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may place in interest bearing accounts local currencies 
which accrue to that organization as a result of economic 
assistance provided under title II of this Act and any in-
terest earned on such investment shall be used for the pur-
pose for which the assistance was provided to that organi-
zation. 
SEPARATE ACCOUNTS 
SEC. 529. (a) SEPARATE ACCOUNTS
FOR LOCAL 
CURRENCIES.—(1) If assistance is furnished to the gov-
ernment of a foreign country under chapters 1 and 10 of 
part I or chapter 4 of part II of the Foreign Assistance 
Act of 1961 under agreements which result in the genera-
tion of local currencies of that country, the Administrator 
of the United States Agency for International Develop-
ment shall—
(A) require that local currencies be deposited in 
a separate account established by that government; 
(B) enter into an agreement with that govern-
ment which sets forth—
(i) the amount of the local currencies to be 
generated; and 
(ii) the terms and conditions under which 
the currencies so deposited may be utilized, con-
sistent with this section; and 
(C) establish by agreement with that govern-
ment the responsibilities of the United States Agen-
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cy for International Development and that govern-
ment to monitor and account for deposits into and 
disbursements from the separate account. 
(2) USES
OF LOCAL CURRENCIES.—As may be 
agreed upon with the foreign government, local currencies 
deposited in a separate account pursuant to subsection 
(a), or an equivalent amount of local currencies, shall be 
used only—
(A) to carry out chapter 1 or 10 of part I or 
chapter 4 of part II (as the case may be), for such 
purposes as—
(i) project and sector assistance activities; 
or 
(ii) debt and deficit financing; or 
(B) for the administrative requirements of the 
United States Government. 
(3) PROGRAMMING ACCOUNTABILITY.—The United 
States Agency for International Development shall take all 
necessary steps to ensure that the equivalent of the local 
currencies disbursed pursuant to subsection (a)(2)(A) 
from the separate account established pursuant to sub-
section (a)(1) are used for the purposes agreed upon pur-
suant to subsection (a)(2). 
(4) TERMINATION
OF ASSISTANCE PROGRAMS.—
Upon termination of assistance to a country under chapter
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1 or 10 of part I or chapter 4 of part II (as the case 
may be), any unencumbered balances of funds which re-
main in a separate account established pursuant to sub-
section (a) shall be disposed of for such purposes as may 
be agreed to by the government of that country and the 
United States Government. 
(5) REPORTING REQUIREMENT.—The Administrator 
of the United States Agency for International Develop-
ment shall report on an annual basis as part of the jus-
tification documents submitted to the Committees on Ap-
propriations on the use of local currencies for the adminis-
trative requirements of the United States Government as 
authorized in subsection (a)(2)(B), and such report shall 
include the amount of local currency (and United States 
dollar equivalent) used and/or to be used for such purpose 
in each applicable country. 
(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—
(1) If assistance is made available to the government of 
a foreign country, under chapter 1 or 10 of part I or chap-
ter 4 of part II of the Foreign Assistance Act of 1961, 
as cash transfer assistance or as nonproject sector assist-
ance, that country shall be required to maintain such 
funds in a separate account and not commingle them with 
any other funds.
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(2) APPLICABILITY
OF
OTHER
PROVISIONS
OF 
LAW.—Such funds may be obligated and expended not-
withstanding provisions of law which are inconsistent with 
the nature of this assistance including provisions which 
are referenced in the Joint Explanatory Statement of the 
Committee of Conference accompanying House Joint Res-
olution 648 (House Report No. 98–1159). 
(3) NOTIFICATION.—At least 15 days prior to obli-
gating any such cash transfer or nonproject sector assist-
ance, the President shall submit a notification through the 
regular notification procedures of the Committees on Ap-
propriations, which shall include a detailed description of 
how the funds proposed to be made available will be used, 
with a discussion of the United States interests that will 
be served by the assistance (including, as appropriate, a 
description of the economic policy reforms that will be pro-
moted by such assistance). 
(4) EXEMPTION.—Nonproject sector assistance funds 
may be exempt from the requirements of subsection (b)(1) 
only through the notification procedures of the Commit-
tees on Appropriations. 
ENTERPRISE FUND RESTRICTIONS 
SEC. 530. Prior to the distribution of any assets re-
sulting from any liquidation, dissolution, or winding up 
of an Enterprise Fund, in whole or in part, the President 
shall submit to the Committees on Appropriations, in ac-
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cordance with the regular notification procedures of the 
Committees on Appropriations, a plan for the distribution 
of the assets of the Enterprise Fund. 
BURMA 
SEC. 531. Of the funds appropriated under the head-
ing ‘‘Economic Support Fund’’, not less than $6,000,000 
should be made available to support democracy activities 
along the Burma-Thailand border, for activities of Bur-
mese student groups and other organizations located out-
side Burma, and for the purpose of supporting the provi-
sion of humanitarian assistance to displaced Burmese 
along Burma’s borders: Provided, That of this amount 
$500,000 should be made available to support newspapers, 
publications, and other media activities promoting democ-
racy inside Burma: Provided further, That funds made 
available under this heading may be made available not-
withstanding any other provision of law: Provided further, 
That funds made available by this section shall be subject 
to the regular notification procedures of the Committees 
on Appropriations. 
AUTHORITIES FOR THE PEACE CORPS, INTER-AMERICAN 
FOUNDATION AND AFRICAN DEVELOPMENT FOUNDATION 
SEC. 532. Unless expressly provided to the contrary, 
provisions of this or any other Act, including provisions 
contained in prior Acts authorizing or making appropria-
tions for foreign operations, export financing, and related
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programs, shall not be construed to prohibit activities au-
thorized by or conducted under the Peace Corps Act, the 
Inter-American Foundation Act or the African Develop-
ment Foundation Act. The agency shall promptly report 
to the Committees on Appropriations whenever it is con-
ducting activities or is proposing to conduct activities in 
a country for which assistance is prohibited. 
