124
(B) has not within a reasonable period of
time provided adequate and effective compensa-
tion or is not engaged in good faith efforts to
negotiate a settlement, if the United States per-
son has exhausted host country legal and other
formal remedies.
(4) MILITARY COUPS.—A country whose duly-
elected Head of Government is deposed by military
coup or decree unless subsequent to the military
coup or decree a democratically-elected government
has taken office.
(5) TERRORIST COUNTRIES.—A country whose
government the President determines repeatedly pro-
vides support for acts of international terrorism.
(6) MAJOR
ILLICIT
DRUG
PRODUCING
OR
MAJOR DRUG TRANSIT COUNTRIES.—A country de-
scribed in section 7206.
(7) COUNTRIES IN ARREARS.—A country that
is more than one year in arrears to the United
States Government on any payment of interest or
principal on any loan made or credit extended under
this Act, the Arms Export Control Act, or the
former authorities of the Foreign Assistance Act of
1961.
(b) EXCEPTIONS.—
125
(1) IN GENERAL.—Funds may be obligated and
expended for assistance restricted by subsection (a),
or other provisions of law that restrict assistance to
countries, under any of the following circumstances:
(A) NATIONAL INTEREST.—The President
determines that the furnishing of such assist-
ance is important to the national interests of
the United States.
(B) ALLEVIATING SUFFERING RESULTING
FROM A DISASTER.—The assistance is for the
alleviation of suffering resulting from a natural
or manmade disaster.
(C) 
DIRECTLY
BENEFITTING
THE
NEEDY.—The assistance will directly benefit the
needy people in the country.
(D) REFUGEES
AND
DISPLACED
PER-
SONS.—The assistance is for the purposes de-
scribed in section 4101(b).
(E) PROMOTING HUMAN RIGHTS AND DE-
MOCRACY.—The assistance will be furnished
through nongovernmental organizations to di-
rectly promote increased respect for internation-
ally recognized human rights and the develop-
ment of democracy.
126
(2) With respect to the restrictions imposed by
subsection (g) or any other provision of law to which
this subsection applies, references in this subsection
to furnishing assistance shall be deemed to include
the taking of other action that, but for this sub-
section, would be restricted by such provision.
(c) REPORT TO CONGRESS.—Assistance restricted by
subsection (a) may not be provided under subsection (b)
until the President has submitted to the Speaker of the
House of Representatives and the chairman of the Com-
mittee on Foreign Relations of the Senate, a report with
respect to such assistance. Any such report shall include
a detailed explanation of the assistance to be provided, in-
cluding the estimated dollar amount of such assistance,
and an explanation of how the assistance meets the cri-
teria specified in subsection (b).
(d) COMMUNIST COUNTRY LIST.—
(1) ESTABLISHMENT.—The President shall des-
ignate those countries that are communist countries
for purposes of subsection (a)(1).
(2) PUBLICATION OF LIST.—The initial list of
countries designated pursuant to this subsection
shall be published in the Federal Register and shall
be provided to the Congress. Thereafter, any addi-
127
tions to or deletions from such list shall be similarly
published and provided.
(3) REMOVAL OF COUNTRIES FROM THE LIST;
EXEMPTIONS.—The President may remove a country
from the communist country list established pursu-
ant to this section, or may exempt a listed country
from the application of subsection (a)(1) or other
provisions of law that reference subsection (a)(1), if
the President promptly reports such removal or ex-
emption to the Speaker of the House of Representa-
tives and the chairman of the Committee on Foreign
Relations of the Senate.
(e) HUMAN RIGHTS VIOLATORS.—
(1) INELIGIBILITY.—Subsection (a)(2) shall
apply to any country the government of which en-
gages in a consistent pattern of gross violations of
internationally recognized human rights.
(2) MATTERS TO BE CONSIDERED.—In imple-
menting subsection (a)(2), consideration shall be
given to the following:
(A) The relevant findings of appropriate
international 
organizations 
and 
nongovern-
mental organizations.
(B) The extent of cooperation by the gov-
ernment 
in 
question 
in 
permitting 
an
128
unimpeded investigation by indigenous non-
governmental organizations, other nongovern-
mental organizations, and international organi-
zations (such as the International Committee of
the Red Cross), of alleged violations of inter-
nationally recognized human rights.
(C) Specific actions that have been taken
by the President or the Congress relating to the
human rights practices of the government in
question.
(D) The likely effect that a determination
of ineligibility under this subsection is expected
to have on the human rights process of the
country concerned.
(f) TERRORIST COUNTRIES.—The President shall
promptly report to the Speaker of the House of Represent-
atives and the chairman of the Committee on Foreign Re-
lations of the Senate the rescission of a determination that
the government of a country repeatedly provides support
for acts of international terrorism.
(g) RELATED RESTRICTIONS ON ASSISTANCE.—
(1) HUMAN
RIGHTS
VIOLATORS.—Subsection
(a)(2) shall be deemed to prohibit, in addition to the
furnishing of assistance under this Act—
129
(A) sales of defense articles, defense serv-
ices, or design and construction services under
the Arms Export Control Act;
(B) licenses under section 38 of the Arms
Export Control Act with respect to the export
of defense articles or defense services to or for
the armed forces, police, intelligence, or other
internal security forces of a foreign country;
and
(C) licenses required under the Export Ad-
ministration Act of 1979 for the export of crime
control and detection instruments and equip-
ment.
(2) TERRORIST COUNTRIES.—Subsection (a)(5)
shall be deemed to prohibit, in addition to the fur-
nishing of assistance under this Act, the furnishing
of assistance under the Agricultural Trade Develop-
ment and Assistance Act of 1954 and the Peace
Corps Act, and the provision of loans, guaranties,
and insurance under the Export-Import Bank Act of
1945.
