Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998
PL 105-118 (H.R.2159), enacted 11/26/1997

I l l STAT. 2386 
PUBLIC LAW 105-118—NOV. 26, 1997 
Public Law 105-118 
105th Congress 
Nov. 26, 1997 
[H.R. 2159] 
Foreign 
Operations, 
Export 
Financing, and 
Related 
Programs 
Appropriations 
Act, 1998. 
An Act 
Making appropriations for foreign operations, export financing, and related programs 
for the fiscal year ending September 30, 1998, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, That the 
following sums are appropriated, out of any money in the Treasury 
not otherwise appropriated, for the fiscal year ending September 
30, 1998, and for other purposes, namely: 
TITLE I—EXPORT AND INVESTMENT ASSISTANCE 
EXPORT-IMPORT BANK OF THE UNITED STATES 
The Export-Import Bank of the United States is authorized 
to make such expenditures within the limits of funds and borrowing 
authority available to such corporation, and in accordance with 
law, and to make such contracts and commitments without regard 
to fiscal year limitations, as provided by section 104 of the Govern-
ment Corporation Control Act, as may be necessary in carrying 
out the program for the current fiscal year for such corporation: 
Provided, That none of the fiinds available during the current 
fiscal year may be used to make expenditures, contracts, or commit-
ments for the export of nuclear equipment, fuel, or technology 
to any country other than a nuclear-weapon state as defined in 
Article IX of the Treaty on the Non-Proliferation of Nuclear Weap-
ons eligible to receive economic or military assistance under this 
Act that has detonated a nuclear explosive after the date of enact-
ment of this Act. 
SUBSIDY APPROPRIATION 
For the cost of direct loans, loan guarantees, insurance, and 
tied-aid grants as authorized by section 10 of the Export-Import 
Bank Act of 1945, as amended, $683,000,000 to remain available 
until September 30, 2001: Provided, That such costs, including 
the cost of modifying such loans, shall be as defined in section 
502 of the Congressional Budget Act of 1974: Provided 
further, 
That such sums shall remain available until 2013 for the disburse-
ment of direct loans, loan guarantees, insurance £ind tied-aid grants 
obligated in fiscal years 1998 and 1999: Provided further. That 
up to $50,000,000 of fiinds appropriated by this paragraph shall 
remain available until expended and may be used for tied-aid 
grant purposes: Provided further, That none of the fiinds appro-
priated by this Act or any prior Act appropriating funds for foreign 
operations, export financing, or related programs for tied-aid credits 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2387 
or grants may be used for any other purpose except through the 
regular notification procedures of the Committees on Appropria-
tions: Provided further, That funds appropriated by this paragraph 
are made available notwithstanding section 2(b)(2) of the Export-
Import Bgink Act of 1945, in connection with the purchase or lease 
of any product by any East European country, any Baltic State, 
or any agency or national thereof. 
ADMINISTRATIVE EXPENSES 
For administrative expenses to carry out the direct and guaran-
teed loan and insurance programs (to be computed on an accrual 
basis), including hire of passenger motor vehicles and services as 
authorized by 5 U.S.C. 3109, and not to exceed $20,000 for official 
reception and representation expenses for members of the Board 
of Directors, $48,614,000: Provided, 
That necessary expenses 
(including special services performed on a contract or fee basis, 
but not including other personal services) in connection with the 
collection of moneys owed the Export-Import Bank, repossession 
or sale of pledged collateral or other assets acquired by the Export-
Import Bank in satisfaction of moneys owed the Export-Import 
Bank, or the investigation or appraisal of any property, or the 
evaluation of the legal or technical aspects of any transaction for 
which an application for a loan, guarantee or insurance commitment 
has been made, shall be considered nonadministrative expenses 
for the purposes of this heading: Provided further. That, notwith- Termination 
standing subsection (b) of section 117 of the Export Enhancement ****f.„„ 
Act of 1992, subsection (a) thereof shall remain in effect until 
12 use 635a 
October 1,1998. 
''°^' 
OVERSEAS PRIVATE INVESTMENT CORPORATION 
NONCREDIT ACCOUNT 
The Overseas Private Investment Corporation is authorized 
to make, without regard to fiscal year limitations, as provided 
by 31 U.S.C. 9104, such expenditures and commitments within 
the limits of funds available to it and in accordance with law 
as may be necessary: Provided, That the amount available for 
administrative expenses to carry out the credit and insurance pro-
grams (including an amount for official reception and representation 
expenses which shall not exceed $35,000) shall not exceed 
$32,000,000: Provided further, 
That project-specific transaction 
costs, including direct and indirect costs incurred in claims settle-
ments, and other direct costs associated with services provided 
to specific investors or potential investors pursuant to section 234 
of the Foreign Assistance Act of 1961, shall not be considered 
administrative expenses for the purposes of this heading. 
PROGRAM ACCOUNT 
For the cost of direct and guarginteed loans, $60,000,000, as 
authorized by section 234 of the Foreign Assistance Act of 1961 
to be derived by transfer from the Overseas Private Investment 
Corporation Noncredit Account: Provided, That such costs, including 
the cost of modifying such loans, shall be as defined in section 
502 of the Congressional Budget Act of 1974: Provided 
further. 
That such sums shall be available for direct loan obligations and 
loan guaranty commitments incurred or made during fiscal years 
I l l STAT. 2388 
PUBLIC LAW 105-118—NOV. 26, 1997 
1998 and 1999: Provided further. That such sums shall remain 
available through fiscal year 2006 for the disbursement of direct 
and guaranteed loans obligated in fiscal year 1998, and through 
fiscal year 2007 for the disbursement of direct and guaranteed 
loans obligated in fiscal year 1999: Provided farther. That in addi-
tion, such sums as may be necessary for administrative expenses 
to carry out the credit program may be derived from amounts 
available for administrative expenses to carry out the credit and 
insurance programs in the Overseas Private Investment Corpora-
tion Noncredit Account and merged with said account. 
FUNDS APPROPRIATED TO THE PRESIDENT 
TRADE AND DEVELOPMENT AGENCY 
For necessary expenses to carry out the provisions of section 
661 of the Foreign Assistance Act of 1961, $41,500,000, to remain 
available until September 30, 1999: Provided, That the Trade and 
Development Agency may receive reimbursements from corporations 
and other entities for the costs of grants for feasibility studies 
and other project planning services, to be deposited as an offsetting 
collection to this account and to be available for obligation until 
September 30, 1999, for necessary expenses under this paragraph: 
Provided further, That such reimbursements shall not cover, or 
be allocated against, direct or indirect administrative costs of the 
agency. 
TITLE II—BILATERAL ECONOMIC ASSISTANCE 
FUNDS APPROPRIATED TO THE PRESIDENT 
For expenses necessary to enable the President to carry out 
the provisions of the Foreign Assistance Act of 1961, and for other 
purposes, to remain available until September 30, 1998, unless 
otherwise specified herein, as follows: 
AGENCY FOR INTERNATIONAL DEVELOPMENT 
CHILD SURVIVAL AND DISEASE PROGRAMS FUND 
For necessary expenses to carry out the provisions of chapters 
1 and 10 of part I of the Foreign Assistance Act of 1961, for 
child survival, basic education, assistance to combat tropical and 
other diseases, and related activities, in addition to funds otherwise 
available for such purposes, $650,000,000, to remain available until 
expended: Provided, That this amount shall be made available 
for such activities as: (1) immunization programs; (2) oral rehydra-
tion programs; (3) health and nutrition programs, and related edu-
cation programs, which address the needs of mothers and children; 
(4) water and sanitation programs; (j5) assistance for displaced 
and orphaned children; (6) programs for the prevention, treatment, 
and control of, and research on, tuberculosis, HIV/AIDS, polio, 
malaria and other diseases; (7) up to $98,000,000 for basic education 
programs for children; and (8) a contribution on a grant basis 
to the United Nations Children's Fimd (UNICEF) pursuant to sec-
tion 301 of the Foreign Assistance Act of 1961. 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2389 
AGENCY FOR INTERNATIONAL DEVELOPMENT 
DEVELOPMENT ASSISTANCE 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses to carry out the provisions of sections 
103 through 106 and chapter 10 of part I of the Foreign Assistance 
Act of 1961, title V of the International Security and Development 
Cooperation Act of 1980 (Public Law 96-533) and the provisions 
of section 401 of the Foreign Assistance Act of 1969, $1,210,000,000, 
to remain available until September 30, 1999: Provided, That of 
the amount appropriated under this heading, up to $22,000,000 
may be made available for the Inter-American Foundation and 
shall be apportioned directly to that agency: Provided further, That 
of the amount appropriated under this heading, up to $14,000,000 
may be made available for the African Development Foundation 
and shall be apportioned directly to that agency: Provided 
further, 
That none of the funds made available in this Act nor any unobli-
gated balances from prior appropriations may be made available 
to any organization or program which, as determined by the Presi-
dent of the United States, supports or participates in the manage-
ment of a program of coercive abortion or involiintary sterilization: 
Provided further, That none of the funds made available under 
this heading may be used to pay for the performance of abortion 
as a method of family planning or to motivate or coerce any person 
to practice abortions; and that in order to reduce reliance on abor-
tion in developing nations, funds shall be available only to voluntary 
family planning projects which offer, either directly or through 
referral to, or information about access to, a broad range of family 
planning methods and services: Provided further, That in awarding 
grants for natural family planning under section 104 of the Foreign 
Assistance Act of 1961 no applicemt shall be discriminated against 
because of such applicant's religious or conscientious commitment 
to offer only natural family planning; and, additionally, all such 
applicants shall comply with the requirements of the previous pro-
viso: Provided further, That for purposes of this or any other Act 
authorizing or appropriating funds for foreign operations, export 
financing, and related programs, the term "motivate", as it relates 
to family planning assistance, shall not be construed to prohibit 
the provision, consistent with local law, of information or counseling 
about all pregnancy options: Provided further, That nothing in 
this paragraph shall be construed to alter any existing statutory 
prohibitions against abortion under section 104 of the Foreign 
Assistance Act of 1961: Provided further. That, notwithstanding 
section 109 of the Foreign Assisteince Act of 1961, of the funds 
appropriated under this heading in this Act, and of the unobligated 
balances of funds previously appropriated under this heading, not 
to exceed $2,500,000 shall be transferred 
to 
"International 
Organizations and Programs" for a contribution to the International 
Fund for Agricultural Development (IFAD), and that any such 
transfer of funds shall be subject to the regular notification proce-
dures of the Committees on Appropriations: Provided further. That 
of the funds appropriated under this heading that are made avail-
able for assistance programs for displaced and orphaned children 
and victims of war, not to exceed $25,000, in addition to funds 
otherwise available for such purposes, may be used to monitor 
and provide oversight of such programs: Provided further. That 
I l l STAT. 2390 
PUBLIC LAW 105-118—NOV. 26, 1997 
22 u s e 2151u 
note. 
none of the fiinds made available under this heading may be used 
for any activity which is in contravention to the Convention on 
International Trade in Endangered Species of Flora and Fauna 
(CITES). 
PRIVATE AND VOLUNTARY ORGANIZATIONS 
None of the funds appropriated or otherwise made available 
by this Act for development assistance may be made available 
to any United States private and voluntary organization, except 
any cooperative development organization, which obtains less than 
20 percent of its total annual funding for international activities 
from sources other than the United States Government: Provided, 
That the requirements of the provisions of section 123(g) of the 
Foreign Assistance Act of 1961 and the provisions on private and 
voluntary organizations in title II of the Foreign Assistance and 
Related Programs Appropriations Act, 1985 (as enacted in Public 
Law 98-473) shall be superseded by the provisions of this section, 
except that the authority contained in the last sentence of section 
123(g) may be exercised by the Administrator with regard to the 
requirements of this paragraph. 
