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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. 555. None of the funds appropriated or other-
wise 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-
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.
EQUITABLE ALLOCATION OF FUNDS
SEC. 556. Not more than 18 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
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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.
SPECIAL DEBT RELIEF FOR THE POOREST
SEC. 557. (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;
(2) credits extended or guarantees issued under
the Arms Export Control Act; or
(3) any obligation or portion of such obligation
for a Latin American country, to pay for purchases
of United States agricultural commodities guaran-
teed by the Commodity Credit Corporation under ex-
port credit guarantee programs authorized pursuant
to section 5(f ) of the Commodity Credit Corporation
Charter Act of June 29, 1948, as amended, section
4(b) of the Food for Peace Act of 1966, as amended
(Public Law 89–808), or section 202 of the Agricul-
tural Trade Act of 1978, as amended (Public Law
95–501).
(b) LIMITATIONS.—
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(1) The authority provided by subsection (a)
may be exercised only to implement multilateral offi-
cial debt relief ad 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
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;
(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 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. 558. (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
January 1, 1995, pursuant to the Foreign Assist-
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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
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-