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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. 550. None of the funds appropriated or otherwise
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, including
entrance fees at sporting events and amusement
parks.
SPECIAL DEBT RELIEF FOR THE POOREST
SEC. 551. (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;
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(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 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 amend-
ed (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, commonly
referred to as ‘‘Paris Club Agreed Minutes’’.
(2) The authority provided by subsection (a)
may be exercised only in such amounts or to such ex-
tent 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
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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
(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 subsection (a) may be used only with regard to funds
appropriated by this Act under the heading ‘‘Debt Restruc-
turing’’.
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduc-
tion of debt pursuant to subsection (a) shall not be consid-
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ered assistance for purposes of any provision of law lim-
iting assistance to a country. The authority provided by
subsection (a) may be exercised notwithstanding 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. 552. (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 Jan-
uary 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-develop-
ment 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
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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 con-
servation and sustainable use of natural re-
sources with local community development, and
child survival and other child development, 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 ac-
cordance 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 the
President has determined to be eligible, and shall di-
rect such agency to carry out the sale, reduction, or
cancellation of a loan pursuant to this section. Such
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agency shall make an adjustment in its accounts to
reflect the sale, reduction, or cancellation.
(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 pur-
suant to subsection (a)(1)(A) only to a purchaser who pre-
sents 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 pursu-
ant 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.
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(e) AVAILABILITY OF FUNDS.—The authority provided
by subsection (a) may be used only with regard to funds
appropriated by this Act under the heading ‘‘Debt Restruc-
turing’’.
HAITI COAST GUARD
SEC. 553. 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: Provided, That the authority provided by this sec-
tion shall be subject to the regular notification procedures
of the Committees on Appropriations.
LIMITATION ON ASSISTANCE TO THE PALESTINIAN
AUTHORITY
SEC. 554. (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 providing
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 Presi-
dent pro tempore of the Senate that waiving such prohibi-
tion is important to the national security interests of the
United States.
(c) PERIOD OF APPLICATION OF WAIVER.—Any waiv-
er pursuant to subsection (b) shall be effective for no more
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than a period of 6 months at a time and shall not apply
beyond 12 months after the enactment of this Act.
LIMITATION ON ASSISTANCE TO SECURITY FORCES
SEC. 555. 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 evi-
dence 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 re-
sponsible members of the security forces unit to justice: Pro-
vided, 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 al-
leged 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 effective
measures to bring the responsible members of the security
forces to justice.
GREENHOUSE GAS EMISSIONS REPORT
SEC. 556. Not later than the date on which the Presi-
dent’s fiscal year 2003 budget request is submitted to Con-
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gress, the President shall submit a report to the Committees
on Appropriations describing in detail the following—
(1) all Federal agency obligations and expendi-
tures, domestic and international, for climate change
programs and activities in fiscal year 2002, including
an accounting of expenditures by agency with each
agency identifying climate change activities and asso-
ciated costs by line item as presented in the Presi-
dent’s Budget Appendix;
(2) all fiscal year 2001 expenditures and fiscal
year 2002 projected expenditures by the United States
Agency for International Development to assist devel-
oping countries and countries in transition in adopt-
ing and implementing policies to measure, monitor,
report, verify, and reduce greenhouse gas emissions,
and to meet their responsibilities under the Frame-
work Convention on Climate Change;
(3) all funds requested for fiscal year 2003 by the
United States Agency for International Development
to promote the measurement, monitoring, reporting,
verification, and reduction of greenhouse gas emis-
sions reductions, to promote the transfer and deploy-
ment of United States clean energy technologies and
carbon capture and sequestration measures, and to
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develop assessments of the vulnerability to impacts of
climate change and response strategies; and
(4) all fiscal year 2002 obligations and expendi-
tures by the United States Agency for International
Development for climate change programs and activi-
ties by country or central program and activity.
ZIMBABWE
SEC. 557. The Secretary of the Treasury shall instruct
the United States executive director to each international
financial institution to vote against any extension by the
respective institution of any loans, to the Government of
Zimbabwe, except to meet basic human needs or to promote
democracy, unless the Secretary of State determines and
certifies to the Committees on Appropriations that the rule
of law has been restored in Zimbabwe, including respect
for ownership and title to property, freedom of speech and
association.
CENTRAL AMERICA RELIEF AND RECONSTRUCTION
SEC. 558. Funds made available to the Comptroller
General pursuant to title I, chapter 4 of Public Law 106–
31, to monitor the provision of assistance to address the
effects of hurricanes in Central America and the Caribbean
and the earthquake in Colombia, shall also be available to
the Comptroller General to monitor earthquake relief and
reconstruction efforts in El Salvador.
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ENTERPRISE FUND RESTRICTIONS
SEC. 559. Prior to the distribution of any assets result-
ing 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 accordance
with the regular notification procedures of the Committees
on Appropriations, a plan for the distribution of the assets
of the Enterprise Fund.
CAMBODIA
SEC. 560. (a) The Secretary of the Treasury shall 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 Govern-
ment of Cambodia, except loans to meet basic human needs.
(b)(1) None of the funds appropriated by this Act may
be made available for assistance for the Central Government
of Cambodia unless the Secretary of State determines and
reports to the Committees on Appropriations that the Cen-
tral Government of Cambodia—
(A) is making significant progress in resolving
outstanding human rights cases, including the 1994
grenade attack against the Buddhist Liberal Demo-
cratic Party, and the 1997 grenade attack against the
Khmer Nation Party;
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(B) has held local elections that are deemed free
and fair by international and local election monitors;
and
(C) is making significant progress in the protec-
tion, management, and conservation of the environ-
ment and natural resources, including in the promul-
gation and enforcement of laws and policies to protect
forest resources.
(2) A determination by the Secretary of State under
paragraph (1) shall cease to be effective if it becomes known
to the Secretary that the Central Government of Cambodia
is no longer making significant progress under subpara-
graph (A) or (C).
(3) In the event the Secretary of State makes the deter-
mination under paragraph (1), assistance may be made
available to the Central Government of Cambodia only
through the regular notification procedures of the Commit-
tees on Appropriations.
(c) Notwithstanding subsection (b) of this section or
any other provision of law, funds appropriated by this Act
may be made available for assistance to the Government
of Cambodia’s Ministry of Women and Veteran’s Affairs to
combat human trafficking, subject to the regular notifica-
tion procedures of the Committees on Appropriations.