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sistance to the Federal Republic of Yugoslavia (or a suc-
cessor state) through international financial institutions.
(c) The determination and certification referred to in
subsection (a) is a determination by the President and a
certification to the Committees on Appropriations that the
Government of the Federal Republic of Yugoslavia (or a
government of a successor state) is—
(1) cooperating with the International Criminal
Tribunal for the former Yugoslavia including access
for investigators, the provision of documents, and
the surrender and transfer of indictees or assistance
in their apprehension, including making all prac-
ticable efforts to apprehend and transfer Ratko
Mladic;
(2) taking steps that are consistent with the
Dayton Accords to end Serbian financial, political,
security and other support which has served to
maintain separate Republika Srpska institutions;
and
(3) taking steps to implement policies which re-
flect a respect for minority rights and the rule of
law, including the release of political prisoners from
Serbian jails and prisons.
(d) This section shall not apply to Montenegro,
Kosovo, humanitarian assistance, assistance to promote
116
democracy in municipalities, or assistance to nongovern-
mental organizations to promote democracy.
COMMUNITY-BASED POLICE ASSISTANCE
SEC. 564. (a) AUTHORITY.—Funds made available
by this Act to carry out the provisions of chapter 1 of
part I and chapter 4 of part II of the Foreign Assistance
Act of 1961, may be used, notwithstanding section 660
of that Act, to enhance the effectiveness and account-
ability of civilian police authority in Jamaica and El Sal-
vador through training and technical assistance in human
rights, the rule of law, strategic planning, and through as-
sistance to foster civilian police roles that support demo-
cratic governance including assistance for programs to
prevent conflict and foster improved police relations with
the communities they serve.
(b) NOTIFICATION.—Assistance provided under sub-
section (a) shall be subject to the regular notification pro-
cedures of the Committees on Appropriations.
SPECIAL DEBT RELIEF FOR THE POOREST
SEC. 565. (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
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(2) credits extended or guarantees issued under
the Arms Export Control Act.
(b) LIMITATIONS.—
(1) The authority provided by subsection (a)
may be exercised only to implement multilateral offi-
cial debt relief and referendum agreements, com-
monly referred to as ‘‘Paris Club Agreed Minutes’’.
(2) The authority provided by subsection (a)
may be exercised only in such amounts or to such
extent as is provided in advance by appropriations
Acts.
(3) The authority provided by subsection (a)
may be exercised only with respect to countries with
heavy debt burdens that are eligible to borrow from
the International Development Association, but not
from the International Bank for Reconstruction and
Development, commonly referred to as ‘‘IDA-only’’
countries.
(c) CONDITIONS.—The authority provided by sub-
section (a) may be exercised only with respect to a country
whose government—
(1) does not have an excessive level of military
expenditures;
(2) has not repeatedly provided support for acts
of international terrorism;
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(3) is not failing to cooperate on international
narcotics control matters;
(4) (including its military or other security
forces) does not engage in a consistent pattern of
gross violations of internationally recognized human
rights; and
(5) is not ineligible for assistance because of the
application of section 527 of the Foreign Relations
Authorization Act, Fiscal Years 1994 and 1995.
(d) AVAILABILITY OF FUNDS.—The authority pro-
vided by subsection (a) may be used only with regard to
the funds appropriated by this Act under the heading
‘‘Debt Restructuring’’.
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A re-
duction of debt pursuant to subsection (a) shall not be
considered assistance for the purposes of any provision of
law limiting assistance to a country. The authority pro-
vided by subsection (a) may be exercised notwithstanding
section 620(r) of the Foreign Assistance Act of 1961 or
section 321 of the International Development and Food
Assistance Act of 1975.
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES
SEC. 566. (a) LOANS ELIGIBLE FOR SALE, REDUC-
TION, OR CANCELLATION.—
(1) AUTHORITY TO SELL, REDUCE, OR CANCEL
CERTAIN LOANS.—Notwithstanding any other provi-
119
sion of law, the President may, in accordance with
this section, sell to any eligible purchaser any
concessional loan or portion thereof made before
January 1, 1995, pursuant to the Foreign Assist-
ance Act of 1961, to the government of any eligible
country as defined in section 702(6) of that Act or
on receipt of payment from an eligible purchaser, re-
duce or cancel such loan or portion thereof, only for
the purpose of facilitating—
(A) debt-for-equity swaps, debt-for-develop-
ment swaps, or debt-for-nature swaps; or
(B) a debt buyback by an eligible country
of its own qualified debt, only if the eligible
country uses an additional amount of the local
currency of the eligible country, equal to not
less than 40 percent of the price paid for such
debt by such eligible country, or the difference
between the price paid for such debt and the
face value of such debt, to support activities
that link conservation and sustainable use of
natural resources with local community develop-
ment, and child survival and other child devel-
opment, in a manner consistent with sections
707 through 710 of the Foreign Assistance Act
of 1961, if the sale, reduction, or cancellation