficiary
meets criteria generally applicable under the covered
health benefits plan.
‘‘(6) The Secretary shall establish (and periodically
update) a schedule of reasonable charge amounts for
health care provided under this section. The amount under
such schedule for health care shall be based on charges
or fee schedule amounts recognized by third-party payers
under covered health benefits plans for payment purposes
for similar health care services furnished in the Metropoli-
tan Washington, District of Columbia, area.
‘‘(7) The Secretary shall establish a procedure under
which a covered beneficiary may elect to have subsection
(h) apply instead of this subsection with respect to some
or all health care provided to the beneficiary under this
section.
‘‘(8) Amounts collected under this subsection, under
subsection (h), or under any authority referred to in sub-
section (i), from a third-party payer or from any other
149
payer shall be deposited as an offsetting collection to any
Department of State appropriation and shall remain avail-
able until expended.
‘‘(9) For purposes of this section:
‘‘(A) The term ‘covered beneficiary’ means a
member or employee (or family member of such a
member of employee) described in subsection (a)
who is enrolled under a covered health benefits plan.
‘‘(B)(i) Subject to clause (ii), the term ‘covered
health benefits plan’ means a health benefits plan
offered under the Federal Employees Health Bene-
fits Program under chapter 89 of title 5, United
States Code.
‘‘(ii) Such term does not include such a health
benefits plan (such as a plan of a staff-model health
maintenance organization) as the Secretary deter-
mines pursuant to regulations to be structured in a
manner that impedes the application of this sub-
section to individuals enrolled under the plan. To the
extent practicable, the Secretary shall seek to dis-
seminate to members of the Service and designated
employees described in subsection (a) who are eligi-
ble to receive health care under this section the
names of plans excluded under this clause.
150
‘‘(C) The term ‘reasonable charge amount’
means, with respect to health care provided under
this section, the amount for such care specified in
the schedule established under paragraph (6).
‘‘(D) The term ‘third-party payer’ means an en-
tity that offers a covered health benefits plan.
‘‘(h)(1) In the case of an individual who—
‘‘(A) receives health care pursuant to this sec-
tion; and
‘‘(B)(i) is not a covered beneficiary (including
by virtue of enrollment only in a health benefits plan
excluded under subsection (g)(9)(B)(ii)), or
‘‘(ii) is such a covered beneficiary and has made
an election described in subsection (g)(6) with re-
spect to such care,
the Secretary is authorized to collect from the individual
the full reasonable charge amount for such care.
‘‘(2) The United States shall have the same rights
against such individuals with respect to collection of such
amounts as the United States has with respect to collec-
tion of amounts against a third-party payer under sub-
section (g), except that the rights under this subsection
shall be exercised without regard to any rules for
deductibles, coinsurance, or other cost-sharing.
151
‘‘(i) Subsections (g) and (h) shall apply to reimburse-
ment for the cost of hospitalization and related outpatient
expenses paid for under subsection (d) only to the extent
provided in regulations. Nothing in this subsection, or sub-
sections (g) and (h), shall be construed as limiting any
authority the Secretary otherwise has with respect to ob-
taining reimbursement for the payments made under sub-
section (d).’’.
(b) EFFECTIVE DATE.—(1) The amendments made
by subsection (a) shall apply to items and services pro-
vided on and after the first day of the first month that
begins more than 1 year after the date of the enactment
of this Act.
(2) In order to carry out such amendments in a time-
ly manner, the Secretary of State is authorized to issue
interim, final regulations that take effect pending notice
and opportunity for public comment.
SEC. 1215. FEE FOR USE OF DIPLOMATIC RECEPTION
ROOMS.
The State Department Basic Authorities Act of 1956
(22 U.S.C. 2651a et seq.) is amended by adding after sec-
tion 53 (as added by section 213(b)) the following new
section:
152
‘‘SEC. 54. FEE FOR USE OF DIPLOMATIC RECEPTION
ROOMS.
‘‘The Secretary of State is authorized to charge a fee
for use of the diplomatic reception rooms of the Depart-
ment of State. Amounts collected under the authority of
this section (including any reimbursements and sur-
charges) shall be deposited as an offsetting collection to
any Department of State appropriation to recover the
costs of such use and shall remain available for obligation
until expended.’’.
SEC. 1216. FEES FOR COMMERCIAL SERVICES.
Section 52 of the State Department Basic Authorities
Act of 1956 (22 U.S.C. 2724) is amended in subsection
(b) by adding at the end the following: ‘‘Funds deposited
under this subsection shall remain available for obligation
until expended.’’.
SEC. 1217. CONCERNING THE USE OF FUNDS TO FURTHER
NORMALIZE RELATIONS WITH VIETNAM.
(a) IN GENERAL.—Unless the President provides the
certification described in subsection (b), none of the funds
authorized to be appropriated or otherwise made available
by this division may be obligated or expended to pay for
any cost incurred for—
(1) opening or operating any United States dip-
lomatic or consular post in the Socialist Republic of
153
Vietnam that was not operating on the date of en-
actment of this Act;
(2) expanding any United States diplomatic or
consular post in the Socialist Republic of Vietnam;
or
(3) increasing the total number of personnel as-
signed in United States diplomatic or consular posts
in the Socialist Republic of Vietnam above the levels
existing on the date of enactment of this Act.
(b) CERTIFICATION.—Not less than 60 days prior to
any obligation or expenditure of funds under subsection
(a), the President submits a certification to the appro-
priate congressional committees that—
(1) the Government of the Socialist Republic of
Vietnam is fully cooperating with the United States
in providing the fullest possible accounting of all un-
resolved POW/MIA cases and the recovery and repa-
triation of American remains;
(2) the Government of the Socialist Republic of
Vietnam has made substantial progress toward the
release of all political and religious prisoners, includ-
ing Catholic, Protestant, and Buddhist clergy;
(3) the Government of the Socialist Republic of
Vietnam is fully cooperating with requests by the
United States to obtain full and free access to per-
154
sons of humanitarian interest to the United States
for interviews under the Orderly Departure (ODP)
and Resettlement Opportunities for Vietnamese Ref-
ugees (ROVR) programs and in providing exit visas
for such persons;
(4) The Government of the Socialist Republic of
Vietnam has taken vigorous action to end extortion,
bribery, and other corrupt practices in connection
with exit visas; and
(5) the Government of the United States is
making vigorous efforts to interview and resettle
former re-education camp victims, their immediate
families (including unmarried sons and daughters),
former United States Government employees, and
other persons eligible for the ODP program, and to
give such persons the full benefit of all applicable
United States laws including sections 599D and
599E of the Foreign Operations, Export Financing,
and Related Programs Appropriations Act of 1990
(Public Law 101–167) and will continue to make
such efforts during the time for which such funds
are made available.