IMPACT ON JOBS IN THE UNITED STATES 
SEC. 533. None of the funds appropriated by this Act 
may be obligated or expended to provide—
(a) any financial incentive to a business enter-
prise currently located in the United States for the 
purpose of inducing such an enterprise to relocate 
outside the United States if such incentive or in-
ducement is likely to reduce the number of employ-
ees of such business enterprise in the United States 
because United States production is being replaced 
by such enterprise outside the United States; or 
(b) assistance for any program, project, or ac-
tivity that contributes to the violation of internation-
ally recognized workers rights, as defined in section 
507(4) of the Trade Act of 1974, of workers in the 
recipient country, including any designated zone or 
area in that country: Provided, That the application 
of section 507(4)(D) and (E) of such Act should be 
commensurate with the level of development of the
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recipient country and sector, and shall not preclude 
assistance for the informal sector in such country, 
micro and small-scale enterprise, and smallholder 
agriculture. 
SPECIAL AUTHORITIES 
SEC. 534. (a) AFGHANISTAN, PAKISTAN, LEBANON, 
MONTENEGRO, VICTIMS OF WAR, DISPLACED CHILDREN, 
AND DISPLACED BURMESE.—Funds appropriated by this 
Act that are made available for assistance for Afghanistan 
may be made available notwithstanding section 512 of this 
Act and any similar provision of law and section 660 of 
the Foreign Assistance Act of 1961, and funds appro-
priated in titles I and II of this Act that are made avail-
able for Lebanon, Montenegro, Pakistan, and for victims 
of war, displaced children, and displaced Burmese, and to 
assist victims of trafficking in persons and, subject to the 
regular notification procedures of the Committees on Ap-
propriations, to combat such trafficking, may be made 
available notwithstanding any other provision of law. 
(b) TROPICAL FORESTRY AND BIODIVERSITY CON-
SERVATION ACTIVITIES.—Funds appropriated by this Act 
to carry out the provisions of sections 103 through 106, 
and chapter 4 of part II, of the Foreign Assistance Act 
of 1961 may be used, notwithstanding any other provision 
of law, for the purpose of supporting tropical forestry and 
biodiversity conservation activities and energy programs
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aimed at reducing greenhouse gas emissions: Provided, 
That such assistance shall be subject to sections 116, 
502B, and 620A of the Foreign Assistance Act of 1961. 
(c) PERSONAL SERVICES CONTRACTORS.—Funds ap-
propriated by this Act to carry out chapter 1 of part I, 
chapter 4 of part II, and section 667 of the Foreign As-
sistance Act of 1961, and title II of the Agricultural Trade 
Development and Assistance Act of 1954, may be used 
by the United States Agency for International Develop-
ment to employ up to 20 personal services contractors in 
the United States, notwithstanding any other provision of 
law, for the purpose of providing direct, interim support 
for new or expanded overseas programs and activities 
managed by the agency until permanent direct hire per-
sonnel are hired and trained: Provided, That not more 
than 7 of such contractors shall be assigned to any bureau 
or office: Provided further, That such funds appropriated 
to carry out the Foreign Assistance Act of 1961 may be 
made available for personal services contractors assigned 
only to the Office of Procurement; the Bureau for Africa; 
and the Bureau for Asia and the Near East: Provided fur-
ther, That such funds appropriated to carry out title II 
of the Agricultural Trade Development and Assistance Act 
of 1954, may be made available only for personal services 
contractors assigned to the Office of Food for Peace.
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(d)(1) WAIVER.—The President may waive the provi-
sions of section 1003 of Public Law 100–204 if the Presi-
dent determines and certifies in writing to the Speaker 
of the House of Representatives and the President pro 
tempore of the Senate that it is important to the national 
security interests of the United States. 
(2) PERIOD
OF APPLICATION
OF WAIVER.—Any 
waiver pursuant to paragraph (1) shall be effective for no 
more than a period of 6 months at a time and shall not 
apply beyond 12 months after the enactment of this Act. 
(e) SMALL BUSINESS.—In entering into multiple 
award indefinite-quantity contracts with funds appro-
priated by this Act, the United States Agency for Inter-
national Development may provide an exception to the fair 
opportunity process for placing task orders under such 
contracts when the order is placed with any category of 
small or small disadvantaged business. 
(f) SHIPMENT
OF HUMANITARIAN ASSISTANCE.—
During fiscal year 2004 and each fiscal year thereafter, 
of the amounts made available by the United States Agen-
cy for International Development to carry out the provi-
sions of section 123(b) of the Foreign Assistance Act of 
1961, funds may be made available to nongovernmental 
organizations for administrative costs necessary to imple-
ment a program to obtain available donated space on com-
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mercial ships for the shipment of humanitarian assistance 
overseas. 
(g) RECONSTITUTING CIVILIAN POLICE AUTHOR-
ITY.—In providing assistance with funds appropriated by 
this Act under section 660(b)(6) of the Foreign Assistance 
Act of 1961, support for a nation emerging from insta-
bility may be deemed to mean support for regional, dis-
trict, municipal, or other sub-national entity emerging 
from instability, as well as a nation emerging from insta-
bility. 
(h) NATIONAL ENDOWMENT
FOR DEMOCRACY.—
Funds appropriated by this Act that are provided to the 
National Endowment for Democracy may be provided not-
withstanding any other provision of law or regulation. 
ARAB LEAGUE BOYCOTT OF ISRAEL 
SEC. 535. It is the sense of the Congress that—
(1) the Arab League boycott of Israel, and the 
secondary boycott of American firms that have com-
mercial ties with Israel, is an impediment to peace 
in the region and to United States investment and 
trade in the Middle East and North Africa; 
(2) the Arab League boycott, which was regret-
tably reinstated in 1997, should be immediately and 
publicly terminated, and the Central Office for the 
Boycott of Israel immediately disbanded;
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(3) the three Arab League countries with diplo-
matic and trade relations with Israel should return 
their ambassadors to Israel, should refrain from 
downgrading their relations with Israel, and should 
play a constructive role in securing a peaceful reso-
lution of the Israeli-Arab conflict; 
(4) the remaining Arab League states should 
normalize relations with their neighbor Israel; 
(5) the President and the Secretary of State 
should continue to vigorously oppose the Arab 
League boycott of Israel and find concrete steps to 
demonstrate that opposition by, for example, taking 
into consideration the participation of any recipient 
country in the boycott when determining to sell 
weapons to said country; and 
(6) the President should report to Congress an-
nually on specific steps being taken by the United 
States to encourage Arab League states to normalize 
their relations with Israel to bring about the termi-
nation of the Arab League boycott of Israel, includ-
ing those to encourage allies and trading partners of 
the United States to enact laws prohibiting busi-
nesses from complying with the boycott and penal-
izing businesses that do comply.