Funds appropriated or otherwise made available under title 
II of this Act should be made available to private and voluntary 
organizations at a level which is at least equivalent to the level 
provided in fiscal year 1995. Such private and voluntary organiza-
tions shall include those which operate on a not-for-profit basis, 
receive contributions from private sources, receive voluntary support 
from the public and are deemed to be among the most cost-effective 
and successful providers of development assistance. 
CYPRUS 
Of the fimds appropriated under the headings "Development 
Assistance" 
and 
"Economic 
Support 
Fund", 
not 
less 
than 
$15,000,000 shall be made available for C5^rus to be used only 
for scholarships, administrative support of the scholarship program, 
bicommunal projects, and measures aimed at reunification of the 
island and designed to reduce tensions and promote peace and 
cooperation between the two communities on Cyprus. 
BURMA 
Of the funds appropriated under the headings "Development 
Assistance" and "Economic Support Fund", not less than $5,000,000 
shall be made available to support activities in Burma, along the 
Burma-Thailand border, and for activities of Burmese student 
groups and other organizations located outside Burma: Provided, 
That funds made available for Burma related activities under this 
heading may be made available notwithstanding any other provision 
of law: Provided further, That provision of such funds shall be 
made available subject to the regular notification procedures of 
the Committees on Appropriations. 
CAMBODIA 
None of the fimds appropriated in this Act may be made avail-
able for the Government of Cambodia: Provided, That the restric-
tions under this heading shall not apply to humanitarian, demining 
or election-related programs or activities: Provided further. That 
-^.-~ 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2391 
such funds shall be subject to the regular notification procedures 
of the Committees on Appropriations: Provided further, That 30 President, 
days after enactment of this Act, the President shall report to Reports, 
the Committees on Appropriations on the results of the FBI inves-
tigation into the bombing attack in Phnom Penh on March 30, 
1997. 
INTERNATIONAL DISASTER ASSISTANCE 
For necessary expenses for international disaster relief, 
rehabilitation, and reconstruction assistance pursuant to section 
491 of the Foreign Assistsince Act of 1961, as 
amended, 
$190,000,000, to remain available until expended. 
DEBT RESTRUCTURING 
For the cost, as defined in section 502 of the Congressional 
Budget Act of 1974, of modif3dng direct loans and loan guarantees, 
as the President may determine, for which funds have been appro-
priated or otherwise made available for programs within the Inter-
national Affairs Budget Function 150, including the cost of selling, 
reducing, or canceling amounts, through debt buybacks and swaps, 
owed to the United States as a result of concessional loans made 
to eligible Latin American and Caribbean countries, pursuant to 
part IV of the Foreign Assistance Act of 1961; of modifjdng 
concessional loans extended to least developed countries, as author-
ized under section 411 of the Agricultural Trade Development and 
Assistance Act of 1954, as amended; and of modifying any obliga-
tion, or portion of such obligation for Latin American countries 
to pay for purchases of United States agricultural commodities 
guaranteed by the Commodity Credit Corporation under export 
credit guarantee programs authorized pursuant to section 5(f) of 
the Commodity Credit Corporation Charter Act of June 29, 1948, 
as amended, section 4(b) of the Food for Peace Act of 1966, as 
amended (Public Law 89-808), or section 202 of the Agricultural 
Trade Act of 1978, as amended (Public Law 95-501); $27,000,000, 
to remain available until expended: Provided, That not to exceed 
$1,500,000 of such funds may be used for implementation of 
improvements in the foreign credit reporting system of the United 
States Government. 
MICRO 
AND 
SMALL 
ENTERPRISE 
DEVELOPMENT 
PROGRAM 
ACCOUNT 
For the cost of direct loans and loan guarantees, $1,500,000, 
as authorized by section 108 of the Foreign Assistance Act of 1961, 
as amended: Provided, That such costs shall be as defined in section 
502 of the Congressional Budget Act of 1974: Provided 
further, 
That guarantees of loans made under this heading in support 
of microenterprise activities may guarantee up to 70 percent of 
the principal amount of any such loans notwithstanding section 
108 of the Foreign Assistsmce Act of 1961. In addition, for adminis-
trative expenses to carry out programs under this heading, 
$500,000, all of which may be transferred to and merged with 
the appropriation for Operating Expenses of the Agency for Inter-
national Development: Provided further, That funds made available 
under this heading shall remain available until September 30, 
1999. 
I l l STAT. 2392 
PUBLIC LAW 105-118—NOV. 26, 1997 
URBAN 
AND 
ENVIRONMENTAL 
CREDIT 
PROGRAM 
ACCOUNT 
For the cost, as defined in section 502 of the Congressional 
Budget Act of 1974, of guaranteed loans authorized by sections 
221 and 222 of the Foreign Assistance Act of 1961, including the 
cost of guaranteed loans designed to promote the urban and environ-
mental policies and objectives of part I of such Act, $3,000,000, 
to remain available until September 30, 1999: Provided, That these 
funds are available to subsidize loan principal, 100 percent of which 
shall be guaranteed, pursuant to the authority of such sections. 
In addition, for administrative expenses to carry out guaranteed 
loan programs, $6,000,000, all of which may be transferred to 
and merged with the appropriation for Operating Expenses of the 
Agency for International Development: Provided further, 
That 
commitments to guarantee loans under this heading may be entered 
into notwithstanding the second and third sentences of section 
222(a) £ind, with regard to programs for Central and Eastern Europe 
and programs for the benefit of South Africans disadvantaged by 
apartheid, section 223(j) of the Foreign Assistance Act of 1961. 
PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND DISABILITY 
FUND 
For payment to the "Foreign Service Retirement and Disability 
Fund", as authorized by the Foreign Service Act of 1980, 
$44,208,000. 
OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL 
DEVELOPMENT 
For necessary expenses to carry out the provisions of section 
667, $473,000,000: Provided, That none of the funds appropriated 
by this Act for programs administered by the Agency for Inter-
national Development may be used to finance printing costs of 
any report or study (except feasibility, design, or evaluation reports 
or studies) in excess of $25,000 without the approval of the Adminis-
trator of the Agency or the Administrator's designee. 
OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL 
DEVELOPMENT OFFICE OF INSPECTOR GENERAL 
For necessary expenses to carry out the provisions of section 
667, $29,047,000, to remain available until September 30, 1999, 
which sum shall be available for the Office of the Inspector General 
of the Agency for International Development. 
OTHER BILATERAL ECONOMIC ASSISTANCE 
ECONOMIC S U P P O R T FUND 
For necessary expenses to carry out the provisions of chapter 
4 of part II, $2,400,000,000, to remain available until September 
30, 1999: Provided, That of the fiinds appropriated under this 
heading, not less than $1,200,000,000 shall be available only for 
Israel, which sum shall be available on a grant basis as a cash 
transfer and shall be disbursed within 30 days of enactment of 
this Act or by October 31, 1997, whichever is later: Provided further. 
That not less than $815,000,000 shall be available only for Egypt, 
which sum shall be provided on a grant basis, and of which sum 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2393 
cash transfer assistance may be provided, with the understanding 
that Egypt will undertake significant economic reforms which are 
additional to those which were undertaken in previous fiscal years: 
Provided further, That in exercising the authority to provide cash President, 
transfer assistance for Israel, the President shall ensure that the 
level of such assistance does not cause an adverse impact on the 
total level of nonmilitary ejqports from the United States to such 
country: Provided further, That of the funds appropriated under 
this heading, not less than $150,000,000 shall be made available 
for Jordan: Provided further. That of the funds made available 
under this heading in previous Acts making appropriations for 
foreign operations, export financing, and related programs, notwith-
standing any provision in any such heading in such previous Acts, 
up to $116,000,000 may be allocated or made available for programs 
and activities under this heading including the Middle East Peace 
and Stability Fund: Provided further. That in canying out the 
previous proviso, the President should seek to ensure to the extent 
feasible that not more than 1 percent of the amount specified 
in section 586 of this Act should be derived from funds that would 
otherwise be made available for any single country: Provided fur-
ther. That funds provided for the Middle East Peace and Stability 
Fimd by a coiintry in the region under the authority of section 
635(d) of the Foreign Assistemce Act of 1961, and funds made 
available for Jordan following the date of enactment of this Act 
from previous Acts making appropriations for foreign operations, 
export financing, and related programs, shall count toward meeting 
the earmark contained in the fourth proviso under this heading: 
Provided further. That up to $10,000,000 of funds under this head-
ing in previous foreign operations, export financing, and related 
programs appropriations Acts that were reprogrammed for Jordan 
during fiscal year 1997 shall also count toward such earmark: 
Provided further, That, in order to facilitate the implementation 
of the fourth proviso under this heading, the requirement of section 
515 of this Act or any similar provision of law shall not apply 
to the making available of funds appropriated for a fiscal year 
for programs, projects, or activities that were justified for another 
fiscal year: Provided further. That for fiscal year 1998 such portions 
of the notification required under section 653 of the Foreign Assist-
ance Act of 1961 that relate to the Middle East may be submitted 
to the Congress as soon as practicable, but no later than March 
1, 1998: Provided further. That during fiscal year 1998, of the 
local currencies generated fi*om funds made available under this 
heading for Guatemala by this Act and prior appropriations Acts, 
the United States and Guatemala may jointly program the Guate-
mala quetzales equivalent of a total of up to $10,000,000 for the 
purpose of retiring the debt owed by universities in Guatemala 
to the Inter-American Development Bank. 
INTERNATIONAL FUND FOR IRELAND 
For necessary expenses to carry out the provisions of chapter 
4 of part II of the Foreign Assistance Act of 1961, $19,600,000, 
which shall be available for the United States contribution to the 
International Fund for Ireland and shall be made available in 
accordance with the provisions of the Anglo-Irish Agreement Sup-
port Act of 1986 (Public Law 99-415): Provided, That such amount 
shall be expended at the minimum rate necessary to make timely 
pajnnent for projects and activities: Provided further, That fimds 
I l l STAT. 2394 
PUBLIC LAW 105-118—NOV. 26, 1997 
Applicability. 
made available under this heading shall remain available until 
September 30, 1999. 
ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES 
(a) For necessary expenses to carry out the provisions of the 
Foreign Assistance Act of 1961 and the Support for East European 
Democracy (SEED) Act of 1989, $485,000,000, to remain available 
until September 30, 1999, which shall be available, notwithstanding 
any other provision of law, for economic assistance and for related 
programs for Eastern Europe and the Baltic States. 
(b) Funds appropriated under this heading or in prior appro-
priations Acts that are or have been made available for an Enter-
prise Fund may be deposited by such Fund in interest-bearing 
accounts prior to the Fund's disbursement of such funds for program 
purposes. The Fund may retain for such program purposes any 
interest earned on such deposits without returning such interest 
to the Treasury of the United States and without further appropria-
tion by the Congress. Funds made available for Enterprise Funds 
shall be expended at the minimum rate necessary to make timely 
pajonent for projects and activities. 
(c) Funds appropriated under this heading shall be considered 
to be economic assistance under the Foreign Assistance Act of 
1961 for purposes of making available the administrative authori-
ties contained in that Act for the use of economic assistance. 
(d) None of the funds appropriated under this heading may 
be made available for new housing construction or repair or 
reconstruction of existing housing in Bosnia and Herzegovina unless 
directly related to the efforts of United States troops to promote 
peace in said country. 
(e) With regard to funds appropriated or otherwise made avail-
able under this heading for the economic revitalization program 
in Bosnia and Herzegovina, and local currencies generated by such 
funds (including the conversion of funds appropriated under this 
heading into currency used by Bosnia and Herzegovina as local 
currency and local currency returned or repaid under such pro-
gram)— 
(1) the Administrator of the Agency for International Devel-
opment shall provide written approval for grants and loans 
prior to the obligation and expenditure of funds for such pur-
poses, and prior to the use of funds that have been returned 
or repaid to any lending facility or grantee; and 
(2) the provisions of section 532 of this Act shall apply. 
