H. J. Res. 2—200
(d) Not later than October 1, 2003, the Secretary of State
shall submit a report to the Committees on Appropriations
describing the following:
(1) The defense articles, defense services, and financial
assistance provided by the United States to the countries of
Central Asia during the 6-month period ending 30 days prior
to submission of each such report.
(2) The use during such period of defense articles, defense
services, and financial assistance provided by the United States
by units of the armed forces, border guards, or other security
forces of such countries.
(e) For purposes of this section, the term ‘‘countries of Central
Asia’’ means Uzbekistan, Kazakhstan, Kyrgyz Republic, Tajikistan,
and Turkmenistan.
COMMERCIAL LEASING OF DEFENSE ARTICLES
SEC. 575. Notwithstanding any other provision of law, and
subject to the regular notification procedures of the Committees
on Appropriations, the authority of section 23(a) of the Arms Export
Control Act may be used to provide financing to Israel, Egypt
and NATO and major non-NATO allies for the procurement by
leasing (including leasing with an option to purchase) of defense
articles from United States commercial suppliers, not including
Major Defense Equipment (other than helicopters and other types
of aircraft having possible civilian application), if the President
determines that there are compelling foreign policy or national
security reasons for those defense articles being provided by
commercial lease rather than by government-to-government sale
under such Act.
WAR CRIMINALS
SEC. 576. (a)(1) None of the funds appropriated or otherwise
made available pursuant to this Act may be made available for
assistance, and the Secretary of the Treasury shall instruct the
United States executive directors to the international financial
institutions to vote against any new project involving the extension
by such institutions of any financial or technical assistance, to
any country, entity, or municipality whose competent authorities
have failed, as determined by the Secretary of State, to take nec-
essary and significant steps to implement its international legal
obligations to apprehend and transfer to the International Criminal
Tribunal for the former Yugoslavia (the ‘‘Tribunal’’) all persons
in their territory who have been indicted by the Tribunal and
to otherwise cooperate with the Tribunal.
(2) The provisions of this subsection shall not apply to humani-
tarian assistance or assistance for democratization.
(b) The provisions of subsection (a) shall apply unless the
Secretary of State determines and reports to the appropriate
congressional committees that the competent authorities of such
country, entity, or municipality are—
(1) cooperating with the Tribunal, including access for
investigators to archives and witnesses, the provision of docu-
ments, and the surrender and transfer of indictees or assistance
in their apprehension; and
(2) are acting consistently with the Dayton Accords.
H. J. Res. 2—201
(c) Not less than 10 days before any vote in an international
financial institution regarding the extension of any new project
involving financial or technical assistance or grants to any country
or entity described in subsection (a), the Secretary of the Treasury,
in consultation with the Secretary of State, shall provide to the
Committees on Appropriations a written justification for the pro-
posed assistance, including an explanation of the United States
position regarding any such vote, as well as a description of the
location of the proposed assistance by municipality, its purpose,
and its intended beneficiaries.
(d) In carrying out this section, the Secretary of State, the
Administrator of the United States Agency for International
Development, and the Secretary of the Treasury shall consult with
representatives of human rights organizations and all government
agencies with relevant information to help prevent indicted war
criminals from benefiting from any financial or technical assistance
or grants provided to any country or entity described in subsection
(a).
(e) The Secretary of State may waive the application of sub-
section (a) with respect to projects within a country, entity, or
municipality upon a written determination to the Committees on
Appropriations 
that 
such 
assistance 
directly 
supports 
the
implementation of the Dayton Accords.
(f) DEFINITIONS.—As used in this section—
(1) COUNTRY.—The term ‘‘country’’ means Bosnia and
Herzegovina, Croatia and Serbia.
(2) ENTITY.—The term ‘‘entity’’ refers to the Federation
of Bosnia and Herzegovina, Kosovo, Montenegro and the
Republika Srpska.
(3) MUNICIPALITY.—The term ‘‘municipality’’ means a city,
town or other subdivision within a country or entity as defined
herein.
(4) DAYTON ACCORDS.—The term ‘‘Dayton Accords’’ means
the General Framework Agreement for Peace in Bosnia and
Herzegovina, together with annexes relating thereto, done at
Dayton, November 10 through 16, 1995.
USER FEES
SEC. 577. The Secretary of the Treasury shall instruct the
United States Executive Director at each international financial
institution (as defined in section 1701(c)(2) of the International
Financial Institutions Act) and the International Monetary Fund
to oppose any loan, grant, strategy or policy of these institutions
that would require user fees or service charges on poor people
for primary education or primary healthcare, including prevention
and treatment efforts for HIV/AIDS, malaria, tuberculosis, and
infant, child, and maternal well-being, in connection with the
institutions’ financing programs.
FUNDING FOR SERBIA
SEC. 578. (a) Funds appropriated by this Act may be made
available for assistance for Serbia after June 15, 2003, if the Presi-
dent has made the determination and certification contained in
subsection (c).