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ADMINISTRATION OF JUSTICE ACTIVITIES 
SEC. 536. Of the funds appropriated or otherwise 
made available by this Act or any subsequent Act for 
‘‘Economic Support Fund’’, assistance may be provided 
to strengthen the administration of justice in countries in 
Latin America and the Caribbean and in other regions 
consistent with the provisions of section 534(b) of the For-
eign Assistance Act of 1961, except that programs to en-
hance protection of participants in judicial cases may be 
conducted notwithstanding section 660 of that Act. Funds 
made available pursuant to this section may be made 
available notwithstanding section 534(c) and the second 
and third sentences of section 534(e) of the Foreign As-
sistance Act of 1961. 
ELIGIBILITY FOR ASSISTANCE 
SEC. 537. (a) ASSISTANCE THROUGH NONGOVERN-
MENTAL ORGANIZATIONS.—Restrictions contained in this 
or any other Act with respect to assistance for a country 
shall not be construed to restrict assistance in support of 
programs of nongovernmental organizations from funds 
appropriated by this Act to carry out the provisions of 
chapters 1, 10, 11, and 12 of part I and chapter 4 of 
part II of the Foreign Assistance Act of 1961, and from 
funds appropriated under the heading ‘‘Assistance for 
Eastern Europe and the Baltic States’’: Provided, That 
before using the authority of this subsection to furnish as-
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sistance in support of programs of nongovernmental orga-
nizations, the President shall notify the Committees on 
Appropriations under the regular notification procedures 
of those committees, including a description of the pro-
gram to be assisted, the assistance to be provided, and 
the reasons for furnishing such assistance: Provided fur-
ther, That nothing in this subsection shall be construed 
to alter any existing statutory prohibitions against abor-
tion or involuntary sterilizations contained in this or any 
other Act. 
(b) PUBLIC LAW 480.—During fiscal year 2004, re-
strictions contained in this or any other Act with respect 
to assistance for a country shall not be construed to re-
strict assistance under the Agricultural Trade Develop-
ment and Assistance Act of 1954: Provided, That none 
of the funds appropriated to carry out title I of such Act 
and made available pursuant to this subsection may be 
obligated or expended except as provided through the reg-
ular notification procedures of the Committees on Appro-
priations. 
(c) EXCEPTION.—This section shall not apply—
(1) with respect to section 620A of the Foreign 
Assistance Act of 1961 or any comparable provision 
of law prohibiting assistance to countries that sup-
port international terrorism; or
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(2) with respect to section 116 of the Foreign 
Assistance Act of 1961 or any comparable provision 
of law prohibiting assistance to the government of a 
country that violates internationally recognized 
human rights. 
RESERVATIONS OF FUNDS 
SEC. 538. (a) Funds appropriated by this Act which 
are earmarked may be reprogrammed for other programs 
within the same account notwithstanding the earmark if 
compliance with the earmark is made impossible by oper-
ation of any provision of this or any other Act: Provided, 
That any such reprogramming shall be subject to the reg-
ular notification procedures of the Committees on Appro-
priations: Provided further, That assistance that is repro-
grammed pursuant to this subsection shall be made avail-
able under the same terms and conditions as originally 
provided. 
(b) In addition to the authority contained in sub-
section (a), the original period of availability of funds ap-
propriated by this Act and administered by the United 
States Agency for International Development that are ear-
marked for particular programs or activities by this or any 
other Act shall be extended for an additional fiscal year 
if the Administrator of such agency determines and re-
ports promptly to the Committees on Appropriations that 
the termination of assistance to a country or a significant
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change in circumstances makes it unlikely that such ear-
marked funds can be obligated during the original period 
of availability: Provided, That such earmarked funds that 
are continued available for an additional fiscal year shall 
be obligated only for the purpose of such earmark. 
CEILINGS AND EARMARKS 
SEC. 539. Ceilings and earmarks contained in this 
Act shall not be applicable to funds or authorities appro-
priated or otherwise made available by any subsequent Act 
unless such Act specifically so directs. Earmarks or min-
imum funding requirements contained in any other Act 
shall not be applicable to funds appropriated by this Act. 
PROHIBITION ON PUBLICITY OR PROPAGANDA 
SEC. 540. No part of any appropriation contained in 
this Act shall be used for publicity or propaganda purposes 
within the United States not authorized before the date 
of the enactment of this Act by the Congress: Provided, 
That not to exceed $750,000 may be made available to 
carry out the provisions of section 316 of Public Law 96–
533. 
PROHIBITION OF PAYMENTS TO UNITED NATIONS 
MEMBERS 
SEC. 541. None of the funds appropriated or made 
available pursuant to this Act for carrying out the Foreign 
Assistance Act of 1961, may be used to pay in whole or 
in part any assessments, arrearages, or dues of any mem-
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ber of the United Nations or, from funds appropriated by 
this Act to carry out chapter 1 of part I of the Foreign 
Assistance Act of 1961, the costs for participation of an-
other country’s delegation at international conferences 
held under the auspices of multilateral or international or-
ganizations. 
NONGOVERNMENTAL ORGANIZATIONS—DOCUMENTATION 
SEC. 542. None of the funds appropriated or made 
available pursuant to this Act shall be available to a non-
governmental organization which fails to provide upon 
timely request any document, file, or record necessary to 
the auditing requirements of the United States Agency for 
International Development. 
PROHIBITION
ON
ASSISTANCE
TO
FOREIGN
GOVERN-
MENTS
THAT
EXPORT
LETHAL
MILITARY
EQUIP-
MENT TO COUNTRIES SUPPORTING INTERNATIONAL 
TERRORISM 
SEC. 543. (a) None of the funds appropriated or oth-
erwise made available by this Act may be available to any 
foreign government which provides lethal military equip-
ment to a country the government of which the Secretary 
of State has determined is a terrorist government for pur-
poses of section 6(j) of the Export Administration Act. 
The prohibition under this section with respect to a for-
eign government shall terminate 12 months after that gov-
ernment ceases to provide such military equipment. This
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section applies with respect to lethal military equipment 
provided under a contract entered into after October 1, 
1997. 
(b) Assistance restricted by subsection (a) or any 
other similar provision of law, may be furnished if the 
President determines that furnishing such assistance is 
important to the national interests of the United States. 
(c) Whenever the waiver authority of subsection (b) 
is exercised, the President shall submit to the appropriate 
congressional committees a report with respect to the fur-
nishing of 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 furthers United 
States national interests. 
