HR 3540 RH
Appropriations of the Senate and the Committee on Inter-
national Relations and the Committee on Appropriations
of the House of Representatives.
LIMITATION ON ASSISTANCE FOR THE PLO FOR THE
WEST BANK AND GAZA
SEC. 553. None of the funds appropriated by this Act
may be obligated for assistance for the Palestine Libera-
tion Organization for the West Bank and Gaza unless the
President has exercised the authority under section 604(a)
of the Middle East Peace Facilitation Act of 1995 (title
VI of Public Law 104–107) or any other legislation to sus-
pend or make inapplicable section 307 of the Foreign As-
sistance Act of 1961 and that suspension is still in effect:
Provided, That if the President fails to make the certifi-
cation under section 604(b)(2) of the Middle East Peace
Facilitation Act of 1995 or to suspend the prohibition
under other legislation, funds appropriated by this Act
may not be obligated for assistance for the Palestine Lib-
eration Organization for the West Bank and Gaza.
EXPORT FINANCING TRANSFER AUTHORITIES
SEC. 554. Not to exceed 5 percent of any appropria-
tion other than for administrative expenses made available
for fiscal year 1997 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
HR 3540 RH
such appropriation, except as otherwise specifically pro-
vided, shall be increased by more than 25 percent by any
such transfer: Provided, That the exercise of such author-
ity shall be subject to the regular notification procedures
of the Committees on Appropriations.
WAR CRIMES TRIBUNALS
SEC. 555. If the President determines that doing so
will contribute to a just resolution of charges regarding
genocide or other violations of international humanitarian
law, the President may direct a drawdown pursuant to sec-
tion 552(c) of the Foreign Assistance Act of 1961, as
amended, of up to $25,000,000 of commodities and serv-
ices for the United Nations War Crimes Tribunal estab-
lished with regard to the former Yugoslavia by the United
Nations Security Council or such other tribunals or com-
missions as the Council may establish to deal with such
violations, without regard to the ceiling limitation con-
tained in paragraph (2) thereof: Provided, That the deter-
mination required under this section shall be in lieu of
any determinations otherwise required under section
552(c): Provided further, That 60 days after the date of
enactment of this Act, and every 180 days thereafter, the
Secretary of State shall submit a report to the Committees
on Appropriations describing the steps the United States
Government is taking to collect information regarding alle-
gations of genocide or other violations of international law
HR 3540 RH
in the former Yugoslavia and to furnish that information
to the United Nations War Crimes Tribunal for the former
Yugoslavia.
LANDMINES
SEC. 556. Notwithstanding any other provision of
law, demining equipment available to any department or
agency and used in support of the clearing of landmines
for humanitarian purposes may be disposed of on a grant
basis in foreign countries, subject to such terms and condi-
tions as the President may prescribe.
RESTRICTIONS CONCERNING THE PALESTINIAN
AUTHORITY
SEC. 557. None of the funds appropriated by this Act
may be obligated or expended to create in any part of Je-
rusalem a new office of any department or agency of the
United States Government for the purpose of conducting
official United States Government business with the Pal-
estinian Authority over Gaza and Jericho or any successor
Palestinian governing entity provided for in the Israel-
PLO Declaration of Principles: Provided, That this re-
striction shall not apply to the acquisition of additional
space for the existing Consulate General in Jerusalem:
Provided further, That meetings between officers and em-
ployees of the United States and officials of the Palestin-
ian Authority, or any successor Palestinian governing en-
tity provided for in the Israel-PLO Declaration of Prin-
HR 3540 RH
ciples, for the purpose of conducting official United States
Government business with such authority should continue
to take place in locations other than Jerusalem. As has
been true in the past, officers and employees of the United
States Government may continue to meet in Jerusalem on
other subjects with Palestinians (including those who now
occupy positions in the Palestinian Authority), have social
contacts, and have incidental discussions.
PROHIBITION OF PAYMENT OF CERTAIN EXPENSES
SEC. 558. None of the funds appropriated or other-
wise made available by this Act under the heading
‘‘INTERNATIONAL MILITARY EDUCATION AND TRAINING’’
or ‘‘FOREIGN MILITARY FINANCING PROGRAM’’ for Infor-
mational Program activities may be obligated or expended
to pay for—
(1) alcoholic beverages;
(2) food (other than food provided at a military
installation) not provided in conjunction with Infor-
mational Program trips where students do not stay
at a military installation; or
(3) entertainment expenses for activities that
are substantially of a recreational character, includ-
ing entrance fees at sporting events and amusement
parks.