(3) MAJOR
ILLICIT
DRUG
PRODUCING
AND
MAJOR DRUG TRANSIT COUNTRIES.—
(A) Subsection (a)(6) shall be deemed to
prohibit, in addition to the furnishing of assist-
130
ance under this Act, (i) sales under the Arms
Export Control Act, (ii) the provision of agri-
cultural commodities other than food under the
Agricultural Trade Development and Assistance
Act of 1954, and (iii) loans, guarantees and in-
surance under the Export-Import Bank Act of
1945.
(B) Notwithstanding subparagraph (A),
subsection (a)(6) shall not be deemed to pro-
hibit (i) disaster relief assistance, refugee as-
sistance or assistance that involves the provi-
sion of food (including monetization of food) or
medicine (including any such assistance pro-
vided under title IV), and (ii) assistance for
narcotics education and awareness activities.
(C) With respect to any country for which
assistance is prohibited under section (a)(6),
the President should instruct the United States
Executive Director of the International Bank
for Reconstruction and Development, the Unit-
ed States Executive Director of the Inter-
national Development Association, the United
States Executive Director of the Inter-American
Development Bank, and the United States Ex-
ecutive Director of the Asian Development
131
Bank to vote, during the period in which assist-
ance is prohibited under subsection (a)(6),
against any loan or other utilization of the
funds of their respective institution to or for
any major illicit drug producing country or
major drug-transit country, except as provided
in subsection (b).
SEC. 7202. IMPACT OF FOREIGN ASSISTANCE PROGRAMS
ON JOBS IN THE UNITED STATES.
Funds made available to carry out the provisions of
this Act may not be made available to provide—
(1) any financial incentive to a business enter-
prise located in the United States for the purpose of
inducing that enterprise to relocate outside the Unit-
ed States if such incentive or inducement is likely to
reduce the number of individuals employed in the
United States by that enterprise because that enter-
prise would replace production in the United States
with production outside the United States;
(2) assistance for the purpose of establishing or
developing in a foreign country any export process-
ing 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 car-
ried out within that zone or area, unless the Presi-
132
dent determines and certifies that such assistance is
not likely to cause a loss of jobs within the United
States; or
(3) 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 recipi-
ent country, including in any designated zone or
area in that country.
In recognition that the application of paragraph (3) should
be commensurate with the level of development of the re-
cipient country and sector, that paragraph does not pre-
clude assistance for the informal sector in such country,
for microenterprises and small-scale enterprises, or for
small-holder agriculture.
SEC. 7203. FAMILY PLANNING ACTIVITIES.
Funds made available to carry out this Act may not
be—
(1) used to coerce any person to practice abor-
tions; or
(2) used to pay for the performance of involun-
tary sterilizations or to coerce or provide any finan-
cial incentive to any person to undergo sterilizations.
133
SEC. 7204. COMPETITION WITH UNITED STATES EXPORTS.
In determining whether to provide assistance under
this Act, the President should take into consideration
whether such assistance would be furnished for direct sup-
port for any project or activity that is specifically designed
to increase exports of any agricultural, textile, or apparel
commodity from a developing country where such ex-
ports—
(1) would be in direct competition with United
States exports, and
(2) can reasonably be expected to cause sub-
stantial injury to United States exporters of the
same or substantially similar commodity.
SEC. 7205. NUCLEAR NONPROLIFERATION.
(a) NUCLEAR ENRICHMENT TRANSFERS.—
(1) Except as provided in paragraph (2) of this
subsection, no funds made available to carry out the
provisions of this Act may be used for the purpose
of providing assistance, to any country that, on or
after the date of enactment of the International Se-
curity Assistance Act of 1977, delivers nuclear en-
richment equipment, materials, or technology to a
nonnuclear weapon state or, if a nonnuclear weapon
state, receives such equipment, materials, or tech-
nology from any other country, unless before such
delivery—
134
(A) the supplying country and receiving
country have reached agreement to place all
such equipment, materials, or technology, upon
delivery, under multilateral auspices and man-
agement when available; and
(B) the recipient country has entered into
an agreement with the International Atomic
Energy Agency to place all such equipment,
materials, technology, and all nuclear fuel and
facilities in such country under the safeguards
system of such Agency.
(2)(A) Notwithstanding paragraph (1) of this
subsection, the President may furnish assistance
which would otherwise be prohibited under such sub-
section if he determines and certifies in writing to
the Speaker of the House of Representatives and the
Committee on Foreign Relations of the Senate
that—
(i) the termination of such assistance
would have a serious adverse effect on vital
United States interests; and
(ii) the President has received reliable as-
surances that the country in question will not
acquire or develop nuclear weapons or assist
other nations in doing so.
135
A certification under subparagraph (A) of this para-
graph shall set forth the reasons supporting such de-
termination in each particular case.
(B) A certification under subparagraph (A) of
this paragraph shall take effect on the date on which
the certification is received by the Congress. How-
ever, if, within 30 calendar days after receiving this
certification, the Congress adopts a joint resolution
stating in substance that the Congress disapproves
the furnishing of assistance pursuant to the certifi-
cation, then upon the adoption of that resolution the
certification shall cease to be effective and all deliv-
eries of assistance furnished under the authority of
that certification shall be suspended immediately.
(C) Any joint resolution under this paragraph
shall be considered in the Senate in accordance with
the provisions of section 601(b) of the International
Security Assistance and Arms Export Control Act of
1976.
(D) For the purpose of expediting the consider-
ation and adoption of joint resolutions under this
paragraph, a motion to proceed to the consideration
of any such resolution after it has been reported by
the appropriate committee shall be treated as highly
privileged in the House of Representatives.