155
SEC. 1218. EXTENSION OF CERTAIN ADJUDICATION PROVI-
SIONS.
The Foreign Operations, Export Financing, and Re-
lated Programs Appropriations Act, 1990 (Public Law
101–167) is amended—
(1) in section 599D (8 U.S.C. 1157 note)—
(A) in subsection (b)(3), by striking ‘‘and
1997’’ and inserting ‘‘1997, 1998, and 1999’’;
and
(B) in subsection (e), by striking ‘‘October
1, 1997’’ each place it appears and inserting
‘‘October 1, 1999’’; and
(2) in section 599E (8 U.S.C. 1255 note) in
subsection (b)(2), by striking ‘‘September 30, 1997’’
and inserting ‘‘September 30, 1999’’.
SEC. 1219. GRANTS TO OVERSEAS EDUCATIONAL FACILI-
TIES.
Section 29 of the State Department Basic Authorities
Act of 1956 (22 U.S.C. 2701) is amended by adding at
the end the following: ‘‘Notwithstanding any other provi-
sion of law, where the children of United States citizen
employees of an agency of the United States Government
who are stationed outside the United States attend edu-
cational facilities assisted by the Department of State
under this section, such agency is authorized make grants
to, or otherwise to reimburse or credit with advance pay-
156
ment, the Department of State for funds used in providing
assistance to such educational facilities.’’.
SEC. 1220. GRANTS TO REMEDY INTERNATIONAL CHILD AB-
DUCTIONS.
(a) GRANT AUTHORITY.—Section 7 of the Inter-
national Child Abduction Remedies Act (42 U.S.C. 11606;
Public Law 100-300) is amended by adding at the end
the following new subsection:
‘‘(e) 
GRANT
AUTHORITY.—The 
United 
States
Central Authority is authorized to make grants to, or
enter into contracts or agreements with, any individual,
corporation, other Federal, State, or local agency, or pri-
vate entity or organization in the United States for pur-
poses of accomplishing its responsibilities under the con-
vention and this Act.’’.
SEC. 1221. BUDGET PRESENTATION DOCUMENTS.
The Secretary of State shall include in the annual
Congressional Presentation Document and the Budget in
Brief, a detailed accounting of the total collections re-
ceived by the Department of State from all sources, in-
cluding fee collections. Reporting on total collections shall
also include the previous year’s collection and the pro-
jected expeditures from all collections accounts.
157
CHAPTER 2—CONSULAR AUTHORITIES OF
THE DEPARTMENT OF STATE
SEC. 1241. USE OF CERTAIN PASSPORT PROCESSING FEES
FOR ENHANCED PASSPORT SERVICES.
For each of the fiscal years 1998 and 1999, of the
fees collected for expedited passport processing and depos-
ited to an offsetting collection pursuant to the Department
of State and Related Agencies Appropriations Act for Fis-
cal Year 1995 (Public Law 103–317; 22 U.S.C. 214), 30
percent shall be available only for enhancing passport
services for United States citizens, improving the integrity
and efficiency of the passport issuance process, improving
the secure nature of the United States passport, inves-
tigating passport fraud, and deterring entry into the Unit-
ed States by terrorists, drug traffickers, or other crimi-
nals.
SEC. 1242. CONSULAR OFFICERS.
(a) PERSONS AUTHORIZED TO ISSUE REPORTS OF
BIRTH ABROAD.—Section 33 of the State Department
Basic Authorities Act of 1956 (22 U.S.C. 2705) is amend-
ed in paragraph (2) by inserting ‘‘(or any United States
citizen employee of the Department of State designated
by the Secretary of State to adjudicate nationality abroad
pursuant to such regulations as the Secretary may pre-
scribe)’’ after ‘‘consular officer’’.
158
(b) PROVISIONS APPLICABLE TO CONSULAR OFFI-
CERS.—Section 31 of the Act of August 18, 1856 (Rev.
Stat. 1689, 22 U.S.C. 4191), is amended by inserting
‘‘and to such other United States citizen employees of the
Department of State as may be designated by the Sec-
retary of State pursuant to such regulations as the Sec-
retary may prescribe’’ after ‘‘such officers’’.
(c) PERSONS AUTHORIZED TO AUTHENTICATE FOR-
EIGN DOCUMENTS—Section 3492(c) of title 18, United
States Code, is amended by adding at the end the follow-
ing: ‘‘For purposes of this section and sections 3493
through 3496 of this title, a consular officer shall include
any United States citizen employee of the Department of
State designated to perform notarial functions pursuant
to section 24 of the Act of August 18, 1856 (Rev. Stat.
1750, 22 U.S.C. 4221).
(d) 
PERSONS
AUTHORIZED
TO
ADMINISTER
OATHS.—Section 115 of title 35, United States Code, is
amended by adding at the end the following: ‘‘For pur-
poses of this section a consular officer shall include any
United States citizen employee of the Department of State
designated to perform notarial functions pursuant to sec-
tion 24 of the Act of August 18, 1856 (Rev. Stat. 1750,
22 U.S.C. 4221).
159
SEC. 1243. REPEAL OF OUTDATED CONSULAR RECEIPT RE-
QUIREMENTS.
Sections 1726, 1727, and 1728 of the Revised Stat-
utes of the United States (22 U.S.C. 4212, 4213, and
4214) (concerning accounting for consular fees) are re-
pealed.
SEC. 1244. ELIMINATION OF DUPLICATE PUBLICATION RE-
QUIREMENTS.
(a) FEDERAL REGISTER PUBLICATION OF TRAVEL
ADVISORIES.—Section 44908(a) of title 49, United States
Code, is amended—
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as para-
graph (2).
