I
107TH CONGRESS
1ST SESSION
H. R. 675
To provide assistance to East Timor to facilitate the transition of East
Timor to an independent nation, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 14, 2001
Mr. LANTOS (for himself, Mr. KENNEDY of Rhode Island, Mr. SMITH of New
Jersey, Mr. KIRK, Mr. MCGOVERN, Mrs. LOWEY, Mr. CAPUANO, Mr.
BERMAN, Mr. ACKERMAN, Mr. WEINER, Mr. FALEOMAVAEGA, Mr.
CROWLEY, 
Ms. 
PELOSI, 
Mr. 
OBERSTAR, 
Mr. 
KUCINICH, 
Mr.
MCDERMOTT, Mr. HALL of Ohio, Mr. KILDEE, Mr. HINCHEY, Ms.
MCCOLLUM, Mr. LANGEVIN, Mr. HOEFFEL, Mr. FRANK, Mr. WU, Mr.
BROWN of Ohio, Mr. MCNULTY, Mr. DELAHUNT, and Mr. HASTINGS of
Florida) introduced the following bill; which was referred to the Com-
mittee on International Relations, and in addition to the Committees on
Financial Services, and Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned
A BILL
To provide assistance to East Timor to facilitate the transi-
tion of East Timor to an independent nation, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘East Timor Transition
to Independence Act of 2001’’.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) On August 30, 1999, the East Timorese
people voted overwhelmingly in favor of independ-
ence from Indonesia. Anti-independence militias,
with the support of the Indonesian military, at-
tempted to prevent then retaliated against this vote
by launching a campaign of terror and violence, dis-
placing 500,000 people and murdering at least
1,000 people.
(2) The violent campaign devastated East
Timor’s infrastructure, destroyed or severely dam-
aged 60 to 80 percent of public and private prop-
erty, and resulted in the collapse of virtually all
vestiges of government, public services and public se-
curity.
(3) The Australian-led International Force for
East Timor (INTERFET) entered East Timor in
September 1999 and successfully restored order. On
October 25, 1999, the United Nations Transitional
Administration for East Timor (UNTAET) began to
provide overall administration of East Timor, guide
the people of East Timor in the establishment of a
new democratic government, and maintain security
and order.
(4) UNTAET and the East Timorese leader-
ship currently anticipate that East Timor will be-
come an independent nation as early as late 2001.
(5) East Timor is one of the poorest places in
Asia. A large percentage of the population live below
the poverty line, only 20 percent of East Timor’s
population is literate, most of East Timor’s people
remain unemployed, the annual per capita Gross Na-
tional Product is $340, and life expectancy is only
56 years.
(6) The World Bank and the United Nations
have estimated that it will require $300,000,000 in
development assistance over the next three years to
meet East Timor’s basic development needs.
SEC. 3. SENSE OF CONGRESS RELATING TO SUPPORT FOR
EAST TIMOR.
It is the sense of Congress that the United States
should—
(1) facilitate East Timor’s transition to inde-
pendence, support formation of broad-based democ-
racy in East Timor, help lay the groundwork for
East Timor’s economic recovery, and strengthen
East Timor’s security;
(2) help ensure that the nature and pace of the
economic transition in East Timor is consistent with
the needs and priorities of the East Timorese people,
that East Timor develops a strong and independent
economic infrastructure, and that the incomes of the
East Timorese people rise accordingly;
(3) begin to lay the groundwork, prior to East
Timor’s independence, for an equitable bilateral
trade and investment relationship;
(4)(A) officially open a diplomatic mission to
East Timor as soon as possible;
(B) recognize East Timor, and establish diplo-
matic relations with East Timor, upon its independ-
ence; and
(C) ensure that a fully functioning, fully
staffed, adequately resourced, and securely main-
tained United States diplomatic mission is accred-
ited to East Timor upon its independence;
(5) support efforts by the United Nations and
East Timor to ensure justice and accountability re-
lated to past atrocities in East Timor through—
(A) United Nations investigations;
(B) development of East Timor’s judicial
system, including appropriate technical assist-
ance to East Timor from the Department of
Justice, the Federal Bureau of Investigation,
and the Drug Enforcement Administration;
(C) the possible establishment of an inter-
national tribunal for East Timor; and
(D) sharing with the United Nations Tran-
sitional 
Administration 
for 
East 
Timor
(UNTAET) and East Timorese investigators
any unclassified information relevant to past
atrocities in East Timor gathered by the United
States Government; and
(6)(A) as an interim step, support observer sta-
tus for an official delegation from East Timor to ob-
serve and participate, as appropriate, in all delibera-
tions of the Asia-Pacific Economic Cooperation
(APEC) group, the Association of Southeast Asian
Nations (ASEAN), and other international institu-
tions; and
(B) after East Timor achieves independence,
support full membership for East Timor in these
and other international institutions, as appropriate.