136
(b) NUCLEAR REPROCESSING TRANSFERS, ILLEGAL
EXPORTS FOR NUCLEAR EXPLOSIVE DEVICES.—
(1) Except as provided in paragraph (2) of this
subsection, no funds made available to carry out the
provisions of this Act may be used for the purpose
of providing assistance to any country that—
(A) on or after the date of enactment of
the International Security Assistance Act of
1977, delivers nuclear reprocessing equipment,
materials, or technology to a nonnuclear weap-
on state or, if a nonnuclear weapon state, re-
ceives such equipment, materials, or technology
from any other country (except for the transfer
of reprocessing technology associated with the
investigation, under international evaluation
programs in which the United States partici-
pates, or technologies which are alternatives to
pure plutonium reprocessing); or
(B) is a nonnuclear-weapon state which, on
or after the date of enactment of the Inter-
national Security and Development Cooperation
Act of 1985, exports illegally or attempts to ex-
port illegally from the United States any mate-
rial, equipment, or technology which would con-
tribute significantly to the ability of such coun-
137
try to manufacture a nuclear explosive device, if
the President determines that the material,
equipment, or technology was to be used by
such country in the manufacture of a nuclear
explosive device; for purposes of this subpara-
graph, an export or attempted export by a per-
son who is an agent of, or is otherwise acting
on behalf of or in the interests of, a country
shall be considered to be an export or at-
tempted export by that country.
(2) Notwithstanding paragraph (1) of this sub-
section, the President may furnish assistance which
would otherwise be prohibited under that paragraph
if the President determines and certifies in writing
to the Speaker of the House of Representatives and
the Committee on Foreign Relations of the Senate
that the termination of such assistance would be se-
riously prejudicial to the achievement of United
States nonproliferation objectives or otherwise jeop-
ardize the common defense and security. The Presi-
dent shall transmit with such certification a state-
ment setting forth the specific reasons therefor.
(3)(A) A certification under paragraph (2) of
this subsection shall take effect on the day on which
the certification is received by the Congress. How-
138
ever, if, within 30 calendar days after receiving this
certification, the Congress adopts a joint resolution
stating in substance that the Congress disapproves
the furnishing of assistance pursuant to the certifi-
cation, then upon the adoption of that resolution the
certification shall cease to be effective and all deliv-
eries of assistance furnished under the authority of
that certification shall be suspended immediately.
(B) Any joint resolution under this paragraph
shall be considered in the Senate in accordance with
the provisions of section 601(b) of the International
Security Assistance and Arms Export Control Act of
1976.
(C) For the purpose of expediting the consider-
ation and adoption of joint resolutions under this
paragraph, a motion to proceed to the consideration
of any such resolution after it has been reported by
the appropriate committee shall be treated as highly
privileged in the House of Representatives.
(c) TRANSFERS OF NUCLEAR EXPLOSIVE DEVICES
AND NUCLEAR DETONATIONS.—
(1) Except as provided in paragraphs (2) and
(3) of this subsection, no funds made available to
carry out the provisions of this Act may be used for
the purpose of providing assistance to any country
139
that, on or after the date of enactment of the Inter-
national Security Assistance Act of 1977—
(A) transfers a nuclear explosive device to
a nonnuclear-weapon state, or
(B) is a nonnuclear-weapon state and ei-
ther—
(i) receives a nuclear explosive device,
or
(ii) detonates a nuclear explosive de-
vice.
(2)(A) Notwithstanding paragraph (1) of this
subsection, the President may, for a period of not
more than 30 days of continuous session, furnish as-
sistance which would otherwise be prohibited under
paragraph (1) of this subsection if, before furnishing
such assistance, the President transmits to the
Speaker of the House of Representatives, and to the
Chairman of the Committee on Foreign Relations of
the Senate, a certification that the President has de-
termined that an immediate termination of assist-
ance to that country would be detrimental to the na-
tional security of the United States. Not more than
one such certification may be transmitted for a
country with respect to the same detonation, trans-
fer, or receipt of a nuclear explosive device.
140
(B) If the President transmits a certification to
the Congress under subparagraph (A), a joint reso-
lution which would permit the President to exercise
the waiver authority of subparagraph (3) of this
subsection shall, if introduced in either House within
30 days of continuous session after the Congress re-
ceives this certification, be considered in the Senate
and House of Representatives in accordance with
subparagraphs (C) and (D) of this paragraph.
(C) Any joint resolution under this paragraph
shall be considered in the Senate in accordance with
the provisions of section 601(b) of the International
Security Assistance and Arms Export Control Act of
1976.
(D) For the purpose of expediting the consider-
ation and adoption of a joint resolution under this
paragraph, a motion to proceed to the consideration
of such a joint resolution after it has been reported
by the appropriate committee shall be treated as
highly privileged in the House of Representatives.
(E) For purposes of this paragraph, the term
‘‘joint resolution’’ means a joint resolution the mat-
ter after the resolving clause of which is as follows:
‘‘That the Congress having received on a certifi-
cation by the President under section 7205(c)(2) of
141
the Peace, Prosperity, and Democracy Act of 1994
with respect to
, the Congress hereby au-
thorizes the President to exercise the waiver author-
ity contained in section 7205(c)(3) of that Act.’’,
with the date of receipt of the certification inserted
in the first blank and the name of the country in-
serted in the second blank.