WITHHOLDING OF ASSISTANCE FOR PARKING FINES 
OWED BY FOREIGN COUNTRIES 
SEC. 544. (a) IN GENERAL.—Of the funds appro-
priated under this Act that are made available for a for-
eign country under part I of the Foreign Assistance Act 
of 1961, an amount equivalent to 110 percent of the total 
unpaid fines determined to be owed under the parking pro-
grams in the District of Columbia and New York City, 
New York by such country as of September 30, 2003 that 
were incurred after the first day of the fiscal year pre-
ceding the current fiscal year shall be withheld from obli-
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gation for such country until the Secretary of State cer-
tifies and reports in writing to the appropriate congres-
sional committees that such fines and penalties are fully 
paid to the governments of the District of Columbia and 
New York City, New York. 
(b) DEFINITION.—For purposes of this section, the 
term ‘‘appropriate congressional committees’’ means the 
Committee on Foreign Relations and the Committee on 
Appropriations of the Senate and the Committee on Inter-
national Relations and the Committee on Appropriations 
of the House of Representatives. 
LIMITATION ON ASSISTANCE FOR THE PLO FOR THE 
WEST BANK AND GAZA 
SEC. 545. None of the funds appropriated by this Act 
may be obligated for assistance for the Palestine Libera-
tion Organization for the West Bank and Gaza unless the 
President has exercised the authority under section 604(a) 
of the Middle East Peace Facilitation Act of 1995 (title 
VI of Public Law 104–107) or any other legislation to sus-
pend or make inapplicable section 307 of the Foreign As-
sistance Act of 1961 and that suspension is still in effect: 
Provided, That if the President fails to make the certifi-
cation under section 604(b)(2) of the Middle East Peace 
Facilitation Act of 1995 or to suspend the prohibition 
under other legislation, funds appropriated by this Act
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may not be obligated for assistance for the Palestine Lib-
eration Organization for the West Bank and Gaza. 
WAR CRIMES TRIBUNALS DRAWDOWN 
SEC. 546. If the President determines that doing so 
will contribute to a just resolution of charges regarding 
genocide or other violations of international humanitarian 
law, the President may direct a drawdown pursuant to sec-
tion 552(c) of the Foreign Assistance Act of 1961, as 
amended, of up to $30,000,000 of commodities and serv-
ices for the United Nations War Crimes Tribunal estab-
lished with regard to the former Yugoslavia by the United 
Nations Security Council or such other tribunals or com-
missions as the Council may establish or authorize to deal 
with such violations, without regard to the ceiling limita-
tion contained in paragraph (2) thereof: Provided, That 
the determination required under this section shall be in 
lieu of any determinations otherwise required under sec-
tion 552(c): Provided further, That the drawdown made 
under this section for any tribunal shall not be construed 
as an endorsement or precedent for the establishment of 
any standing or permanent international criminal tribunal 
or court: Provided further, That funds made available for 
tribunals other than Yugoslavia or Rwanda shall be made 
available subject to the regular notification procedures of 
the Committees on Appropriations.
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LANDMINES 
SEC. 547. Notwithstanding any other provision of 
law, demining equipment available to the United States 
Agency for International Development and the Depart-
ment of State and used in support of the clearance of 
landmines and unexploded ordnance for humanitarian 
purposes may be disposed of on a grant basis in foreign 
countries, subject to such terms and conditions as the 
President may prescribe. 
RESTRICTIONS CONCERNING THE PALESTINIAN 
AUTHORITY 
SEC. 548. None of the funds appropriated by this Act 
may be obligated or expended to create in any part of Je-
rusalem a new office of any department or agency of the 
United States Government for the purpose of conducting 
official United States Government business with the Pal-
estinian Authority over Gaza and Jericho or any successor 
Palestinian governing entity provided for in the Israel-
PLO Declaration of Principles: Provided, That this re-
striction shall not apply to the acquisition of additional 
space for the existing Consulate General in Jerusalem: 
Provided further, That meetings between officers and em-
ployees of the United States and officials of the Pales-
tinian Authority, or any successor Palestinian governing 
entity provided for in the Israel-PLO Declaration of Prin-
ciples, for the purpose of conducting official United States
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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. 549. 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 or under the headings ‘‘Child Survival and 
Health Programs Fund’’, ‘‘Development Assistance’’, and 
‘‘Economic Support Fund’’ may be obligated or expended 
to pay for—
(1) alcoholic beverages; or 
(2) entertainment expenses for activities that 
are substantially of a recreational character, includ-
ing but not limited to entrance fees at sporting 
events, theatrical and musical productions, and 
amusement parks. 
RESTRICTIONS ON VOLUNTARY CONTRIBUTIONS TO 
UNITED NATIONS AGENCIES 
SEC. 550. None of the funds appropriated by this Act 
may be made available to pay any voluntary contribution
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of the United States to the United Nations (including the 
United Nations Development Program) if the United Na-
tions implements or imposes any taxation on any United 
States persons. 
HAITI 
SEC. 551. The Government of Haiti shall be eligible 
to purchase defense articles and services under the Arms 
Export Control Act (22 U.S.C. 2751 et seq.), for the Coast 
Guard. 
LIMITATION ON ASSISTANCE TO THE PALESTINIAN 
AUTHORITY 
SEC. 552. (a) PROHIBITION OF FUNDS.—None of the 
funds appropriated by this Act to carry out the provisions 
of chapter 4 of part II of the Foreign Assistance Act of 
1961 may be obligated or expended with respect to pro-
viding funds to the Palestinian Authority. 
(b) WAIVER.—The prohibition included in subsection 
(a) shall not apply if the President certifies in writing to 
the Speaker of the House of Representatives and the 
President pro tempore of the Senate that waiving such 
prohibition is important to the national security interests 
of the United States. 
(c) PERIOD
OF APPLICATION
OF WAIVER.—Any 
waiver pursuant to subsection (b) shall be effective for no 
more than a period of 6 months at a time and shall not 
apply beyond 12 months after the enactment of this Act.