(b) PUBLICATION IN THE FEDERAL REGISTER OF
TRAVEL ADVISORIES CONCERNING SECURITY AT FOR-
EIGN PORTS.—Section 908(a) of the International Mari-
time and Port Security Act of 1986 (Public Law 99–399;
100 Stat. 891; 46 U.S.C. App. 1804(a)) is amended by
striking the second sentence.
CHAPTER 3—REFUGEES AND MIGRATION
SEC. 1261. REPORT TO CONGRESS CONCERNING CUBAN
EMIGRATION POLICIES.
Beginning 3 months after the date of the enactment
of this Act and every subsequent 6 months, the Secretary
of State shall include in the monthly report to Congress
160
entitled ‘‘Update on Monitoring of Cuban Migrant Return-
ees’’ additional information concerning the methods em-
ployed by the Government of Cuba to enforce the United
States-Cuba agreement of September 1994 to restrict the
emigration of the Cuban people from Cuba to the United
States and the treatment by the Government of Cuba of
persons who have returned to Cuba pursuant to the Unit-
ed States-Cuba agreement of May 1995.
SEC. 1262. REPROGRAMMING OF MIGRATION AND REFU-
GEE ASSISTANCE FUNDS.
Section 34 of the State Department Basic Authorities
Act of 1956 (22 U.S.C. 2706) is amended by adding at
the end the following new subsection:
‘‘(c) EMERGENCY WAIVER
OF NOTIFICATION RE-
QUIREMENT.—The Secretary of State may waive the noti-
fication requirement of subsection (a), if the Secretary de-
termines that failure to do so would pose a substantial
risk to human health or welfare. In the case of any waiver
under this subsection, notification to the appropriate con-
gressional committees shall be provided as soon as prac-
ticable, but not later than 3 days after taking the action
to which the notification requirement was applicable, and
shall contain an explanation of the emergency cir-
cumstances.’’.
161
TITLE XIII—ORGANIZATION OF
THE DEPARTMENT OF STATE;
DEPARTMENT OF STATE PER-
SONNEL; THE FOREIGN SERV-
ICE
CHAPTER 1—ORGANIZATION OF THE
DEPARTMENT OF STATE
SEC. 1301. COORDINATOR FOR COUNTERTERRORISM.
(a) ESTABLISHMENT.—Section 1(e) of the State De-
partment Basic Authorities Act of 1956 (22 U.S.C.
2651a(e)) is amended—
(1) by striking ‘‘In’’ and inserting the following:
‘‘(1) In’’; and
(2) by inserting at the end the following:
‘‘(2) 
COORDINATOR
FOR
COUNTERTERRORISM.—
‘‘(A) There shall be within the office of the
Secretary 
of 
State 
a 
Coordinator 
for
Counterterrorism (hereafter in this paragraph
referred to as the ‘Coordinator’) who shall be
appointed by the President, by and with the ad-
vice and consent of the Senate.
‘‘(B)(i) The Coordinator shall perform
such duties and exercise such power as the Sec-
retary of State shall prescribe.
162
‘‘(ii) The principal duty of the Coordinator
shall be the overall supervision (including policy
oversight 
of 
resources) 
of 
international
counterterrorism activities. The Coordinator
shall be the principal adviser to the Secretary
of State on international counterterrorism mat-
ters. The Coordinator shall be the principal
counterterrorism official within the senior man-
agement of the Department of State and shall
report directly to the Secretary of State.
‘‘(C) The Coordinator shall have the rank
and status of Ambassador-at-Large. The Coor-
dinator shall be compensated at the annual rate
of basic pay in effect for a position at level IV
of the Executive Schedule under section 5314
of title 5, United States Code, or, if the Coordi-
nator is appointed from the Foreign Service,
the annual rate of pay which the individual last
received under the Foreign Service Schedule,
whichever is greater.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
Section 161 of the Foreign Relations Authorization Act,
Fiscal Years 1994 and 1995 (Public Law 103–236) is
amended by striking subsection (e).
163
(c) TRANSITION PROVISION.—The individual serving
as Coordinator for Counterterrorism of the Department
of State on the day before the effective date of this division
may continue to serve in that position.
SEC. 1302. ELIMINATION OF STATUTORY ESTABLISHMENT
OF CERTAIN POSITIONS OF THE DEPART-
MENT OF STATE.
(a) ASSISTANT SECRETARY OF STATE FOR SOUTH
ASIAN AFFAIRS.—Section 122 of the Foreign Relations
Authorization Act, Fiscal Years 1992 and 1993 (22
U.S.C. 2652b) is repealed.
(b) DEPUTY ASSISTANT SECRETARY OF STATE FOR
BURDENSHARING.—Section 161 of the Foreign Relations
Authorization Act, Fiscal Years 1994 and 1995 (22
U.S.C. 2651a note) is amended by striking subsection (f).
(c) ASSISTANT SECRETARY FOR OCEANS AND INTER-
NATIONAL ENVIRONMENTAL AND SCIENTIFIC AFFAIRS.—
Section 9 of the Department of State Appropriations Au-
thorization Act of 1973 (22 U.S.C. 2655a) is repealed.
SEC. 1303. ESTABLISHMENT OF ASSISTANT SECRETARY OF
STATE FOR HUMAN RESOURCES.
Section 1(c) of the State Department Basic Authori-
ties Act of 1956 (22 U.S.C. 2651a(c)) is amended by add-
ing after paragraph (2) the following new paragraph:
164
‘‘(3) ASSISTANT SECRETARY FOR HUMAN RE-
SOURCES.—There shall be in the Department of
State an Assistant Secretary for Human Resources
who shall be responsible to the Secretary of State
for matters relating to human resources including
the implementation of personnel policies and pro-
grams within the Department of State and inter-
national affairs functions and activities carried out
through the Department of State. The Assistant
Secretary shall have substantial professional quali-
fications in the field of human resource policy and
management.’’.
SEC. 1304. ESTABLISHMENT OF ASSISTANT SECRETARY OF
STATE FOR DIPLOMATIC SECURITY.
