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(B) strengthen domestic civil society par-
ticipation, especially for people living with HIV/
AIDS, in-country coordinating mechanisms; and 
(C) establish procedures to assess the need 
for, and coordinate, technical assistance for 
Global Fund activities, in cooperation with bi-
lateral and multilateral donors; and 
(2) the Global Fund has established clear, con-
sistent progress indicators upon which to determine 
the release of incremental disbursements; 
(3) the Global Fund is releasing such incre-
mental disbursements only if sufficient positive re-
sults have been attained based on those indicators; 
and 
(4) the Global Fund is providing an appropriate 
level of support and oversight to country-level enti-
ties, such as country coordinating mechanisms, prin-
cipal recipients, and local Fund agents, to enable 
them to fulfill their mandates. 
DEMOCRACY PROGRAMS 
SEC. 526. (a) The Secretary of Treasury should in-
struct the United States executive director to each inter-
national financial institution to use the voice and vote of 
the United States to support projects in Tibet if such 
projects do not provide incentives for the migration and 
settlement of non-Tibetans into Tibet or facilitate the
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transfer of ownership of Tibetan land and natural re-
sources to non-Tibetans; are based on a thorough needs-
assessment; foster self-sufficiency of the Tibetan people 
and respect Tibetan culture and traditions; and are sub-
ject to effective monitoring. 
(b) Notwithstanding any other provision of law, not 
less than $4,000,000 of the funds appropriated by this 
Act under the heading ‘‘Economic Support Fund’’ should 
be made available to nongovernmental organizations to 
support activities which preserve cultural traditions and 
promote sustainable development and environmental con-
servation in Tibetan communities in the Tibetan Autono-
mous Region and in other Tibetan communities in China. 
(c) Notwithstanding any other provision of law, not 
less than $250,000 of the funds appropriated under the 
heading ‘‘Economic Support Fund’’ should be made avail-
able for human rights and democracy programs for Tibet-
ans. 
(d) Not less than $27,000,000 of the funds appro-
priated by this Act under the heading ‘‘Economic Support 
Fund’’ should be allocated for the Human Rights and De-
mocracy Fund: Provided, That up to $1,200,000 may be 
used for the Reagan/Fascell Democracy Fellows program. 
(e) Notwithstanding any other provision of law, up 
to $1,500,000 of the funds appropriated by this Act under
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the heading ‘‘Economic Support Fund’’ may be provided 
to make grants to educational, humanitarian, and non-
governmental organizations and individuals inside Iran 
and Syria to support the advancement of democracy and 
human rights in Iran and Syria, and such funds may be 
provided through the National Endowment for Democ-
racy. 
PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST 
COUNTRIES 
SEC. 527. (a) Funds appropriated for bilateral assist-
ance under any heading of this Act and funds appro-
priated under any such heading in a provision of law en-
acted prior to the enactment of this Act, shall not be made 
available to any country which the President determines—
(1) grants sanctuary from prosecution to any 
individual 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 
Federal Register and, at least 15 days before the waiver 
takes effect, shall notify the Committees on Appropria-
tions of the waiver (including the justification for the waiv-
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er) in accordance with the regular notification procedures 
of the Committees on Appropriations. 
DEBT-FOR-DEVELOPMENT 
SEC. 528. In order to enhance the continued partici-
pation of nongovernmental organizations in debt-for-devel-
opment and debt-for-nature exchanges, a nongovern-
mental organization which is a grantee or contractor of 
the United States Agency for International Development 
may place in interest bearing accounts local currencies 
which accrue to that organization as a result of economic 
assistance provided under title II of this Act and, subject 
to the regular notification procedures of the Committees 
on Appropriations, and any interest earned on such invest-
ment shall be used for the purpose for which the assist-
ance was provided to that organization. 
SEPARATE ACCOUNTS 
SEC. 529. (a) SEPARATE ACCOUNTS
FOR LOCAL 
CURRENCIES.—(1) If assistance is furnished to the gov-
ernment 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 genera-
tion of local currencies of that country, the Administrator 
of the United States Agency for International Develop-
ment shall—
(A) require that local currencies be deposited in 
a separate account established by that government;
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(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 govern-
ment the responsibilities of the United States Agen-
cy for International Development and that govern-
ment to monitor and account for deposits into and 
disbursements from the separate account. 
(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 chapter 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.