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modifying concessional loans authorized under title I of the
Agricultural Trade Development and Assistance Act of
1954, as amended, as authorized under subsection (a) under
the heading ‘‘Debt Reduction for Jordan’’ in title VI of Pub-
lic Law 103–306 and (b) direct loans extended to least de-
veloped countries, as authorized under section 411 of the
Agriculture Trade and Assistance Act of 1954 as amended;
$34,000,000, to remain available until expended: Provided,
That none of the funds appropriated under this heading
shall be obligated except as provided through the regular
notification procedures of the Committees on Appropria-
tions.
MICRO AND SMALL ENTERPRISE DEVELOPMENT PROGRAM
ACCOUNT
For the cost of direct loans and loan guarantees,
$1,500,000, as authorized by section 108 of the Foreign As-
sistance Act of 1961, as amended: Provided, That such costs
shall be as defined in section 502 of the Congressional Budg-
et Act of 1974: Provided further, That guarantees of loans
made under this heading in support of microenterprise ac-
tivities may guarantee up to 70 per centum of the principal
amount of any such loans notwithstanding section 108 of
the Foreign Assistance Act of 1961. In addition, for admin-
istrative expenses to carry out programs under this head-
ing, $500,000, all of which may be transferred to and
merged with the appropriation for Operating Expenses of
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the Agency for International Development: Provided fur-
ther, That funds made available under this heading shall
remain available until September 30, 1999.
URBAN AND ENVIRONMENTAL CREDIT PROGRAM ACCOUNT
For the cost, as defined in section 502 of the Congres-
sional Budget Act of 1974, of guaranteed loans authorized
by sections 221 and 222 of the Foreign Assistance Act of
1961, $3,000,000, to remain available until September 30,
1999: Provided, That these funds are available to subsidize
loan principal, 100 per centum of which shall be guaran-
teed, pursuant to the authority of such sections. In addition,
for administrative expenses to carry out guaranteed loan
programs, $6,000,000, all of which may be transferred to
and merged with the appropriation for Operating Expenses
of the Agency for International Development: Provided fur-
ther, That commitments to guarantee loans under this head-
ing may be entered into notwithstanding the second and
third sentences of section 222(a) and, with regard to pro-
grams for Central and Eastern Europe and programs for
the benefit of South Africans disadvantaged by apartheid,
section 223(j) of the Foreign Assistance Act of 1961.
PRIVATE AND VOLUNTARY ORGANIZATIONS
None of the funds appropriated or otherwise made
available by this Act for development assistance may be
made available to any United States private and voluntary
organization, except any cooperative development organiza-
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tion, which obtains less than 20 per centum of its total an-
nual funding for international activities from sources other
than the United States Government: Provided, That the re-
quirements of the provisions of section 123(g) of the Foreign
Assistance Act of 1961 and the provisions on private and
voluntary organizations in title II of the ‘‘Foreign Assist-
ance and Related Programs Appropriations Act, 1985’’ (as
enacted in Public Law 98–473) shall be superseded by the
provisions of this section, except that the authority con-
tained in the last sentence of section 123(g) may be exer-
cised by the Administrator with regard to the requirements
of this paragraph.
Funds appropriated or otherwise made available
under title II of this Act should be made available to private
and voluntary organizations at a level which is at least
equivalent to the level provided in fiscal year 1995. Such
private and voluntary organizations shall include those
which operate on a not-for-profit basis, receive contribu-
tions from private sources, receive voluntary support from
the public and are deemed to be among the most cost-effec-
tive and successful providers of development assistance.
PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND
DISABILITY FUND
For payment to the ‘‘Foreign Service Retirement and
Disability Fund’’, as authorized by the Foreign Service Act
of 1980, $44,208,000.
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OPERATING EXPENSES OF THE AGENCY FOR
INTERNATIONAL DEVELOPMENT
For necessary expenses to carry out the provisions of
section 667, $473,000,000, to remain available until Sep-
tember 30, 1999: Provided, That none of the funds appro-
priated by this Act for programs administered by the Agen-
cy for International Development may be used to finance
printing costs of any report or study (except feasibility, de-
sign, or evaluation reports or studies) in excess of $25,000
without the approval of the Administrator of the Agency
or the Administrator’s designee.
OPERATING
EXPENSES
OF
THE
AGENCY
FOR
INTER-
NATIONAL DEVELOPMENT OFFICE OF INSPECTOR GEN-
ERAL
For necessary expenses to carry out the provisions of
section 667, $29,047,000, to remain available until Septem-
ber 30, 1999, which sum shall be available for the Office
of the Inspector General of the Agency for International De-
velopment.
OTHER BILATERAL ECONOMIC ASSISTANCE
ECONOMIC SUPPORT FUND
For necessary expenses to carry out the provisions of
chapter 4 of part II, $2,541,150,000, to remain available
until September 30, 1999: Provided, That of the funds ap-
propriated under this heading, not less than $1,200,000,000
shall be available only for Israel, which sum shall be avail-
HR 2159 EAS
able on a grant basis as a cash transfer and shall be dis-
bursed within thirty days of enactment of this Act or by
October 31, 1997, whichever is later: Provided further, That
not less than $815,000,000 shall be available only for
Egypt, which sum shall be provided on a grant basis, and
of which sum cash transfer assistance may be provided,
with the understanding that Egypt will undertake signifi-
cant economic reforms which are additional to those which
were undertaken in previous fiscal years: Provided further,
That in exercising the authority to provide cash transfer
assistance for Israel, the President shall ensure that the level
of such assistance does not cause an adverse impact on the
total level of nonmilitary exports from the United States
to such country: Provided further, That of the funds appro-
priated under this heading, not less than $150,000,000 shall
be made available for Jordan: Provided further, That of the
amount appropriated under this heading, not less than
$500,000 shall be available only for the Special Investiga-
tive Unit (SIU) of the Haitian National Police.
ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC
STATES
(a) For necessary expenses to carry out the provisions
of the Foreign Assistance Act of 1961 and the Support for
East European Democracy (SEED) Act of 1989,
$485,000,000, to remain available until September 30,
1999, which shall be available, notwithstanding any other
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provision of law, for economic assistance and for related
programs for Eastern Europe and the Baltic States.
(b) Funds appropriated under this heading or in prior
appropriations Acts that are or have been made available
for an Enterprise Fund may be deposited by such Fund
in interest-bearing accounts prior to the Fund’s disburse-
ment of such funds for program purposes. The Fund may
retain for such program purposes any interest earned on
such deposits without returning such interest to the Treas-
ury of the United States and without further appropriation
by the Congress. Funds made available for Enterprise
Funds shall be expended at the minimum rate necessary
to make timely payment for projects and activities.
(c) Funds appropriated under this heading shall be
considered to be economic assistance under the Foreign As-
sistance Act of 1961 for purposes of making available the
administrative authorities contained in that Act for the use
of economic assistance.
(d) With regard to funds appropriated or otherwise
made available under this heading for the economic revital-
ization program in Bosnia and Herzegovina, and local cur-
rencies generated by such funds (including the conversion
of funds appropriated under this heading into currency
used by Bosnia and Herzegovina as local currency and local
currency returned or repaid under such program)—
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(1) the Administrator of the Agency for Inter-
national Development shall provide written approval
for grants and loans prior to the obligation and ex-
penditure of funds for such purposes, and prior to the
use of funds that have been returned or repaid to any
lending facility or grantee; and
(2) the provisions of section 533 of this Act shall
apply.
(e) Funds appropriated under this heading may not
be made available for economic revitalization programs in
Bosnia and Herzegovina, if the President determines and
certifies to the Committees on Appropriations that the Fed-
eration of Bosnia and Herzegovina has not complied with
article III of annex 1–A of the General Framework Agree-
ment for Peace in Bosnia and Herzegovina concerning the
withdrawal of foreign forces, and that intelligence coopera-
tion on training, investigations, and related activities be-
tween Iranian officials and Bosnian officials has not been
terminated.
ASSISTANCE FOR THE NEW INDEPENDENT STATES OF THE
FORMER SOVIET UNION
(a) For necessary expenses to carry out the provisions
of chapter 11 of part I of the Foreign Assistance Act of 1961
and the FREEDOM Support Act, for assistance for the New
Independent States of the former Soviet Union and for re-
lated programs, $800,000,000, to remain available until
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September 30, 1999: Provided, That the provisions of such
chapter shall apply to funds appropriated by this para-
graph: Provided further, That up to $22,000,000 made
available under this heading may be transferred to the Ex-
port Import Bank of the United States, and up to
$8,000,000 of the funds made available under this heading
may be transferred to the Micro and Small Enterprise De-
velopment Program, to be used for the cost of direct loans
and loan guarantees for the furtherance of programs under
this heading: Provided further, That such costs, including
the cost of modifying such loans, shall be as defined in sec-
tion 502 of the Congressional Budget Act of 1974.
(b) None of the funds appropriated under this heading
shall be made available to a Government of the New Inde-
pendent States of the former Soviet Union—
(1) unless that Government is making progress
in implementing comprehensive economic reforms
based on market principles, private ownership, nego-
tiating repayment of commercial debt, respect for
commercial contracts, and equitable treatment of for-
eign private investment; and
(2) if that Government applies or transfers Unit-
ed States assistance to any entity for the purpose of
expropriating or seizing ownership or control of as-
sets, investments, or ventures.
HR 2159 EAS
(3) Funds may be furnished without regard to
this subsection if the President determines that to do
so is in the national interest.
(c) None of the funds appropriated under this heading
shall be made available to any government of the New Inde-
pendent States of the former Soviet Union if that govern-
ment directs any action in violation of the territorial integ-
rity or national sovereignty of any other new independent
state, such as those violations included in the Helsinki
Final Act: Provided, That such funds may be made avail-
able without regard to the restriction in this subsection if
the President determines that to do so is in the national
security interest of the United States: Provided further,
That the restriction of this subsection shall not apply to
the use of such funds for the provision of assistance for pur-
poses of humanitarian and refugee relief.
(d) None of the funds appropriated under this heading
for the New Independent States of the former Soviet Union
shall be made available for any state to enhance its military
capability: Provided, That this restriction does not apply
to demilitarization or nonproliferation programs.
(e) Funds appropriated under this heading shall be
subject to the regular notification procedures of the Commit-
tees on Appropriations.
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(f) Funds made available in this Act for assistance to
the New Independent States of the former Soviet Union
shall be subject to the provisions of section 117 (relating
to environment and natural resources) of the Foreign As-
sistance Act of 1961.
(g) Of the funds appropriated under title II of this
Act, including funds appropriated under this heading, not
less than $12,000,000 shall be available only for assistance
for Mongolia: Provided, That funds made available for as-
sistance for Mongolia may be made available in accordance
with the purposes and utilizing the authorities provided in
chapter 11 of part I of the Foreign Assistance Act of 1961.
(h) Funds made available in this Act for assistance
to the New Independent States of the former Soviet Union
shall be provided to the maximum extent feasible through
the private sector, including small- and medium-size busi-
nesses, entrepreneurs, and others with indigenous private
enterprises in the region, intermediary development organi-
zations committed to private enterprise, and private vol-
untary organizations: Provided, That grantees and contrac-
tors should, to the maximum extent possible, place in key
staff positions specialists with prior on the ground expertise
in the region of activity and fluency in one of the local
languages.
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(i) In issuing new task orders, entering into contracts,
or making grants, with funds appropriated under this
heading or in prior appropriations Acts, for projects or ac-
tivities that have as one of their primary purposes the fos-
tering of private sector development, the Coordinator for
United States Assistance to the New Independent States
and the implementing agency shall encourage the participa-
tion of and give significant weight to contractors and grant-
ees who propose investing a significant amount of their own
resources (including volunteer services and in-kind con-
tributions) in such projects and activities.
(j) Of the funds appropriated under this heading, not
less than $225,000,000 shall be made available for Ukraine:
Provided, That of the funds made available for Ukraine
under this subsection, not less than $25,000,000 shall be
available only for comprehensive legal restructuring nec-
essary to support a decentralized market-oriented economic
system, including the enactment of all necessary substantive
commercial law and procedures, the implementation of re-
forms necessary to establish an independent judiciary and
bar, the education of judges, attorneys, and law students
in the comprehensive commercial law reforms, and public
education designed to promote understanding of commercial
law necessary to Ukraine’s economic independence: Pro-
vided further, That of this amount not less than $8,000,000
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shall be made available to support law enforcement institu-
tions and training, not less than $25,000,000 shall be made
available for nuclear reactor safety programs, and not less
than $5,000,000 shall be made available for political party
and related institutional development: Provided further,
That 50 per centum of the amount made available for
Ukraine by this subsection, exclusive of funds made avail-
able in the previous proviso, shall be withheld from obliga-
tion and expenditure until the Secretary of State deter-
mines and certifies that the Government of Ukraine has
taken meaningful steps: (1) to enforce the April 10, 1997
Anti-Corruption Presidential decree; (2) to privatize state
owned agricultural storage, distribution, equipment and
supply monopolies; and (3) to resolve cases involving U.S.
business complaints and establish a permanent legal mecha-
nism for commercial dispute resolution: Provided further,
That the Secretary shall submit such determination and
certification prior to March 31, 1998.