(3) Notwithstanding paragraph (1) of this sub-
section, if the Congress enacts a joint resolution
under paragraph (2) of this subsection, the Presi-
dent may furnish assistance which would otherwise
be prohibited under paragraph (1) if he determines
and certifies in writing to the Speaker of the House
of Representatives and the Committee on Foreign
Relations of the Senate that the termination of such
assistance would be seriously prejudicial to the
achievement of United States nonproliferation objec-
tives or otherwise jeopardize the common defense
and security. The President shall transmit with such
certification a statement setting forth the specific
reasons therefor.
(4) For purposes of this subsection, continuity
of session is broken only by an adjournment of Con-
gress sine die and the days on which either House
is not in session because of an adjournment of more
142
than three days to a day certain are excluded in the
computation of any period of time in which Congress
is in continuous session.
(d) As used in this section, the term ‘‘nonnuclear-
weapon state’’ means any country which is not a nuclear-
weapon state, as defined in article IX(3) of the Treaty
on the Non-Proliferation of Nuclear Weapons.
(e) PAKISTAN.—No assistance shall be furnished to
Pakistan and no military equipment or technology shall
be sold or transferred to Pakistan, pursuant to the au-
thorities contained in this Act or any other Act, unless
the President shall have certified in writing to the Speaker
of the House of Representatives and the chairman of the
Committee on Foreign Relations of the Senate, during the
fiscal year in which assistance is to be furnished or mili-
tary equipment or technology is to be sold or transferred,
that Pakistan does not possess a nuclear explosive device
and that the proposed United States assistance program
will reduce significantly the risk that Pakistan will possess
a nuclear explosive device.
SEC. 7206. MAJOR ILLICIT DRUG PRODUCING AND DRUG
TRANSIT COUNTRIES.
(a) 
APPLICATION
OF
RESTRICTION.—Section
7201(a)(6) shall apply to any major illicit drug producing
country and any major drug-transit country if the Presi-
144
(1) accomplished the goals described in an ap-
plicable bilateral narcotics agreement with the Unit-
ed States or a multilateral agreement;
(2) investigated and immobilized major organi-
zations involved in the production, processing, or
distribution of narcotics and dangerous drugs;
(3) achieved significant increases in seizures of
the proceeds and instrumentalities of the illicit drug
trade;
(4) achieved significant reductions, where appli-
cable, in the net production of illicit narcotic crops
through forced or voluntary eradication efforts;
(5) prevented and punished the laundering in
that country of drug-related monies;
(6) prevented and punished public corruption
that facilitates the production, processing, or ship-
ment of narcotic and psychotropic drugs and other
controlled substances, or that discourages the inves-
tigation or prosecution of such acts;
(7) processed expeditiously United States and
other extradition requests related to narcotics traf-
ficking;
(8) increased public awareness of the heinous
nature of drug abuse and reduced the demand and
145
the consumption of narcotics and dangerous drugs;
and
(9) if it is a producer of licit opium, taken steps
to prevent significant diversion of its licit cultivation
and production into the illicit market, to maintain
production of stockpiles at levels no higher than
those consistent with licit market demands, and to
prevent illicit cultivation and production.
SEC. 7207. ASSISTANCE FOR ELECTIONS.
Funds made available for assistance under this Act
that are used to enhance the independence and perform-
ance of electoral processes may not be used for the pur-
pose of influencing the outcome of any election in any
country.
SEC. 7208. ASSIGNMENT OF PERSONNEL.
(a) ASSIGNMENT
OR
DETAIL.—Members of the
Armed Forces may be assigned or detailed to perform
functions related to assistance under this Act adminis-
tered through the Department of Defense, provided they
not perform duties of a combatant nature, including any
duty related to training and advising that may engage
United States Armed Forces personnel in combat activi-
ties, outside the United States in connection with the per-
formance of those defense services.
146
(b) EXCEPTION.—The limitation contained in sub-
section (a) shall not apply if the President determines, and
reports to the Congress, that its application would not be
in the national interest of the United States.
SEC. 7209. ASSISTANCE LIMITED TO ECONOMIC PROGRAMS.
(a) IN GENERAL.—Assistance provided under title I
of this Act may not be used for military or paramilitary
purposes.
(b) EXCEPTION FOR CERTAIN PROGRAMS.—The pro-
visions of subsection (a) of this section shall not apply to
economic assistance involving the participation of military
personnel in training activities, conferences, and other sus-
tainable development programs consistent with the pur-
poses of section 1102.
SEC. 7210. IMPACT OF SUSTAINABLE DEVELOPMENT AS-
SISTANCE ON ENVIRONMENT AND NATURAL
RESOURCES.
(a) STATEMENT OF POLICY.—It is the sense of the
Congress that—
(1) the economic and social well-being and the
security of the United States and other countries are
affected by how the world’s environment and phys-
ical resource base are managed, and that consump-
tion patterns, systems of industrial and agricultural
production, and the manner of use of natural re-
147
sources all have an impact on the opportunities for
long-term development and growth and survival for
all countries;
(2) environmentally responsible management of
physical resources is necessary by both developed
and developing countries to insure their availability
for future generations and to assure that the bur-
dens of improved resource management do not fall
disproportionately on the poor;
(3) sustainable development is development that
meets the needs of the present without compromis-
ing the ability of future generations to meet their
own needs; and
(4) sustainable development programs author-
ized by this Act should assist countries to adopt poli-
cies and to carry out programs that promote eco-
nomic growth that is environmentally sound.
(b) IMPACT ASSESSMENT.—The President, in imple-
menting sustainable development programs under this
Act, should take fully into account the impact of such pro-
grams and projects upon the environment and natural re-
sources of developing countries. Subject to such proce-
dures as the President considers appropriate, the Presi-
dent should—
148
(1) prepare and take fully into account an ini-
tial environmental examination of every program or
project to determine whether it significantly affects
the environment;
(2) prepare and take fully into account an envi-
ronmental impact statement for any program or
project significantly affecting the environment of the
global commons outside the jurisdiction of any coun-
try, the environment of the United States, or other
aspects of the environment which the President may
specify; and
(3) prepare and take fully into account an envi-
ronmental assessment of any proposed program or
project significantly affecting the environment of any
foreign country.
