224
TITLE XXXI—DEFENSE AND
SECURITY ASSISTANCE
CHAPTER 1—MILITARY AND RELATED
ASSISTANCE
Subchapter A—Foreign Military Financing
Program
SEC. 3101. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for grant as-
sistance under section 23 of the Arms Export Control Act
(22 U.S.C. 2763) and for the subsidy cost, as defined in
section 502(5) of the Federal Credit Reform Act of 1990,
of direct loans under such section—
(1) $3,284,440,000 for fiscal year 1996; and
(2) $3,226,020,000 for fiscal year 1997.
SEC. 3102. ADMINISTRATIVE EXPENSES.
Of the amounts made available for fiscal years 1996
and 1997 for assistance under the ‘‘Foreign Military Fi-
nancing Program’’ account under section 23 of the Arms
Export Control Act (22 U.S.C. 2763), not more than
$24,020,000 for each such fiscal year may be made avail-
able for necessary expenses for the general costs of admin-
istration of military assistance and sales, including ex-
penses incurred in purchasing passenger motor vehicles
for replacement for use outside the United States.
225
SEC. 3103. ASSISTANCE FOR ISRAEL.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1996 and 1997 for assistance
under the ‘‘Foreign Military Financing Program’’ account
under section 23 of the Arms Export Control Act (22
U.S.C. 2763), not less than $1,800,000,000 for each such
fiscal year shall be available only for Israel.
(b) TERMS OF ASSISTANCE.—
(1) GRANT BASIS.—The assistance provided for
Israel for each fiscal year under subsection (a) shall
be provided on a grant basis.
(2) EXPEDITED DISBURSEMENT.—Such assist-
ance shall be disbursed—
(A) with respect to fiscal year 1996, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Fi-
nancing, and Related Programs Appropriations
Act, 1996, or by October 31, 1995, whichever
is later; and
(B) with respect to fiscal year 1997, not
later than 30 days after the date of the enact-
ment of the Foreign Operations, Export Fi-
nancing, and Related Programs Appropriations
Act, 1997, or by October 31, 1996, whichever
is later.
226
(3) ADVANCED WEAPONS SYSTEMS.—To the ex-
tent that the Government of Israel requests that
funds be used for such purposes, funds described in
subsection (a) shall, as agreed by the Government of
Israel and the Government of the United States, be
available for advanced weapons systems, of which
not less than $475,000,000 for each fiscal year shall
be available only for procurement in Israel of de-
fense articles and defense services, including re-
search and development.
(c) FOREIGN MILITARY SALES.—Section 21(h) of the
Arms Export Control Act (22 U.S.C. 2761(h)) is amend-
ed—
(1) in paragraph (1)(A), by inserting ‘‘or the
Government of Israel’’ after ‘‘North Atlantic Treaty
Organization’’; and
(2) in paragraph (2), by striking ‘‘or to any
member government of that Organization if that Or-
ganization or member government’’ and inserting ‘‘,
any member government of that Organization, or the
Government of Israel, if the Organization, member
government, or Government of Israel, as the case
may be,’’.
227
SEC. 3104. ASSISTANCE FOR EGYPT.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1996 and 1997 for assistance
under the ‘‘Foreign Military Financing Program’’ account
under section 23 of the Arms Export Control Act (22
U.S.C. 2763), not less than $1,300,000,000 for each such
fiscal year shall be available only for Egypt.
(b) TERMS OF ASSISTANCE.—The assistance pro-
vided for Egypt for each fiscal year under subsection (a)
shall be provided on a grant basis.
SEC. 3105. LOANS FOR GREECE AND TURKEY.
Of the amounts made available for fiscal year 1996
under section 23 of the Arms Export Control Act (22
U.S.C. 2763)—
(1) not more than $26,620,000 shall be made
available for the subsidy cost, as defined in section
502(5) of the Federal Credit Reform Act of 1990,
of direct loans for Greece; and
(2) not more than $37,800,000 shall be made
available for such subsidy cost of direct loans for
Turkey.
SEC. 3106. TERMS OF LOANS.
Section 31(c) of the Arms Export Control Act (22
U.S.C. 2771(c)) is amended to read as follows:
‘‘(c) Loans available under section 23 shall be pro-
vided at rates of interest that are not less than the current
228
average market yield on outstanding marketable obliga-
tions of the United States of comparable maturities.’’.
SEC. 3107. NONREPAYMENT OF GRANT ASSISTANCE.
Section 23 of the Arms Export Control Act (22
U.S.C. 2763) is amended by adding at the end the follow-
ing new subsection:
‘‘(f) Notwithstanding any other provision of this sec-
tion, the President shall not require repayment of any as-
sistance provided on a grant basis under this section to
a foreign country or international organization.’’.
SEC. 3108. ADDITIONAL REQUIREMENTS.
(a) AVAILABILITY OF FUNDS FOR PROCUREMENT OF
DEFENSE ARTICLES, SERVICES, AND DESIGN AND CON-
STRUCTION SERVICES
NOT SOLD
BY UNITED STATES
GOVERNMENT.—Section 23 of the Arms Export Control
Act (22 U.S.C. 2763), as amended by this Act, is further
amended by adding at the end the following new sub-
section:
‘‘(g) Funds made available to carry out this section
for a fiscal year may be made available to a foreign coun-
try or international organization for the purpose of financ-
ing the procurement of defense articles, defense services,
and design and construction services that are not sold by
the United States Government under this Act only—
229
‘‘(1) with respect to a country that is a member
country of the North Atlantic Treaty Organization,
a major non-NATO ally, or Jordan for which assist-
ance was justified under this section in the annual
congressional presentation documents under section
634 of the Foreign Assistance Act of 1961 for that
fiscal year; and
‘‘(2) if such country or international organiza-
tion enters into an agreement with the United States
Government that specifies the terms and conditions
under which such procurements shall be financed
with such funds.’’.
(b) AUDIT OF CERTAIN PRIVATE FIRMS.—Section 23
of such Act (22 U.S.C. 2763), as amended by this Act,
is further amended by adding at the end the following new
subsection:
‘‘(h) For each fiscal year, the Secretary of Defense,
as requested by the Director of the Defense Security As-
sistance 
Agency, 
shall 
conduct 
audits 
on 
a
nonreimbursable basis of private firms that have entered
into contracts with foreign governments under which de-
fense articles, defense services, or design and construction
services are to be procured by such firms for such govern-
ments from financing under this section.’’.
230
(c) PROHIBITION
ON USE
OF FUNDS
FOR
THE
TRANSPORT OF AIRCRAFT TO COMMERCIAL ARMS SALES
SHOWS.—Section 23 of such Act (22 U.S.C. 2763), as
amended by this Act, is further amended by adding at the
end the following new subsection:
‘‘(i) Funds made available to carry out this section
may not be used to facilitate the transport of aircraft to
commercial arms sales shows.’’.
(d) NOTIFICATION REQUIREMENT WITH RESPECT
TO CASH FLOW FINANCING.—Section 23 of such Act (22
U.S.C. 2763), as amended by this Act, is further amended
by adding at the end the following new subsection:
‘‘(j)(1) For each country and international organiza-
tion that has been approved for cash flow financing under
this section, any letter of offer and acceptance or other
purchase agreement, or any amendment thereto, for a pro-
curement of defense articles, defense services, or design
and construction services in excess of $100,000,000 that
is to be financed in whole or in part with funds made avail-
able under this Act or the Foreign Assistance Act of 1961
shall be submitted to the congressional committees speci-
fied in section 634A(a) of the Foreign Assistance Act of
1961 in accordance with the procedures applicable to
reprogramming notifications under that section.
231
‘‘(2) For purposes of this subsection, the term ‘cash
flow financing’ has the meaning given such term in the
second subsection (d) of section 25.’’.
(e) LIMITATIONS ON USE OF FUNDS FOR DIRECT
COMMERCIAL CONTRACTS.—Section 23 of such Act (22
U.S.C. 2763), as amended by this Act, is further amended
by adding at the end the following new subsection:
‘‘(k) Of the amounts made available for a fiscal year
to carry out this section, not more than $100,000,000 for
such fiscal year may be made available for countries other
than Israel and Egypt for the purpose of financing the
procurement of defense articles, defense services, and de-
sign and construction services that are not sold by the
United States Government under this Act.’’.
(f) USE OF FUNDS FOR DEMINING ACTIVITIES.—
Section 23 of such Act (22 U.S.C. 2763), as amended by
this Act, is further amended by adding at the end the fol-
lowing new subsection:
‘‘(l) Notwithstanding any other provision of law,
funds made available to carry out this section may be used
for demining activities, and may include activities imple-
mented through nongovernmental and international orga-
nizations.’’.
232
Subchapter B—Other Assistance
SEC. 3121. DEFENSE DRAWDOWN SPECIAL AUTHORITIES.
(a) UNFORESEEN EMERGENCY DRAWDOWN.—Sec-
tion 506(a)(1) of the Foreign Assistance Act of 1961 (22
U.S.C. 2318(a)(1)) is amended by striking ‘‘$75,000,000’’
and inserting ‘‘$100,000,000’’.
(b) ADDITIONAL DRAWDOWN.—Section 506 of such
Act (22 U.S.C. 2318) is amended—
(1) in subsection (a)(2)(A), by striking ‘‘defense
articles from the stocks’’ and all that follows and in-
serting the following: ‘‘articles and services from the
inventory and resources of any agency of the United
States Government and military education and
training from the Department of Defense, the Presi-
dent may direct the drawdown of such articles, serv-
ices, and military education and training—
‘‘(i) for the purposes and under the au-
thorities of—
‘‘(I) chapter 8 of part I (relating to
international narcotics control assistance);
‘‘(II) chapter 9 of part I (relating to
international disaster assistance); or
‘‘(III) the Migration and Refugee As-
sistance Act of 1962; or
233
‘‘(ii) for the purpose of providing such arti-
cles, services, and military education and train-
ing to Vietnam, Cambodia, and Laos as the
President determines are necessary—
‘‘(I) to support efforts to locate and
repatriate members of the United States
Armed Forces and civilians employed di-
rectly or indirectly by the United States
Government who remain unaccounted for
from the Vietnam War; and
‘‘(II) to ensure the safety of United
States Government personnel engaged in
such cooperative efforts and to support De-
partment of Defense-sponsored humani-
tarian projects associated with such ef-
forts.’’;
(2) 
in 
subsection 
(a)(2)(B), 
by 
striking
‘‘$75,000,000’’ and all that follows and inserting
‘‘$150,000,000 in any fiscal year of such articles,
services, and military education and training may be
provided pursuant to subparagraph (A) of this para-
graph—
‘‘(i) not more than $75,000,000 of which
may be provided from the drawdown from the
234
inventory and resources of the Department of
Defense;
‘‘(ii) not more than $75,000,000 of which
may be provided pursuant to clause (i)(I) of
such subparagraph; and
‘‘(iii) not more than $15,000,000 of which
may be provided to Vietnam, Cambodia, and
Laos pursuant to clause (ii) of such subpara-
graph.’’; and
(3) in subsection (b)(1), by adding at the end
the following: ‘‘In the case of drawdowns authorized
by 
subclauses 
(I) 
and 
(III) 
of 
subsection
(a)(2)(A)(i), notifications shall be provided to those
committees at least 15 days in advance in accord-
ance 
with 
the 
procedures 
applicable 
to
reprogramming notifications under section 634A.’’.
(c) NOTICE TO CONGRESS OF EXERCISE OF SPECIAL
AUTHORITIES.—Section 652 of such Act (22 U.S.C.
2411) is amended by striking ‘‘prior to the date’’ and in-
serting ‘‘before’’.
SEC. 3122. STOCKPILES OF DEFENSE ARTICLES.
(a) LIMITATION ON VALUE OF ADDITIONS.—Section
514(b)(1) of the Foreign Assistance Act of 1961 (22
U.S.C. 2321h(b)(1)) is amended by inserting ‘‘or in the
235
implementation of agreements with Israel’’ after ‘‘North
Atlantic Treaty Organization’’.
(b) ADDITIONS IN FISCAL YEARS 1996 AND 1997.—
Section 514(b)(2) of such Act (22 U.S.C. 2321h(b)(2))
is amended to read as follows:
‘‘(2)(A) The value of such additions to stockpiles of
defense articles in foreign countries shall not exceed
$50,000,000 for each of the fiscal years 1996 and 1997.
‘‘(B) Of the amount specified in subparagraph (A)
for each of the fiscal years 1996 and 1997, not more than
$40,000,000 may be made available for stockpiles in the
Republic of Korea and not more than $10,000,000 may
be made available for stockpiles in Thailand.’’.
(c) LOCATION OF STOCKPILES OF DEFENSE ARTI-
CLES.—Section 514(c) of such Act (22 U.S.C. 2321h(c))
is amended to read as follows:
‘‘(c) LOCATION OF STOCKPILES OF DEFENSE ARTI-
CLES.—
‘‘(1) LIMITATION.—Except as provided in para-
graph (2), no stockpile of defense articles may be lo-
cated outside the boundaries of a United States mili-
tary base or a military base used primarily by the
United States.
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not
apply with respect to stockpiles of defense articles
236
located in the Republic of Korea, Thailand, any
country that is a member of the North Atlantic
Treaty Organization, any country that is a major
non-NATO ally, or any other country the President
may designate. At least 15 days before designating
a country pursuant to the last clause of the preced-
ing sentence, the President shall notify the congres-
sional committees specified in section 634A(a) in ac-
cordance 
with 
the 
procedures 
applicable 
to
reprogramming notifications under that section.’’.
SEC. 3123. TRANSFER OF EXCESS DEFENSE ARTICLES.
(a) IN GENERAL.—Section 516 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2321j) is amended to read
as follows:
‘‘SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE AR-
TICLES.
‘‘(a) AUTHORIZATION.—The President is authorized
to transfer excess defense articles under this section to
countries for which receipt of such articles was justified
pursuant to the annual congressional presentation docu-
ments for military assistance programs, or for programs
under chapter 8 of part I of this Act, submitted under
section 634 of this Act, or for which receipt of such arti-
cles was separately justified, for the fiscal year in which
the transfer is authorized.
237
‘‘(b) LIMITATIONS ON TRANSFERS.—The President
may transfer excess defense articles under this section
only if—
‘‘(1) such articles are drawn from existing
stocks of the Department of Defense;
‘‘(2) funds available to the Department of De-
fense for the procurement of defense equipment are
not expended in connection with the transfer;
‘‘(3) the transfer of such articles will not have
an adverse impact on the military readiness of the
United States;
‘‘(4) with respect to a proposed transfer of such
articles on a grant basis, such a transfer is pref-
erable to a transfer on a sales basis, after taking
into account the potential proceeds from, and likeli-
hood of, such sales, and the comparative foreign pol-
icy benefits that may accrue to the United States as
the result of a transfer on either a grant or sales
basis;
‘‘(5) the President determines that the transfer
of such articles will not have an adverse impact on
the national technology and industrial base, and par-
ticularly, will not reduce the opportunities of entities
in the national technology and industrial base to sell
238
new or used equipment to the countries to which
such articles are transferred; and
‘‘(6) the transfer of such articles is consistent
with the policy framework for the Eastern Medi-
terranean established under section 620C of this
Act.
‘‘(c) TERMS OF TRANSFERS.—
‘‘(1) NO COST TO RECIPIENT COUNTRY.—Ex-
cess defense articles may be transferred under this
section without cost to the recipient country.
‘‘(2) PRIORITY.—Notwithstanding any other
provision of law, the delivery of excess defense arti-
cles under this section to member countries of the
North Atlantic Treaty Organization (NATO) on the
southern and southeastern flank of NATO and to
major non-NATO allies on such southern and south-
eastern flank shall be given priority to the maximum
extent feasible over the delivery of such excess de-
fense articles to other countries.
‘‘(d) WAIVER OF REQUIREMENT FOR REIMBURSE-
MENT OF DEPARTMENT OF DEFENSE EXPENSES.—Sec-
tion 632(d) shall not apply with respect to transfers of
excess defense articles (including transportation and relat-
ed costs) under this section.
‘‘(e) TRANSPORTATION AND RELATED COSTS.—
239
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), funds available to the Department of De-
fense may not be expended for crating, packing,
handling, and transportation of excess defense arti-
cles transferred under the authority of this section.
