quent to the termination of assistance a democratically
elected government has taken office.
TRANSFERS BETWEEN ACCOUNTS
SEC. 509. None of the funds made available by this
Act may be obligated under an appropriation account to
which they were not appropriated, except for transfers
specifically provided for in this Act, unless the President,
prior to the exercise of any authority contained in the For-
eign Assistance Act of 1961 to transfer funds, consults
with and provides a written policy justification to the
Committees on Appropriations of the House of Represent-
atives and the Senate: Provided, That the exercise of such
authority shall be subject to the regular notification proce-
dures of the Committees on Appropriations.
DEOBLIGATION/REOBLIGATION AUTHORITY
SEC. 510. (a) Amounts certified pursuant to section
1311 of the Supplemental Appropriations Act, 1955, as
having been obligated against appropriations heretofore
made under the authority of the Foreign Assistance Act
of 1961 for the same general purpose as any of the head-
ings under title II of this Act are, if deobligated, hereby
continued available for the same period as the respective
appropriations under such headings or until September
30, 1998, whichever is later, and for the same general pur-
pose, and for countries within the same region as origi-
nally obligated: Provided, That the Appropriations Com-
mittees of both Houses of the Congress are notified fifteen
days in advance of the reobligation of such funds in ac-
cordance with regular notification procedures of the Com-
mittees on Appropriations.
(b) Obligated balances of funds appropriated to carry
out section 23 of the Arms Export Control Act as of the
end of the fiscal year immediately preceding the current
fiscal year are, if deobligated, hereby continued available
during the current fiscal year for the same purpose under
any authority applicable to such appropriations under this
Act: Provided, That the authority of this subsection may
not be used in fiscal year 1998.
AVAILABILITY OF FUNDS
SEC. 511. No part of any appropriation contained in
this Act shall remain available for obligation after the ex-
piration of the current fiscal year unless expressly so pro-
vided in this Act: Provided, That funds appropriated for
the purposes of chapters 1, 8, and 11 of part I, section
667, and chapter 4 of part II of the Foreign Assistance
Act of 1961, as amended, and funds provided under the
heading ‘‘Assistance for Eastern Europe and the Baltic
States’’, shall remain available until expended if such
funds are initially obligated before the expiration of their
respective periods of availability contained in this Act:
Provided further, That, notwithstanding any other provi-
sion of this Act, any funds made available for the purposes
of chapter 1 of part I and chapter 4 of part II of the
Foreign Assistance Act of 1961 which are allocated for
cash disbursements in order to address balance of pay-
ments or economic policy reform objectives, shall remain
available until expended: Provided further, That the report
required by section 653(a) of the Foreign Assistance Act
of 1961 shall designate for each country, to the extent
known at the time of submission of such report, those
funds allocated for cash disbursement for balance of pay-
ment and economic policy reform purposes.
LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT
SEC. 512. No part of any appropriation contained in
this Act shall be used to furnish assistance to any country
which is in default during a period in excess of one cal-
endar year in payment to the United States of principal
or interest on any loan made to such country by the Unit-
ed States pursuant to a program for which funds are ap-
propriated under this Act: Provided, That this section and
section 620(q) of the Foreign Assistance Act of 1961 shall
not apply to funds made available in this Act or during
the current fiscal year for Nicaragua and Liberia, and for
any narcotics-related assistance for Colombia, Bolivia, and
Peru authorized by the Foreign Assistance Act of 1961
or the Arms Export Control Act.
COMMERCE AND TRADE
SEC. 513. (a) None of the funds appropriated or
made available pursuant to this Act for direct assistance
and none of the funds otherwise made available pursuant
to this Act to the Export-Import Bank and the Overseas
Private Investment Corporation shall be obligated or ex-
pended to finance any loan, any assistance or any other
financial commitments for establishing or expanding pro-
duction of any commodity for export by any country other
than the United States, if the commodity is likely to be
in surplus on world markets at the time the resulting pro-
ductive capacity is expected to become operative and if the
assistance will cause substantial injury to United States
producers of the same, similar, or competing commodity:
Provided, That such prohibition shall not apply to the Ex-
port-Import Bank if in the judgment of its Board of Direc-
tors the benefits to industry and employment in the Unit-
ed States are likely to outweigh the injury to United
States producers of the same, similar, or competing com-
modity, and the Chairman of the Board so notifies the
Committees on Appropriations.
(b) None of the funds appropriated by this or any
other Act to carry out chapter 1 of part I of the Foreign
Assistance Act of 1961 shall be available for any testing
or breeding feasibility study, variety improvement or intro-
duction, consultancy, publication, conference, or training
in connection with the growth or production in a foreign
country of an agricultural commodity for export which
would compete with a similar commodity grown or pro-
duced in the United States: Provided, That this subsection
shall not prohibit—
(1) activities designed to increase food security
in developing countries where such activities will not
have a significant impact in the export of agricul-
tural commodities of the United States; or
(2) research activities intended primarily to
benefit American producers.
SURPLUS COMMODITIES
SEC. 514. The Secretary of the Treasury shall in-
struct the United States Executive Directors of the Inter-
national Bank for Reconstruction and Development, the
International Development Association, the International
Finance Corporation, the Inter-American Development
Bank, the International Monetary Fund, the Asian Devel-
opment Bank, the Inter-American Investment Corpora-
tion, the North American Development Bank, the Euro-
pean Bank for Reconstruction and Development, the Afri-
can Development Bank, and the African Development
Fund to use the voice and vote of the United States to
oppose any assistance by these institutions, using funds
appropriated or made available pursuant to this Act, for
the production or extraction of any commodity or mineral
for export, if it is in surplus on world markets and if the
assistance will cause substantial injury to United States
producers of the same, similar, or competing commodity.