Section 1(c) of the State Department Basic Authori-
ties Act of 1956 (22 U.S.C. 2651a(c)) as amended by sec-
tion 1303 is further amended by adding after paragraph
(3) the following new paragraph:
‘‘(4) ASSISTANT SECRETARY FOR DIPLOMATIC
SECURITY.—There shall be in the Department of
State an Assistant Secretary for Diplomatic Security
who shall be responsible to the Secretary of State
for matters relating to diplomatic security. The As-
sistant Secretary shall have substantial professional
165
qualifications in the field of Federal law enforce-
ment, intelligence, or security.’’.
SEC. 1305. SPECIAL ENVOY FOR TIBET.
(a) UNITED STATES SPECIAL ENVOY FOR TIBET.—
The President should appoint within the Department of
State a United States Special Envoy for Tibet, who shall
hold office at the pleasure of the President.
(b) RANK.—A United States Special Envoy for Tibet
appointed under subsection (a) shall have the personal
rank of ambassador and shall be appointed by and with
the advice and consent of the Senate.
(c) SPECIAL FUNCTIONS.—The United States Special
Envoy for Tibet should be authorized and encouraged—
(1) to promote substantive negotiations between
the Dalai Lama or his representatives and senior
members of the Government of the People’s Republic
of China;
(2) to promote good relations between the Dalai
Lama and his representatives and the United States
Government, including meeting with members or
representatives of the Tibetan government-in-exile;
and
(3) to travel regularly throughout Tibet and Ti-
betan refugee settlements.
166
(d) DUTIES
AND RESPONSIBILITIES.—The United
States Special Envoy for Tibet should—
(1) consult with the Congress on policies rel-
evant to Tibet and the future and welfare of all Ti-
betan people;
(2) coordinate United States Government poli-
cies, programs, and projects concerning Tibet; and
(3) report to the Secretary of State regarding
the matters described in section 536(a)(2) of the
Foreign Relations Authorization Act, Fiscal Years
1994 and 1995 (Public Law 103–236).
SEC. 1306. RESPONSIBILITIES FOR BUREAU CHARGED WITH
REFUGEE ASSISTANCE.
The Bureau of Migration and Refugee Assistance
shall be the bureau within the Department of State with
principal responsibility for assisting the Secretary in car-
rying out the Migration and Refugee Assistance Act of
1962 and shall not be charged with responsibility for as-
sisting the Secretary in matters relating to family plan-
ning or population policy.
167
CHAPTER 2—PERSONNEL OF THE DE-
PARTMENT OF STATE; THE FOREIGN
SERVICE
SEC. 1321. AUTHORIZED STRENGTH OF THE FOREIGN SERV-
ICE.
(a) END FISCAL YEAR 1998 LEVELS.—The number
of members of the Foreign Service authorized to be em-
ployed as of September 30, 1998—
(1) for the Department of State, shall not ex-
ceed 8,000, of whom not more than 750 shall be
members of the Senior Foreign Service;
(2) for the United States Information Agency,
shall not exceed 1,000, of whom not more than 140
shall be members of the Senior Foreign Service; and
(3) for the Agency for International Develop-
ment, not to exceed 1070, of whom not more than
140 shall be members of the Senior Foreign Service.
(b) END FISCAL YEAR 1999 LEVELS.—The number
of members of the Foreign Service authorized to be em-
ployed as of September 30, 1999—
(1) for the Department of State, shall not ex-
ceed 8,000, of whom not more than 750 shall be
members of the Senior Foreign Service;
168
(2) for the United States Information Agency,
not to exceed 1,000 of whom not more than 140
shall be members of the Senior Foreign Service; and
(3) for the Agency for International Develop-
ment, not to exceed 1065 of whom not more than
135 shall be members of the Senior Foreign Service.
(c) DEFINITION.—For the purposes of this section,
the term ‘‘members of the Foreign Service’’ is used within
the meaning of such term under section 103 of the For-
eign Service Act of 1980 (22 U.S.C 3903), except that
such term does not include—
(1) members of the Service under paragraphs
(6) and (7) of such section;
(2) members of the Service serving under tem-
porary resident appointments abroad;
(3) members of the Service employed on less
than a full-time basis;
(4) members of the Service subject to involun-
tary separation in cases in which such separation
has been suspended pursuant to section 1106(8) of
the Foreign Service Act of 1980; and
(5) members of the Service serving under non-
career limited appointments.
(d) WAIVER AUTHORITY.—(1) Subject to paragraph
(2), the President may waive any limitation under sub-
169
section (a) or (b) to the extent that such waiver is nec-
essary to carry on the foreign affairs functions of the
United States.
(2) Not less than 15 days before the President exer-
cises a waiver under paragraph (1), such agency head
shall notify the Chairman of the Committee on Foreign
Relations of the Senate and the Chairman of the Commit-
tee on International Relations of the House of Representa-
tives. Such notice shall include an explanation of the cir-
cumstances and necessity for such waiver.
SEC. 1322. NONOVERTIME DIFFERENTIAL PAY.
Title 5 of the United States Code is amended—
(1) in section 5544(a), by inserting after the
fourth sentence the following new sentence: ‘‘For
employees serving outside the United States in areas
where Sunday is a routine workday and another day
of the week is officially recognized as the day of rest
and worship, the Secretary of State may designate
the officially recognized day of rest and worship as
the day with respect to which the preceding sentence
shall apply instead of Sunday.’’; and
(2) at the end of section 5546(a), by adding the
following new sentence: ‘‘For employees serving out-
side the United States in areas where Sunday is a
routine workday and another day of the week is offi-
170
cially recognized as the day of rest and worship, the
Secretary of State may designate the officially recog-
nized day of rest and worship as the day with re-
spect to which the preceding sentence shall apply in-
stead of Sunday.’’.
SEC. 1323. AUTHORITY OF SECRETARY TO SEPARATE CON-
VICTED FELONS FROM SERVICE.
Section 610(a)(2) of the Foreign Service Act of 1980
(22 U.S.C. 4010(a)(2)) is amended in the first sentence
by striking ‘‘A member’’ and inserting ‘‘Except in the case
of an individual who has been convicted of a crime for
which a sentence of imprisonment of more than 1 year
may be imposed, a member’’.
SEC. 1324. CAREER COUNSELING.