Where appropriate, local technical resources should be
used in preparing environmental impact statements and
environmental assessments pursuant to this section.
(c) EXCEPTIONS.—The President should establish ex-
ceptions for emergency conditions and for cases in which
implementation of procedures described in subsection (b)
would be seriously detrimental to the foreign policy inter-
ests of the United States.
149
CHAPTER 3—REPORTS AND NOTIFICATIONS TO
CONGRESS
SEC. 7301. CONGRESSIONAL PRESENTATION DOCUMENTS.
(a) REQUIREMENT FOR SUBMISSION.—The President
shall prepare, and submit to the Congress in a timely man-
ner, annual congressional documents for the programs au-
thorized under titles I, II, and III of this Act.
(b) MATERIALS TO BE INCLUDED.—The documents
submitted pursuant to subsection (a) shall include—
(1) the rationale for the allocation of assistance
or contributions to each country, regional, or cen-
trally funded program, or activities under section
3102;
(2) a description of how each program or activ-
ity under section 3102 supports the objectives of the
title for which such program is being justified in-
cluding, for programs administered by the United
States Agency for International Development, to the
extent determined at the time of submission of these
documents, the strategic objectives for such pro-
grams; and
(3) a description of planned country, regional,
or centrally funded programs or activities under sec-
tion 3102 for the coming fiscal year.
150
SEC. 7302. HUMAN RIGHTS POLICY AND REPORTS.
(a) PROMOTION OF HUMAN RIGHTS.—It is the sense
of the Congress that the United States should, in accord-
ance with its international obligations as set forth in the
charter of the United Nations and in keeping with the con-
stitutional heritage and traditions of the United States,
promote and encourage increased respect for human rights
and fundamental freedoms throughout the world without
distinction as to race, sex, language, or religion.
(b) CONDUCT OF ASSISTANCE.—In furtherance of
subsection (a), the President should formulate and con-
duct United States assistance in a manner which will—
(1) promote and advance human rights;
(2) strengthen a relationship between civilian
and military sectors appropriate to a democratic sys-
tem of government; and
(3) avoid identification of the United States,
through these programs, with governments which
deny to their people internationally recognized
human rights and fundamental freedoms in violation
of international law or in contravention of the policy
of the United States as expressed in this section or
otherwise.
(c) MATTERS TO BE CONSIDERED.—In carrying out
subsection (b) and in preparing the annual reports re-
151
quired by subsection (d), consideration should be given to
the following:
(1) The relevant findings of appropriate inter-
national organizations and nongovernmental organi-
zations.
(2) The extent of cooperation by the govern-
ment in question in permitting an unimpeded inves-
tigation by indigenous nongovernmental organiza-
tions, other nongovernmental organizations, and
international organizations (such as the Inter-
national Committee of the Red Cross), of alleged
violations 
of 
internationally 
recognized 
human
rights.
(d) ANNUAL HUMAN RIGHTS REPORT.—In further-
ance of subsections (a) and (b), the President shall trans-
mit to the Congress, not later than January 31 each year,
a full and complete report with respect to practices regard-
ing the status of internationally recognized human rights,
regarding whether the country engages in a consistent pat-
tern of gross violations of internationally recognized
human rights within the meaning of section 8551(a)(5).
The report shall be submitted with respect to every foreign
country that is a member of the United Nations. Wherever
appropriate, such reports shall include information on
practices regarding coercion in population control, includ-
152
ing coerced abortion and involuntary sterilization. The re-
port shall also include the steps taken to alter United
States programs under this Act in any country because
of human rights considerations.
(e) INFORMATION TO BE PROVIDED.—Each annual
report under subsection (d), shall include—
(1) information about observance of and respect
for human rights and fundamental freedom in the
country in question, and
(2) a detailed description of practices by the re-
cipient government with respect to human rights and
fundamental freedom, including where appropriate
information provided by organizations, including
nongovernmental organizations.
SEC. 7303. INTERNATIONAL NARCOTICS CONTROL REPORT.
Not later than March 1 of each year, the President
shall transmit to the Speaker of the House of Representa-
tives, and to the Committee on Foreign Relations of the
Senate, a comprehensive report on the state of inter-
national narcotics production and trafficking, and on
United States efforts to prevent the illicit cultivation and
manufacture of and trafficking in narcotics and psycho-
tropic drugs and other controlled substances.
153
SEC. 7304. ANNUAL ALLOCATION REPORT.
(a) REPORT ON ALLOCATIONS OF ASSISTANCE.—Not
later than 30 days after the enactment of any law appro-
priating funds to carry out any provision of this Act, the
President shall notify the Congress of—
(1) each foreign country and international orga-
nization to which the United States Government in-
tends to provide any portion of the funds under such
law; and
(2) the amount of funds under that law, by cat-
egory of assistance, that the United States Govern-
ment intends to provide to each such country or or-
ganization.
(b) EXCEPTIONS.—Subsection (a) does not apply
with respect to—
(1) funds appropriated under section 8509 or
section 8510 (relating to operating expenses of the
United States Agency for International Development
and the Inspector General of that agency, respec-
tively); or
(2) any law making continuing appropriations.
(c) USE OF SPECIAL AUTHORITY.—The authority of
section 7201 of this Act may not be used to waive the
provisions of this section.
154
SEC. 7305. NOTIFICATION OF PROGRAM CHANGES.