(f) The President is authorized to withhold funds appropriated 
under this heading made available for economic revitalization pro-
grams in Bosnia and Herzegovina, if he determines and certifies 
to the Committees on Appropriations that the Federation of Bosnia 
and Herzegovina has not complied with article III of annex 1-
A of the General Framework Agreement for Peace in Bosnia and 
Herzegovina concerning the withdrawal of foreign forces, and that 
intelligence cooperation on training, investigations, and related 
activities between Iranian officials and Bosnian officials has not 
been terminated. 
(g) Not to exceed $200,000,000 of the funds appropriated under 
this heading may be made available for Bosnia and Herzegovina 
exclusive of assistance for police training. 
(h) Not to exceed $7,000,000 of the funds made available for 
Bosnia and Herzegovina may be made available for the cost, as 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2395 
defined in section 502 of the Congressional Budget Act of 1974, 
of modifying direct loans and loan guarantees for said country. 
ASSISTANCE FOR THE NEW INDEPENDENT STATES OF THE FORMER 
SOVIET UNION 
(a) For necessary expenses to carry out the provisions of chapter 
11 of part I of the Foreign Assistance Act of 1961 and the FREE-
DOM Support Act, for assistance for the new independent states 
of the former Soviet Union and for related programs, $770,000,000, 
to remain available until September 30, 1999: Provided, That the Applicability, 
provisions of such chapter shall apply to funds appropriated by 
this paragraph, 
(b) None of the funds appropriated under this heading shall 
be made available to the Government of Russia— 
(1) unless that 
government 
is making progress 
in 
implementing comprehensive economic reforms based on mar-
ket principles, private ownership, negotiating repayment of 
commercial debt, respect for commercial contracts, and equi-
table treatment of foreign private investment; 
(2) if that government applies or transfers United States 
assistance to any entity for the purpose of expropriating or 
seizing ownership or control of assets, investments, or ventures; 
and 
(3) funds may be furnished without regard to this sub-
section if the President determines that to do so is in the 
national interest. 
(c) None of the funds appropriated under this heading shall 
22 USC 5814 
be made available to any government of the new independent ^^ote. 
states of the former Soviet Union if that government directs any 
action in violation of the territorial integrity or national sovereignty 
of any other new independent state, such as those violations 
included in the Helsinki Final Act: Provided, That such funds 
may be made available without regard to the restriction in this 
subsection if the President determines that to do so is in the 
national security interest of the United States: Provided 
further. 
That the restriction of this subsection shall not apply to the use 
of such funds for the provision of assistance for purposes of humani-
tarian and refugee reUef. 
(d) None of the funds appropriated under this heading for 
the new independent states of the former Soviet Union shall be 
made available for any state to enhance its military capability: 
Provided, That this restriction does not apply to demilitarization, 
demining, or nonproliferation programs. 
(e) Fimds appropriated under this heading shall be subject 
to the regular notification procedures of the Committees on Appro-
priations. 
(f) Fluids made available in this Act for assistance to the 
new independent states of the former Soviet Union shall be subject 
to the provisions of section 117 (relating to environment and natural 
resources) of the Foreign Assisteuice Act of 1961. 
(g) Funds appropriated under title II of this Act, including 
funds appropriated under this heading, may be made available 
for assistance for Mongolia: Provided, TTiat fiinds made available 
for assistance for Mongolia may be made available in accordance 
with the purposes and utilizing the authorities provided in chapter 
11 of pgirt I of the Foreign Assistance Act of 1961. 
I l l STAT. 2396 
PUBLIC LAW 105-118—NOV. 26, 1997 
(h) In issuing new task orders, entering into contracts, or 
making grants, with funds appropriated under this heading or 
in prior appropriations Acts, for projects or activities that have 
as one of their primary purposes the fostering of private sector 
development, the Coordinator for United States Assistance to the 
New Independent States and the implementing agency shall encour-
age the participation of and give significant weight to contractors 
and grantees who propose investing a significant amount of their 
own resources (including volunteer services and in-kind contribu-
tions) in such projects and activities. 
(i) Funds appropriated under this heading or in prior appropria-
tions Acts that are or have been made available for an Enterprise 
Fund may be deposited by such Fund in interest-bearing accounts 
prior to the disbursement of such funds by the Fund for program 
purposes. The Fund may retain for such program proposes any 
interest earned on such deposits without returning such interest 
to the Treasury of the United States and without further appropria-
tion by the Congress. Funds made available for Enterprise Funds 
shall be expended at the minimum rate necessary to make timely 
payment for projects and activities. 
(j)(l) Of the funds appropriated under this heading that are 
allocated for assistance for the Government of Russia, 50 percent 
shall be withheld from obligation until the President determines 
and certifies in writing to the Committees on Appropriations that 
the Government of Russia has terminated implementation of 
arrangements to provide Iran with technical expertise, training, 
technology, or equipment necessary to develop a nuclear reactor, 
related nuclear research facilities or programs, or ballistic missile 
capability. 
(2) Notwithstanding paragraph (1) assistance may be provided 
for the Government of Russia if the President determines and 
certifies to the Committees on Appropriations that making such 
funds available: (A) is vital to the national security interest of 
the United States; and (B) that the Government of Russia is taking 
meaningful steps to limit major supply contracts and to curtail 
the transfer of technology and technological expertise related to 
activities referred to in paragraph (1). 
(k) Of the funds appropriated under this heading, not less 
than $225,000,000 shall be made available for Ukraine, which sum 
shall be provided with the understanding that Ukraine will under-
take significant economic reforms which are additional to those 
which were undertaken in the previous fiscal year: Provided, That 
50 percent of the amount made available in this subsection, exclu-
sive of funds made available for election related initiatives and 
nuclear reactor safety activities, shall be withheld from obligation 
and expenditure until the Secretary of State determines and cer-
tifies no later than April 30, 1998, that the Government of Ukraine 
has made significant progress toward resolving complaints made 
by United States investors to the United States embassy prior 
to April 30, 1997: Provided further, That funds made available 
under this subsection, and funds appropriated for Ukraine in the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1997 as contained in Public Law 104-208 shall 
be made available to complete the preparation of safety £m.alysis 
reports at each nuclear reactor in Ukraine over the next three 
years. 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2397 
(1) Of the funds appropriated under this heading, not less 
than $250,000,000 shall be made available for assistance for the 
Southern Caucasus region: Provided, That of the funds provided 
under this subsection 37 percent shall be made available for Georgia 
and 35 percent shall be made available for Armenia: Provided 
further, That of the funds made available for the Southern Caucasus 
region, 28 percent should be used for reconstruction and remedial 
activities relating to the consequences of conflicts within the region, 
espe ially those in the vicinity of Abkhazia and Nagomo-Elarabakh: 
Provided further, That if the Secretary of State after May 30, 
1998, determines and reports to the relevant committees of Congress 
that the full amount of reconstruction and remedial funds that 
may be made available under the previous proviso cannot be effec-
tively utilized, up to 62.5 percent of the amount provided imder 
the previous proviso for reconstruction and remediation may be 
used for other purposes under this heading. 
(m) Funds provided under the previous subsection shall be 
made available for humanitarian assisteince for refugees, displaced 
persons, and needy civilians affected by the conflicts in the Southern 
Caucasus region, including those in the vicinity of Abkhazia and 
Nagorno-Karabakh, notwithstanding any other provision of this 
or any other Act. 
(n) Funds made available under this Act or any other Act 
may not be provided for assistance to the Government of Azerbaijan 
until the President determines, and so reports to the Congress, 
that the Government of Azerbaijan is taking demonstrable steps 
to cease all blockades against Armenia and Nagomo-Karabaldi: 
Provided, That the restriction of this subsection and section 907 
of the FREEDOM Support Act shall not apply t o -
ll) activities to support democracy or assistance under 
title V of the FREEDOM Support Act and section 1424 of 
Public Law 104-201; 
(2) any assistance provided by the Trade and Development 
Agency under section 661 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2421); and 
(3) any activity carried out by a member of the United 
States and Foreign Commercial Service while acting within 
his or her official capacity. 
(o) None of the fiinds appropriated under this heading or in 
prior appropriations legislation may be made available to establish 
a joint public-private entity or organization engaged in the manage-
ment of activities or projects supported by the Defense Enterprise 
Fund. 
Reports. 
INDEPENDENT AGENCY 
PEACE CORPS 
For expenses necessary to carry out the provisions of the Peace 
Corps Act (75 Stat. 612), $222,000,000, including the purchase 
of not to exceed five passenger motor vehicles for administrative 
purposes for use outside of the United States: Provided, That none Abortion. 
of the fluids appropriated under this heading shall be used to 
pay for abortions: Provided further, That funds appropriated under 
this heading shall remain available until September 30,1999. 
I l l STAT. 2398 
PUBLIC LAW 105-118—NOV. 26, 1997 
DEPARTMENT OF STATE 
INTERNATIONAL NARCOTICS CONTROL 
For necessary expenses to carry out section 481 of the Foreign 
Assistance Act of 1961, $215,000,000: Provided, That during fiscal 
year 1998, the Department of State may also use the authority 
of section 608 of the Act, without regard to its restrictions, to 
receive non-lethal excess property from an agency of the United 
States Government for the purpose of providing it to a foreign 
country under chapter 8 of part I of that Act subject to the regular 
notification procedures of the Committees on Appropriations: Pro-
Reports, 
vided further. That not later than 60 days after the date of enact-
ment of this Act, the Secretary of State in consultation with the 
Director of the Office of National Drug Control Policy shall submit 
a report to the Committees on Appropriations containing: (1) a 
list of all countries in which the United States carries out inter-
national counter-narcotics activities; (2) the number, mission and 
agency affiliation of United States personnel assigned to each such 
country; £ind (3) all costs and expenses obligated for each program, 
project or activity by each United States agency in each country: 
Provided further. That of the amoimt made available under this 
heading not to exceed $5,000,000 shall be allocated to operate 
the Western Hemisphere International Law Enforcement Academy: 
Provided further, That 10 percent of the funds appropriated under 
this heading shall not be available for obligation until the Secretary 
of State submits a report to the Committees on Appropriations 
providing a financial plan for the funds appropriated under this 
heading and under the heading "Narcotics Interdiction". 
NARCOTICS INTERDICTION 
For necessary expenses to carry out the provisions of section 
481 of the Foreign Assistance Act of 1961, $15,000,000, to remain 
available until expended, in addition to amounts otherwise available 
for such purposes, which shall be available for assistance, including 
procurement, for support of air drug interdiction and eradication 
and other related purposes: Provided, That funds appropriated 
imder this heading shall be made available subject to the regular 
notification procedures of the Committees on Appropriations. 
MIGRATION AND REFUGEE ASSISTANCE 
For expenses, not otherwise provided for, necessary to enable 
the Secretary of State to provide, as authorized by law, a contribu-
tion to the Intemationeil Committee of the Red Cross, assistance 
to refugees, including contributions to the International Organiza-
tion for Migration and the United Nations High Commissioner 
for Refugees, and other activities to meet refugee said migration 
needs; salaries and expenses of personnel and dependents as author-
ized by the Foreign Service Act of 1980; allowances as authorized 
by sections 5921 through 5925 of title 5, United States Code; 
purchase and hire of passenger motor vehicles; and services as 
authorized by section 3109 of title 5, United States Code, 
$650,000,000: Provided, That not more than $12,000,000 shall be 
available for administrative expenses: Provided further, That not 
less than $80,000,000 shall be made available for refugees from 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2399 
the former Soviet Union and Eastern Europe and other refugees 
resettling in Israel. 
