To limit United States assistance for Ethiopia and Eritrea if those countries are not in compliance with the terms and conditions of agreements entered into by the two countries to end hostilities and provide for a demarcation of the border between the two countries, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Resolution of the Ethiopia-Eritrea 
Border Dispute Act of 2004''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Algiers agreements.--The term ``Algiers Agreements'' 
        means the Cessation of Hostilities Agreement and the 
        Comprehensive Peace Agreement.
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Foreign Relations of the Senate.
            (3) Cessation of hostilities agreement.--The term 
        ``Cessation of Hostilities Agreement'' means the Agreement on 
        the Cessation of Hostilities signed on June 18, 2000, in 
        Algiers, Algeria, by the Government of Ethiopia and the 
        Government of Eritrea that established a temporary 
        demilitarized security zone within Eritrea to be enforced by 
        the United Nations Peacekeeping Mission in Ethiopia and Eritrea 
        (UNMEE).
            (4) Comprehensive peace agreement.--The term 
        ``Comprehensive Peace Agreement'' means the agreement signed on 
        December 12, 2000, in Algiers, Algeria, by the Government of 
        Ethiopia and the Government of Eritrea, under the auspices of 
        the Organization of African Unity (OAU), that provided for an 
        end to military hostilities between the two countries, 
        assurances by the countries to refrain from the threat or use 
        of force against each other, and established a neutral Boundary 
        Commission to delimit and demarcate the border between the two 
        countries.
            (5) Economic assistance.--The term ``economic assistance'' 
        means--
                    (A) assistance under chapter 1 of part I of the 
                Foreign Assistance Act of 1961 (relating to development 
                assistance); and
                    (B) assistance under chapter 4 of part II of the 
                Foreign Assistance Act of 1961 (relating to economic 
                support fund assistance).
            (6) Military assistance and arms transfers.--The term 
        ``military assistance and arms transfers'' means--
                    (A) assistance under chapter 2 of part II of the 
                Foreign Assistance Act of 1961 (relating to military 
                assistance), including the transfer of excess defense 
                articles under section 516 of that Act;
                    (B) assistance under chapter 5 of part II of the 
                Foreign Assistance Act of 1961 (relating to 
                international military education and training or 
                ``IMET''), including military education and training 
                for civilian personnel under section 541 of that Act 
                (commonly referred to as ``Expanded IMET''); and
                    (C) assistance under the ``Foreign Military 
                Financing'' Program under section 23 of the Arms Export 
                Control Act and the transfer of defense articles, 
                defense services, design and construction services, or 
                any other defense-related training under that Act.

SEC. 3. FINDINGS.