NOTIFICATION REQUIREMENTS
SEC. 515. For the purposes of providing the Execu-
tive Branch with the necessary administrative flexibility,
none of the funds made available under this Act for ‘‘Child
Survival and Disease Programs Fund’’, ‘‘Development As-
sistance’’, ‘‘International organizations and programs’’,
‘‘Trade and Development Agency’’, ‘‘International narcot-
ics control’’, ‘‘Assistance for Eastern Europe and the Bal-
tic States’’, ‘‘Assistance for the New Independent States
of the Former Soviet Union’’, ‘‘Economic Support Fund’’,
‘‘Peacekeeping operations’’, ‘‘Operating expenses of the
Agency for International Development’’, ‘‘Operating ex-
penses of the Agency for International Development Office
of Inspector General’’, ‘‘Nonproliferation, anti-terrorism,
demining and related programs’’, ‘‘Foreign Military Fi-
nancing Program’’, ‘‘International military education and
training’’, ‘‘Inter-American Foundation’’, ‘‘African Devel-
opment Foundation’’, ‘‘Peace Corps’’, ‘‘Migration and ref-
ugee assistance’’, shall be available for obligation for ac-
tivities, programs, projects, type of materiel assistance,
countries, or other operations not justified or in excess of
the amount justified to the Appropriations Committees for
obligation under any of these specific headings unless the
Appropriations Committees of both Houses of Congress
are previously notified fifteen days in advance: Provided,
That the President shall not enter into any commitment
of funds appropriated for the purposes of section 23 of
the Arms Export Control Act for the provision of major
defense equipment, other than conventional ammunition,
or other major defense items defined to be aircraft, ships,
missiles, or combat vehicles, not previously justified to
Congress or 20 per centum in excess of the quantities jus-
tified to Congress unless the Committees on Appropria-
tions are notified fifteen days in advance of such commit-
ment: Provided further, That this section shall not apply
to any reprogramming for an activity, program, or project
under chapter 1 of part I of the Foreign Assistance Act
of 1961 of less than 10 per centum of the amount pre-
viously justified to the Congress for obligation for such
activity, program, or project for the current fiscal year:
Provided further, That the requirements of this section or
any similar provision of this Act or any other Act, includ-
ing any prior Act requiring notification in accordance with
the regular notification procedures of the Committees on
Appropriations, may be waived if failure to do so would
pose a substantial risk to human health or welfare: Pro-
vided further, That in case of any such waiver, notification
to the Congress, or the appropriate congressional commit-
tees, shall be provided as early as practicable, but in no
event later than three days after taking the action to
which such notification requirement was applicable, in the
context of the circumstances necessitating such waiver:
Provided further, That any notification provided pursuant
to such a waiver shall contain an explanation of the emer-
gency circumstances.
Drawdowns made pursuant to section 506(a)(2) of
the Foreign Assistance Act of 1961 shall be subject to the
regular notification procedures of the Committees on Ap-
propriations.
LIMITATION ON AVAILABILITY OF FUNDS FOR
INTERNATIONAL ORGANIZATIONS AND PROGRAMS
SEC. 516. Notwithstanding any other provision of law
or of this Act, none of the funds provided for ‘‘Inter-
national Organizations and Programs’’ shall be available
for the United States proportionate share, in accordance
with section 307(c) of the Foreign Assistance Act of 1961,
for any programs identified in section 307, or for Libya,
Iran, or, at the discretion of the President, Communist
countries listed in section 620(f) of the Foreign Assistance
Act of 1961, as amended: Provided, That, subject to the
regular notification procedures of the Committees on Ap-
propriations, funds appropriated under this Act or any
previously enacted Act making appropriations for foreign
operations, export financing, and related programs, which
are returned or not made available for organizations and
programs because of the implementation of this section
or any similar provision of law, shall remain available for
obligation through September 30, 1999.
ECONOMIC SUPPORT FUND ASSISTANCE FOR ISRAEL
SEC. 517. The Congress finds that progress on the
peace process in the Middle East is vitally important to
United States security interests in the region. The Con-
gress recognizes that, in fulfilling its obligations under the
Treaty of Peace Between the Arab Republic of Egypt and
the State of Israel, done at Washington on March 26,
1979, Israel incurred severe economic burdens. Further-
more, the Congress recognizes that an economically and
militarily secure Israel serves the security interests of the
United States, for a secure Israel is an Israel which has
the incentive and confidence to continue pursuing the
peace process. Therefore, the Congress declares that, sub-
ject to the availability of appropriations, it is the policy
and the intention of the United States that the funds pro-
vided in annual appropriations for the Economic Support
Fund which are allocated to Israel shall not be less than
the annual debt repayment (interest and principal) from
Israel to the United States Government in recognition that
such a principle serves United States interests in the re-
gion.
PROHIBITION ON FUNDING FOR ABORTIONS AND
INVOLUNTARY STERILIZATION
SEC. 518. None of the funds made available to carry
out part I of the Foreign Assistance Act of 1961, as
amended, may be used to pay for the performance of abor-
tions as a method of family planning or to motivate or
coerce any person to practice abortions. None of the funds
made available to carry out part I of the Foreign Assist-
ance Act of 1961, as amended, may be used to pay for
the performance of involuntary sterilization as a method
of family planning or to coerce or provide any financial
incentive to any person to undergo sterilizations. None of
the funds made available to carry out part I of the Foreign
Assistance Act of 1961, as amended, may be used to pay
for any biomedical research which relates in whole or in
part, to methods of, or the performance of, abortions or
involuntary sterilization as a means of family planning.
None of the funds made available to carry out part I of
the Foreign Assistance Act of 1961, as amended, may be
obligated or expended for any country or organization if
the President certifies that the use of these funds by any
such country or organization would violate any of the
above provisions related to abortions and involuntary steri-
lizations: Provided, That none of the funds made available
under this Act may be used to lobby for or against abor-
tion.
AUTHORIZATION FOR POPULATION PLANNING
SEC. 518A. Not to exceed $385,000,000 of the funds
appropriated in title II of this Act may be made available
for population planning activities or other population as-
sistance.
REPORTING REQUIREMENT
SEC. 519. The President shall submit to the Commit-
tees on Appropriations the reports required by section
25(a)(1) of the Arms Export Control Act.
SPECIAL NOTIFICATION REQUIREMENTS
SEC. 520. None of the funds appropriated in this Act
shall be obligated or expended for Colombia, Haiti, Libe-
ria, Pakistan, Panama, Peru, Russia, Serbia, Sudan, or
the Democratic Republic of Congo except as provided
through the regular notification procedures of the Com-
mittees on Appropriations.
DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY
SEC. 521. For the purpose of this Act, ‘‘program,
project, and activity’’ shall be defined at the Appropria-
tions Act account level and shall include all Appropriations
and Authorizations Acts earmarks, ceilings, and limita-
tions with the exception that for the following accounts:
Economic Support Fund and Foreign Military Financing
Program, ‘‘program, project, and activity’’ shall also be
considered to include country, regional, and central pro-
gram level funding within each such account; for the devel-
opment assistance accounts of the Agency for Inter-
national Development ‘‘program, project, and activity’’
shall also be considered to include central program level
funding, either as (1) justified to the Congress, or (2) allo-
cated by the executive branch in accordance with a report,
to be provided to the Committees on Appropriations within
thirty days of enactment of this Act, as required by section
653(a) of the Foreign Assistance Act of 1961.
CHILD SURVIVAL AND AIDS ACTIVITIES
SEC. 522. Up to $8,000,000 of the funds made avail-
able by this Act for assistance for family planning, health,
child survival, and AIDS, may be used to reimburse Unit-
ed States Government agencies, agencies of State govern-
ments, institutions of higher learning, and private and vol-
untary organizations for the full cost of individuals (in-
cluding for the personal services of such individuals) de-
tailed or assigned to, or contracted by, as the case may
be, the Agency for International Development for the pur-
pose of carrying out family planning activities, child sur-
vival activities, and activities relating to research on, and
the treatment and control of acquired immune deficiency
syndrome in developing countries: Provided, That funds
appropriated by this Act that are made available for child
survival activities or activities relating to research on, and
the treatment and control of, acquired immune deficiency
syndrome may be made available notwithstanding any pro-
vision of law that restricts assistance to foreign countries:
Provided further, That funds appropriated by this Act that
are made available for family planning activities may be
made available notwithstanding section 512 of this Act
and section 620(q) of the Foreign Assistance Act of 1961.
PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN
COUNTRIES
SEC. 523. None of the funds appropriated or other-
wise 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 Peo-
ple’s Republic of China, unless the President of the United
States certifies that the withholding of these funds is con-
trary to the national interest of the United States.
RECIPROCAL LEASING
SEC. 524. Section 61(a) of the Arms Export Control
Act is amended by striking out ‘‘1997’’ and inserting in
lieu thereof ‘‘1998’’.
NOTIFICATION ON EXCESS DEFENSE EQUIPMENT
SEC. 525. Prior to providing excess Department of
Defense articles in accordance with section 516(a) of the
Foreign Assistance Act of 1961, the Department of De-
fense shall notify the Committees on Appropriations to the
same extent and under the same conditions as are other
committees pursuant to subsection (c) of that section: Pro-
vided, 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 accordance with the regular notification
procedures of such Committees: Provided further, That
such Committees shall also be informed of the original ac-
quisition cost of such defense articles.
AUTHORIZATION REQUIREMENT
SEC. 526. Funds appropriated by this Act may be
obligated and expended subject to 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. 527. (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 enact-
ment of this Act, shall not be made available to any coun-
try 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 fifteen days before the waiv-
er takes effect, shall notify the Committees on Appropria-
tions of the waiver (including the justification for the waiv-
er) in accordance with the regular notification procedures
of the Committees on Appropriations.
COMMERCIAL LEASING OF DEFENSE ARTICLES
SEC. 528. Notwithstanding any other provision of
law, and subject to the regular notification procedures of
the Committees on Appropriations, the authority of sec-
tion 23(a) of the Arms Export Control Act may be used
to provide financing to Israel, Egypt and NATO and
major non-NATO allies for the procurement by leasing
(including leasing with an option to purchase) of defense
articles from United States commercial suppliers, not in-
cluding Major Defense Equipment (other than helicopters
and other types of aircraft having possible civilian applica-
tion), if the President determines that there are compel-
ling foreign policy or national security reasons for those
defense articles being provided by commercial lease rather
than by government-to-government sale under such Act.
COMPETITIVE INSURANCE
SEC. 528A. 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 oppor-
tunity to bid for insurance when such insurance is nec-
essary or appropriate.
STINGERS IN THE PERSIAN GULF REGION
SEC. 529. Except as provided in section 581 of the
Foreign Operations, Export Financing, and Related Pro-
grams 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 Ex-
port Control Act or chapter 2 of part II of the Foreign
Assistance Act of 1961.
DEBT-FOR-DEVELOPMENT
SEC. 530. In order to enhance the continued partici-
pation of nongovernmental organizations in economic as-
sistance activities under the Foreign Assistance Act of
1961, including endowments, debt-for-development and
debt-for-nature exchanges, a nongovernmental organiza-
tion 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 currencies which accrue to that organization as
a result of economic assistance provided under title II of
this Act and any interest earned on such investment shall
be used for the purpose for which the assistance was pro-
vided to that organization.
SEPARATE ACCOUNTS
SEC. 531. (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 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 govern-
ment the responsibilities of the Agency for Inter-
national Development and that government to mon-
itor 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
deposited 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 necessary
steps to ensure that the equivalent of the local currencies
disbursed pursuant to subsection (a)(2)(A) from the sepa-
rate 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 chap-
ters 1 or 10 of part I or chapter 4 of part II (as the case
may be), any unencumbered balances of funds which re-
main in a separate account established pursuant to sub-
section (a) shall be disposed of for such purposes as may
be agreed to 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 pro-
visos contained under the heading ‘‘Sub-Saharan Africa,
Development 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
Foreign Assistance Act of 1961.
(6) REPORTING REQUIREMENT.—The Administrator
of the Agency for International Development shall report
on an annual basis as part of the justification documents
submitted to the Committees on Appropriations on the use
of local currencies for the administrative requirements of
the United States Government as authorized in subsection
(a)(2)(B), and such report shall include the amount of
local currency (and United States dollar equivalent) used
and/or to be used for such purpose in each applicable
country.
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—
(1) If assistance is made available to the government of
a foreign 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 assist-
ance, that country shall be required to maintain such
funds in a separate account and not commingle them with
any other funds.
(2) APPLICABILITY
OF
OTHER
PROVISIONS
OF
LAW.—Such funds may be obligated and expended not-
withstanding 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 Res-
olution 648 (H. Report No. 98–1159).
(3) NOTIFICATION.—At least fifteen days prior to ob-
ligating any such cash transfer or nonproject sector assist-
ance, the President shall submit a notification through the
regular notification procedures of the Committees on Ap-
propriations, 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
description 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 Commit-
tees on Appropriations.