(a) IN GENERAL.—Section 706(a) of the Foreign
Service Act of 1980 (22 U.S.C. 4026(a)) is amended by
adding at the end the following sentence: ‘‘Career counsel-
ing and related services provided pursuant to this Act shall
not be construed to permit an assignment to training or
to another assignment that consists primarily of paid time
to conduct a job search and without other substantive du-
ties, except that career members of the Service who upon
their separation are not eligible to receive an immediate
annuity and have not been assigned to a post in the Unit-
ed States during the 12 months prior to their separation
171
from the Service may be permitted up to 2 months of paid
time to conduct a job search.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall be effective 180 days after the date
of the enactment of this Act.
SEC. 1325. REPORT CONCERNING MINORITIES AND THE
FOREIGN SERVICE.
The Secretary of State shall annually submit a report
to the Congress concerning minorities and the Foreign
Service officer corps. In addition to such other information
as is relevant to this issue, the report shall include the
following data (reported in terms of real numbers and per-
centages and not as ratios):
(1) The numbers and percentages of all minori-
ties taking the written foreign service examination.
(2) The numbers and percentages of all minori-
ties successfully completing and passing the written
foreign service examination.
(3) The numbers and percentages of all minori-
ties successfully completing and passing the oral for-
eign service examination.
(4) The numbers and percentages of all minori-
ties entering the junior officers class of the Foreign
Service.
172
(5) The numbers and percentages of all minori-
ties in the Foreign Service officer corps.
(6) The numbers and percentages of all minor-
ity Foreign Service officers at each grade, particu-
larly at the senior levels in policy directive positions.
(7) The numbers of and percentages of minori-
ties promoted at each grade of the Foreign Service
officer corps.
SEC. 1326. RETIREMENT BENEFITS FOR INVOLUNTARY SEP-
ARATION.
(a) BENEFITS.—Section 609 of the Foreign Service
Act of 1980 (22 U.S.C. 4009) is amended—
(1) in subsection (a)(2)(A) by inserting ‘‘or any
other applicable provision of chapter 84 of title 5,
United States Code,’’ after ‘‘section 811,’’;
(2) in subsection (a) by inserting ‘‘or section
855, as appropriate’’ after ‘‘section 806’’; and
(3) in subsection (b)(2)—
(A) by inserting ‘‘(A) for those partici-
pants in the Foreign Service Retirement and
Disability System,’’ before ‘‘a refund’’; and
(B) by inserting before the period at the
end ‘‘; and (B) for those participants in the
Foreign Service Pension System, benefits as
provided in section 851’’; and
173
(C) by inserting ‘‘(for participants in the
Foreign Service Retirement and Disability Sys-
tem) or age 62 (for participants in the Foreign
Service Pension System)’’ after ‘‘age 60’’.
(b) ENTITLEMENT TO ANNUITY.—Section 855(b) of
the Foreign Service Act of 1980 (22 U.S.C. 4071d(b)) is
amended—
(1) in paragraph (1) by inserting ‘‘611,’’ after
‘‘608,’’;
(2) in paragraph (1) by inserting ‘‘and for par-
ticipants in the Foreign Service Pension System’’
after ‘‘for participants in the Foreign Service Retire-
ment and Disability System’’; and
(3) in paragraph (3) by striking ‘‘or 610’’ and
inserting ‘‘610, or 611’’.
(c) EFFECTIVE DATES.—
(1) Except as provided in paragraph (2), the amend-
ments made by this section shall take effect on the date
of the enactment of this Act.
(2) The amendments made by paragraphs (2) and (3)
of subsection (a) and paragraphs (1) and (3) of subsection
(b) shall apply with respect to any actions taken under
section 611 of the Foreign Service Act of 1980 after Janu-
ary 1, 1996.
174
SEC. 1327. AVAILABILITY PAY FOR CERTAIN CRIMINAL IN-
VESTIGATORS WITHIN THE DIPLOMATIC SE-
CURITY SERVICE.
(a) IN GENERAL.—Section 5545a of title 5, United
States Code, is amended by adding at the end the follow-
ing:
‘‘(k)(1) For purposes of this section, the term ‘crimi-
nal investigator’ includes an officer occupying a position
under title II of Public Law 99–399 if—
‘‘(A) subject to subparagraph (C), such officer
meets the definition of such term under paragraph
(2) of subsection (a) (applied disregarding the par-
enthetical matter before subparagraph (A) thereof);
‘‘(B) the primary duties of the position held by
such officer consist of performing—
‘‘(i) protective functions; or
‘‘(ii) criminal investigations; and
‘‘(C) such officer satisfies the requirements of
subsection (d) without taking into account any hours
described in paragraph (2)(B) thereof.
‘‘(2) In applying subsection (h) with respect to an
officer under this subsection—
‘‘(A) any reference in such subsection to ‘basic
pay’ shall be considered to include amounts des-
ignated as ‘salary’;
175
‘‘(B) paragraph (2)(A) of such subsection shall
be considered to include (in addition to the provi-
sions of law specified therein) sections 609(b)(1),
805, 806, and 856 of the Foreign Service Act of
1980; and
‘‘(C) paragraph (2)(B) of such subsection shall
be applied by substituting for ‘Office of Personnel
Management’ the following: ‘Office of Personnel
Management or the Secretary of State (to the extent
that matters exclusively within the jurisdiction of the
Secretary are concerned)’.’’.
(b) IMPLEMENTATION.—Not later than the date on
which the amendments made by this section take effect,
each special agent of the Diplomatic Security Service who
satisfies the requirements of subsection (k)(1) of section
5545a of title 5, United States Code, as amended by this
section, and the appropriate supervisory officer, to be des-
ignated by the Secretary of State, shall make an initial
certification to the Secretary of State that the special
agent is expected to meet the requirements of subsection
(d) of such section 5545a. The Secretary of State may
prescribe procedures necessary to administer this sub-
section.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Paragraph (2) of section 5545a(a) of title 5, United
176
States Code, is amended (in the matter before subpara-
graph (A)) by striking ‘‘Public Law 99–399)’’ and insert-
ing ‘‘Public Law 99–399, subject to subsection (k))’’.