(k) Of the funds appropriated under this heading, not
less than $100,000,000 shall be made available for Georgia,
of which not less than $10,000,000 shall be made available
to support energy development and privatization initia-
tives: Provided, That not less than $15,000,000 shall be
made available for development of border security tele-
communications infrastructure: Provided further, That not
HR 2159 EAS
less than $7,000,000 shall be available for judicial reform
and law enforcement training: Provided further, That not
less than $5,000,000 shall be made available to support
training for border and customs control: Provided further,
That not less than $3,000,000 shall be made available to
support political party and related institutional develop-
ment: Provided further, That not less than $5,000,000 shall
be available for Supsa urban and commercial development:
Provided further, That up to $7,000,000 may be made
available for business and education exchanges and related
activities.
(l) Of the funds made available under this heading,
not less than $95,000,000 shall be made available for Arme-
nia.
(m) Funds appropriated under this heading or in
prior appropriations Acts that are or have been made avail-
able for an Enterprise Fund may be deposited by such Fund
in interest-bearing accounts prior to the disbursement of
such funds by the Fund for program purposes. The Fund
may retain for such program purposes any interest earned
on such deposits without returning such interest to the
Treasury of the United States and without further appro-
priation by the Congress. Funds made available for Enter-
prise Funds shall be expended at the minimum rate nec-
essary to make timely payment for projects and activities.
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(n) None of the funds appropriated under this heading
may be made available for Russia unless the President de-
termines and certifies in writing to the Committees on Ap-
propriations that the Government of Russia has terminated
implementation of arrangements to provide Iran with tech-
nical expertise, training, technology, or equipment nec-
essary to develop a nuclear reactor or ballistic missiles or
related nuclear research facilities or programs.
(o) Of the funds appropriated under this heading, not
less than $10,000,000 shall be made available for a United
States contribution to the Trans-Caucasus Enterprise
Fund: Provided, That to further the development of the pri-
vate sector in the Trans-Caucasus, such amount may be in-
vested in a Trans-Caucasus Enterprise Fund or invested
in other funds established by public or private organiza-
tions, or transferred to the Overseas Private Investment
Corporation to be available, subject to the requirements of
the Federal Credit Reform Act, to subsidize the costs of di-
rect and guaranteed loans.
(p) Funds made available under this Act or any other
Act may not be provided for assistance to the Government
of Azerbaijan until the President determines, and so reports
to the Congress, that the Government of Azerbaijan is taking
demonstrable steps to cease all blockades and other offensive
uses of force against Armenia and Nagorno-Karabakh: Pro-
HR 2159 EAS
vided, That the restriction of this subsection and section 907
of the FREEDOM Support Act shall not apply to—
(1) activities to support electoral and political
reforms or assistance under title V of the FREEDOM
Support Act and section 1424 of the ‘‘National De-
fense Authorization Act for Fiscal Year 1997’’;
(2) any insurance, reinsurance, guarantee, or
other assistance provided by the Overseas Private In-
vestment Corporation under title IV of chapter 2 of
part I of the Foreign Assistance Act of 1961 (22
U.S.C. 2191 et seq.);
(3) any assistance provided by the Trade and
Development Agency under section 661 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2421);
(4) any financing provided under the Export-
Import Bank Act of 1945 (12 U.S.C. 635 et seq.); or
(5) any activity carried out by a member of the
Foreign Commercial Service while acting within his
or her official capacity.
(q) None of the funds appropriated under this heading
or in prior appropriations legislation may be made avail-
able to establish a joint public-private entity or organiza-
tion engaged in the management of activities or projects
supported by the Defense Enterprise Fund.
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(r) 60 days after the date of enactment of this Act,
the Administrator of AID shall report to the Committees
on Appropriations on the rate of obligation and risk and
anticipated returns associated with commitments made by
the United States-Russia Investment Fund. The report shall
include a recommendation on the continued relevance and
advisability of the initial planned life of project commit-
ment.
INDEPENDENT AGENCY
PEACE CORPS
For expenses necessary to carry out the provisions of
the Peace Corps Act (75 Stat. 612), $206,000,000, including
the purchase of not to exceed five passenger motor vehicles
for administrative purposes for use outside of the United
States: Provided, That none of the funds appropriated
under this heading shall be used to pay for abortions: Pro-
vided further, That funds appropriated under this heading
shall remain available until September 30, 1999.
DEPARTMENT OF STATE
INTERNATIONAL NARCOTICS CONTROL
For necessary expenses to carry out section 481 of the
Foreign Assistance Act of 1961, $216,200,000: Provided,
That of these funds not less than $10,000,000 shall be made
available for Law Enforcement Training and Demand Re-
duction: Provided further, That not less than $22,000,000
HR 2159 EAS
shall be made available for anti-crime programs: Provided
further, That none of the funds appropriated under this
heading that are made available for counter-narcotics ac-
tivities may be obligated or expended until the Secretary
of State submits a report to the Committees on Appropria-
tions containing: (1) a list of all countries in which the
United States carries out international counter-narcotics
activities; (2) the number, mission and agency affiliation
of U.S. personnel assigned to each such country; and (3)
all costs and expenses obligated for each program, project
or activity by each U.S. agency in each country: Provided
further, That of this amount not to exceed $5,000,000 shall
be allocated to operate the Western Hemisphere Inter-
national Law Enforcement Academy under the auspices of
the Organization of American States with full oversight by
the Department of State: Provided further, That funds ap-
propriated under this heading shall be provided subject to
the regular notification procedures of the Committees on
Appropriations.
MIGRATION AND REFUGEE ASSISTANCE
For expenses, not otherwise provided for, necessary to
enable the Secretary of State to provide, as authorized by
law, a contribution to the International Committee of the
Red Cross, assistance to refugees, including contributions
to the International Organization for Migration and the
United Nations High Commissioner for Refugees, and other
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activities to meet refugee and migration needs; salaries and
expenses of personnel and dependents as authorized by the
Foreign Service Act of 1980; allowances as authorized by
sections 5921 through 5925 of title 5, United States Code;
purchase and hire of passenger motor vehicles; and services
as authorized by section 3109 of title 5, United States Code,
$650,000,000: Provided, That not more than $12,000,000
shall be available for administrative expenses: Provided fur-
ther, That not less than $80,000,000 shall be made available
for refugees from the former Soviet Union and Eastern Eu-
rope and other refugees resettling in Israel.
UNITED STATES EMERGENCY REFUGEE AND MIGRATION
ASSISTANCE FUND
For necessary expenses to carry out the provisions of
section 2(c) of the Migration and Refugee Assistance Act
of 1962, as amended (22 U.S.C. 260(c)), $50,000,000, to
remain available until expended: Provided, That the funds
made available under this heading are appropriated not-
withstanding the provisions contained in section 2(c)(2) of
the Migration and Refugee Assistance Act of 1962 which
would limit the amount of funds which could be appro-
priated for this purpose.
NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND
RELATED PROGRAMS
For necessary expenses for nonproliferation, anti-ter-
rorism and related programs and activities, $129,000,000,
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to carry out the provisions of chapter 8 of part II of the
Foreign Assistance Act of 1961 for anti-terrorism assist-
ance, section 504 of the FREEDOM Support Act for the
Nonproliferation and Disarmament Fund, section 23 of the
Arms Export Control Act or the Foreign Assistance Act of
1961 for demining activities, notwithstanding any other
provision of law, including activities implemented through
nongovernmental and international organizations, section
301 of the Foreign Assistance Act of 1961 for a voluntary
contribution to the International Atomic Energy Agency
(IAEA) and a voluntary contribution to the Korean Penin-
sula Energy Development Organization (KEDO): Provided,
That of this amount not to exceed $15,000,000, to remain
available until expended, may be made available for the
Nonproliferation and Disarmament Fund, notwithstanding
any other provision of law, to promote bilateral and multi-
lateral activities relating to nonproliferation and disar-
mament: Provided further, That such funds may also be
used for such countries other than the New Independent
States of the former Soviet Union and international organi-
zations when it is in the national security interest of the
United States to do so: Provided further, That such funds
shall be subject to the regular notification procedures of the
Committees on Appropriations: Provided further, That
funds appropriated under this heading may be made avail-
HR 2159 EAS
able for the International Atomic Energy Agency only if
the Secretary of State determines (and so reports to the
Congress) that Israel is not being denied its right to partici-
pate in the activities of that Agency: Provided further, That
not to exceed $30,000,000 may be made available to the Ko-
rean 
Peninsula 
Energy 
Development 
Organization
(KEDO) only for the administrative expenses and heavy
fuel oil costs associated with the Agreed Framework: Pro-
vided further, That such funds may be obligated to KEDO
only if, thirty days prior to such obligation of funds, the
President certifies and so reports to Congress that: (1)(A)
the parties to the Agreed Framework are taking steps to
assure that progress is made on the implementation of the
January 
1, 
1992, 
Joint 
Declaration 
on 
the
Denuclearization of the Korean Peninsula and the imple-
mentation of the North-South dialogue, and (B) North
Korea is complying with the other provisions of the Agreed
Framework between North Korea and the United States and
with the Confidential Minute; (2) North Korea is cooperat-
ing fully in the canning and safe storage of all spent fuel
from its graphite-moderated nuclear reactors and that such
canning and safe storage is scheduled to be completed by
the end of fiscal year 1997; and (3) North Korea has not
significantly diverted assistance provided by the United
States for purposes for which it was not intended: Provided
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further, That the President may waive the certification re-
quirements of the preceding proviso if the President deter-
mines that it is vital to the national security interests of
the United States: Provided further, That no funds may be
obligated for KEDO until 30 days after submission to Con-
gress of the waiver permitted under the preceding proviso:
Provided further, That the obligation of any funds for
KEDO shall be subject to the regular notification procedures
of the Committees on Appropriations: Provided further,
That the Secretary of State shall submit to the appropriate
congressional committees an annual report (to be submitted
with the annual presentation for appropriations) providing
a full and detailed accounting of the fiscal year request for
the United States contribution to KEDO, the expected oper-
ating budget of the Korean Peninsula Energy Development
Organization, to include unpaid debt, proposed annual
costs associated with heavy fuel oil purchases, and the
amount of funds pledged by other donor nations and orga-
nizations to support KEDO activities on a per country
basis, and other related activities: Provided further, That
of the funds made available under this heading, up to
$14,000,000 may be made available to the Korean Penin-
sula Economic Development Organization (KEDO), in ad-
dition to funds otherwise made available under this heading
for KEDO, if the Secretary of State certifies and reports
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to the Committees on Appropriations that, except for the
funds made available under this proviso, funds sufficient
to cover all outstanding debts owed by KEDO for heavy
fuel oil have been provided to KEDO: Provided further,
That the additional $14,000,000 made available to KEDO
under this heading may not be obligated or expended until
the Secretary of State certifies and reports to Congress that
North Korea has not violated the Military Armistice Agree-
ment of 1953 during the preceding nine months.
TITLE III—MILITARY ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
INTERNATIONAL MILITARY EDUCATION AND TRAINING
For necessary expenses to carry out the provisions of
section 541 of the Foreign Assistance Act of 1961,
$47,000,000: Provided, That none of the funds appropriated
under this heading shall be available for Guatemala: Pro-
vided further, That the civilian personnel for whom mili-
tary education and training may be provided under this
heading may include civilians who are not members of a
government whose participation would contribute to im-
proved civil-military relations, civilian control of the mili-
tary, or respect for human rights.
FOREIGN MILITARY FINANCING PROGRAM
For expenses necessary for grants to enable the Presi-
dent to carry out the provisions of section 23 of the Arms
Export Control Act, $3,308,950,000: Provided, That of the
HR 2159 EAS
funds appropriated under this heading, not less than
$1,800,000,000 shall be available for grants only for Israel,
and not less than $1,300,000,000 shall be made available
for grants only for Egypt: Provided further, That the funds
appropriated by this paragraph for Israel shall be disbursed
within thirty days of enactment of this Act or by October
31, 1997, whichever is later: Provided further, That to the
extent that the Government of Israel requests that funds be
used for such purposes, grants made available for Israel by
this paragraph may, as agreed by Israel and the United
States, be available for advanced weapons systems, of which
not less than $475,000,000 shall be available for the pro-
curement in Israel of defense articles and defense services,
including research and development: Provided further, That
of the funds appropriated by this paragraph, not less than
$100,000,000 shall be available for assistance for Jordan:
Provided further, That of the funds appropriated by this
paragraph, a total of $12,000,000 shall be available for as-
sistance for Estonia, Latvia, and Lithuania: Provided fur-
ther, That funds appropriated by this paragraph shall be
nonrepayable notwithstanding any requirement in section
23 of the Arms Export Control Act: Provided further, That
funds made available under this paragraph shall be obli-
gated upon apportionment in accordance with paragraph
(5)(C) of title 31, United States Code, section 1501(a): Pro-
HR 2159 EAS
vided further, That $60,000,000 of the funds appropriated
or otherwise made available under this heading shall be
made available for the purpose of facilitating the integra-
tion of Poland, Hungary, and the Czech Republic into the
North Atlantic Treaty Organization: Provided further,
That, to carry out funding the previous proviso, all or part
of the $60,000,000 may be derived by transfer, notwith-
standing any other provision of law, from titles I, II, III,
and IV of this Act.