    Congress makes the following findings:
            (1) On May 6, 1998, a conflict erupted between Ethiopia and 
        Eritrea, two of the world's poorest countries.
            (2) The two-year war claimed 100,000 lives, displaced more 
        than 1,000,000 people, cost Ethiopia more than $2,900,000,000, 
        and caused a 62 percent decline in food production in Eritrea.
            (3) Millions of dollars were diverted from much needed 
        development projects into military activities and weapons 
        procurements at a time when severe drought threatened a famine 
        in both Ethiopia and Eritrea, as bad as the famine in 1984 in 
        those countries, putting more than 13,000,000 lives at risk.
            (4) On June 18, 2000, Prime Minister Meles Zenawi of the 
        Federal Democratic Republic of Ethiopia and President Isaias 
        Afewerki of the State of Eritrea signed the Cessation of 
        Hostilities Agreement in Algiers, Algeria. On December 12, 
        2000, the two countries also signed the Comprehensive Peace 
        Agreement in Algiers under the auspices of the Organization of 
        African Unity (OAU) and in the presence of United Nations 
        Secretary General Kofi Annan and President Abdel-Aziz 
        Boutheflika of Algeria.
            (5) Article 4.2 of the Comprehensive Peace Agreement states 
        the following: ``The parties agree that a neutral Boundary 
        Commission composed of five members shall be established with a 
        mandate to delimit and demarcate the colonial treaty border 
        [between the two countries] based on pertinent colonial 
        treaties (1900, 1902 and 1908) and applicable international 
        law.''.
            (6) Article 4.15 of the Comprehensive Peace Agreement 
        states the following: ``The parties agree that the delimitation 
        and demarcation determinations of the Commission shall be final 
        and binding. Each party shall respect the border so determined, 
        as well as territorial integrity and sovereignty of the other 
        party.''.
            (7)(A) The President of the United Nations Security 
        Council, on behalf of the Security Council, confirmed the 
        Security Council's endorsement of the terms and conditions of 
        the Algiers Agreements, with special reference to the neutral 
        Boundary Commission described in Article 4.2 of the 
        Comprehensive Peace Agreement and its mandate.
            (B) In addition, the Security Council reaffirmed its 
        support for the Algiers Agreements in United Nations Security 
        Council Resolutions 1312 (July 31, 2000), 1320 (September 15, 
        2000), 1344 (March 15, 2001), 1369 (September 14, 2001), 1398 
        (March 15, 2002), 1430 (August 14, 2002), 1434 (September 6, 
        2002), 1466 (March 14, 2003), 1507 (September 12, 2003), 1531 
        (March 12, 2004), and 1560 (September 14, 2004).
            (8) On April 13, 2002, the neutral Boundary Commission 
        announced its ``Delimitation Decision'', reiterating that both 
        parties had agreed that it would be ``final and binding''.
            (9) Following the decision of the Boundary Commission that 
        the heavily disputed town of Badme would be zoned to the 
        Eritrean side of the new border, Foreign Minister Seyoum Mesfin 
        of Ethiopia announced on April 15, 2003, that ``[n]o-one 
        expects the [G]overnment of Ethiopia to accept these mistakes 
        committed by the Commission''. Further, the Ethiopian Ministry 
        of Information released a statement accusing the Boundary 
        Commission of an ``unfair tendency'' in implementing the border 
        ruling and ``misinterpreting'' the Algiers Agreements.
            (10) In his March 6, 2003, ``Progress Report'' to the 
        United Nations Security Council, Secretary General Kofi Annan 
        reported that Prime Minister Zenawi of Ethiopia had expressed 
        to his Special Representative, Legwaila Joseph Legwaila, that 
        ``if its concerns were not properly addressed Ethiopia might 
        eventually reject the demarcation-related decisions of the 
        Commission''.
            (11) On September 19, 2003, Prime Minister Zenawi wrote to 
        United Nations Secretary General Kofi Annan and stated: ``As 
        the Commission's decisions could inevitably lead the two 
        countries into another round of fratricidal war, the Security 
        Council has an obligation, arising out of the UN Charter, to 
        avert such a threat to regional peace and stability.''.
            (12) On October 3, 2003, the United Nations Security 
        Council wrote to Prime Minister Zenawi and stated: ``The 
        members of the Security Council therefore wish to convey to you 
        their deep regret at the intention of the government of 
        Ethiopia not to accept the entirety of the delimitation and 
        demarcation decision as decided by the boundary commission. 
        They note in particular, that Ethiopia has committed itself 
        under the Algiers Agreements to accept the boundary decision as 
        final and binding.''.
            (13)(A) In an attempt to resolve the continued impasse, 
        United Nations Secretary General Kofi Annan offered his good 
        offices to the two parties and appointed Mr. Lloyd Axworthy, 
        former Minister for Foreign Affairs of Canada, to serve as his 
        Special Envoy for Ethiopia and Eritrea on January 29, 2004.
            (B) Despite the assurances of the United Nations Secretary 
        General, including in his Progress Reports of March 6, 2004, 
        and July 7, 2004, that the appointment of the Special Envoy was 
        ``not intended to establish an alternative mechanism to the 
        Boundary Commission or to renegotiate its final and binding 
        decision'', President Isaias of Eritrea has refused to meet 
        with the Special Envoy or otherwise engage in political 
        dialogue aimed at resolving the current impasse.
            (14) In his July 7, 2004, ``Progress Report'' to the United 
        Nations Security Council, Secretary General Kofi Annan reported 
        that the Ethiopian Ministry of Foreign Affairs continues to 
        reiterate its position that ``the current demarcation line 
        would disrupt the lives of border communities and lead to 
        future conflict''.
            (15) In that same report, Secretary General Annan reminded 
        both governments that they themselves ``entrusted the Boundary 
        Commission with the entire demarcation process, drew up its 
        mandate and selected its Commissioners'' and called upon the 
        Government of Ethiopia to ``unequivocally restate its 
        acceptance of the Boundary Commission's decision, appoint field 
        liaison officers, and pay its dues to and otherwise cooperate 
        fully and expeditiously with the Commission''.

