103D CONGRESS
1ST SESSION
H. R. 2404
AN ACT
To authorize appropriations for foreign assistance
programs, and for other purposes.
103D CONGRESS
1ST SESSION
H. R. 2404
AN ACT
To authorize appropriations for foreign assistance programs,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Foreign Assistance Au-
thorization Act of 1993’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—REFORM OF FOREIGN ASSISTANCE PROGRAMS
Sec. 101. Need for foreign assistance reform.
Sec. 102. Evaluation and accountability.
Sec. 103. Economic assistance reform.
TITLE II—AUTHORIZATIONS FOR FOREIGN ASSISTANCE
PROGRAMS
Sec. 201. Authorizations of appropriations for fiscal year 1994.
Sec. 202. Child survival activities and Vitamin A Deficiency Program and relat-
ed activities.
Sec. 203. Housing guarantee program.
Sec. 204. Overseas Private Investment Corporation.
Sec. 205. Special debt reduction authority.
Sec. 206. Special Defense Acquisition Fund.
TITLE III—REGIONAL PROVISIONS
Sec. 301. Sub-Saharan Africa disaster assistance.
Sec. 302. African Development Foundation.
Sec. 303. Conflict resolution initiative for Africa.
Sec. 304. SADC projects.
Sec. 305. South Africa.
Sec. 306. Sudan.
Sec. 307. Zaire.
Sec. 308. Afghanistan humanitarian assistance.
Sec. 309. Multilateral Assistance Initiative for the Philippines.
Sec. 310. Assistance for Eastern Europe and the Baltics.
Sec. 311. Assistance for the independent states of the former Soviet Union.
Sec. 312. Assistance for Mongolia.
Sec. 313. Termination of IMET program for Malta.
Sec. 314. Administration of justice and other law enforcement assistance pro-
grams for Latin America and the Caribbean.
Sec. 315. Waiver of Brooke amendment for Nicaragua.
Sec. 316. Special notification requirements for Guatemala and Peru.
Sec. 317. Assistance for the Middle East.
Sec. 318. Military drawdown for Israel.
Sec. 319. Termination of IMET program for India.
TITLE IV—PROVISIONS RELATING TO ARMS TRANSFERS
Sec. 401. Competitive pricing for sales of defense articles and services.
Sec. 402. Increase in aggregate ceiling on transfers of excess defense articles.
Sec. 403. Eligibility of East European countries to receive nonlethal excess de-
fense articles.
Sec. 404. Exception to payment of full cost for sales of defense training serv-
ices to certain countries and international organizations.
Sec. 405. Eligibility of major non-NATO allies to receive certain contract serv-
ices in connection with sales of defense articles and services.
Sec. 406. Additions to war reserve stockpiles for allies.
Sec. 407. Arab boycott.
TITLE V—OTHER FOREIGN ASSISTANCE PROVISIONS
Sec. 501. Interest accruing to nongovernmental organizations.
Sec. 502. Private Sector Revolving Fund.
and policies, as well as the operational and
management systems that affect the develop-
ment impact of those programs and policies;
and
‘‘(B) it is the responsibility of the Inspec-
tor General to conduct regular and comprehen-
sive assessments and audits of financial man-
agement and administrative systems, including
the adequacy of the systems for monitoring and
evaluating agency projects and programs.
‘‘(c) ACCOUNTABILITY.—The President shall prepare
an annual report to the Congress as a separate part of
the congressional presentation materials of the agency pri-
marily responsible for administering this part. This report
shall include the following:
‘‘(1) An assessment of progress toward the
achievement of sustainable development objectives,
based on the findings of program performance, mon-
itoring, and evaluation studies conducted by the
agency and on such other empirical analyses as may
be appropriate.