‘‘(2) EXCEPTION.—The President may provide
for the transportation of excess defense articles with-
out charge to a country for the costs of such trans-
portation if—
‘‘(A) it is determined that it is in the na-
tional interest of the United States to do so;
‘‘(B) the recipient is a developing country
receiving less than $10,000,000 of assistance
under chapter 5 of part II of this Act (relating
to international military education and train-
ing) or section 23 of the Arms Export Control
Act (22 U.S.C. 2763; relating to the Foreign
Military Financing program) in the fiscal year
in which the transportation is provided;
‘‘(C) the total weight of the transfer does
not exceed 25,000 pounds; and
‘‘(D) such transportation is accomplished
on a space available basis.
‘‘(f) ADVANCE NOTIFICATION
TO CONGRESS
FOR
TRANSFER OF CERTAIN EXCESS DEFENSE ARTICLES.—
240
‘‘(1) IN
GENERAL.—The President may not
transfer excess defense articles that are significant
military equipment (as defined in section 47(9) of
the Arms Export Control Act) or excess defense arti-
cles valued (in terms of original acquisition cost) at
$7,000,000 or more, under this section or under the
Arms Export Control Act (22 U.S.C. 2751 et seq.)
until 15 days after the date on which the President
has provided notice of the proposed transfer to the
congressional 
committees 
specified 
in 
section
634A(a) in accordance with procedures applicable to
reprogramming notifications under that section.
‘‘(2) CONTENTS.—Such notification shall in-
clude—
‘‘(A) a statement outlining the purposes
for which the article is being provided to the
country, including whether such article has
been previously provided to such country;
‘‘(B) an assessment of the impact of the
transfer on the military readiness of the United
States;
‘‘(C) an assessment of the impact of the
transfer on the national technology and indus-
trial base, and particularly, the impact on op-
portunities of entities in the national technology
241
and industrial base to sell new or used equip-
ment to the countries to which such articles are
to be transferred; and
‘‘(D) a statement describing the current
value of such article and the value of such arti-
cle at acquisition.
‘‘(g) AGGREGATE ANNUAL LIMITATION.—The aggre-
gate value of excess defense articles transferred to coun-
tries under this section in any fiscal year may not exceed
$350,000,000.
‘‘(h) 
CONGRESSIONAL
PRESENTATION
DOCU-
MENTS.—Documents described in subsection (a) justifying
the transfer of excess defense articles shall include an ex-
planation of the general purposes of providing excess de-
fense articles as well as a table which provides an aggre-
gate annual total of transfers of excess defense articles
in the preceding year by country in terms of offers and
actual deliveries and in terms of acquisition cost and cur-
rent value. Such table shall indicate whether such excess
defense articles were provided on a grant or sale basis.
‘‘(i) EXCESS COAST GUARD PROPERTY.—For pur-
poses of this section, the term ‘excess defense articles’
shall be deemed to include excess property of the Coast
Guard, and the term ‘Department of Defense’ shall be
242
deemed, with respect to such excess property, to include
the Coast Guard.’’.
(b) CONFORMING AMENDMENTS.—
(1) ARMS
EXPORT
CONTROL
ACT.—Section
21(k) of the Arms Export Control Act (22 U.S.C.
2761(k)) is amended by striking ‘‘the President
shall’’ and all that follows and inserting the follow-
ing: ‘‘the President shall determine that the sale of
such articles will not have an adverse impact on the
national technology and industrial base, and particu-
larly, will not reduce the opportunities of entities in
the national technology and industrial base to sell
new or used equipment to the countries to which
such articles are transferred.’’.
(2) REPEALS.—The following provisions of law
are hereby repealed:
(A) Section 502A of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2303).
(B) Sections 517 through 520 of the For-
eign Assistance Act of 1961 (22 U.S.C. 2321k
through 2321n).
(C) Section 31(d) of the Arms Export Con-
trol Act (22 U.S.C. 2771(d)).
243
SEC. 3124. NONLETHAL EXCESS DEFENSE ARTICLES FOR
ALBANIA.
Notwithstanding section 516(e) of the Foreign As-
sistance Act of 1961, during each of the fiscal years 1996
and 1997, funds available to the Department of Defense
may be expended for crating, packing, handling, and
transportation of nonlethal excess defense articles trans-
ferred under the authority of section 516 of such Act to
Albania.
CHAPTER 2—INTERNATIONAL MILITARY
EDUCATION AND TRAINING
SEC. 3141. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated $39,781,000
for each of the fiscal years 1996 and 1997 to carry out
chapter 5 of part II of the Foreign Assistance Act of 1961
(22 U.S.C. 2347 et seq.).
SEC. 3142. ASSISTANCE FOR INDONESIA.
Funds made available for fiscal years 1996 and 1997
to carry out chapter 5 of part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2347 et seq.) may be obligated
for Indonesia only for expanded military and education
training that meets the requirements of clauses (i)
through (iv) of the second sentence of section 541 of such
Act (22 U.S.C. 2347).
244
SEC. 3143. ADDITIONAL REQUIREMENTS.
(a) GENERAL AUTHORITY.—Section 541 of the For-
eign Assistance Act of 1961 (22 U.S.C. 2347) is amended
in the second sentence in the matter preceding clause (i)
by inserting ‘‘and individuals who are not members of the
government’’ after ‘‘legislators’’.
(b) TEST PILOT EXCHANGE TRAINING.—Section 544
of such Act (22 U.S.C. 2347c) is amended—
(1) by striking ‘‘In carrying out this chapter’’
and inserting ‘‘(a) In carrying out this chapter’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) The President may provide for the attendance
of foreign military and civilian defense personnel at test
pilot flight schools in the United States without charge,
and without charge to funds available to carry out this
chapter (notwithstanding section 632(d) of this Act), if
such attendance is pursuant to an agreement providing
for the exchange of students on a one-for-one basis each
fiscal year between those United States test pilot flight
schools and comparable flight test pilot schools of foreign
countries.’’.
(c) ASSISTANCE
FOR CERTAIN FOREIGN COUN-
TRIES.—Chapter 5 of part II of such Act (22 U.S.C. 2347
et seq.) is amended by adding at the end the following
new section:
245
‘‘SEC. 546. ASSISTANCE FOR CERTAIN FOREIGN COUN-
TRIES.
‘‘Of the amounts made available for a fiscal year for
assistance under this chapter, not more than $300,000 for
such fiscal year may be made available for assistance on
a grant basis for any high-income foreign country for mili-
tary education and training of military and related civilian
personnel of such country if such country agrees to pro-
vide for the transportation and living allowances of such
military and related civilian personnel.’’.
CHAPTER 3—ANTITERRORISM
ASSISTANCE
SEC. 3151. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated $20,000,000 for fiscal year 1996 and $25,000,000
for fiscal year 1997 to carry out chapter 8 of part II of
the Foreign Assistance Act of 1961 (22 U.S.C. 2349aa
et seq.).
(b) AVAILABILITY OF AMOUNTS.—Amounts author-
ized to be appropriated under subsection (a) are author-
ized to remain available until expended.
SEC. 3152. ANTITERRORISM TRAINING ASSISTANCE.
(a) IN GENERAL.—Section 571 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2349aa) is amended by strik-
ing ‘‘Subject to the provisions of this chapter’’ and insert-
ing ‘‘Notwithstanding any other provision of law that re-
246
stricts assistance to foreign countries (other than sections
502B and 620A of this Act)’’.
(b) LIMITATIONS.—Section 573 of such Act (22
U.S.C. 2349aa–2) is amended—
(1) in the heading, by striking ‘‘SPECIFIC AU-
THORITIES AND’’;
(2) by striking subsection (a);
(3) by redesignating subsections (b) through (f)
as subsections (a) through (e), respectively; and
(4) in subsection (c) (as redesignated)—
(A) by striking paragraphs (1) and (2);
(B) 
by 
redesignating 
paragraphs 
(3)
through (5) as paragraphs (1) through (3), re-
spectively; and
(C) by amending paragraph (2) (as redes-
ignated) to read as follows:
‘‘(2)(A) Except as provided in subparagraph (B),
funds made available to carry out this chapter shall not
be made available for the procurement of weapons and am-
munition.
‘‘(B) Subparagraph (A) shall not apply to small arms
and ammunition in categories I and III of the United
States Munitions List that are integrally and directly re-
lated to antiterrorism training provided under this chapter
if, at least 15 days before obligating those funds, the
247
President notifies the appropriate congressional commit-
tees specified in section 634A of this Act in accordance
with the procedures applicable to reprogramming notifica-
tions under such section.
‘‘(C) The value (in terms of original acquisition cost)
of all equipment and commodities provided under this
chapter in any fiscal year may not exceed 25 percent of
the funds made available to carry out this chapter for that
fiscal year.’’.
(c) ANNUAL REPORT.—Section 574 of such Act (22
U.S.C. 2349aa–3) is hereby repealed.
(d) TECHNICAL CORRECTIONS.—Section 575 (22
U.S.C. 2349aa–4) and section 576 (22 U.S.C. 2349aa–
5) of such Act are redesignated as sections 574 and 575,
respectively.
SEC. 3153. RESEARCH AND DEVELOPMENT EXPENSES.
Funds made available for fiscal years 1996 and 1997
to carry out chapter 8 of part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2349aa et seq.; relating to
antiterrorism assistance) may be made available to the
Technical Support Working Group of the Department of
State for research and development expenses related to
contraband detection technologies or for field demonstra-
tions of such technologies (whether such field demonstra-
248
tions take place in the United States or outside the United
States).
CHAPTER 4—NARCOTICS CONTROL
ASSISTANCE
SEC. 3161. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated $213,000,000 for each of the fiscal years 1996
and 1997 to carry out chapter 8 of part I of the Foreign
Assistance Act of 1961 (22 U.S.C. 2291 et seq.).
(b) AVAILABILITY OF AMOUNTS.—Amounts author-
ized to be appropriated under subsection (a) are author-
ized to remain available until expended.
SEC. 3162. ADDITIONAL REQUIREMENTS.
(a) POLICY AND GENERAL AUTHORITIES.—Section
481(a) of the Foreign Assistance Act (22 U.S.C. 2291(a))
is amended—
(1) in paragraph (1)—
(A) by redesignating subparagraphs (D)
through (F) as subparagraphs (E) through (G),
respectively; and
(B) by inserting after subparagraph (C)
the following new subparagraph:
‘‘(D) International criminal activities, particu-
larly international narcotics trafficking, money laun-
dering, and corruption, endanger political and eco-
249
nomic stability and democratic development, and as-
sistance for the prevention and suppression of inter-
national criminal activities should be a priority for
the United States.’’; and
(2) in paragraph (4), by adding before the pe-
riod at the end the following: ‘‘, or for other related
anticrime purposes’’.
(b) CONTRIBUTIONS
AND REIMBURSEMENT.—Sec-
tion 482(c) of that Act (22 U.S.C. 2291a(c)) is amend-
ed—
(1) by striking ‘‘CONTRIBUTION BY RECIPIENT
COUNTRY.—To’’ and inserting ‘‘CONTRIBUTIONS
AND REIMBURSEMENT.—(1) To’’; and
(2) by adding at the end the following new
paragraphs:
‘‘(2)(A) The President is authorized to accept con-
tributions from other foreign governments to carry out the
purposes of this chapter. Such contributions shall be de-
posited as an offsetting collection to the applicable appro-
priation account and may be used under the same terms
and conditions as funds appropriated pursuant to this
chapter.
‘‘(B) At the time of submission of the annual congres-
sional presentation documents required by section 634(a),
the President shall provide a detailed report on any con-
250
tributions received in the preceding fiscal year, the amount
of such contributions, and the purposes for which such
contributions were used.
‘‘(3) The President is authorized to provide assist-
ance under this chapter on a reimbursable basis. Such re-
imbursements shall be deposited as an offsetting collection
to the applicable appropriation and may be used under the
same terms and conditions as funds appropriated pursu-
ant to this chapter.’’.
(c) IMPLEMENTATION OF LAW ENFORCEMENT AS-
SISTANCE.—Section 482 of such Act (22 U.S.C. 2291a)
is amended by adding at the end the following new sub-
sections:
‘‘(f) TREATMENT OF FUNDS.—Funds transferred to
and consolidated with funds appropriated pursuant to this
chapter may be made available on such terms and condi-
tions as are applicable to funds appropriated pursuant to
this chapter. Funds so transferred or consolidated shall
be apportioned directly to the bureau within the Depart-
ment of State responsible for administering this chapter.
‘‘(g) EXCESS PROPERTY.—For purposes of this chap-
ter, the Secretary of State may use the authority of section
608, without regard to the restrictions of such section, to
receive nonlethal excess property from any agency of the
United States Government for the purpose of providing
251
such property to a foreign government under the same
terms and conditions as funds authorized to be appro-
priated for the purposes of this chapter.’’.
(d) REPORTING REQUIREMENTS.—(1) Section 489 of
such Act (22 U.S.C. 2291h) is amended—
(A) in the section heading, by striking ‘‘FOR
FISCAL YEAR 1995’’;
(B) by striking ‘‘(a) INTERNATIONAL NARCOT-
ICS CONTROL STRATEGY REPORT.—’’; and
(C) by striking subsections (b) and (c).
(2) Section 489A of such Act (22 U.S.C. 2291i) is
hereby repealed.
(e) CERTIFICATION REQUIREMENTS.—(1) Section
490 of such Act (22 U.S.C. 2291j) is amended—
(A) in the section heading by striking ‘‘FOR
FISCAL YEAR 1995’’; and
(B) by striking subsection (i).
(2) Section 490A of such Act (22 U.S.C. 2291k) is
hereby repealed.
SEC. 3163. NOTIFICATION REQUIREMENT.
(a) IN GENERAL.—The authority of section 1003(d)
of the National Narcotics Control Leadership Act of 1988
(21 U.S.C. 1502(d)) may be exercised with respect to
funds authorized to be appropriated pursuant to the For-
eign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) and
252
with respect to the personnel of the Department of State
only to the extent that the appropriate congressional com-
mittees have been notified 15 days in advance in accord-
ance with the reprogramming procedures applicable under
section 634A of that Act (22 U.S.C. 2394).
(b) DEFINITION.—For purposes of this section, the
term ‘‘appropriate congressional committees’’ means the
Committee on International Relations and the Committee
on Appropriations of the House of Representatives and the
Committee on Foreign Relations and the Committee on
Appropriations of the Senate.
SEC. 3164. WAIVER OF RESTRICTIONS FOR NARCOTICS-RE-
LATED ECONOMIC ASSISTANCE.
For each of the fiscal years 1996 and 1997, narcot-
ics-related assistance under part I of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2151 et seq.) may be pro-
vided notwithstanding any other provision of law that re-
stricts assistance to foreign countries (other than section
490(e) or section 502B of that Act (22 U.S.C. 2291j(e)
and 2304)) if, at least 15 days before obligating funds
for such assistance, the President notifies the appropriate
congressional committees (as defined in section 481(e) of
that Act (22 U.S.C. 2291(e))) in accordance with the pro-
cedures applicable to reprogramming notifications under
section 634A of that Act (22 U.S.C. 2394).
253
CHAPTER 5—NONPROLIFERATION AND
DISARMAMENT FUND
SEC. 3171. NONPROLIFERATION AND DISARMAMENT FUND.
(a) IN GENERAL.—There are authorized to be appro-
priated $25,000,000 for each of the fiscal years 1996 and
1997 to carry out bilateral and multilateral nonprolifera-
tion and disarmament activities for the independent states
of the former Soviet Union, countries other than the inde-
pendent states of the former Soviet Union, and inter-
national organizations under section 504 of the Freedom
for Russia and Emerging Eurasian Democracies and Open
Markets Support Act of 1992 (22 U.S.C. 5854).
(b) SUPERSEDES OTHER LAWS.—Funds made avail-
able for fiscal years 1996 and 1997 under the authority
of section 504 of the Freedom for Russia and Emerging
Eurasian Democracies and Open Markets Support Act of
1992 (22 U.S.C. 5854) may be used notwithstanding any
other provision of law.
(c) AVAILABILITY OF AMOUNTS.—Amounts author-
ized to be appropriated under subsection (a) are author-
ized to remain available until expended.
254
CHAPTER 6—OTHER PROVISIONS
SEC. 3181. STANDARDIZATION OF CONGRESSIONAL REVIEW
PROCEDURES FOR ARMS TRANSFERS.