SEC. 4. SENSE OF CONGRESS.

    It is the sense of Congress that Ethiopia and Eritrea--
            (1) should take all appropriate actions to implement the 
        Algiers Agreements, including by accepting the ``Delimitation 
        Decision'' issued by the neutral Boundary Commission on April 
        13, 2002, with respect to the boundary between the two 
        countries; and
            (2) should fully cooperate with the United Nations Special 
        Envoy for Ethiopia-Eritrea, Lloyd Axworthy, whose mandate is 
        the implementation of the Algiers Agreements, the Delimitation 
        Decision of the Boundary Commission, and the relevant 
        resolutions and decisions of the United Nations Security 
        Council.

SEC. 5. DECLARATIONS OF POLICY.

    Congress makes the following declarations:
            (1) Congress expresses its support for the Boundary 
        Commission established by the Comprehensive Peace Agreement and 
        calls on the international community to continue to support the 
        United Nations trust fund established to facilitate the process 
        of demarcation between Ethiopia and Eritrea and the economic 
        and social transition of affected communities to new borders 
        determined by the Commission.
            (2) Congress further declares that it shall be the policy 
        of the United States to limit United States assistance for 
        Ethiopia or Eritrea if either such country is not in compliance 
        with, or is not taking significant steps to comply with, the 
        terms and conditions of the Algiers Agreements.
            (3) Congress strongly condemns statements by senior 
        Ethiopian officials criticizing the Boundary Commission's 
        decision and calls on the Government of Ethiopia to immediately 
        and unconditionally fulfill its commitments under the Algiers 
        Agreements, publicly accept the Boundary Commission's decision, 
        and fully cooperate with the implementation of such decision.
            (4) Congress recognizes the acceptance by the Government of 
        Eritrea of the Boundary Commission's decision as final and 
        binding, but condemns the Government of Eritrea's continued 
        refusal to take advantage of the good offices offered by the 
        United Nations Secretary General, to work with Special Envoy 
        Lloyd Axworthy, or to otherwise engage in dialogue aimed at 
        resolving the current impasse, and calls on the President of 
        Eritrea to do so without further delay.

SEC. 6. LIMITATIONS ON UNITED STATES ASSISTANCE.

    (a) Limitation on Economic Assistance.--Economic assistance may 
only be provided for Ethiopia or Eritrea for any period of time for 
which the President determines that Ethiopia or Eritrea (as the case 
may be) is in compliance with, or is taking significant steps to comply 
with, the terms and conditions of the Algiers Agreements.
    (b) Limitation on Military Assistance and Arms Transfers.--Military 
assistance and arms transfers may only be provided for Ethiopia or 
Eritrea for any period of time for which the President determines that 
Ethiopia or Eritrea (as the case may be) is in compliance with, or is 
taking significant steps to comply with, the terms and conditions of 
the Algiers Agreements.
    (c) Exceptions.--The limitation on assistance under subsections (a) 
and (b) shall not apply with respect to humanitarian assistance (such 
as food or medical assistance), assistance to protect or promote human 
rights, and assistance to prevent, treat, and control HIV/AIDS.
    (d) Waiver.--The President may waive the application of subsection 
(a) or (b) with respect to Ethiopia or Eritrea, particularly for the 
provision of peacekeeping assistance or counterterrorism assistance, if 
the President determines and certifies to the appropriate congressional 
committees that it is in the national interests of the United States to 
do so.