REFUGEE RESETTLEMENT ASSISTANCE 
For necessary expenses for the targeted assistance program 
authorized by title IV of the Immigration and Nation^ity Act 
and section 501 of the Refugee Education Assistance Act of 1980 
and administered by the Office of Refugee Resettlement of the 
Department of Health and Human Services, in addition to amounts 
otherwise available for such purposes, $5,000,000. 
UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE 
FUND 
For necessary expenses to carry out the provisions of section 
2(c) of the Migration and Refugee Assistance Act of 1962, as amend-
ed (22 U.S.C. 260(c)), $50,000,000, to remain available until 
expended: Provided, That the funds made available under this 
heading are appropriated notwithstemding the provisions contained 
in section 2(c)(2) of the Migration and Refugee Assistance Act 
of 1962 which would limit the amount of funds which could be 
appropriated for this purpose. 
NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED 
PROGRAMS 
For necessary expenses for nonproliferation, anti-terrorism and 
related programs and activities, $133,000,000, to carry out the 
provisions of chapter 8 of part II of the Foreign Assistance Act 
of 1961 for anti-terrorism assistance, section 504 of the FREEDOM 
Support Act for the Nonproliferation and Disarmament Fund, sec-
tion 23 of the Arms Export Control Act or the Foreign Assistance 
Act of 1961 for demining, the clearance of unexploded ordnance, 
and related activities, notwithstemding any other provision of law, 
including activities implemented through nongovernmental and 
international organizations, section 301 of the Foreign Assistance 
Act of 1961 for a voluntary contribution to the International Atomic 
Energy Agency (IAEA) and a voluntary contribution to the Korean 
Peninsula Energy Development Organization (KEDO): Provided, 
That of this Eunount not to exceed $15,000,000, to remain available 
until expended, may be made available for the Nonproliferation 
and Disarmament Fund, notwithstanding any other provision of 
law, to promote bilateral and multilateral activities relating to 
nonproliferation and disarmament: Provided further. That such 
funds may also be used for such countries other than the new 
independent states of the former Soviet Union and international 
organizations when it is in the national security interest of the 
United States to do so: Provided further, That such funds shall 
be subject to the regular notification procedures of the Committees 
on Appropriations: Provided further, That funds appropriated under 
this heading may be made available for the International Atomic 
Energy Agency only if the Secretary of State determines (and so 
reports to the Congress) that Israel is not being denied its right 
to participate in the activities of that Agency: Provided 
further. 
That not to exceed $30,000,000 may be made available to the 
Korean Peninsula Energy Development Organization (KEDO) only 
for the administrative expenses and heavy fuel oil costs associated 
I l l STAT. 2400 
PUBLIC LAW 105-118—NOV. 26, 1997 
President. 
Certification. 
Reports. 
Reports. 
with the Agreed Framework: Provided further. That such funds 
may be obligated to KEDO only if, 30 days prior to such obligation 
of funds, the President certifies and so reports to Congress that: 
(1)(A) the parties to the Agreed Framework are taking steps to 
assure that progress is made on the implementation of the January 
1, 1992, Joint Declaration on the Denuclearization of the Korean 
Peninsula and the implementation of the North-South dialogue, 
and (B) North Korea is complying with the other provisions of 
the Agreed Framework between North Korea and the United States 
and with the Confidential Minute; (2) North Korea is cooperating 
fully in the canning and safe storage of all spent fuel from its 
graphite-moderated nuclear reactors and that such canning and 
safe storage is scheduled to be completed by April 1, 1998; £ind 
(3) North Korea has not significantly diverted assistance provided 
by the United States for purposes for which it was not intended: 
Provided further, That the President may waive the certification 
requirements of the preceding proviso if the President determines 
that it is vital to the national security interests of the United 
States: Provided further, That no funds may be obligated for KEDO 
until 30 calendar days after submission to Congress of the waiver 
permitted under the preceding proviso: Provided further. That the 
obligation of any funds for KIIDO shall be subject to the regular 
notification procedures of the Committees on Appropriations: Pro-
vided further. That the Secretary of State shall submit to the 
appropriate congressional committees an annual report (to be 
submitted with tlie annual presentation for appropriations) provid-
ing a full and detailed accounting of the fiscal year request for 
the United States contribution to KEDO, the expected operating 
budget of KEDO, to include unpaid debt, proposed annual costs 
associated with heavy fuel oil purchases, and the amount of funds 
pledged by other donor nations and organizations to support KEDO 
activities on a per country basis, and other related activities: Pro-
vided further, Tliat of the funds made available under this heading, 
up to $10,000,000 may be made available to KEDO, in addition 
to funds otherwise made available under this heading for KEDO, 
if the Secretary of State certifies and reports to the Committees 
on Appropriations that, except for the funds made available under 
this proviso, funds sufficient to cover all outstanding debts owed 
by KEDO for heavy fuel oil have been provided to KEDO by donors 
other than the United States. 
TITLE III—MILITARY ASSISTANCE 
FUNDS APPROPRIATED TO THE PRESIDENT 
INTERNATIONAL MILITARY EDUCATION AND TRAINING 
For necessary expenses to carry out the provisions of section 
541 of the Foreign Assistance Act of 1961, $50,000,000: Provided, 
That the civilian personnel for whom military education and train-
ing may be provided under this heading may include civilians 
who are not members of a government whose participation would 
contribute to improved civil-military relations, civilian control of 
the military, or respect for human rights: Provided further, That 
funds appropriated under this heading for grant financed military 
education and training for Indonesia and Guatemala may only 
be available for expanded international military education and 
training and funds made available for Guatemala may only be 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2401 
provided through the regular notification procedures of the Commit-
tees on Appropriations: Provided further, That none of the funds 
appropriated under this heading may be made available to support 
grant financed military education and training at the School of 
the Americas unless: (1) the Secretary of Defense certifies that 
Certification. 
the instruction and training provided by the School of the Americas 
is fully consistent with training and doctrine, particularly with 
respect to the observance of human rights, provided by the Depart-
ment of Defense to United States military students at Department 
of Defense institutions whose primary purpose is to train United 
States military personnel; (2) the Secretary of Defense certifies 
Certification. 
that the Secretary of State, in consultation with the Secretary 
of Defense, has developed and issued specific guidelines governing 
the selection and screening of candidates for instruction at the 
School of the Americas; and (3) the Secretary of Defense submits Reports. 
to the Committees on Appropriations a report detailing the training 
activities of the School of the Americas and a general assessment 
regarding the performance of its graduates during 1996. 
FOREIGN MILITARY FINANCING PROGRAM 
For expenses necessanr for grants to enable the President to 
carry out the provisions of section 23 of the Arms Export Control 
Act, $3,296,550,000: Provided, That of the funds appropriated under 
this heading, not less than $1,800,000,000 shall be available for 
grants only for Israel, and not less than $1,300,000,000 shall be 
made available for grants only for Egypt: Provided further. That 
the funds appropriated by this paragraph for Israel shall be dis-
bursed within 30 days of enactment of this Act or by October 
31, 1997, whichever is later: Provided further, That to the extent 
that the Government of Israel requests that funds be used for 
such purposes, grants made available for Israel by this paragraph 
shall, as agreed by Israel and the United States, be available 
for advanced weapons systems, of which not less than $475,000,000 
shall be available for the procurement in Israel of defense articles 
and defense services, including research and development: Provided 
further, That of the funds appropriated by this paragraph, not 
less than $75,000,000 shall be available for assistsuice for Jordan: 
Provided further. That during fiscal year 1998 the President is 
authorized to, and shall, direct drawdowns of defense articles from 
the stocks of the Department of Defense, defense services of the 
Department of Defense, and military education and training of 
an aggregate value of not less than $25,000,000 under the authority 
of this proviso for Jordan for the purposes of part II of the Foreign 
Assistance Act of 1961, and any amoiuit so directed shall count 
toward meeting the earmark in the previous proviso: Provided 
further, That section 506(c) of the Foreign Assistance Act of 1961 
shall apply, and section 632(d) of the Foreign Assistance Act of 
1961 shall not apply, to any such drawdown: Provided 
further. 
That of the funds appropriated by this paragraph, a total of 
$18,300,000 should be available for assistance for Estonia, Latvia, 
and Lithuania: Provided further. That none of the funds made 
available under this heading shall be available for any non-NATO 
country participating in the Partnership for Peace Program except 
through the regular notification procedures of the Committees on 
Appropriations: Provided further, That funds appropriated by this 
paragraph shall be nonrepayable notwithstanding any requirement 
in section 23 of the Arms Export Control Act: Provided 
further, 
I l l STAT. 2402 
PUBLIC LAW 105-118—NOV. 26, 1997 
That funds made available under this paragraph shall be obligated 
upon apportionment in accordance with paragraph (5)(C) of title 
31, United States Code, section 1501(a): Provided further, 
That 
$50,000,000 of the funds appropriated or otherwise made available 
under this heading should be made available for the purpose of 
facilitating the integration of Poland, Hungary, £uid the Czech 
Republic into the North Atlantic Treaty Organization. 
For the cost, as defined in section 502 of the Congressional 
Budget Act of 1974, of direct loans authorized by section 23 of 
the Arms Export Control Act as follows: cost of direct loans, 
$60,000,000: Provided, That these funds are available to subsidize 
gross obligations for the principal amount of direct loans of not 
to exceed $657,000,000: Provided further. That the rate of interest 
charged on such loans shall be not less than the current average 
market yield on outstanding marketable obligations of the United 
States of comparable maturities: Provided further, 
That funds 
appropriated under this paragraph shall be made available for 
Greece and Turkey only on a loan basis, and the principal amount 
of direct loans for each country shall not exceed the following: 
$105,000,000 only for Greece and $150,000,000 only for Turkey. 
None of the funds made available under this heading shall 
be available to finance the procurement of defense articles, defense 
services, or design and construction services that are not sold by 
the United States Government under the Arms Export Control 
Act unless the foreign country proposing to make such procurements 
has first signed an agreement with the United States Government 
specifying the conditions under which such procurements may be 
financed with such funds: Provided, That all country and funding 
level increases in allocations shall be submitted through the regular 
notification procedures of section 515 of this Act: Provided 
further, 
That none of the funds appropriated under this heading shall be 
available for Sudan and Liberia: Provided further, That funds made 
available under this heading may be used, notwithstanding any 
other provision of law, for demining, the clearance of unexploded 
ordnance, and related activities and may include activities imple-
mented through nongovernmental and international organizations: 
Provided further. That only those countries for which assistance 
was justified for the "Foreign Military Sales Financing Program" 
in the fiscal year 1989 congressional presentation for security assist-
since programs may utilize funds made available under this heading 
for procurement of defense articles, defense services or design and 
construction services that are not sold by the United States Govern-
ment under the Arms Export Control Act: Provided further. That, 
subject to the regular notification procedures of the Committees 
on Appropriations, fiinds made available under this heading for 
the cost of direct loans may also be used to supplement the funds 
available under this heading for grants, and funds made available 
under this heading for grants may also be used to supplement 
the funds available under this heading for the cost of direct loans: 
Provided further, That funds appropriated under this heading shall 
be expended at the minimum rate necessary to make timely pay-
ment for defense articles and services: Provided further, That not 
more than $23,250,000 of the funds appropriated under this heading 
may be obligated for necessary expenses, including the purchase 
of passenger motor vehicles for replacement only for use outside 
of the United States, for the general costs of administering military 
assistance and sales: Provided further. That none of the funds 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2403 
under this heading shall be available for Guatemala: Provided 
further, That not more than $350,000,000 of funds realized pursuant 
to section 21(e)(1)(A) of the Arms Export Control Act may be obli-
gated for expenses incurred by the Department of Defense during 
fiscal year 1998 pursuant to section 43(b) of the Arms Export 
Control Act, except that this limitation may be exceeded only 
through the regular notification procedures of the Committees on 
Appropriations. 
