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PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN
COUNTRIES
SEC. 524. None of the funds appropriated or otherwise
made available pursuant to this Act shall be obligated to
finance indirectly any assistance or reparations to Cuba,
Iraq, Libya, Iran, Syria, North Korea, or the People’s Re-
public of China, unless the President of the United States
certifies that the withholding of these funds is contrary to
the national interest of the United States.
RECIPROCAL LEASING
SEC. 525. Section 61(a) of the Arms Export Control
Act is amended by striking out ‘‘1996’’ and inserting in
lieu thereof ‘‘1997’’.
NOTIFICATION ON EXCESS DEFENSE EQUIPMENT
SEC. 526. Prior to providing excess Department of De-
fense articles in accordance with section 516(a) of the For-
eign Assistance Act of 1961, the Department of Defense shall
notify the Committees on Appropriations to the same extent
and under the same conditions as are other committees pur-
suant to subsection (c) of that section: Provided, That before
issuing a letter of offer to sell excess defense articles under
the Arms Export Control Act, the Department of Defense
shall notify the Committees on Appropriations in accord-
ance with the regular notification procedures of such Com-
mittees: Provided further, That such Committees shall also
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be informed of the original acquisition cost of such defense
articles.
AUTHORIZATION REQUIREMENT
SEC. 527. Funds appropriated by this Act may be obli-
gated and expended notwithstanding section 10 of Public
Law 91–672 and section 15 of the State Department Basic
Authorities Act of 1956.
PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST
COUNTRIES
SEC. 528. (a) Notwithstanding any other provision of
law, funds appropriated for bilateral assistance under any
heading of this Act and funds appropriated under any such
heading in a provision of law enacted prior to enactment
of this Act, shall not be made available to any country
which the President determines—
(1) grants sanctuary from prosecution to any in-
dividual or group which has committed an act of
international terrorism, or
(2) otherwise supports international terrorism.
(b) The President may waive the application of sub-
section (a) to a country if the President determines that
national security or humanitarian reasons justify such
waiver. The President shall publish each waiver in the Fed-
eral Register and, at least fifteen days before the waiver
takes effect, shall notify the Committees on Appropriations
of the waiver (including the justification for the waiver)
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in accordance with the regular notification procedures of
the Committees on Appropriations.
COMMERCIAL LEASING OF DEFENSE ARTICLES
SEC. 529. Notwithstanding any other provision of law,
and subject to the regular notification procedures of the
Committees on Appropriations, the authority of section
23(a) of the Arms Export Control Act may be used to pro-
vide financing to Israel, Egypt and NATO and major non-
NATO allies for the procurement by leasing (including leas-
ing with an option to purchase) of defense articles from
United States commercial suppliers, not including Major
Defense Equipment (other than helicopters and other types
of aircraft having possible civilian application), if the
President determines that there are compelling foreign pol-
icy or national security reasons for those defense articles
being provided by commercial lease rather than by govern-
ment-to-government sale under such Act.
COMPETITIVE INSURANCE
SEC. 530. All Agency for International Development
contracts and solicitations, and subcontracts entered into
under such contracts, shall include a clause requiring that
United States insurance companies have a fair opportunity
to bid for insurance when such insurance is necessary or
appropriate.
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STINGERS IN THE PERSIAN GULF REGION
SEC. 531. Except as provided in section 581 of the For-
eign Operations, Export Financing, and Related Programs
Appropriations Act, 1990, the United States may not sell
or otherwise make available any Stingers to any country
bordering the Persian Gulf under the Arms Export Control
Act or chapter 2 of part II of the Foreign Assistance Act
of 1961.
DEBT-FOR-DEVELOPMENT
SEC. 532. In order to enhance the continued participa-
tion of nongovernmental organizations in economic assist-
ance activities under the Foreign Assistance Act of 1961,
including endowments, debt-for-development and debt-for-
nature exchanges, a nongovernmental organization which
is a grantee or contractor of the Agency for International
Development may place in interest bearing accounts funds
made available under this Act or prior Acts or local cur-
rencies which accrue to that organization as a result of eco-
nomic assistance provided under title II of this Act and
any interest earned on such investment may be used for
the purpose for which the assistance was provided to that
organization.
COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES
SEC. 533. Direct costs associated with meeting a for-
eign customer’s additional or unique requirements will con-
tinue to be allowable under contracts under section 22(d)
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of the Arms Export Control Act. Loadings applicable to
such direct costs shall be permitted at the same rates appli-
cable to procurement of like items purchased by the Depart-
ment of Defense for its own use.
SEPARATE ACCOUNTS
SEC. 534. (a) SEPARATE ACCOUNTS FOR LOCAL CUR-
RENCIES.—(1) If assistance is furnished to the government
of a foreign country under chapters 1 and 10 of part I or
chapter 4 of part II of the Foreign Assistance Act of 1961
under agreements which result in the generation of local
currencies of that country, the Administrator of the Agency
for International Development shall—
(A) require that local currencies be deposited in
a separate account established by that government;
(B) enter into an agreement with that govern-
ment which sets forth—
(i) the amount of the local currencies to be
generated, and
(ii) the terms and conditions under which
the currencies so deposited may be utilized, con-
sistent with this section; and
(C) establish by agreement with that government
the responsibilities of the Agency for International
Development and that government to monitor and ac-
count for deposits into and disbursements from the
separate account.
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(2) USES OF LOCAL CURRENCIES.—As may be agreed
upon with the foreign government, local currencies depos-
ited in a separate account pursuant to subsection (a), or
an equivalent amount of local currencies, shall be used
only—
(A) to carry out chapters 1 or 10 of part I or
chapter 4 of part II (as the case may be), for such
purposes as—
(i) project and sector assistance activities,
or
(ii) debt and deficit financing; or
(B) for the administrative requirements of the
United States Government.
