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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 
Treasury shall consult with representatives of human 
rights organizations and all government agencies with rel-
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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. 
USER FEES 
SEC. 561. The Secretary of the Treasury shall in-
struct the United States Executive Director at each inter-
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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. 562. (a) Funds appropriated by this Act may 
be made available for assistance for the central Govern-
ment of Serbia after May 31, 2007, if the President has 
made the determination and certification contained in sub-
section (c). 
(b) After May 31, 2007, 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 Serbia and Monte-
negro subject to the conditions in subsection (c): Provided, 
That section 576 of the Foreign Operations, Export Fi-
nancing, and Related Programs Appropriations Act, 1997, 
as amended, shall not apply to the provision of loans and 
assistance to the Government of Serbia and Montenegro 
through international financial institutions. 
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(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 Serbia and Montenegro 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, including Ratko Mladic; 
(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. 
(d) This section shall not apply to Montenegro, 
Kosovo, humanitarian assistance or assistance to promote 
democracy. 
COMMUNITY-BASED POLICE ASSISTANCE 
SEC. 563. (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-
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ability of civilian police authority through training and 
technical assistance in human rights, the rule of law, stra-
tegic planning, and through assistance to foster civilian 
police roles that support democratic governance including 
assistance for programs to prevent conflict, respond to dis-
asters, address gender-based violence, and foster improved 
police relations with the communities they serve. 
(b) NOTIFICATION.—Assistance provided under sub-
section (a) shall be subject to prior consultation with, and 
the regular notification procedures of, the Committees on 
Appropriations. 
SPECIAL DEBT RELIEF FOR THE POOREST 
SEC. 564. (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; or 
(2) credits extended or guarantees issued under 
the Arms Export Control Act. 
(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 
the funds appropriated by this Act under the heading 
‘‘Debt Restructuring’’. 
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A re-
duction of debt pursuant to subsection (a) shall not be 
considered assistance for the purposes of any provision of 
law limiting assistance to a country. The authority pro-
vided 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. 565. (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 
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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— 
(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 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 develop-
ment, and child survival and other child devel-
opment, 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 
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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 direct such agency to carry out the sale, reduc-
tion, or cancellation of a loan pursuant to this sec-
tion. Such agency shall make adjustment in its ac-
counts 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 
pursuant to subsection (a)(1)(A) only to a purchaser who 
presents plans satisfactory to the President for using the 
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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 
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’’. 
BASIC EDUCATION 
SEC. 566. Of the funds appropriated by title II of 
this Act, not less than $550,000,000 shall be made avail-
able for basic education. 
RECONCILIATION PROGRAMS 
SEC. 567. Of the funds appropriated under the head-
ing ‘‘Economic Support Fund’’, not less than $15,000,000 
should be made available to support reconciliation pro-
grams and activities which bring together individuals of 
different ethnic, religious, and political backgrounds from 
areas of civil conflict and war. 
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