‘‘(2) An analysis, on a country-by-country basis,
of the impact on economic development in each such
country during the preceding 3 to 5 fiscal years of
United States economic assistance programs, with a
discussion of the United States interests that were
served by the assistance. Each country receiving eco-
nomic assistance under this part or under the Sup-
port for East European Democracy (SEED) Act of
1989 shall be included in such an analysis at least
once every 5 years. For each country, the analysis
shall—
‘‘(A) describe the specific objectives the
United States sought to achieve in providing
economic assistance, and specify the extent to
which those objectives were or were not
achieved;
‘‘(B) to the extent possible, be done on a
sector-by-sector basis and identify trends (both
favorable and unfavorable) within each sector
and, if relevant, identify any economic policy re-
forms conducive to sustainable economic growth
that were promoted by the assistance and the
progress being made by the country in adopting
economic policies that foster and enhance the
freedom and opportunity of individuals to par-
ticipate in economic growth in the country;
‘‘(C) as part of the context of United
States economic assistance, describe the amount
and nature of economic assistance provided by
other major donors during the preceding 3 to 5
fiscal years, set forth by the development sector
to the extent possible; and
‘‘(D) contain statistical and other informa-
tion necessary to evaluate the impact and effec-
tiveness of United States economic assistance
on development in the country.’’.
SEC. 103. ECONOMIC ASSISTANCE REFORM.
(a) BASIC OBJECTIVES.—Section 102 of the Foreign
Assistance Act of 1961 is amended to read as follows:
‘‘SEC. 102. BASIC OBJECTIVES OF ECONOMIC ASSISTANCE
PROGRAMS AND UNITED STATES DEVELOP-
MENT COOPERATION POLICY.
‘‘(a) FOUR BASIC OBJECTIVES.—The primary pur-
pose of United States economic assistance is the pro-
motion of broad based, sustainable, participatory develop-
ment, with particular focus on the poor. In pursuit of that
purpose, economic assistance programs to the extent speci-
fied in this Act, and United States economic cooperation
policy generally, shall have the following four basic objec-
tives, which are interrelated and mutually reinforcing:
‘‘(1) SUSTAINABLE ECONOMIC GROWTH.—Pro-
motion of broad based economic growth.
‘‘(2) SUSTAINABLE RESOURCE MANAGEMENT.—
Improvement of resource management designed to
bring about environmentally and economically sus-
tainable patterns of development.
‘‘(3) POVERTY
ALLEVIATION.—Alleviation of
the worst manifestations of poverty through the de-
velopment of human resource capacity.
‘‘(4) DEMOCRACY.—Promotion of democracy,
respect for human rights, and social and economic
pluralism.
‘‘(b) SUSTAINABLE ECONOMIC GROWTH.—
‘‘(1) RATIONALE.—Broad based, sustainable
economic growth is in the interest of the United
States because it permits countries to progress to-
ward economic self-reliance, to improve the living
standards of their citizens, and to increase inter-
national markets for trade and investment. Market-
oriented economic growth establishes the basis for
sustainable development and reinforces democratic
ideals and practices. Successful long-term develop-
ment cannot occur without broad based, sustainable
economic growth that enables the poor to increase
their incomes and access to productive resources and
services so that they can satisfy their basic needs
and lead lives of decency, dignity, and hope.
‘‘(2) ELABORATION ON OBJECTIVE.—(A) Imple-
mentation of the objective of promoting broad based
economic growth should recognize that economic, so-
cial, political, and environmental conditions vary
among countries. While taking account of such dif-
ferences, the economic assistance programs carried
out in furtherance of the four basic objectives set
forth in this section shall emphasize the following
principles:
‘‘(i) Security of economic rights for all citi-
zens without regard to sex, race, religion, lan-
guage, or social status, including the right to
own property, the right to fair return from
one’s labor, and the right to engage in produc-
tive use of available assets.
‘‘(ii) Economic policies based on free mar-
ket principles as a means for establishing prices
and for allocating goods and services.
‘‘(iii) Economic reforms that benefit or are
sensitive to and minimize adverse impact on the
poor.
‘‘(iv) Market base reforms—deregulation,
privatization, labor market reform, reduction in
barriers to the free flow of trade and invest-
ment—which increase the opportunity for all,
especially the poor, to participate in economic
activity.