(3) PROGRAMMING ACCOUNTABILITY.—The Agency for
International Development shall take all appropriate steps
to ensure that the equivalent of the local currencies dis-
bursed pursuant to subsection (a)(2)(A) from the separate
account established pursuant to subsection (a)(1) are used
for the purposes agreed upon pursuant to subsection (a)(2).
(4) TERMINATION OF ASSISTANCE PROGRAMS.—Upon
termination of assistance to a country under chapters 1 or
10 of part I or chapter 4 of part II (as the case may be),
any unencumbered balances of funds which remain in a
separate account established pursuant to subsection (a)
shall be disposed of for such purposes as may be agreed to
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by the government of that country and the United States
Government.
(5) CONFORMING AMENDMENTS.—The provisions of
this subsection shall supersede the tenth and eleventh provi-
sos contained under the heading ‘‘Sub-Saharan Africa, De-
velopment Assistance’’ as included in the Foreign Oper-
ations, Export Financing, and Related Programs Appro-
priations Act, 1989 and sections 531(d) and 609 of the For-
eign Assistance Act of 1961.
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—(1)
If assistance is made available to the government of a for-
eign country, under chapters 1 or 10 of part I or chapter
4 of part II of the Foreign Assistance Act of 1961, as cash
transfer assistance or as nonproject sector assistance, that
country shall be required to maintain such funds in a sepa-
rate account and not commingle them with any other funds.
(2) APPLICABILITY OF OTHER PROVISIONS OF LAW.—
Such funds may be obligated and expended notwithstanding
provisions of law which are inconsistent with the nature
of this assistance including provisions which are referenced
in the Joint Explanatory Statement of the Committee of
Conference accompanying House Joint Resolution 648 (H.
Report No. 98–1159).
(3) NOTIFICATION.—At least fifteen days prior to obli-
gating any such cash transfer or nonproject sector assist-
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ance, the President shall submit a notification through the
regular notification procedures of the Committees on Appro-
priations, which shall include a detailed description of how
the funds proposed to be made available will be used, with
a discussion of the United States interests that will be
served by the assistance (including, as appropriate, a de-
scription of the economic policy reforms that will be pro-
moted by such assistance).
(4) EXEMPTION.—Nonproject sector assistance funds
may be exempt from the requirements of subsection (b)(1)
only through the notification procedures of the Committees
on Appropriations.
COMPENSATION FOR UNITED STATES EXECUTIVE
DIRECTORS TO INTERNATIONAL FINANCIAL INSTITUTIONS
SEC. 535. (a) No funds appropriated by this Act may
be made as payment to any international financial institu-
tion while the United States Executive Director to such in-
stitution is compensated by the institution at a rate which,
together with whatever compensation such Director receives
from the United States, is in excess of the rate provided
for an individual occupying a position at level IV of the
Executive Schedule under section 5315 of title 5, United
States Code, or while any alternate United States Director
to such institution is compensated by the institution at a
rate in excess of the rate provided for an individual occupy-
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ing a position at level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(b) For purposes of this section, ‘‘international finan-
cial institutions’’ are: the International Bank for Recon-
struction and Development, the Inter-American Develop-
ment Bank, the Asian Development Bank, the Asian Devel-
opment Fund, the African Development Bank, the African
Development Fund, the International Monetary Fund, the
North American Development Bank, and the European
Bank for Reconstruction and Development.
COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST
IRAQ
SEC. 536. (a) DENIAL OF ASSISTANCE.—None of the
funds appropriated or otherwise made available pursuant
to this Act to carry out the Foreign Assistance Act of 1961
(including title IV of chapter 2 of part I, relating to the
Overseas Private Investment Corporation) or the Arms Ex-
port Control Act may be used to provide assistance to any
country that is not in compliance with the United Nations
Security Council sanctions against Iraq, Serbia or
Montenegro unless the President determines and so certifies
to the Congress that—
(1) such assistance is in the national interest of
the United States;
(2) such assistance will directly benefit the needy
people in that country; or
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(3) the assistance to be provided will be humani-
tarian assistance for foreign nationals who have fled
Iraq and Kuwait.
(b) IMPORT SANCTIONS.—If the President considers
that the taking of such action would promote the effective-
ness of the economic sanctions of the United Nations and
the United States imposed with respect to Iraq, Serbia, or
Montenegro, as the case may be, and is consistent with the
national interest, the President may prohibit, for such a
period of time as he considers appropriate, the importation
into the United States of any or all products of any foreign
country that has not prohibited—
(1) the importation of products of Iraq, Serbia,
or Montenegro into its customs territory, and
(2) the export of its products to Iraq, Serbia, or
Montenegro, as the case may be.
POW/MIA MILITARY DRAWDOWN
SEC. 537. (a) Notwithstanding any other provision of
law, the President may direct the drawdown, without reim-
bursement by the recipient, of defense articles from the
stocks of the Department of Defense, defense services of the
Department of Defense, and military education and train-
ing, of an aggregate value not to exceed $15,000,000 in fis-
cal year 1997, as may be necessary to carry out subsection
(b).
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(b) Such defense articles, services and training may
be provided to Vietnam, Cambodia and Laos, under sub-
section (a) as the President determines are necessary to sup-
port efforts to locate and repatriate members of the United
States Armed Forces and civilians employed directly or in-
directly by the United States Government who remain un-
accounted for from the Vietnam War, and to ensure the safe-
ty of United States Government personnel engaged in such
cooperative efforts and to support United States Depart-
ment of Defense-sponsored humanitarian projects associated
with the POW/MIA efforts. Any aircraft shall be provided
under this section only to Laos and only on a lease or loan
basis, but may be provided at no cost notwithstanding sec-
tion 61 of the Arms Export Control Act and may be main-
tained with defense articles, services and training provided
under this section.