COMPENSATION FOR UNITED STATES EXECUTIVE
DIRECTORS TO INTERNATIONAL FINANCIAL INSTITUTIONS
SEC. 532. (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
institution 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 institu-
tion at a rate in excess of the rate provided for an individ-
ual occupying a position at level V of the Executive Sched-
ule 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 De-
velopment Fund, the African Development Bank, the Afri-
can Development Fund, the International Monetary Fund,
the North American Development Bank, and the Euro-
pean Bank for Reconstruction and Development.
COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST
IRAQ
SEC. 533. None of the funds appropriated or other-
wise 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 In-
vestment Corporation) or the Arms Export Control Act
may be used to provide assistance to any country that is
not in compliance with the United Nations Security Coun-
cil sanctions against Iraq 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
(3) the assistance to be provided will be human-
itarian assistance for foreign nationals who have fled
Iraq and Kuwait.
COMPETITIVE PRICING FOR SALES OF DEFENSE
ARTICLES
SEC. 534. Direct costs associated with meeting a for-
eign customer’s additional or unique requirements will
continue to be allowable under contracts under section
22(d) of the Arms Export Control Act. Loadings applica-
ble to such direct costs shall be permitted at the same
rates applicable to procurement of like items purchased
by the Department of Defense for its own use.
EXTENSION OF AUTHORITY TO OBLIGATE FUNDS TO
CLOSE THE SPECIAL DEFENSE ACQUISITION FUND
SEC. 535. Title III of Public Law 103–306 is amend-
ed under the heading ‘‘Special Defense Acquisition Fund’’
by striking ‘‘1998’’ and inserting ‘‘2000’’.
CASH FLOW FINANCING
SEC. 536. 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
purchase agreement, or any amendment thereto, for a pro-
curement 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
procedures to the Committees on Appropriations.
AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMER-
ICAN
FOUNDATION
AND
THE
AFRICAN
DEVELOP-
MENT FOUNDATION
SEC. 537. 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-
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. 538. 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 in-
ducement is likely to reduce the number of employ-
ees 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 process-
ing 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 car-
ried out within that zone or area, unless the Presi-
dent determines 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-
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 commensu-
rate 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.
SPECIAL AUTHORITIES
SEC. 539. (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,
displaced 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 Cam-
bodia shall be subject to the provisions of section 531(e)
of the Foreign Assistance Act of 1961 and section 906
of the International Security and Development Coopera-
tion Act of 1985.
(b) Funds appropriated by this Act to carry out the
provisions of sections 103 through 106 of the Foreign As-
sistance Act of 1961 may be used, notwithstanding any
other provision of law, for the purpose of supporting tropi-
cal forestry and energy programs aimed at reducing emis-
sions of greenhouse gases, and for the purpose of support-
ing biodiversity conservation activities: Provided, That
such assistance shall be subject to sections 116, 502B, and
620A of the Foreign Assistance Act of 1961.
(c) The Agency for International Development may
employ personal services contractors, notwithstanding any
other provision of law, for the purpose of administering
programs for the West Bank and Gaza.
POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT
OF ISRAEL
SEC. 540. 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 Is-
rael; and
(2) the decision by the Arab League in 1997 to
reinstate the boycott against Israel was deeply trou-
bling and disappointing; and
(3) the Arab League should immediately re-
scind its decision on the boycott and its members
should develop normal relations with their neighbor
Israel; and
(4) 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
boycotts of American firms that have commer-
cial 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 commer-
cial relations with Israel and to expand the
process of normalizing ties between Arab
League countries and Israel; and
(D) encourage the allies and trading part-
ners of the United States to enact laws prohib-
iting businesses from complying with the boy-
cott and penalizing businesses that do comply.
ANTI-NARCOTICS ACTIVITIES
SEC. 541. (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 Car-
ibbean and in other regions consistent with the provisions
of section 534(b) 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 section 534(c) and
the second and third sentences of section 534(e) of the
Foreign Assistance Act of 1961. Funds made available
pursuant to subsection (a) for Bolivia, Colombia, and Peru
may be made available notwithstanding section 534(c) and
the second sentence of section 534(e) of the Foreign As-
sistance Act of 1961.
ELIGIBILITY FOR ASSISTANCE
SEC. 542. (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
appropriated by this Act to carry out the provisions of
chapters 1 and 10 and 11 of part I, and chapter 4 of
part II, of the Foreign Assistance Act of 1961: Provided,
That the President shall take into consideration, in any
case in which a restriction on assistance would be applica-
ble but for this subsection, whether assistance in support
of programs of nongovernmental organizations is in the
national interest of the United States: Provided further,
That before using the authority of this subsection to fur-
nish assistance in support of programs of nongovern-
mental organizations, the President shall notify the Com-
mittees on Appropriations under the regular notification
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 abor-
tion or involuntary sterilizations contained in this or any
other Act.
(b) PUBLIC LAW 480.—During fiscal year 1998, re-
strictions contained in this or any other Act with respect
to assistance for a country shall not be construed to re-
strict assistance under the Agricultural Trade Develop-
ment 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 reg-
ular notification procedures of the Committees on Appro-
priations.
(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
international terrorism; or
(2) with respect to section 116 of the Foreign
Assistance Act of 1961 or any comparable provision
of law prohibiting assistance to countries that violate
internationally recognized human rights.
EARMARKS
SEC. 543. (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
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 sig-
nificantly reduced its military or economic cooperation
with the United States since enactment of the Foreign Op-
erations, Export Financing, and Related Programs Appro-
priations Act, 1991; however, before exercising the author-
ity of this subsection with regard to a base rights or base
access country which has significantly reduced its military
or economic cooperation with the United States, the Presi-
dent shall consult with, and shall provide a written policy
justification to the Committees on Appropriations: Pro-
vided, That any such reprogramming shall be subject to
the regular notification procedures of the Committees on
Appropriations: Provided further, That assistance that is
reprogrammed pursuant to this subsection shall be made
available under the same terms and conditions as origi-
nally provided.
(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 par-
ticular programs or activities by this or any other Act shall
be extended for an additional fiscal year if the Adminis-
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. 544. Ceilings and earmarks contained in this
Act shall not be applicable to funds or authorities appro-
priated or otherwise made available by any subsequent Act
unless such Act specifically so directs.
PROHIBITION ON PUBLICITY OR PROPAGANDA
SEC. 545. 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 $500,000 may be made available to carry
out the provisions of section 316 of Public Law 96–533.