(a) THIRD
COUNTRY
TRANSFERS
UNDER
FMS
SALES.—Section 3(d)(2) of the Arms Export Control Act
(22 U.S.C. 2753(d)(2)) is amended—
(1) in subparagraph (A), by striking ‘‘, as pro-
vided for in sections 36(b)(2) and 36(b)(3) of this
Act’’;
(2) in subparagraph (B), by striking ‘‘law’’ and
inserting ‘‘joint resolution’’; and
(3) by adding at the end the following:
‘‘(C) If the President states in his certification under
subparagraph (A) or (B) that an emergency exists which
requires that consent to the proposed transfer become ef-
fective immediately in the national security interests of the
United States, thus waiving the requirements of that sub-
paragraph, the President shall set forth in the certification
a detailed justification for his determination, including a
description of the emergency circumstances which neces-
sitate immediate consent to the transfer and a discussion
of the national security interests involved.
‘‘(D)(i) Any joint resolution under this paragraph
shall be considered in the Senate in accordance with the
255
provisions of section 601(b) of the International Security
Assistance and Arms Export Control Act of 1976.
‘‘(ii) For the purpose of expediting the consideration
and enactment of joint resolutions under this paragraph,
a motion to proceed to the consideration of any such joint
resolution after it has been reported by the appropriate
committee shall be treated as highly privileged in the
House of Representatives.’’.
(b) THIRD COUNTRY TRANSFERS UNDER COMMER-
CIAL SALES.—Section 3(d)(3) of such Act (22 U.S.C.
2753(d)(3)) is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’;
(2) in the first sentence—
(A) by striking ‘‘at least 30 calendar
days’’; and
(B) by striking ‘‘report’’ and inserting
‘‘certification’’; and
(3) by striking the last sentence and inserting
the following: ‘‘Such certification shall be submit-
ted—
‘‘(i) at least 15 calendar days before such con-
sent is given in the case of a transfer to a country
which is a member of the North Atlantic Treaty Or-
ganization or Australia, Japan, or New Zealand; and
256
‘‘(ii) at least 30 calendar days before such con-
sent is given in the case of a transfer to any other
country,
unless the President states in his certification that an
emergency exists which requires that consent to the pro-
posed transfer become effective immediately in the na-
tional security interests of the United States. If the Presi-
dent states in his certification that such an emergency ex-
ists (thus waiving the requirements of clause (i) or (ii),
as the case may be, and of subparagraph (B)) the Presi-
dent shall set forth in the certification a detailed justifica-
tion for his determination, including a description of the
emergency circumstances which necessitate that consent
to the proposed transfer become effective immediately and
a discussion of the national security interests involved.
‘‘(B) Consent to a transfer subject to subparagraph
(A) shall become effective after the end of the 15-day or
30-day period specified in subparagraph (A)(i) or (ii), as
the case may be, only if the Congress does not enact, with-
in that period, a joint resolution prohibiting the proposed
transfer.
‘‘(C)(i) Any joint resolution under this paragraph
shall be considered in the Senate in accordance with the
provisions of section 601(b) of the International Security
Assistance and Arms Export Control Act of 1976.
257
‘‘(ii) For the purpose of expediting the consideration
and enactment of joint resolutions under this paragraph,
a motion to proceed to the consideration of any such joint
resolution after it has been reported by the appropriate
committee shall be treated as highly privileged in the
House of Representatives.’’.
(c) COMMERCIAL SALES.—Section 36(c)(2) of such
Act (22 U.S.C. 2753(c)(2)) is amended by amending sub-
paragraphs (A) and (B) to read as follows:
‘‘(A) in the case of a license for an export to
the North Atlantic Treaty Organization, any mem-
ber country of that Organization or Australia,
Japan, or New Zealand, shall not be issued until at
least 15 calendar days after the Congress receives
such certification, and shall not be issued then if the
Congress, within that 15-day period, enacts a joint
resolution prohibiting the proposed export; and
‘‘(B) in the case of any other license, shall not
be issued until at least 30 calendar days after the
Congress receives such certification, and shall not be
issued then if the Congress, within that 30-day pe-
riod, enacts a joint resolution prohibiting the pro-
posed export.’’.
258
(d) COMMERCIAL MANUFACTURING AGREEMENTS.—
Section 36(d) of such Act (22 U.S.C. 2753(d)) is amend-
ed—
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’;
(2) by striking ‘‘for or in a country not a mem-
ber of the North Atlantic Treaty Organization’’; and
(3) by adding at the end the following:
‘‘(2) A certification under this subsection shall be
submitted—
‘‘(A) at least 15 days before approval is given
in the case of an agreement for or in a country
which is a member of the North Atlantic Treaty Or-
ganization or Australia, Japan, or New Zealand; and
‘‘(B) at least 30 days before approval is given
in the case of an agreement for or in any other
country;
unless the President states in his certification that an
emergency exists which requires the immediate approval
of the agreement in the national security interests of the
United States.
‘‘(3) If the President states in his certification that
an emergency exists which requires the immediate ap-
proval of the agreement in the national security interests
of the United States, thus waiving the requirements of
paragraph (4), he shall set forth in the certification a de-
259
tailed justification for his determination, including a de-
scription of the emergency circumstances which neces-
sitate the immediate approval of the agreement and a dis-
cussion of the national security interests involved.
‘‘(4) Approval for an agreement subject to paragraph
(1) may not be given under section 38 if the Congress,
within the 15-day or 30-day period specified in paragraph
(2)(A) or (B), as the case may be, enacts a joint resolution
prohibiting such approval.
‘‘(5)(A) Any joint resolution under paragraph (4)
shall be considered in the Senate in accordance with the
provisions of section 601(b) of the International Security
Assistance and Arms Export Control Act of 1976.
‘‘(B) For the purpose of expediting the consideration
and enactment of joint resolutions under paragraph (4),
a motion to proceed to the consideration of any such joint
resolution after it has been reported by the appropriate
committee shall be treated as highly privileged in the
House of Representatives.’’.
(e) GOVERNMENT-TO-GOVERNMENT LEASES.—
(1) CONGRESSIONAL REVIEW PERIOD.—Section
62 of such Act (22 U.S.C. 2796a) is amended—
(A) in subsection (a), by striking ‘‘Not less
than 30 days before’’ and inserting ‘‘Before’’;
(B) in subsection (b)—
260
(i) by striking ‘‘determines, and im-
mediately reports to the Congress’’ and in-
serting ‘‘states in his certification’’; and
(ii) by adding at the end of the sub-
section the following: ‘‘If the President
states in his certification that such an
emergency exists, he shall set forth in the
certification a detailed justification for his
determination, including a description of
the emergency circumstances which neces-
sitate that the lease be entered into imme-
diately and a discussion of the national se-
curity interests involved.’’; and
(C) by adding at the end of the section the
following:
‘‘(c) The certification required by subsection (a) shall
be transmitted—
‘‘(1) not less than 15 calendar days before the
agreement is entered into or renewed in the case of
an agreement with the North Atlantic Treaty Orga-
nization, any member country of that Organization
or Australia, Japan, or New Zealand; and
‘‘(2) not less than 30 calendar days before the
agreement is entered into or renewed in the case of
261
an agreement with any other organization or coun-
try.’’.
(2) CONGRESSIONAL
DISAPPROVAL.—Section
63(a) of such Act (22 U.S.C. 2796b(a)) is amend-
ed—
(A) by striking ‘‘(a)(1)’’ and inserting
‘‘(a)’’;
(B) by striking out the ‘‘30 calendar days
after receiving the certification with respect to
that proposed agreement pursuant to section
62(a),’’ and inserting in lieu thereof ‘‘the 15-
day or 30-day period specified in section 62(c)
(1) or (2), as the case may be,’’; and
(C) by striking paragraph (2).
(f) EFFECTIVE DATE.—The amendments made by
this section apply with respect to certifications required
to be submitted on or after the date of the enactment of
this Act.
SEC. 3182. STANDARDIZATION OF THIRD COUNTRY TRANS-
FERS OF DEFENSE ARTICLES.
Section 3 of the Arms Export Control Act (22 U.S.C.
2753) is amended by inserting after subsection (a) the fol-
lowing new subsection:
‘‘(b) The consent of the President under paragraph
(2) of subsection (a) or under paragraph (1) of section
262
505(a) of the Foreign Assistance Act of 1961 (as it relates
to subparagraph (B) of such paragraph) shall not be re-
quired for the transfer by a foreign country or inter-
national organization of defense articles sold by the United
States under this Act if—
‘‘(1) such articles constitute components incor-
porated into foreign defense articles;
‘‘(2) the recipient is the government of a mem-
ber country of the North Atlantic Treaty Organiza-
tion, the Government of Australia, the Government
of Japan, or the Government of New Zealand;
‘‘(3) the United States-origin components are
not—
‘‘(A) significant military equipment (as de-
fined in section 47(9));
‘‘(B) defense articles for which notification
to Congress is required under section 36(b);
and
‘‘(C) identified by regulation as Missile
Technology Control Regime items; and
‘‘(4) the foreign country or international orga-
nization provides notification of the transfer of the
defense articles to the United States Government
not later than 30 days after the date of such trans-
fer.’’.
263
SEC. 3183. INCREASED STANDARDIZATION, RATIONALIZA-
TION, AND INTEROPERABILITY OF ASSIST-
ANCE AND SALES PROGRAMS.
Paragraph (6) of section 515(a) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2321i(a)(6)) is amended
by striking ‘‘among members of the North Atlantic Treaty
Organization and with the Armed Forces of Japan, Aus-
tralia, and New Zealand’’.
SEC. 3184. REPEAL OF PRICE AND AVAILABILITY REPORT-
ING REQUIREMENT RELATING TO PROPOSED
SALE OF DEFENSE ARTICLES AND SERVICES.
(a) IN GENERAL.—Section 28 of the Arms Export
Control Act (22 U.S.C. 2768) is hereby repealed.
(b) CONFORMING AMENDMENT.—Section 36(b) of
such Act (22 U.S.C. 2776(b)) is amended by striking
paragraph (4) of such section.
SEC. 3185. DEFINITION OF SIGNIFICANT MILITARY EQUIP-
MENT.
Section 47 of the Arms Export Control Act (22
U.S.C. 2794) is amended—
(1) in paragraph (7), by striking ‘‘and’’ at the
end;
(2) in paragraph (8), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
264
‘‘(9) ‘significant military equipment’ means articles—
‘‘(A) for which special export controls are war-
ranted because of the capacity of such articles for
substantial military utility or capability; and
‘‘(B) identified on the United States Munitions
List.’’.
SEC. 3186. REQUIREMENTS RELATING TO THE SPECIAL DE-
FENSE ACQUISITION FUND.
(a) ELIMINATION OF ANNUAL REPORT.—
(1) IN GENERAL.—Section 53 of the Arms Ex-
port Control Act (22 U.S.C. 2795b) is hereby re-
pealed.
(2) 
CONFORMING
AMENDMENT.—Section
51(a)(4) of such Act (22 U.S.C. 2795(a)(4)) is
amended—
(A) by striking ‘‘(a)’’; and
(B) by striking subparagraph (B).
(b) RETURN OF CERTAIN AMOUNTS IN FUND TO THE
TREASURY.—During fiscal year 1996 the President shall
return $6,281,000 to the miscellaneous receipts account
of the Treasury from collections into the Special Defense
Acquisition Fund pursuant to section 51(b) of the Arms
Export Control Act in addition to the amount of such col-
lections to be returned for such fiscal year as indicated
265
in the President’s budget of the United States Govern-
ment for fiscal year 1996.
SEC. 3187. COST OF LEASED DEFENSE ARTICLES THAT
HAVE BEEN LOST OR DESTROYED.
Section 61(a)(4) of the Arms Export Control Act (22
U.S.C. 2796(a)(4)) is amended by striking ‘‘and the re-
placement cost’’ and all that follows and inserting the fol-
lowing: ‘‘and, if the articles are lost or destroyed while
leased—
‘‘(A) in the event the United States in-
tends to replace the articles lost or destroyed,
the replacement cost (less any depreciation in
the value) of the articles; or
‘‘(B) in the event the United States does
not intend to replace the articles lost or de-
stroyed, an amount not less than the actual
value (less any depreciation in the value) speci-
fied in the lease agreement.’’.
SEC. 3188. DESIGNATION OF MAJOR NON-NATO ALLIES.
(a) DESIGNATION.—
(1) NOTICE TO CONGRESS.—Chapter 2 of part
II of the Foreign Assistance Act of 1961 (22 U.S.C.
2311 et seq.), as amended by this Act, is further
amended by adding at the end the following new sec-
tion:
266
‘‘SEC. 517. DESIGNATION OF MAJOR NON-NATO ALLIES.
‘‘(a) NOTICE TO CONGRESS.—The President shall no-
tify the Congress in writing at least 30 days before—
‘‘(1) designating a country as a major non-
NATO ally for purposes of this Act and the Arms
Export Control Act (22 U.S.C. 2751 et seq.); or
‘‘(2) terminating such a designation.
‘‘(b) INITIAL DESIGNATIONS.—Australia, Egypt, Is-
rael, Japan, the Republic of Korea, and New Zealand shall
be deemed to have been so designated by the President
as of the effective date of this section, and the President
is not required to notify the Congress of such designation
of those countries.’’.
(2) DEFINITION.—Section 644 of such Act (22
U.S.C. 2403) is amended by adding at the end the
following:
‘‘(q) ‘Major non-NATO ally’ means a country which
is designated in accordance with section 517 as a major
non-NATO ally for purposes of this Act and the Arms Ex-
port Control Act (22 U.S.C. 2751 et seq.).’’.
(3) EXISTING DEFINITIONS.—(A) The last sen-
tence of section 21(g) of the Arms Export Control
Act (22 U.S.C. 2761(g)) is repealed.
(B) Section 65(d) of such Act is amended—
(i) by striking ‘‘or major non-NATO’’; and
267
(ii) by striking out ‘‘or a’’ and all that fol-
lows through ‘‘Code’’.
(b) COOPERATIVE TRAINING AGREEMENTS.—Section
21(g) of the Arms Export Control Act (22 U.S.C.
2761(g)) is amended in the first sentence by striking
‘‘similar agreements’’ and all that follows through ‘‘other
countries’’ and inserting ‘‘similar agreements with coun-
tries’’.
SEC. 3189. CERTIFICATION THRESHOLDS.
(a) INCREASE IN DOLLAR THRESHOLDS.—The Arms
Export Control Act (22 U.S.C. 2751 et seq.) is amended—
(1) in section 3(d) (22 U.S.C. 2753(d))—
(A) in paragraphs (1) and (3), by striking
‘‘$14,000,000’’ each place it appears and in-
serting ‘‘$25,000,000’’; and
(B) in paragraphs (1) and (3), by striking
‘‘$50,000,000’’ each place it appears and in-
serting ‘‘$75,000,000’’;
(2) in section 36 (22 U.S.C. 2776)—
(A) in subsections (b)(1), (b)(5)(C), and
(c)(1), by striking ‘‘$14,000,000’’ each place it
appears and inserting ‘‘$25,000,000’’;
(B) in subsections (b)(1), (b)(5)(C), and
(c)(1), by striking ‘‘$50,000,000’’ each place it
appears and inserting ‘‘$75,000,000’’; and
268
(C) in subsections (b)(1) and (b)(5)(C), by
striking ‘‘$200,000,000’’ each place it appears
and inserting ‘‘$300,000,000’’; and
(3) in section 63(a) (22 U.S.C. 2796b(a))—
(A) by striking ‘‘$14,000,000’’ and insert-
ing ‘‘$25,000,000’’; and
(B) by striking ‘‘$50,000,000’’ and insert-
ing ‘‘$75,000,000’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) apply with respect to certifications submit-
ted on or after the date of the enactment of this Act.
SEC. 3190. COMPETITIVE PRICING FOR SALES OF DEFENSE
ARTICLES AND SERVICES.
(a) COSTING BASIS.—Section 22 of the Arms Export
Control Act (22 U.S.C. 2762) is amended by adding at
the end the following:
‘‘(d) COMPETITIVE
PRICING.—Procurement con-
tracts made in implementation of sales under this section
for defense articles and defense services wholly paid from
funds made available on a nonrepayable basis shall be
priced on the same costing basis with regard to profit,
overhead, independent research and development, bid and
proposal, and other costing elements, as is applicable to
procurements of like items purchased by the Department
of Defense for its own use.’’.
269
(b) EFFECTIVE DATE AND IMPLEMENTING REGULA-
TIONS.—Section 22(d) of the Arms Export Control Act,
as added by subsection (a)—
(1) shall take effect on the 60th day following
the date of the enactment of this Act;
(2) shall be applicable only to contracts made in
implementation of sales made after such effective
date; and
(3) shall be implemented by revised procure-
ment regulations, which shall be issued prior to such
effective date.