(c) The President shall, within sixty days of the end
of any fiscal year in which the authority of subsection (a)
is exercised, submit a report to the Congress which identifies
the articles, services, and training drawn down under this
section.
MEDITERRANEAN EXCESS DEFENSE ARTICLES
SEC. 538. For the four year period beginning on Octo-
ber 1, 1996, the President shall ensure that excess defense
articles will be made available under section 516 and 519
of the Foreign Assistance Act of 1961 consistent with the
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manner in which the President made available excess de-
fense articles under those sections during the four year pe-
riod that began on October 1, 1992, pursuant to section
573(e) of the Foreign Operations, Export Financing, Relat-
ed Programs Appropriations Act, 1990.
CASH FLOW FINANCING
SEC. 539. For each country that has been approved
for cash flow financing (as defined in section 25(d) of the
Arms Export Control Act, as added by section 112(b) of
Public Law 99–83) under the Foreign Military Financing
Program, any Letter of Offer and Acceptance or other pur-
chase agreement, or any amendment thereto, for a procure-
ment 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 through the regular notification proce-
dures to the Committees on Appropriations.
AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMER-
ICAN FOUNDATION AND THE AFRICAN DEVELOPMENT
FOUNDATION
SEC. 540. Unless expressly provided to the contrary,
provisions of this or any other Act, including provisions
contained in prior Acts authorizing or making appropria-
tions for foreign operations, export financing, and related
programs, shall not be construed to prohibit activities au-
thorized by or conducted under the Peace Corps Act, the
Inter-American Foundation Act, or the African Develop-
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ment Foundation Act. The appropriate agency shall
promptly report to the Committees on Appropriations
whenever it is conducting activities or is proposing to con-
duct activities in a country for which assistance is prohib-
ited.
IMPACT ON JOBS IN THE UNITED STATES
SEC. 541. None of the funds appropriated by this Act
may be obligated or expended to provide—
(a) any financial incentive to a business enter-
prise currently located in the United States for the
purpose of inducing such an enterprise to relocate
outside the United States if such incentive or induce-
ment is likely to reduce the number of employees of
such business enterprise in the United States because
United States production is being replaced by such
enterprise outside the United States;
(b) assistance for the purpose of establishing or
developing in a foreign country any export processing
zone or designated area in which the tax, tariff, labor,
environment, and safety laws of that country do not
apply, in part or in whole, to activities carried out
within that zone or area, unless the President deter-
mines and certifies that such assistance is not likely
to cause a loss of jobs within the United States; or
(c) assistance for any project or activity that
contributes to the violation of internationally recog-
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nized workers rights, as defined in section 502(a)(4)
of the Trade Act of 1974, of workers in the recipient
country, including any designated zone or area in
that country: Provided, That in recognition that the
application of this subsection should be commensurate
with the level of development of the recipient country
and sector, the provisions of this subsection shall not
preclude assistance for the informal sector in such
country, micro and small-scale enterprise, and
smallholder agriculture.
AUTHORITY TO ASSIST BOSNIA AND HERZEGOVINA
SEC. 542. (a) The President is authorized to direct the
transfer, subject to prior notification of the Committees on
Appropriations, to the government of Bosnia and
Herzegovina, without reimbursement, of defense articles
from the stocks of the Department of Defense and defense
services of the Department of Defense of an aggregate value
of not to exceed $100,000,000 in fiscal years 1996 and 1997:
Provided, That the President certifies in a timely fashion
to the Congress that the transfer of such articles would assist
that nation in self-defense and thereby promote the security
and stability of the region.
(b) Within 60 days of any transfer under the authority
provided in subsection (a), and every 60 days thereafter,
the President shall report in writing to the Speaker of the
House of Representatives and the President pro tempore of
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the Senate concerning the articles transferred and the dis-
position thereof.
(c) There are authorized to be appropriated to the
President such sums as may be necessary to reimburse the
applicable appropriation, fund, or account for defense arti-
cles provided under this section.
RESTRICTIONS ON THE TERMINATION OF SANCTIONS
AGAINST SERBIA AND MONTENEGRO
SEC. 543. (a) RESTRICTIONS.—Notwithstanding any
other provision of law, no sanction, prohibition, or require-
ment described in section 1511 of the National Defense Au-
thorization Act for Fiscal Year 1994 (Public Law 103–160),
with respect to Serbia or Montenegro, may cease to be effec-
tive, unless—
(1) the President first submits to the Congress a
certification described in subsection (b); and
(2) the requirements of section 1511 of that Act
are met.
(b) CERTIFICATION.—A certification described in this
subsection is a certification that—
(1) there is substantial progress toward—
(A) the realization of a separate identity for
Kosova and the right of the people of Kosova to
govern themselves; or
(B) the creation of an international protec-
torate for Kosova;
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(2) there is substantial improvement in the
human rights situation in Kosova;
(3) international human rights observers are al-
lowed to return to Kosova; and
(4) the elected government of Kosova is permitted
to meet and carry out its legitimate mandate as elect-
ed representatives of the people of Kosova.
(c) WAIVER AUTHORITY.—The President may waive
the application in whole or in part, of subsection (a) if the
President certifies to the Congress that the President has
determined that the waiver is necessary to meet emergency
humanitarian needs or to achieve a negotiated settlement
of the conflict in Bosnia-Herzegovina that is acceptable to
the parties.