USE OF AMERICAN RESOURCES
SEC. 546. To the maximum extent possible, assist-
ance provided under this Act should make full use of
American resources, including commodities, products, and
services.
PROHIBITION OF PAYMENTS TO UNITED NATIONS
MEMBERS
SEC. 547. 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 mem-
ber of the United Nations.
CONSULTING SERVICES
SEC. 548. The expenditure of any appropriation
under this Act for any consulting service through procure-
ment contract, pursuant to section 3109 of title 5, United
States Code, shall be limited to those contracts where such
expenditures are a matter of public record and available
for public inspection, except where otherwise provided
under existing law, or under existing Executive order pur-
suant to existing law.
PRIVATE VOLUNTARY ORGANIZATIONS—DOCUMENTATION
SEC. 549. None of the funds appropriated or made
available pursuant to this Act shall be available to a pri-
vate voluntary organization which fails to provide upon
timely request any document, file, or record necessary to
the auditing requirements of the Agency for International
Development.
PROHIBITION
ON
ASSISTANCE
TO
FOREIGN
GOVERN-
MENTS
THAT
EXPORT
LETHAL
MILITARY
EQUIP-
MENT TO COUNTRIES SUPPORTING INTERNATIONAL
TERRORISM
SEC. 550. (a) None of the funds appropriated or oth-
erwise 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 for-
eign government shall terminate 12 months after that gov-
ernment ceases to provide such military equipment. This
section applies with respect to lethal military equipment
provided under a contract entered into after April 24,
1996.
(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 exer-
cised, the President shall submit to the appropriate con-
gressional committees a report with respect to the furnish-
ing of such assistance. Any such report shall include a de-
tailed explanation of the assistance estimated to be pro-
vided, including the estimated dollar amount of such as-
sistance, and an explanation of how the assistance fur-
thers United States national interests.
WITHHOLDING OF ASSISTANCE FOR PARKING FINES
OWED BY FOREIGN COUNTRIES
SEC. 551. (a) IN GENERAL.—Of the funds made
available for a foreign country under part I of the Foreign
Assistance Act of 1961, an amount equivalent to 110 per-
cent of the total unpaid fully adjudicated parking fines
and penalties 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 Sec-
retary of State certifies and reports in writing to the ap-
propriate congressional 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
Appropriations 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. 552. None of the funds appropriated by this Act
may be obligated for assistance for the Palestine Libera-
tion Organization for the West Bank and Gaza unless the
President has exercised the authority under section 604(a)
of the Middle East Peace Facilitation Act of 1995 (title
VI of Public Law 104–107) or any other legislation to sus-
pend or make inapplicable section 307 of the Foreign As-
sistance Act of 1961 and that suspension is still in effect:
Provided, That if the President fails to make the certifi-
cation 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 Lib-
eration Organization for the West Bank and Gaza.
EXPORT FINANCING TRANSFER AUTHORITIES
SEC. 553. Not to exceed 5 percent of any appropria-
tion other than for administrative expenses made available
for fiscal year 1998 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 appropriation, except as otherwise specifically pro-
vided, shall be increased by more than 25 percent by any
such transfer: Provided, That the exercise of such author-
ity shall be subject to the regular notification procedures
of the Committees on Appropriations.
WAR CRIMES TRIBUNALS
SEC. 554. 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 President may direct a drawdown pursuant to sec-
tion 552(c) of the Foreign Assistance Act of 1961, as
amended, of up to $25,000,000 of commodities and serv-
ices for the United Nations War Crimes Tribunal estab-
lished with regard to the former Yugoslavia by the United
Nations Security Council or such other tribunals or com-
missions as the Council may establish to deal with such
violations, without regard to the ceiling limitation con-
tained in paragraph (2) thereof: Provided, That the deter-
mination required under this section shall be in lieu of
any determinations otherwise 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 information regarding alle-
gations of genocide or other violations of international law
in the former Yugoslavia and to furnish that information
to the United Nations War Crimes Tribunal for the former
Yugoslavia.
LANDMINES
SEC. 555. Notwithstanding any other provision of
law, demining equipment available to the Agency for Inter-
national Development and the Department of State 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.
RESTRICTIONS CONCERNING THE PALESTINIAN
AUTHORITY
SEC. 556. None of the funds appropriated by this Act
may be obligated or expended to create in any part of Je-
rusalem a new office of any department or agency of the
United States Government for the purpose of conducting
official United States Government business with the Pal-
estinian Authority over Gaza and Jericho or any successor
Palestinian governing entity provided for in the Israel-
PLO Declaration of Principles: Provided, That this re-
striction shall not apply to the acquisition of additional
space for the existing Consulate General in Jerusalem:
Provided further, That meetings between officers and em-
ployees of the United States and officials of the Palestin-
ian Authority, or any successor Palestinian governing en-
tity provided for in the Israel-PLO Declaration of Prin-
ciples, 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 continue to meet in Jerusalem on
other subjects with Palestinians (including those who now
occupy positions in the Palestinian Authority), have social
contacts, and have incidental discussions.
PROHIBITION OF PAYMENT OF CERTAIN EXPENSES
SEC. 557. None of the funds appropriated or other-
wise made available by this Act under the heading
‘‘INTERNATIONAL MILITARY EDUCATION AND TRAINING’’
or ‘‘FOREIGN MILITARY FINANCING PROGRAM’’ for Infor-
mational 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, includ-
ing entrance fees at sporting events and amusement
parks.
EQUITABLE ALLOCATION OF FUNDS
SEC. 558. Not more than 18 percent of the funds
appropriated by this Act to carry out the provisions of sec-
tions 103 through 106 and chapter 4 of part II of the
Foreign Assistance Act of 1961, that are made available
for Latin America and the Caribbean region may be made
available, through bilateral and Latin America and the
Caribbean regional programs, to provide assistance for
any country in such region.
PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS
SEC. 559. (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
available in this Act should be American-made.
(b) NOTICE REQUIREMENT.—In providing financial
assistance to, or entering into any contract with, any en-
tity using funds made available in this Act, the head of
each Federal agency, to the greatest extent practicable,
shall provide to such entity a notice describing the state-
ment made in subsection (a) by the Congress.