For the cost, as defined in section 502 of the Congres-
sional Budget Act of 1974, of direct loans authorized by
section 23 of the Arms Export Control Act as follows: cost
of direct loans, $74,000,000: Provided, That these funds are
available to subsidize gross obligations for the principal
amount of direct loans of not to exceed $759,500,000: Pro-
vided further, That the rate of interest charged on such
loans shall be not less than the current average market yield
on outstanding marketable obligations of the United States
of comparable maturities: Provided further, That of the
funds appropriated under this paragraph, a total of
$8,000,000 shall be available for assistance to Estonia, Lat-
via, and Lithuania: Provided further, That funds appro-
priated under this paragraph shall be made available for
Greece and Turkey only on a loan basis, and the principal
amount of direct loans for each country shall not exceed
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the 
following: 
$122,500,000 
only 
for 
Greece 
and
$175,000,000 only for Turkey.
None of the funds made available under this heading
shall be available to finance the procurement of defense arti-
cles, defense services, or design and construction services
that are not sold by the United States Government under
the Arms Export Control Act unless the foreign country pro-
posing to make such procurements has first signed an agree-
ment with the United States Government specifying the
conditions under which such procurements may be financed
with such funds: Provided, That all country and funding
level increases in allocations shall be submitted through the
regular notification procedures of section 515 of this Act:
Provided further, That none of the funds appropriated
under this heading shall be available for Sudan, Liberia,
and Guatemala: Provided further, That funds made avail-
able under this heading may be used, notwithstanding any
other provision of law, for activities related to the clearance
of landmines and unexploded ordnance, and may include
activities implemented through nongovernmental and inter-
national organizations: Provided further, That only those
countries for which assistance was justified for the ‘‘Foreign
Military Sales Financing Program’’ in the fiscal year 1989
congressional presentation for security assistance programs
may utilize funds made available under this heading for
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procurement of defense articles, defense services or design
and construction services that are not sold by the United
States Government under the Arms Export Control Act:
Provided further, That, subject to the regular notification
procedures of the Committees on Appropriations, funds
made available under this heading for the cost of direct
loans may also be used to supplement the funds available
under this heading for grants, and funds made available
under this heading for grants may also be used to supple-
ment the funds available under this heading for the cost
of direct loans: Provided further, That funds appropriated
under this heading shall be expended at the minimum rate
necessary to make timely payment for defense articles and
services: Provided further, That not more than $23,250,000
of the funds appropriated under this heading may be obli-
gated for necessary expenses, including the purchase of pas-
senger motor vehicles for replacement only for use outside
of the United States, for the general costs of administering
military assistance and sales: Provided further, That not
more than $355,000,000 of funds realized pursuant to sec-
tion 21(e)(1)(A) of the Arms Export Control Act may be
obligated for expenses incurred by the Department of De-
fense during fiscal year 1998 pursuant to section 43(b) of
the Arms Export Control Act, except that this limitation
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may be exceeded only through the regular notification pro-
cedures of the Committees on Appropriations.
PEACEKEEPING OPERATIONS
For necessary expenses to carry out the provisions of
section 551 of the Foreign Assistance Act of 1961,
$75,000,000: Provided, That none of the funds appropriated
under this heading shall be obligated or expended except as
provided through the regular notification procedures of the
Committees on Appropriations: Provided further, That
none of the funds made available under this heading for
the Multilateral Force and Observers until the Secretary of
State submits a report to the Committees on Appropriations
on the status of efforts to retain a new Director General
of that organization.
TITLE IV—MULTILATERAL ECONOMIC
ASSISTANCE
FUNDS APPROPRIATED TO THE PRESIDENT
INTERNATIONAL FINANCIAL INSTITUTIONS
CONTRIBUTION TO THE INTERNATIONAL BANK FOR
RECONSTRUCTION AND DEVELOPMENT
For payment to the International Bank for Recon-
struction and Development by the Secretary of the Treas-
ury, for the United States contribution to the Global Envi-
ronment Facility (GEF), $60,000,000, to remain available
until September 30, 1999.
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CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT
ASSOCIATION
For payment to the International Development Asso-
ciation by the Secretary of the Treasury, $1,034,500,000,
to remain available until expended, of which $234,500,000
shall be available to pay for the tenth replenishment: Pro-
vided, That none of the funds may be obligated or made
available until the Secretary of the Treasury certifies to the
Committees on Appropriations that all procurement restric-
tions imposed by the Interim Trust Fund have been lifted
and that the balance available for open competition in such
Fund approximates $1,000,000,000.
CONTRIBUTION TO THE INTER-AMERICAN DEVELOPMENT
BANK
For payment to the Inter-American Development Bank
by the Secretary of the Treasury, for the United States share
of the paid-in share portion of the increase in capital stock,
$25,610,667, and for the United States share of the increase
in the resources of the Fund for Special Operations,
$20,835,000, to remain available until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS
The United States Governor of the Inter-American De-
velopment Bank may subscribe without fiscal year limita-
tion to the callable capital portion of the United States
share of such capital stock in an amount not to exceed
$1,503,718,910.
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CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS
MULTILATERAL INVESTMENT FUND
For payment to the Enterprise for the Americas Multi-
lateral Investment Fund by the Secretary of the Treasury,
for the United States contribution to the Fund to be admin-
istered 
by 
the 
Inter-American 
Development 
Bank,
$30,000,000 to remain available until expended, which shall
be available for contributions previously due.
CONTRIBUTION TO THE ASIAN DEVELOPMENT BANK
For payment to the Asian Development Bank by the
Secretary of the Treasury for the United States share of
the paid-in portion of the increase in capital stock,
$13,221,596, to remain available until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS
The United States Governor of the Asian Development
Bank may subscribe without fiscal year limitation to the
callable capital portion of the United States share of such
capital stock in an amount not to exceed $647,858,204.
CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND
For the United States contribution by the Secretary
of the Treasury to the increases in resources of the Asian
Development Fund, as authorized by the Asian Develop-
ment Bank Act, as amended (Public Law 89–369),
$150,000,000, of which $50,000,000 shall be available for
contributions previously due, to remain available until ex-
pended.
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CONTRIBUTION TO THE EUROPEAN BANK FOR
RECONSTRUCTION AND DEVELOPMENT
For payment to the European Bank for Reconstruction
and Development by the Secretary of the Treasury,
$35,778,717, for the United States share of the paid-in por-
tion of the increase in capital stock, to remain available
until expended.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS
The United States Governor of the European Bank for
Reconstruction and Development may subscribe without fis-
cal year limitation to the callable capital portion of the
United States share of such capital stock in an amount not
to exceed $123,237,803.
NORTH AMERICAN DEVELOPMENT BANK
For payment to the North American Development
Bank by the Secretary of the Treasury, for the United
States share of the paid-in portion of the capital stock,
$56,500,000, to remain available until expended: Provided,
That none of the funds appropriated under this heading
that are 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.
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS
The United States Governor of the North American De-
velopment Bank may subscribe without fiscal year limita-
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tion to the callable capital portion of the United States
share of the capital stock of the North American Develop-
ment Bank in an amount not to exceed $318,750,000.
INTERNATIONAL MONETARY PROGRAMS
LOANS TO INTERNATIONAL MONETARY FUND
For loans to the International Monetary Fund under
the New Arrangements to Borrow, the dollar equivalent of
2,462,000,000 Special Drawing Rights, to remain available
until expended; in addition, up to the dollar equivalent of
4,250,000,000 Special Drawing Rights previously appro-
priated by the Act of November 30, 1983 (Public Law 98–
181), and the Act of October 23, 1962 (Public Law 87–872),
for the General Arrangements to Borrow, may also be used
for the New Arrangements to Borrow. Notwithstanding any
other provision of law, none of the funds appropriated
under this heading may be made available until the rel-
evant Committees of Congress have reviewed the new ar-
rangements for borrowing by the International Monetary
Fund provided for under this heading and authorizing leg-
islation for such borrowing has been enacted.
INTERNATIONAL ORGANIZATIONS AND PROGRAMS
For necessary expenses to carry out the provisions of
section 301 of the Foreign Assistance Act of 1961, and of
section 2 of the United Nations Environment Program Par-
ticipation Act of 1973, $277,000,000: Provided, That none
of the funds appropriated under this heading shall be made
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available for the United Nations Fund for Science and
Technology: Provided further, That not less than $5,000,000
shall be made available to the World Food Program: Pro-
vided further, That none of the funds appropriated under
this heading that are made available to the United Nations
Population Fund (UNFPA) shall be made available for ac-
tivities in the People’s Republic of China: Provided further,
That not more than $25,000,000 of the funds appropriated
under this heading may be made available to the UNFPA:
Provided further, That with respect to any funds appro-
priated under this heading that are made available to
UNFPA, UNFPA shall be required to maintain such funds
in a separate account and not commingle them with any
other funds: Provided further, That none of the funds appro-
priated under this heading may be made available to the
Korean Peninsula Energy Development Organization
(KEDO) or the International Atomic Energy Agency
(IAEA).
AUTHORIZATION REQUIREMENT FOR INTERNATIONAL
FINANCIAL INSTITUTIONS
(a) The Secretary of the Treasury may, to fulfill com-
mitments of the United States: (1) effect the United States
participation in the first general capital increase of the Eu-
ropean Bank for Reconstruction and Development, sub-
scribe to and make payment for 100,000 additional shares
of the capital stock of the Bank on behalf of the United
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States; and (2) contribute on behalf of the United States
to the eleventh replenishment of the resources of the Inter-
national Development Association, to the sixth replenish-
ment of the resources of the Asian Development Fund, a
special fund of the Asian Development Bank. The following
amounts are authorized to be appropriated without fiscal
year limitation for payment by the Secretary of the Treas-
ury: 
(1) 
$285,772,500 
for 
paid-in 
capital, 
and
$984,327,500 for callable capital of the European Bank for
Reconstruction and Development; (2) $1,600,000,000 for the
International Development Association; (3) $400,000,000
for the Asian Development Fund; and (4) $76,832,001 for
paid-in capital, and $4,511,156,729 for callable capital of
the Inter-American Development Bank in connection with
the eighth general increase in the resources of that Bank.
Each such subscription or contribution shall be subject to
obtaining the necessary appropriations.
(b) The authorizations under this section are subject
to the Senate Foreign Relations Committee reporting out
an authorization bill.
TITLE V—GENERAL PROVISIONS
ENTERPRISE FUND RESTRICTIONS
SEC. 501. Section 201(l) of the Support for East Euro-
pean Democracy Act (22 U.S.C. 5421(l)) is amended to
read as follows:
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‘‘(l) LIMITATION ON PAYMENTS TO ENTERPRISE FUND
PERSONNEL.—
‘‘(1) No part of the funds of an Enterprise Fund
shall inure to the benefit of any board member, offi-
cer, or employee of such Enterprise Fund, except as
salary or reasonable compensation for services subject
to paragraph (2).
‘‘(2) An Enterprise Fund shall not pay com-
pensation for services to—
‘‘(A) any board member of the Enterprise
Fund, except for services as a board member; or
‘‘(B) any firm, association, or entity in
which a board member of the Enterprise Fund
serves as partner, director, officer, or employee.
‘‘(3) Nothing in paragraph (2) shall preclude
payment for services performed before the date of en-
actment of this subsection.’’.
PROHIBITION OF BILATERAL FUNDING FOR INTERNATIONAL
FINANCIAL INSTITUTIONS
SEC. 502. None of the funds contained in title II of
this Act may be used to carry out the provisions of section
209(d) of the Foreign Assistance Act of 1961.
LIMITATION ON RESIDENCE EXPENSES
SEC. 503. Of the funds appropriated or made available
pursuant to this Act, not to exceed $126,500 shall be for
official residence expenses of the Agency for International
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Development during the current fiscal year: Provided, That
appropriate steps shall be taken to assure that, to the maxi-
mum extent possible, United States-owned foreign cur-
rencies are utilized in lieu of dollars.
LIMITATION ON EXPENSES
SEC. 504. Of the funds appropriated or made available
pursuant to this Act, not to exceed $5,000 shall be for enter-
tainment expenses of the Agency for International Develop-
ment during the current fiscal year.
LIMITATION ON REPRESENTATIONAL ALLOWANCES
SEC. 505. Of the funds appropriated or made available
pursuant to this Act, not to exceed $95,000 shall be avail-
able for representation allowances for the Agency for Inter-
national Development during the current fiscal year: Pro-
vided, That appropriate steps shall be taken to assure that,
to the maximum extent possible, United States-owned for-
eign currencies are utilized in lieu of dollars: Provided fur-
ther, That of the funds made available by this Act for gen-
eral costs of administering military assistance and sales
under the heading ‘‘Foreign Military Financing Program’’,
not to exceed $2,000 shall be available for entertainment
expenses and not to exceed $50,000 shall be available for
representation allowances: Provided further, That of the
funds made available by this Act under the heading ‘‘Inter-
national Military Education and Training’’, not to exceed
$50,000 shall be available for entertainment allowances:
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Provided further, That of the funds made available by this
Act for the Inter-American Foundation, not to exceed
$2,000 shall be available for entertainment and representa-
tion allowances: Provided further, That of the funds made
available by this Act for the Peace Corps, not to exceed a
total of $4,000 shall be available for entertainment expenses:
Provided further, That of the funds made available by this
Act under the heading ‘‘Trade and Development Agency’’,
not to exceed $2,000 shall be available for representation
and entertainment allowances.