(a) NOTIFICATION OF PROGRAM CHANGES.—Unless
the Committee on Foreign Affairs and the Committee on
Appropriations of the House of Representatives and the
Committee on Foreign Relations and the Committee on
Appropriations of the Senate are notified at least fifteen
days in advance, funds appropriated for a fiscal year to
carry out this Act may not be obligated for any assistance
or contributions under any title of this Act—
(1) for programs administered by the United
States Agency for International Development under
title I—
(A) for a country, regional, or centrally
funded program for which assistance under that
title was not justified in congressional presen-
tation documents for that fiscal year;
(B) for a country, regional, or centrally
funded program in excess of the amount justi-
fied under that title in congressional presen-
tation documents or allocated pursuant to sec-
tion 7304 for that fiscal year;
(C) for a project or activity not previously
justified to such Committees or, in the case of
programs that are administered through strate-
gic objectives, for a new strategic objective for
155
a country, regional or centrally funded pro-
gram; or
(D) for a nonproject assistance activity, in-
cluding commodity import program assistance;
(2) for assistance administered through the De-
partment of Defense under this Act—
(A) for a country, international organiza-
tion or arrangement, for which assistance under
that title was not justified in congressional
presentation documents for that fiscal year;
(B) in excess of the amount allocated pur-
suant to section 7304 for that country, organi-
zation or arrangement, under that title for that
fiscal year; or
(C) for the provision of major defense
equipment, other than conventional ammuni-
tion, or other major defense items defined to be
aircraft, ships, missiles, or combat vehicles not
previously justified to Congress or twenty per-
cent in excess of the quantities justified to Con-
gress.
(3) for other programs under this Act—
(A) for a country, international organiza-
tion or arrangement, or operation for which as-
sistance or contribution under that title was not
156
justified in congressional presentation docu-
ments for that fiscal year;
(B) in excess of the amount allocated pur-
suant to section 7304 for that country or orga-
nization or arrangement under that title for
that fiscal year; or
(C) for a project, activity, or operation not
previously justified, or in excess of the amount
previously justified, to such Committees.
(b) 
APPROPRIATIONS
SUBJECT
TO
REQUIRE-
MENTS.—Subsection (a) applies with respect to all funds
appropriated for assistance and contributions under this
Act other than—
(1) chapters 1 and 2 of title V (relating to the
Overseas Private Investment Corporation and the
Trade and Development Agency, respectively),
(2) section 1104 (relating to the micro and
small enterprise development, housing and urban,
and other guaranty programs),
(3) programs for refugee assistance and for dis-
aster relief and rehabilitation, including assistance
programs under title IV of this Act.
(c) EMERGENCY EXCEPTIONS.—
(1) WAIVER.—Subsection (a), or any similar re-
quirement to provide advance notification to the
157
Congress or Congressional committees, may be
waived if the President determines that doing so is
necessitated by emergency circumstances.
(2) EXERCISE OF AUTHORITY.—In the case of
any waiver under paragraph (1) notification to the
Congress or the appropriate Congressional commit-
tees shall be provided as early as practicable, but in
no event later than three days after taking the ac-
tion to which such notification requirement was ap-
plicable. Any notification under this paragraph shall
contain an explanation of the circumstances neces-
sitating the use of the authority of this subsection.
SEC. 7306. EVALUATION AND MONITORING OF PROGRAM
PERFORMANCE.
(a) NEED FOR EVALUATION.—In order to effectively
and responsibly manage the resources made available for
sustainable development purposes, the President must
have a capacity to evaluate objectively the extent of
progress in achieving development results and to derive
lessons from that development experience.
(b) ACTIONS TO BE TAKEN.—In furtherance of sub-
section (a), the President shall establish a program per-
formance, monitoring, and evaluation capacity within the
United States Agency for International Development that
will do the following:
158
(1) Enhance, through training and other
means, the use of program performance, monitoring,
and evaluation as a management tool, by both the
agency and its counterparts in countries receiving
assistance, in the planning, designing, and imple-
mentation of foreign assistance projects and pro-
grams.
(2) Develop a program performance information
system to afford agency managers at all levels, and
counterparts in countries receiving assistance, a
means for monitoring and assessing achievement of
impact and interim performance of the agency’s
major programs in support of the strategic manage-
ment of economic assistance.
(3) Prepare and disseminate objective and peri-
odic reports on the progress of the agency in meet-
ing development objectives and on lessons learned
from its development programs and assure the
widest possible distribution of findings, particularly
to beneficiaries of projects and programs.
(4) Establish a system which ensures the incor-
poration of evaluation findings in decisions of the
agency about program direction and resource alloca-
tion.
159
(c) The President shall prepare an annual report to
the Congress to include the following:
(1) An assessment of progress toward the
achievement of sustainable development objectives,
based on the findings of program performance mon-
itoring and evaluation studies conducted by the
United States Agency for International Development
and on such other empirical analyses as may be ap-
propriate.
(2) An analysis, on a country-by-country basis,
of the results of sustainable development in each
country receiving assistance under title I from such
Agency, including a discussion of the United States
interests and objectives that were served by such as-
sistance.
TITLE VIII—GENERAL PROVISIONS
CHAPTER 1—EXERCISE AND COORDINATION OF
FUNCTIONS
SEC. 8101. DELEGATIONS BY THE PRESIDENT.
(a) IN GENERAL.—The President may exercise any
functions conferred upon the President by this Act
through such agency or officer of the United States Gov-
ernment as the President shall direct.