‘‘(v) Government policies protecting eco-
nomic rights, fair and open markets, and the
fulfillment of basic human needs.
‘‘(vi) Adherence by governments to inter-
national 
economic 
agreements, 
particularly
those relating to free and fair trade practices
and to respect for worker rights.
‘‘(B) A primary test of the effectiveness of eco-
nomic assistance programs designed to promote
broad based economic growth is the extent to which
the poor and disenfranchised can participate in and
benefit from these programs and are thereby
brought into the development process.
‘‘(c) SUSTAINABLE RESOURCE MANAGEMENT.—
‘‘(1) RATIONALE.—The economic and social
well-being and the security of the United States and
other countries are affected by how the world’s envi-
ronment and physical resource base are managed.
Consumption patterns, systems of industrial and ag-
ricultural production, demographic trends, and the
manner of use of natural resources all impact on the
opportunities for long-term development and growth
and survival for all countries. Both developed and
developing countries share responsibility for the ra-
tional and sustainable management of natural re-
sources. Responsible management of physical re-
sources is necessary to insure the availability of re-
sources for future generations and to assure that the
burdens of improved resource management do not
fall disproportionately on the poor.
‘‘(2) ELABORATION OF OBJECTIVE.—(A) Sus-
tainable development is development that meets the
needs of the present without compromising the abil-
ity of future generations to meet their own needs.
Economic assistance programs authorized by this
title should assist countries to adopt policies and
programs that promote ecologically sound patterns
of growth. Improved resource management tailored
to the conditions and capabilities of the particular
developing countries should be an integral part of all
planning, programming, and reporting activities with
respect to economic assistance.
‘‘(B) Sustainable resource management should
be promoted through research and through the es-
tablishment and implementation of public policies
and programs that provide incentives for better long-
term management of resources and private and pub-
lic investment toward resource-conserving tech-
nologies of production in energy, agricultural, and
industrial production. To achieve this objective will
entail, among other things—
‘‘(i) more efficient and resource-conserving
systems of sustainable agricultural production,
with special emphasis on rain-fed agriculture,
maintenance of soil structure and fertility, and
minimization of soil erosion and soil and water
contamination;
‘‘(ii) adoption of appropriate use of fer-
tilizer and pesticides;
‘‘(iii) greater attention to forestry manage-
ment for sustainable yields, agroforestry, refor-
estation, and watershed conservation, including
better resource monitoring and assessment
systems;
‘‘(iv) improved water use management, in-
cluding watershed protection, sustainable and
efficient irrigation projects, and efforts to re-
duce costs and improve delivery of potable
water and sanitation systems for both urban
and rural areas;
‘‘(v) more systematic collection, preserva-
tion, and sharing of original and evolved plant
and animal genetic material, including preserva-
tion of ecosystems and natural habitats;
‘‘(vi) attention to more efficient manage-
ment of existing energy systems, to the pro-
motion of increased use of least-cost energy re-
source planning procedures, and to the develop-
ment of economically viable and more efficient
systems of energy production and consumption
that seek to maximize resource conservation;
‘‘(vii) attention to resource conserving sys-
tems of urban development and industrializa-
tion that make efficient use of energy and natu-
ral resources, minimize the adverse effects of
air and water pollution, facilitate safe waste
disposal, including toxic wastes, and provide for
improved environmental health and safety of
the urban and surrounding rural populations;
‘‘(viii) efforts to analyze and to reduce
man-made contributions to changes in the glob-
al climate, including factors that may be con-
tributing to global warming in the Earth’s at-
mosphere; and
‘‘(ix) greater attention to the relationships
among demographic pressures, poverty, and en-
vironmental degradation.
‘‘(C) Growth that is not environmentally sus-
tainable cannot be economically sustainable in the
long run. Improved resource management is a criti-
cal element of a balanced pattern of development.