SEC. 7. INTEGRATION AND BORDER DEVELOPMENT INITIATIVE.

    (a) Assistance.--After the date on which the border demarcation 
between Ethiopia and Eritrea is finalized (consistent with the decision 
of the Boundary Commission established by the Comprehensive Peace 
Agreement), the President shall establish and carry out an initiative 
in conjunction with the Governments of Ethiopia and Eritrea under which 
assistance is provided to reduce the adverse humanitarian impacts on 
the populations of the border region, prevent conflict which might 
result from the demarcation process, and further social and economic 
development projects that are identified and evaluated by local 
authorities to establish sustainable integration, development, and 
trade at the border region.
    (b) Project Examples.--Examples of development projects referred to 
in subsection (a) are--
            (1) startup initiatives, including farming projects, to 
        promote community economic development and the free flow of 
        trade across the border between the two countries;
            (2) generous compensation packages for families displaced 
        by the border demarcation and support for relocation;
            (3) effective mechanisms for managing movement of persons 
        across the border between the two countries;
            (4) an increase in the supply of basic services in the 
        border region, including water, sanitation, housing, health 
        care, and education; and
            (5) support for local efforts to reinforce peace and 
        reconciliation in the border region.

SEC. 8. REPORT.

    Until the date on which the border demarcation between Ethiopia and 
Eritrea is finalized, the President shall prepare and transmit on a 
regular basis to the appropriate congressional committees a report that 
contains a description of progress being made toward such demarcation, 
including the extent to which Ethiopia and Eritrea are in compliance 
with, or are taking significant steps to comply with, the terms and 
conditions of the Algiers Agreements, and are otherwise cooperating 
with internationally-sanctioned efforts to resolve the current impasse.

            Passed the House of Representatives October 8, 2004.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.

Summary: Resolution of the Ethiopia-Eritrea Border Dispute Act of 2004 - (Sec. 4) Expresses the sense of Congress that both Ethiopia and Eritrea should: (1) take all appropriate actions to implement the Algiers Agreements, including by accepting the "Delimitation Decision" issued by the neutral Boundary Commission on April 13, 2002, with respect to the boundary between the two countries; and (2) fully cooperate with the United Nations (UN) Special Envoy for Ethiopia-Eritrea.

(Sec. 5) Declares that: (1) Congress expresses its support for the Boundary Commission established by the Comprehensive Peace Agreement and calls on the international community to continue to support the UN trust fund to facilitate the demarcation process between Ethiopia and Eritrea and the economic and social transition of affected communities to new borders; (2) it shall be U.S. policy to limit U.S. assistance for Ethiopia or Eritrea if either country is not in compliance with, or is not taking significant steps to comply with the Algiers Agreements; and (3) Congress strongly condemns statements by senior Ethiopian officials criticizing the Boundary Commission's decision and calls on the Government of Ethiopia to accept the Commission's decision.

(Sec. 6) States that economic and military assistance for Ethiopia or Eritrea may only be provided for any period of time for which the President determines that either Ethiopia or Eritrea is in compliance with, or is taking significant steps to comply with, the Algiers Agreements. Authorizes presidential waiver of such provision for national security purposes. Exempts from such provision assistance for humanitarian or human rights purposes, or for HIV/AIDS control.

(Sec. 7) Directs the President to establish, after finalization of the Ethiopian-Eritrean border demarcation, an integration and border development initiative, including projects to: (1) increase basic services; (2) develop free trade and community development; and (3) reinforce peace and reconciliation.

(Sec. 8) Sets forth presidential reporting requirements.