HR 3540 RH
HUMANITARIAN ASSISTANCE
SEC. 559. (a) IN GENERAL.—None of the funds
made available in this Act may be used for assistance in
support of any country when it is made known to the
President that the government of such country prohibits
or otherwise restricts, directly or indirectly, the transport
or delivery of United States humanitarian assistance.
(b) EXCEPTION.—Funds may be made available with-
out regard to the restriction in subsection (a) if the Presi-
dent determines that to do so is in the national security
interest of the United States.
WITHHOLDING OF ASSISTANCE TO COUNTRIES
SUPPORTING NUCLEAR PLANT IN CUBA
SEC. 560. (a) WITHHOLDING.—The President shall
withhold from assistance made available with funds appro-
priated or made available pursuant to this Act an amount
equal to the sum of assistance and credits, if any, provided
on or after the date of the enactment of this Act by that
country, or any entity in that country, in support of the
completion of the Cuban nuclear facility at Juragua, near
Cienfuegos, Cuba.
(b) EXCEPTIONS.—The requirement of subsection (a)
to withhold assistance shall not apply with respect to—
(1) assistance to meet urgent humanitarian
needs including disaster and refugee relief;
HR 3540 RH
(2) democratic political reform and rule of law
activities;
(3) support for private sector and nongovern-
mental organizations that are independent of govern-
ment control;
(4) the development of a free market economic
system; and
(5) assistance for the purposes described in the
Cooperative Threat Reduction Act of 1993 (title XII
of Public Law 103–160).
EQUITABLE ALLOCATION OF FUNDS
SEC. 561. Not more than 20 percent of the funds
appropriated by this Act to carry out the provisions of sec-
tions 103 through 106 and chapter 4 of part II of the
Foreign Assistance Act of 1961, that are made available
for Latin America and the Caribbean region may be made
available, through bilateral and Latin America and the
Caribbean regional programs, to provide assistance for
any country in such region.
PURCHASE OF AMERICAN-MADE EQUIPMENT AND
PRODUCTS
SEC. 562. (a) SENSE OF CONGRESS.—It is the sense
of the Congress that, to the greatest extent practicable,
all equipment and products purchased with funds made
available in this Act should be American-made.
HR 3540 RH
(b) NOTICE REQUIREMENT.—In providing financial
assistance to, or entering into any contract with, any en-
tity using funds made available in this Act, the head of
each Federal agency, to the greatest extent practicable,
shall provide to such entity a notice describing the state-
ment made in subsection (a) by the Congress.
LIMITATION OF FUNDS FOR NORTH AMERICAN
DEVELOPMENT BANK
SEC. 563. None of the funds appropriated in this Act
under the heading ‘‘North American Development Bank’’
and made available for the Community Adjustment and
Investment Program shall be used for purposes other than
those set out in the binational agreement establishing the
Bank.
INTERNATIONAL DEVELOPMENT ASSOCIATION
SEC. 564. In order to pay for the United States con-
tribution to the tenth replenishment of the resources of
the International Development Association authorized in
section 526 of Public Law 103–87, there is authorized to
be 
appropriated, 
without 
fiscal 
year 
limitation,
$525,000,000 for payment by the Secretary of the Treas-
ury.
SPECIAL DEBT RELIEF FOR THE POOREST
SEC. 565. (a) AUTHORITY TO REDUCE DEBT.—The
President may reduce amounts owed to the United States
HR 3540 RH
(or any agency of the United States) by an eligible country
as a result of—
(1) guarantees issued under sections 221 and
222 of the Foreign Assistance Act of 1961; or
(2) credits extended or guarantees issued under
the Arms Export Control Act.
(b) LIMITATIONS.—
(1) The authority provided by subsection (a)
may be exercised only to implement multilateral offi-
cial debt relief and referendum agreements, com-
monly referred to as ‘‘Paris Club Agreed Minutes’’.
(2) The authority provided by subsection (a)
may be exercised only in such amounts or to such
extent as is provided in advance by appropriations
Acts.
(3) The authority provided by subsection (a)
may be exercised only with respect to countries with
heavy debt burdens that are eligible to borrow from
the International Development Association, but not
from the International Bank for Reconstruction and
Development, commonly referred to as ‘‘IDA-only’’
countries.