(2) Section 5542(e) of such title is amended by strik-
ing ‘‘title 18, United States Code,’’ and inserting ‘‘title
18 or section 37(a)(3) of the State Department Basic Au-
thorities Act of 1956,’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the first day of the first
applicable pay period—
(1) which begins on or after the 90th day fol-
lowing the date of the enactment of this Act; and
(2) on which date all regulations necessary to
carry out such amendments are (in the judgment of
the Director of the Office of Personnel Management
and the Secretary of State) in effect.
TITLE 
XIV—UNITED 
STATES
PUBLIC 
DIPLOMACY: 
AU-
THORITIES AND ACTIVITIES
FOR UNITED STATES INFOR-
MATIONAL, 
EDUCATIONAL,
AND CULTURAL PROGRAMS
SEC. 1401. EXTENSION OF AU PAIR PROGRAMS.
Section 1(b) of the Act entitled ‘‘An Act to extend
au pair programs.’’ (Public Law 104–72; 109 Stat.
177
1065(b)) is amended by striking ‘‘, through fiscal year
1997’’.
SEC. 1402. RETENTION OF INTEREST.
Notwithstanding any other provision of law, with the
approval of the National Endowment for Democracy,
grant funds made available by the National Endowment
for Democracy may be deposited in interest-bearing ac-
counts pending disbursement and any interest which ac-
crues may be retained by the grantee without returning
such interest to the Treasury of the United States and
interest earned by be obligated and expended for the pur-
poses for which the grant was made without further ap-
propriation.
SEC. 1403. CENTER FOR CULTURAL AND TECHNICAL INTER-
CHANGE BETWEEN NORTH AND SOUTH.
Section 208(e) of the Foreign Relations Authoriza-
tion Act, Fiscal Years 1992 and 1993 (22 U.S.C. 2075(e))
is amended by striking ‘‘$10,000,000’’ and inserting
‘‘$4,000,000’’.
SEC. 1404. USE OF SELECTED PROGRAM FEES.
Section 810 of the United States Information and
Educational Exchange Act of 1948 (22 U.S.C. 1475e) is
amended by inserting ‘‘educational advising and counsel-
ing, exchange visitor program services, advertising sold by
the Voice of America, receipts from cooperating inter-
178
national organizations and from the privatization of VOA
Europe,’’ after ‘‘library services,’’.
SEC. 1405. MUSKIE FELLOWSHIP PROGRAM.
(a) GUIDELINES .—Section 227(c)(5) of the Foreign
Relations Authorization Act, Fiscal Years 1992 and 1993
(22 U.S.C. 2452 note) is amended—
(1) in the first sentence by inserting ‘‘journal-
ism and communications, education administration,
public policy, library and information science,’’ after
‘‘business administration,’’; and
(2) in the second sentence by inserting ‘‘jour-
nalism and communications, education administra-
tion, public policy, library and information science,’’
after ‘‘business administration,’’.
(b) REDESIGNATION
OF SOVIET UNION.—Section
227 of the Foreign Relations Authorization Act, Fiscal
Years 1992 and 1993 (22 U.S.C. 2452 note) is amend-
ed—
(1) by striking ‘‘Soviet Union’’ each place it ap-
pears and inserting ‘‘Independent States of the
Former Soviet Union’’; and
(2) in the section heading by inserting ‘‘INDE-
PENDENT STATES OF THE FORMER’’ after
‘‘FROM THE’’.
179
SEC. 1406. WORKING GROUP ON UNITED STATES GOVERN-
MENT 
SPONSORED 
INTERNATIONAL 
EX-
CHANGES AND TRAINING.
Section 112 of the Mutual Educational and Cultural
Exchange Act of 1961 (22 U.S.C. 2460) is amended by
adding at the end the following new subsection:
‘‘(g) WORKING GROUP ON UNITED STATES GOVERN-
MENT SPONSORED INTERNATIONAL EXCHANGES
AND
TRAINING.—(1) In order to carry out the purposes of sub-
section (f) and to improve the coordination, efficiency, and
effectiveness of United States Government sponsored
international exchanges and training, there is established
within the United States Information Agency a senior-
level interagency working group to be known as the Work-
ing Group on United States Government Sponsored Inter-
national Exchanges and Training (hereinafter in this sec-
tion referred to as ‘‘the Working Group’’).
‘‘(2) For purposes of this subsection, the term ‘Gov-
ernment sponsored international exchanges and training’
means the movement of people between countries to pro-
mote the sharing of ideas, to develop skills, and to foster
mutual understanding and cooperation, financed wholly or
in part, directly or indirectly, with United States Govern-
ment funds.
‘‘(3) The Working Group shall be composed as fol-
lows:
180
‘‘(A) The Associate Director for Educational
and Cultural Affairs of the United States Informa-
tion Agency, who shall act as Chair.
‘‘(B) A senior representative designated by the
Secretary of State.
‘‘(C) A senior representative designated by the
Secretary of Defense.
‘‘(D) A senior representative designated by the
Secretary of Education.
‘‘(E) A senior representative designated by the
Attorney General.
‘‘(F) A senior representative designated by the
Administrator of the Agency for International Devel-
opment.
‘‘(G) Senior representatives of other depart-
ments and agencies as the Chair determines to be
appropriate.
‘‘(4) Representatives of the National Security Adviser
and the Director of the Office of Management and Budget
may participate in the Working Group at the discretion
of the adviser and the director, respectively.
‘‘(5) The Working Group shall be supported by an
interagency staff office established in the Bureau of Edu-
cational and Cultural Affairs of the United States Infor-
mation Agency.
181
‘‘(6) The Working Group shall have the following
purposes and responsibilities:
‘‘(A) To collect, analyze, and report data pro-
vided by all United States Government departments
and agencies conducting international exchanges and
training programs.
‘‘(B) To promote greater understanding and co-
operation among concerned United States Govern-
ment departments and agencies of common issues
and challenges in conducting international exchanges
and training programs, including through the estab-
lishment of a clearinghouse for information on inter-
national exchange and training activities in the gov-
ernmental and nongovernmental sectors.
‘‘(C) In order to achieve the most efficient and
cost-effective use of Federal resources, to identify
administrative and programmatic duplication and
overlap of activities by the various United States
Government departments and agencies involved in
Government sponsored international exchange and
training programs, and to report thereon.