SEC. 4. BILATERAL ASSISTANCE.
(a) AUTHORITY.—The President, acting through the
Administrator of the United States Agency for Inter-
national Development, is authorized to—
(1) support the development of civil society, in-
cluding nongovernmental organizations in East
Timor;
(2) promote the development of an independent
news media;
(3) support job creation, including support for
small business and microenterprise programs, envi-
ronmental protection, sustainable development, de-
velopment of East Timor’s health care infrastruc-
ture, educational programs, and programs strength-
ening the role of women in society;
(4) promote reconciliation, conflict resolution,
and prevention of further conflict with respect to
East Timor, including establishing accountability for
past gross human rights violations;
(5) support the voluntary and safe repatriation
and reintegration of refugees into East Timor; and
(6) support political party development, voter
education, voter registration, and other activities in
support of free and fair elections in East Timor.
(b) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be
appropriated to the President to carry out this sec-
tion $30,000,000 for each of the fiscal years 2002,
2003, and 2004.
(2) AVAILABILITY.—Amounts appropriated pur-
suant to the authorization of appropriations under
paragraph (1) are authorized to remain available
until expended.
SEC. 5. MULTILATERAL ASSISTANCE.
The Secretary of the Treasury shall instruct the
United States executive director at each international fi-
nancial institution to which the United States is a member
to use the voice, vote, and influence of the United States
to support economic and democratic development in East
Timor.
SEC. 6. PEACE CORPS ASSISTANCE.
(a) AUTHORITY.—The Director of the Peace Corps
is authorized to—
(1) provide English language and other tech-
nical training for individuals in East Timor as well
as other activities which promote education, eco-
nomic development, and economic self-sufficiency;
and
(2) quickly address immediate assistance needs
in East Timor using the Peace Corps Crisis Corps,
to the extent practicable.
(b) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be
appropriated to the Peace Corps to carry out this
section $2,000,000 for each of the fiscal years 2001,
2002, 2003, and 2004.
(2) AVAILABILITY.—Amounts appropriated pur-
suant to the authorization of appropriations under
paragraph (1) are authorized to remain available
until expended.
SEC. 7. TRADE AND INVESTMENT ASSISTANCE.
(a) OPIC.—Beginning on the date of the enactment
of this Act, the President should initiate negotiations with
the United Nations Transitional Administration for East
Timor (UNTAET), the National Council of East Timor,
and the government of East Timor (after independence
for East Timor)—
(1) to apply to East Timor the existing agree-
ment between the Overseas Private Investment Cor-
poration and Indonesia; or
(2) to enter into a new agreement authorizing
the Overseas Private Investment Corporation to
carry out programs with respect to East Timor,
in order to expand United States investment in East
Timor, emphasizing partnerships with local East Timorese
enterprises.
(b) TRADE AND DEVELOPMENT AGENCY.—
(1) IN GENERAL.—The Director of the Trade
and Development Agency is authorized to carry out
projects in East Timor under section 661 of the
Foreign Assistance Act of 1961 (22 U.S.C. 2421).
(2) AUTHORIZATION OF APPROPRIATIONS.—
(A) IN GENERAL.—There are authorized to
be appropriated to the Trade and Development
Agency to carry out this subsection $1,000,000
for each of the fiscal years 2001, 2002, 2003,
and 2004.
(B) 
AVAILABILITY.—Amounts 
appro-
priated pursuant to the authorization of appro-
priations under subparagraph (A) are author-
ized to remain available until expended.