SPECIAL AUTHORITIES
SEC. 544. (a) Funds appropriated in title II of this
Act that are made available for Afghanistan, Lebanon, and
Cambodia, and for victims of war, displaced children, dis-
placed Burmese, humanitarian assistance for Romania,
and humanitarian assistance for the peoples of Bosnia and
Herzegovina, Croatia, and Kosova, may be made available
notwithstanding any other provision of law: Provided, That
any such funds that are made available for Cambodia shall
be subject to the provisions of section 531(e) of the Foreign
Assistance Act of 1961 and section 906 of the International
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Security and Development Cooperation Act of 1985: Pro-
vided further, That none of the funds appropriated by this
Act may be made available, and funds previously obligated
may not be expended, for assistance for any country or or-
ganization that the Secretary of State determines is cooper-
ating, tactically or strategically, with the Khmer Rouge in
their military operations, or to the military of any country
that is not acting vigorously to prevent its members from
facilitating the export of timber from Cambodia by the
Khmer Rouge: Provided further, That the Secretary of State
shall submit reports to the Committees on Appropriations
on February 15, 1997 and September 15, 1997, on whether
there are any countries, organizations, or militaries for
which assistance is prohibited under the previous proviso,
the basis for such conclusions and, if appropriate, the steps
being taken to terminate assistance.
(b) Funds appropriated by this Act to carry out the
provisions of sections 103 through 106 of the Foreign Assist-
ance Act of 1961 may be used, notwithstanding any other
provision of law, for the purpose of supporting tropical for-
estry and energy programs aimed at reducing emissions of
greenhouse gases, and for the purpose of supporting bio-
diversity conservation activities: Provided, That such as-
sistance shall be subject to sections 116, 502B, and 620A
of the Foreign Assistance Act of 1961.
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(c) During fiscal year 1997, the President may use up
to $40,000,000 under the authority of section 451 of the
Foreign Assistance Act of 1961, notwithstanding the fund-
ing ceiling contained in subsection (a) of that section.
(d) The Agency for International Development may
employ personal services contractors, notwithstanding any
other provision of law, for the purpose of administering pro-
grams for the West Bank and Gaza.
POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT OF
ISRAEL
SEC. 545. It is the sense of the Congress that—
(1) the Arab League countries should imme-
diately and publicly renounce the primary boycott of
Israel and the secondary and tertiary boycott of
American firms that have commercial ties with Israel;
and
(2) the President should—
(A) take more concrete steps to encourage
vigorously Arab League countries to renounce
publicly the primary boycotts of Israel and the
secondary and tertiary boycotts of American
firms that have commercial relations with Israel
as a confidence-building measure;
(B) take into consideration the participa-
tion of any recipient country in the primary
boycott of Israel and the secondary and tertiary
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boycotts of American firms that have commercial
relations with Israel when determining whether
to sell weapons to said country;
(C) report to Congress on the specific steps
being taken by the President to bring about a
public renunciation of the Arab primary boycott
of Israel and the secondary and tertiary boycotts
of American firms that have commercial rela-
tions with Israel; and
(D) encourage the allies and trading part-
ners of the United States to enact laws prohibit-
ing businesses from complying with the boycott
and penalizing businesses that do comply.
ANTI-NARCOTICS ACTIVITIES
SEC. 546. (a) Of the funds appropriated or otherwise
made available by this Act for ‘‘Economic Support Fund’’,
assistance may be provided to strengthen the administra-
tion of justice in countries in Latin America and the Carib-
bean in accordance with the provisions of section 534 of
the Foreign Assistance Act of 1961, except that programs
to enhance protection of participants in judicial cases may
be conducted notwithstanding section 660 of that Act.
(b) Funds made available pursuant to this section may
be made available notwithstanding the third sentence of sec-
tion 534(e) of the Foreign Assistance Act of 1961. Funds
made available pursuant to subsection (a) for Bolivia, Co-
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lombia and Peru may be made available notwithstanding
section 534(c) and the second sentence of section 534(e) of
the Foreign Assistance Act of 1961.
ELIGIBILITY FOR ASSISTANCE
SEC. 547. (a) ASSISTANCE THROUGH NONGOVERN-
MENTAL ORGANIZATIONS.—Restrictions contained in this
or any other Act with respect to assistance for a country
shall not be construed to restrict assistance in support of
programs of nongovernmental organizations from funds ap-
propriated by this Act to carry out the provisions of chap-
ters 1 and 10 of part I of the Foreign Assistance Act of
1961: Provided, That the President shall take into consider-
ation, in any case in which a restriction on assistance
would be applicable but for this subsection, whether assist-
ance in support of programs of nongovernmental organiza-
tions is in the national interest of the United States: Pro-
vided further, That before using the authority of this sub-
section to furnish assistance in support of programs of non-
governmental organizations, the President shall notify the
Committees on Appropriations under the regular notifica-
tion procedures of those committees, including a description
of the program to be assisted, the assistance to be provided,
and the reasons for furnishing such assistance: Provided
further, That nothing in this subsection shall be construed
to alter any existing statutory prohibitions against abortion
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or involuntary sterilizations contained in this or any other
Act.
(b) PUBLIC LAW 480.—During fiscal year 1997, re-
strictions contained in this or any other Act with respect
to assistance for a country shall not be construed to restrict
assistance under the Agricultural Trade Development and
Assistance Act of 1954: Provided, That none of the funds
appropriated to carry out title I of such Act and made
available pursuant to this subsection may be obligated or
expended except as provided through the regular notifica-
tion procedures of the Committees on Appropriations.
(c) EXCEPTION.—This section shall not apply—
(1) with respect to section 620A of the Foreign
Assistance Act or any comparable provision of law
prohibiting assistance to countries that support inter-
national terrorism; or
(2) with respect to section 116 of the Foreign As-
sistance Act of 1961 or any comparable provision of
law prohibiting assistance to countries that violate
internationally recognized human rights.