LIMITATION OF FUNDS FOR NORTH AMERICAN
DEVELOPMENT BANK
SEC. 560. None of the Funds appropriated in this
Act under the heading ‘‘North American Development
Bank’’ and made available for the Community Adjustment
and Investment Program shall be used for purposes other
than those set out in the binational agreement establishing
the Bank.
INTERNATIONAL DEVELOPMENT ASSOCIATION
SEC. 561. In order to pay for the United States con-
tribution to the eleventh replenishment of the resources
of the International Development Association, there are
authorized to be appropriated, without fiscal year limita-
tion, $606,000,000 for payment by the Secretary of the
Treasury.
SPECIAL DEBT RELIEF FOR THE POOREST
SEC. 562. (a) AUTHORITY TO REDUCE DEBT.—The
President may reduce amounts owed to the United States
(or any agency of the United States) by an eligible country
as a result of—
(1) guarantees issued under sections 221 and
222 of the Foreign Assistance Act of 1961; or
(2) credits extended or guarantees issued under
the Arms Export Control Act.
(b) LIMITATIONS.—
(1) The authority provided by subsection (a)
may be exercised only to implement multilateral offi-
cial debt relief and referendum agreements, com-
monly referred to as ‘‘Paris Club Agreed Minutes’’.
(2) The authority provided by subsection (a)
may be exercised only in such amounts or to such
extent as is provided in advance by appropriations
Acts.
(3) The authority provided by subsection (a)
may be exercised only with respect to countries with
heavy debt burdens that are eligible to borrow from
the International Development Association, but not
from the International Bank for Reconstruction and
Development, commonly referred to as ‘‘IDA-only’’
countries.
(c) CONDITIONS.—The authority provided by sub-
section (a) may be exercised only with respect to a country
whose government—
(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 pro-
vided by subsection (a) may be used only with regard to
funds appropriated by this Act under the heading ‘‘Debt
restructuring’’.
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A re-
duction of debt pursuant to subsection (a) shall not be
considered assistance for purposes of any provision of law
limiting assistance to a country. The authority provided
by subsection (a) may be exercised notwithstanding sec-
tion 620(r) of the Foreign Assistance Act of 1961.
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES
SEC. 563. (a) LOANS ELIGIBLE FOR SALE, REDUC-
TION, 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 the Foreign Assist-
ance 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, re-
duce 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 conservation and sustainable use of
natural resources with local community develop-
ment, and child survival and other child devel-
opment, in a manner consistent with sections
707 through 710 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 direct such agency to carry out the sale, reduc-
tion, or cancellation of a loan pursuant to this sec-
tion. Such agency shall make an adjustment in its
accounts to reflect the sale, reduction, or cancella-
tion.
(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, 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
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 should 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 pro-
vided by subsection (a) may be used only with regard to
funds appropriated by this Act under the heading ‘‘Debt
restructuring’’.
GUATEMALA
SEC. 564. (a) Funds provided in this Act may be
made available for the Guatemalan military forces, and
the restriction on Guatemala under the heading ‘‘Foreign
Military Financing Program’’ shall not apply, only if the
President determines and certifies to the Congress that
the Guatemalan military is cooperating fully with efforts
to resolve human rights abuses which elements of the Gua-
temalan military forces are alleged to have committed, or-
dered or attempted to thwart the investigation of, and to
implement the peace settlement.
(b) The prohibition contained in subsection (a) shall
not apply to funds made available to implement a ceasefire
or peace agreement.
(c) Any funds made available pursuant to subsections
(a) or (b) shall be subject to the regular notification proce-
dures of the Committees on Appropriations.
SANCTIONS AGAINST COUNTRIES HARBORING WAR
CRIMINALS
SEC. 565. (a) BILATERAL ASSISTANCE.—The Presi-
dent is authorized to withhold funds appropriated by this
Act under the Foreign Assistance Act of 1961 or the Arms
Export Control Act for any country described in sub-
section (c).
(b) MULTILATERAL ASSISTANCE.—The Secretary of
the Treasury should instruct the United States executive
directors of the international financial institutions to work
in opposition to, and vote against, any extension by such
institutions of financing or financial or technical assist-
ance to any country described in subsection (c).
(c) SANCTIONED COUNTRIES.—A country described
in this subsection is a country the government of which
knowingly 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 be-
ginning 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;
(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. 566. (a) LIMITATION.—None of the funds ap-
propriated or otherwise 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
that have taken place in Haiti since February 12,
1996; and
(2) the Government has completed privatization
of (or placed under long-term private management
contract) at least three major public enterprises.
(b) Nothing in this section shall be construed to re-
strict the provision of humanitarian, law enforcement,
antinarcotics, or electoral assistance.
(c) The President may waive the requirements of this
section on a semiannual basis if he determines and cer-
tifies to the appropriate committees of Congress that it
is in the national interest of the United States.
REQUIREMENT FOR DISCLOSURE OF FOREIGN AID IN
REPORT OF SECRETARY OF STATE
SEC. 567. (a) FOREIGN AID REPORTING REQUIRE-
MENT.—In addition to the voting practices of a foreign
country, the report required to be submitted to Congress
under section 406(a) of the Foreign Relations Authoriza-
tion Act, fiscal years 1990 and 1991 (22 U.S.C. 2414a),
shall include a side-by-side comparison of individual coun-
tries’ overall support for the United States at the United
Nations and the amount of United States assistance pro-
vided to such country in fiscal year 1997.
(b) UNITED STATES ASSISTANCE.—For purposes of
this section, the term ‘‘United States assistance’’ has the
meaning given the term in section 481(e)(4) of the For-
eign Assistance Act of 1961 (22 U.S.C. 2291(e)(4)).
RESTRICTIONS ON VOLUNTARY CONTRIBUTIONS TO
UNITED NATIONS AGENCIES
SEC. 568. (a) PROHIBITION ON VOLUNTARY CON-
TRIBUTIONS FOR THE UNITED NATIONS.—None of the
funds appropriated or otherwise made available by this
Act may be made available to pay any voluntary contribu-
tion of the United States to the United Nations (including
the United Nations Development Program) if the United
Nations implements or imposes any taxation on any Unit-
ed States persons.
