H. R. 2606—37
or permanent international criminal tribunal or court: Provided
further, That funds made available for tribunals other than Yugo-
slavia or Rwanda shall be made available subject to the regular
notification procedures of the Committees on Appropriations.
LANDMINES
SEC. 553. Notwithstanding any other provision of law, demining
equipment available to the Agency for International Development
and the Department 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: Pro-
vided, That section 1365(c) of the National Defense Authorization
Act for Fiscal Year 1993 (Public Law 102–484; 22 U.S.C. 2778
note) is amended by striking ‘‘During the five-year period beginning
on October 23, 1992’’ and inserting ‘‘During the 11-year period
beginning on October 23, 1992’’.
RESTRICTIONS CONCERNING THE PALESTINIAN AUTHORITY
SEC. 554. None of the funds appropriated by this Act may
be obligated or expended to create in any part of Jerusalem a
new office of any department or agency of the United States Govern-
ment for the purpose of conducting official United States Govern-
ment business with the Palestinian Authority over Gaza and Jericho
or any successor Palestinian governing entity provided for in the
Israel-PLO Declaration of Principles: Provided, That this restriction
shall not apply to the acquisition of additional space for the existing
Consulate General in Jerusalem: Provided further, That meetings
between officers and employees of the United States and officials
of the Palestinian Authority, or any successor Palestinian governing
entity provided for in the Israel-PLO Declaration of Principles,
for the purpose of conducting official United States Government
business with such authority should continue to take place in loca-
tions 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. 555. None of the funds appropriated or otherwise made
available by this Act under the heading ‘‘International Military
Education and Training’’ or ‘‘Foreign Military Financing Program’’
for Informational Program activities may be obligated or expended
to pay for—
(1) alcoholic beverages;
(2) food (other than food provided at a military installation)
not provided in conjunction with Informational Program trips
where students do not stay at a military installation; or
(3) entertainment expenses for activities that are substan-
tially of a recreational character, including entrance fees at
sporting events and amusement parks.
H. R. 2606—38
COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES
SEC. 556. Direct costs associated with meeting a foreign cus-
tomer’s additional or unique requirements will continue to be allow-
able under contracts under section 22(d) of the Arms Export Control
Act. Loadings applicable to such direct costs shall be permitted
at the same rates applicable to procurement of like items purchased
by the Department of Defense for its own use.
SPECIAL DEBT RELIEF FOR THE POOREST
SEC. 557. (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 for a Latin
American country, to pay for purchases of United States agricul-
tural commodities guaranteed by the Commodity Credit Cor-
poration under export credit guarantee programs authorized
pursuant to section 5(f ) of the Commodity 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 exer-
cised only to implement multilateral official debt relief and
referendum agreements, commonly referred to as ‘‘Paris Club
Agreed Minutes’’.
(2) The authority provided by subsection (a) may be exer-
cised 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 exer-
cised 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 subsection (a) may
be exercised only with respect to a country whose government—
(1) does not have an excessive level of military expendi-
tures;
(2) has not repeatedly provided support for acts of inter-
national 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 inter-
nationally recognized human rights; and
(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 provided by sub-
section (a) may be used only with regard to funds appropriated
by this Act under the heading ‘‘Debt Restructuring’’.
H. R. 2606—39
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduction of debt
pursuant to subsection (a) shall not be considered assistance for
purposes of any provision of law limiting assistance to a country.
The authority provided by subsection (a) may be exercised notwith-
standing section 620(r) of the Foreign Assistance Act of 1961.
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES
SEC. 558. (a) LOANS ELIGIBLE
FOR SALE, REDUCTION, OR
CANCELLATION.—
(1) AUTHORITY
TO
SELL, REDUCE, OR
CANCEL
CERTAIN
LOANS.—Notwithstanding any other provision of law, the Presi-
dent 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 Assistance 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, reduce or cancel such loan or portion
thereof, only for the purpose of facilitating—
(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 additional
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 between
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.—Notwithstanding 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 admin-
istering part I of the Foreign Assistance Act of 1961 of pur-
chasers that the President has determined to be eligible, and
shall direct such agency to carry out the sale, reduction, or
cancellation of a loan pursuant to this section. Such agency
shall make an adjustment in its accounts to reflect the sale,
reduction, or cancellation.
(4) LIMITATION.—The authorities of this subsection shall
be available only to the extent that appropriations for the
cost of the modification, as defined in section 502 of the
Congressional Budget Act of 1974, are made in advance.
(b) DEPOSIT OF PROCEEDS.—The proceeds from the sale, reduc-
tion, or cancellation of any loan sold, reduced, or canceled pursuant
to this section shall be deposited in the United States Government
account or accounts established 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 satisfac-
tory to the President for using the loan for the purpose of engaging
H. R. 2606—40
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 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 provided by sub-
section (a) may be used only with regard to funds appropriated
by this Act under the heading ‘‘Debt Restructuring’’.
ASSISTANCE FOR HAITI
SEC. 559. (a) POLICY.—In providing assistance to Haiti, the
President should place a priority on the following areas:
(1) aggressive action to support the Haitian National Police,
including support for efforts by the Inspector General to purge
corrupt and politicized elements from the Haitian National
Police;
(2) steps to ensure that any elections undertaken in Haiti
with United States assistance are full, free, fair, transparent,
and democratic;
(3) support for a program designed to develop an indigenous
human rights monitoring capacity;
(4) steps to facilitate the continued privatization of state-
owned enterprises;
(5) a sustainable agricultural development program; and
(6) establishment of an economic development fund for
Haiti to provide long-term, low interest loans to United States
investors and businesses that have a demonstrated commitment
to, and expertise in, doing business in Haiti, in particular
those businesses present in Haiti prior to the 1994 United
Nations embargo.
(b) REPORT.—Beginning 6 months after the date of the enact-
ment of this Act, and 6 months thereafter until September 30,
2001, the President shall submit a report to the Committee on
Appropriations and the Committee on Foreign Relations of the
Senate and the Committee on Appropriations and the Committee
on International Relations of the House of Representatives with
regard to—
(1) the status of each of the governmental institutions
envisioned in the 1987 Haitian Constitution, including an
assessment of the extent to which officials in such institutions
hold their positions on the basis of a regular, constitutional
process;
(2) the status of the privatization (or placement under
long-term private management or concession) of the major
public entities, including a detailed assessment of the extent
to which the Government of Haiti has completed all required
incorporating documents, the transfer of assets, and the eviction
of unauthorized occupants from such facilities;
(3) the status of efforts to re-sign and implement the lapsed
bilateral Repatriation Agreement and an assessment of the
extent to which the Government of Haiti has been cooperating
with the United States in halting illegal emigration from Haiti;