I
104TH CONGRESS
1ST SESSION
H. R. 1563
To authorize appropriations for foreign assistance programs, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 3, 1995
Mr. GILMAN introduced the following bill; which was referred to the Commit-
tee on International Relations, and in addition to the Committee on
Rules, for a period to be subsequently determined by the Speaker, in each
case for consideration of such provisions as fall within the jurisdiction of
the committee concerned
A BILL
To authorize appropriations for foreign assistance programs,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
DIVISION C—FOREIGN
ASSISTANCE AUTHORIZATIONS
SECTION 3001. SHORT TITLE.
This Act may be cited as the ‘‘Foreign Aid Reduction
Act of 1995’’.
SEC. 3002. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
DIVISION C—FOREIGN ASSISTANCE AUTHORIZATIONS
Sec. 3001. Short title.
Sec. 3002. Table of contents.
Sec. 3003. Declaration of policy.
TITLE XXXI—DEFENSE AND SECURITY ASSISTANCE
CHAPTER 1—MILITARY AND RELATED ASSISTANCE
SUBCHAPTER A—FOREIGN MILITARY FINANCING PROGRAM
Sec. 3101. Authorization of appropriations.
Sec. 3102. Assistance for Israel.
Sec. 3103. Assistance for Egypt.
Sec. 3104. Loans for Greece and Turkey.
Sec. 3105. Loans for the Czech Republic, Hungary, and Poland.
Sec. 3106. Terms of loans.
SUBCHAPTER B—OTHER ASSISTANCE
Sec. 3121. Defense drawdown special authorities.
Sec. 3122. Stockpiles of defense articles.
Sec. 3123. Transfer of excess defense articles.
CHAPTER 2—INTERNATIONAL MILITARY EDUCATION AND TRAINING
Sec. 3141. Authorization of appropriations.
Sec. 3142. Assistance for Indonesia.
Sec. 3143. Test pilot exchange training.
CHAPTER 3—ANTITERRORISM ASSISTANCE
Sec. 3151. Authorization of appropriations.
Sec. 3152. Antiterrorism training assistance.
CHAPTER 4—NARCOTICS CONTROL ASSISTANCE
Sec. 3161. Authorization of appropriations.
Sec. 3162. Additional requirements relating to narcotics control assistance.
Sec. 3163. Notification requirement.
Sec. 3164. Waiver of restrictions for narcotics-related economic assistance.
CHAPTER 5—NONPROLIFERATION AND DISARMAMENT FUND
Sec. 3171. Nonproliferation and Disarmament Fund.
CHAPTER 6—OTHER PROVISIONS
Sec. 3181. Standardization of congressional review procedures for arms trans-
fers.
Sec. 3182. Standardization of third country transfers of defense articles.
Sec. 3183. Increased standardization, rationalization, and interoperability of as-
sistance and sales programs.
Sec. 3184. Repeal of price and availability reporting requirement relating to
proposed sale of defense articles and services.
Sec. 3185. Definition of significant military equipment.
Sec. 3186. Elimination of Special Defense Acquisition Fund annual report.
Sec. 3187. Cost of leased defense articles that have been lost or destroyed.
Sec. 3188. Designation of major non-NATO allies.
Sec. 3189. Certification thresholds.
Sec. 3190. Competitive pricing for sales of defense articles and services.
Sec. 3191. Depleted uranium ammunition.
TITLE XXXII—ECONOMIC ASSISTANCE
CHAPTER 1—ECONOMIC SUPPORT ASSISTANCE
Sec. 3201. Economic support fund.
Sec. 3202. Assistance for Israel.
Sec. 3203. Assistance for Egypt.
Sec. 3204. International Fund for Ireland.
Sec. 3205. Law enforcement assistance.
CHAPTER 2—ASSISTANCE FOR PRIVATE SECTOR PROGRAMS AND ACTIVITIES
Sec. 3211. Private sector enterprise funds.