(b) CERTIFICATION REQUIRED FOR DISBURSEMENT
OF FUNDS.—None of the funds appropriated or otherwise
made available under this Act may be made available to
pay any voluntary contribution of the United States to the
United Nations (including the United Nations Develop-
ment Program) unless the President certifies to the Con-
gress 15 days in advance of such payment that the United
Nations is not engaged in any effort to implement or im-
pose any taxation on United States persons in order to
raise revenue for the United Nations or any of its special-
ized agencies.
(c) DEFINITIONS.—As used in this section the term
‘‘United States person’’ refers to—
(1) a natural person who is a citizen or national
of the United States; or
(2) a corporation, partnership, or other legal
entity organized under the United States or any
State, territory, possession, or district of the United
States.
NORTH KOREA
SEC. 569. Ninety days after the date of enactment
of this Act, and every 180 days thereafter, the Secretary
of State, in consultation with the Secretary of Defense,
shall provide a report in a classified or unclassified form
to the Committee on Appropriations including the follow-
ing information:
(a) a best estimate on fuel used by the military
forces of the Democratic People’s Republic of Korea
(DPRK);
(b) the deployment position and military train-
ing and activities of the DPRK forces and best esti-
mate of the associated costs of these activities;
(c) steps taken to reduce the DPRK level of
forces; and
(d) cooperation, training, or exchanges of infor-
mation, technology or personnel between the DPRK
and any other nation supporting the development or
deployment of a ballistic missile capability.
ASSISTANCE TO TURKEY
SEC. 570. (a) Not more than $40,000,000 of the
funds appropriated in this Act under the heading ‘‘Eco-
nomic Support Fund’’ may be made available for Turkey.
(b) Of the funds made available under the heading
‘‘Economic Support Fund’’ for Turkey, not less than fifty
percent of these funds shall be made available for the pur-
pose of supporting private nongovernmental organizations
engaged in strengthening democratic institutions in Tur-
key, providing economic assistance for individuals and
communities affected by civil unrest, and supporting and
promoting peaceful solutions and economic development
which will contribute to the settlement of regional prob-
lems in Turkey.
LIMITATION ON ASSISTANCE TO THE P.L.O. AND THE
PALESTINIAN AUTHORITY
SEC. 571. (a) SENSE OF THE CONGRESS.—It is the
sense of the Congress that the Palestine Liberation Orga-
nization (hereafter the ‘‘P.L.O.’’) should do far more to
demonstrate an irrevocable denunciation of terrorism and
to ensure a peaceful settlement of the Middle East dispute,
and in particular it should—
(1) submit to the Palestinian Council for formal
approval the necessary changes to those specific arti-
cles of the Palestinian National Charter which deny
Israel’s right to exist or support the use of violence;
(2) to the maximum extent possible, preempt
acts of terror, discipline violators, publicly condemn
all terrorist acts, actively work to dismantle other
terrorist organizations, and contribute to stemming
the violence that has resulted in the deaths of over
230 Israeli and United States citizens since the sign-
ing of the Declaration of Principles on Interim Self-
Government Arrangements (hereafter the ‘‘Declara-
tion of Principles’’) on September 13, 1993, at the
White House;
(3) prohibit participation in the P.L.O. or the
Palestinian Authority or its successors of any groups
or individuals which promote or commit acts of ter-
rorism;
(4) cease all anti-Israel rhetoric, which poten-
tially undermines the peace process;
(5) confiscate all unlicensed weapons and re-
strict the issuance of licenses to those with legiti-
mate need;
(6) transfer and cooperate in transfer proceed-
ings relating to any person accused by Israel or the
United States of having committed acts of terrorism
against Israeli or United States nationals; and
(7) respect civil liberties, human rights and
democratic norms as applied equally to all persons
regardless of ethnic, religious, or national origin.
(b) LIMITATION ON ASSISTANCE.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, funds appropriated or otherwise
made available by this Act may be obligated for as-
sistance to the P.L.O. or the Palestinian Authority
only for the period beginning 3 months after the
date of the enactment of this Act and for 6 months
thereafter, and only if—
(A) the President has exercised the author-
ity 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 sus-
pension is still in effect; and
(B) in addition to the requirements con-
tained in such Act or other legislation, the
President prepares and transmits to the Con-
gress a report described in paragraph (2).
(2) REPORT.—A report described in this para-
graph is a report containing the following:
(A) A description of all efforts being made
to apprehend, prosecute, or have extradited to
the United States Mohammad Deif (allegedly
responsible 
for 
the 
death 
of 
Nachshon
Wachsman, a United States citizen), Amjad
Hinawi (allegedly responsible for the death of
David Boim, a United States citizen), Abu
Abbas (responsible for the death of Leon
Klinghoffer, a United States citizen), Amid al-
Hindi (allegedly responsible for death of David
Berger, a United States citizen), and Nafez
Mahmoud Sabih (who helped plan the February
1996 attack on a Jerusalem bus in which Jew-
ish Theological Seminary students Sara Duker
and Matthew Eisenfeld, both United States citi-
zens, were murdered).
(B) An official, updated, and revised copy
of the Palestinian National Charter (Covenant)
showing which specific articles have been re-
scinded by the decision taken on April 24, 1996
by the P.L.O. Executive Committee.
(C) A description of all actions being taken
by the Palestinian Authority to eradicate and
prevent the use of the map of Israel to rep-
resent ‘‘Palestine’’.
(D) A certification that the Palestinian
Authority has established a court system that
respects due process requirements, including
the right to a lawyer, the right to confront wit-
nesses, the right to be informed of the charges
under which one is accused, and the right to a
jury trial.
(E) A certification that the Palestinian Au-
thority has established humane prison condi-
tions.
(F) A certification that the Palestinian Au-
thority has taken all measures to rescind the
death penalty imposed for the sale of land to
Jews, has eliminated the practice of incarcerat-
ing real estate agents for the sale of land to
Jews or Israelis, and has actively sought the
perpetrators of such actions.
SENSE OF THE CONGRESS RELATING TO INTERNATIONAL
ADOPTION LAWS AND PRACTICES OF PARAGUAY
SEC. 572. It is the sense of the Congress that the
President and the Secretary of State should use all oppor-
tunities and means to express directly to all appropriate
officials of the Government of Paraguay that—
(1) the United States respects and supports the
commitment of the Government of Paraguay to re-
form its laws and practices regarding international
adoptions;
(2) the pending international adoption cases
filed by United States families at or prior to the es-
tablishment by the Government of Paraguay of a
moratorium on international adoptions, including the
11 adoption cases commonly referred to as the ‘‘win-
dow of opportunity’’ adoption cases, should be al-
lowed to continue and complete the adoption process
in a fair, unbiased, and timely fashion;
(3) such United States adoption cases should be
determined on the basis of the two key tenets for
international adoption in Paraguay, namely the fit-
ness of the petitioning family to be parents and what
is in the best interests and welfare of the child; and
(4) any international adoption reform legisla-
tion approved by the Government of Paraguay
should allow such United States adoption cases to
complete the adoption process.