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LIMITATION ON ASSISTANCE TO SECURITY FORCES 
SEC. 553. None of the funds made available by this 
Act may be provided to any unit of the security forces 
of a foreign country if the Secretary of State has credible 
evidence that such unit has committed gross violations of 
human rights, unless the Secretary determines and reports 
to the Committees on Appropriations that the government 
of such country is taking effective measures to bring the 
responsible members of the security forces unit to justice: 
Provided, That nothing in this section shall be construed 
to withhold funds made available by this Act from any 
unit of the security forces of a foreign country not credibly 
alleged to be involved in gross violations of human rights: 
Provided further, That in the event that funds are withheld 
from any unit pursuant to this section, the Secretary of 
State shall promptly inform the foreign government of the 
basis for such action and shall, to the maximum extent 
practicable, assist the foreign government in taking effec-
tive measures to bring the responsible members of the se-
curity forces to justice. 
FOREIGN MILITARY TRAINING REPORT 
SEC. 554. The annual foreign military training report 
required by section 656 of the Foreign Assistance Act of 
1961 shall be submitted by the Secretary of Defense and 
the Secretary of State to the Committees on Appropria-
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tions of the House of Representatives and the Senate by 
the date specified in that section. 
KOREAN PENINSULA ENERGY DEVELOPMENT 
ORGANIZATION 
SEC. 555. None of the funds appropriated by this Act 
may be made available for assistance to the Korean Penin-
sula Energy Organization (KEDO). 
PALESTINIAN STATEHOOD 
SEC. 556. (a) LIMITATION ON ASSISTANCE.—None 
of the funds appropriated by this Act may be provided 
to support a Palestinian state unless the Secretary of 
State determines and certifies to the appropriate congres-
sional committees that—
(1) a new leadership of a Palestinian governing 
entity has been democratically elected through cred-
ible and competitive elections; 
(2) the elected governing entity of a new Pales-
tinian state—
(A) has demonstrated a firm commitment 
to peaceful co-existence with the State of Israel; 
(B) is taking appropriate measures to 
counter terrorism and terrorist financing in the 
West Bank and Gaza, including the dismantling 
of terrorist infrastructures; 
(C) is establishing a new Palestinian secu-
rity entity that is fully cooperative with appro-
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priate Israeli and other appropriate security or-
ganizations; and 
(3) the Palestinian Authority (or the governing 
body of a new Palestinian state) is working with 
other countries in the region to vigorously pursue ef-
forts to establish a just, lasting, and comprehensive 
peace in the Middle East that will enable Israel and 
an independent Palestinian state to exist within the 
context of full and normal relationships, which 
should include—
(A) termination of all claims or states of 
belligerency; 
(B) respect for and acknowledgement of 
the sovereignty, territorial integrity, and polit-
ical independence of every state in the area 
through measures including the establishment 
of demilitarized zones; 
(C) their right to live in peace within se-
cure and recognized boundaries free from 
threats or acts of force; 
(D) freedom of navigation through inter-
national waterways in the area; and 
(E) a framework for achieving a just set-
tlement of the refugee problem.
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(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that the newly elected governing entity should enact 
a constitution assuring the rule of law, an independent ju-
diciary, and respect for human rights for its citizens, and 
should enact other laws and regulations assuring trans-
parent and accountable governance. 
(c) WAIVER.—The President may waive subsection 
(a) if he determines that it is vital to the national security 
interests of the United States to do so. 
(d) EXEMPTION.—The restriction in subsection (a) 
shall not apply to assistance intended to help reform the 
Palestinian Authority and affiliated institutions, or a 
newly elected governing entity, in order to help meet the 
requirements of subsection (a), consistent with the provi-
sions of section 552 of this Act (‘‘Limitation on Assistance 
to the Palestinian Authority’’). 
COLOMBIA 
SEC. 557. (a) DETERMINATION AND CERTIFICATION 
REQUIRED.—Notwithstanding any other provision of law, 
funds appropriated by this Act that are available for as-
sistance for the Colombian Armed Forces, may be made 
available as follows: 
(1) Up to 75 percent of such funds may be obli-
gated prior to a determination and certification by 
the Secretary of State pursuant to paragraph (2).
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(2) The balance of such funds may be obligated 
only after the Secretary of State certifies and re-
ports to the appropriate congressional committees 
that: 
(A) The Commander General of the Co-
lombian Armed Forces is suspending from the 
Armed Forces those members, of whatever 
rank, who have been credibly alleged to have 
committed gross violations of human rights, in-
cluding extra-judicial killings, or to have aided 
or abetted paramilitary organizations. 
(B) The Colombian Government is pros-
ecuting those members of the Colombian Armed 
Forces, of whatever rank, who have been 
credibly alleged to have committed gross viola-
tions of human rights, including extra-judicial 
killings, or to have aided or abetted para-
military organizations, and is punishing those 
members of the Colombian Armed Forces found 
to have committed such violations of human 
rights or to have aided or abetted paramilitary 
organizations. 
(C) The Colombian Armed Forces are co-
operating with civilian prosecutors and judicial 
authorities in such cases (including providing
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requested information, such as the identity of 
persons suspended from the Armed Forces and 
the nature and cause of the suspension, and ac-
cess to witnesses, relevant military documents, 
and other requested information). 
(D) The Colombian Armed Forces are sev-
ering links (including denying access to military 
intelligence, vehicles, and other equipment or 
supplies, and ceasing other forms of active or 
tacit cooperation) at the command, battalion, 
and brigade levels, with paramilitary organiza-
tions. 
(E) The Colombian Armed Forces are exe-
cuting orders for capture of leaders of para-
military organizations that continue armed con-
flict. 
(b) CONSULTATIVE PROCESS.—At least 10 days prior 
to making the certification required by subsection (a), the 
Secretary of State shall consult with internationally recog-
nized human rights organizations regarding progress in 
meeting the conditions contained in that subsection. 
(c) DEFINITIONS.—In this section: 
(1) AIDED OR ABETTED.—The term ‘‘aided or 
abetted’’ means to provide any support to para-
military groups, including taking actions which
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allow, facilitate, or otherwise foster the activities of 
such groups. 
(2) PARAMILITARY GROUPS.—The term ‘‘para-
military groups’’ means illegal self-defense groups 
and illegal security cooperatives. 
ILLEGAL ARMED GROUPS 
SEC. 558. (a) DENIAL OF VISAS TO SUPPORTERS OF 
COLOMBIAN ILLEGAL ARMED GROUPS.—Subject to sub-
section (b), the Secretary of State shall not issue a visa 
to any alien who the Secretary determines, based on cred-
ible evidence—
(1) has willfully provided any support to the 
Revolutionary Armed Forces of Colombia (FARC), 
the National Liberation Army (ELN), or the United 
Self-Defense Forces of Colombia (AUC), including 
taking actions or failing to take actions which allow, 
facilitate, or otherwise foster the activities of such 
groups; or 
(2) has committed, ordered, incited, assisted, or 
otherwise participated in the commission of gross 
violations of human rights, including extra-judicial 
killings, in Colombia. 