EARMARKS
SEC. 548. (a) Funds appropriated by this Act which
are earmarked may be reprogrammed for other programs
within the same account notwithstanding the earmark if
compliance with the earmark is made impossible by oper-
ation of any provision of this or any other Act or, with
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respect to a country with which the United States has an
agreement providing the United States with base rights or
base access in that country, if the President determines that
the recipient for which funds are earmarked has signifi-
cantly reduced its military or economic cooperation with
the United States since enactment of the Foreign Oper-
ations, Export Financing, and Related Programs Appro-
priations Act, 1991; however, before exercising the authority
of this subsection with regard to a base rights or base access
country which has significantly reduced its military or eco-
nomic cooperation with the United States, the President
shall consult with, and shall provide a written policy jus-
tification to the Committees on Appropriations: Provided,
That any such reprogramming shall be subject to the regu-
lar notification procedures of the Committees on Appropria-
tions: Provided further, That assistance that is repro-
grammed pursuant to this subsection shall be made avail-
able under the same terms and conditions as originally pro-
vided.
(b) In addition to the authority contained in sub-
section (a), the original period of availability of funds ap-
propriated by this Act and administered by the Agency for
International Development that are earmarked for particu-
lar programs or activities by this or any other Act shall
be extended for an additional fiscal year if the Adminis-
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trator of such agency determines and reports promptly to
the Committees on Appropriations that the termination of
assistance to a country or a significant change in cir-
cumstances makes it unlikely that such earmarked funds
can be obligated during the original period of availability:
Provided, That such earmarked funds that are continued
available for an additional fiscal year shall be obligated
only for the purpose of such earmark.
CEILINGS AND EARMARKS
SEC. 549. Ceilings and earmarks contained in this Act
shall not be applicable to funds or authorities appropriated
or otherwise made available by any subsequent Act unless
such Act specifically so directs.
EXCESS DEFENSE ARTICLES
SEC. 550. (a) During fiscal year 1997, the authority
of section 519 of the Foreign Assistance Act of 1961, as
amended, may be used to provide nonlethal excess defense
articles to countries for which United States foreign assist-
ance has been requested and for which receipt of such arti-
cles was separately justified for the fiscal year, without re-
gard to the restrictions in subsection (a) of section 519.
(b) During fiscal year 1997, the authority of section
516 of the Foreign Assistance Act of 1961, as amended, may
be used to provide defense articles to Jordan, Estonia, Lat-
via, Lithuania, and to countries eligible to participate in
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the Partnership for Peace and to receive assistance under
Public Law 101–179.
(c) Section 516(f) of the Foreign Assistance Act of
1961, as amended, is repealed.
(d) Section 31(d) of the Arms Export Control Act is
amended by deleting the words ‘‘or pursuant to sales under
this Act’’.
PROHIBITION ON PUBLICITY OR PROPAGANDA
SEC. 551. No part of any appropriation contained in
this Act shall be used for publicity or propaganda purposes
within the United States not authorized before the date of
enactment of this Act by the Congress: Provided, That not
to exceed $750,000 may be made available to carry out the
provisions of section 316 of Public Law 96–533.
USE OF AMERICAN RESOURCES
SEC. 552. To the maximum extent possible, assistance
provided under this Act should make full use of American
resources, including commodities, products, and services.
PROHIBITION OF PAYMENTS TO UNITED NATIONS MEMBERS
SEC. 553. None of the funds appropriated or made
available pursuant to this Act for carrying out the Foreign
Assistance Act of 1961, may be used to pay in whole or
in part any assessments, arrearages, or dues of any member
of the United Nations.
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CONSULTING SERVICES
SEC. 554. The expenditure of any appropriation under
this Act for any consulting service through procurement
contract, pursuant to section 3109 of title 5, United States
Code, shall be limited to those contracts where such expendi-
tures are a matter of public record and available for public
inspection, except where otherwise provided under existing
law, or under existing Executive order pursuant to existing
law.
PRIVATE VOLUNTARY ORGANIZATIONS—DOCUMENTATION
SEC. 555. None of the funds appropriated or made
available pursuant to this Act shall be available to a private
voluntary organization which fails to provide upon timely
request any document, file, or record necessary to the audit-
ing requirements of the Agency for International Develop-
ment.
PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS
THAT
EXPORT
LETHAL
MILITARY
EQUIPMENT
TO
COUNTRIES SUPPORTING INTERNATIONAL TERRORISM
SEC. 556. (a) None of the funds appropriated or other-
wise made available by this Act may be available to any
foreign government which provides lethal military equip-
ment to a country the government of which the Secretary
of State has determined is a terrorist government for pur-
poses of section 40(d) of the Arms Export Control Act. The
prohibition under this section with respect to a foreign gov-
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ernment shall terminate 12 months after that government
ceases to provide such military equipment. This section ap-
plies with respect to lethal military equipment provided
under a contract entered into after the date of enactment
of this Act.
(b) Assistance restricted by subsection (a) or any other
similar provision of law, may be furnished if the President
determines that furnishing such assistance is important to
the national interests of the United States.
(c) Whenever the waiver of subsection (b) is exercised,
the President shall submit to the appropriate congressional
committees a report with respect to the furnishing of such
assistance. Any such report shall include a detailed expla-
nation of the assistance to be provided, including the esti-
mated dollar amount of such assistance, and an expla-
nation of how the assistance furthers United States national
interests.
WITHHOLDING OF ASSISTANCE FOR PARKING FINES OWED
BY FOREIGN COUNTRIES
SEC. 557. (a) IN GENERAL.—Of the funds made avail-
able for a foreign country under part I of the Foreign As-
sistance Act of 1961, an amount equivalent to 110 percent
of the total unpaid fully adjudicated parking fines and pen-
alties owed to the District of Columbia by such country as
of the date of enactment of this Act shall be withheld from
obligation for such country until the Secretary of State cer-
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tifies and reports in writing to the appropriate congres-
sional committees that such fines and penalties are fully
paid to the government of the District of Columbia.
(b) DEFINITION.—For purposes of this section, the
term ‘‘appropriate congressional committees’’ means the
Committee on Foreign Relations and the Committee on Ap-
propriations of the Senate and the Committee on Inter-
national Relations and the Committee on Appropriations
of the House of Representatives.