Sec. 3212. Trans-Caucasus enterprise funds.
Sec. 3213. Micro- and small enterprise development credits.
Sec. 3214. Microenterprise development grants.
CHAPTER 3—DEVELOPMENT ASSISTANCE
SUBCHAPTER A—DEVELOPMENT ASSISTANCE AUTHORITIES
Sec. 3221. Authorizations of appropriations.
Sec. 3222. Assistance for family planning.
Sec. 3223. Assistance for the independent states of the former Soviet Union.
Sec. 3224. Effectiveness of United States development assistance.
SUBCHAPTER B—OPERATING EXPENSES
Sec. 3231. Operating expenses generally.
Sec. 3232. Operating expenses of the office of the Inspector General.
CHAPTER 4—PUBLIC LAW 480
Sec. 3241. Authorization of appropriations.
CHAPTER 5—HOUSING GUARANTEE PROGRAM
Sec. 3251. Authorization of appropriations for administrative expenses.
CHAPTER 6—PEACE CORPS
Sec. 3261. Peace Corps.
Sec. 3262. Activities of the Peace Corps in the former Soviet Union.
Sec. 3263. Prohibition on use of funds for abortions.
CHAPTER 7—INTERNATIONAL DISASTER ASSISTANCE
Sec. 3271. Authority to provide reconstruction assistance.
Sec. 3272. Authorizations of appropriations.
CHAPTER 8—OTHER PROVISIONS
Sec. 3281. Exemption from restrictions on assistance through nongovernmental
organizations.
Sec. 3282. Funding requirements relating to United States private and vol-
untary organizations.
Sec. 3283. Documentation requested of private and voluntary organizations.
Sec. 3284. Foreign government parking fines.
TITLE XXXIII—REGIONAL PROVISIONS
Sec. 3301. Prohibition on assistance to foreign governments providing assist-
ance to Cuba.
Sec. 3302. Assistance for Nicaragua.
Sec. 3303. Eligibility of Panama under Arms Export Control Act.
Sec. 3304. Future of the United States military presence in Panama.
Sec. 3305. Peace and stability in the South China Sea.
Sec. 3306. Assistance for Zaire.
TITLE XXXIV—SPECIAL AUTHORITIES AND OTHER PROVISIONS
CHAPTER 1—SPECIAL AUTHORITIES
Sec. 3401. Enhanced transfer authority.
Sec. 3402. Authority to meet unanticipated contingencies.
Sec. 3403. Special waiver authority.
Sec. 3404. Termination of assistance.
CHAPTER 2—OTHER PROVISIONS
Sec. 3411. Congressional presentation documents.
Sec. 3412. Prohibition on assistance to foreign governments engaged in espio-
nage against the United States.
Sec. 3413. Debt restructuring for foreign assistance.
Sec. 3414. Debt buybacks or sales for debt swaps.
Sec. 3415. Impact on jobs in the United States.
Sec. 3416. Prohibition on assistance to foreign governments that export lethal
military equipment to countries supporting international terror-
ism.
CHAPTER 3—REPEALS
Sec. 3421. Repeal of obsolete provisions.
TITLE XXXV—EFFECTIVE DATE
Sec. 3501. Effective date.
SEC. 3003. DECLARATION OF POLICY.
The Congress declares the following:
(1) United States leadership overseas must be
maintained to support our vital national security,
economic, and humanitarian interests.
(2) As part of this leadership, United States
foreign assistance programs are essential to support
these national interests.
(3) However, United States foreign assistance
programs can be responsibly reduced while maintain-
ing United States leadership overseas.
TITLE XXXI—DEFENSE AND
SECURITY ASSISTANCE
CHAPTER 1—MILITARY AND RELATED
ASSISTANCE
Subchapter A—Foreign Military Financing
Program
SEC. 3101. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for grant as-
sistance under section 23 of the Arms Export Control Act
(22 U.S.C. 2763) and for the subsidy cost, as defined in
section 502(5) of the Federal Credit Reform Act of 1990,
of direct loans under such section—
(1) $3,341,440,000 for fiscal year 1996; and
(2) $3,270,020,000 for fiscal year 1997.