(b) WAIVER.—Subsection (a) shall not apply if the 
Secretary of State determines and certifies to the appro-
priate congressional committees, on a case-by-case basis, 
that the issuance of a visa to the alien is necessary to
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support the peace process in Colombia or for urgent hu-
manitarian reasons. 
PROHIBITION ON ASSISTANCE TO THE PALESTINIAN 
BROADCASTING CORPORATION 
SEC. 559. None of the funds appropriated or other-
wise made available by this Act may be used to provide 
equipment, technical support, consulting services, or any 
other form of assistance to the Palestinian Broadcasting 
Corporation. 
WEST BANK AND GAZA PROGRAM 
SEC. 560. (a) OVERSIGHT.—For fiscal year 2004, 30 
days prior to the initial obligation of funds for the bilateral 
West Bank and Gaza Program, the Secretary of State 
shall certify to the appropriate committees of Congress 
that procedures have been established to assure the Comp-
troller General of the United States will have access to 
appropriate United States financial information in order 
to review the uses of United States assistance for the Pro-
gram funded under the heading ‘‘Economic Support 
Fund’’ for the West Bank and Gaza. 
(b) VETTING.—Prior to the obligation of funds ap-
propriated by this Act under the heading ‘‘Economic Sup-
port Fund’’ for assistance for the West Bank and Gaza, 
the Secretary of State shall take all appropriate steps to 
ensure that such assistance is not provided to or through 
any individual or entity that the Secretary knows or has
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reason to believe advocates, plans, sponsors, engages in, 
or has engaged in, terrorist activity. The Secretary of 
State shall, as appropriate, establish procedures specifying 
the steps to be taken in carrying out this subsection. 
(c) AUDITS.—(1) The Administrator of the United 
States Agency for International Development shall ensure 
that Federal or non-Federal audits of all contractors and 
grantees, and significant subcontractors and subgrantees, 
under the West Bank and Gaza Program, are conducted 
at least on an annual basis to ensure, among other things, 
compliance with this section. 
(2) Of the funds appropriated by this Act under the 
heading ‘‘Economic Support Fund’’ that are made avail-
able for assistance for the West Bank and Gaza, up to 
$1,000,000 may be used by the Office of the Inspector 
General of the United States Agency for International De-
velopment for audits, inspections, and other activities in 
furtherance of the requirements of this subsection. Such 
funds are in addition to funds otherwise available for such 
purposes. 
CONTRIBUTIONS TO UNITED NATIONS POPULATION FUND 
SEC. 561. (a) LIMITATIONS ON AMOUNT OF CON-
TRIBUTION.—Of the amounts made available under 
‘‘International 
Organizations 
and 
Programs’’, 
$25,000,000 for fiscal year 2004 shall be available for the
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United Nations Population Fund (hereafter in this section 
referred to as the ‘‘UNFPA’’) subject to subsection (c). 
(b) PROHIBITION ON USE OF FUNDS IN CHINA.—
None of the funds made available under ‘‘International 
Organizations and Programs’’ may be made available for 
the UNFPA for a country program in the People’s Repub-
lic of China. 
(c) CONDITIONS
ON AVAILABILITY
OF FUNDS.—
Amounts made available under ‘‘International Organiza-
tions and Programs’’ for fiscal year 2004 for the UNFPA 
may not be made available to the UNFPA unless—
(1) the UNFPA maintains amounts made avail-
able to the UNFPA under this section in an account 
separate from other accounts of the UNFPA; 
(2) the UNFPA does not commingle amounts 
made available to the UNFPA under this section 
with other sums; 
(3) the UNFPA does not fund abortions; and 
(4) the UNFPA does not provide any funding 
for the State Planned-Birth Commission (Jihua 
Shengyu Weiyuanhui) or its regional affiliates in the 
People’s Republic of China. 
(d) REPORT TO THE CONGRESS AND WITHHOLDING 
OF FUNDS.—
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(1) Not later than February 15, 2004, the Sec-
retary of State shall submit a report to the appro-
priate congressional committees indicating the 
amount of funds that the UNFPA is budgeting for 
the year in which the report is submitted for a coun-
try program in the People’s Republic of China. 
(2) If a report under paragraph (1) indicates 
that the UNFPA plans to spend funds for a country 
program in the People’s Republic of China in the 
year covered by the report, then the amount of such 
funds that the UNFPA plans to spend in the Peo-
ple’s Republic of China shall be deducted from the 
funds made available to the UNFPA after March 1 
for obligation for the remainder of the fiscal year in 
which the report is submitted. 
PROCUREMENT AND FINANCIAL MANAGEMENT REFORM 
SEC. 562. (a) FUNDING CONDITIONS.—Of the funds 
made available under the heading ‘‘International Financial 
Institutions’’ in this Act, 10 percent of the United States 
portion or payment to such International Financial Insti-
tution shall be withheld by the Secretary of the Treasury, 
until the Secretary certifies to the Committees on Appro-
priations that, to the extent pertinent to its lending pro-
grams, the institution is—
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(1) implementing procedures for conducting an-
nual audits by qualified independent auditors for all 
new investment lending; 
(2) implementing procedures for annual inde-
pendent external audits of central bank financial 
statements for countries making use of International 
Monetary Fund resources under new arrangements 
or agreements with the Fund; 
(3) taking steps to establish an independent 
fraud and corruption investigative organization or 
office; 
(4) implementing a process to assess a recipient 
country’s procurement and financial management 
capabilities including an analysis of the risks of cor-
ruption prior to initiating new investment lending; 
and 
(5) taking steps to fund and implement pro-
grams and policies to improve transparency and 
anti-corruption programs and procurement and fi-
nancial management controls in recipient countries. 
(b) DEFINITIONS.—The term ‘‘International Finan-
cial Institutions’’ means the International Bank for Re-
construction and Development, the International Develop-
ment Association, the International Finance Corporation, 
the Inter-American Development Bank, the Inter-Amer-
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ican Investment Corporation, the Enterprise for the Amer-
icas Multilateral Investment Fund, the Asian Development 
Bank, the Asian Development Fund, the African Develop-
ment Bank, the African Development Fund, the European 
Bank for Reconstruction and Development, and the Inter-
national Monetary Fund. 