LIMITATION ON ASSISTANCE FOR THE PLO FOR THE WEST
BANK AND GAZA
SEC. 558. None of the funds appropriated by this Act
may be obligated for assistance for the Palestine Liberation
Organization for the West Bank and Gaza unless the Presi-
dent has exercised the authority under section 604(a) of the
Middle East Peace Facilitation Act of 1995 (title VI of Pub-
lic Law 104–107) or any other legislation to suspend or
make inapplicable section 307 of the Foreign Assistance Act
of 1961 and that suspension is still in effect: Provided, That
if the President fails to make the certification under section
604(b)(2) of the Middle East Peace Facilitation Act of 1995
or to suspend the prohibition under other legislation, funds
appropriated by this Act may not be obligated for assistance
for the Palestine Liberation Organization for the West Bank
and Gaza.
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EXPORT FINANCING TRANSFER AUTHORITIES
SEC. 559. Not to exceed 5 percent of any appropriation
other than for administrative expenses made available for
fiscal year 1997 for programs under title I of this Act may
be transferred between such appropriations for use for any
of the purposes, programs and activities for which the funds
in such receiving account may be used, but no such appro-
priation, except as otherwise specifically provided, shall be
increased by more than 25 percent by any such transfer:
Provided, That the exercise of such authority shall be subject
to the regular notification procedures of the Committees on
Appropriations.
WAR CRIMES TRIBUNALS
SEC. 560. If the President determines that doing so
will contribute to a just resolution of charges regarding
genocide or other violations of international humanitarian
law, the authority of section 552(c) of the Foreign Assist-
ance Act of 1961, as amended, may be used to provide up
to $25,000,000 of commodities and services for the United
Nations War Crimes Tribunal established with regard to
the former Yugoslavia by the United Nations Security
Council or such other tribunals or commissions as the Coun-
cil may establish to deal with such violations, without re-
gard to the ceiling limitation contained in paragraph (2)
thereof: Provided, That the determination required under
this section shall be in lieu of any determinations otherwise
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required under section 552(c): Provided further, That 60
days after the date of enactment of this Act, and every 180
days thereafter, the Secretary of State shall submit a report
to the Committees on Appropriations describing the steps
the United States Government is taking to collect informa-
tion and intelligence regarding allegations of genocide or
other violations of international law in the former Yugo-
slavia and to furnish that information to the United Na-
tions War Crimes Tribunal for the former Yugoslavia.
TRANSPORTATION OF EXCESS DEFENSE ARTICLES
SEC. 561. Notwithstanding section 519(f) of the For-
eign Assistance Act of 1961, during fiscal year 1997, funds
available to the Department of Defense may be expended
for crating, packing, handling and transportation of excess
defense articles transferred under the authority of sections
516 and 519 to countries eligible to participate in the Part-
nership for Peace and to receive assistance under Public
Law 101–179.
LANDMINES
SEC. 562. Notwithstanding any other provision of law,
demining equipment available to any department or agency
and used in support of the clearing of landmines and
unexploded ordnance for humanitarian purposes may be
disposed of on a grant basis in foreign countries, subject
to such terms and conditions as the President may pre-
scribe: Provided, That section 1365(c) of the National De-
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fense Authorization Act for Fiscal Year 1993 (Public Law
102–484; 22 U.S.C., 2778 note) is amended by striking out
‘‘During the five-year period beginning on October 23,
1992’’ and inserting in lieu thereof ‘‘During the eight-year
period beginning on October 23, 1992’’.
MORATORIUM ON USE OF ANTIPERSONNEL LANDMINES
SEC. 563. (a) UNITED STATES MORATORIUM.—Not-
withstanding any other provision of law, for a period of
one year beginning three years after the date of enactment
of Public Law 104–107, the United States shall not use
antipersonnel landmines except along internationally recog-
nized national borders or in demilitarized zones within a
perimeter marked area that is monitored by military per-
sonnel and protected by adequate means to ensure the exclu-
sion of civilians.
(b) DEFINITION AND EXEMPTIONS.—For the purposes
of this section:
(1) 
ANTIPERSONNEL
LANDMINE.—The 
term
‘‘antipersonnel landmine’’ means any munition
placed under, on, or near the ground or other surface
area, delivered by artillery, rocket, mortar, or similar
means, or dropped from an aircraft and which is de-
signed, constructed or adapted to be detonated or ex-
ploded by the presence, proximity, or contact of a per-
son.
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(2) EXEMPTIONS.—The term ‘‘antipersonnel
landmine’’ does not include command detonated Clay-
more munitions.
RESTRICTIONS CONCERNING THE PALESTINIAN AUTHORITY
SEC. 564. None of the funds appropriated by this Act
may be obligated or expended to create in any part of Jeru-
salem a new office of any department or agency of the Unit-
ed States Government for the purpose of conducting official
United States Government business with the Palestinian
Authority over Gaza and Jericho or any successor Palestin-
ian governing entity provided for in the Israel-PLO Dec-
laration of Principles: Provided, That this restriction shall
not apply to the acquisition of additional space for the ex-
isting Consulate General in Jerusalem: Provided further,
That meetings between officers and employees of the United
States and officials of the Palestinian Authority, or any
successor Palestinian governing entity provided for in the
Israel-PLO Declaration of Principles, for the purpose of
conducting official United States Government business with
such authority should continue to take place in locations
other than Jerusalem. As has been true in the past, officers
and employees of the United States Government may con-
tinue to meet in Jerusalem on other subjects with Palestin-
ians (including those who now occupy positions in the Pal-
estinian Authority), have social contacts, and have inciden-
tal discussions.