SEC. 3102. ASSISTANCE FOR ISRAEL.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1996 and 1997 for assistance
under the ‘‘Foreign Military Financing Program’’ account
under section 23 of the Arms Export Control Act (22
U.S.C. 2763), not less than $1,800,000,000 for each such
fiscal year shall be available only for Israel.
(b) TERMS OF ASSISTANCE.—
(1) GRANT BASIS.—The assistance provided for
Israel for each fiscal year under subsection (a) shall
be provided on a grant basis.
(2) EXPEDITED DISBURSEMENT.—Such assist-
ance shall be disbursed—
(A) with respect to fiscal year 1996, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Fi-
nancing, and Related Programs Appropriations
Act, 1996, or by October 31, 1995, whichever
is later; and
(B) with respect to fiscal year 1997, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Fi-
nancing, and Related Programs Appropriations
Act, 1997, or by October 31, 1996, whichever
is later.
(3) ADVANCED WEAPONS SYSTEMS.—To the ex-
tent that the Government of Israel requests that
funds be used for such purposes, funds described in
subsection (a) shall, as agreed by the Government of
Israel and the Government of the United States, be
available for advanced weapons systems, of which
not less than $475,000,000 for each fiscal year shall
be available only for procurement in Israel of de-
fense articles and defense services, including re-
search and development.
(c) FOREIGN MILITARY SALES.—Section 21(h) of
the Arms Export Control Act (22 U.S.C. 2761(h)) is
amended—
(1) in paragraph (1)(A), by inserting ‘‘or ‘‘the
Government of Israel after ‘‘North Atlantic Treaty
Organization’’; and
(2) in paragraph (2), by striking ‘‘or to any
member government of that Organization if that Or-
ganization or member government’’ and inserting
‘‘, any member government of that Organization, or
the Government of Israel, if the Organization, mem-
ber government, or Government of Israel, as the
case may be,’’.
SEC. 3103. ASSISTANCE FOR EGYPT.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1996 and 1997 for assistance
under the ‘‘Foreign Military Financing Program’’ account
under section 23 of the Arms Export Control Act (22
U.S.C. 2763), not less than $1,300,000,000 for each such
fiscal year shall be available only for Egypt.
SEC. 3106. TERMS OF LOANS.
Section 31(c) of the Arms Export Control Act (22
U.S.C. 2771(c)) is amended to read as follows:
‘‘(c) Loans available under section 23 shall be pro-
vided at rates of interest that are not less than the current
average market yield on outstanding marketable obliga-
tions of the United States of comparable maturities.’’.
Subchapter B—Other Assistance
SEC. 3121. DEFENSE DRAWDOWN SPECIAL AUTHORITIES.
(a) MILITARY ASSISTANCE DRAWDOWN.—Section
506(a)(1) of the Foreign Assistance Act of 1961 (22
U.S.C. 2318(a)(1)) is amended by striking ‘‘$75,000,000’’
and inserting ‘‘$100,000,000’’.
(b) NONMILITARY ASSISTANCE DRAWDOWN.—Sec-
tion 506 of such Act (22 U.S.C. 2318) is amended—
(1) in subsection (a)(2)(A), by striking ‘‘di-
rect—’’ and all that follows through the period and
inserting the following: ‘‘direct the drawdown of
such articles, services, and education and training
for the purposes and under the authorities of—
‘‘(i) chapter 8 of part I (relating to inter-
national narcotics control assistance),
‘‘(ii) chapter 9 of part I (relating to inter-
national disaster assistance), or
‘‘(iii) the Migration and Refugee Assistance Act
of 1962.’’;
(2) in subsection (a)(2)(B)—
(A) by striking ‘‘$75,000,000’’ and insert-
ing ‘‘$150,000,000’’; and
(B) by striking ‘‘of this paragraph’’ and
inserting the following: ‘‘of this paragraph—
‘‘(i) not more than $75,000,000 of which
may be provided from the drawdown from the
inventory and resources of the Department of
Defense; and
‘‘(ii) not more than $75,000,000 of which
may be provided pursuant to clause (i) of such
subparagraph’’; and
(3) in subsection (b)(1), by adding at the end
the following: ‘‘In the case of drawdowns authorized
by clauses (i) and (iii) of subsection (a)(2)(A), noti-
fications shall be provided to those committees at
least 15 days in advance in accordance with the pro-
cedures applicable to reprogramming notifications
under section 634A.’’.