PROHIBITION ON FINANCING NUCLEAR GOODS
SEC. 506. None of the funds appropriated or made
available 
(other 
than 
funds 
for 
‘‘Nonproliferation,
Antiterrorism, Demining and Related Programs’’) pursu-
ant to this Act, for carrying out the Foreign Assistance Act
of 1961, may be used, except for purposes of nuclear safety,
to finance the export of nuclear equipment, fuel, or tech-
nology.
PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN
COUNTRIES
SEC. 507. None of the funds appropriated or otherwise
made available pursuant to this Act shall be obligated or
expended to finance directly any assistance or reparations
to Cuba, Iraq, Libya, North Korea, Iran, Sudan, or Syria:
Provided, That for purposes of this section, the prohibition
on obligations or expenditures shall include direct loans,
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credits, insurance and guarantees of the Export-Import
Bank or its agents.
MILITARY COUPS
SEC. 508. None of the funds appropriated or otherwise
made available pursuant to this Act shall be obligated or
expended to finance directly any assistance to any country
whose duly elected Head of Government is deposed by mili-
tary coup or decree: Provided, That assistance may be re-
sumed to such country if the President determines and re-
ports to the Committees on Appropriations that subsequent
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 spe-
cifically provided for in this Act, unless the President, prior
to the exercise of any authority contained in the Foreign
Assistance Act of 1961 to transfer funds, consults with and
provides a written policy justification to the Committees
on Appropriations of the House of Representatives and the
Senate.
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
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made under the authority of the Foreign Assistance Act of
1961 for the same general purpose as any of the headings
under title II of this Act are, if deobligated, hereby contin-
ued available for the same period as the respective appro-
priations under such headings or until September 30, 1998,
whichever is later, and for the same general purpose, and
for countries within the same region as originally obligated:
Provided, That the Appropriations Committees of both
Houses of the Congress are notified fifteen days in advance
of the reobligation of such funds in accordance with regular
notification procedures of the Committees on Appropria-
tions.
(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 expi-
ration of the current fiscal year unless expressly so provided
in this Act: Provided, That funds appropriated for the pur-
poses of chapters 1, 8, and 11 of part I, section 667, and
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chapter 4 of part II of the Foreign Assistance Act of 1961,
as amended, and funds provided under the heading ‘‘Assist-
ance for Eastern Europe and the Baltic States’’, shall re-
main 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 provision 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 or obligated for cash disbursements in
order to address balance of payments 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 payment and economic policy reform pur-
poses.
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 calendar
year in payment to the United States of principal or inter-
est on any loan made to such country by the United States
pursuant to a program for which funds are appropriated
under this Act: Provided, That this section and section
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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 for any narcotics-related as-
sistance 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 expended to
finance any loan, any assistance or any other financial
commitments for establishing or expanding production 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 productive ca-
pacity is expected to become operative and if the assistance
will cause substantial injury to United States producers of
the same, similar, or competing commodity.
(b) None of the funds appropriated by this or any other
Act to carry out chapter 1 of part I of the Foreign Assist-
ance Act of 1961 shall be available for any testing or breed-
ing feasibility study, variety improvement or introduction,
consultancy, publication, conference, or training in connec-
tion with the growth or production in a foreign country
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of an agricultural commodity for export which would com-
pete with a similar commodity grown or produced in the
United States: Provided, That this subsection shall not pro-
hibit—
(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 ben-
efit American producers.
SURPLUS COMMODITIES
SEC. 514. The Secretary of the Treasury shall instruct
the United States Executive Directors of the International
Bank for Reconstruction and Development, the Inter-
national Development Association, the International Fi-
nance Corporation, the Inter-American Development Bank,
the International Monetary Fund, the Asian Development
Bank, the Inter-American Investment Corporation, the
North American Development Bank, the European Bank for
Reconstruction and Development, the African 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 avail-
able 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 substan-
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tial injury to United States producers of the same, similar,
or competing commodity.
NOTIFICATION REQUIREMENTS
SEC. 515. For the purpose of providing the Executive
Branch with the necessary administrative flexibility, none
of the funds made available under this Act for ‘‘Develop-
ment Assistance’’, ‘‘Debt restructuring’’, ‘‘International or-
ganizations and programs’’, ‘‘Trade and Development
Agency’’, ‘‘International narcotics control’’, ‘‘Assistance for
Eastern Europe and the Baltic States’’, ‘‘Assistance for the
New Independent States of the Former Soviet Union’’,
‘‘Economic Support Fund’’, ‘‘Peacekeeping operations’’,
‘‘Operating expenses of the Agency for International Devel-
opment’’, ‘‘Operating expenses of the Agency for Inter-
national Development Office of Inspector General’’, ‘‘Non-
proliferation, anti-terrorism, demining and related pro-
grams’’, ‘‘Foreign Military Financing Program’’, ‘‘Inter-
national military education and training’’, ‘‘Inter-Amer-
ican Foundation’’, ‘‘African Development Foundation’’,
‘‘Peace Corps’’, ‘‘Migration and refugee assistance’’, shall
be available for obligation for activities, programs, projects,
type of materiel assistance, countries, or other operations
not justified or in excess of the amount justified to the Ap-
propriations Committees for obligation under any of these
specific headings unless the Appropriations Committees of
both Houses of Congress are previously notified fifteen days
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in advance: Provided, That the President shall not enter
into any commitment of funds appropriated for the pur-
poses of section 23 of the Arms Export Control Act for the
provision of major defense equipment, other than conven-
tional ammunition, or other major defense items defined
to be aircraft, ships, missiles, or combat vehicles, not pre-
viously justified to Congress or 20 per centum in excess of
the quantities justified to Congress unless the Committees
on Appropriations are notified fifteen days in advance of
such commitment: 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 Assist-
ance Act of 1961 of less than 10 per centum of the amount
previously 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: Provided
further, That in case of any such waiver, notification to
the Congress, or the appropriate congressional committees,
shall be provided as early as practicable, but in no event
later than three days after taking the action to which such
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notification requirement was applicable, in the context of
the circumstances necessitating such waiver: Provided fur-
ther, That any notification provided pursuant to such a
waiver shall contain an explanation of the emergency cir-
cumstances.
Drawdowns made pursuant to section 506(a)(2) of the
Foreign Assistance Act of 1961 shall be subject to the regu-
lar notification procedures of the Committees on Appropria-
tions.
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 ‘‘International
Organizations and Programs’’ shall be available for the
United States proportionate share, in accordance with sec-
tion 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 list-
ed in section 620(f) of the Foreign Assistance Act of 1961,
as amended: Provided, That, subject to the regular notifica-
tion procedures of the Committees on Appropriations, funds
appropriated under this Act or any previously enacted Act
making appropriations for foreign operations, export fi-
nancing, 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
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of law, shall remain available for obligation through Sep-
tember 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 Congress
recognizes that, in fulfilling its obligations, Israel has in-
curred severe economic burdens. Furthermore, 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 Con-
gress declares that, subject to the availability of appropria-
tions, it is the policy and the intention of the United States
that the funds provided 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 inter-
ests in the region.
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 amend-
ed, may be used to pay for the performance of abortions
as a method of family planning or to motivate or coerce
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any person to practice abortions. 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 perform-
ance 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 bio-
medical research which relates in whole or in part, to meth-
ods of, or the performance of, abortions or involuntary steri-
lization 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 abor-
tions and involuntary sterilizations: Provided, That none
of the funds made available under this Act may be used
to lobby for or against abortion.
LIMITATIONS ON FUNDING FOR INTERNATIONAL FAMILY
PLANNING
SEC. 519. In determining eligibility for assistance
from funds appropriated to carry out section 104 of the
Foreign Assistance Act of 1961, nongovernmental and mul-
tilateral organizations shall not be subjected to requirements
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more restrictive than the requirements applicable to foreign
governments for such assistance.
REPORTING REQUIREMENT
SEC. 520. Section 25 of the Arms Export Control Act
is amended—
(1) in subsection (a), by striking ‘‘Congress’’ and
inserting in lieu thereof ‘‘appropriate congressional
committees’’;
(2) in subsection (b), by striking ‘‘the Committee
on Foreign Relations of the Senate or the Committee
on Foreign Affairs of the House of Representatives’’
and inserting in lieu thereof ‘‘any of the congressional
committees described in subsection (e)’’; and
(3) by adding the following subsection:
‘‘(e) As used in this section, the term ‘appropriate con-
gressional committees’ means the Committee on Foreign Re-
lations and the Committee on Appropriations of the Senate
and the Committee on International Relations and the
Committee on Appropriations of the House of Representa-
tives.’’.
SPECIAL NOTIFICATION REQUIREMENTS
SEC. 521. None of the funds appropriated in this Act
shall be obligated or expended for Colombia, Guatemala (ex-
cept that this provision shall not apply to development as-
sistance for Guatemala), Dominican Republic, Haiti, Libe-
ria, Pakistan, Peru, Serbia, Sudan, or the Democratic Re-
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public of Congo except as provided through the regular noti-
fication procedures of the Committee on Appropriations.
DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY
SEC. 522. For the purpose of this Act, ‘‘program,
project, and activity’’ shall be defined at the Appropriations
Act account level and shall include all Appropriations and
Authorizations Acts earmarks, ceilings, and limitations
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 program level
funding within each such account; for the development as-
sistance accounts of the Agency for International Develop-
ment ‘‘program, project, and activity’’ shall also be consid-
ered to include central program level funding, either as (1)
justified to the Congress, or (2) allocated by the executive
branch in accordance with a report, to be provided to the
Committees on Appropriations within thirty days of enact-
ment of this Act, as required by section 653(a) of the For-
eign Assistance Act of 1961.
CHILD SURVIVAL, AIDS, AND OTHER ACTIVITIES
SEC. 523. Up to $10,000,000 of the funds made avail-
able by this Act for assistance for family planning, health,
child survival, basic education and AIDS, may be used to
reimburse United States Government agencies, agencies of
State governments, institutions of higher learning, and pri-
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vate and voluntary organizations for the full cost of indi-
viduals (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, and basic education activities, and activities re-
lating to research on, and the treatment and control of ac-
quired immune deficiency syndrome in developing coun-
tries: 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 avail-
able notwithstanding any provision of law that restricts as-
sistance 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. 524. None of the funds appropriated or otherwise
made available pursuant to this Act shall be obligated to
finance indirectly any assistance or reparations to Cuba,
Iraq, Libya, Iran, Syria, North Korea, or the People’s Re-
public of China, unless the President of the United States
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certifies that the withholding of these funds is contrary to
the national interest of the United States.
RECIPROCAL LEASING
SEC. 525. Section 61(a) of the Arms Export Control
Act is amended by striking out ‘‘1997’’ and inserting in
lieu thereof ‘‘1998’’.
NOTIFICATION ON EXCESS DEFENSE EQUIPMENT
SEC. 526. Prior to providing excess Department of De-
fense articles in accordance with section 516(a) of the For-
eign Assistance Act of 1961, the Department of Defense shall
notify the Committees on Appropriations to the same extent
and under the same conditions as are other committees pur-
suant to subsection (c) of that section: Provided, That before
issuing a letter of offer to sell excess defense articles under
the Arms Export Control Act, the Department of Defense
shall notify the Committees on Appropriations in accord-
ance with the regular notification procedures of such Com-
mittees: Provided further, That such Committees shall also
be informed of the original acquisition cost of such defense
articles.
AUTHORIZATION REQUIREMENT
SEC. 527. Funds appropriated by this Act may be obli-
gated and expended notwithstanding section 10 of Public
Law 91–672 and section 15 of the State Department Basic
Authorities Act of 1956.
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PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST
COUNTRIES
SEC. 528. (a) Notwithstanding any other provision of
law, funds appropriated for bilateral assistance under any
heading of this Act and funds appropriated under any such
heading in a provision of law enacted prior to enactment
of this Act, shall not be made available to any country
which the President determines—
(1) grants sanctuary from prosecution to any in-
dividual or group which has committed an act of
international terrorism, or
(2) otherwise supports international terrorism.
(b) The President may waive the application of sub-
section (a) to a country if the President determines that
national security or humanitarian reasons justify such
waiver. The President shall publish each waiver in the Fed-
eral Register and, at least fifteen days before the waiver
takes effect, shall notify the Committees on Appropriations
of the waiver (including the justification for the waiver)
in accordance with the regular notification procedures of
the Committees on Appropriations.
COMMERCIAL LEASING OF DEFENSE ARTICLES
SEC. 529. Notwithstanding any other provision of law,
and subject to the regular notification procedures of the
Committees on Appropriations, the authority of section
23(a) of the Arms Export Control Act may be used to pro-
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vide financing to Israel, Egypt and NATO and major non-
NATO allies for the procurement by leasing (including leas-
ing with an option to purchase) of defense articles from
United States commercial suppliers, not including Major
Defense Equipment (other than helicopters and other types
of aircraft having possible civilian application), if the
President determines that there are compelling foreign pol-
icy or national security reasons for those defense articles
being provided by commercial lease rather than by govern-
ment-to-government sale under such Act.