SEC. 3191. DEPLETED URANIUM AMMUNITION.
Chapter 1 of part III of the Foreign Assistance Act
of 1961 (22 U.S.C. 2370 et seq.), as amended by this Act,
is further amended by adding at the end the following new
section:
‘‘SEC. 620H. DEPLETED URANIUM AMMUNITION.
‘‘(a) PROHIBITION.—Except as provided in sub-
section (b), none of the funds made available to carry out
this Act or any other Act may be made available to facili-
tate in any way the sale of M–833 antitank shells or any
comparable antitank shells containing a depleted uranium
penetrating component to any country other than—
‘‘(1) a country that is a member of the North
Atlantic Treaty Organization;
270
‘‘(2) a country that has been designated as a
major non-NATO ally (as defined in section 644(q));
or
‘‘(3) Taiwan.
‘‘(b) EXCEPTION.—The prohibition contained in sub-
section (a) shall not apply with respect to the use of funds
to facilitate the sale of antitank shells to a country if the
President determines that to do so is in the national secu-
rity interest of the United States.’’.
SEC. 3192. END-USE MONITORING OF DEFENSE ARTICLES
AND DEFENSE SERVICES.
(a) IN GENERAL.—The Arms Export Control Act (22
U.S.C.2751 et seq.) is amended by inserting after chapter
3 the following new chapter:
‘‘CHAPTER 3A—END-USE MONITORING OF
DEFENSE ARTICLES AND DEFENSE
SERVICES
‘‘SEC. 40A. END-USE MONITORING OF DEFENSE ARTICLES
AND DEFENSE SERVICES.
‘‘(a) ESTABLISHMENT OF MONITORING PROGRAM.—
‘‘(1) IN
GENERAL.—In order to improve ac-
countability with respect to defense articles and de-
fense services sold, leased, or exported under this
Act or the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.), the Secretary of State shall es-
271
tablish a program which provides for the end-use
monitoring of such articles and services.
‘‘(2) REQUIREMENTS OF PROGRAM.—To the ex-
tent practicable, such program—
‘‘(A) shall provide for the end-use monitor-
ing of defense articles and defense services in
accordance with the standards that apply for
identifying high-risk exports for regular end-use
verification developed under section 38(g)(7) of
this Act (commonly referred to as the ‘Blue
Lantern’ program); and
‘‘(B) shall be designed to provide reason-
able assurance that—
‘‘(i) the recipient is complying with
the requirements imposed by the United
States Government with respect to use,
transfers, and security of defense articles
and defense services; and
‘‘(ii) such articles and services are
being used for the purposes for which they
are provided.
‘‘(b) CONDUCT OF PROGRAM.—In carrying out the
program established under subsection (a), the Secretary
shall ensure that the program—
272
‘‘(1) provides for the end-use verification of de-
fense articles and defense services that incorporate
sensitive technology, defense articles and defense
services that are particularly vulnerable to diversion
or other misuse, or defense articles or defense serv-
ices whose diversion or other misuse could have sig-
nificant consequences; and
‘‘(2) prevents the diversion (through reverse en-
gineering or other means) of technology incorporated
in defense articles.
‘‘(c) MONITORING RESPONSIBILITIES.—
‘‘(1) IN GENERAL.—Pursuant to subsection (a),
sections 3 and 38 of this Act, and sections 505, 622,
and 623 of the Foreign Assistance Act of 1961, the
Secretary of State, in consultation with the Sec-
retary of Defense and officials of appropriate other
Federal agencies, shall provide for the monitoring of
defense articles and defense services described in
subsection (a).
‘‘(2) ADDITIONAL PERSONNEL.—Upon the re-
quest of the Secretary of State, the Secretary of De-
fense or the Secretary of the Treasury, as the case
may be, shall provide to the agency primarily re-
sponsible for the licensing of exports under this sec-
tion, on a nonreimbursable basis, personnel with ap-
273
propriate expertise to assist in the end-use monitor-
ing and enforcement functions under this section
and section 38 of this Act.
‘‘(d) REPORT
TO CONGRESS.—Not later than 6
months after the date of the enactment of the Foreign
Aid Reduction Act of 1995, and annually thereafter as a
part of the annual congressional presentation documents
submitted under section 634 of the Foreign Assistance Act
of 1961, the President shall transmit to the Congress a
report describing the actions taken to implement this sec-
tion.
‘‘(e) THIRD COUNTRY TRANSFERS.—For purposes of
this section, defense articles and defense services sold,
leased, or exported under this Act or the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2151 et seq.) includes de-
fense articles and defense services that are transferred to
a third country or other third party.’’.
(b) EFFECTIVE DATES.—Section 40A of the Arms
Export Control Act, as added by subsection (a), applies
with respect to defense articles and defense services pro-
vided before or after the date of the enactment of this
Act.
274
SEC. 3193. BROKERING ACTIVITIES RELATING TO COMMER-
CIAL SALES OF DEFENSE ARTICLES AND
SERVICES.
(a) IN GENERAL.—Section 38(b)(1)(A) of the Arms
Export Control Act (22 U.S.C. 2778(b)(1)(A)) is amend-
ed—
(1) in the first sentence, by striking ‘‘As pre-
scribed in regulations’’ and inserting ‘‘(i) As pre-
scribed in regulations’’; and
(2) by adding at the end the following new
clause:
‘‘(ii)(I) As prescribed in regulations issued under this
section, every person (other than an officer or employee
of the United States Government acting in official capac-
ity) who engages in the business of brokering activities
with respect to the manufacture, export, import, or trans-
fer of any defense article or defense service designated by
the President under subsection (a)(1), or in the business
of brokering activities with respect to the manufacture, ex-
port, import, or transfer of any foreign defense article or
defense service (as defined in subclause (IV)), shall reg-
ister with the United States Government agency charged
with the administration of this section, and shall pay a
registration fee which shall be prescribed by such regula-
tions.
275
‘‘(II) Such brokering activities shall include the fi-
nancing, transportation, freight forwarding, or the taking
of any other action that facilitates the manufacture, ex-
port, or import of a defense article or defense service.
‘‘(III) No person may engage in the business of
brokering activities without a license, issued in accordance
with this Act, except that no license shall be required for
such activities undertaken by or for an agency of the Unit-
ed States Government—
‘‘(aa) for official use by an agency of the Unit-
ed States Government; or
‘‘(bb) for carrying out any foreign assistance or
sales program authorized by law and subject to the
control of the President by other means.
‘‘(IV) For purposes of this clause, the term ‘foreign
defense article or defense service’ includes any non-United
States defense article or defense service of a nature de-
scribed on the United States Munitions List regardless of
whether such article or service is of United States origin
or whether such article or service contains United States
origin components.’’.
(b) EFFECTIVE DATE.—Section 38(b)(1)(A)(ii) of
the Arms Export Control Act, as added by subsection (a),
shall apply with respect to brokering activities engaged in
on or after the date of the enactment of this Act.
276
SEC. 3194. RETURN AND EXCHANGES OF DEFENSE ARTI-
CLES PREVIOUSLY TRANSFERRED PURSUANT
TO THE ARMS EXPORT CONTROL ACT.
(a) REPAIR OF DEFENSE ARTICLES.—Section 21 of
the Arms Export Control Act (22 U.S.C. 2761) is amend-
ed by adding at the end the following new subsection:
‘‘(l) AUTHORITY.—
‘‘(1) IN GENERAL.—The President may acquire
a repairable defense article from a foreign country
or international organization, if such defense arti-
cle—
‘‘(A) previously was transferred to such
country or organization under this Act;
‘‘(B) is not an end item; and
‘‘(C) will be exchanged for a defense article
of the same type that is in the stocks of the De-
partment of Defense.
‘‘(2) LIMITATION.—The President may exercise
the authority provided in paragraph (1) only to the
extent that the Department of Defense—
‘‘(A)(i) has a requirement for the defense
article being returned; and
‘‘(ii) has available sufficient funds author-
ized and appropriated for such purpose; or
‘‘(B)(i) is accepting the return of the de-
fense article for subsequent transfer to another
277
foreign government or international organiza-
tion pursuant to a letter of offer and acceptance
implemented in accordance with this Act; and
‘‘(ii) has available sufficient funds provided
by or on behalf of such other foreign govern-
ment or international organization pursuant to
a letter of offer and acceptance implemented in
accordance with this Act.
‘‘(3) REQUIREMENT.—(A) The foreign govern-
ment or international organization receiving a new
or repaired defense article in exchange for a repair-
able defense article pursuant to paragraph (1) shall,
upon the acceptance by the United States Govern-
ment of the repairable defense article being re-
turned, be charged the total cost associated with the
repair and replacement transaction.
‘‘(B) The total cost charged pursuant to sub-
paragraph (A) shall be the same as that charged the
United States Armed Forces for a similar repair and
replacement transaction, plus an administrative sur-
charge in accordance with subsection (e)(1)(A) of
this section.
‘‘(4) RELATIONSHIP TO CERTAIN OTHER PROVI-
SIONS OF LAW.—The authority of the President to
accept the return of a repairable defense article as
278
provided in subsection (a) shall not be subject to
chapter 137 of title 10, United States Code, or any
other provision of law relating to the conclusion of
contracts.’’.
(b) RETURN OF DEFENSE ARTICLES.—Section 21 of
such Act (22 U.S.C. 2761), as amended by this Act, is
further amended by adding at the end the following new
subsection:
‘‘(m) AUTHORITY.—
‘‘(1) IN GENERAL.—The President may accept
the return of a defense article from a foreign coun-
try or international organization, if such defense ar-
ticle—
‘‘(A) previously was transferred to such
country or organization under this Act;
‘‘(B) is not significant military equipment
(as defined in section 47(9) of this Act); and
‘‘(C) is in fully functioning condition with-
out need of repair or rehabilitation.
‘‘(2) LIMITATION.—The President may exercise
the authority provided in paragraph (1) only to the
extent that the Department of Defense—
‘‘(A)(i) has a requirement for the defense
article being returned; and
279
‘‘(ii) has available sufficient funds author-
ized and appropriated for such purpose; or
‘‘(B)(i) is accepting the return of the de-
fense article for subsequent transfer to another
foreign government or international organiza-
tion pursuant to a letter of offer and acceptance
implemented in accordance with this Act; and
‘‘(ii) has available sufficient funds provided
by or on behalf of such other foreign govern-
ment or international organization pursuant to
a letter of offer and acceptance implemented in
accordance with this Act.
‘‘(3) CONDITION.—Upon acquisition and ac-
ceptance by the United States Government of a de-
fense article under paragraph (1), the appropriate
Foreign Military Sales account of the provider shall
be credited to reflect the transaction.
‘‘(4) RELATIONSHIP TO CERTAIN OTHER PROVI-
SIONS OF LAW.—The authority of the President to
accept the return of a defense article as provided in
paragraph (1) shall not be subject to chapter 137 of
title 10, United States Code, or any other provision
of law relating to the conclusion of contracts.’’.
(c) REGULATIONS.—Under the direction of the Presi-
dent, the Secretary of Defense shall promulgate regula-
280
tions to implement subsections (l) and (m) of section 21
of the Arms Export Control Act, as added by this section.
SEC. 3195. ANNUAL MILITARY ASSISTANCE REPORT.
The Foreign Assistance Act of 1961 is amended by
inserting after section 654 (22 U.S.C. 2414) the following
new section:
‘‘SEC. 657. ANNUAL REPORT ON MILITARY ASSISTANCE AND
MILITARY EXPORTS.
‘‘Not later than February 1 of each year, the Presi-
dent shall transmit to the Congress an annual report for
the fiscal year ending the previous September 30, showing
the aggregate dollar value and quantity of defense articles
(including excess defense articles) and defense services,
and of military education and training, furnished by the
United States to each foreign country and international
organization, by category, specifying whether they were
furnished by grant under chapter 2 or chapter 5 of part
II of this Act, by sale under chapter 2 of the Arms Export
Control Act, by commercial sale licensed under section 38
of that Act, or by any other authority.’’.
281
TITLE XXXII—ECONOMIC
ASSISTANCE
CHAPTER 1—ECONOMIC SUPPORT
ASSISTANCE
SEC. 3201. ECONOMIC SUPPORT FUND.
Section 532(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2346a(a)) is amended to read as follows:
‘‘(a) There are authorized to be appropriated to the
President to carry out the purposes of this chapter
$2,356,378,000 for fiscal year 1996 and $2,248,478,000
for fiscal year 1997.’’.
SEC. 3202. ASSISTANCE FOR ISRAEL.
(a) MINIMUM ALLOCATION.—Of the amounts made
available for fiscal years 1996 and 1997 for assistance
under chapter 4 of part II of the Foreign Assistance Act
of 1961 (22 U.S.C. 2346 et seq.; relating to the economic
support fund), not less than $1,200,000,000 for each such
fiscal year shall be available only for Israel.
(b) TERMS OF ASSISTANCE.—
(1) CASH
TRANSFER.—The total amount of
funds allocated for Israel for each fiscal year under
subsection (a) shall be made available on a grant
basis as a cash transfer.
(2) EXPEDITED DISBURSEMENT.—Such funds
shall be disbursed—
283
(b) ADDITIONAL REQUIREMENT.—In exercising the
authority of this section, the President shall ensure that
the amount of funds provided as a cash transfer to Egypt
does not cause an adverse impact on the total level of non-
military exports from the United States to Egypt.
SEC. 3204. INTERNATIONAL FUND FOR IRELAND.
(a) FUNDING.—
(1) IN GENERAL.—Of the amounts made avail-
able for fiscal years 1996 and 1997 for assistance
under chapter 4 of part II of the Foreign Assistance
Act of 1961 (22 U.S.C. 2346 et seq.; relating to the
economic support fund), not more than $29,600,000
for fiscal year 1996 and not more than $19,600,000
for fiscal year 1997 shall be available for the United
States contribution to the International Fund for
Ireland in accordance with the Anglo-Irish Agree-
ment Support Act of 1986 (Public Law 99–415).
(2) AVAILABILITY.—Amounts made available
under paragraph (1) are authorized to remain avail-
able until expended.
(b) ADDITIONAL REQUIREMENTS.—
(1) PURPOSES.—Section 2(b) of the Anglo-Irish
Agreement Support Act of 1986 (Public Law 99–
415; 100 Stat. 947) is amended by adding at the
end the following new sentences: ‘‘United States con-
284
tributions shall be used in a manner that effectively
increases employment opportunities in communities
with rates of unemployment significantly higher than
the local or urban average of unemployment in
Northern Ireland. In addition, such contributions
shall be used to benefit individuals residing in such
communities.’’.
(2) CONDITIONS AND UNDERSTANDINGS.—Sec-
tion 5(a) of such Act is amended—
(A) in the first sentence—
(i) by striking ‘‘The United States’’
and inserting the following:
‘‘(1) IN GENERAL.—The United States’’;
(ii) by striking ‘‘in this Act may be
used’’ and inserting the following: ‘‘in this
Act—
‘‘(A) may be used’’;
(iii) by striking the period and insert-
ing ‘‘; and’’; and
(iv) by adding at the end the follow-
ing:
‘‘(B) may be provided to an individual or
entity in Northern Ireland only if such individ-
ual or entity is in compliance with the prin-
ciples of economic justice.’’; and
285
(B) in the second sentence, by striking
‘‘The restrictions’’ and inserting the following:
‘‘(2) ADDITIONAL
REQUIREMENTS.—The re-
strictions’’.
(3) PRIOR CERTIFICATIONS.—Section 5(c)(2) of
such Act is amended—
(A) in subparagraph (A), by striking
‘‘principle of equality’’ and all that follows and
inserting ‘‘principles of economic justice; and’’;
and
(B) in subparagraph (B), by inserting be-
fore the period at the end the following: ‘‘and
will create employment opportunities in regions
and communities of Northern Ireland suffering
the highest rates of unemployment’’.
(4) ANNUAL REPORTS.—Section 6 of such Act
is amended—
(A) in paragraph (2), by striking ‘‘and’’ at
the end;
(B) in paragraph (3), by striking the pe-
riod and inserting ‘‘; and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(4) each individual or entity receiving assist-
ance from United States contributions to the Inter-
286
national Fund has agreed in writing to comply with
the principles of economic justice.’’.
