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(1) primarily for fostering relations outside of the Executive 
Branch; 
(2) principally for meals and events of a protocol nature; 
(3) not for employee-only events; and 
(4) do not include activities that are substantially of a 
recreational character. 
(b) None of the funds appropriated or otherwise made available 
by this Act under the headings ‘‘International Military Education 
and Training’’ or ‘‘Foreign Military Financing Program’’ for Informa-
tional Program activities or under the headings ‘‘Global Health 
Programs’’, ‘‘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 substan-
tially of a recreational character, including but not limited 
to entrance fees at sporting events, theatrical and musical 
productions, and amusement parks. 
PROHIBITION ON ASSISTANCE TO GOVERNMENTS SUPPORTING 
INTERNATIONAL TERRORISM 
SEC. 7021. (a) LETHAL MILITARY EQUIPMENT EXPORTS.— 
(1) None of the funds appropriated or otherwise made 
available by titles III through VI of 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 supports international terrorism for 
purposes of section 6(j) of the Export Administration Act of 
1979 as continued in effect pursuant to the International Emer-
gency Economic Powers Act: Provided, That the prohibition 
under this section with respect to a foreign government shall 
terminate 12 months after that government ceases to provide 
such military equipment: Provided further, That this section 
applies with respect to lethal military equipment provided 
under a contract entered into after October 1, 1997. 
(2) Assistance restricted by paragraph (1) or any other 
similar provision of law, may be furnished if the President 
determines that to do so is important to the national interests 
of the United States. 
(3) Whenever the President makes a determination pursu-
ant to paragraph (2), the President shall submit to the Commit-
tees on Appropriations a report with respect to the furnishing 
of such assistance, including a detailed explanation of the 
assistance to be provided, the estimated dollar amount of such 
assistance, and an explanation of how the assistance furthers 
United States national interests. 
(b) BILATERAL ASSISTANCE.— 
(1) Funds appropriated for bilateral assistance in titles 
III through VI of this Act and funds appropriated under any 
such title in prior Acts making appropriations for the Depart-
ment of State, foreign operations, and related programs, shall 
not be made available to any foreign government which the 
President determines— 
(A) grants sanctuary from prosecution to any individual 
or group which has committed an act of international ter-
rorism; 
(B) otherwise supports international terrorism; or
H. R. 3547—499 
(C) is controlled by an organization designated as a 
terrorist organization under section 219 of the Immigration 
and Nationality Act. 
(2) The President may waive the application of paragraph 
(1) to a government if the President determines that national 
security or humanitarian reasons justify such waiver: Provided, 
That the President shall publish each such waiver in the Fed-
eral Register and, at least 15 days before the waiver takes 
effect, shall notify the Committees on Appropriations of the 
waiver (including the justification for the waiver) in accordance 
with the regular notification procedures of the Committees 
on Appropriations. 
AUTHORIZATION REQUIREMENTS 
SEC. 7022. Funds appropriated by this Act, except funds appro-
priated under the heading ‘‘Trade and Development Agency’’, may 
be obligated and expended notwithstanding section 10 of Public 
Law 91–672, section 15 of the State Department Basic Authorities 
Act of 1956, section 313 of the Foreign Relations Authorization 
Act, Fiscal Years 1994 and 1995 (Public Law 103–236), and section 
504(a)(1) of the National Security Act of 1947 (50 U.S.C. 3094(a)(1)). 
DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY 
SEC. 7023. For the purpose of titles II through VI of this 
Act ‘‘program, project, and activity’’ shall be defined at the appro-
priations Act account level and shall include all appropriations 
and authorizations Acts funding directives, ceilings, and limitations 
with the exception that for the following accounts: ‘‘Economic Sup-
port Fund’’ and ‘‘Foreign Military Financing Program’’, ‘‘program, 
project, and activity’’ shall also be considered to include country, 
regional, and central program level funding within each such 
account; and for the development assistance accounts of the United 
States Agency for International Development, ‘‘program, project, 
and activity’’ shall also be considered to include central, country, 
regional, and program level funding, either as— 
(1) justified to the Congress; or 
(2) allocated by the Executive Branch in accordance with 
a report, to be provided to the Committees on Appropriations 
within 30 days of the enactment of this Act, as required by 
section 653(a) of the Foreign Assistance Act of 1961. 
AUTHORITIES FOR THE PEACE CORPS, INTER-AMERICAN FOUNDATION 
AND UNITED STATES AFRICAN DEVELOPMENT FOUNDATION 
SEC. 7024. Unless expressly provided to the contrary, provisions 
of this or any other Act, including provisions contained in prior 
Acts authorizing or making appropriations for the Department of 
State, foreign operations, and related programs, shall not be con-
strued to prohibit activities authorized by or conducted under the 
Peace Corps Act, the Inter-American Foundation Act or the African 
Development Foundation Act: Provided, That prior to conducting 
activities in a country for which assistance is prohibited, the agency 
shall consult with the Committees on Appropriations and report 
to such Committees within 15 days of taking such action.