WAR CRIMINALS 
SEC. 563. (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 direc-
tors 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 authori-
ties have failed, as determined by the Secretary of State, 
to take necessary 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 humanitarian assistance or assistance for democratiza-
tion.
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(b) The provisions of subsection (a) shall apply unless 
the Secretary of State determines and reports to the ap-
propriate congressional committees that the competent au-
thorities of such country, entity, or municipality are—
(1) cooperating with the Tribunal, including ac-
cess for investigators to archives and witnesses, the 
provision of documents, and the surrender and 
transfer of indictees or assistance in their apprehen-
sion; and 
(2) are acting consistently with the Dayton Ac-
cords. 
(c) Not less than 10 days before any vote in an inter-
national 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 proposed 
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
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Treasury shall consult with representatives of human 
rights organizations and all government agencies with rel-
evant 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 subsection (a) with respect to projects within a country, 
entity, or municipality upon a written determination to the 
Committees on Appropriations that such assistance di-
rectly 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 Ac-
cords’’ means the General Framework Agreement 
for Peace in Bosnia and Herzegovina, together with 
annexes relating thereto, done at Dayton, November 
10 through 16, 1995.
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USER FEES 
SEC. 564. The Secretary of the Treasury shall in-
struct the United States Executive Director at each inter-
national 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 pri-
mary education or primary healthcare, including preven-
tion and treatment efforts for HIV/AIDS, malaria, tuber-
culosis, and infant, child, and maternal well-being, in con-
nection with the institutions’ financing programs. 
FUNDING FOR SERBIA 
SEC. 565. (a) Funds appropriated by this Act may 
be made available for assistance for Serbia after March 
1, 2004, if the President has made the determination and 
certification contained in subsection (c). 
(b) After March 1, 2004, the Secretary of the Treas-
ury should instruct the United States executive directors 
to the international financial institutions to support loans 
and assistance to the Government of the Federal Republic 
of Yugoslavia (or a government of a successor state) sub-
ject to the conditions in subsection (c): Provided, That sec-
tion 576 of the Foreign Operations, Export Financing, 
and Related Programs Appropriations Act, 1997, as 
amended, shall not apply to the provision of loans and as-
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sistance to the Federal Republic of Yugoslavia (or a suc-
cessor 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 re-
flect 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, humanitarian assistance or assistance to promote 
democracy in municipalities.
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COMMUNITY-BASED POLICE ASSISTANCE 
SEC. 566. (a) AUTHORITY.—Funds made available 
by this Act to carry out the provisions of chapter 1 of 
part I and chapter 4 of part II of the Foreign Assistance 
Act of 1961, may be used, notwithstanding section 660 
of that Act, to enhance the effectiveness and account-
ability of civilian police authority in Jamaica and El Sal-
vador through training and technical assistance in human 
rights, the rule of law, strategic planning, and through as-
sistance to foster civilian police roles that support demo-
cratic governance including assistance for programs to 
prevent conflict and foster improved police relations with 
the communities they serve. 
(b) NOTIFICATION.—Assistance provided under sub-
section (a) shall be subject to the regular notification pro-
cedures of the Committees on Appropriations. 
TRADE CAPACITY BUILDING 
SEC. 567. Of the funds appropriated by this Act, 
under the headings ‘‘Trade and Development Agency’’, 
‘‘Development 
Assistance’’, 
‘‘Transition 
Initiatives’’, 
‘‘Economic Support Fund’’, ‘‘International Affairs Tech-
nical Assistance’’, and ‘‘International Organizations and 
Programs’’, not less than $517,000,000 should be made 
available for trade capacity building assistance.
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SPECIAL DEBT RELIEF FOR THE POOREST 
SEC. 568. (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, 
to pay for purchases of United States agricultural 
commodities guaranteed by the Commodity Credit 
Corporation under export credit guarantee programs 
authorized pursuant to section 5(f) of the Com-
modity 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 Agricultural Trade Act 
of 1978, as amended (Public Law 95–501). 
(b) LIMITATIONS.—
(1) The authority provided by subsection (a) 
may be exercised only to implement multilateral offi-
cial debt relief and referendum agreements, com-
monly referred to as ‘‘Paris Club Agreed Minutes’’.
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(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; 
(4) (including its military or other security 
forces) does not engage in a consistent pattern of 
gross violations of internationally recognized human 
rights; and
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(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.—The 
authority provided by subsection (a) may be exercised not-
withstanding section 620(r) of the Foreign Assistance Act 
of 1961 or section 321 of the International Development 
and Food Assistance Act of 1975. 
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES 
SEC. 569. (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-
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—
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(A) 
debt-for-equity 
swaps, 
debt-for-development 
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 addi-
tional 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 be-
tween 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 
development, and child survival and other child develop-
ment, 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.—Notwith-
standing any other provision of law, the President 
shall, in accordance with this section, establish the 
terms and conditions under which loans may be sold, 
reduced, or canceled pursuant to this section. 
(3) ADMINISTRATION.—The Facility, as defined 
in section 702(8) of the Foreign Assistance Act of 
1961, shall notify the administrator of the agency 
primarily responsible for administering part I of the 
Foreign Assistance Act of 1961 of purchasers that
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the President has determined to be eligible, and 
shall direct such agency to carry out the sale, reduc-
tion, or cancellation of a loan pursuant to this sec-
tion. Such agency shall make an adjustment in its 
accounts to reflect the sale, reduction, or cancella-
tion. 
(4) LIMITATION.—The authorities of this sub-
section shall be available only to the extent that ap-
propriations for the cost of the modification, as de-
fined in section 502 of the Congressional Budget Act 
of 1974, are made in advance. 
(b) DEPOSIT OF PROCEEDS.—The proceeds from the 
sale, reduction, or cancellation of any loan sold, reduced, 
or canceled pursuant to this section shall be deposited in 
the United States Government account or accounts estab-
lished for the repayment of such loan. 
(c) ELIGIBLE PURCHASERS.—A loan may be sold 
pursuant to subsection (a)(1)(A) only to a purchaser who 
presents plans satisfactory to the President for using the 
loan for the purpose of engaging in debt-for-equity swaps, 
debt-for-development swaps, or debt-for-nature swaps. 