(5) DEFINITIONS.—Section 8 of such Act is
amended—
(A) in paragraph (1), by striking ‘‘and’’ at
the end;
(B) in paragraph (2), by striking the pe-
riod at the end and inserting a semicolon; and
(C) by adding at the end the following new
paragraphs:
‘‘(3) the term ‘Northern Ireland’ includes the
counties of Antrim, Armagh, Derry, Down, Tyrone,
and Fermanagh; and
‘‘(4) the term ‘principles of economic justice’
means the following principles:
‘‘(A) Increasing the representation of indi-
viduals from underrepresented religious groups
in the workforce, including managerial, super-
visory, administrative, clerical, and technical
jobs.
‘‘(B) Providing adequate security for the
protection of minority employees at the work-
place.
‘‘(C) Banning provocative sectarian or po-
litical emblems from the workplace.
287
‘‘(D) Providing that all job openings be ad-
vertised publicly and providing that special re-
cruitment efforts be made to attract applicants
from underrepresented religious groups.
‘‘(E) Providing that layoff, recall, and ter-
mination procedures do not favor a particular
religious group.
‘‘(F) Abolishing job reservations, appren-
ticeship restrictions, and differential employ-
ment criteria which discriminate on the basis of
religion.
‘‘(G) Providing for the development of
training programs that will prepare substantial
numbers of minority employees for skilled jobs,
including the expansion of existing programs
and the creation of new programs to train, up-
grade, and improve the skills of minority em-
ployees.
‘‘(H) Establishing procedures to assess,
identify, and actively recruit minority employees
with the potential for further advancement.
‘‘(I) Providing for the appointment of a
senior management staff member to be respon-
sible for the employment efforts of the entity
and, within a reasonable period of time, the im-
288
plementation of the principles described in sub-
paragraphs (A) through (H).’’.
(6) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect 180 days after
the date of the enactment of this Act.
SEC. 3205. LAW ENFORCEMENT ASSISTANCE.
(a) IN GENERAL.—Of the amounts made available
for fiscal years 1996 and 1997 for assistance under chap-
ter 4 of part II of the Foreign Assistance Act of 1961
(22 U.S.C. 2346 et seq.; relating to the economic support
fund), not more than $12,000,000 for each such fiscal
year shall be available for law enforcement assistance
under chapter 8 of part I of such Act (22 U.S.C. 2291
et seq.).
(b) AVAILABILITY.—Amounts made available under
subsection (a) are authorized to remain available until
expended.
CHAPTER 2—ASSISTANCE FOR PRIVATE
SECTOR PROGRAMS AND ACTIVITIES
SEC. 3211. PRIVATE SECTOR ENTERPRISE FUNDS.
The Foreign Assistance Act of 1961 (22 U.S.C. 2151
et seq.) is amended by inserting after section 601 the fol-
lowing new section:
289
‘‘SEC. 601A. PRIVATE SECTOR ENTERPRISE FUNDS.
‘‘(a) AUTHORITY.—(1) The President may provide
funds and support to Enterprise Funds designated in ac-
cordance with subsection (b) that are or have been estab-
lished for the purposes of promoting—
‘‘(A) development of the private sectors of eligi-
ble countries, including small businesses, the agricul-
tural sector, and joint ventures with United States
and host country participants; and
‘‘(B) policies and practices conducive to private
sector development in eligible countries;
on the same basis as funds and support may be provided
with respect to Enterprise Funds for Poland and Hungary
under the Support for East European Democracy (SEED)
Act of 1989 (22 U.S.C. 5401 et seq.).
‘‘(2) Funds may be made available under this section
notwithstanding any other provision of law.
‘‘(b) 
COUNTRIES
ELIGIBLE
FOR
ENTERPRISE
FUNDS.—(1) Except as provided in paragraph (2), the
President is authorized to designate a private, nonprofit
organization as eligible to receive funds and support pur-
suant to this section with respect to any country eligible
to receive assistance under part I of this Act in the same
manner and with the same limitations as set forth in sec-
tion 201(d) of the Support for East European Democracy
(SEED) Act of 1989 (22 U.S.C. 5421(d)).
290
‘‘(2) The authority of paragraph (1) shall not apply
to any country with respect to which the President is au-
thorized to designate an enterprise fund under section
498B(c) or section 498C of this Act or section 201 of the
Support for East European Democracy (SEED) Act of
1989 (22 U.S.C. 5421).
‘‘(c) TREATMENT
EQUIVALENT
TO
ENTERPRISE
FUNDS FOR POLAND AND HUNGARY.—Except as other-
wise specifically provided in this section, the provisions
contained in section 201 of the Support for East Euro-
pean Democracy (SEED) Act of 1989 (22 U.S.C. 5421)
(excluding the authorizations of appropriations provided
in subsection (b) of that section) shall apply to any Enter-
prise Fund that receives funds and support under this sec-
tion. The officers, members, or employees of an Enterprise
Fund that receive funds and support under this section
shall enjoy the same status under law that is applicable
to officers, members, or employees of the Enterprise
Funds for Poland and Hungary under section 201 of the
Support for East European Democracy (SEED) Act of
1989 (22 U.S.C. 5421).
‘‘(d) REPORTING REQUIREMENT.—Notwithstanding
any other provision of this section, the requirement of sec-
tion 201(p) of the Support for East European Democracy
(SEED) Act of 1989 (22 U.S.C. 5421(p)), that an Enter-
291
prise Fund shall be required to publish an annual report
not later than January 31 each year, shall not apply with
respect to an Enterprise Fund that receives funds and
support under this section for the first twelve months after
it is designated as eligible to receive such funds and sup-
port.
‘‘(e) FUNDING.—
‘‘(1) IN
GENERAL.—Amounts made available
for a fiscal year to carry out chapter 1 of part I of
this Act (relating to development assistance) and to
carry out chapter 4 of part II of this Act (relating
to the economic support fund) shall be available for
such fiscal year to carry out this section, in addition
to amounts otherwise available for such purposes.
‘‘(2) AFRICAN DEVELOPMENT.—In addition to
amounts available under paragraph (1) for a fiscal
year, amounts made available for such fiscal year to
carry out chapter 10 of part I of this Act (relating
to the Development Fund for Africa) shall be avail-
able for such fiscal year to carry out this section
with respect to countries in Africa.’’.
SEC. 3212. CENTRAL ASIAN ENTERPRISE FUND.
Notwithstanding section 201(D)(3)(A) of the Sup-
port for East European Democracy (SEED) Act of 1989
(22 U.S.C. 5421(d)(3)(A)), the Central Asian-American
292
Enterprise Fund may, in lieu of the appointment of citi-
zens of the host countries to its Board of Directors, estab-
lish an advisory council for the host region comprised of
citizens of each of the host countries or establish separate
advisory councils for each of the host countries, with which
such Fund shall periodically consult with respect to the
Fund’s policies and proposed activities. Such host country
citizens shall satisfy the experience and expertise require-
ments set forth in section 201 (d)(3)(A) and (d)(3)(C) of
that Act.
SEC. 3213. MICRO- AND SMALL ENTERPRISE DEVELOPMENT
CREDITS.
(a) IN GENERAL.—Section 108 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2151f) is amended to read
as follows:
‘‘SEC. 108. MICRO- AND SMALL ENTERPRISE DEVELOPMENT
CREDITS.
‘‘(a) FINDINGS AND POLICY.—The Congress finds
and declares that—
‘‘(1) the development of micro- and small enter-
prise, including cooperatives, is a vital factor in the
stable growth of developing countries and in the de-
velopment and stability of a free, open, and equi-
table international economic system;
293
‘‘(2) it is, therefore, in the best interests of the
United States to assist the development of the pri-
vate sector in developing countries and to engage the
United States private sector in that process;
‘‘(3) the support of private enterprise can be
served by programs providing credit, training, and
technical assistance for the benefit of micro- and
small enterprises; and
‘‘(4) programs that provide credit, training, and
technical assistance to private institutions can serve
as a valuable complement to grant assistance pro-
vided for the purpose of benefiting micro- and small
private enterprise.
‘‘(b) PROGRAM.—To carry out the policy set forth in
subsection (a), the President is authorized to provide as-
sistance to increase the availability of credit to micro- and
small enterprises lacking full access to credit, including
through—
‘‘(1) loans and guarantees to credit institutions
for the purpose of expanding the availability of cred-
it to micro- and small enterprises;
‘‘(2) training programs for lenders in order to
enable them to better meet the credit needs of
micro- and small entrepreneurs; and
294
‘‘(3) training programs for micro- and small en-
trepreneurs in order to enable them to make better
use of credit and to better manage their enter-
prises.’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—(A) There is authorized to
be appropriated to carry out section 108 of the For-
eign Assistance Act of 1961, in addition to funds
otherwise available for such purposes, $2,000,000
for each of the fiscal years 1996 and 1997. Funds
authorized to be appropriated under this subsection
shall be made available for the subsidy cost, as de-
fined in section 502(5) of the Federal Credit Reform
Act of 1990, for activities under section 108 of the
Foreign Assistance Act of 1961.
(B) In addition, there are authorized to be ap-
propriated $500,000 for each of the fiscal years
1996 and 1997 for the cost of training programs
and administrative expenses to carry out such sec-
tion.
(2) AVAILABILITY OF AMOUNTS.—Amounts au-
thorized to be appropriated under paragraph (1) are
authorized to remain available until expended.
296
‘‘(A) meet the needs of the very poor members
of society, particularly poor women; and
‘‘(B) provide loans of $300 or less in 1995
United States dollars to such poor members of soci-
ety.
‘‘(4) The administrator of the agency primarily re-
sponsible for administering this part shall strengthen ap-
propriate mechanisms, including mechanisms for central
microenterprise programs, for the purpose of—
‘‘(A) providing technical support for field mis-
sions;
‘‘(B) strengthening the institutional develop-
ment of the intermediary organizations described in
paragraph (2); and
‘‘(C) sharing information relating to the provi-
sion of assistance authorized under paragraph (1)
between such field missions and intermediary organi-
zations.
‘‘(b) MONITORING SYSTEM.—In order to maximize
the sustainable development impact of the assistance au-
thorized under subsection (a)(1), the administrator of the
agency primarily responsible for administering this part
shall establish a monitoring system that—
297
‘‘(1) establishes performance goals for such as-
sistance and expresses such goals in an objective and
quantifiable form, to the extent feasible;
‘‘(2) establishes performance indicators to be
used in measuring or assessing the achievement of
the goals and objectives of such assistance; and
‘‘(3) provides a basis for recommendations for
adjustments to such assistance to enhance the sus-
tainable development impact of such assistance, par-
ticularly the impact of such assistance on the very
poor, particularly poor women.’’.
CHAPTER 3—DEVELOPMENT ASSISTANCE
Subchapter A—Development Assistance
Authorities
SEC. 3221. AUTHORIZATIONS OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated the following amounts for the following purposes
(in addition to amounts otherwise available for such pur-
poses):
(1) 
DEVELOPMENT
ASSISTANCE
FUND.—
$858,000,000 
for 
fiscal 
year 
1996 
and
$745,000,000 for fiscal year 1997 to carry out sec-
tions 103 through 106 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2151a through 2151d).
298
(2) 
DEVELOPMENT
FUND
FOR
AFRICA.—
$629,214,000 
for 
fiscal 
year 
1996 
and
$614,214,000 for fiscal year 1997 to carry out chap-
ter 10 of part I of the Foreign Assistance Act of
1961 (22 U.S.C. 2293 et seq.).
(3) 
ASSISTANCE
FOR
THE
INDEPENDENT
STATES
OF
THE
FORMER
SOVIET
UNION.—
$643,000,000 
for 
fiscal 
year 
1996 
and
$625,000,000 for fiscal year 1997 to carry out pro-
grams under chapter 11 of part I of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2295 et seq.) and
other related programs.
(4) ASSISTANCE FOR EAST EUROPEAN COUN-
TRIES.—$325,000,000 for fiscal year 1996 and
$275,000,000 for fiscal year 1997 for economic as-
sistance for Eastern Europe and the Baltic states
under the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.) and the Support for East Eu-
ropean Democracy (SEED) Act of 1989 (22 U.S.C.
5401 et seq.).
(5) 
INTER-AMERICAN
FOUNDATION.—
$20,000,000 for fiscal year 1996 and $7,000,000 for
fiscal year 1997 to carry out section 401 of the For-
eign Assistance Act of 1969 (22 U.S.C. 290f).
299
(6) AFRICAN
DEVELOPMENT
FOUNDATION.—
$10,000,000 for fiscal year 1996 and $4,000,000 for
fiscal year 1997 to carry out the African Develop-
ment Foundation Act (22 U.S.C. 290h et seq.).
(b) AVAILABILITY OF AMOUNTS.—Amounts author-
ized to be appropriated under subsection (a) are author-
ized to remain available until expended.
SEC. 3222. CHILD SURVIVAL ACTIVITIES, VITAMIN A DEFI-
CIENCY PROGRAM, AND RELATED ACTIVI-
TIES.
(a) CHILD SURVIVAL ACTIVITIES.—
(1) IN GENERAL.—(A) Of the amounts made
available to carry out the provisions of law described
in paragraph (2) for fiscal years 1996 and 1997, not
less than $280,000,000 for each such fiscal year
should be made available only for activities which
have a direct measurable impact on rates of child
morbidity and mortality, with a particular emphasis
on delivery of community-based primary health care
and health education services which benefit the poor-
est of the poor.
(B) Of the amounts made available under sub-
paragraph (A) for a fiscal year, not less than
$30,000,000 for such fiscal year should be provided
to private and voluntary organizations under the
300
PVO Child Survival grants program carried out by
the agency primarily responsible for administering
part I of the Foreign Assistance Act of 1961.
(2) PROVISIONS
OF
LAW.—The provisions of
law described in this paragraph are the following:
(A) Sections 103 through 106 of the For-
eign Assistance Act of 1961 (22 U.S.C. 2151a
through 2151d; relating to the development as-
sistance fund).
(B) Chapter 10 of part I of the Foreign
Assistance Act of 1961 (22 U.S.C. 2293 et seq.;
relating to the Development Fund for Africa).
(C) Chapter 4 of part II of the Foreign
Assistance Act of 1961 (22 U.S.C. 2346 et seq.;
relating to the economic support fund).
(D) The ‘‘Multilateral Assistance Initiative
for the Philippines’’ program.
(3) SPECIAL RULE.—Amounts made available
under sections 103 through 106 of the Foreign As-
sistance Act of 1961 for the Vitamin A Deficiency
Program, part I of such Act for iodine and iron for-
tification programs and for iron supplementation
programs for pregnant women, chapter 9 of part I
of such Act for international disaster assistance, sec-
tion 104(c) of such Act for international AIDS pre-
301
vention and control, and any other provision of law
for migration and refugee assistance, shall not be in-
cluded in the aggregate amounts described in para-
graph (1) for purposes of the requirements con-
tained in such paragraph.
(b) VITAMIN A DEFICIENCY PROGRAM AND RELATED
ACTIVITIES.—Of the amounts made available to carry out
sections 103 through 106 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2151a through 2151d) for fiscal years
1996 and 1997, not less than $25,000,000 for each such
fiscal year should be made available for the Vitamin A
Deficiency Program and for activities relating to iodine
deficiency and other micronutrients.
(c) UNDP/WHO TROPICAL DISEASE PROGRAM.—Of
the amounts made available to carry out section 103
through 106 of the Foreign Assistance Act of 1961 (22
U.S.C. 2151a through 2151d) for fiscal years 1996 and
1997, not less than $15,000,000 for each such fiscal year
should be made available for the United Nations Develop-
ment Program/World Health Organization Special Pro-
gram for Research and Training in Tropical Diseases.
SEC. 3223. ASSISTANCE FOR FAMILY PLANNING.
(a) RESTRICTION
ON USE
OF FUNDS
FOR VOL-
UNTARY POPULATION PLANNING.—Section 104(b) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2151b(b)) is
302
amended by inserting after the first sentence the following
new sentence: ‘‘Such assistance shall be available only for
voluntary family planning projects which offer, either di-
rectly or through referral to, or information about access
to, a broad range of family planning methods and
services.’’.
(b) PROHIBITION
ON USE
OF FUNDS
FOR VOL-
UNTARY POPULATION PLANNING TO ORGANIZATIONS OR
PROGRAMS SUPPORTING OR PARTICIPATING IN THE MAN-
AGEMENT OF ABORTION OR INVOLUNTARY STERILIZA-
TION PROGRAMS.—Section 104(b) of such Act (22 U.S.C.