COMPETITIVE INSURANCE
SEC. 530. All Agency for International Development
contracts and solicitations, and subcontracts entered into
under such contracts, shall include a clause requiring that
United States insurance companies have a fair opportunity
to bid for insurance when such insurance is necessary or
appropriate.
STINGERS IN THE PERSIAN GULF REGION
SEC. 531. Except as provided in section 581 of the For-
eign Operations, Export Financing, and Related Programs
Appropriations Act, 1990, the United States may not sell
or otherwise make available any Stingers to any country
bordering the Persian Gulf under the Arms Export Control
Act or chapter 2 of part II of the Foreign Assistance Act
of 1961.
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DEBT-FOR-DEVELOPMENT
SEC. 532. In order to enhance the continued participa-
tion of nongovernmental organizations in economic assist-
ance activities under the Foreign Assistance Act of 1961,
including endowments, debt-for-development and debt-for-
nature exchanges, a nongovernmental organization which
is a grantee or contractor of the Agency for International
Development may place in interest bearing accounts funds
made available under this Act or prior Acts or local cur-
rencies which accrue to that organization as a result of eco-
nomic assistance provided under title II of this Act and
any interest earned on such investment shall be used for
the purpose for which the assistance was provided to that
organization.
SEPARATE ACCOUNTS
SEC. 533. (a) SEPARATE ACCOUNTS FOR LOCAL CUR-
RENCIES.—(1) If assistance is furnished to the government
of a foreign country under chapters 1 and 10 of part I or
chapter 4 of part II of the Foreign Assistance Act of 1961
under agreements which result in the generation of local
currencies of that country, the Administrator of the Agency
for International Development shall—
(A) require that local currencies be deposited in
a separate account established by that government;
(B) enter into an agreement with that govern-
ment which sets forth—
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(i) the amount of the local currencies to be
generated, and
(ii) the terms and conditions under which
the currencies so deposited may be utilized, con-
sistent with this section; and
(C) establish by agreement with that government
the responsibilities of the Agency for International
Development and that government to monitor and ac-
count for deposits into and disbursements from the
separate account.
(2) USES OF LOCAL CURRENCIES.—As may be agreed
upon with the foreign government, local currencies depos-
ited in a separate account pursuant to subsection (a), or
an equivalent amount of local currencies, shall be used
only—
(A) to carry out chapters 1 or 10 of part I or
chapter 4 of part II (as the case may be), for such
purposes as—
(i) project and sector assistance activities,
or
(ii) debt and deficit financing, or
(B) for the administrative requirements of the
United States Government.
(3) PROGRAMMING ACCOUNTABILITY.—The Agency for
International Development shall take all necessary steps to
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ensure that the equivalent of the local currencies disbursed
pursuant to subsection (a)(2)(A) from the separate account
established pursuant to subsection (a)(1) are used for the
purposes agreed upon pursuant to subsection (a)(2).
(4) TERMINATION OF ASSISTANCE PROGRAMS.—Upon
termination of assistance to a country under chapters 1 or
10 of part I or chapter 4 of part II (as the case may be),
any unencumbered balances of funds which remain in a
separate account established pursuant to subsection (a)
shall be disposed of for such purposes as may be agreed to
by the government of that country and the United States
Government.
(5) CONFORMING AMENDMENTS.—The provisions of
this subsection shall supersede the tenth and eleventh provi-
sos contained under the heading ‘‘Sub-Saharan Africa, De-
velopment Assistance’’ as included in the Foreign Oper-
ations, Export Financing, and Related Programs Appro-
priations Act, 1989 and sections 531(d) and 609 of the For-
eign Assistance Act of 1961.
(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
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(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 for-
eign country, under chapters 1 or 10 of part I or chapter
4 of part II of the Foreign Assistance Act of 1961, as cash
transfer assistance or as nonproject sector assistance, that
country shall be required to maintain such funds in a sepa-
rate account and not commingle them with any other funds.
(2) APPLICABILITY OF OTHER PROVISIONS OF LAW.—
Such funds may be obligated and expended notwithstanding
provisions of law which are inconsistent with the nature
of this assistance including provisions which are referenced
in the Joint Explanatory Statement of the Committee of
Conference accompanying House Joint Resolution 648 (H.
Report No. 98–1159).
(3) NOTIFICATION.—At least fifteen days prior to obli-
gating any such cash transfer or nonproject sector assist-
ance, the President shall submit a notification through the
regular notification procedures of the Committees on Appro-
priations, which shall include a detailed description of how
the funds proposed to be made available will be used, with
a discussion of the United States interests that will be
served by the assistance (including, as appropriate, a de-
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scription of the economic policy reforms that will be pro-
moted by such assistance).
(4) EXEMPTION.—Nonproject sector assistance funds
may be exempt from the requirements of subsection (b)(1)
only through the notification procedures of the Committees
on Appropriations.
COMPENSATION FOR UNITED STATES EXECUTIVE
DIRECTORS TO INTERNATIONAL FINANCIAL INSTITUTIONS
SEC. 534. (a) No funds appropriated by this Act may
be made as payment to any international financial institu-
tion while the United States Executive Director to such in-
stitution is compensated by the institution at a rate which,
together with whatever compensation such Director receives
from the United States, is in excess of the rate provided
for an individual occupying a position at level IV of the
Executive Schedule under section 5315 of title 5, United
States Code, or while any alternate United States Director
to such institution is compensated by the institution at a
rate in excess of the rate provided for an individual occupy-
ing a position at level V of the Executive Schedule under
section 5316 of title 5, United States Code.
(b) For purposes of this section, ‘‘international finan-
cial institutions’’ are: the International Bank for Recon-
struction and Development, the Inter-American Develop-
ment Bank, the Asian Development Bank, the Asian Devel-
opment Fund, the African Development Bank, the African
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Development Fund, the International Monetary Fund, the
North American Development Bank, and the European
Bank for Reconstruction and Development.
COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST
IRAQ
SEC. 535. None of the funds appropriated or otherwise
made available pursuant to this Act to carry out the For-
eign Assistance Act of 1961 (including title IV of chapter
2 of part I, relating to the Overseas Private Investment Cor-
poration) 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 Council 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 humani-
tarian assistance for foreign nationals who have fled
Iraq and Kuwait.
COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES
SEC. 536. Direct costs associated with meeting a for-
eign customer’s additional or unique requirements will con-
tinue to be allowable under contracts under section 22(d)
of the Arms Export Control Act. Loadings applicable to
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such direct costs shall be permitted at the same rates appli-
cable to procurement of like items purchased by the Depart-
ment of Defense for its own use.
AUTHORITIES FOR THE PEACE CORPS
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
agency shall promptly report to the Committees on Appro-
priations whenever it is conducting activities or is propos-
ing to conduct activities in a country for which assistance
is prohibited.
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 induce-
ment is likely to reduce the number of employees of
such business enterprise in the United States because
United States production is being replaced by such
enterprise outside the United States;
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(b) assistance for the purpose of establishing or
developing in a foreign country any export processing
zone or designated area in which the tax, tariff, labor,
environment, and safety laws of that country do not
apply, in part or in whole, to activities carried out
within that zone or area, unless the President deter-
mines and certifies that such assistance is not likely
to cause a loss of jobs within the United States; or
(c) assistance for any project or activity that
contributes to the violation of internationally recog-
nized workers rights, as defined in section 502(a)(4)
of the Trade Act of 1974, of workers in the recipient
country, including any designated zone or area in
that country: Provided, That in recognition that the
application of this subsection should be commensurate
with the level of development of the recipient country
and sector, the provisions of this subsection shall not
preclude assistance for the informal sector in such
country, micro and small-scale enterprise, and
smallholder agriculture.
RESTRICTIONS ON THE TERMINATION OF SANCTIONS
AGAINST SERBIA AND MONTENEGRO
SEC. 539. (a) RESTRICTIONS.—Notwithstanding any
other provision of law, no sanction, prohibition, or require-
ment described in section 1511 of the National Defense Au-
thorization Act for Fiscal Year 1994 (Public Law 103–160),
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with respect to Serbia or Montenegro, may cease to be effec-
tive, unless—
(1) the President first submits to the Congress a
certification described in subsection (b); and
(2) the requirements of section 1511 of that Act
are met.
(b) CERTIFICATION.—A certification described in this
subsection is a certification that—
(1) there is substantial progress toward—
(A) the realization of a separate identity for
Kosova and the right of the people of Kosova to
govern themselves; or
(B) the creation of an international protec-
torate for Kosova;
(2) there is substantial improvement in the
human rights situation in Kosova;
(3) international human rights observers are al-
lowed to return to Kosova; and
(4) the elected government of Kosova is permitted
to meet and carry out its legitimate mandate as elect-
ed representatives of the people of Kosova.
(c) WAIVER AUTHORITY.—The President may waive
the application in whole or in part, of subsection (a) if the
President certifies to the Congress that the President has
determined that the waiver is necessary to meet emergency
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humanitarian needs or to achieve a negotiated settlement
of the conflict in Bosnia and Herzegovina that is acceptable
to the parties.
SPECIAL AUTHORITIES
SEC. 540. (a) Funds appropriated in title II of this
Act that are made available for Afghanistan, Lebanon, and
for victims of war, displaced children, displaced Burmese,
humanitarian assistance for Romania, and humanitarian
assistance for the peoples of Kosova, may be made available
notwithstanding any other provision of law: Provided, That
any such funds that are made available for Cambodia shall
be subject to the provisions of section 531(e) of the Foreign
Assistance Act of 1961 and section 906 of the International
Security and Development Cooperation Act of 1985.
(b) Funds appropriated by this Act to carry out the
provisions of sections 103 through 106 of the Foreign Assist-
ance Act of 1961 may be used, notwithstanding any other
provision of law, for the purpose of supporting tropical for-
estry and energy programs aimed at reducing emissions of
greenhouse gases, and for the purpose of supporting bio-
diversity conservation activities: Provided, That such as-
sistance shall be subject to sections 116, 502B, and 620A
of the Foreign Assistance Act of 1961.
(c) During fiscal year 1998, the President may use up
to $40,000,000 under the authority of section 451 of the
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Foreign Assistance Act of 1961, notwithstanding the fund-
ing ceiling contained in subsection (a) of that section.
(d) The Agency for International Development may
employ personal services contractors, notwithstanding any
other provision of law, for the purpose of administering pro-
grams for the West Bank and Gaza.
POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT OF
ISRAEL
SEC. 541. It is the sense of the Congress that—
(1) the Arab League countries should imme-
diately and publicly renounce the primary boycott of
Israel and the secondary and tertiary boycott of
American firms that have commercial ties with Israel;
and
(2) the President should—
(A) take more concrete steps to encourage
vigorously Arab League countries to renounce
publicly the primary boycotts of Israel and the
secondary and tertiary boycotts of American
firms that have commercial relations with Israel
as a confidence-building measure;
(B) take into consideration the participa-
tion of any recipient country in the primary
boycott of Israel and the secondary and tertiary
boycotts of American firms that have commercial
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relations with Israel when determining whether
to sell weapons to said county;
(C) report to Congress on the specific steps
being taken by the President to bring about a
public renunciation of the Arab primary boycott
of Israel and the secondary and tertiary boycotts
of American firms that have commercial rela-
tions with Israel; and
(D) encourage the allies and trading part-
ners of the United States to enact laws prohibit-
ing businesses from complying with the boycott
and penalizing businesses that do comply.
ANTI-NARCOTICS ACTIVITIES
SEC. 542. (a) Of the funds appropriated or otherwise
made available by this Act for ‘‘Economic Support Fund’’,
assistance may be provided to strengthen the administra-
tion of justice in countries in Latin America and the Carib-
bean 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 ju-
dicial 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
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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 Assistance Act of
1961.
ELIGIBILITY FOR ASSISTANCE
SEC. 543. (a) ASSISTANCE THROUGH NONGOVERN-
MENTAL ORGANIZATIONS.—Restrictions contained in this
or any other Act with respect to assistance for a country
shall not be construed to restrict assistance in support of
programs of nongovernmental organizations from funds ap-
propriated by this Act to carry out the provisions of chap-
ters 1, 10, and 11 of part I and chapter 4 of part II of
the Foreign Assistance Act of 1961, and from funds appro-
priated under the heading ‘‘Assistance for Eastern Europe
and the Baltic States’’: Provided, That the President shall
take into consideration, in any case in which a restriction
on assistance would be applicable but for this subsection,
whether assistance in support of programs of nongovern-
mental organizations is in the national interest of the Unit-
ed States: Provided further, That before using the authority
of this subsection to furnish assistance in support of pro-
grams of nongovernmental organizations, the President
shall notify the Committees on Appropriations under the
regular notification procedures of those committees, includ-
ing a description of the program to be assisted, the assist-
ance to be provided, and the reasons for furnishing such
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assistance: Provided further, That nothing in this sub-
section shall be construed to alter any existing statutory
prohibitions against abortion 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 restrict
assistance under the Agricultural Trade Development and
Assistance Act of 1954: Provided, That none of the funds
appropriated to carry out title I of such Act and made
available pursuant to this subsection may be obligated or
expended except as provided through the regular notifica-
tion procedures of the Committees on Appropriations.