(c) NOTICE TO CONGRESS OF EXERCISE OF SPECIAL
AUTHORITIES.—Section 652 of such Act (22 U.S.C.
2411) is amended by striking ‘‘prior to the date’’ and in-
serting ‘‘before’’.
SEC. 3122. STOCKPILES OF DEFENSE ARTICLES.
(a) LIMITATION ON VALUE OF ADDITIONS.—Section
514(b)(1) of the Foreign Assistance Act of 1961 (22
U.S.C. 2321h(b)(1)) is amended by inserting ‘‘or in the
implementation of agreements with Israel’’ after ‘‘North
Atlantic Treaty Organization’’.
(b) ADDITIONS IN FISCAL YEARS 1996 AND 1997.—
Section 514(b)(2) of such Act (22 U.S.C. 2321h(b)(2))
is amended to read as follows:
‘‘(2)(A) The value of such additions to stockpiles of
defense articles in foreign countries shall not exceed
$50,000,000 for each of the fiscal years 1996 and 1997.
‘‘(B) Of the amount specified in subparagraph (A)
for each of the fiscal years 1996 and 1997, not more than
$40,000,000 may be made available for stockpiles in the
Republic of Korea and not more than $10,000,000 may
be made available for stockpiles in Thailand.’’.
(c) LOCATION OF STOCKPILES OF DEFENSE ARTI-
CLES.—Section 514(c) of such Act (22 U.S.C. 2321h(c))
is amended to read as follows:
‘‘(c) LOCATION OF STOCKPILES OF DEFENSE ARTI-
CLES.—
‘‘(1) LIMITATION.—Except as provided in para-
graph (2), no stockpile of defense articles may be lo-
cated outside the boundaries of a United States mili-
tary base or a military base used primarily by the
United States.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
apply with respect to stockpiles of defense articles
located in the Republic of Korea, Thailand, any
country that is a member of the North Atlantic
Treaty Organization, any country that is a major
non-NATO ally, or any other country the President
may designate. At least 15 days before designating
a country pursuant to the last clause of the preced-
ing sentence, the President shall notify the congres-
sional committees specified in section 634A(a) in ac-
cordance 
with 
the 
procedures 
applicable 
to
reprogramming notifications under that section.’’.
SEC. 3123. TRANSFER OF EXCESS DEFENSE ARTICLES.
(a) IN GENERAL.—Section 516 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2321j) is amended to read
as follows:
‘‘SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE AR-
TICLES.
‘‘(a) AUTHORIZATION.—The President is authorized
to transfer excess defense articles under this section to
countries for which receipt of such articles was justified
pursuant to the annual congressional presentation docu-
ments for military assistance programs submitted under
section 634 of this Act, or for which receipt of such arti-
cles was separately justified, for the fiscal year in which
the transfer is authorized.