2151b(b)), as amended by subsection (a), is further
amended—
(1) in the first sentence, by striking ‘‘In order
to’’ and inserting ‘‘(1) In order to’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) None of the funds made available to carry out
this subsection may be made available to any organization
or program which, as determined by the President, sup-
ports or participates in the management of a program of
coercive abortion or involuntary sterilization.’’.
(c) PROHIBITION
ON DISCRIMINATION WITH RE-
SPECT TO GRANTS FOR NATURAL FAMILY PLANNING.—
Section 104(b) of such Act (22 U.S.C. 2151b(b)), as
303
amended by subsections (a) and (b), is further amended
by adding at the end the following new paragraph:
‘‘(3) In providing grants for natural family planning
under this subsection, the administrator of the agency pri-
marily responsible for administering this part shall not
discriminate against applicants because of any religious or
conscientious commitment by such applicants to offer only
natural family planning services.’’.
(d) CLARIFICATION WITH RESPECT TO PROHIBITION
ON USE OF FUNDS FOR ABORTIONS.—Section 104(f)(1)
of such Act (22 U.S.C. 2151b(f)(1)) is amended—
(1) by striking ‘‘None of the funds’’ and insert-
ing ‘‘(A) None of the funds’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) For purposes of this paragraph, the term ‘moti-
vate’ shall not be construed to prohibit the provision, con-
sistent with local law, of information and counseling con-
cerning all pregnancy options, including abortion.’’.
SEC. 3224. ASSISTANCE FOR THE INDEPENDENT STATES OF
THE FORMER SOVIET UNION.
(a) CONDITIONS ON ASSISTANCE.—Section 498A(b)
of the Foreign Assistance Act of 1961 (22 U.S.C.
2295a(b)) is amended—
304
(1) in paragraph (4), by striking ‘‘or’’ at the
end;
(2) by redesignating paragraph (5) as para-
graph (10); and
(3) by inserting after paragraph (4) the follow-
ing new paragraphs:
‘‘(5) for the Government of Russia, unless the
President certifies to the Congress that such Gov-
ernment—
‘‘(A) is pursuing, without preconditions, an
immediate and permanent ceasefire, and is pur-
suing a negotiated settlement to the conflict in
the Russian Federation Republic of Chechnya;
‘‘(B) is taking steps to provide unhindered
access to the region of Chechnya and surround-
ing areas of the Russian Federation by elected
officials of the Russian Federation and by inde-
pendent Russian media;
‘‘(C) is cooperating with the Organization
for Security and Cooperation in Europe and
other appropriate international organizations in
undertaking steps to investigate and prosecute
any and all individuals, including members of
the Russian armed forces and internal security
agencies, who may be responsible for atrocities,
305
war crimes, or crimes against humanity in the
region of Chechnya;
‘‘(D) is cooperating with the Assistance
Group of the Organization on Security and Co-
operation in Europe established in Chechnya in
fulfilling that mission’s mandate;
‘‘(E) is cooperating in assuring the
unhindered delivery of humanitarian assistance
to the civilian population in Chechnya;
‘‘(F) has made the fullest possible account-
ing of all persons currently detained by Russian
military or security forces as a result of the
conflict in Chechnya and has allowed access to
those individuals by the International Commit-
tee of the Red Cross;
‘‘(G) is taking steps to repatriate refugees
and displaced persons wishing to return to
Chechnya; and
‘‘(H) is taking steps to hold free and fair
elections in Chechnya, based on the principles
of the Organization on Security and Coopera-
tion in Europe and conducted in the presence
of foreign and domestic observers;
except that this paragraph shall not apply to the
provision of such assistance for purposes of humani-
306
tarian, disaster, and refugee relief or assisting demo-
cratic political reform and rule of law activities, pro-
vision of technical assistance for safety upgrade of
civilian nuclear power plants, and assisting in the
creation of private sector and nongovernmental orga-
nizations that are independent of government owner-
ship and control;
‘‘(6) for the government of any independent
state that has agreed to provide nuclear reactor
components to Iran, unless the President determines
that the sale of such components to Iran includes
safeguards that are consistent with the national se-
curity objectives of the United States and the con-
cerns of the United States with respect to non-
proliferation of nuclear weapons technology, except
that this paragraph shall not apply to the provision
of such of assistance for purposes of—
‘‘(A) humanitarian, disaster, and refugee
relief; or
‘‘(B) assisting democratic political reform,
rule of law activities, and the creation of private
sector and nongovernmental organizations that
are independent of government ownership and
control;
307
‘‘(7) for the government of any independent
state that the President determines directs any ac-
tion in violation of the territorial integrity or na-
tional sovereignty of any other new independent
state, except that this paragraph shall not apply to
the provision of such assistance for purposes of—
‘‘(A) humanitarian, disaster, and refugee
relief; or
‘‘(B) assisting democratic political reform,
rule of law activities, and the creation of private
sector and nongovernmental organizations that
are independent of government ownership and
control;
‘‘(8) for the purpose of enhancing the military
capability of any independent state, except that this
paragraph shall not apply to demilitarization, de-
fense conversion or nonproliferation programs, or
programs to support troop withdrawal including
through the support of an officer resettlement pro-
gram, and technical assistance for the housing sec-
tor;
‘‘(9) for the Government of Russia if the Presi-
dent determines that Government—
‘‘(A) is not making progress in implement-
ing comprehensive economic reforms based on
308
market principles, including fostering private
ownership, the repayment of commercial debt,
the respect of commercial contracts, the equi-
table treatment of foreign private investment;
or
‘‘(B) applies or transfers assistance pro-
vided under this chapter to any entity for the
purpose of expropriating or seizing ownership
or control of assets, investments, or ventures;
or’’.
(b) ASSISTANCE THROUGH THE PRIVATE SECTOR.—
Section 498B(a) of such Act (22 U.S.C. 2295b(a)) is
amended to read as follows:
‘‘(a) ASSISTANCE THROUGH
THE PRIVATE SEC-
TOR.—Assistance under this chapter shall be provided, to
the maximum extent feasible, through the private sector,
including private and voluntary organizations and other
nongovernmental organizations functioning in the inde-
pendent states of the former Soviet Union.’’.
(c) WAIVER
OF
CERTAIN
PROVISIONS.—Section
498B(j)(1) of such Act (22 U.S.C. 2295b(j)(1)) is amend-
ed in the matter preceding subparagraph (A)—
(1) by striking ‘‘for fiscal year 1993 by this
chapter’’ and inserting ‘‘to carry out this chapter’’;
and
309
(2) by striking ‘‘appropriated for fiscal year
1993’’.
SEC. 3225. DEVELOPMENT FUND FOR LATIN AMERICA AND
THE CARIBBEAN.
Part I of the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.) is amended by adding at the end
the following new chapter:
‘‘CHAPTER 12—DEVELOPMENT FUND FOR
LATIN AMERICA AND THE CARIBBEAN
‘‘SEC. 499. STATEMENT OF POLICY.
‘‘The Congress declares the following:
‘‘(1) The historic, economic, political, and geo-
graphic relationships among the countries of the
Western Hemisphere are unique and of continuing
special significance.
‘‘(2) Following the historic Summit of the
Americas and the passage of the North American
Free Trade Agreement, the countries of the Western
Hemisphere have moved steadfastly toward economic
and political integration.
‘‘(3) The interests of the countries of the West-
ern Hemisphere are more interrelated than ever, and
sound economic, social, and democratic progress in
each of the countries continues to be of importance
310
to all countries, and lack of it in any country may
have serious repercussions in others.
‘‘(4) For the peoples of Latin America and the
Caribbean to progress within the framework of social
justice, respect for human rights, political democ-
racy, and market-oriented economies, there is a com-
pelling need for the achievement of social and eco-
nomic advancement and the consolidation of political
democracy and the rule of law adequate to meet the
legitimate aspirations of the individual citizens of
the countries of Latin America and the Caribbean
for a better way of life.
‘‘(5) The prosperity, security, and well-being of
the United States is linked directly to peace, pros-
perity, and democracy in Latin America and the
Caribbean.
‘‘(6) Democratic values are dominant through-
out Latin America and the Caribbean region and
nearly all governments in such region have come to
power through democratic elections.
‘‘(7) Nonetheless, existing democratic govern-
ments and their supporting institutions remain frag-
ile and face critical challenges, including, in particu-
lar, the consolidation of civilian control of such gov-
ernments and institutions, including control of the
311
military, the consolidation or establishment of inde-
pendent judicial institutions and of the rule of law,
and where appropriate, the decentralization of gov-
ernment.
‘‘(8) In adherence to free market principles, it
is essential to promote economic growth with eq-
uity—enlarging employment and decisionmaking op-
portunities and the provision of basic social services
for traditionally marginalized groups, such as indige-
nous minorities, women, and the poor—and to pro-
tect and promote workers rights.
‘‘(9) By supporting the purposes and objectives
of sustainable development and applying such pur-
poses and objectives to Latin America and the Car-
ibbean, the Development Fund for Latin America
and the Caribbean can advance the national inter-
ests of the United States and can directly improve
the lives of the poor, encourage broad-based eco-
nomic growth while protecting the environment,
build human capital and knowledge, support partici-
pation in democracy, and promote peace and justice
in Latin America and the Caribbean.
‘‘SEC. 499A. AUTHORIZATION OF ASSISTANCE.
‘‘(a) IN GENERAL.—The President is authorized to
provide assistance for Latin America and the Caribbean
312
to promote democracy, sustainable development, and eco-
nomic growth in Latin America and the Caribbean.
‘‘(b) TERMS
AND CONDITIONS.—Assistance under
this chapter shall be provided on such terms and condi-
tions as the President may determine.
‘‘SEC. 499B. AVAILABILITY OF AMOUNTS.
‘‘(a) IN GENERAL.—Of the amounts made available
to carry out the provisions of law described in subsection
(b) for fiscal year 1996 and for each succeeding fiscal
year, not less than an amount requested by the President
and approved by the Congress in appropriations Acts shall
be made available to carry out this chapter.
‘‘(b) PROVISIONS OF LAW.—The provisions of law de-
scribed in this subsection are the following:
‘‘(1) Sections 103 through 106 of this Act (re-
lating to the development assistance fund).
‘‘(2) Chapter 8 of this part (relating to inter-
national narcotics control).
‘‘(3) Chapter 4 of part II of this Act (relating
to the economic support fund).
‘‘(4) Chapter 5 of part II of this Act (relating
to international military education and training).
‘‘(5) Titles II and III of the Agricultural Trade
Development and Assistance Act of 1954.
313
‘‘(6) The ‘Foreign Military Financing Program’
under section 23 of the Arms Export Control Act
(22 U.S.C. 2763).
‘‘(c) AVAILABILITY.—Amounts made available under
this section are authorized to remain available until ex-
pended.’’.
SEC. 3226. EFFECTIVENESS OF UNITED STATES DEVELOP-
MENT ASSISTANCE.
Chapter 1 of part I of the Foreign Assistance Act
of 1961 (22 U.S.C. 2251 et seq.), as amended by this Act,
is further amended by adding at the end the following new
section:
‘‘SEC. 130. EFFECTIVENESS OF UNITED STATES DEVELOP-
MENT ASSISTANCE.
‘‘(a) REPORTS.—Not later than December 31, 1996,
and December 31 of each third year thereafter, the Presi-
dent shall transmit to the Congress a report which ana-
lyzes, on a country-by-country basis, the impact and effec-
tiveness of the United States development assistance pro-
vided during the preceding three fiscal years. Each report
shall include the following for each recipient country:
‘‘(1) An analysis of the impact of United States
development assistance during the preceding three
fiscal years on development in that country, with a
discussion of the United States interests that were
314
served by the assistance. Such analysis shall be done
on a sector-by-sector basis to the extent possible and
shall identify any economic policy reforms which
were promoted by the assistance. Such analysis
shall—
‘‘(A) include a description, quantified to
the extent practicable, of the specific objectives
the United States sought to achieve in provid-
ing development assistance for that country;
and
‘‘(B) specify the extent to which those ob-
jectives were not achieved, with an explanation
of why they were not achieved.
‘‘(2) A description of the amount and nature of
development assistance provided by other donors
during the preceding three fiscal years, set forth by
development sector to the extent possible.
‘‘(3) A discussion of the commitment of the
host government to addressing the country’s needs
in each development sector, including a description
of the resources devoted by that government to each
development sector during the preceding three fiscal
years.
‘‘(4) A description of the trends, both favorable
and unfavorable, in each development sector.
315
‘‘(5) Statistical and other information necessary
to evaluate the impact and effectiveness of United
States development assistance on development in the
country.
‘‘(b) LISTING OF MOST AND LEAST SUCCESSFUL AS-
SISTANCE PROGRAMS.—Each report required by this sec-
tion shall identify—
‘‘(1) those five countries in which United States
development assistance has been most successful;
and
‘‘(2) those five countries in which United States
development assistance has been least successful.
For each country listed pursuant to paragraph (2), the
report shall explain why the assistance was not more suc-
cessful and shall specify what the United States has done
as a result.
‘‘(c) REPORT TO BE A SEPARATE DOCUMENT.—
Each report required by this section shall be submitted
to the Congress as a separate document.
‘‘(d) DEFINITION.—As used in this section, the terms
‘United States development assistance’ and ‘development
assistance’ means assistance under this chapter.’’.
316
SEC. 3227. FUNDING FOR PRIVATE AND VOLUNTARY ORGA-
NIZATIONS AND COOPERATIVES.
(a) IN GENERAL.—For each of the fiscal years 1996
and 1997, the President should allocate an aggregate
amount to private and voluntary organizations and co-
operatives under the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.) and the Support for East European
Democracy (SEED) Act of 1989 which, at a minimum,
is equal to the aggregate amount allocated to such organi-
zations and cooperatives under such Acts for fiscal year
1994.
(b) DEFINITION.—For purposes of this section, the
term ‘‘private and voluntary organization’’ means a pri-
vate nongovernmental organization which—
(1) is organized under the laws of a country;
(2) receives funds from private sources;
(3) operates on a not-for-profit basis with ap-
propriate tax-exempt status if the laws of the coun-
try grant such status to not-for-profit organizations;
(4) is voluntary in that it receives voluntary
contributions of money, time, or in-kind support
from the public; and
(5) is engaged or intends to be engaged in vol-
untary, charitable, development, or humanitarian as-
sistance activities.
317
SEC. 3228. SENSE OF THE CONGRESS RELATING TO UNITED
STATES COOPERATIVES AND CREDIT UNIONS.
It is the sense of the Congress that—
(1) United States cooperatives and credit
unions can provide an opportunity for people in de-
veloping countries to participate directly in demo-
cratic decisionmaking for their economic and social
benefit through ownership and control of business
enterprises and through the mobilization of local
capital and savings; and
(2) such organizations should be utilized in fos-
tering democracy, free markets, community-based
development, and self-help projects.
Subchapter B—Operating Expenses
SEC. 3231. OPERATING EXPENSES GENERALLY.
Section 667(a)(1) of the Foreign Assistance Act of
1961 (22 U.S.C. 2427(a)(1)) is amended to read as fol-
lows:
‘‘(1) $465,774,000 for fiscal year 1996 and
$419,196,000 for fiscal year 1997 for necessary op-
erating expenses of the agency primarily responsible
for administering part I of this Act (other than the
office of the inspector general of such agency); and’’.
318
SEC. 3232. OPERATING EXPENSES OF THE OFFICE OF THE
INSPECTOR GENERAL.
Section 667(a) of the Foreign Assistance Act of 1961
(22 U.S.C. 2427(a)), as amended by this Act, is further
amended—
(1) by redesignating paragraph (2) as para-
graph (3);
(2) by striking ‘‘and’’ at the end of paragraph
(1); and
(3) by inserting after paragraph (1) the follow-
ing:
‘‘(2) $35,206,000 for fiscal year 1996 and
$30,685,000 for fiscal year 1997 for necessary oper-
ating expenses of the office of the inspector general
of such agency; and’’.
CHAPTER 4—PUBLIC LAW 480
SEC. 3241. LEVELS OF ASSISTANCE FOR TITLE II.
Section 204(a) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1724(a)) is
amended—
(1) in paragraph (1)(E), by striking ‘‘for fiscal
year 1995’’ and inserting ‘‘for each of the fiscal
years 1995 through 1997’’; and
(2) in paragraph (2)(E), by striking ‘‘for fiscal
year 1995’’ and inserting ‘‘for each of the fiscal
years 1995 through 1997’’.