(c) EXCEPTION.—This section shall not apply—
(1) with respect to section 620A of the Foreign
Assistance Act or any comparable provision of law
prohibiting assistance to countries that support inter-
national terrorism; or
(2) with respect to section 116 of the Foreign As-
sistance Act of 1961 or any comparable provision of
law prohibiting assistance to countries that violate
internationally recognized human rights.
EARMARKS
SEC. 544. (a) Funds appropriated by this Act which
are earmarked may be reprogrammed for other programs
within the same account notwithstanding the earmark if
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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 signifi-
cantly reduced its military or economic cooperation with
the United States since enactment of the Foreign Oper-
ations, Export Financing, and Related Programs Appro-
priations Act, 1991; however, before exercising the authority
of this subsection with regard to a base rights or base access
country which has significantly reduced its military or eco-
nomic cooperation with the United States, the President
shall consult with, and shall provide a written policy jus-
tification to the Committees on Appropriations: Provided,
That any such reprogramming shall be subject to the regu-
lar notification procedures of the Committees on Appropria-
tions: Provided further, That assistance that is repro-
grammed pursuant to this subsection shall be made avail-
able under the same terms and conditions as originally pro-
vided.
(b) In addition to the authority contained in sub-
section (a), the original period of availability of funds ap-
propriated by this Act and administered by the Agency for
International Development that are earmarked for particu-
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lar 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. 545. Ceilings and earmarks contained in this Act
shall not be applicable to funds or authorities appropriated
or otherwise made available by any subsequent Act unless
such Act specifically so directs.
PROHIBITION ON PUBLICITY OR PROPAGANDA
SEC. 546. 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.
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 member
of the United Nations.
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CONSULTING SERVICES
SEC. 548. The expenditure of any appropriation under
this Act for any consulting service through procurement
contract, pursuant to section 3109 of title 5, United States
Code, shall be limited to those contracts where such expendi-
tures are a matter of public record and available for public
inspection, except where otherwise provided under existing
law, or under existing Executive order pursuant to existing
law.
PRIVATE VOLUNTARY ORGANIZATIONS—DOCUMENTATION
SEC. 549. None of the funds appropriated or made
available pursuant to this Act shall be available to a private
voluntary organization which fails to provide upon timely
request any document, file, or record necessary to the audit-
ing requirements of the Agency for International Develop-
ment.
PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS
THAT
EXPORT
LETHAL
MILITARY
EQUIPMENT
TO
COUNTRIES SUPPORTING INTERNATIONAL TERRORISM
SEC. 550. (a) None of the funds appropriated or other-
wise made available by this Act may be available to any
foreign government which provides lethal military equip-
ment to a country the government of which the Secretary
of State has determined is a terrorist government for pur-
poses of section 40(d) of the Arms Export Control Act. The
prohibition under this section with respect to a foreign gov-
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ernment shall terminate 12 months after that government
ceases to provide such military equipment. This section ap-
plies with respect to lethal military equipment provided
under a contract entered into after the date of enactment
of this Act.
(b) Assistance restricted by subsection (a) or any other
similar provision of law, may be furnished if the President
determines that furnishing such assistance is important to
the national interests of the United States.
(c) Whenever the waiver of subsection (b) is exercised,
the President shall submit to the appropriate congressional
committees a report with respect to the furnishing of such
assistance. Any such report shall include a detailed expla-
nation of the assistance to be provided, including the esti-
mated dollar amount of such assistance, and an expla-
nation of how the assistance furthers United States national
interests.
WITHHOLDING OF ASSISTANCE FOR PARKING FINES OWED
BY FOREIGN COUNTRIES
SEC. 551. (a) IN GENERAL.—Of the funds made avail-
able for a foreign country under part I of the Foreign As-
sistance Act of 1961, an amount equivalent to 110 per cen-
tum 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 Secretary of State
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certifies and reports in writing to the appropriate congres-
sional committees that such fines and penalties are fully
paid to the government of the District of Columbia.
(b) DEFINITION.—For purposes of this section, the
term ‘‘appropriate congressional committees’’ means the
Committee on Foreign Relations and the Committee on Ap-
propriations of the Senate and the Committee on Inter-
national Relations and the Committee on Appropriations
of the House of Representatives.
LIMITATION ON ASSISTANCE FOR THE PLO FOR THE WEST
BANK AND GAZA
SEC. 552. None of the funds appropriated by this Act
may be obligated for assistance for the Palestine Liberation
Organization for the West Bank and Gaza unless the Presi-
dent has exercised the authority under section 604(a) of the
Middle East Peace Facilitation Act of 1995 (title VI of Pub-
lic Law 104–107) or any other legislation to suspend or
make inapplicable section 307 of the Foreign Assistance Act
of 1961 and that suspension is still in effect: Provided, That
if the President fails to make the certification under section
604(b)(2) of the Middle East Peace Facilitation Act of 1995
or to suspend the prohibition under other legislation, funds
appropriated by this Act may not be obligated for assistance
for the Palestine Liberation Organization for the West Bank
and Gaza.
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EXPORT FINANCING TRANSFER AUTHORITIES
SEC. 553. Not to exceed 5 per centum of any appro-
priation other than for administrative expenses made avail-
able 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 per centum by
any such transfer: Provided, That the exercise of such au-
thority shall be subject to the regular notification procedures
of the Committees on Appropriations.
WAR CRIMES TRIBUNALS DRAWDOWN
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 amend-
ed, of up to $25,000,000 of commodities and services for
the United Nations War Crimes Tribunal established with
regard to the former Yugoslavia by the United Nations Se-
curity Council or such other tribunals or commissions as
the Council may establish to deal with such violations,
without regard to the ceiling limitation contained in para-
graph (2) thereof: Provided, That the determination re-
quired under this section shall be in lieu of any determina-
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tions otherwise required under section 552(c): Provided fur-
ther, That sixty days after the date of enactment of this
Act, and every one hundred eighty days thereafter, the Sec-
retary of State shall submit a report to the Committees on
Appropriations describing the steps the United States Gov-
ernment is taking to collect information regarding allega-
tions 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 Jeru-
salem a new office of any department or agency of the Unit-
ed States Government for the purpose of conducting official
United States Government business with the Palestinian
Authority over Gaza and Jericho or any successor Palestin-
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ian governing entity provided for in the Israel-PLO Dec-
laration of Principles: Provided, That this restriction shall
not apply to the acquisition of additional space for the ex-
isting Consulate General in Jerusalem: Provided further,
That meetings between officers and employees of the United
States and officials of the Palestinian Authority, or any
successor Palestinian governing entity provided for in the
Israel-PLO Declaration of Principles, for the purpose of
conducting official United States Government business with
such authority should continue to take place in locations
other than Jerusalem. As has been true in the past, officers
and employees of the United States Government may con-
tinue to meet in Jerusalem on other subjects with Palestin-
ians (including those who now occupy positions in the Pal-
estinian Authority), have social contacts, and have inciden-
tal discussions.
PROHIBITION OF PAYMENT OF CERTAIN EXPENSES
SEC. 557. None of the funds appropriated or otherwise
made available by this Act under the heading ‘‘Inter-
national military education and training’’ or ‘‘Foreign
military financing program’’ for Informational Program
activities may be obligated or expended to pay for—
(1) alcoholic beverages;
(2) food (other than food provided at a military
installation) not provided in conjunction with Infor-
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mational Program trips where students do not stay at
a military installation; or
(3) entertainment expenses for activities that are
substantially of a recreational character, including
entrance fees at sporting events and amusement
parks.
PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS
SEC. 558. (a) To the greatest extent practicable, assist-
ance provided or used for purchases should use American
equipment, services, commodities, and products.
(b) NOTICE REQUIREMENT.—In providing financial
assistance to, or entering into any contract with, any entity
using funds made available in this Act, the head of each
Federal agency, to the greatest extent practicable, shall pro-
vide to such entity a notice describing the statement made
in subsection (a) by the Congress.
SPECIAL DEBT RELIEF FOR THE POOREST
SEC. 559. (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.
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(b) LIMITATIONS.—
(1) The authority provided by subsection (a)
may be exercised only to implement multilateral offi-
cial debt relief and referendum agreements, commonly
referred to as ‘‘Paris Club Agreed Minutes’’.
(2) The authority provided by subsection (a)
may be exercised only in such amounts or to such ex-
tent 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;
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(4) (including its military or other security
forces) does not engage in a consistent pattern of gross
violations of internationally recognized human rights;
and
(5) is not ineligible for assistance because of the
application of section 527 of the Foreign Relations
Authorization Act, fiscal years 1994 and 1995.
(d) AVAILABILITY OF FUNDS.—The authority provided
by subsection (a) may be used only with regard to funds
appropriated by this Act under the heading ‘‘Debt restruc-
turing’’.
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduc-
tion of debt pursuant to subsection (a) shall not be consid-
ered assistance for purposes of any provision of law limit-
ing assistance to a country. The authority provided by sub-
section (a) may be exercised notwithstanding section 620(r)
of the Foreign Assistance Act of 1961.
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES
SEC. 560. (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 Jan-
uary 1, 1995, pursuant to the Foreign Assistance Act
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of 1961, to the government of any eligible country as
defined in section 702(6) of that Act or on receipt of
payment from an eligible purchaser, reduce or cancel
such loan or portion thereof, only for the purpose of
facilitating—
(A) debt-for-equity swaps, debt-for-develop-
ment swaps, or debt-for-nature swaps; or
(B) a debt buyback by an eligible country
of its own qualified debt, only if the eligible
country uses an additional amount of the local
currency of the eligible country, equal to not less
than 40 per centum of the price paid for such
debt by such eligible country, or the difference be-
tween the price paid for such debt and the face
value of such debt, to support activities that link
conservation and sustainable use of natural re-
sources with local community development, and
child survival and other child development, in a
manner consistent with sections 707 through 710
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-
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cordance with this section, establish the terms and
conditions under which loans may be sold, reduced, or
canceled pursuant to this section.
(3) ADMINISTRATION.—The Facility, as defined
in section 702(8) of the Foreign Assistance Act of
1961, shall notify the administrator of the agency
primarily responsible for administering part I of the
Foreign Assistance Act of 1961 of purchasers that the
President has determined to be eligible, and shall di-
rect such agency to carry out the sale, reduction, or
cancellation of a loan pursuant to this section. Such
agency shall make an adjustment in its accounts to
reflect the sale, reduction, or cancellation.
(4) LIMITATION.—The authorities of this sub-
section shall be available only to the extent that ap-
propriations for the cost of the modification, as de-
fined in section 502 of the Congressional Budget Act
of 1974, are made in advance.
(b) DEPOSIT OF PROCEEDS.—The proceeds from the
sale, reduction, or cancellation of any loan sold, reduced,
or canceled pursuant to this section shall be deposited in
the United States Government account or accounts estab-
lished for the repayment of such loan.
(c) ELIGIBLE PURCHASERS.—A loan may be sold pur-
suant to subsection (a)(1)(A) only to a purchaser who pre-
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sents plans satisfactory to the President for using the loan
for the purpose of engaging in debt-for-equity swaps, debt-
for-development swaps, or debt-for-nature swaps.
(d) DEBTOR CONSULTATIONS.—Before the sale to any
eligible purchaser, or any reduction or cancellation pursu-
ant to this section, of any loan made to an eligible country,
the President 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 provided
by subsection (a) may be used only with regard to funds
appropriated by this Act under the heading ‘‘Debt restruc-
turing’’.
LIBERIA
SEC. 561. Funds appropriated by this Act may be
made available for assistance for Liberia notwithstanding
section 620(q) of the Foreign Assistance Act of 1961 and
section 512 of this Act.
GUATEMALA
SEC. 562. (a) Funds provided in this Act may be made
available for the Guatemalan military forces, and the re-
strictions on Guatemala under the headings ‘‘International
Military Education and Training’’ and ‘‘Foreign Military
Financing Program’’ shall not apply, only if the President
determines and certifies to the Congress that the Guate-
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malan military is cooperating fully with efforts to resolve
human rights abuses which elements of the Guatemalan
military forces are alleged to have committed, ordered or
attempted to thwart the investigation of, and with efforts
to implement a 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) and (b) for international military education and train-
ing may only be for expanded international military edu-
cation and training.
SANCTIONS AGAINST COUNTRIES HARBORING WAR
CRIMINALS
SEC. 563. (a) BILATERAL ASSISTANCE.—The Presi-
dent shall withhold funds appropriated by this Act under
the Foreign Assistance Act of 1961 or the Arms Export Con-
trol Act for any country described in subsection (c).
(b) MULTILATERAL ASSISTANCE.—The Secretary of
the Treasury shall instruct the United States executive di-
rectors of the international financial institutions to work
in opposition to, and vote against, any extension by such
institutions of financing or financial or technical assistance
to any country described in subsection (c).
(c) SANCTIONED COUNTRIES.—A country described in
this subsection is a country the government of which know-
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ingly grants sanctuary to persons in its territory, or terri-
tory within its control, for the purpose of evading prosecu-
tion, where such persons have been indicted by the Inter-
national Criminal Tribunal for Rwanda.