PEACEKEEPING OPERATIONS 
For necessary expenses to carry out the provisions of section 
551 of the Foreign Assistance Act of 1961, $77,500,000: Provided, 
That none of the funds appropriated under this heading shall be 
obligated or expended except as provided through the regular 
notification procedures of the Committees on Appropriations. 
TITLE IV—MULTILATERAL ECONOMIC ASSISTANCE 
FUNDS APPROPRIATED TO THE PRESIDENT 
INTERNATIONAL FINANCIAL INSTITUTIONS 
CONTRIBUTION TO THE INTERNATIONAL BANK FOR RECONSTRUCTION 
AND DEVELOPMENT 
For payment to the International Bank for Reconstruction and 
Development by the Secretary of the Treasury, for the United 
States contribution to the Global Environment Facility (GEF), 
$47,500,000, to remain available until September 30, 1999. 
CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT ASSOCL\TION 
For pa5nnent to the International Development Association by 
the Secretary of the Treasury, $1,034,503,100, to remain available 
until expended, of which $234,503,100 shall be available to pay 
for the tenth replenishment: Provided, That none of the funds 
may be obligated or made available until the Secret^^^ of the 
Treasury certifies to the Committees on Appropriations that 
procurement restrictions applicable to United States firms under 
the terms of the Interim Trust Fund have been lifted fi*om all 
funds which Interim Trust Fund donors proposed to set aside for 
review of procurement restrictions at the conclusion of the February 
1997 IDA Deputies Meeting in Paris. 
CONTRIBUTION TO THE INTER-AMERICAN DEVELOPMENT BANK 
For payment to the Inter-American Development Bank by the 
Secretary of the Treasury, for the United States share of the paid-
in share portion of the increase in capital stock, $25,610,667, and 
for the United States share of the increase in the resources of 
the Fund for Special Operations, $20,835,000, to remain available 
until expended. 
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS 
The United States Governor of the Inter-American Development 
Beink may subscribe without fiscal yeeir limitation to the callable 
capital portion of the United States share of such capital stock 
in an amount not to exceed $1,503,718,910. 
I l l STAT. 2404 
PUBLIC LAW 105-118—NOV. 26, 1997 
CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS 
MULTILATERAL INVESTMENT FUND 
For payment to the Enterprise for the Americas Multilateral 
Investment Fund by the Secretary of the Treasury, for the United 
States contribution to the Fund to be administered by the Inter-
American Development Bank, $30,000,000 to remain available until 
expended, which shall be available for contributions previously due. 
CONTRIBUTION TO THE ASIAN DEVELOPMENT BANK 
For pajmient to the Asian Development Bank by the Secretary 
of the Treasury for the United States share of the paid-in portion 
of the increase in capital stock, $13,221,596, to remain available 
until expended. 
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS 
The United States Governor of the Asian Development Bank 
may subscribe without fiscal year limitation to the callable capital 
portion of the United States share of such capital stock in an 
amoimt not to exceed $647,858,204. 
CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND 
For the United States contribution by the Secretary of the 
Treasury to the increases in resources of the Asian Development 
Fund, as authorized by the Asian Development Bank Act, as amend-
ed (Pubhc Law 89-369), $150,000,000, of which $50,000,000 shall 
be available for contributions previously due, to remain available 
until expended. 
CONTRIBUTION TO THE AFRICAN DEVELOPMENT FUND 
For the United States contribution by the Secretary of the 
Treasury to the increase in resources of the African Development 
Fimd, $45,000,000, to remain available until expended and which 
shall be available for contributions previously due. 
CONTRIBUTION 
TO 
THE 
EUROPEAN 
BANK 
FOR 
RECONSTRUCTION 
AND 
DEVELOPMENT 
For payment to the European Bank for Reconstruction and 
Development by the Secretary of the Treasury, $35,778,717, for 
the United States share of the paid-in portion of the increase 
in capital stock, to remain available until expended. 
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS 
The United States Governor of the European Bank for 
Reconstruction and Development may subscribe without fiscal year 
limitation to the callable capital portion of the United States share 
of such capital stock in an £imoimt not to exceed $123,237,803. 
NORTH AMERICAN DEVELOPMENT BANK 
For pa3anent to the North American Development Bank by 
the Secretary of the Treasury, for the United States share of the 
paid-in portion of the capital stock, $56,500,000, to remain available 
until expended of which $250,000 shall be available for contributions 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2405 
previously due: Provided, That none of the funds appropriated 
under this heading that are made available for the Community 
Adjustment and Investment Program shall be used for purposes 
other than those set out in the binational agreement establishing 
the Bank: Provided further, That of the amount appropriated under 
this heading, not more than $41,250,000 may be expended for 
the purchase of such capital shares in fiscal year 1998. 
LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS 
The United States Governor of the North American Develop-
ment Bank may subscribe without fiscal year limitation to the 
callable capital portion of the United States share of the capital 
stock of the North American Development Bank in an amount 
not to exceed $318,750,000. 
INTERNATIONAL ORGANIZATIONS AND PROGRAMS 
For necessary expenses to carry out the provisions of section 
301 of the Foreign Assistance Act of 1961, and of section 2 of 
the United Nations Environment Program Participation Act of 1973, 
$192,000,000: Provided, That none of the funds appropriated under 
this heading shall be made available for the United Nations Fund 
for Science and Technology: Provided further. That none of the 
funds appropriated under this heading that are made available 
to the United Nations Population Fimd (UNFPA) shall be made 
available for activities in the People's Republic of China: Provided 
further, That not more than $25,000,000 of the funds appropriated 
under this heading may be made available to UNFPA: Provided 
further. That not more than one-half of this amount may be provided Reports, 
to UNFPA before March 1, 1998, and that no later than February 
15,1998, the Secretary of State shall submit a report to the Commit-
tees on Appropriations indicating the amount UNFPA is budgeting 
for the People's Republic of China in 1998: Provided further. That 
any amount UNFPA plans to spend in the People's Republic of 
China in 1998 shall be deducted from the amount of funds provided 
to UNFPA after March 1, 1998, pursuant to the previous provisos: 
Provided further. That with respect to any funds appropriated under 
this heading that are made available to UNFPA, UNFPA shall 
be required to maintain such funds in a separate account and 
not commingle them with any other funds: Provided further. That 
none of the funds appropriated under this heading may be made 
available to the Korean Peninsula Energy Development Organiza-
tion (KEDO) or the International Atomic Energy Agency (IAEA): 
Provided further. That not less than $4,000,000 should be made 
available to the World Food Program. 
TITLE V—GENERAL PROVISIONS 
OBLIGATIONS DURING LAST MONTH OF AVAILABILITY 
SEC. 501. Except for the appropriations entitled "International 
Disaster Assistance", and "United States Emergency Refugee and 
Migration Assistance Fund", not more than 15 percent of any appro-
priation item made available by this Act shall be obligated during 
the last month of availability. 
I l l STAT. 2406 
PUBLIC LAW 105-118—NOV. 26, 1997 
PROHIBITION OF BILATERAL FUNDING FOR INTERNATIONAL FINANCIAL 
INSTITUTIONS 
SEC. 502. Notwithstanding section 614 of the Foreign Assistance 
Act of 1961, as amended, none of the funds contained in title 
II of this Act may be used to carry out the provisions of section 
209(d) of the Foreign Assistance Act of 1961. 
LIMITATION ON RESIDENCE EXPENSES 
SEC. 503. Of the funds appropriated or made available pursuant 
to this Act, not to exceed $126,500 shall be for official residence 
expenses of the Agency for International Development during the 
current fiscal year: Provided, That appropriate steps shall be taken 
to assure that, to the maximum extent possible. United States-
owned foreign currencies are utilized in lieu of dollars. 
LIMITATION ON EXPENSES 
SEC. 504. Of the funds appropriated or made available pursuant 
to this Act, not to exceed $5,000 shall be for entertainment expenses 
of the Agency for International Development during the current 
fiscal year. 
LIMITATION ON REPRESENTATIONAL ALLOWANCES 
SEC. 505. Of the fiinds appropriated or made available pursuant 
to this Act, not to exceed $95,000 shall be available for representa-
tion allowances for the Agency for International Development dur-
ing the current fiscal year: Provided, That appropriate steps shall 
be taken to assure that, to the maximum extent possible. United 
States-owned foreign currencies are utilized in lieu of dollars: Pro-
vided further, That of the funds made available by this Act for 
generaJ costs of administering military assistance and sales under 
the heading "Foreign Military Financing Progreun", not to exceed 
$2,000 shall be available for entertainment expenses and not to 
exceed $50,000 shall be available for representation allowances: 
Provided further, That of the funds made available by this Act 
under the heading "IntemationeJ Military Education and Training", 
not to exceed $50,000 shall be available for entertainment allow-
ances: Provided further, That of the funds made available by this 
Act for the Inter-American Foundation, not to exceed $2,000 shall 
be available for entertainment and representation allowances: 
Provided further, That of the funds made available by this Act 
for the Peace Corps, not to exceed a total of $4,000 shall be available 
for entertainment expenses: Provided further, That of the funds 
made available by this Act imder the heading "Trade and Develop-
ment Agency", not to exceed $2,000 shall be available for representa-
tion and entertainment allowances. 
PROHIBITION ON FINANCING NUCLEAR GOODS 
SEC. 506. None of the funds appropriated or made available 
(other than funds for "Nonproliferation, Anti-terrorism, Demining 
and Related Programs") pursuant to this Act, for carrying out 
the Foreign Assistance Act of 1961, may be used, except for purposes 
of nuclear safety, to finance the export of nuclear equipment, fuel, 
or technology. 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2407 
PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN COUNTRIES 
SEC. 507. None of the funds appropriated or otherwise made 
available pursuant to this Act shall be obligated or expended to 
finance directly any assistance or reparations to Cuba, Iraq, Libya, 
North Korea, Iran, Sudan, or Syria: Provided, That for purposes 
of this section, the prohibition on obligations or expenditures shall 
include direct loans, credits, insurance and guarantees of the 
Export-Import Bank or its agents. 
MILITARY COUPS 
SEC. 508. None of the funds appropriated or otherwise made 
available pursuant to this Act shall be obligated or expended to 
finance directly £iny assistance to einy country whose duly elected 
head of government is deposed by military coup or decree: 
Provided, That assistsuice may be resumed to such country if the 
President determines and reports to the Committees on Appropria-
tions that subsequent to the termination of assistance a democrat-
ically elected government has taken office. 
TRANSFERS 
BETWEEN 
ACCOUNTS 
SEC. 509. None of the funds made available by this Act may 
be obligated under an appropriation account to which they were 
not appropriated, except for transfers specifically provided for in 
this Act, unless the President, prior to the exercise of any authority 
contained in the Foreign Assistance Act of 1961 to transfer funds, 
consults with Euid provides a written policy justification to the 
Committees on Appropriations of the House of Representatives and 
the Senate: Provided, That the exercise of such authority shall 
be subject to the regular notification procedures of the Committees 
on Appropriations. 
DEOBLIGATION/REOBLIGATION AUTHORITY 
SEC. 510. (a) Amounts certified pursuant to section 1311 of 
the Supplemental Appropriations Act, 1955, as having been obli-
gated against appropriations heretofore made under the authority 
of the Foreign Assistance Act of 1961 for the same general purpose 
as any of the headings under title II of this Act are, if deobligated, 
hereby continued available for the same period as the respective 
appropriations under such headings or until September 30, 1998, 
whichever is later, and for the same general purpose, and for 
countries within the same region as originally obligated: Provided, 
That the Appropriations Committees of both Houses of the Congress 
are notified 15 days in advance of the reobligation of such fiinds 
in accordance with regular notification procedures of the Commit-
tees on Appropriations. 