319
SEC. 3242. AUTHORIZATION OF APPROPRIATIONS FOR
TITLE III.
No funds are authorized to be appropriated for either
of the fiscal years 1996 and 1997 for the provision of agri-
cultural commodities under title III of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C.
1727 et seq.).
CHAPTER 5—HOUSING GUARANTEE
PROGRAM
SEC. 3251. AUTHORIZATION OF APPROPRIATIONS FOR AD-
MINISTRATIVE EXPENSES.
(a) IN GENERAL.—(1) Subject to paragraph (2),
there are authorized to be appropriated $7,000,000 for fis-
cal year 1996 and $6,000,000 for fiscal year 1997 for ad-
ministrative expenses to carry out guaranteed loan pro-
grams under sections 221 and 222 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2181 and 2182).
(2) Amounts authorized to be appropriated under
paragraph (1) may be made available only for—
(A) administrative expenses incurred with re-
spect to guaranties issued before the date of the en-
actment of this Act; or
(B) expenses incurred with respect to activities
related to the collection of amounts paid by the
United States in the discharge of liabilities under
320
guaranties issued under section 222 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2182).
(b) AVAILABILITY.—Amounts authorized to be appro-
priated under subsection (a) are authorized to remain
available until expended.
SEC. 3252. ADDITIONAL REQUIREMENTS.
(a) EXPIRATION OF AUTHORITY.—Section 222(a) of
the Foreign Assistance Act of 1961 (22 U.S.C. 2182(a))
is amended by striking the third sentence and inserting
the following: ‘‘No guaranties may be issued under this
section on or after the date of the enactment of the For-
eign Aid Reduction Act of 1995.’’.
(b) CANCELLATION OF CERTAIN EXISTING GUARAN-
TIES.—Section 222 of such Act (22 U.S.C. 2182) is
amended—
(1) by redesignating subsection (k) as sub-
section (d); and
(2) by adding at the end the following new sub-
section:
‘‘(e) The President shall cancel all guaranties issued
under this section with respect to which eligible investors
have not (before the date of the enactment of the Foreign
Aid Reduction Act of 1995) applied such guaranties to
loans for projects under this title. The provisions of this
321
subsection shall not apply to guaranties which have been
issued for the benefit of the Republic of South Africa.’’.
(c) PROHIBITION ON ASSISTANCE FOR ENTITIES IN
DEFAULT AND CERTAIN OTHER ENTITIES.—Section 620
of such Act (22 U.S.C. 2370) is amended by inserting
after subsection (u) the following new subsection:
‘‘(v)(1) Subject to paragraph (2), no assistance shall
be furnished under this Act to any entity that—
‘‘(A) fails to make timely payments on loans
with respect to which guaranties have been issued
under title III of chapter 2 of part I of this Act (re-
lating to housing and other credit guaranty pro-
grams); or
‘‘(B) causes amounts (including amounts for
administrative expenses) to be paid by the United
States in the discharge of liabilities under guaranties
issued under such title, unless such entity has reim-
bursed the United States for such amounts.
‘‘(2) The President may waive the prohibition in
paragraph (1) with respect to an entity if the President
determines that it is in the national interest of the United
States to furnish assistance under this Act to such en-
tity.’’.
322
CHAPTER 6—PEACE CORPS
SEC. 3261. PEACE CORPS.
Section 3(b) of the Peace Corps Act (22 U.S.C.
2502(b)) is amended to read as follows:
‘‘(b)(1) There are authorized to be appropriated to
carry out the purposes of this Act $219,745,000 for fiscal
year 1996 and $215,000,000 for fiscal year 1997.
‘‘(2) Amounts authorized to be appropriated under
paragraph (1)—
‘‘(A) with respect to fiscal year 1996 are au-
thorized to remain available until September 30,
1997; and
‘‘(B) with respect to fiscal year 1997 are au-
thorized to remain available until September 30,
1998.’’.
SEC. 3262. ACTIVITIES OF THE PEACE CORPS IN THE
FORMER SOVIET UNION.
(a) IN GENERAL.—Of the amounts made available
for fiscal years 1996 and 1997 to carry out chapter 11
of part I of the Foreign Assistance Act of 1961 (22 U.S.C.
2295 et seq.; relating to assistance for the independent
states of the former Soviet Union), not more than
$11,600,000 for each such fiscal year shall be available
for activities of the Peace Corps in the independent states
of the former Soviet Union (as defined in section 3 of the
323
Freedom for Russia and Emerging Eurasian Democracies
and Open Markets Support Act of 1992).
(b) AVAILABILITY.—Amounts made available under
subsection (a)—
(1) with respect to fiscal year 1996 are author-
ized to remain available until September 30, 1997;
and
(2) with respect to fiscal year 1997 are author-
ized to remain available until September 30, 1998.
SEC. 3263. PROHIBITION ON USE OF FUNDS FOR ABOR-
TIONS.
Section 15 of the Peace Corps Act (22 U.S.C. 2514)
is amended by adding at the end the following new sub-
section:
‘‘(e) Funds made available for the purposes of this
Act may not be used to pay for abortions.’’.
CHAPTER 7—INTERNATIONAL DISASTER
ASSISTANCE
SEC. 3271. AUTHORITY TO PROVIDE RECONSTRUCTION AS-
SISTANCE.
Section 491 of the Foreign Assistance Act of 1961
(22 U.S.C. 2292) is amended—
(1) in subsection (b), by striking ‘‘and rehabili-
tation’’ and inserting ‘‘, rehabilitation, and recon-
struction’’; and
324
(2) in subsection (c), by striking ‘‘and rehabili-
tation’’ and inserting ‘‘, rehabilitation, and recon-
struction’’.
SEC. 3272. AUTHORIZATIONS OF APPROPRIATIONS.
Section 492(a) of such Act (22 U.S.C. 2292a(a)) is
amended to read as follows:
‘‘(a) There are authorized to be appropriated to the
President to carry out section 491, in addition to funds
otherwise available for such purposes, $200,000,000 for
each of the fiscal years 1996 and 1997.’’.
CHAPTER 8—OVERSEAS PRIVATE
INVESTMENT CORPORATION
SEC. 3275. STUDY ON OPIC PRIVATIZATION.
The President or his designee shall conduct and, not
later than 180 days after the date of the enactment of
this Act, report to the Congress on the feasibility of trans-
ferring the activities of the Overseas Private Investment
Corporation to the private sector.
SEC. 3276. PRIVATIZATION OF OPIC ACTIVITIES.
Upon completion of the report required under section
3275, the President is authorized to sell the stock of the
Overseas Private Investment Corporation and to take
other necessary steps so that all the evidences of owner-
ship of the Corporation are transferred to the private sec-
325
tor, whether through the sale of the Corporation’s con-
tracts, leases, or other agreements or rights, or otherwise.
CHAPTER 9—OTHER PROVISIONS
SEC. 3281. EXEMPTION FROM RESTRICTIONS ON ASSIST-
ANCE THROUGH NONGOVERNMENTAL ORGA-
NIZATIONS.
Section 123(e) of the Foreign Assistance Act of 1961
(22 U.S.C. 2151u(e)) is amended to read as follows:
‘‘(e)(1) Subject to paragraph (3), restrictions con-
tained in this Act or any other provision of law with re-
spect to assistance for a country shall not be construed
to restrict assistance under this chapter, chapter 10, or
chapter 11 of this part in support of programs of non-
governmental organizations.
‘‘(2) The President shall take into consideration, in
any case in which a restriction on assistance for a country
would be applicable but for this subsection, whether assist-
ance for programs of nongovernmental organizations is in
the national interest of the United States.
‘‘(3) Whenever the authority of this subsection is
used to furnish assistance for a program of a nongovern-
mental organization, the President shall notify the con-
gressional committees specified in section 634A(a) of this
Act in accordance with procedures applicable to
reprogramming notifications under that section. Such no-
326
tification shall describe the program assisted, the assist-
ance provided, and the reasons for furnishing such assist-
ance.’’.
SEC. 3282. FUNDING REQUIREMENTS RELATING TO UNITED
STATES PRIVATE AND VOLUNTARY ORGANI-
ZATIONS.
(a) IN GENERAL.—Section 123(g) of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2151u(g)) is amended
to read as follows:
‘‘(g) Funds made available to carry out this chapter
or chapter 10 of this part may not be made available to
any United States private and voluntary organization, ex-
cept any cooperative development organization, that ob-
tains less than 20 percent of its total annual financial sup-
port for its international activities from sources other than
the United States Government.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) applies with respect to funds made available
for programs of any United States private and voluntary
organization on or after the date of the enactment of this
Act.
SEC. 3283. DOCUMENTATION REQUESTED OF PRIVATE AND
VOLUNTARY ORGANIZATIONS.
Section 620 of the Foreign Assistance Act of 1961
(22 U.S.C. 2370), as amended by this Act, is further
327
amended by inserting after subsection (v) (as added by
this Act) the following new subsection:
‘‘(w) None of the funds made available to carry out
this Act shall be available to any private and voluntary
organization which—
‘‘(1) fails to provide upon timely request any
document, file, or record necessary to the auditing
requirements of the agency primarily responsible for
administering part I of this Act; or
‘‘(2) is not registered with the agency primarily
responsible for administering part I of this Act.’’.
SEC. 3284. FOREIGN GOVERNMENT PARKING FINES.
(a) IN GENERAL.—Chapter 1 of part III of the For-
eign Assistance Act of 1961 (22 U.S.C. 2351 et seq.), as
amended by this Act, is further amended by adding at the
end the following new section:
‘‘SEC. 620I. FOREIGN GOVERNMENT PARKING FINES.
‘‘(a) IN GENERAL.—An amount equivalent to 110
percent of the total unpaid fully adjudicated parking fines
and penalties owed to the District of Columbia, Virginia,
Maryland, and New York by the government of a foreign
country as of the end of a fiscal year, as certified to the
President by the chief executive officer of each State or
District, shall be withheld from obligation for such country
out of funds available in the next fiscal year to carry out
328
part I of this Act, until the requirement of subsection (b)
is satisfied.
‘‘(b) REQUIREMENT.—The requirement of this sub-
section is satisfied when the Secretary of State determines
and certifies to the appropriate congressional committees
that such fines and penalties are fully paid to the govern-
ments of the District of Columbia, Virginia, Maryland,
and New York.
‘‘(c) APPROPRIATE CONGRESSIONAL COMMITTEES
DEFINED.—For purposes of this section, the term ‘appro-
priate congressional committees’ means the Committee on
International Relations and the Committee on Appropria-
tions of the House of Representatives and the Committee
on Foreign Relations and the Committee on Appropria-
tions of the Senate.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply with respect to fines certified
as of the end of fiscal year 1995 or any fiscal year there-
after.
SEC. 3285. HUMAN RIGHTS REPORTS.
(a) SECTION 116 REPORT.—Section 116(d) of the
Foreign Assistance Act of 1961 (22 U.S.C. 2151n) is
amended—
(1) in paragraph (2), by striking ‘‘and’’ at the
end;
329
(2) by redesignating paragraph (3) as para-
graph (5); and
(3) by inserting after paragraph (2) the follow-
ing new paragraphs:
‘‘(3) the votes of each member of the United
Nations Commission on Human Rights on all coun-
try-specific and thematic resolutions voted on at the
Commission’s annual session during the period cov-
ered during the preceding year;
‘‘(4) the extent to which each country has ex-
tended protection to refugees, including the provision
of first asylum and resettlement; and’’.
(b) SECTION 502B REPORT.—Section 502B(b) of
such Act (22 U.S.C. 2304(b)) is amended by adding after
the second sentence the following new sentence: ‘‘Each re-
port under this section shall list the votes of each member
of the United Nations Commission on Human Rights on
all country-specific and thematic resolutions voted on at
the Commission’s annual session during the period covered
during the preceding year.’’.
SEC. 3286. DEOBLIGATION OF CERTAIN UNEXPENDED ECO-
NOMIC ASSISTANCE FUNDS.
Chapter 3 of part III of the Foreign Assistance Act
of 1961 (22 U.S.C. 2401 et seq.) is amended by adding
at the end the following:
330
‘‘SEC. 668. DEOBLIGATION OF CERTAIN UNEXPENDED ECO-
NOMIC ASSISTANCE FUNDS.
‘‘(a) REQUIREMENT TO DEOBLIGATE.—
‘‘(1) IN GENERAL.—Except as provided in sub-
section (b) of this section and in paragraphs (1) and
(3) of section 617(a) of this Act, at the beginning
of each fiscal year the President shall deobligate and
return to the Treasury, any funds described in para-
graph (2) that, as of the end of the preceding fiscal
year, have been obligated for a project or activity for
a period of more than 3 years but have not been ex-
pended.
‘‘(2) FUNDS.—Paragraph (1) applies to funds
made available for—
‘‘(A) assistance under chapter 1 of part I
of this Act (relating to development assistance),
chapter 10 of part I of this Act (relating to the
Development Fund for Africa), or chapter 4 of
part II of this Act (relating to the economic
support fund);
‘‘(B) assistance under the ‘Multilateral As-
sistance Initiative for the Philippines’;
‘‘(C) assistance under the Support for
East European Democracy (SEED) Act of
1989; and
331
‘‘(D) economic assistance for the independ-
ent states of the former Soviet Union under
this Act or under any other Act authorizing
economic assistance for such independent
states.
‘‘(b) EXCEPTIONS.—The President, on a case-by-case
basis, may waive the requirement of subsection (a)(1) if
the President determines, and reports to the appropriate
congressional committees, that—
‘‘(1) the funds are being used for a construction
project that requires more than 3 years to complete;
or
‘‘(2) the funds have not been expended because
of 
unforeseen 
circumstances, 
and 
those 
cir-
cumstances could not have been reasonably foreseen.
‘‘(c) COMMENTS BY INSPECTOR GENERAL.—As soon
as possible after the submission of a report pursuant to
subsection (b), the Inspector General of the agency pri-
marily responsible for administering part I of this Act
shall submit to the appropriate congressional committees
such comments as the Inspector General considers appro-
priate with regard to the determination described in that
report.
‘‘(d) APPROPRIATE CONGRESSIONAL COMMITTEES.—
As used in this section, the term ‘appropriate congres-
332
sional committees’ means the Committee on International
Relations and the Committee on Appropriations of the
House of Representatives and the Committee on Foreign
Relations and the Committee on Appropriations of the
Senate.’’.
TITLE XXXIII—REGIONAL
PROVISIONS
SEC. 3301. PROHIBITION ON ASSISTANCE TO FOREIGN GOV-
ERNMENTS 
PROVIDING 
ASSISTANCE 
TO
CUBA.
(a) IN GENERAL.—Section 620 of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2370), as amended by this
Act, is further amended by adding at the end the following
new subsection:
‘‘(y)(1) No assistance may be provided under this Act
(other than humanitarian assistance and assistance for
refugees) for a fiscal year to any foreign government that
the President determines has provided economic assistance
to or engaged in nonmarket-based trade with the Govern-
ment of Cuba or any entity controlled by such Government
in the preceding fiscal year.
‘‘(2) The President may waive the requirements of
paragraph (1) if—
‘‘(A) the President certifies to the congressional
committees specified in section 634A of this Act (in
333
accordance 
with 
procedures 
applicable 
to
reprogramming of funds under that section) that the
provision of such assistance is vital to the national
security of the United States; or
‘‘(B) the President determines and reports to
the Congress that the Government of Cuba has met
the requirements contained in section 1708 of the
Cuban Democracy Act of 1992 (22 U.S.C. 6001 et
seq.).
‘‘(3) Not later than February 1st each year, the
President shall prepare and transmit to the appropriate
congressional committees a report containing a list of all
foreign governments that the President has determined
have provided economic assistance to or engaged in
nonmarket-based trade with the Government of Cuba in
the preceding fiscal year.