160
(b) AUTHORITY TO ISSUE REGULATIONS AND DELE-
GATE.—The head of any agency or such officer exercising
functions under this Act—
(1) may from time to time promulgate such
rules and regulations as may be necessary to carry
out such functions; and
(2) may delegate authority, including to any
other agency upon obtaining the concurrence of the
head of that agency, to perform any such functions,
including, if he or she shall so specify, the authority
successively to redelegate any of such functions.
SEC. 8102. ROLE OF THE SECRETARY OF STATE.
(a) CONTINUOUS SUPERVISION.—Under the direction
of the President, the Secretary of State shall be respon-
sible for the continuous supervision and general direction
of assistance under this Act, including determining wheth-
er such assistance shall involve the provision of defense
articles and defense services, to the end that all such as-
sistance is effectively integrated both at home and abroad
and the foreign policy of the United States is best served
thereby.
(b) POWERS AND FUNCTIONS.—Nothing in this Act
shall be construed to infringe upon the powers and func-
tions of the Secretary of State.
161
SEC. 8103. THE SECRETARY OF DEFENSE.
(a) With respect to assistance under this Act admin-
istered through the Department of Defense, the Secretary
of Defense shall have primary responsibility for—
(1) the determination of military end-item re-
quirements;
(2) the procurement of military equipment in a
manner which permits its integration with service
programs;
(3) the monitoring of end-item use by the recip-
ient countries;
(4) the supervision of the training of foreign
military and related civilian personnel;
(5) the movement and delivery of military end-
items; and
(6) within the Department of Defense the per-
formance of any other functions with respect to the
furnishing of assistance administered through the
Department of Defense under this Act.
(b) The establishment of priorities in the procure-
ment, delivery, and the allocation of military equipment
shall be determined by the Secretary of Defense.
SEC. 8104. UNITED STATES AGENCY FOR INTERNATIONAL
DEVELOPMENT.
The United States Agency for International Develop-
ment shall be an agency of the United States under the
162
foreign policy guidance and subject to the supervision and
direction of the Secretary of State.
SEC. 8105. THE DIRECTOR OF THE ARMS CONTROL AND
DISARMAMENT AGENCY.
Decisions to furnish assistance administered through
the Department of Defense under subchapter A, chapter
1, title II, and chapter 3, title III shall be made in coordi-
nation with the Director of the United States Arms Con-
trol and Disarmament Agency and shall take into account
the Director’s opinion as to whether such assistance will—
(1) contribute to an arms race;
(2) increase the possibility of outbreak or esca-
lation of conflict; or
(3) prejudice the development of bilateral or
multilateral arms control arrangements.
SEC. 8106. AUTHORITY TO ESTABLISH OFFICES ABROAD.
The President may maintain offices or staffs outside
the United States in such countries and for such periods
of time as may be necessary to carry out this Act.
SEC. 8107. PRESIDENTIAL FINDINGS AND DETERMINA-
TIONS.
(a) FINDINGS AND DETERMINATIONS TO BE WRIT-
TEN AND SIGNED.—In any case in which the President
is required to make a report by any provision of this Act,
the Arms Export Control Act, or any annual or periodic
163
foreign assistance authorizing or appropriations legisla-
tion, to the Congress or to any committee or officer of
either House of Congress concerning any finding or deter-
mination, that finding or determination shall be reduced
to writing and signed by the President.
(b) RESTRICTION.—No action shall be taken pursu-
ant to any such finding or determination prior to the date
on which that finding or determination is reduced to writ-
ing and signed by the President.
(c) PUBLICATION
IN FEDERAL REGISTER.—Each
such finding or determination shall be published in the
Federal Register as soon as practicable after it has been
reduced to writing and signed by the President. In any
case in which the President concludes that such publica-
tion would be harmful to the national security of the Unit-
ed States, only a statement that a determination or find-
ing has been made by the President, including the name
and section of the Act under which it was made, shall be
published.
CHAPTER 2—ADMINISTRATIVE AUTHORITIES
Subchapter A—General Authorities
SEC. 8201. ALLOCATION OF FUNDS AND REIMBURSEMENT
AMONG AGENCIES.
(a) ALLOCATIONS OR TRANSFERS TO AGENCIES.—
The President, or with respect to funds appropriated to
164
any agency, the head of such agency, as the case may be,
may allocate or transfer to any agency of the United
States Government any funds available for providing as-
sistance under this or any other Act, including any ad-
vance to the United States Government by any country
or international organization for the procurement of arti-
cles or services. Such funds shall be available for obliga-
tion and expenditure for the purposes for which author-
ized, in accordance with the authority pursuant to which
they were made available or the authority governing the
activities of the agency to which such funds are allocated
or transferred.
(b) PROCUREMENT FROM OTHER AGENCIES.—
(1) AUTHORITY.—Any officer of the United
States Government carrying out functions under this
Act may utilize the services and the facilities of, or
procure articles from, any agency of the United
States Government as the President shall direct, or
with the consent of the head of such agency.
(2) SEPARATE ACCOUNT.—Funds allocated pur-
suant to this subsection to any such agency may be
established in separate appropriation accounts on
the books of the Treasury.
(c) REIMBURSEMENT TO AGENCIES.—
166
tions, funds, or accounts of such agency, to be avail-
able for the same purposes and for the same time
period as the appropriation, fund or account to
which transferred, or any such credited funds shall
remain available for such purposes until expended.
(4) LIMITATION ON DEPARTMENT OF DEFENSE
DRAWDOWNS.—During any fiscal year, the aggre-
gate value of articles and services of which the
President may direct the drawdown from the inven-
tory and resources of the Department of Defense
may not exceed—
(A) $50,000,000 under section 3103,
(B) $15,000,000 under section 3204,
(C) $75,000,000 under section 7111(b),
and
(D) $5,000,000 under section 7115(b).