(c) EXPORT-IMPORT
BANK.—The Export-Import
Bank of the United States shall expand its activities in
connection with exports to East Timor.
SEC. 8. GENERALIZED SYSTEM OF PREFERENCES.
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the President should encourage the United Na-
tions Transitional Administration for East Timor
(UNTAET), in close consultation with the National Coun-
cil of East Timor, to seek to become eligible for duty-free
treatment under title V of the Trade Act of 1974 (19
U.S.C. 2461 et seq.; relating to generalized system of pref-
erences).
(b) TECHNICAL ASSISTANCE.—The United States
Trade Representative and the Commissioner of the United
States Customs Service are authorized to provide technical
assistance to UNTAET, the National Council of East
Timor, and the government of East Timor (after inde-
pendence for East Timor) in order to assist East Timor
to become eligible for duty-free treatment under title V
of the Trade Act of 1974.
SEC. 9. BILATERAL INVESTMENT TREATY.
It is the sense of Congress that the President should
seek to enter into a bilateral investment treaty with the
United Nations Transitional Administration for East
Timor (UNTAET), in close consultation with the National
Council of East Timor, in order to establish a more stable
legal framework for United States investment in East
Timor.
SEC. 10. SCHOLARSHIPS FOR EAST TIMORESE STUDENTS.
(a) AUTHORITY.—The Secretary of State—
(1) is authorized to carry out an East Timorese
scholarship program under the authorities of the
United States Information and Educational Ex-
change Act of 1948, the Mutual Educational and
Cultural Exchange Act of 1961, Reorganization Plan
Number 2 of 1977, and the National Endowment
for Democracy Act; and
(2) shall make every effort to identify and pro-
vide scholarships and other support to East Timor-
ese students interested in pursuing undergraduate
and graduate studies at institutions of higher edu-
cation in the United States.
(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Department of
State, $1,000,000 for the fiscal year 2002 and $1,000,000
for the fiscal year 2003 to carry out subsection (a).
SEC. 11. PLAN FOR ESTABLISHMENT OF DIPLOMATIC FA-
CILITIES IN EAST TIMOR.
(a) DEVELOPMENT OF DETAILED PLAN.—The Sec-
retary of State shall develop a detailed plan for the official
establishment of a United States diplomatic mission to
East Timor, with a view to—
(1) officially open a fully functioning, fully
staffed, adequately resourced, and securely main-
tained diplomatic mission in East Timor as soon as
possible;
(2) recognize East Timor, and establish diplo-
matic relations with East Timor, upon its independ-
ence; and
(3) ensure that a fully functioning, fully staffed,
adequately resourced, and securely maintained diplo-
matic mission is accredited to East Timor upon its
independence.
(b) REPORTS.—
(1) INITIAL
REPORT.—Not later than three
months after the date of the enactment of this Act,
the Secretary of State shall submit to the Committee
on International Relations of the House of Rep-
resentatives and the Committee on Foreign Rela-
tions of the Senate a report that contains the de-
tailed plan described in subsection (a), including a
timetable for the official opening of a facility in Dili,
East Timor, the personnel requirements for the mis-
sion, the estimated costs for establishing the facility,
and its security requirements.
(2) SUBSEQUENT
REPORTS.—Beginning six
months after the submission of the initial report
under paragraph (1), and every six months there-
after until January 1, 2004, the Secretary of State
shall submit to the committees specified in that
paragraph a report on the status of the implementa-
tion of the detailed plan described in subsection (a),
including any revisions to the plan (including its
timetable, costs, or requirements) that have been
made during the period covered by the report.
(3) FORM OF REPORT.—Each report submitted
under this subsection shall be in unclassified form,
with a classified annex as necessary.
SEC. 12. SECURITY ASSISTANCE FOR EAST TIMOR.
(a) AUTHORIZATION.—Beginning on the date on
which the President transmits to the Congress a certifi-
cation described in subsection (b), the President is
authorized—
(1) to transfer excess defense articles under
section 516 of the Foreign Assistance Act of 1961
(22 U.S.C. 2321j) to East Timor in accordance with
such section; and
(2) to provide military education and training
under chapter 5 of part II of such Act (22 U.S.C.