‘‘(D) Not later than 1 year after the date of the
enactment of the Foreign Relations Authorization
Act, Fiscal Years 1998 and 1999, to develop and
thereafter assess, annually, a coordinated strategy
182
for all United States Government sponsored inter-
national exchange and training programs, and to
issue a report on such strategy.
‘‘(E) Not later than 2 years after the date of
the enactment of the Foreign Relations Authoriza-
tion Act, Fiscal Years 1998 and 1999, to develop
recommendations on common performance measures
for all United States Government sponsored inter-
national exchange and training programs, and to
issue a report.
‘‘(F) To develop strategies for expanding public
and private partnerships in, and leveraging private
sector support for, United States Government spon-
sored international exchange and training activities.
‘‘(7) All reports prepared by the Working Group shall
be submitted to the President, through the Director of the
United States Information Agency.
‘‘(8) The Working Group shall meet at least on a
quarterly basis.
‘‘(9) All decisions of the Working Group shall be by
majority vote of the members present and voting.
‘‘(10) The members of the Working Group shall serve
without additional compensation for their service on the
Working Group. Any expenses incurred by a member of
the Working Group in connection with service on the
183
Working Group shall be compensated by that member’s
department or agency.
‘‘(11) With respect to any report promulgated pursu-
ant to paragraph (6), a member may submit dissenting
views to be submitted as part of the report of the Working
Group.’’.
SEC. 1407. EDUCATIONAL AND CULTURAL EXCHANGES AND
SCHOLARSHIPS FOR TIBETANS AND BUR-
MESE.
(a) ESTABLISHMENT OF EDUCATIONAL AND CUL-
TURAL EXCHANGE FOR TIBETANS.—The Director of the
United States Information Agency shall establish pro-
grams of educational and cultural exchange between the
United States and the people of Tibet. Such programs
shall include opportunities for training and, as the Direc-
tor considers appropriate, may include the assignment of
personnel and resources abroad.
(b) SCHOLARSHIPS FOR TIBETANS AND BURMESE.—
(1) IN GENERAL.—For each of the fiscal years
1998 and 1999, at least 30 scholarships shall be
made available to Tibetan students and professionals
who are outside Tibet, and at least 15 scholarships
shall be made available to Burmese students and
professionals who are outside Burma.
184
(2) WAIVER.—Paragraph (1) shall not apply to
the extent that the Director of the United States In-
formation Agency determines that there are not
enough qualified students to fulfill such allocation
requirement.
(3) SCHOLARSHIP DEFINED.—For the purposes
of this section, the term ‘‘scholarship’’ means an
amount to be used for full or partial support of tui-
tion and fees to attend an educational institution,
and may include fees, books, and supplies, equip-
ment required for courses at an educational institu-
tion, living expenses at a United States educational
institution, and travel expenses to and from, and
within, the United States.
SEC. 1408. EXCHANGE PROGRAMS IN SOUTH AFRICA.
(a) STATEMENT OF CONGRESS CONCERNING THE
FULBRIGHT COMMISSION IN SOUTH AFRICA.—The Con-
gress makes the following findings:
(1) The governments of the United States and
South Africa have established a bilateral commis-
sion, the J. William Fulbright Commission, in Pre-
toria, South Africa, with the primary purpose of
managing and providing oversight of cultural and
educational exchange programs for South Africans
185
and Americans, particularly the Fulbright Academic
Exchange Program in South Africa.
(2) The Fulbright commission is a model for bi-
lateral partnership and cooperative engagement and
provides a single administrative mechanism to im-
prove the management of United States-supported
educational programs in South Africa.
(3) Such bilateral commissions, known as Ful-
bright commissions, have been established around
the world to manage efficient and heavily leveraged
international exchange programs supported by the
United States.
(4) Two programs funded through the United
States Agency for International Development, the
Mandela Fellows and ATLAS, are long-term aca-
demic training programs at the post-baccalaureate
level comparable to the Fulbright Academic Ex-
change Program administered by the United States
Information Agency.
(5) The Fulbright Commission in South Africa
can provide local management of the ATLAS and
Mandela Fellows programs to provide an integrated
strategic plan for United States exchange and train-
ing programs.
186
(6) The Fulbright commissions usually require
that exchange programs feature some level of cost-
sharing with host governments and the private sec-
tor. The ATLAS and Mandela Fellows programs
would benefit from such an arrangement.
(7) The Fulbright Commission in South Africa
affirms continuity and consistency in the manage-
ment of the ATLAS and Mandela Fellows programs
in conjunction with the long-term commitment to
share in the costs of the commission and its pro-
grams.
(8) The Fulbright Commission in South Africa
will enhance the prestige and authority of exchange
grants and awards as well as reduce the possibility
of duplication of programs.
(b) POLICY REGARDING ADMINISTRATION AND MAN-
AGEMENT OF UNITED STATES EXCHANGE PROGRAMS IN
SOUTH AFRICA.—
(1) ATLAS
AND
MANDELA
FELLOWS
PRO-
GRAMS.—Funds appropriated or allocated to the
United States Agency for International Development
(USAID) for the ATLAS and Mandela Fellows pro-
grams shall be transferred to the United States In-
formation Agency.
188
SEC. 1410. AUTHORITY TO ADMINISTER SUMMER TRAVEL/
WORK PROGRAMS.
The Director of the United States Information Agen-
cy is authorized to administer summer travel/work pro-
grams without regard to preplacement requirements.
SEC. 1411. PERMANENT ADMINISTRATIVE AUTHORITIES
REGARDING APPROPRIATIONS.
Section 701(f) of the United States Information and
Educational Exchange Act of 1948 (22 U.S.C. 1476(f))
is amended by striking paragraph (4).
SEC. 1412. AUTHORITIES OF THE BROADCASTING BOARD
OF GOVERNORS.
(a) AUTHORITIES.—Section 305(a)(1) of the United
States International Broadcasting Act of 1994 (22 U.S.C.
6204(a)(1)) is amended by striking ‘‘direct and’’.