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PROHIBITION OF PAYMENT OF CERTAIN EXPENSES
SEC. 565. None of the funds appropriated or otherwise
made available by this Act under the heading ‘‘INTER-
NATIONAL MILITARY EDUCATION AND TRAINING’’ or ‘‘FOR-
EIGN MILITARY FINANCING PROGRAM’’ for Informational
Program activities may be obligated or expended to pay
for—
(1) alcoholic beverages;
(2) food (other than food provided at a military
installation) not provided in conjunction with Infor-
mational Program trips where students do not stay at
a military installation; or
(3) entertainment expenses for activities that are
substantially of a recreational character, including
entrance fees at sporting events and amusement
parks.
HUMANITARIAN ASSISTANCE
SEC. 566. The Foreign Assistance Act of 1961 is
amended by adding immediately after section 620H the fol-
lowing new section:
‘‘SEC. 620I. PROHIBITION ON ASSISTANCE TO COUN-
TRIES THAT RESTRICT UNITED STATES HUMANITARIAN
ASSISTANCE.—
‘‘(a) IN GENERAL.—No assistance shall be fur-
nished under this Act or the Arms Export Control Act
to any country when it is made known to the Presi-
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dent that the government of such country prohibits or
otherwise restricts, directly or indirectly, the trans-
port or delivery of United States humanitarian as-
sistance.
‘‘(b) EXCEPTION.—Assistance may be furnished
without regard to the restriction in subsection (a) if
the President determines that to do so is in the na-
tional security interest of the United States.’’.
PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS
SEC. 567. (a) SENSE OF CONGRESS.—It is the sense
of the Congress that, to the greatest extent practicable, all
equipment and products purchased with funds made avail-
able in this Act should be American-made.
(b) NOTICE REQUIREMENT.—In providing financial
assistance to, or entering into any contract with, any entity
using funds made available in this Act, the head of each
Federal agency, to the greatest extent practicable, shall pro-
vide to such entity a notice describing the statement made
in subsection (a) by the Congress.
LIMITATION OF FUNDS FOR NORTH AMERICAN
DEVELOPMENT BANK
SEC. 568. None of the funds appropriated in this Act
under the heading ‘‘North American Development Bank’’
and made available for the Community Adjustment and In-
vestment Program shall be used for purposes other than
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those set out in the binational agreement establishing the
Bank.
LIMITATION ON FUNDS FOR BURMA
SEC. 569. Until such time as the President determines
and certifies to the Committees on Appropriations that an
elected government of Burma has been allowed to take office,
the following sanctions shall be imposed on Burma:
(1) No national of the United States shall make
any investment in Burma;
(2) United States assistance to Burma is prohib-
ited;
(3) The Secretary of the Treasury shall instruct
the United States executive director of each inter-
national financial institution to vote against any
loan or other utilization of the funds of the respective
bank to or for Burma; and
(4) Except as required by Treaty obligations,
any Burmese national who formulates, implements,
or benefits from policies which hinder the transition
of Burma to a democratic country shall be ineligible
to receive a visa and shall be excluded from admission
to the United States.
SPECIAL DEBT RELIEF FOR THE POOREST
SEC. 570. (a) AUTHORITY TO REDUCE DEBT.—The
President may reduce amounts owed to the United States
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(1) does not have an excessive level of military
expenditures;
(2) has not repeatedly provided support for acts
of international terrorism;
(3) is not failing to cooperate on international
narcotics control matters;
(4) (including its military or other security
forces) does not engage in a consistent pattern of gross
violations of internationally recognized human rights;
and
(5) is not ineligible for assistance because of the
application of section 527 of the Foreign Relations
Authorization Act, fiscal years 1994 and 1995.
(d) AVAILABILITY OF FUNDS.—The authority provided
by subsection (a) may be used only with regard to funds
appropriated by this Act under the heading ‘‘Debt restruc-
turing’’.
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduc-
tion of debt pursuant to subsection (a) shall not be consid-
ered assistance for purposes of any provision of law limit-
ing assistance to a country. The authority provided by sub-
section (a) may be exercised notwithstanding section 620(r)
of the Foreign Assistance Act of 1961.
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES
SEC. 571. (a) LOANS ELIGIBLE FOR SALE, REDUC-
TION, OR CANCELLATION.—
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(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 Jan-
uary 1, 1995, pursuant to the Foreign Assistance Act
of 1961, to the government of any eligible country as
defined in section 702(6) of that Act or on receipt of
payment from an eligible purchaser, reduce or cancel
such loan or portion thereof, only for the purpose of
facilitating—
(A) debt-for-equity swaps, debt-for-develop-
ment swaps, or debt-for-nature swaps; or
(B) a debt buyback by an eligible country
of its own qualified debt, only if the eligible
country uses an additional amount of the local
currency of the eligible country, equal to not less
than 40 percent of the price paid for such debt
by such eligible country, or the difference between
the price paid for such debt and the face value
of such debt, to support activities that link con-
servation and sustainable use of natural re-
sources with local community development, and
child survival and other child development, in a
manner consistent with sections 707 through 710
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of the Foreign Assistance Act of 1961, if the sale,
reduction, or cancellation would not contravene
any term or condition of any prior agreement
relating to such loan.
(2) TERMS AND CONDITIONS.—Notwithstanding
any other provision of law, the President shall, in ac-
cordance with this section, establish the terms and
conditions under which loans may be sold, reduced, or
canceled pursuant to this section.
(3) ADMINISTRATION.—The Facility, as defined
in section 702(8) of the Foreign Assistance Act of
1961, shall notify the administrator of the agency
primarily responsible for administering part I of the
Foreign Assistance Act of 1961 of purchasers that the
President has determined to be eligible, and shall di-
rect such agency to carry out the sale, reduction, or
cancellation of a loan pursuant to this section. Such
agency shall make an adjustment in its accounts to
reflect the sale, reduction, or 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.
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(b) DEPOSIT OF PROCEEDS.—The proceeds from the
sale, reduction, or cancellation of any loan sold, reduced,
or canceled pursuant to this section shall be deposited in
the United States Government account or accounts estab-
lished for the repayment of such loan.