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COMMERCE, TRADE AND SURPLUS COMMODITIES 
SEC. 7025. (a) None of the funds appropriated or made available 
pursuant to titles III through VI of this Act for direct assistance 
and none of the funds otherwise made available to the Export- 
Import Bank and the Overseas Private Investment Corporation 
shall be obligated or expended to finance any loan, any assistance 
or any other financial commitments for establishing or expanding 
production of any commodity for export by any country other than 
the United States, if the commodity is likely to be in surplus 
on world markets at the time the resulting productive capacity 
is expected to become operative and if the assistance will cause 
substantial injury to United States producers of the same, similar, 
or competing commodity: Provided, That such prohibition shall not 
apply to the Export-Import Bank if in the judgment of its Board 
of Directors the benefits to industry and employment in the United 
States are likely to outweigh the injury to United States producers 
of the same, similar, or competing commodity, and the Chairman 
of the Board so notifies the Committees on Appropriations: Provided 
further, That this subsection shall not prohibit— 
(1) activities in a country that is eligible for assistance 
from the International Development Association, is not eligible 
for assistance from the International Bank for Reconstruction 
and Development, and does not export on a consistent basis 
the agricultural commodity with respect to which assistance 
is furnished; or 
(2) activities in a country the President determines is recov-
ering from widespread conflict, a humanitarian crisis, or a 
complex emergency. 
(b) None of the funds appropriated by this or any other Act 
to carry out chapter 1 of part I of the Foreign Assistance Act 
of 1961 shall be available for any testing or breeding feasibility 
study, variety improvement or introduction, consultancy, publica-
tion, conference, or training in connection with the growth or 
production in a foreign country of an agricultural commodity for 
export which would compete with a similar commodity grown or 
produced in the United States: Provided, That this subsection shall 
not prohibit— 
(1) activities designed to increase food security in devel-
oping countries where such activities will not have a significant 
impact on the export of agricultural commodities of the United 
States; 
(2) research activities intended primarily to benefit Amer-
ican producers; 
(3) activities in a country that is eligible for assistance 
from the International Development Association, is not eligible 
for assistance from the International Bank for Reconstruction 
and Development, and does not export on a consistent basis 
the agricultural commodity with respect to which assistance 
is furnished; or 
(4) activities in a country the President determines is recov-
ering from widespread conflict, a humanitarian crisis, or a 
complex emergency. 
(c) The Secretary of the Treasury shall instruct the United 
States executive directors of the international financial institutions, 
as defined in section 7029(g) of this Act, to use the voice and
H. R. 3547—501 
vote of the United States to oppose any assistance by such institu-
tions, using funds appropriated or made available by this Act, 
for the production or extraction of any commodity or mineral for 
export, if it is in surplus on world markets and if the assistance 
will cause substantial injury to United States producers of the 
same, similar, or competing commodity. 
SEPARATE ACCOUNTS 
SEC. 7026. (a) SEPARATE ACCOUNTS FOR LOCAL CURRENCIES.— 
(1) If assistance is furnished to the government 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 generation of local currencies of that 
country, the Administrator of the United States Agency for 
International Development (USAID) shall— 
(A) require that local currencies be deposited in a 
separate account established by that government; 
(B) enter into an agreement with that government 
which sets forth— 
(i) the amount of the local currencies to be gen-
erated; and 
(ii) the terms and conditions under which the cur-
rencies so deposited may be utilized, consistent with 
this section; and 
(C) establish by agreement with that government the 
responsibilities of USAID and that government 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 of the Foreign Assistance Act of 1961 (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.—USAID shall take all 
necessary steps to ensure that the equivalent of the local cur-
rencies disbursed pursuant to subsection (a)(2)(A) from the 
separate account established pursuant to subsection (a)(1) are 
used for the purposes agreed upon pursuant to subsection (a)(2). 
(4) TERMINATION OF ASSISTANCE PROGRAMS.—Upon termi-
nation of assistance to a country under chapter 1 or 10 of 
part I or chapter 4 of part II of the Foreign Assistance Act 
of 1961 (as the case may be), any unencumbered balances 
of funds which remain in a separate account established pursu-
ant to subsection (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 USAID Administrator 
shall report on an annual basis as part of the justification 
documents submitted to the Committees on Appropriations on 
the use of local currencies for the administrative requirements