‘‘(4) For purposes of this subsection—
‘‘(A) the term ‘appropriate congressional com-
mittees’ means the Committee on International Re-
lations and the Committee on Appropriations of the
House of Representatives and the Committee on
Foreign Relations and the Committee on Appropria-
tions of the Senate;
334
‘‘(B) the term ‘humanitarian assistance’ means
food (including the monetization of food), clothing,
medicine, and medical supplies; and
‘‘(C) the term ‘nonmarket-based trade’ includes
exports, imports, exchanges, or other trade arrange-
ments under which goods or services are provided on
terms more favorable than those generally available
in applicable markets or for comparable commod-
ities, including—
‘‘(i) exports to the Government of Cuba on
terms that involve a grant, concessional price,
guaranty, insurance, or subsidy;
‘‘(ii) imports from the Government of Cuba
at preferential tariff rates; and
‘‘(iii) exchange arrangements that include
advance delivery of commodities, arrangements
in which the Government of Cuba is not held
accountable for unfulfilled exchange contracts,
and arrangements under which such Govern-
ment does not pay appropriate transportation,
insurance, or finance costs.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the prohibition on assistance to a foreign
government contained in section 620(y) of the For-
335
eign Assistance Act of 1961, as added by subsection
(a), shall apply only with respect to assistance pro-
vided in fiscal years beginning on or after the date
of the enactment of this Act.
(2) EXCEPTION.—In the case of the fiscal year
in which this Act is enacted, such prohibition shall
apply with respect to the obligation or expenditure
of assistance on or after the date of the enactment
of this Act.
SEC. 3302. ASSISTANCE FOR NICARAGUA.
(a) RESTRICTIONS.—Amounts made available for fis-
cal years 1996 and 1997 for assistance under chapter 1
of part I of the Foreign Assistance Act of 1961 (22 U.S.C.
2151 et seq.; relating to development assistance) or chap-
ter 4 of part II of such Act (22 U.S.C. 2346 et seq.; relat-
ing to the economic support fund), including any unobli-
gated balances of prior appropriations, may only be made
available to the Government of Nicaragua if the Secretary
of State determines and certifies to the appropriate con-
gressional committees that—
(1) a full and independent investigation has
been completed of the weapons caches discovered
after the May 23, 1993, Santa Rosa arms cache ex-
plosion, including an investigation of passports, iden-
tity papers, and other documents found at weapons
336
sites indicating the existence of a terrorist or kid-
napping ring and whether the terrorist network was
involved in the February 1993 World Trade Center
bombing;
(2) prosecutions have been initiated against all
individuals, including government officials and mem-
bers of the armed forces or security forces of Nica-
ragua, identified in the investigation described in
paragraph (1);
(3) Nicaragua has made substantial progress in
meeting the requirements set forth in section 527 of
the Foreign Relations Authorization Act, Fiscal
Years 1994 and 1995 (relating to expropriation of
United States property);
(4) substantial progress has been made in the
timely implementation of all recommendations made
by the Tripartite Commission with respect to indi-
viduals responsible for assassinations, including the
immediate suspension of all individuals from the
Sandinista Army and security forces who were
named in such recommendations, and the expedi-
tious prosecution of such individuals;
(5) all individuals responsible for the murders
of Jean Paul Genie, Arges Sequeira, and Enrique
Bermudez have been removed from the military and
337
security forces of Nicaragua, and judicial proceed-
ings against these individuals have been initiated;
(6) specific changes have been implemented
which have resulted in verifiable civilian control over
the Sandinista military, security forces, and police;
and
(7) genuine, effective, and concrete reforms in
the Nicaraguan judicial system have been initiated.
(b) CONTENTS OF CERTIFICATION.—
(1) IN GENERAL.—A certification made pursu-
ant to subsection (a) shall include a detailed ac-
counting of all evidence in support of the determina-
tions listed in paragraphs (1) through (7) of such
subsection.
(2) FORM.—A certification made pursuant to
subsection (a) shall be submitted in unclassified
form, and, to the extent necessary, classified form.
(c) EXCEPTION TO RESTRICTIONS.—The restrictions
on the availability of funds in subsection (a) shall not
apply to support for—
(1) programs facilitating the resolution of
United States citizen property claims;
(2) the International Commission for Support
and Verification of the Organization of American
338
States for human rights monitoring, related assist-
ance programs or election observation;
(3) independent human rights groups in Nica-
ragua;
(4) programs intended to ensure free and fair
elections in Nicaragua;
(5) democracy-building programs administered
through the National Endowment for Democracy
and related nongovernmental groups; or
(6) programs to promote civilian control of the
military.
(d) APPROPRIATE
CONGRESSIONAL
COMMITTEES
DEFINED.—For purposes of this section, the term ‘‘appro-
priate congressional committees’’ means the Committee on
International Relations and the Committee on Appropria-
tions of the House of Representatives and the Committee
on Foreign Relations and the Committee on Appropria-
tions of the Senate.
SEC. 3303. SENSE OF THE CONGRESS REGARDING RELA-
TIONS WITH BURMA.
It is the sense of the Congress that—
(1) official United States trade delegations to
Burma should be indefinitely suspended;
339
(2) visits to Burma by senior officials of the
United States Government should be minimized until
Aung San Suu Kyi is released from house arrest;
(3) the Secretary of Labor should submit to the
Congress a report on labor practices in Burma so
that Members of Congress can better inform con-
stituents, including stockholders and business lead-
ers of the United States companies which transact
commerce with Burma, on labor conditions in that
country;
(4) the Secretary of State should submit to the
Congress a report on resource exploitation and envi-
ronmental degradation in Burma;
(5) no assistance should be used for cooperative
counternarcotics efforts between the United States
and members of the State Law and Order Restora-
tion Committee (SLORC) regime;
(6) the United States should discourage the As-
sociation of Southeast Asian Nations (ASEAN) from
including the SLORC regime in ASEAN activities;
(7) the Secretary of State should submit to the
Congress a report which outlines a strategy for en-
couraging democratic transition in Burma; and
340
(8) the United States should encourage its al-
lies to restrict the relations of such allies with
Burma in accordance with this section.
SEC. 3304. DEBT RESTRUCTURING FOR EGYPT.
(a) FINDINGS.—The Congress makes the following
findings:
(1) The Government of Egypt owes the United
States Government over $6,000,000,000 from prior
economic assistance credit programs.
(2) Current annual debt service payments by
Egypt to the United States are approximately
$270,000,000, will climb in the near future to
$350,000,000, and will continue until the year 2021.
(3) Egypt’s debt service to the United States
results in reduced investment capital and slower eco-
nomic growth in Egypt.
(4) Restructuring Egypt’s debt burden, and
buying down Egypt’s debt, could substantially re-
duce over time Egypt’s requirement for economic as-
sistance.
(5) Addressing Egypt’s debt burden is in the
mutual interest of Egypt and the United States.
(b) REPORT.—(1) Not later than January 31, 1996,
the Secretary of State and the Secretary of the Treasury
shall develop and submit to the appropriate congressional
341
committee options to restructure Egypt’s debt, and buy
down, over a period of time through the use of funds au-
thorized to be appropriated under chapter 4 of part II of
the Foreign Assistance Act of 1961 (22 U.S.C. 2346 et
seq.; relating to the economic support fund), all outstand-
ing debt owed by the Government of Egypt to the United
States Government, including debt owed under develop-
ment assistance, agriculture, Export-Import Bank, and
Commodity Credit Corporation credit programs.
(2) The Secretary of State and the Secretary of the
Treasury shall develop the options required by paragraph
(1) in such a way as to enable the United States to reduce
assistance to Egypt in the future under chapter 4 of part
II of the Foreign Assistance Act of 1961 (22 U.S.C. 2346
et seq.; relating to the economic support fund). In the de-
velopment of such options, the Secretaries shall consult
with the Secretary of Commerce for the purpose of deter-
mining the impact of the options required under para-
graph (1) on the level of United States exports to Egypt.
(3) For purposes of this subsection, the term ‘‘appro-
priate congressional committees’’ means the Committee on
International Relations and the Committee on Appropria-
tions of the House of Representatives and the Committee
on Foreign Relations and the Committee on Appropria-
tions of the Senate.
342
SEC. 3305. PROHIBITION ON ASSISTANCE TO FOREIGN GOV-
ERNMENTS PROVIDING ASSISTANCE TO IRAN.
(a) FINDINGS.—The Congress makes the following
findings:
(1) Iran is engaged in an intensive effort to de-
velop nuclear weapons and some nations have indi-
cated that they are prepared to cooperate with Iran
in the nuclear field.
(2) The possession of nuclear weapons by Iran
would represent a serious threat to the peace and se-
curity of the entire Middle East region and an ex-
tremely serious challenge to United States interests
in that region.
(3) The United States places the highest prior-
ity on denying to Iran the capability to produce nu-
clear weapons and systems for the delivery of nu-
clear weapons and other weapons of mass destruc-
tion.
(4) The sale or transfer to Iran by any other
government or with the permission of any other gov-
ernment of technology that may be critical for Iran
to develop or deploy nuclear weapons is a serious
threat to United States interests.
(b) ADMISSION TO NATO.—It is the sense of the
Congress that the United States should vigorously oppose
the accession to the North Atlantic Treaty and the admis-
343
sion to the North Atlantic Treaty Organization of any
country which sells or licenses for sale any nuclear or dual-
use technology or any military weapons, equipment, am-
munition or munitions of any kind, including any item in-
cluded on any lists covered by the Missile Technology Con-
trol Regime, to Iran or to any country which the Secretary
of State has determined repeatedly provides support for
acts of international terrorism pursuant to section 6(j) of
the Export Administration Act of 1979.
(c) PROHIBITION
ON
UNITED
STATES
ASSIST-
ANCE.—No assistance authorized to be appropriated by
this Act or any other Act may be provided by any agency
of the United States Government to the government of
any country which sells or licenses for sale any nuclear
or dual-use technology or any military weapons, equip-
ment, ammunition or munitions of any kind, including any
item included on any lists covered by the Missile Tech-
nology Control Regime, to Iran or to any other country
which the Secretary of State has determined repeatedly
provides support for acts of international terrorism pursu-
ant to section 6(j) of the Export Administration Act of
1979.
(d) EXCEPTIONS.—The prohibition in subsection (c)
shall not apply to—
344
(1) assistance provided to Russia, Belarus,
Ukraine, or Kazakhstan under the authorities of the
Soviet Nuclear Threat Reduction Act of 1991 (title
II of Public Law 102–228; 105 Stat. 1691); and
(2) assistance provided under chapter 11 of
part I of the Foreign Assistance Act of 1961 (22
U.S.C. 2295 et seq.; relating to assistance for the
independent states of the former Soviet Union) for
the purposes of—
(A) humanitarian, disaster, or refugee re-
lief; or
(B) assisting democratic political reform
and rule of law activities, and assisting in the
creation of private sector and nongovernmental
organizations that are independent of govern-
ment ownership and control.
SEC. 3306. ASSISTANCE FOR PAKISTAN.
Section 620E(e) of the Foreign Assistance Act of
1961 (22 U.S.C. 2375(e)) is amended—
(1) by striking ‘‘No assistance shall’’ and in-
serting ‘‘(1) Except as provided in paragraph (2), no
assistance shall’’; and
(2) by adding at the end the following new
paragraph:
346
for fiscal year 1997 and each subsequent fiscal year only
if the President certifies to the Congress for such fiscal
year that the Government of Pakistan is fully cooperating
with United States counter-narcotics assistance programs
and policies.’’.
SEC. 3307. RETURN OF MILITARY EQUIPMENT OF PAKI-
STAN.
It is the sense of the Congress that—
(1) the inability of the President since October
1, 1990, to make the necessary certification under
section 620E(e) of the Foreign Assistance Act of
1961 (relating to the nuclear activities of Pakistan)
has prevented the delivery of military aircraft for
which Pakistan made nonrefundable cash payments
to contractors and unnecessarily complicated the
achievement of United States foreign policy and non-
proliferation objectives in South Asia;
(2) in the absence of a Presidential certification
for Pakistan under section 620E(e) of such Act, the
United States should make a determined effort to
find a third party buyer for the such military air-
craft and should reimburse Pakistan with any pro-
ceeds derived from a sale to such third party, up to
the amount paid by Pakistan for such military air-
craft; and
347
(3) with respect to other military equipment im-
ported into the United States from Pakistan prior to
May 1, 1991, for repair or modification by the De-
partment of Defense, the return of such military
equipment, including spare parts thereof, or equiva-
lent equipment or spare parts originally owned by
another country, does not constitute a transfer of
military equipment under the terms of section
620E(e) of such Act, provided such military equip-
ment or spare parts are returned in an unrepaired
state or without modifications for which they were
originally imported into the United States.
SEC. 3308. ELIGIBILITY OF PANAMA UNDER ARMS EXPORT
CONTROL ACT.
The Government of the Republic of Panama shall be
eligible to purchase defense articles and defense services
under the Arms Export Control Act (22 U.S.C. 2751 et
seq.), except as otherwise specifically provided by law.
SEC. 3309. FUTURE OF THE UNITED STATES MILITARY
PRESENCE IN PANAMA.
(a) FINDINGS.—The Congress makes the following
findings:
(1) The Panama Canal is a vital strategic asset
to the United States, its allies, and the world.
348
(2) The Treaty on the Permanent Neutrality
and Operation of the Panama Canal signed on Sep-
tember 7, 1977, provides that Panama and the
United States have the responsibility to assure that
the Panama Canal will remain open and secure.
(3) Such Treaty also provides that each of the
two countries shall, in accordance with their respec-
tive constitutional processes, defend the Canal
against any threat to the regime of neutrality, and
consequently shall have the right to act against any
aggression or threat directed against the Canal or
against the peaceful transit of vessels through the
Canal.
(4) The United States instrument of ratifica-
tion of such Treaty includes specific language that
the two countries should consider negotiating future
arrangements or agreements to maintain military
forces necessary to fulfill the responsibility of the
two countries of maintaining the neutrality of the
Canal after 1999.
(5) The Government of Panama, in the bilateral
Protocol of Exchange of instruments of ratification,
expressly ‘‘agreed upon’’ such arrangements or
agreements.
349
(6) The United States Navy depends upon the
Panama Canal for rapid transit in times of emer-
gency, as demonstrated during World War II, the
Korean War, the Vietnam conflict, the Cuban Mis-
sile Crisis, and the Persian Gulf conflict.
(7) Drug trafficking and money laundering
have proliferated in the Western Hemisphere since
the Treaty on the Permanent Neutrality and Oper-
ation of the Panama Canal was signed on September
7, 1977, and such trafficking and laundering poses
a grave threat to peace and security in the region.
(8) Certain facilities now utilized by the United
States Armed Forces in Panama are critical to com-
bat the trade in illegal drugs.
(9) The United States and Panama share com-
mon policy goals such as strengthening democracy,
expanding economic trade, and combating illegal
narcotics throughout Latin America.
(10) The Government of Panama has dissolved
its military forces and has maintained only a civilian
police organization to defend the Panama Canal
against aggression.
(11) Certain public opinion polls in Panama
suggest that many Panamanians desire a continued
United States military presence in Panama.
350
(b) SENSE OF THE CONGRESS.—It is the sense of
the Congress that—
(1) the President should negotiate an agree-
ment with the Government of Panama—
(A) to allow the stationing of United
States Armed Forces in Panama beyond De-
cember 31, 1999; and
(B) to ensure that the United States will
be able to act after December 31, 1999, to
maintain the security of the Panama Canal and
guarantee its regular operation, consistent with
the Panama Canal Treaty, the Treaty concern-
ing the Permanent Neutrality and Operation of
the Panama Canal, and the resolutions of ratifi-
cation thereto; and
(2) the President should consult with the Con-
gress throughout the negotiations described in para-
graph (1).
SEC. 3310. PEACE AND STABILITY IN THE SOUTH CHINA
SEA.
(a) FINDINGS.—The Congress finds the following:
(1) The South China Sea is a critically impor-
tant waterway through which 25 percent of the
world’s ocean freight and 70 percent of Japan’s en-
ergy supplies transit.
351
(2) The South China Sea serves as a crucial sea
lane for United States Navy ships moving between
the Pacific and Indian Oceans, particularly in time
of emergency.
(3) There are a number of competing claims to
territory in the South China Sea.
(4) The 1992 Manila Declaration adhered to by
the Association of South East Asian Nations, the
Socialist Republic of Vietnam, and the People’s Re-
public of China calls for all claimants to territory in
the South China Sea to resolve questions of bound-
aries through peaceful negotiations.
(5) The legislature of the People’s Republic of
China has declared the entire South China Sea to be
Chinese territorial waters.
(6) The armed forces of the People’s Republic
of China have asserted China’s claim to the South
China Sea through the kidnapping of citizens of the
Republic of the Philippines and the construction of
military bases on territory claimed by the Phil-
ippines.
(7) These acts of aggression committed by the
armed forces of the People’s Republic of China
against citizens of the Philippines are contrary to