SEC. 573. None of the funds appropriated or other-
wise made available by this Act under the heading ‘‘NON-
PROLIFERATION, ANTI-TERRORISM, DEMINING
AND
RE-
LATED PROGRAMS’’ that are made available for the Inter-
national Atomic Energy Agency shall be made available
for programs and projects of such Agency in Cuba.
PROHIBITION OF ASSISTANCE TO CAMBODIA
SEC. 574. (a) None of the funds appropriated in this
Act may be made available to the Government of Cam-
bodia.
(b) None of the funds appropriated in this Act for
the International Development Association, the Inter-
national Monetary Fund, or the Asian Development Bank
may be used for any loan to the Government of Cambodia.
LIMITATION ON ASSISTANCE TO THE GOVERNMENT OF
CROATIA
SEC. 575. None of the funds appropriated or other-
wise made available by title II of this Act may be made
available to the Government of Croatia to relocate the re-
mains of Croatian Ustashe soldiers, at the site of the
World War II concentration camp at Jasenovac, Croatia.
LIMITATION ON PROCUREMENT OUTSIDE THE UNITED
STATES
SEC. 576. Funds appropriated or otherwise made
available by this Act may be used for procurement outside
the United States or less developed countries only if—
(1) such funds are used for the procurement of
commodities or services, or defense articles or de-
fense services, produced in the country in which the
assistance is to be provided, except that this para-
graph only applies if procurement in that country
would cost less than procurement in the United
States or less developed countries;
(2) the provision of such assistance requires
commodities or services, or defense articles or de-
fense services, of a type that are not produced in,
and available for purchase from, the United States,
less developed countries, or the country in which the
assistance is to be provided; or
(3) the President determines on a case-by-case
basis that procurement outside the United States or
less developed countries would result in the more ef-
ficient use of United States foreign assistance re-
sources.
SEC. 577. None of the funds in this Act may be used
to pay for NATO expansion not authorized by law.
SEC. 578. None of the funds appropriated in this Act
may be made available directly to the government of Cam-
bodia.
SEC. 579. The amounts otherwise provided by this
Act are revised by reducing the amount made available
for ‘‘ECONOMIC
SUPPORT
FUND’’, and increasing the
amount made available for ‘‘CONTRIBUTION TO THE AFRI-
CAN
DEVELOPMENT
FUND’’ (as authorized by section
526(c) of Public Law 103–306; 108 Stat. 1632), by
$25,000,000.
100
SENSE OF THE CONGRESS REGARDING COSTS OF THE
PARTNERSHIP FOR PEACE PROGRAM AND NATO EX-
PANSION
SEC. 580. It is the sense of the Congress that all
member nations of the North Atlantic Treaty Organiza-
tion (NATO) should contribute their proportionate share
to pay for the costs of the Partnership for Peace program
and for any future costs attributable to the expansion of
NATO.
FOREIGN ORGANIZATIONS THAT PERFORM OR PROMOTE
ABORTION
OVERSEAS; FORCED
ABORTION
IN
THE
PEOPLE’S REPUBLIC OF CHINA
SEC. 581. (a) Section 104 of the Foreign Assistance
Act of 1961 is amended by adding at the end the following
new subsection:
‘‘(h) RESTRICTION ON ASSISTANCE TO FOREIGN OR-
GANIZATIONS THAT PERFORM OR ACTIVELY PROMOTE
ABORTIONS.—
‘‘(1) PERFORMANCE OF ABORTIONS.—
‘‘(A) Notwithstanding section 614 of this
Act or any other provision of law, no funds ap-
propriated for population planning activities or
other population assistance may be made avail-
able for any foreign private, nongovernmental,
or multilateral organization until the organiza-
tion certifies that it will not, during the period
101
for which the funds are made available, perform
abortions in any foreign country, except where
the life of the mother would be endangered if
the pregnancy were carried to term or in cases
of forcible rape or incest.
‘‘(B) Subparagraph (A) may not be con-
strued to apply to the treatment of injuries or
illnesses caused by legal or illegal abortions or
to assistance provided directly to the govern-
ment of a country.
‘‘(2) LOBBYING
ACTIVITIES.—(A) Notwith-
standing section 614 of this Act or any other provi-
sion of law, no funds appropriated for population
planning activities or other population assistance
may be made available for any foreign private, non-
governmental, or multilateral organization until the
organization certifies that it will not, during the pe-
riod for which the funds are made available, violate
the laws of any foreign country concerning the cir-
cumstances under which abortion is permitted, regu-
lated, or prohibited, or engage in any activity or ef-
fort to alter the laws or governmental policies of any
foreign country concerning the circumstances under
which abortion is permitted, regulated, or prohibited.
102
‘‘(B) Subparagraph (A) shall not apply to ac-
tivities in opposition to coercive abortion or involun-
tary sterilization.
‘‘(3) APPLICATION
TO
FOREIGN
ORGANIZA-
TIONS.—The prohibitions of this subsection apply to
funds made available to a foreign organization either
directly or as a subcontractor or subgrantee, and the
certifications required by paragraphs (1) and (2)
apply to activities in which the organization engages
either directly or through a subcontractor or sub-
grantee.’’.
(b) Section 301 of the Foreign Assistance Act of
1961 is amended by adding at the end the following new
subsection:
‘‘(i) LIMITATION RELATING TO FORCED ABORTIONS
IN THE PEOPLE’S REPUBLIC OF CHINA.—Notwithstand-
ing section 614 of this Act or any other provision of law,
no funds may be made available for the United Nations
Population Fund (UNFPA) in any fiscal year unless the
President certifies that—
‘‘(1) UNFPA has terminated all activities in
the People’s Republic of China, and the United
States has received assurances that UNFPA will
conduct no such activities during the fiscal year for
which the funds are to be made available; or