2347 et seq.) for the armed forces of East Timor in
accordance with such chapter.
(b) CERTIFICATION.—A certification described in this
subsection is a certification that—
(1) East Timor has established an independent
armed forces; and
(2) the assistance proposed to be provided pur-
suant to subsection (a)—
(A) is in the national security interests of
the United States; and
(B) will promote both human rights in
East Timor and the professionalization of the
armed forces of East Timor.
(c) STUDY AND REPORT.—
(1) STUDY.—The President shall conduct a
study to determine—
(A) the extent to which East Timor’s secu-
rity needs can be met by the transfer of excess
defense articles under section 516 of the For-
eign Assistance Act of 1961;
(B) the extent to which international mili-
tary education and training (IMET) assistance
will enhance professionalism of the armed
forces of East Timor, provide training in
human rights, and promote respect for human
rights and humanitarian law; and
(C) the terms and conditions under which
such defense articles or training, as appro-
priate, should be provided.
(2) REPORT.—Not later than 1 month after the
date of enactment of this Act, the President shall
submit a report to the Committee on Foreign Rela-
tions and the Committee on Appropriations of the
Senate and the Committee on International Rela-
tions and the Committee on Appropriations of the
House of Representatives setting forth the findings
of the study conducted under paragraph (1).
SEC. 13. AUTHORITY FOR RADIO BROADCASTING.
The Broadcasting Board of Governors shall further
the communication of information and ideas through the
increased use of audio broadcasting to East Timor to en-
sure that radio broadcasting to that country serves as a
consistently reliable and authoritative source of accurate,
objective, and comprehensive news.
SEC. 14. REPORTING REQUIREMENT.
(a) IN GENERAL.—Not later than three months after
the date of the enactment of this Act, and every six
months thereafter until January 1, 2004, the Secretary
of State, in coordination with the Administrator of the
United States Agency for International Development, the
Secretary of the Treasury, the United States Trade Rep-
resentative, the Secretary of Commerce, the Overseas Pri-
vate Investment Corporation, the Director of the Trade
and Development Agency, the President of the Export-Im-
port Bank of the United States, the Secretary of Agri-
culture, and the Director of the Peace Corps, shall prepare
and transmit to the Committee on International Relations
of the House of Representatives and the Committee on
Foreign Relations of the Senate a report that contains the
information described in subsection (b).
(b) INFORMATION.—The report required by sub-
section (a) shall include—
(1) developments in East Timor’s political and
economic situation in the period covered by the re-
port, including an evaluation of any elections occur-
ring in East Timor and the refugee reintegration
process in East Timor;
(2)(A) in the initial report, a 3-year plan for
United States foreign assistance to East Timor in
accordance with section 4, prepared by the Adminis-
trator of the United States Agency for International
Development, which outlines the goals for United
States foreign assistance to East Timor during the
3-year period; and
(B) in each subsequent report, a description in
detail of the expenditure of United States bilateral
foreign assistance during the period covered by each
such report;
(3) a description of the activities undertaken in
East Timor by the International Bank for Recon-
struction and Development, the Asian Development
Bank, and other international financial institutions,
and an evaluation of the effectiveness of these activi-
ties;
(4) an assessment of—
(A) the status of United States trade and
investment relations with East Timor, including
a detailed analysis of any trade and investment-
related activity supported by the Overseas Pri-
vate Investment Corporation, the Export-Im-
port Bank of the United States, and the Trade
and Development Agency during the period of
time since the previous report; and
(B) the status of any negotiations with the
United Nations Transitional Administration for
East Timor (UNTAET) or East Timor to fa-
cilitate the operation of the United States trade
agencies in East Timor;
(5) the nature and extent of United States-East
Timor cultural, education, scientific, and academic
exchanges, both official and unofficial, and any
Peace Corps activities;
(6) a comprehensive study and report on local
agriculture in East Timor, emerging opportunities
for producing, processing, and exporting indigenous
agricultural products, and recommendations for ap-
propriate technical assistance from the United
States; and
(7) statistical data drawn from other sources on
economic growth, health, education, and distribution
of resources in East Timor.
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