(c) CONDITIONS.—The authority provided by sub-
section (a) may be exercised only with respect to a country
whose government—
HR 3540 RH
(1) does not have an excessive level of military
expenditures;
(2) has not repeatedly provided support for acts
of international terrorism;
(3) is not failing to cooperate on international
narcotics control matters;
(4) (including its military or other security
forces) does not engage in a consistent pattern of
gross violations of internationally recognized human
rights; and
(5) is not ineligible for assistance because of the
application of section 527 of the Foreign Relations
Authorization Act, fiscal years 1994 and 1995.
(d) AVAILABILITY OF FUNDS.—The authority pro-
vided by subsection (a) may be used only with regard to
funds appropriated by this Act under the heading ‘‘Debt
restructuring’’.
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A re-
duction of debt pursuant to subsection (a) shall not be
considered assistance for purposes of any provision of law
limiting assistance to a country. The authority provided
by subsection (a) may be exercised notwithstanding sec-
tion 620(r) of the Foreign Assistance Act of 1961.
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES
SEC. 566. (a) LOANS ELIGIBLE FOR SALE, REDUC-
TION, OR CANCELLATION.—
HR 3540 RH
(1) AUTHORITY TO SELL, REDUCE, OR CANCEL
CERTAIN LOANS.—Notwithstanding any other provi-
sion of law, the President may, in accordance with
this section, sell to any eligible purchaser any
concessional loan or portion thereof made before
January 1, 1995, pursuant to the Foreign Assist-
ance Act of 1961, to the government of any eligible
country as defined in section 702(6) of that Act or
on receipt of payment from an eligible purchaser, re-
duce or cancel such loan or portion thereof, only for
the purpose of facilitating—
(A) debt-for-equity swaps, debt-for-develop-
ment swaps, or debt-for-nature swaps; or
(B) a debt buyback by an eligible country
of its own qualified debt, only if the eligible
country uses an additional amount of the local
currency of the eligible country, equal to not
less than 40 percent of the price paid for such
debt by such eligible country, or the difference
between the price paid for such debt and the
face value of such debt, to support activities
that link conservation and sustainable use of
natural resources with local community develop-
ment, and child survival and other child devel-
opment, in a manner consistent with sections
HR 3540 RH
707 through 710 of the Foreign Assistance Act
of 1961, if the sale, reduction, or cancellation
would not contravene any term or condition of
any prior agreement relating to such loan.
(2) TERMS AND CONDITIONS.—Notwithstanding
any other provision of law, the President shall, in ac-
cordance with this section, establish the terms and
conditions under which loans may be sold, reduced,
or canceled pursuant to this section.
(3) ADMINISTRATION.—The Facility, as defined
in section 702(8) of the Foreign Assistance Act of
1961, shall notify the administrator of the agency
primarily responsible for administering part I of the
Foreign Assistance Act of 1961 of purchasers that
the President has determined to be eligible, and
shall direct such agency to carry out the sale, reduc-
tion, or cancellation of a loan pursuant to this sec-
tion. Such agency shall make an adjustment in its
accounts to reflect the sale, reduction, or cancella-
tion.
(4) LIMITATION.—The authorities of this sub-
section shall be available only to the extent that ap-
propriations for the cost of the modification, as de-
fined in section 502 of the Congressional Budget Act
of 1974, are made in advance.
HR 3540 RH
(b) DEPOSIT OF PROCEEDS.—The proceeds from the
sale, reduction, or cancellation of any loan sold, reduced,
or canceled pursuant to this section shall be deposited in
the United States Government account or accounts estab-
lished for the repayment of such loan.
(c) ELIGIBLE PURCHASERS.—A loan may be sold
pursuant to subsection (a)(1)(A) only to a purchaser who
presents plans satisfactory to the President for using the
loan for the purpose of engaging in debt-for-equity swaps,
debt-for-development swaps, or debt-for-nature swaps.
(d) DEBTOR CONSULTATIONS.—Before the sale to
any eligible purchaser, or any reduction or cancellation
pursuant to this section, of any loan made to an eligible
country, the President should consult with the country
concerning the amount of loans to be sold, reduced, or
canceled and their uses for debt-for-equity swaps, debt-
for-development swaps, or debt-for-nature swaps.
(e) AVAILABILITY OF FUNDS.—The authority pro-
vided by subsection (a) may be used only with regard to
funds appropriated by this Act under the heading ‘‘Debt
restructuring’’.
LIBERIA
SEC. 567. 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.