‘‘(b) LIMITATIONS ON TRANSFERS.—The President
may transfer excess defense articles under this section
only if—
‘‘(1) such articles are drawn from existing
stocks of the Department of Defense;
‘‘(2) funds available to the Department of De-
fense for the procurement of defense equipment are
not expended in connection with the transfer;
‘‘(3) the transfer of such articles will not have
an adverse impact on the military readiness of the
United States;
‘‘(4) with respect to a proposed transfer of such
articles on a grant basis, such a transfer is pref-
erable to a transfer on a sales basis, after taking
into account the potential proceeds from, and likeli-
hood of, such sales, and the comparative foreign pol-
icy benefits that may accrue to the United States as
the result of a transfer on either a grant or sales
basis;
‘‘(5) the President first considers the effects of
the transfer of such articles on the national tech-
nology and industrial base, particularly the extent, if
any, to which the transfer reduces the opportunities
of entities in the national technology and industrial
base to sell new equipment to the countries to which
such articles are transferred; and
‘‘(6) the transfer of such articles is consistent
with the policy framework for the Eastern Medi-
terranean established under section 620C of this
Act.
‘‘(c) TERMS OF TRANSFERS.—Excess defense articles
may be transferred under this section without cost to the
recipient country.
‘‘(d) WAIVER OF REQUIREMENT FOR REIMBURSE-
MENT OF DEPARTMENT OF DEFENSE EXPENSES.—Sec-
tion 632(d) shall not apply with respect to transfers of
excess defense articles under this section.
‘‘(e) TRANSPORTATION AND RELATED COSTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), funds available to the Department of De-
fense may not be expended for crating, packing,
handling, and transportation of excess defense arti-
cles transferred under the authority of this section.
‘‘(2) EXCEPTION.—The President may provide
for the transportation of excess defense articles with-
out charge to a country for the costs of such trans-
portation if—
‘‘(A) it is determined that it is in the na-
tional interest of the United States to do so;
‘‘(B) the recipient is a developing country
receiving less than $10,000,000 of assistance
under chapter 5 of part II of this Act (relating
to international military education and train-
ing) or section 23 of the Arms Export Control
Act (22 U.S.C. 2763; relating to the Foreign
Military Financing program) in the fiscal year
in which the transportation is provided;
‘‘(C) the total weight of the transfer does
not exceed 25,000 pounds; and
‘‘(D) such transportation is accomplished
on a space available basis.
‘‘(f) ADVANCE NOTIFICATION
TO CONGRESS
FOR
TRANSFER OF CERTAIN EXCESS DEFENSE ARTICLES.—
‘‘(1) IN
GENERAL.—The President may not
transfer excess defense articles that are significant
military equipment (as defined in section 47(9) of
the Arms Export Control Act) or excess defense arti-
cles valued (in terms of original acquisition cost) at
$7,000,000 or more, under this section or under the
Arms Export Control Act (22 U.S.C. 2751 et seq.)
until 15 days after the date on which the President
has provided notice of the proposed transfer to the
congressional 
committees 
specified 
in 
section
634A(a) in accordance with procedures applicable to
reprogramming notifications under that section.
‘‘(2) CONTENTS.—Such notification shall in-
clude—
‘‘(A) a statement outlining the purposes
for which the article is being provided to the
country, including whether such article has
been previously provided to such country;
‘‘(B) an assessment of the impact of the
transfer on the military readiness of the United
States; and
‘‘(C) a statement describing the current
value of such article and the value of such arti-
cle at acquisition.
‘‘(g) AGGREGATE ANNUAL LIMITATION.—The aggre-
gate value of excess defense articles transferred to coun-
tries under this section in any fiscal year may not exceed
$350,000,000.
‘‘(h) 
CONGRESSIONAL
PRESENTATION
DOCU-
MENTS.—Documents described in subsection (a) justifying
the transfer of excess defense articles shall include an ex-
planation of the general purposes of providing excess de-
fense articles as well as a table which provides an aggre-
gate annual total of transfers of excess defense articles
in the preceding year by country in terms of offers and
actual deliveries and in terms of acquisition cost and cur-
rent value. Such table shall indicate whether such excess
defense articles were provided on a grant or sale basis.