‘‘(d) POVERTY ALLEVIATION.—
‘‘(1) RATIONALE.—It is in the interest of the
United States to assist developing countries to
achieve patterns of growth and development that will
measurably and sustainably alleviate the worst mani-
festations of poverty in rural and urban areas and
allow all people, especially those with low incomes, to
lead economically and socially productive lives. As a
people endowed with a spirit of humanitarian gener-
osity, United States citizens have long demonstrated
a moral imperative to help those in need. Further,
peace and stability in the world cannot be achieved
without economic development that also alleviates
the worst manifestations of poverty.
‘‘(2) ELABORATION OF OBJECTIVE.—(A) Broad
based economic growth is necessary for the allevi-
ation of the worst manifestations of poverty. Con-
versely, neither growth nor the alleviation of poverty
can be sustained unless all people, especially the
poor, have the basic assets and capabilities that fos-
ter the exercise of choice and participation in the
economic, social, and political life of the country.
Women, female children, and children of poor people
have been especially disadvantaged in their access to
these assets. Governments, together with nongovern-
mental organizations and international and multilat-
eral organizations, should give special attention to
alleviating the worst manifestations of poverty
among these groups. Long-term poverty alleviation
depends on patterns of broad based economic growth
and the productivity generated by investments in the
expansion of human well-being, capacity, and choice.
‘‘(B) To achieve the objective of alleviating the
worst manifestations of poverty will entail, among
other things—
‘‘(i) the expansion of education to all seg-
ments of the society, with particular attention
to universal access to basic education, to sus-
tainable improvement in the quality and diver-
sity of educational opportunity, and to female
education at all age levels;
‘‘(ii) improvement in coverage, quality, and
sustainability of health services, with special
emphasis on universal access to primary health
care, epidemiological detection and prevention
programs, and sustainable systems of health
care for mothers and children;
‘‘(iii) a consistent program of support for
systematic expansion of voluntary family plan-
ning services, with special emphasis on the role
of the private voluntary and commercial sectors
as providers of such services and on the devel-
opment of more effective, acceptable family
planning technologies appropriate to the condi-
tions of developing countries;
‘‘(iv) support for activities that enhance se-
cure access of all to adequate food and nutri-
tion derived from sustainable agricultural pro-
duction, including the effectiveness and develop-
ment contribution of food assistance made
available under the Agricultural Trade Develop-
ment and Assistance Act of 1954 and other
food assistance programs; and
‘‘(v) support for activities that enhance
universal access to safe drinking water, basic
sanitation, and basic shelter necessary for
health.
‘‘(e) DEMOCRACY.—
‘‘(1) RATIONALE.—The promotion of democracy
throughout the world is in the basic interest of the
United States. Democratic development, political
pluralism, and respect for internationally recognized
human rights are intrinsically linked to economic
and social progress. Democracy can only be sus-
tained in a society in which the legitimacy of the
government rests firmly on the expressed consent of
the governed; the rights of all citizens, including mi-
norities, are respected and protected; and there is ef-
fective civilian control over the military and security
forces. It is in the interest of the United States and
in keeping with our democratic traditions to support
democratic aspirations and values, foster the spread
of democratic institutions, and encourage universal
respect for civil and political liberties.
‘‘(2) ELABORATION ON OBJECTIVE.—(A) Fur-
therance of the basic objective of democracy requires
that the United States promote—
‘‘(i) the ability of all citizens of a country
to organize and associate freely and independ-
ently of the government;
‘‘(ii) the ability of all citizens to freely
choose their government, to hold that govern-
ment accountable, and to participate in political
life;
‘‘(iii) increased respect for internationally
recognized human rights and the rule of law;
‘‘(iv) respect for the diversity among the
citizens of a country; and
‘‘(v) acceptance of and respect for civilian
authority by all elements of society.
‘‘(B) An essential ingredient of development is
the growth of indigenous nongovernmental organiza-
tions that are committed to democratic values and
active in the promotion of democracy. United States
efforts to foster democratic pluralism and build
democratic institutions are most likely to create en-
during bonds of democratic cooperation when United
States nongovernmental organizations are involved
in strengthening the capacity of nongovernmental or-
ganizations in other countries.
