H. R. 1868—26
and AIDS, may be used to reimburse United States Government
agencies, agencies of State governments, institutions of higher
learning, and private and voluntary organizations for the full cost
of individuals (including for the personal services of such individ-
uals) detailed or assigned to, or contracted by, as the case may
be, the Agency for International Development for the purpose of
carrying out family planning activities, child survival 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 avail-
able 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 provision
of law that restricts assistance to foreign countries: Provided fur-
ther, That funds appropriated by this Act that are made available
for family planning activities may be made available notwithstand-
ing section 512 of this Act and section 620(q) of the Foreign Assist-
ance Act of 1961.
PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN COUNTRIES
SEC. 523. None of the funds appropriated or otherwise made
available pursuant to this Act shall be obligated to finance indirectly
any assistance or reparations to Cuba, Iraq, Libya, Iran, Syria,
North Korea, or the People’s Republic of China, unless the President
of the United States certifies that the withholding of these funds
is contrary to the national interest of the United States.
RECIPROCAL LEASING
SEC. 524. Section 61(a) of the Arms Export Control Act is
amended by striking out ‘‘1995’’ and inserting in lieu thereof ‘‘1996’’.
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 Defense 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:
Provided, That before issuing a letter of offer to sell excess defense
articles under the Arms Export Control Act, the Department of
Defense shall notify the Committees on Appropriations in accord-
ance with the regular notification procedures of such Committees:
Provided further, That such Committees shall also be informed
of the original acquisition cost of such defense articles.
AUTHORIZATION REQUIREMENT
SEC. 526. Funds appropriated by this Act may be obligated
and expended notwithstanding section 10 of Public Law 91–672
and section 15 of the State Department Basic Authorities Act of
1956.
OPPOSITION TO ASSISTANCE TO TERRORIST COUNTRIES BY
INTERNATIONAL FINANCIAL INSTITUTIONS
SEC. 527. (a) INSTRUCTIONS FOR UNITED STATES EXECUTIVE
DIRECTORS.—The Secretary of the Treasury shall instruct the
H. R. 1868—27
United States Executive Director of each international financial
institution designated in subsection (b), and the Administrator of
the Agency for International Development shall instruct the United
States Executive Director of the International Fund for Agriculture
Development, to use the voice and vote of the United States to
oppose any loan or other use of the funds of the respective institu-
tion to or for a country for which the Secretary of State has
made a determination under section 6(j) of the Export Administra-
tion Act of 1979.
(b) DEFINITION.—For purposes of this section, the term ‘‘inter-
national financial institution’’ includes—
(1) the International Bank for Reconstruction and Develop-
ment, the International Development Association, and the
International Monetary Fund; and
(2) wherever applicable, the Inter-American Development
Bank, the Asian Development Bank, the African Development
Bank, the African Development Fund, and the European Bank
for Reconstruction and Development.
PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST COUNTRIES
SEC. 527A. (a) Notwithstanding any other provision of law,
funds appropriated for bilateral assistance under any heading of
this Act and funds appropriated under any such heading in a
provision of law enacted prior to enactment of this Act, shall not
be made available to any country which the President determines—
(1) grants sanctuary from prosecution to any 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 subsection (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 waiver takes effect, shall notify the Committees
on Appropriations of the waiver (including the justification for
the waiver) 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 requirements of the Committees
on Appropriations, the authority of section 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 including
Major Defense Equipment (other than helicopters and other types
of aircraft having possible civilian application), if the President
determines that there are compelling foreign policy or national
security reasons for those defense articles being provided by
commercial lease rather than by government-to-government sale
under such Act.
H. R. 1868—28
COMPETITIVE INSURANCE
SEC. 528A. All Agency for International Development contracts
and solicitations, and subcontracts entered into under such con-
tracts, shall include a clause requiring that United States insurance
companies have a fair opportunity to bid for insurance when such
insurance is necessary or appropriate.
STINGERS IN THE PERSIAN GULF REGION
SEC. 529. Except as provided in section 581 of the Foreign
Operations, Export Financing, and Related Programs Appropria-
tions Act, 1990, the United States may not sell or otherwise make
available any Stingers to any country bordering the Persian Gulf
under the Arms Export Control Act or chapter 2 of part II of
the Foreign Assistance Act of 1961.