(b) DIRECTOR OF THE BUREAU.—The first sentence
of section 307(b)(1) of the United States International
Broadcasting Act of 1994 (22 U.S.C.6206(b)(1)) is
amended to read as follows: ‘‘The Director of the Bureau
shall be appointed by the Board with the concurrence of
the Director of the United States Information Agency.’’.
(c) RESPONSIBILITIES OF THE DIRECTOR.—Section
307 of the United States International Broadcasting Act
of 1994 (22 U.S.C.6206) is amended by adding at the end
the following new subsection:
189
‘‘(c) RESPONSIBILITIES
OF
THE DIRECTOR.—The
Director shall organize and chair a coordinating commit-
tee to examine long-term strategies for the future of inter-
national broadcasting, including the use of new tech-
nologies, further consolidation of broadcast services, and
consolidation of currently existing public affairs and legis-
lative relations functions in the various international
broadcasting entities. The coordinating committee shall
include representatives of RFA, RFE/RL, the Broadcast-
ing Board of Governors, and, as appropriate, from the Of-
fice of Cuba Broadcasting, the Voice of America, and
WorldNet.’’.
SEC. 1413. UNITED STATES—JAPAN COMMISSION.
(a) RELIEF FROM RESTRICTION OF INTERCHANGE-
ABILITY OF FUNDS.—
(1) Section 6(4) of the Japan-United States
Friendship Act (22 U.S.C. 2905(4)) is amended by
striking ‘‘needed, except’’ and all that follows
through ‘‘United States’’ and inserting ‘‘needed’’.
(2) The second sentence of section 7(b) of the
Japan-United States Friendship Act (22 U.S.C.
2906(b)) is amended to read as follows: ‘‘Such in-
vestment may be made only in interest-bearing obli-
gations of the United States, in obligations guaran-
teed as to both principal and interest by the United
190
States, in interest-bearing obligations of Japan, or
in obligations guaranteed as to both principal and
interest by Japan.’’.
(b) REVISION OF NAME OF COMMISSION.—
(1) After the date of the enactment of this Act,
the Japan-United States Friendship Commission
shall be designated as the ‘‘United States-Japan
Commission’’. Any reference in any provision of law,
Executive order, regulation, delegation of authority,
or other document to the Japan-United States
Friendship Commission shall be considered to be a
reference to the United States-Japan Commission.
(2) The heading of section 4 of the Japan-Unit-
ed States Friendship Act (22 U.S.C. 2903) is
amended to read as follows:
‘‘UNITED STATES-JAPAN COMMISSION’’.
(3) The Japan-United States Friendship Act is
amended by striking ‘‘Japan-United States Friend-
ship Commission’’ each place such term appears and
inserting ‘‘United States-Japan Commission’’.
(c) REVISION OF NAME OF TRUST FUND.—
(1) After the date of the enactment of this Act,
the Japan-United States Friendship Trust Fund
shall be designated as the ‘‘United States-Japan
Trust Fund’’. Any reference in any provision of law
, Executive order, regulation, delegation of author-
191
ity, or other document to the Japan-United States
Friendship Trust Fund shall be considered to be a
reference to the United States-Japan Trust Fund.
(2) Section 3(a) of the Japan-United States
Friendship Act (22 U.S.C. 2902(a)) is amended by
striking ‘‘Japan-United States Friendship Trust
Fund’’ and inserting ‘‘United States-Japan Trust
Fund’’.
TITLE XV—INTERNATIONAL OR-
GANIZATIONS; 
UNITED 
NA-
TIONS AND RELATED AGEN-
CIES
CHAPTER 1—GENERAL PROVISIONS
SEC. 1501. SERVICE IN INTERNATIONAL ORGANIZATIONS.
(a) IN GENERAL.—Section 3582(b) of title 5, United
States Code, is amended by striking all after the first sen-
tence and inserting the following: ‘‘On reemployment, he
is entitled to the rate of basic pay to which he would have
been entitled had he remained in the civil service. On re-
employment, the agency shall restore his sick leave ac-
count, by credit or charge, to its status at the time of
transfer. The period of separation caused by his employ-
ment with the international organization and the period
necessary to effect reemployment are deemed creditable
service for all appropriate civil service employment pur-
192
poses. This subsection does not apply to a congressional
employee.’’.
(b) APPLICATION.—The amendment made by sub-
section (a) shall apply with respect transfers which take
effect on or after the date of the enactment of this Act.
CHAPTER 2—UNITED NATIONS AND
RELATED AGENCIES
SEC. 1521. REFORM IN BUDGET DECISIONMAKING PROCE-
DURES OF THE UNITED NATIONS AND ITS
SPECIALIZED AGENCIES.
(a) ASSESSED CONTRIBUTIONS.—Of amounts au-
thorized to be appropriated for ‘‘Assessed Contributions
to International Organizations’’ by this Act, the President
may withhold 20 percent of the funds appropriated for the
United States assessed contribution to the United Nations
or to any of its specialized agencies for any calendar year
if the Secretary of State determines that the United Na-
tions or any such agency has failed to implement or to
continue to implement consensus-based decisionmaking
procedures on budgetary matters which assure that suffi-
cient attention is paid to the views of the United States
and other member states that are the major financial con-
tributors to such assessed budgets.
(b) NOTICE TO CONGRESS.—The President shall no-
tify the Congress when a decision is made to withhold any
193
share of the United States assessed contribution to the
United Nations or its specialized agencies pursuant to
subsection (a) and shall notify the Congress when the deci-
sion is made to pay any previously withheld assessed con-
tribution. A notification under this subsection shall include
appropriate consultation between the President (or the
President’s representative) and the Committee on Inter-
national Relations of the House of Representatives and
the Committee on Foreign Relations of the Senate.
(c) CONTRIBUTIONS FOR PRIOR YEARS.—Subject to
the availability of appropriations, payment of assessed
contributions for prior years may be made to the United
Nations or any of its specialized agencies notwithstanding
subsection (a) if such payment would further United
States interests in that organization.
(d) REPORT TO CONGRESS.—Not later than Feb-
ruary 1 of each year, the President shall submit to the
appropriate congressional committees a report concerning
the amount of United States assessed contributions paid
to the United Nations and each of its specialized agencies
during the preceding calendar year.