(c) ELIGIBLE PURCHASERS.—A loan may be sold pur-
suant to subsection (a)(1)(A) only to a purchaser who pre-
sents 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 pursu-
ant to this section, of any loan made to an eligible country,
the President shall consult with the country concerning the
amount of loans to be sold, reduced, or canceled and their
uses for debt-for-equity swaps, debt-for-development swaps,
or debt-for-nature swaps.
(e) AVAILABILITY OF FUNDS.—The authority provided
by subsection (a) may be used only with regard to funds
appropriated by this Act under the heading ‘‘Debt Restruc-
turing’’.
SANCTIONS AGAINST COUNTRIES HARBORING WAR
CRIMINALS
SEC. 572. (a) BILATERAL ASSISTANCE.—Funds ap-
propriated by this Act under the Foreign Assistance Act of
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1961 or the Arms Export Control Act may not be provided
for any country described in subsection (c).
(b) MULTILATERAL ASSISTANCE.—The Secretary of
the Treasury shall instruct the United States executive di-
rectors of the international financial institutions to work
in opposition to, and vote against, any extension by such
institutions of financing or financial or technical assistance
to any country described in subsection (c).
(c) SANCTIONED COUNTRIES.—A country described in
this subsection is a country the government of which know-
ingly grants sanctuary to persons in its territory for the
purpose of evading prosecution, where such persons—
(1) have been indicted by the International
Criminal Tribunal for the former Yugoslavia, the
International Criminal Tribunal for Rwanda, or any
other international tribunal with similar standing
under international law, or
(2) have been indicted for war crimes or crimes
against humanity committed during the period begin-
ning March 23, 1933 and ending on May 8, 1945
under the direction of, or in association with—
(A) the Nazi government of Germany;
(B) any government in any area occupied
by the military forces of the Nazi government of
Germany;
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(C) any government which was established
with the assistance or cooperation of the Nazi
government; or
(D) any government which was an ally of
the Nazi government of Germany.
LIMITATION ON ASSISTANCE FOR HAITI
SEC. 573. (a) None of the funds appropriated or other-
wise made available by this Act, may be provided to the
Government of Haiti until the President reports to Congress
that—
(1) the Government is conducting thorough in-
vestigations of extrajudicial and political killings;
and
(2) the Government is cooperating with United
States authorities in the investigations of political
and extrajudicial killings.
(b) Nothing in this section shall be construed to restrict
the provision of humanitarian, development or electoral as-
sistance.
(c) The President may waive the requirements of this
section if he determines and certifies to the appropriate
committees of Congress that it is in the national interest
of the United States or necessary to assure the safe and
timely withdrawal of American forces from Haiti.
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LIMITATION ON FUNDS TO THE TERRITORY OF THE
BOSNIAC-CROAT FEDERATION
SEC. 574. Funds appropriated by this Act for activi-
ties in the internationally-recognized borders of Bosnia and
Herzegovina (other than refugee and disaster assistance and
assistance for restoration of infrastructure, to include power
grids, water supplies and natural gas) may only be made
available for activities in the territory of the Bosniac-Croat
Federation.
UNITED STATES GOVERNMENT PUBLICATIONS
SEC. 575. Beginning in fiscal year 1997, all United
States Government publications shall refer to the capital
of Israel as Jerusalem.
EXTENSION OF CERTAIN ADJUDICATION PROVISIONS
SEC. 576. The Foreign Operations, Export Financing,
and Related 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
1996’’ and inserting ‘‘1996, and 1997’’; and
(B) in subsection (e), by striking out ‘‘Octo-
ber 1, 1996’’ each place it appears and inserting
‘‘October 1, 1997’’; and
(2) in section 599E (8 U.S.C. 1255 note) in sub-
section (b)(2), by striking out ‘‘September 30, 1996’’
and inserting ‘‘September 30, 1997’’.
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TRANSPARENCY OF BUDGETS
SEC. 577. (a) LIMITATION.—Beginning three years
after the date of the enactment of this Act, the Secretary
of the Treasury shall instruct the United States Executive
Director of each international financial institution to use
the voice and vote of the United States to oppose any loan
or other utilization of the funds of their respective institu-
tion, other than to address basic human needs, for the gov-
ernment of any country which the Secretary of the Treasury
determines—
(1) does not have in place a functioning system
for a civilian audit of all receipts and expenditures
in the portions of its budget that fund activities of the
armed forces and security forces;
(2) has not provided a summary of a current
audit to the institution; and
(3) has not provided to the institution an ac-
counting of the ownership and financial interest in
revenue-generating enterprises of the armed forces and
security forces.
(b) DEFINITION.—For purposes of this section, the
term ‘‘international financial institution’’ shall include the
institutions identified in section 535(b) of this Act.
PROMOTION OF HUMAN RIGHTS
SEC. 578. A senior official, or former senior official,
of a government that receives funds appropriated by this
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Act, who applies for a visa to travel to the United States,
shall be denied such visa if the Secretary of State has credi-
ble evidence that such official has committed, ordered or at-
tempted to thwart the investigation of a gross violation of
an internationally recognized human right: Provided, That
for purposes of this section ‘‘senior official’’ includes an offi-
cer of the armed forces or security forces: Provided further,
That the Secretary of State may waive the restrictions of
this section on a case-by-case basis if he determines and
reports to the Committees on Appropriations that to do so
is important to the national interest of the United States.
GUARANTEES
SEC. 579. Section 251(b)(2)(G) of the Balanced Budget
and Emergency Deficit Control Act of 1985 is amended by
striking ‘‘fiscal year 1994 and 1995’’ and inserting in lieu
thereof ‘‘fiscal years 1994, 1995, and 1997’’ in both places
that this appears.
This Act may be cited as the ‘‘Foreign Operations,
Export Financing, and Related Programs Appropriations
Act, 1997’’.