‘‘(C) Democracy requires honest and open
participatory government. United States assistance
should help governments to establish processes of ac-
countability and transparency to eliminate corrup-
tion and abuses of power and assist nongovern-
mental organizations to develop the capability to
monitor the government’s performance.
‘‘(D) With regard to economic assistance under
this Act or the Support for East European Democ-
racy (SEED) Act of 1989 for countries that are in
transition from communism to democracy, it shall be
the policy of the United States, to the extent fea-
sible, to provide assistance directly to democratically
elected governments of states whose incorporation
into the Union of Soviet Socialist Republics has
never been recognized by the United States: Pro-
vided, That economic assistance to Yugoslavia other-
wise authorized by law shall not be prohibited as a
consequence of this provision. As used in this sub-
paragraph, the term ‘democratically elected’ means
elected through open, free, and fair elections. Noth-
ing in this paragraph shall be construed to preclude
assistance to agencies of such federal governments
that promote democratic reforms, human rights, the
rule of law, and/or market oriented reforms, pro-
vided that funds are not provided directly to any
such agency.
‘‘(f) EFFECTIVE USES OF ASSISTANCE.—
‘‘(1) 
BENEFICIARY
COUNTRIES.—Assistance
furnished under this title should be concentrated in
countries that will make the most effective use of
that assistance in promoting the four basic objec-
tives set forth in subsection (a).
‘‘(2) ASSISTANCE WITHIN COUNTRIES.—Activi-
ties should be undertaken in regions of recipient
countries that offer potential for successful develop-
ment and should not be undertaken if the relevant
sector or national economic policies of the country
are clearly unfavorable to the sustainability or
broadest possible impact of the assisted program or
project.
‘‘(3) TYPES OF ACTIVITIES.—Assistance should
focus on those types of activities that the United
States can provide most effectively.’’.
(b) REPEAL
OF DEVELOPMENT ASSISTANCE AU-
THORITIES.—Effective October 1, 1995, sections 103
through 107 of the Foreign Assistance Act of 1961 are
repealed.
TITLE II—AUTHORIZATIONS FOR
FOREIGN ASSISTANCE PROGRAMS
SEC. 1201. AUTHORIZATIONS OF APPROPRIATIONS FOR FIS-
CAL YEAR 1994.
(a) ECONOMIC ASSISTANCE.—There are authorized
to be appropriated for fiscal year 1994 the following
amounts for the following purposes:
(1) 
DEVELOPMENT
ASSISTANCE
FUND.—
$850,000,000 to carry out sections 103 through 106
of the Foreign Assistance Act of 1961.
(2) 
POPULATION, 
DEVELOPMENT
ASSIST-
ANCE.—$395,000,000 to carry out section 104(b) of
the Foreign Assistance Act of 1961.
(3) 
DEVELOPMENT
FUND
FOR
AFRICA.—
$900,000,000 to carry out chapter 10 of part I of
the Foreign Assistance Act of 1961.
(4) INTERNATIONAL DISASTER ASSISTANCE.—
$148,965,000 to carry out section 491 of the For-
eign Assistance Act of 1961.
(5) AMERICAN
SCHOOLS
AND
HOSPITALS.—
$35,000,000 to carry out section 214 of the Foreign
Assistance Act of 1961.
(6) MULTILATERAL
ASSISTANCE
INITIATIVE
FOR THE PHILIPPINES.—$30,000,000 for assistance
for the Philippines under chapter 4 of part I of the
Foreign Assistance Act of 1961.
(7) ASSISTANCE
FOR
EASTERN
EUROPE
AND
THE BALTIC STATES.—$400,000,000 for economic
assistance for Eastern Europe and the Baltic states
under the Foreign Assistance Act of 1961 and the
Support for East European Democracy (SEED) Act
of 1989.
(8) 
ASSISTANCE
FOR
THE
INDEPENDENT
STATES
OF
THE
FORMER
SOVIET
UNION.—
$903,820,000 to carry out chapter 11 of part I of
the Foreign Assistance Act of 1961 and to carry out
exchanges and training and similar programs under
section 807 of the Freedom for Russia and Emerg-