(d) REIMBURSEMENT TO THE DEPARTMENT OF DE-
FENSE.—Reimbursement or payment to the Department
of Defense under subsection (c) shall exclude salaries of
members of the Armed Forces (other than the Coast
Guard) and unfunded estimated costs of civilian retire-
ment and other benefits, unless otherwise required by law.
(e) ESTABLISHMENT OF ACCOUNTS.—
(1) AUTHORITY TO ESTABLISH; USES.—In fur-
nishing assistance under this or any other Act, ac-
167
counts may be established on the books of any agen-
cy of the United States Government or, on terms
and conditions approved by the Secretary of the
Treasury, in banking institutions in the United
States—
(A) against which letters of commitment
may be issued which shall constitute recordable
obligations of the United States Government,
and moneys due or to become due under such
letters of commitment shall be assignable under
the last sentence of section 3727(b) and section
3727(c) of title 31, United States Code, and the
second and third paragraphs of section 3737 of
the Revised Statutes of the United States (41
U.S.C. 15); and
(B) from which disbursements may be
made to, or withdrawals may be made by, recip-
ient countries or agencies, organizations, or per-
sons upon presentation of contracts, invoices, or
other appropriate documentation.
(2) ACCOUNTING
FOR
EXPENDITURES.—Ex-
penditure of funds which have been made available
through accounts established under paragraph (1)
shall be accounted for on standard documentation
168
required for expenditure of funds of the United
States Government.
(f) CHARGING TO APPROPRIATIONS.—
(1) INITIAL CHARGING.—Any appropriation or
account available to carry out provisions of this Act
may initially be charged in any fiscal year, within
the limit of available funds, to finance expenses for
which funds are available in other appropriations or
accounts under that title.
(2) FINAL CHARGING.—As of the end of such
fiscal year, such expenses shall be finally charged to
applicable appropriations or accounts with proper
credit to the appropriations or accounts initially uti-
lized for financing purposes, except that such final
charges shall not be required in the case of expenses
(other than those provided under sections 8509 and
8510) incurred in furnishing assistance where it is
determined that the accounting costs of identifying
the applicable appropriation or account to which
such expenses should be charged would be dispropor-
tionate to the advantage to be gained.
(3) APPLICATION TO PROGRAMS ADMINISTERED
THROUGH DOD.—This subsection shall not apply to
assistance administered through the Department of
Defense under this Act.
169
(g) RESPONSIBILITY OF AGENCIES.—The agency re-
ceiving the funds pursuant to the authority of subsections
(a) or (b) shall be the agency responsible for the manage-
ment and use of such funds.
SEC. 8202. GENERAL AUTHORITIES.
(a) TERMS OF ASSISTANCE.—Except as otherwise
specifically prohibited in this Act, assistance under this
Act may be furnished on a grant, loan, or guaranty basis,
or on such terms, including cash, credit, or other terms
of repayment (including repayment in foreign currencies
or by transfer to the United States Government of arti-
cles), or as a contribution to an international organization
or arrangement, as may be determined to be best suited
to the achievement of the purposes of this Act.
(b) TERMS AND CONDITIONS.—The President may
furnish assistance under this Act on such terms and condi-
tions (consistent with other provisions of law) as the Presi-
dent deems appropriate, and, consistent with the provi-
sions of this Act, may charge such fees for guarantees and
loans under this Act as the President deems appropriate.
Credit assistance shall be consistent with the provisions
of the Federal Credit Reform Act of 1990. In the case
of contributions or other assistance provided for an inter-
national organization or arrangement under this or any
other Act, such organization or arrangement may utilize
170
its own procurement, administrative, accounting, and
audit rules and procedures.
(c) ADVANCES, CONTRACTS, ETC.—In furtherance of
the purposes and subject to the limitations of this Act,
the President in providing assistance under this or any
other Act may make loans (in conformity with the provi-
sions of the Federal Credit Reform Act of 1990), ad-
vances, and grants to, make and perform agreements and
contracts with, or enter into other transactions with, any
person, corporation, or other body of persons, any govern-
ment or government agency, and any international organi-
zation or arrangement.
(d) GIFTS.—The President may accept and use in
furtherance of the purposes of this Act, money, funds,
property, and services of any kind made available by gift,
devise, bequest, grant, or otherwise for such purpose.
(e) INSURANCE.—
(1) FOREIGN
PARTICIPANTS.—Any agency of
the United States Government is authorized to pay
the cost of health and accident insurance for foreign
participants in any program of furnishing assistance
administered by such agency while such participants
are absent from their homes for the purpose of par-
ticipation in such program.
171
(2) FOREIGN EMPLOYEES.—Any agency of the
United States Government is authorized to pay the
cost of health and accident insurance for foreign em-
ployees of that agency while those employees are ab-
sent from their places of employment abroad for
purposes of training or other official duties.
(f) ADMISSION TO UNITED STATES.—Alien partici-
pants in any program of furnishing assistance under this
Act may be admitted to the United States if otherwise
qualified as nonimmigrants under section 101(a)(15) of
the 
Immigration 
and 
Nationality 
Act 
(8 
U.S.C.
1101(a)(15)), for such time and under such conditions as
may be prescribed by regulations promulgated by the Sec-
retary of State and the Attorney General.
(g) ASSISTANCE AUTHORITIES.—In furnishing and
administering assistance under this Act, the President—
(1) may issue letters of credit and letters of
commitment;
(2) may collect, compromise, reschedule or oth-
erwise settle any obligations assigned to, or held by,
and any legal or equitable rights accruing to, the
President and may (as the President deems appro-
priate) refer any such obligations or rights to the
Attorney General for suit or collection;
(3) may—