LIMITATION ON ASSISTANCE FOR HAITI
SEC. 564. (a) LIMITATION.—None of the funds appro-
priated or otherwise made available by this Act may be pro-
vided to the Government of Haiti unless the President re-
ports to Congress that the Government of Haiti—
(1) is conducting thorough investigations of
extrajudicial and political killings;
(2) is cooperating with United States authorities
in the investigations of political and extrajudicial
killings;
(3) 
has 
made 
demonstrable 
progress 
in
privatizing major governmental parastatals, includ-
ing demonstrable progress toward the material and
legal transfer of ownership of such parastatals; and
(4) has taken action to remove from the Haitian
National Police, national palace and residential
guard, ministerial guard, and any other public secu-
rity entity of Haiti those individuals who are
credibly alleged to have engaged in or conspired to
conceal gross violations of internationally recognized
human rights.
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(b) EXCEPTIONS.—The limitation in subsection (a)
does not apply to the provision of humanitarian, electoral,
counter narcotics, or development assistance.
(c) WAIVER.—The President may waive the require-
ments of this section on a semiannual basis if the President
determines and certifies to the appropriate committees of
Congress that such waiver is in the national interest of the
United States.
(d) PARASTATALS DEFINED.—As used in this section,
the term ‘‘parastatal’’ means a government-owned enter-
prise.
REQUIREMENT FOR DISCLOSURE OF FOREIGN AID IN
REPORT OF SECRETARY OF STATE
SEC. 565. (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 Authorization
Act fiscal years 1990 and 1991 (22 U.S.C. 2414a), shall
include a side-by-side comparison of individual countries’
overall support for the United States at the United Nations
and the amount of United States assistance provided to
such country in fiscal year 1996.
(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 Foreign
Assistance Act of 1961 (22 U.S.C. 2291(e)(4)).
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BURMA LABOR REPORT
SEC. 566. Not later than one hundred twenty days
after enactment of this Act, the Secretary of Labor shall
provide to the Committees on Appropriations a report ad-
dressing labor practices in Burma: Provided, That the re-
port shall provide comprehensive details on child labor
practices, worker’s rights, force relocation of laborers, forced
labor performed to support the tourism industry, and forced
labor performed in conjunction with, and in support of, the
Yadonna gas pipeline: Provided further, That the report
should discuss whether the State Law and Order Restora-
tion Council (SLORC) is in compliance with international
labor standards: Provided further, That the report should
provide considerable detail regarding the U.S. government’s
efforts to address the issue of forced labor in Burma.
HAITI
SEC. 567. The Government of Haiti shall be eligible
to purchase defense articles and services under the Arms
Export Control Act (22 U.S.C. 2751 et seq.), for the civil-
ian-led Haitian National Police and Coast Guard: Pro-
vided, That the authority provided by this section shall be
subject to the regular notification procedures of the Commit-
tees on Appropriations.
INTERNATIONAL FINANCIAL INSTITUTION POLICIES
SEC. 568. The Secretary of the Treasury shall instruct
the United States Executive Directors of the International
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Bank for Reconstruction and Development and the Inter-
national Development Association to use the voice and vote
of the United States to strongly encourage their respective
institutions to—
(1) provide timely public information on pro-
curement opportunities available to United States
suppliers, with a special emphasis on small business;
and
(2) systematically consult with local commu-
nities on the potential impact of loans as part of the
normal lending process, and expand the participation
of affected peoples and nongovernmental organizations
in decisions on the selection, design and implementa-
tion of policies and projects.
LIMITATION ON ASSISTANCE TO SECURITY FORCES
SEC. 569. None of the funds made available by this
Act may be provided to any unit of the security forces of
a foreign country if the Secretary of State has credible evi-
dence to believe such unit has committed gross violations
of human rights, unless the Secretary determines and re-
ports to the Committees on Appropriations that the govern-
ment of such country is taking steps to bring the responsible
members of the security forces unit to justice.
CAMBODIA
SEC. 570. The Secretary of the Treasury shall instruct
the United States Executive Directors of the international
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financial institutions to use the voice and vote of the United
States to oppose loans to the Government of Cambodia, ex-
cept loans to support basic human needs, unless the Govern-
ment of Cambodia has: (1) not been established in office
by the use of force or a coup d’etat; (2) discontinued all
political violence and intimidation of journalists and mem-
bers of opposition parties; (3) established an independent
election commission; (4) protected the rights of voters, can-
didates, and election observers and participants by estab-
lishing laws and procedures guaranteeing freedom of speech
and assembly; (5) eliminated corruption and collaboration
with narcotics smugglers; and (6) been elected in a free and
fair election.
LIMITATIONS ON TRANSFER OF MILITARY EQUIPMENT TO
EAST TIMOR
SEC. 571. In any agreement for the sale, transfer, or
licensing of any lethal equipment or helicopter for Indo-
nesia entered into by the United States pursuant to the au-
thority of this Act or any other Act, the agreement shall
state that such items will not be used in East Timor.
TRANSPARENCY OF BUDGETS
SEC. 572. Section 576(a)(1) of the Foreign Operations,
Export Financing, and Related Programs Appropriations
Act, 1997, as contained in Public Law 104–208, is amended
to read as follows:
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‘‘(1) does not have in place a functioning system
for reporting to civilian authorities audits of receipts
and expenditures that fund activities of the armed
forces and security forces;’’.
Section 576(a)(2) of the Foreign Operations, Export
Financing, and Related Programs Appropriations Act,
1997, as contained in Public Law 104–208, is amended to
read as follows:
‘‘(2) has not provided to the institution informa-
tion about the audit process requested by the institu-
tion.’’.
RESTRICTIONS ON FUNDING TO COUNTRIES PROVIDING
SANCTUARY TO INDICTED WAR CRIMINALS
SEC. 573. (a) BILATERAL ASSISTANCE.—None of the
funds made available by this or any prior Act making ap-
propriations for foreign operations, export promotion and
related programs, may be provided for any country de-
scribed in subsection (d).
(b) MULTILATERAL ASSISTANCE.—The Secretary of
the Treasury shall instruct the United States executive di-
rectors of the international financial institutions to work
in opposition to, and vote against, any extension by such
institutions of any financial or technical assistance or
grants of any kind to any country described in subsection
(d).
(c) EXCEPTIONS.—
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(1) IN GENERAL.—Subject to paragraph (2), sub-
sections (a) and (b) shall not apply to the provision
of—
(A) humanitarian assistance;
(B) democratization assistance; or
(C) assistance for physical infrastructure
projects involving activities in both a sanctioned
country and a nonsanctioned contiguous coun-
try, if the nonsanctioned country is the primary
beneficiary.
(2) FURTHER
LIMITATIONS.—Notwithstanding
paragraph (1)—
(A) no assistance may be made available by
this Act, or any other Act making appropria-
tions for foreign operations, export promotion
and related programs, for a program, project, or
activity in any country described in subsection
(d) in which an indicted war criminal has any
financial or material interest or through any or-
ganization in which the indicted individual is
affiliated; and
(B) no assistance (other than emergency
foods or medical assistance or demining assist-
ance) may be made available by this Act, or any
other Act making appropriations for foreign op-
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erations, export promotion and related programs
to any program, project, or activity in any area
of any country described in subsection (d) in
which local authorities are not complying with
the provisions of Article IX and Annex 4, Article
II of the Dayton Agreement relating to war
crimes and the Tribunal, or with the provisions
of Annex 7 of the Dayton Agreement relating to
the rights of refugees and displaced persons to re-
turn to their homes of origin.
(d) SANCTIONED COUNTRIES.—A country described in
this section is a country the authorities of which fail to
apprehend and transfer to the Tribunal all persons in terri-
tory that is under their effective control who have been in-
dicted by the Tribunal.
(e) WAIVER.—
(1) AUTHORITY.—The President may waive the
application of subsection (a) or subsection (b) with
respect to a country if the President determines and
certifies to the appropriate committees of Congress
within six months after the date of enactment of this
Act that a majority of the indicted persons who are
within territory that is under the effective control of
the country have been arrested and transferred to the
Tribunal.
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(2) PERIOD
OF
EFFECTIVENESS.—Any waiver
made pursuant to this subsection shall be effective for
a period of six months.
(f) TERMINATION OF SANCTIONS.—The sanctions im-
posed pursuant to subsection (a) or subsection (b) with re-
spect to a country shall cease to apply only if the President
determines and certifies to Congress that the authorities of
that country have apprehended and transferred to the Tri-
bunal all persons in territory that is under their effective
control who have been indicted by the Tribunal.
(g) DEFINITIONS.—As used in this section—
(1) COUNTRY.—The term ‘‘country’’ shall not in-
clude Bosnia and Herzegovina, and the provisions of
this Act shall be applied separately to its constituent
entities of Republika Srpska and the Federation of
Bosnia and Herzegovina.
(2) DAYTON
AGREEMENT.—The term ‘‘Dayton
Agreement’’ means the General Framework Agreement
for Peace in Bosnia and Herzegovina, together with
annexes relating thereto, done at Dayton, November
10 through 16, 1995.
(3) DEMOCRATIZATION ASSISTANCE.—The term
‘‘democratization assistance’’ includes electoral assist-
ance and assistance used in establishing the institu-
tions of a democratic and civil society.
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(4) HUMANITARIAN ASSISTANCE.—The term ‘‘hu-
manitarian assistance’’ includes assistance for food,
demining, refugees, housing, education, health care,
and other social services.
(5) TRIBUNAL.—The term ‘‘Tribunal’’ means the
International Criminal Tribunal for the Former
Yugoslavia.
EXTENSION OF CERTAIN ADJUDICATION PROVISIONS
SEC. 574. The Foreign Operations, Export Financing,
and Related Programs Appropriations Act, 1990 (Public
Law 101–167) is amended—
(1) in section 599D (8 U.S.C. 1157 note)—
(A) in subsection (b)(3), by striking ‘‘and
1997’’ and inserting ‘‘1997, and 1998’’; and
(B) in subsection (e), by striking ‘‘October
1, 1997’’ each place it appears and inserting
‘‘October 1, 1998’’; and
(2) in section 599E (8 U.S.C. 1255 note) in sub-
section (b)(2), by striking ‘‘September 30, 1997’’ and
inserting ‘‘September 30, 1998’’.
DEVELOPMENT CREDIT AUTHORITY
SEC. 575. For the cost, as defined in section 502 of
the Congressional Budget Act of 1974, of direct loans and
loan guarantees in support of the development objectives of
the Foreign Assistance Act of 1961 (FAA), up to
$10,000,000, which amount may be derived by transfer
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from funds appropriated by this Act to carry out part I
of the Foreign Assistance Act of 1961 and funds appro-
priated by this Act under the heading ‘‘Assistance for East-
ern Europe and the Baltic States’’, to remain available
until expended: Provided, That of this amount, up to
$1,500,000 for administrative expenses to carry out such
programs may be transferred to and merged with ‘‘Operat-
ing Expenses of the Agency for International Development’’:
Provided further, That the provisions of section 107A(d)
(relating to general provisions applicable to development
credit authority) of the Foreign Assistance Act of 1961, as
added by section 306 of H.R. 1486 as reported by the House
Committee on International Relations on May 9, 1997,
shall be applicable to direct loans and loan guarantees pro-
vided under this paragraph: Provided further, That direct
loans or loan guarantees under this paragraph may not be
provided until the Director of the Office of Management and
Budget has certified to the Committees on Appropriations
that the Agency for International Development has estab-
lished a credit management system capable of effectively
managing the credit programs funded under this heading,
including that such system (1) can provide accurate and
timely provision of loan and loan guarantee data, (2) con-
tains information control systems for loan and loan guar-
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antee data, (3) is adequately staffed, and (4) contains ap-
propriate review and monitoring procedures.
EXCESS DEFENSE ARTICLES FOR CERTAIN EUROPEAN
COUNTRIES
SEC. 576. Section 105 of Public Law 104–164 (110
Stat. 1427) is amended by striking ‘‘1996 and 1997’’ and
inserting ‘‘1998 and 1999’’.
ADDITIONAL REQUIREMENTS RELATING TO STOCKPILING
OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES
SEC. 577. (a) VALUE
OF ADDITIONS
TO STOCK-
PILES.—Section 514(b)(2)(A) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2321h(b)(2)(A)) is amended by inserting
before the period at the end the following: ‘‘and $60,000,000
for fiscal year 1998’’.
(b) REQUIREMENTS RELATING TO THE REPUBLIC OF
KOREA AND THAILAND.—Section 514(b)(2)(B) of such Act
(22 U.S.C. 2321h(b)(2)(B)) is amended by adding at the
end the following: ‘‘Of the amount specified in subpara-
graph (A) for fiscal year 1998, not more than $40,000,000
may be made available for stockpiles in the Republic of
Korea and not more than $20,000,000 may be made avail-
able for stockpiles in Thailand.’’.