‘‘(i) EXCESS COAST GUARD PROPERTY.—For pur-
poses of this section, the term ‘excess defense articles’
shall be deemed to include excess property of the Coast
Guard, and the term ‘Department of Defense’ shall be
deemed, with respect to such excess property, to include
the Coast Guard.’’.
(b) REPEALS.—The following provisions of law are
hereby repealed:
(1) Section 502A of the Foreign Assistance Act
of 1961 (22 U.S.C. 2303).
(2) Sections 517 through 520 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2321k through
2321n).
(3) Section 31(d) of the Arms Export Control
Act (22 U.S.C. 2771(d)).
CHAPTER 2—INTERNATIONAL MILITARY
EDUCATION AND TRAINING
SEC. 3141. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated $28,500,000
for each of the fiscal years 1996 and 1997 to carry out
chapter 5 of part II of the Foreign Assistance Act of 1961
(22 U.S.C. 2347 et seq.).
SEC. 3142. ASSISTANCE FOR INDONESIA.
Funds made available for fiscal years 1996 and 1997
to carry out chapter 5 of part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2347 et seq.; relating to the inter-
national military education and training program) may be
obligated for Indonesia only for expanded military and
education training that meets the requirements of clauses
(i) through (iv) of the second sentence of section 541 of
such Act (22 U.S.C. 2347).
SEC. 3143. TEST PILOT EXCHANGE TRAINING.
Section 544 of the Foreign Assistance Act of 1961
(22 U.S.C. 2347c) is amended—
(1) by striking ‘‘In carrying out this chapter’’
and inserting ‘‘(a) In carrying out this chapter’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) The President may provide for the attendance
of foreign military and civilian defense personnel at test
pilot flight schools in the United States without charge
if such attendance is pursuant to an agreement providing
for the exchange of students on a one-for-one basis each
fiscal year between those United States test pilot flight
schools and comparable flight test pilot schools of foreign
countries.’’.
CHAPTER 3—ANTITERRORISM
ASSISTANCE
SEC. 3151. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated $25,000,000 for fiscal year 1996 and $30,000,000
for fiscal year 1997 to carry out chapter 8 of part II of
the Foreign Assistance Act of 1961 (22 U.S.C. 2349aa
et seq.).
(b) AVAILABILITY OF AMOUNTS.—Amounts author-
ized to be appropriated under subsection (a) are author-
ized to remain available until expended.
SEC. 3152. ANTITERRORISM TRAINING ASSISTANCE.
(a) IN GENERAL.—Section 571 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2349aa) is amended by strik-
ing ‘‘Subject to the provisions of this chapter’’ and insert-
ing ‘‘Notwithstanding any other provision of law that re-
stricts assistance to foreign countries (other than sections
502B and 620A of this Act)’’.
(b) LIMITATIONS.—Section 573 of such Act (22
U.S.C. 2349aa–2) is amended—
(1) in the heading, by striking ‘‘SPECIFIC AU-
THORITIES AND’’;
(2) by striking subsection (a);
(3) by redesignating subsections (b) through (f)
as subsections (a) through (e), respectively; and
(4) in subsection (c) (as redesignated)—
(A) by striking paragraphs (1) and (2);
(B) 
by 
redesignating 
paragraphs 
(3)
through (5) as paragraphs (1) through (3), re-
spectively; and
(C) by amending paragraph (2) (as redes-
ignated) to read as follows:
‘‘(2)(A) Except as provided in subparagraph
(B), funds made available to carry out this chapter
shall not be made available for the procurement of
weapons and ammunition.
‘‘(B) Subparagraph (A) shall not apply to small
arms and ammunition in categories I and III of the
United States Munitions List that are integrally and
directly related to antiterrorism training provided
under this chapter if, at least 15 days before obligat-
ing those funds, the President notifies the appro-
priate congressional committees in accordance with
the procedures applicable to reprogramming notifica-
tions under section 634A.
‘‘(C) The value (in terms of original acquisition
cost) of all equipment and commodities provided
under this chapter in any fiscal year may not exceed