(d) DEBTOR CONSULTATIONS.—Before the sale to 
any eligible purchaser, or any reduction or cancellation 
pursuant to this section, of any loan made to an eligible 
country, the President should consult with the country
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concerning the amount of loans to be sold, reduced, or 
canceled and their uses for debt-for-equity swaps, debt-
for-development swaps, or debt-for-nature swaps. 
(e) AVAILABILITY OF FUNDS.—The authority pro-
vided by subsection (a) may be used only with regard to 
funds appropriated by this Act under the heading ‘‘Debt 
Restructuring’’. 
CAMBODIA 
SEC. 570. The Secretary of the Treasury should in-
struct the United States executive directors of the inter-
national financial institutions to use the voice and vote 
of the United States to oppose loans to the Central Gov-
ernment of Cambodia, except loans to support basic 
human needs. 
CUBA 
SEC. 571. None of the funds appropriated by this Act 
under the heading ‘‘International Narcotics Control and 
Law Enforcement’’ may be made available for assistance 
to the Government of Cuba. 
COMPETITION IN CONTRACTING 
SEC. 572. Notwithstanding any other provision of 
law, none of the funds appropriated by this Act to carry 
out sections 103 through 106 and chapter 4 of part II 
of the Foreign Assistance Act of 1961 that are made avail-
able for assistance for Iraq, and none of the funds appro-
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priated in Public Law 108–11 under the heading ‘‘Iraq 
Relief and Reconstruction Fund’’, may be made available 
to enter into any Federal contract or follow-on contract 
through the use of other than full and open competitive 
procedures: Provided, That this section shall be applicable 
to contracts and follow-on contracts entered into after the 
date of enactment of this Act. 
DISASTER SURGE CAPACITY 
SEC. 573. Funds appropriated by this Act to carry 
out part I of the Foreign Assistance Act of 1961 may be 
used, in addition to funds otherwise available for such pur-
poses, for the cost (including the support costs) of individ-
uals detailed to or employed by the United States Agency 
for International Development whose primary responsi-
bility is to carry out programs to address natural or man-
made disasters or programs under the heading ‘‘Transi-
tion Initiatives’’. 
AUTHORIZATION 
SEC. 574. The Secretary of the Treasury may, to ful-
fill commitments of the United States, contribute on be-
half of the United States to the sixth replenishment of 
the resources of the International Fund for Agricultural 
Development. The following amount is authorized to be 
appropriated without fiscal year limitation for payment by
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the Secretary of the Treasury: $45,000,000 for the Inter-
national Fund for Agricultural Development. 
CLARIFICATION OF ROLE OF USAID 
SEC. 575. (a) STATUS OF USAID.—The Adminis-
trator of the United States Agency for International De-
velopment shall report to the President through, and oper-
ate under the foreign policy authority and direction of, the 
Secretary of State. The United States Agency for Inter-
national Development shall be administered under the su-
pervision and operational direction of the Administrator 
of the Agency. 
(b) FUNCTIONS
OF USAID.—The United States 
Agency for International Development is authorized—
(1) to receive appropriated funds; 
(2) to be the United States Government agency 
primarily responsible for administering sections 103 
through 108 (other than section 104A), 214, and 
491 of the Foreign Assistance Act of 1961, the 
‘‘Child Survival and Health Programs Fund’’, and 
other United States economic assistance as directed 
in writing by the President or the Secretary of 
State, or as otherwise provided by law; 
(3) to provide assistance to a country currently 
ineligible for assistance from the Millennium Chal-
lenge Corporation in order that it may become eligi-
ble for such assistance; and
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(4) upon the request of the Chief Executive Of-
ficer of the Millennium Challenge Corporation and 
with the concurrence of the Administrator, to assist 
in the evaluation, execution or oversight of a Millen-
nium Challenge Contract. 
(c) Section 491 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2292) is amended—
(1) in subsection (a), by striking ‘‘assistance for 
the relief and rehabilitation of’’ and inserting ‘‘relief, 
rehabilitation, and reconstruction assistance for’’; 
(2) in subsection (b), by striking ‘‘relief and re-
habilitation’’ and inserting ‘‘relief, rehabilitation, 
and reconstruction’’; and 
(3) in subsection (c), by striking ‘‘relief and re-
habilitation’’ and inserting ‘‘relief, rehabilitation, 
and reconstruction assistance’’. 
PHILIPPINE EDUCATION AND HEALTH INFRASTRUCTURE 
SEC. 576. Of the funds appropriated under ‘‘Eco-
nomic Support Fund’’ for the Philippines in Public Law 
108–11, the Emergency Wartime Supplemental Appro-
priations Act, 2003, $600,000 shall be available only for 
upgrading education and health infrastructure in the Sulu 
Archipelago.
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BASIC EDUCATION 
SEC. 577. Of the funds appropriated by title II of 
this Act, not less than $350,000,000 shall be made avail-
able for basic education: Provided, That of the funds made 
available pursuant to this section, not less than 
$91,500,000 should be from funds appropriated under the 
heading ‘‘Economic Support Fund’’: Provided further, 
That the Secretary of State, in consultation with the Ad-
ministrator of the United States Agency for International 
Development (USAID), shall submit a report not later 
than 120 days after enactment of this Act articulating a 
strategy for the use of basic education funds in Africa, 
East Asia and the Pacific, the Near East, South Asia, and 
the Western Hemisphere (excluding the United States) to 
include: 
(1) country strategies and brief project descrip-
tions of the uses and proposed uses of all U.S. Gov-
ernment resources for basic education overseas; 
(2) a detailed description of the administrative 
structure currently in place to manage strategic co-
ordination undertaken among the State Department, 
USAID and other agencies involved in international 
basic education activities; and 
(3) a description of actions being taken to expand 
the administrative capacity of both USAID and the
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State Department to deliver effective expanded basic 
education programs. 
This Act may be cited as the ‘‘Foreign Operations, 
Export Financing, and Related Programs Appropriations 
Act, 2004’’.
Union Calendar No. 123
108TH CONGRESS 
1ST SESSION 
H. R. 2800
[Report No. 108–222] 
A BILL 
Making appropriations for foreign operations, ex-
port financing, and related programs for the fis-
cal year ending September 30, 2004, and for 
other purposes. 
JULY 21, 2003
Committed to the Committee of the Whole House on the 
State of the Union and ordered to be printed