DELIVERY OF DRAWDOWN BY COMMERCIAL
TRANSPORTATION SERVICES
SEC. 578. Section 506 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2318) is amended—
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(1) in subsection (b)(2), by striking the period
and inserting the following: ‘‘, including providing
the Congress with a report detailing all defense arti-
cles, defense services, and military education and
training delivered to the recipient country or inter-
national organization upon delivery of such articles
or upon completion of such services or education and
training. Such report shall also include whether any
savings were realized by utilizing commercial trans-
port services rather than acquiring those services from
United States Government transport assets.’’;
(2) by redesignating subsection (c) as subsection
(d); and
(3) by inserting after subsection (b) the follow-
ing:
‘‘(c) For the purposes of any provision of law that au-
thorizes the drawdown of defense or other articles or com-
modities, or defense or other services from an agency of the
United States Government, such drawdown may include the
supply of commercial transportation and related services
that are acquired by contract for the purposes of the
drawdown in question if the cost to acquire such commer-
cial transportation and related services is less than the cost
to the United States Government of providing such services
from existing agency assets.’’.
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SENSE OF THE SENATE REGARDING ESTONIA, LATVIA, AND
LITHUANIA.
SEC. 579. It is the sense of the Senate that Estonia,
Latvia, and Lithuania—
(1) are to be commended for their progress to-
ward political and economic reform and meeting the
guidelines for prospective NATO members;
(2) would make an outstanding contribution to
furthering the goals of NATO and enhancing stabil-
ity, freedom, and peace in Europe should they become
NATO members; and
(3) upon complete satisfaction of all relevant cri-
teria should be invited to become full NATO members
at the earliest possible date.
TO PROHIBIT FOREIGN ASSISTANCE TO THE GOVERNMENT
OF RUSSIA SHOULD IT ENACT LAWS WHICH WOULD
DISCRIMINATE AGAINST MINORITY RELIGIOUS FAITHS
IN THE RUSSIAN FEDERATION
SEC. 580. (a) None of the funds appropriated under
this Act may be made available for the Government of Rus-
sian Federation unless the President determines and cer-
tifies in writing to the Committee on Appropriations and
the Committee on Foreign Relations of the Senate that the
Government of the Russian Federation has enacted no stat-
ute or promulgated no executive order that would discrimi-
nate, or would have as its principal effect discrimination,
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against religious minorities in the Russian Federation in
violation of accepted international agreements on human
rights and religious freedoms to which the Russian Federa-
tion is a signatory, including the European Convention and
the 1989 Vienna Concluding Document of the Conference
on Security and Cooperation in Europe.
(b) This section shall become effective one day after the
enactment of this Act.
SENSE OF THE SENATE REGARDING SUPPORT FOR
COUNTRIES OF THE SOUTH CAUCASUS AND CENTRAL ASIA
SEC. 581. (a) FINDINGS.—Congress makes the follow-
ing findings:
(1) The ancient Silk Road, once the economic
lifeline of Central Asia and the South Caucasus, tra-
versed much of the territory now within the countries
of 
Armenia, 
Azerbaijan, 
Georgia, 
Kazakstan,
Kyrgyzstan, 
Tajikistan, 
Turkmenistan, 
and
Uzbekistan.
(2) Economic interdependence spurred mutual
cooperation among the peoples along the Silk Road
and restoration of the historic relationships and eco-
nomic ties between those peoples is an important ele-
ment of ensuring their sovereignty as well as the suc-
cess of democratic and market reforms.
(3) The development of strong political and eco-
nomic ties between countries of the South Caucasus
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and Central Asia and the West will foster stability in
the region.
(4) The development of open market economies
and open democratic systems in the countries of the
South Caucasus and Central Asis will provide posi-
tive incentives for international private investment,
increased trade, and other forms of commercial inter-
actions with the rest of the world.
(5) The Caspian Sea Basin, overlapping the ter-
ritory of the countries of the South Caucasus and
Central Asia, contains proven oil and gas reserves
that may exceed $4,000,000,000,000 in value.
(6) The region of the South Caucasus and
Central Asia will produce oil and gas in sufficient
quantities to reduce the dependence of the United
States on energy from the volatile Persian Gulf re-
gion.
(7) United States foreign policy and inter-
national assistance should be narrowly targeted to
support the economic and political independence of
the countries of the South Caucasus and Central Asia.
(b) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that the policy of the United States in the countries
of the South Caucasus and Central Asia should be—
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(1) to promote sovereignty and independence
with democratic government;
(2) to assist actively in the resolution of regional
conflicts;
(3) to promote friendly relations and economic
cooperation; and
(4) to help promote market-oriented principles
and practices;
(5) to assist in the development of infrastructure
necessary for communications, transportation, and
energy and trade on an East-West axis in order to
build strong international relations and commerce be-
tween those countries and the stable, democratic, and
market-oriented countries of the Euro-Atlantic Com-
munity; and
(6) to support United States business interests
and investments in the region.
(c) DEFINITION.—In this section, the term ‘‘countries
of the South Caucasus and Central Asia’’ means Armenia,
Azerbaijan, Georgia, Kazakstan, Kyrgystan, Tajikistan,
Turkmenistan, and Uzbekistan.
PROMOTION OF RELIGIOUS FREEDOM AND HUMAN RIGHTS
SEC. 582. (a) REPORTS.—Not later than March 30,
1998, and each subsequent year thereafter, the Secretary of
State shall submit to the International Relations Committee
of the House of Representatives and the Foreign Relations
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Committee of the Senate an annual report on religious per-
secution on a country-by-country basis. Reports shall in-
clude a list of individuals who have been materially in-
volved in the commission of acts of persecution that are mo-
tivated by a person’s religion.
(b) PRISONER INFORMATION REGISTRY.—The Sec-
retary of State shall establish a Prisoner Information Reg-
istry which shall provide information on all political pris-
oners, prisoners of conscience, and prisoners of faith on a
country-by-country basis. Such information shall include
the charges, judicial processes, administrative actions, use
of forced labor, incidences of torture, length of imprison-
ment, physical and health conditions, and other matters re-
lated to the incarceration of such prisoners. The Secretary
of State is authorized to make funds available to nongovern-
mental organizations presently engaged in monitoring ac-
tivities regarding such prisoners to assist in the creation
and maintenance of the registry.
(c) SENSE OF CONGRESS CONCERNING ESTABLISH-
MENT OF A COMMISSION ON SECURITY AND COOPERATION
IN ASIA.—It is the sense of the Congress that Congress, the
President, and the Secretary of State should work with the
governments of the People’s Republic of China and other
countries to establish a Commission on Security and Co-
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operation in Asia which would be modeled after the Com-
mission on Security and Cooperation in Europe.
UNITED STATES INTELLIGENCE ACTIVITIES RELATED TO
MONITORING HUMAN RIGHTS ABUSES AND RELIGIOUS
PERSECUTION
SEC. 583. (a) IN GENERAL.—The President shall de-
vote additional personnel and resources to gathering intel-
ligence information regarding human rights abuses and
acts of religious persecution.
(b) REPORT.—Not later than March 30, 1998, the
President shall submit to the Permanent Select Committee
on Intelligence of the House of Representatives and the Se-
lect Committee on Intelligence of the Senate a report on
the number of personnel and resources that are being de-
voted to gathering intelligence information regarding
human rights abuses and acts of religious persecution.
WILDLIFE CONSERVATION
SEC. 584. Of the funds appropriated by this Act, not
more than $2,900,000 may be made available for the Com-
munal Areas Management Programme for Indigenous Re-
sources (CAMPFIRE) in Zimbabwe: Provided, That none
of the funds appropriated by this Act may be used to di-
rectly finance the trophy hunting of elephants or other en-
dangered species as defined in the Convention on Inter-
national Trade in Endangered Species of Flora and Fauna
(CITES) or the Endangered Species Act: Provided further,
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That the funds appropriated by this Act that are provided
under the CAMPFIRE program may not be used for activi-
ties with the express intent to lobby or otherwise influence
international conventions or treaties, or United States Gov-
ernment decision makers: Provided further, That funds ap-
propriated by this Act that are made available for the
CAMPFIRE program may be used only in Zimbabwe for
the purpose of maximizing benefits to rural people while
strengthening natural resources management institutions:
Provided further, That not later than March 1, 1998, the
Administrator of the Agency for International Development
shall submit a report to the appropriate congressional com-
mittees describing the steps taken to implement the CAMP-
FIRE program, the impact of the program on the people
and wildlife of CAMPFIRE districts, alternatives to trophy
hunting as a means of generating income for CAMPFIRE
districts, and a description of how funds made available
for CAMPFIRE in fiscal year 1998 are to be used.
DEMOCRACY-BUILDING ACTIVITY IN PAKISTAN
SEC. 585. (a) OPIC.—Section 239(f) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2199(f)) is amended by
inserting ‘‘, or Pakistan’’ after ‘‘China’’.
(b) TRAINING ACTIVITY.—Section 638(b) of the For-
eign Assistance Act of 1961 (22 U.S.C. 2398(b)) is amend-
ed—
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(1) by inserting ‘‘or any activity to promote the
development of democratic institutions’’ after ‘‘activ-
ity’’; and
(2) by inserting ‘‘, Pakistan,’’ after ‘‘Brazil’’.
(c) TRADE AND DEVELOPMENT.—It is the sense of
Congress that the Director of the Trade and Development
Agency should use funds made available to carry out the
provisions of section 661 of the Foreign Assistance Act of
1961 (22 U.S.C. 2421) to promote United States exports
to Pakistan.
SENSE OF THE SENATE ON THE EUROPEAN COMMISSION’S
HANDLING OF THE BOEING AND MCDONNELL DOUGLAS
MERGER
SEC. 586. (a) FINDINGS.—(1) The Boeing Company
and McDonnell Douglas have announced their merger; and
(2) the Department of Defense has approved that merg-
er as consistent with the national security of the United
States; and
(3) the Federal Trade Commission has found that
merger not to violate the anti-trust laws of the United
States; and
(4) the European Commission has consistently criti-
cized and threatened the merger before, during and after
its consideration of the facts; and
(5) the sole true reason for the European Commission’s
criticism and imminent disapproval of the merger is to
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gain an unfair competitive advantage for Airbus, a govern-
ment owned aircraft manufacturer.
(b) SENSE OF SENATE.—Now therefore, it is the sense
of the Senate that—
(1) any such disapproval on the part of the Eu-
ropean Commission would constitute an unwarranted
and unprecedented interference in a United States
business transaction that would threaten thousands of
American aerospace jobs; and
(2) the Senate suggests that the President take
such actions as he deems appropriate to protect Unit-
ed States interests in connection therewith.
RESTRICTION ON ASSISTANCE MADE TO THE PALESTINIAN
AUTHORITY
SEC. 587. None of the funds appropriated or otherwise
made available by this Act may be obligated or expended
with respect to providing funds to the Palestinian Author-
ity, unless the President certifies to Congress that—
(1) the Palestinian Authority is using its maxi-
mum efforts to combat terrorism, and, in accordance
with the Oslo Accords, has ceased the use of violence,
threat of violence, or incitement to violence as a tool
of the Palestinian Authority’s policy toward Israel;
(2) after a full investigation by the Department
of Justice, the Executive branch of Government con-
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cludes that Chairman Arafat had no prior knowledge
of the World Trade Center bombing; and
(3) after a full inquiry by the Department of
State, the Executive branch of Government concludes
that Chairman Arafat did not authorize and did not
fail to use his authority to prevent the Tel Aviv cafe
bombing of March 21, 1997.
USE OF FUNDS FOR THE UNITED STATES-ASIA
ENVIRONMENTAL PARTNERSHIP
SEC. 588. Notwithstanding any other provision of law
that restricts assistance to foreign countries, funds appro-
priated by this or any other Act making appropriations
pursuant to part I of the Foreign Assistance Act of 1961
that are made available for the United States-Asia Envi-
ronmental Partnership may be made available for activities
for the People’s Republic of China.
REQUIREMENTS FOR THE REPORTING TO CONGRESS OF
THE COSTS TO THE FEDERAL GOVERNMENT ASSOCI-
ATED WITH THE PROPOSED AGREEMENT TO REDUCE
GREENHOUSE GAS EMISSIONS
SEC. 589. The President shall provide to the Congress
a detailed account of all Federal agency obligations and ex-
penditures for climate change programs and activities, do-
mestic and international, for fiscal year 1997, planned obli-
gations for such activities in fiscal year 1998, and any plan
for programs thereafter in the context of negotiations to
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amend the Framework Convention on Climate Change
(FCCC) to be provided to the appropriate congressional
committees no later than October 15, 1997.
AUTHORITY TO ISSUE INSURANCE AND EXTEND FINANCING
SEC. 590. (a) IN GENERAL.—Section 235(a) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2195(a)) is
amended—
(1) by striking paragraphs (1) and (2)(A) and
inserting the following:
‘‘(1) INSURANCE AND FINANCING.—(A) The max-
imum contingent liability outstanding at any one
time pursuant to insurance issued under section
234(a), and the amount of financing issued under sec-
tions 234 (b) and (c), shall not exceed in the aggre-
gate $29,000,000,000.’’;
(2) by redesignating paragraph (3) as para-
graph (2); and
(3) by amending paragraph (2) (as so redesig-
nated) by striking ‘‘1997’’ and inserting ‘‘1999’’.
(b) CONFORMING AMENDMENT.—Paragraph (2) of sec-
tion 235(a) of that Act (22 U.S.C. 2195(a)), as redesignated
by subsection (a), is further amended by striking ‘‘(a) and
(b)’’ and inserting ‘‘(a), (b), and (c)’’.