(b) Obligated balances of funds appropriated to carry out section 
23 of the Arms Export Control Act as of the end of the fiscal 
year immediately preceding the current fiscal year are, if 
deobligated, hereby continued available during the current fiscal 
year for the same purpose under any authority applicable to such 
appropriations under this Act: Provided, That the authority of this 
subsection may not be used in fiscal year 1998. 
Ill STAT. 2408 
PUBLIC LAW 105-118—NOV. 26, 1997 
AVAILABILITY OF FUNDS 
SEC. 511. No part of any appropriation contained in this Act 
shall remain available for obligation after the expiration of the 
current fiscal year unless expressly so provided in this Act: Pro-
vided, That funds appropriated for the purposes of chapters 1, 
8, and 11 of part I, section 667, and chapter 4 of part II of 
the Foreign Assistance Act of 1961, as amended, and fiinds provided 
under the heading "Assistance for Eastern Europe and the Baltic 
States", shall remain available until expended if such funds are 
initially obligated before the expiration of their respective periods 
of availability contained in this Act: Provided further, That, notwith-
standing any other provision of this Act, any funds made available 
for the purposes of chapter 1 of part I and chapter 4 of part 
II of the Foreign Assistance Act of 1961 which are allocated or 
obligated for cash disbursements in order to address balance of 
payments or economic policy reform objectives, shall remain avail-
able until expended: Provided further. That the report required 
by section 653(a) of the Foreign Assistance Act of 1961 shall 
designate for each country, to the extent known at the time of 
submission of such report, those funds allocated for cash disburse-
ment for balance of payment and economic policy reform purposes. 
LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT 
SEC. 512. No part of any appropriation contained in this Act 
shall be used to fiimish assistance to any country which is in 
default during a period in excess of one CEilendar year in payment 
to the United States of principal or interest on any loan made 
to such country by the United States pursuant to a program for 
which funds are appropriated under this Act: Provided, That this 
section and section 620(q) of the Foreign Assistance Act of 1961 
shall not apply to funds made available in this Act or during 
the current fiscal year for Nicaragua and Liberia, and for any 
narcotics-related assistance for Colombia, Bolivia, and Peru author-
ized by the Foreign Assistance Act of 1961 or the Arms Export 
Control Act. 
Notification. 
COMMERCE AND TRADE 
SEC. 513. (a) None of the funds appropriated or made available 
pursuant to this Act for direct assistance and none of the fiinds 
otherwise made available pursuant to this Act to the Export-Import 
Bank and the Overseas Private Investment Corporation shall be 
obligated or expended to finance any loan, any assistance or any 
other financial commitments for establishing or expanding produc-
tion of any commodity for export by any country other than the 
United States, if the commodity is likely to be in surplus on world 
markets at the time the resulting productive capacity is expected 
to become operative and if the assistance will cause substantial 
injury to United States producers of the same, similar, or competing 
commodity: Provided, That such prohibition shall not apply to the 
Export-Import Bank if in the judgment of its Board of Directors 
the benefits to industry and emplo3mient in the United States 
are likely to outweigh the injury to United States producers of 
the same, similar, or competing commodity, and the Chairman 
of the Board so notifies the Committees on Appropriations. 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2409 
(b) None of the funds appropriated by this or any other Act 
to carry out chapter 1 of part 1 of the Foreign Assistance Act 
of 1961 shall be available for any testing or breeding feasibility 
study, variety improvement or introduction, consultancy, publica-
tion, conference, or training in connection with the growth or 
production in a foreign country of an agricultural commodity for 
export which would compete with a similar commodity grown or 
produced in the United States: Provided, That this subsection shall 
not prohibit— 
(1) activities designed to increase food security in develop-
ing countries where such activities will not have a significant 
impact in the export of agricultural commodities of the United 
States; or 
(2) research activities intended primarily to 
benefit 
American producers. 
SURPLUS COMMODITIES 
SEC. 514. The Secretary of the Treasury shall instruct the 22USC262h 
United States Executive Directors of the International Bank for note. 
Reconstruction and Development, the International Development 
Association, the International Finance Corporation, the Inter-Amer-
ican Development Bank, the International Monetary Fiuid, the 
Asian Development Bank, the Inter-American Investment Corpora-
tion, the North American Development Bank, the European Bank 
for Reconstruction and Development, the African Development 
Bank, and the AfiicEin Development Fund to use the voice and 
vote of the United States to oppose any assistance by these institu-
tions, using funds appropriated or made available pursuant to this 
Act, for the production or extraction of any commodity or mineral 
for export, if it is in surplus on world markets and if the assistance 
will cause substantial injury to United States producers of the 
same, similar, or competing commodity. 
NOTIFICATION REQUIREMENTS 
SEC. 515. (a) For the purposes of providing the executive branch 
with the necessary administrative flexibility, none of the funds 
made available under this Act for "Child Survival and Disease 
Programs 
Fund", 
"Development 
Assistance", 
"International 
organizations and programs", "Trade and Development Agenc/', 
"International narcotics control", "Narcotics Interdiction", "Assist-
ance for Eastern Europe and the Baltic States", "Assistance for 
the New Independent States of the Former Soviet Union", "Eco-
nomic Support Fund", "Peacekeeping operations", 
"Operating 
expenses of the Agency for International Development", "Operating 
expenses of the Agency for International Development Office of 
Inspector General", "Nonproliferation, anti-terrorism, demining and 
related programs", "Foreign Military Financing Program", "Inter-
national military education and training", "Peace Corps", "Migra-
tion and refugee assistance", shall be available for obligation for 
activities, programs, projects, type of materiel assistance, countries, 
or other operations not justified or in excess of the amount justified 
to the Appropriations Committees for obligation under any of these 
specific headings imless the Appropriations Committees of both 
Houses of Congress are previously notified 15 days in advance: 
Provided, That the President shall not enter into any commitment 
of funds appropriated for the purposes of section 23 of the Arms 
3&-194 0-97-ll:QL3Part3 
I l l STAT. 2410 
PUBLIC LAW 105-118—NOV. 26, 1997 
Export Control Act for the provision of major defense equipment, 
other than conventional ammunition, or other major defense items 
defined to be aircraft, ships, missiles, or combat vehicles, not pre-
viously justified to Congress or 20 percent in excess of the quantities 
justified to Congress unless the Committees on Appropriations are 
notified 15 days in advance of such commitment: Provided 
further, 
That this section shall not apply to any reprogramming for an 
activity, program, or project under chapter 1 of part I of the Foreign 
Assistance Act of 1961 of less than 10 percent of the amount 
previously justified to the Congress for obligation for such activity, 
program, or project for the current fiscal year: Provided 
further, 
That the requirements of this section or any similar provision 
of this Act or any other Act, including any prior Act requiring 
notification in accordance with the regular notification procedures 
of the Committees on Appropriations, may be waived if failure 
to do so would pose a substantial risk to human health or welfare: 
Provided further. That in case of any such waiver, notification 
to the Congress, or the appropriate congressional committees, shall 
be provided as early as practicable, but in no event later than 
three days after teiking the action to which such notification require-
ment was applicable, in the context of the circumstances necessitat-
ing such waiver: Provided further, That any notification provided 
pursuant to such a waiver shall contain an explanation of the 
emergency circumstsmces. 
(b) Drawdowns made pursuant to section 506(a)(2) of the For-
eign Assistance Act of 1961 shall be subject to the regular notifica-
tion procedures of the Committees on Appropriations. 
LIMITATION ON AVAILABILITY OF FUNDS FOR INTERNATIONAL 
ORGANIZATIONS AND PROGRAMS 
SEC. 516. Notwithstanding any other provision of law or of 
this Act, none of the funds provided for "International Organizations 
and Programs" shall be available for the United States propor-
tionate share, in accordance with section 307(c) of the Foreign 
Assistance Act of 1961, for any programs identified in section 307, 
or for Libya, Iran, or, at the discretion of the President, Communist 
countries listed in section 620(f) of the Foreign Assistance Act 
of 1961, as amended: Provided, 
That, subject to the regulsir 
notification procedures of the Committees on Appropriations, funds 
appropriated under this Act or any previously enacted Act making 
appropriations for foreign operations, export financing, and related 
programs, which are returned or not made available for organiza-
tions and programs because of the implementation of this section 
or any similar provision of law, shall remain available for obligation 
through September 30,1999. 
ECONOMIC SUPPORT FUND ASSISTANCE FOR ISRAEL 
SEC. 517. The Congress finds that progress on the peace process 
in the Middle East is vitally important to United States security 
interests in the region. The Congress recognizes that, in fulfilling 
its obligations under the Treaty of Peace Between the Arab Republic 
of Egypt and the State of Israel, done at Washington on March 
26, 1979, Israel incurred severe economic burdens. Furthermore, 
the Congress recognizes that an economically and militarily secure 
Israel serves the security interests of the United States, for a 
secure Israel is an Israel which has the incentive £ind confidence 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2411 
to continue pursuing the peace process. Therefore, the Congress 
declares that, subject to the availabihty of appropriations, it is 
the poHcy £ind the intention of the United States that the funds 
provided in annual appropriations for the Economic Support Fund 
which are allocated to Israel shall not be less than the annual 
debt repayment (interest and principal) from Israel to the United 
States Government in recognition that such a principle serves 
United States interests in the region. 
PROHIBITION ON FUNDING FOR ABORTIONS AND INVOLUNTARY 
STERILIZATION 
SEC. 518. None of the funds made available to carry out part 
I of the Foreign Assistance Act of 1961, as amended, may be 
used to pay for the performance of abortions as a method of family 
planning or to motivate or coerce any person to practice abortions. 
None of the funds made available to carry out part I of the Foreign 
Assistance Act of 1961, as amended, may be used to pay for the 
performance of involuntary sterilization as a method of family plan-
ning or to coerce or provide any financial incentive to any person 
to undergo sterilizations. None of the funds made available to 
carry out part I of the Foreign Assistsuice Act of 1961, as amended, 
may be used to pay for any biomedical research which relates 
in whole or in part, to methods of, or the performance of, abortions 
or involuntary sterilization as a means of family planning. None 
of the funds made available to carry out part I of the Foreign 
Assistance Act of 1961, as amended, may be obligated or expended 
for any country or organization if the President certifies that the 
use of these fiinds by any such country or organization would 
violate any of the above provisions related to abortions and involun-
tary sterilizations: Provided, That none of the funds made available 
under this Act may be used to lobby for or against abortion. 
REPORTING REQUIREMENT 
SEC. 519. Section 25 of the Arms Export Control Act is 22 use 2765. 
amended— 
(1) in subsection (a), by striking "Congress" and inserting 
in lieu thereof "appropriate congressional committees"; 
(2) in subsection (b), by striking "the Committee on Foreign 
Relations of the Senate or the Committee on Foreign Affairs 
of the House of Representatives" and inserting in lieu thereof 
"any of the congressional committees described in subsection 
(e)"; and 
(3) by adding the following subsection: 
"(e) As used in this section, the term 'appropriate congressional 
committees' means the Committee on Foreign Relations and the 
Committee on Appropriations of the Senate and the Committee 
on International Relations and the Committee on Appropriations 
of the House of Representatives.". 
SPECIAL NOTIFICATION REQUIREMENTS 
SEC. 520. None of the funds appropriated in this Act shall 
be obligated or expended for Colombia, Haiti, Liberia, Pakistan, 
Panama, Peru, Serbia, Sudan, or the Democratic Republic of Congo 
except as provided through the regular notification procedures of 
the Committees on Appropriations. 