DEBT-FOR-DEVELOPMENT
SEC. 530. In order to enhance the continued participation of
nongovernmental organizations in economic assistance activities
under the Foreign Assistance Act of 1961, including endowments,
debt-for-development and debt-for-nature exchanges, a nongovern-
mental organization which is a grantee or contractor of the Agency
for International Development may place in interest bearing
accounts funds made available under this Act or prior Acts or
local 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 may be used for the purpose
for which the assistance was provided to that organization.
COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES
SEC. 531A. (a) COSTING BASIS.—Section 22 of the Arms Export
Control Act (22 U.S.C. 2762) is amended by adding at the end
the following:
‘‘(d) COMPETITIVE PRICING.—Procurement contracts made in
implementation of sales under this section for defense articles and
defense services wholly paid for from funds made available on
a nonrepayable basis shall be priced on the same costing basis
with regard to profit, overhead, independent research and develop-
ment, bid and proposal, and other costing elements, as is applicable
to procurements of like items purchased by the Department of
Defense for its own use.’’.
(b) EFFECTIVE DATE AND IMPLEMENTING REGULATIONS.—Section
22(d) of the Arms Export Control Act, as added by subsection
(a)—
(1) shall take effect on the 60th day following the date
of the enactment of this Act;
(2) shall be applicable only to contracts made in
implementation of sales made after such effective date; and
(3) shall be implemented by revised procurement regula-
tions, which shall be issued prior to such effective date.
(c) DIRECT COSTS ALLOWABLE.—Direct costs associated with
meeting a foreign customer’s additional or unique requirements
will continue to be allowable under such contracts. Loadings
applicable 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.
H. R. 1868—29
STOCKPILES OF DEFENSE ARTICLES
SEC. 531B. (a) LIMITATION ON VALUE OF ADDITIONS.—Section
514(b)(1) of the Foreign Assistance Act of 1961 (22 U.S.C.
2321h(b)(1)) is amended by inserting ‘‘or in the implementation
of agreements with Israel’’ after ‘‘North Atlantic Treaty Organiza-
tion’’.
(b) ADDITIONS
IN FISCAL YEARS 1996 AND 1997.—Section
514(b)(2) of such Act (22 U.S.C. 2321h(b)(2)) is amended to read
as follows:
‘‘(2)(A) The value of such additions to stockpiles of defense
articles in foreign countries shall not exceed $50,000,000 for each
of the fiscal years 1996 and 1997.
‘‘(B) Of the amount specified in subparagraph (A) for each
of the fiscal years 1996 and 1997, not more than $40,000,000
may be made available for stockpiles in the Republic of Korea
and not more than $10,000,000 may be made available for stockpiles
in Thailand.’’.
(c) LOCATION OF STOCKPILES OF DEFENSE AUTHORITIES.—Sec-
tion 514(c) of such Act (22 U.S.C. 2321h(c)) is amended to read
as follows:
‘‘(c) LOCATION OF STOCKPILES OF DEFENSE ARTICLES.—
‘‘(1) LIMITATION.—Except as provided in paragraph (2), no
stockpile of defense articles may be located outside the bound-
aries of a United States military base or a military base used
primarily by the United States.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not apply with
respect to stockpiles of defense articles located in the Republic
of Korea, Thailand, any country that is a member of the North
Atlantic Treaty Organization, any country that is a major non-
NATO ally, or any other country the President may designate.
At least 15 days before designating a country pursuant to
the last clause of the preceding sentence, the President shall
notify the congressional committees specified in section 634A(a)
in accordance with the procedures applicable to reprogramming
notifications under that section.’’.
SEPARATE ACCOUNTS
SEC. 532. (a) SEPARATE ACCOUNTS FOR LOCAL CURRENCIES.—
(1) If assistance is furnished to the government of a foreign country
under chapters 1 and 10 of part I or chapter 4 of part II of
the Foreign Assistance Act of 1961 under agreements which result
in the generation of local currencies of that country, the Adminis-
trator 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 government which
sets forth—
(i) the amount of the local currencies to be generated,
and
(ii) the terms and conditions under which the cur-
rencies so deposited may be utilized, consistent with this
section; and
(C) establish by agreement with that government the
responsibilities of the Agency for International Development
and that government to monitor and account for deposits into
and disbursements from the separate account.