(b) After June 15, 2003, the Secretary of the Treasury should
instruct the United States executive directors to the international
H. J. Res. 2—202
financial institutions to support loans and assistance to the Govern-
ment of the Federal Republic of Yugoslavia (or a government of
a successor state) subject to the conditions in subsection (c): Pro-
vided, That section 576 of the Foreign Operations, Export Financing,
and Related Programs Appropriations Act, 1997, as amended, shall
not apply to the provision of loans and assistance to the Federal
Republic of Yugoslavia (or a successor state) through international
financial institutions.
(c) The determination and certification referred to in subsection
(a) is a determination by the President and a certification to the
Committees on Appropriations that the Government of the Federal
Republic of Yugoslavia (or a government of a successor state) is—
(1) cooperating with the International Criminal Tribunal
for the former Yugoslavia including access for investigators,
the provision of documents, and the surrender and transfer
of indictees or assistance in their apprehension;
(2) taking steps that are consistent with the Dayton Accords
to end Serbian financial, political, security and other support
which has served to maintain separate Republika Srpska
institutions; and
(3) taking steps to implement policies which reflect a
respect for minority rights and the rule of law, including the
release of political prisoners from Serbian jails and prisons.
(d) This section shall not apply to Montenegro, Kosovo, humani-
tarian assistance or assistance to promote democracy in municipali-
ties.
PROHIBITION ON TAXATION OF UNITED STATES ASSISTANCE
SEC. 579. (a) PROHIBITION ON TAXATION.—None of the funds
appropriated by this Act may be made available to provide assist-
ance for a foreign country under a new bilateral agreement gov-
erning the terms and conditions under which such assistance is
to be provided unless such agreement includes a provision stating
that assistance provided by the United States shall be exempt
from taxation, or reimbursed, by the foreign government, and the
Secretary of State shall expeditiously seek to negotiate amendments
to existing bilateral agreements, as necessary, to conform with
this requirement.
(b) REIMBURSEMENT OF FOREIGN TAXES.—An amount equiva-
lent to 200 percent of the total taxes assessed during fiscal year
2003 by a foreign government or entity against commodities
financed under United States assistance programs for which funds
are appropriated by this Act, either directly or through grantees,
contractors and subcontractors, as of the date of the enactment
of this Act, shall be withheld from obligation from funds appro-
priated for assistance for fiscal year 2004 and allocated for the
central government of such country and for the West Bank and
Gaza Program to the extent that the Secretary of State certifies
and reports in writing to the Committees on Appropriations that
such taxes have not been reimbursed to the Government of the
United States.
(c) DE MINIMIS EXCEPTION.—Foreign taxes of a de minimis
nature shall not be subject to the provisions of subsection (b).
(d) REFUND
TO
THE
TREASURY
AND
REPROGRAMMING
OF
FUNDS.—Of the funds withheld from obligation for each country
or entity pursuant to subsection (b), one-half may become available
for reprogramming for other purposes (pursuant to section 515
H. J. Res. 2—203
of this Act and consistent with the purposes for which such funds
were originally appropriated) and one-half shall be deposited in
the General Fund of the Treasury on, or within 5 days after,
September 1, 2004, pursuant to the certification required under
subsection (b).
(e) IMPLEMENTATION.—The Secretary of State shall issue rules,
regulations, or policy guidance, as appropriate, to implement the
prohibition against the taxation of assistance contained in this
section.
(f) REPORT.—Not later than February 1, 2004, the Comptroller
General of the United States shall submit a report to the Commit-
tees on Appropriations which assesses the following—
(1) the extent to which existing bilateral agreements pro-
vide exemption from taxation;
(2) the status of negotiations of new framework bilateral
agreements or modifications of existing framework bilateral
agreements;
(3) the reasons why new framework bilateral agreements
or modifications of existing bilateral agreements, entered into
within the previous 5 years, have (as appropriate) failed to
include exemption from taxation; and
(4) the administrative procedures that foreign governments
use to ensure that United States assistance commodities are
not taxed or, if they are, that such taxes are reimbursed to
the United States Government, and the adequacy of those
procedures.
(g) DEFINITIONS.—As used in this section—
(1) the terms ‘‘taxes’’ and ‘‘taxation’’ refer to value added
taxes and customs duties imposed on commodities financed
with United States assistance for programs for which funds
are appropriated by this Act; and
(2) the term ‘‘bilateral agreement’’ refers to a framework
bilateral agreement between the Government of the United
States and the government of the country receiving assistance
that describes the privileges and immunities applicable to
United States foreign assistance for such country generally,
or an individual agreement between the Government of the
United States and such government that describes, among other
things, the treatment for tax purposes that will be accorded
the United States assistance provided under that agreement.
GAO REPORT
SEC. 580. Not later than November 1, 2003, the Comptroller
General of the United States shall provide a report to the Commit-
tees on Appropriations on the extent to which the Department
of State is complying with section 301(c) of the Foreign Assistance
Act of 1961, and on the implementation of procedures that have
been established to meet the standards of the Department of State
regarding compliance with the requirements of section 301(c).
TRAINING PROGRAM EVALUATION
SEC. 581. Not later than June 30, 2003, the Secretary of State,
in consultation with the Secretary of Defense, shall submit a report
to the Committees on Appropriations describing in detail the steps
that the Departments of State and Defense are making to improve
performance evaluation procedures for the International Military