Ill STAT. 2412 
PUBLIC LAW 105-118—NOV. 26, 1997 
DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY 
SEC. 521. For the purpose of this Act, "program, project, and 
activity' shall be defined at the appropriations Act account level 
and shall include all appropriations and authorizations Acts ear-
marks, ceilings, and limitations with the exception that for the 
following accounts: Economic Support Fund and Foreign Military 
Financing Program, "program, project, and activity" shall also be 
considered to include country, regional, and central program level 
funding within each such account; for the development assistance 
accounts of the Agency for International Development "program, 
project, and activity shall also be considered to include central 
program level fiuiding, either as: (1) justified to the Congress; 
or (2) allocated by the executive branch in accordance with a report, 
to be provided to the Committees on Appropriations within 30 
days of enactment of this Act, as required by section 653(a) of 
the Foreign Assistance Act of 1961. 
CHILD SURVIVAL, AIDS, AND OTHER ACTIVITIES 
SEC. 522. Up to $10,000,000 of the funds made available by 
this Act for assistance for family planning, health, child survival, 
basic education, and AIDS, may be used to reimburse United States 
Government agencies, agencies of State governments, institutions 
of higher learning, and private and voluntary organizations for 
the fall cost of individuals (including for the personal services 
of such individuals) detailed or assigned to, or contracted by, as 
the case may be, the Agency for International Development for 
the purpose of carrying out family planning activities, child survival, 
and basic education activities, and activities relating to research 
on, and the treatment and control of acquired immune deficiency 
syndrome in developing countries: Provided, That funds appro-
priated by this Act that are made available for child survival 
activities or activities relating to research on, and the treatment 
and control of, acquired immune deficiency syndrome may be made 
available notwithstanding any provision of law that restricts assist-
ance to foreign coimtries: Provided further, That funds appropriated 
by this Act that are made available for familj^ planning activities 
may be made available notwithstanding section 512 of this Act 
and section 620(q) of the Foreign Assistance Act of 1961. 
PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN COUNTRIES 
SEC. 523. None of the funds appropriated or otherwise made 
available pursuant to this Act shall be obligated to finance indirectly 
any assistance or reparations to Cuba, Iraq, Libya, Iran, Syria, 
North Korea, or the People's Republic of China, unless the President 
of the United States certifies that the withholding of these funds 
is contrary to the national interest of the United States. 
RECIPROCAL LEASING 
22 use 2796. 
SEC. 524. Section 61(a) of the Arms Export Control Act is 
amended by striking out "1997" and inserting in lieu thereof "1998". 
NOTIFICATION ON EXCESS DEFENSE EQUIPMENT 
SEC. 525. Prior to providing excess Department of Defense 
articles in accordance with section 516(a) of the Foreign Assistance 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2413 
Act of 1961, the Department of Defense shall notify the Committees 
on Appropriations to the same extent and under the same conditions 
as are other committees pursuant to subsection (c) of that section: 
Provided, That before issuing a letter of offer to sell excess defense 
articles under the Arms Export Control Act, the Department of 
Defense shall notify the Committees on Appropriations in accord-
ance with the regular notification procedures of such Committees: 
Provided further. That such Committees shall also be informed 
of the original acquisition cost of such defense articles. 
AUTHORIZATION REQUIREMENT 
SEC. 526. Funds appropriated by this Act may be obligated 
and expended notwithstanding section 10 of Public Law 91-672 
and section 15 of the State Department Basic Authorities Act of 
1956. 
PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST COUNTRIES 
SEC. 527. (a) Notwithstanding any other provision of law, funds 
appropriated for bilateral assistance under any heading of this 
Act and funds appropriated under any such heading in a provision 
of law enacted prior to enactment of this Act, shall not be made 
available to any country which the President determines— 
(1) grants sanctuary from prosecution to any individual 
or group which has committed an act of international 
terrorism; or 
(2) otherwise supports international terrorism. 
(b) The President may waive the application of subsection (a) 
to a country if the President determines that national security 
or humanitarian reasons justify such waiver. The President shall 
publish each waiver in the Federal Register and, at least 15 days 
before the waiver takes effect, shall notify the Committees on Appro-
priations of the waiver (including the justification for the waiver) 
in accordance with the regular notification procedures of the 
Committees on Appropriations. 
COMMERCIAL LEASING OF DEFENSE ARTICLES 
SEC. 528. Notwithstanding any other provision of law, and 
subject to the regular notification procedures of the Committees 
on Appropriations, the authority of section 23(a) of the Arms Export 
Control Act may be used to provide financing to Israel, Egypt 
and NATO and major non-NATO allies for the procurement by 
leasing (including leasing with an option to purchase) of defense 
articles from United States commercial suppliers, not including 
Major Defense Equipment (other than helicopters and other types 
of aircraft having possible civilian application), if the President 
determines that there are compelling foreign policy or national 
security reasons for those defense articles being provided by 
commercial lease rather than by govemment-to-govemment sale 
under such Act. 
President. 
Federal Register, 
publication. 
Notification. 
22 u s e 2763 
note. 
COMPETITIVE INSURANCE 
SEC. 529. All Agency for International Development contracts 
and solicitations, and subcontracts entered into under such con-
tracts, shall include a clause requiring that United States insurance 
I l l STAT. 2414 
PUBLIC LAW 105-118—NOV. 26, 1997 
companies have a fair opportunity to bid for insurance when such 
insurance is necessary or appropriate. 
STINGERS IN THE PERSIAN GULF REGION 
SEC. 530. Except as provided in section 581 of the Foreign 
Operations, Expori; Financing, and Related Programs Appropria-
tions Act, 1990, the United States may not sell or otherwise make 
available any Stingers to any country bordering the Persian Gulf 
under the Arms Export Control Act or chapter 2 of part II of 
the Foreign Assistance Act of 1961. 
DEBT-FOR-DEVELOPMENT 
SEC. 531. In order to enhance the continued participation of 
nongovernmental organizations in economic assistance activities 
under the Foreign Assistance Act of 1961, including endowments, 
debt-for-development and debt-for-nature exchanges, a nongovern-
mental organization which is a grantee or contractor of the Agency 
for International Development may place in interest bearing 
accounts funds made available under this Act or prior Acts or 
local currencies which accrue to that organization as a result of 
economic assistance provided under title II of this Act and any 
interest earned on such investment shall be used for the purpose 
for which the assistance was provided to that organization. 
SEPARATE ACCOUNTS 
22 use 2359 
SEC. 532. (a) SEPARATE ACCOUNTS FOR LOCAL CURRENCIES.— 
note. 
(1) If assistance is furnished to the government of a foreign country 
under chapter 1 and 10 of part I or chapter 4 of part II of the 
Foreign Assistance Act of 1961 under agreements which result 
in the generation of local currencies of that country, the Adminis-
trator of the Agency for International Development shall— 
(A) require that local currencies be deposited in a separate 
account established by that government; 
(B) enter into an agreement with that government which 
sets forth— 
(i) the amount of the local currencies to be generated; 
and 
(ii) the terms 
and 
conditions under which 
the 
currencies so deposited may be utilized, consistent with 
this section; and 
(C) establish by agreement with that government the 
responsibilities of the Agency for International Development 
and that government to monitor and account for deposits into 
and disbursements from the separate account. 
(2) USES OF LOCAL CURRENCIES.—^As may be agreed upon with 
the foreign government, local currencies deposited in a separate 
account pursuant to subsection (a), or an equivalent amoiuit of 
local currencies, shall be used only— 
(A) to carry out chapter 1 or 10 of part I or chapter 
4 of part II (as the case may be), for such purposes as— 
(i) project and sector assistance activities; or 
(ii) debt and deficit financing; or 
(B) for the administrative requirements of the United 
States Government. 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2415 
(3) PROGRAMMING ACCOUNTABILITY.—The Agency for Inter-
national Development shall take all necessary steps to ensure that 
the equivalent of the local currencies disbursed pursuant to sub-
section (a)(2)(A) from the separate account established pursuant 
to subsection (a)(1) are used for the purposes agreed upon pursuant 
to subsection (a)(2). 
(4) TERMINATION OF ASSISTANCE PROGRAMS.—Upon termination 
of assistance to a country under chapter 1 or 10 of part I or 
chapter 4 of part II (as the case may be), any unencumbered 
balances of funds which remain in a separate account established 
pursuant to subsection (a) shall be disposed of for such purposes 
as may be agreed to by the government of that country and the 
United States Government. 
(5) CONFORMING AMENDMENTS.—The provisions of this sub-
section shall supersede the tenth and eleventh provisos contained 
under the heading "Sub-Saharan Africa, Development Assistance" 
as included in the Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 1989 and sections 531(d) 
and 609 of the Foreign Assistance Act of 1961. 
(6) 
REPORTING 
REQUIREMENT.—The Administrator of the 
Agency for International Development shall report on an annual 
basis as part of the justification documents submitted to the 
Committees on Appropriations on the use of local currencies for 
the administrative requirements of the United States Government 
as authorized in subsection (a)(2)(B), and such report shall include 
the amount of local currency (and United States dollar equivalent) 
used and/or to be used for such purpose in each applicable country. 
(b) SEPARATE ACCOUNTS FOR (JASH TRANSFERS.—(1) If assist-
ance is made available to the government of a foreign country, 
under chapter 1 or 10 of part I or chapter 4 of part II of the 
Foreign Assistance Act of 1961, as cash transfer assistance or 
as nonproject sector assistance, that country shall be required to 
maintain such funds in a separate account and not commingle 
them with any other funds. 
(2) APPLICABILITY OF OTHER PROVISIONS OF LAW.—Such funds 
may be obligated and expended notwithstanding provisions of law 
which are inconsistent with the nature of this assistance including 
provisions which are referenced in the Joint Explanatory Statement 
of the Committee of Conference accompanying House Joint Resolu-
tion 648 (H. Report No. 98-1159). 
(3) NOTIFICATION.—At least 15 days prior to obligating any President, 
such cash transfer or nonproject sector assistance, the President 
shall submit a notification through the regular notification proce-
dures of the Committees on Appropriations, which shall include 
a detailed description of how the funds proposed to be made avail-
able will be used, with a discussion of the United States interests 
that will be served by the assistance (including, as appropriate, 
a description of the economic policy reforms that will be promoted 
by such assistance). 
(4) EXEMPTION.—Nonproject sector assistance funds may be 
exempt fi-om the requirements of subsection (b)(1) only through 
the notification procedures of the Committees on Appropriations. 
COMPENSATION FOR UNITED STATES EXECUTIVE DIRECTORS TO 
INTERNATIONAL FINANCIAL INSTITUTIONS 
SEC. 533. (a) No funds appropriated by this Act may be made 
as pa3rment to any international financial institution while the 
I l l STAT. 2416 
PUBLIC LAW 105-118—NOV. 26, 1997 
United States Executive Director to such institution is compensated 
by the institution at a rate which, together with whatever com-
pensation such Director receives from the United States, is in 
excess of the rate provided for an individual occupying a position 
at level IV of the Executive Schedule under section 5315 of title 
5, United States Code, or while any alternate United States Director 
to such institution is compensated by the institution at a rate 
in excess of the rate provided for an individual occup3dng a position 
at level V of the Executive Schedule under section 5316 of title 
5, United States Code. 
(b) For purposes of this section, "international 
financial 
institutions" are: the International Bank for Reconstruction and 
Development, the Inter-AmericEin Development Bank, the Asian 
Development Bank, the Asian Development Fund, the African 
Development Bank, the African Development Fund, the Inter-
national Monetary Fund, the North American Development Bank, 
and the European Bank for Reconstruction and Development. 
COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST IRAQ 
50 use 1701 
SEC. 534. None of the funds appropriated or otherwise made 
iiote. 
available pursuant to this Act to carry out the Foreign Assistance 
Act of 1961 (including title IV of chapter 2 of part I, relating 
to the Overseas Private Investment Corporation) or the Arms 
Export Control Act may be used to provide assistance to any country 
that is not in compliance with the United Nations Security Council 
SEinctions against Iraq unless the President determines and so 
certifies to the Congress that— 
(1) such assistance is in the national interest of the United 
States; 
(2) such assistance will directly benefit the needy people 
in that country; or 
(3) the assistance to be provided will be humanitarian 
assistance for foreign nationals who have fled Iraq and Kuwait. 
COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES 
22 use 2762 
SEC. 535. Direct costs associated with meeting a foreign 
note. 
customer's additional or unique requirements will continue to be 
allowable under contracts under section 22(d) of the Arms Export 
Control Act. Loadings applicable to such direct costs shall be per-
mitted at the same rates applicable to procurement of like items 
purchased by the Department of Defense for its own use. 
EXTENSION OF AUTHORITY TO OBLIGATE FUNDS TO CLOSE THE 
SPECIAL DEFENSE ACQUISITION FUND 
SEC. 536. Title III of Public Law 103-306 is amended under 
108 Stat. 1622. 
the heading "Special Defense Acquisition Fund" by striking "1998" 
and inserting "2000". 
AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMERICAN 
FOUNDATION AND THE AFRICAN DEVELOPMENT FOUNDATION 
SEC. 537. Unless expressly provided to the contrary, provisions 
of this or any other Act, including provisions contained in prior 
Acts authorizing or making appropriations for foreign operations, 
export financing, and related programs, shall not be construed 
to prohibit activities authorized by or conducted under the Peace 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2417 
Corps Act, the Inter-American Foundation Act, or the African Devel-
opment Foundation Act. The appropriate agency shall promptly Reports. 
report to the Committees on Appropriations whenever it is conduct-
ing activities or is proposing to conduct activities in a country 
for which assistance is prohibited. 
IMPACT ON JOBS IN THE UNITED STATES 
SEC. 538. None of the funds appropriated by this Act may 
be obligated or expended to provide— 
(1) any financial incentive to a business enterprise cur-
rently located in the United States for the purpose of inducing 
such an enterprise to relocate outside the United States if 
such incentive or inducement is likely to reduce the number 
of employees of such business enterprise in the United States 
because United States production is being replaced by such 
enterprise outside the United States; 
(2) assistance for the purpose of establishing or developing 
in a foreign country any export processing zone or designated 
area in which the tax, tariff, labor, environment, and safety 
laws of that country do not apply, in part or in whole, to 
activities carried out within that zone or area, unless the Presi-
dent determines and certifies that such assistance is not likely 
to cause a loss of 
jobs within the United States; or 
(3) assistance for any project or activity that contributes 
to the violation of internationally recognized workers rights, 
as defined in section 502(a)(4) of the Trade Act of 1974, of 
workers in the recipient country, including any designated zone 
or area in that country: Provided, That in recognition that 
the application of this subsection should be commensurate with 
the level of development of the recipient country and sector, 
the provisions of this subsection shall not preclude assistance 
for the informal sector in such country, micro and small-scale 
enterprise, and smallholder agriculture. 
SPECIAL AUTHORITIES 
SEC. 539. (a) Funds appropriated in title II of this Act that 
are made available for Afghanistan, Lebanon, and for victims of 
war, displaced children, displaced Burmese, humanitarian assist-
ance for Romania, and humanitarian assistance for the peoples 
of Bosnia and Herzegovina, Croatia, and Kosova, may be made 
available notwithstanding any other provision of law. 
(b) Funds appropriated by this Act to carry out the provisions 
of sections 103 through 106 of the Foreign Assistance Act of 1961 
may be used, notwithstanding any other provision of law, for the 
purpose of supporting tropical forestry and energy programs aimed 
at reducing emissions of greenhouse gases, £ind for the purpose 
of supporting biodiversity conservation activities: Provided, That 
such assistance shall be subject to sections 116, 502B, and 620A 
of the Foreign Assistance Act of 1961. 
(c) The Agency for International Development may employ per-
sonal services contractors, notwithstanding any other provision of 
law, for the purpose of administering programs for the West Bank 
and Gaza. 
(d)(1) WAIVER.—^The President may waive the provisions of 
section 1003 of Public Law 100-204 if the President determines 
I l l STAT. 2418 
PUBLIC LAW 105-118—NOV. 26, 1997 
and certifies in writing to the Speaker of the House of Representa-
tives and the President pro tempore of the Senate that it is 
important to the national security interests of the United States. 
(2) PERIOD OF APPLICATION OF WAIVER.—Any waiver pursuant 
to paragraph (1) shall be effective for no more than a period of 
six months at a time and shall not apply beyond twelve months 
after enactment of this Act. 
POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT OF ISRAEL 
SEC. 540. It is the sense of the Congress that— 
(1) the Arab League countries should immediately and 
publicly renounce the primary boycott of Israel and the 
secondary and tertiary boycott of Ainerican firms that have 
commercial ties with Israel; 
(2) the decision by the Arab League in 1997 to reinstate 
the boycott against Israel was deeply troubling and disappoint-
ing; 
(3) the Arab League should immediately rescind its decision 
on the boycott and its members should develop normal relations 
with their neighbor Israel; and 
(4) the President should— 
(A) take more concrete steps to encourage vigorously 
Arab League countries to renounce publicly the primary 
boycotts of Israel and the secondary and tertiary boycotts 
of American firms that have commercial relations with 
Israel as a confidence-building measure; 
(B) take into consideration the participation of any 
recipient country in the primary boycott of Israel and the 
secondary and tertiary boycotts of American firms that 
have commercial relations with Israel when determining 
whether to sell weapons to said country; 
(C) report to Congress on the specific steps being taken 
by the President to bring about a public renunciation of 
the Arab primary boycott of Israel and the secondary and 
tertiary boycotts of American firms that have commercial 
relations with Israel and to expand the process of normaliz-
ing ties between Arab League countries and Israel; and 
(D) encourage the allies and trading partners of the 
United States to enact laws prohibiting businesses fi*om 
complying with the boycott and penalizing businesses that 
do comply. 
ANTI-NARCOTICS ACTIVITIES 
SEC. 541. (a) Of the funds appropriated or otherwise made 
available by this Act for "Economic Support Fund", assistance may 
be provided to strengthen the administration of justice in countries 
in Latin America and the Caribbean and in other regions consistent 
with the provisions of section 534(b) of the Foreign Assistance 
Act of 1961, except that programs to enhance protection of partici-
pants in judicial cases may be conducted notwithstemding section 
660 of that Act. 
(b) Funds made available pursuant to this section may be 
made available notwithstanding section 534(c) and the second and 
third sentences of section 534(e) of the Foreign Assistance Act 
of 1961. Funds made available pursuant to subsection (a) for Bolivia, 
Colombia, and Peru may be made available notwithstanding section 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2419 
534(c) and the second sentence of section 534(e) of the Foreign 
Assistance Act of 1961. 
ELIGIBILITY FOR ASSISTANCE 
SEC. 
542. 
(a) 
ASSISTANCE 
THROUGH 
NONGOVERNMENTAL 
ORGANIZATIONS.—Restrictions contained in this or any other Act 
with respect to assistsmce for a country shall not be construed 
to restrict assistance in support of programs of nongovernmental 
organizations from funds appropriated by this Act to carry out 
the provisions of chapters 1, 10, and 11 of part I, and chapter 
4 of part II, of the Foreign Assistance Act of 1961: Provided, 
That the President shall take into consideration, in any case in 
which a restriction on assistance would be applicable but for this 
subsection, whether assistance in support of programs of nongovern-
mental organizations is in the national interest of the United States: 
Provided further, That before using the authority of this subsection 
to furnish assistance in support of programs of nongovernmental 
organizations, the President shall notify the Committees on Appro-
priations under the regular notification procedures of those commit-
tees, including a description of the program to be assisted, the 
assistance to be provided, and the reasons for furnishing such 
assistance: Provided further. That nothing in this subsection shall 
be construed to alter any existing statutory prohibitions against 
abortion or involuntary sterilizations contained in this or any other 
Act. 
(b) PUBLIC LAW 480.—During fiscal year 1998, restrictions 
contained in this or any other Act with respect to assistance for 
a country shall not be construed to restrict assistance under the 
Agricultural Trade Development and Assistance Act of 1954: Pro-
vided, That none of the funds appropriated to carry out title I 
of such Act and made available pursuant to this subsection may 
be obligated or expended except as provided through the regular 
notification procedures of the Committees on Appropriations. 
(c) EXCEPTION.—^This section shall not apply— 
(1) with respect to section 620A oi the Foreign Assistance 
Act or any comparable provision of law prohibiting assistance 
to countries that support international terrorism; or 
(2) with respect to section 116 of the Foreign Assistance 
Act of 1961 or any comparable provision of law prohibiting 
assistance to countries that violate internationally recognized 
human rights. 
EARMARKS 
SEC. 543. (a) Funds appropriated by this Act which are ear-
marked may be reprogrammed for other programs within the same 
account notwithstanding the earmark if compliance with the ear-
mark is made impossible by operation of any provision of this 
or any other Act or, with respect to a country with which the 
United States has an agreement providing the United States with 
base rights or base access in that country, if the President deter-
mines that the recipient for which funds are earmarked has signifi-
cantly reduced its military or economic cooperation with the United 
States since enactment of the Foreign Operations, Export Financing, 
and Related Programs Appropriations Act, 1991; however, before 
exercising the authority of this subsection with regard to a base 
rights or base access country which has significantly reduced its 
President. 
President. 
Notification. 
President. 
I l l STAT. 2420 
PUBLIC LAW 105-118—NOV. 26, 1997 
military or economic cooperation with the United States, the 
President shall consult with, and shall provide a written policy 
justification to the Committees on Appropriations: Provided, TTiat 
any such reprogramming shall be subject to the regular notification 
procedures of the Committees on Appropriations: Provided 
further, 
That assistance that is reprogrammed pursuant to this subsection 
shall be made available under the same terms and conditions as 
originally provided. 
(b) In addition to the authority contained in subsection (a), 
the original period of avedlability of funds appropriated by this 
Act and administered by the Agency for International Development 
that are earmarked for particular programs or activities by this 
or any other Act shall be extended for an additional fiscal year 
if the Administrator of such agency determines and reports 
promptly to the Committees on Appropriations that the termination 
of assistance to a country or a significant change in circumstances 
makes it unlikely that such earmarked funds can be obligated 
during the original period of availability: Provided, That such ear-
marked funds that are continued available for an additional fiscal 
year shall be obligated only for the purpose of such earmark, 
CEILINGS AND EARMARKS 
SEC. 544. Ceilings and earmarks contained in this Act shall 
not be applicable to ftinds or authorities appropriated or otherwise 
made available by any subsequent Act unless such Act specifically 
so directs. 
PROHIBITION ON PUBLICITY OR PROPAGANDA 
SEC. 545. No part of any appropriation contained in this Act 
shall be used for publicity or propaganda purposes within the 
United States not authorized before the date of enactment of this 
Act by the Congress: Provided, That not to exceed $500,000 may 
be made available to carry out the provisions of section 316 of 
Pubhc Law 96-533. 
PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS 
SEC. 546. (a) To the maximum extent possible, assistance pro-
vided under this Act should make full use of American resources, 
including commodities, products, and services. 
(b) It is the Sense of the Congress that, to the greatest extent 
practicable, all equipment and products purchased with funds made 
available in this Act should be American-made. 
(c) In providing financial assistance to, or entering into any 
contract with, any entity using funds made available in this Act, 
the head of each Federal agency, to the greatest extent practicable, 
shall provide to such entity a notice describing the statement made 
in subsection (b) by the Congress. 
PROHIBITION OF PAYMENTS TO UNITED NATIONS MEMBERS 
SEC. 547. None of the funds appropriated or made available 
pursuant to this Act for carrying out the Foreign Assistance Act 
of 1961, may be used to pay in whole or in part any assessments, 
arrearages, or dues of any member of the United Nations. 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2421 
Termination 
date. 
CONSULTING SERVICES 
SEC. 548. The expenditure of any appropriation under this Contracts. 
Act for any consulting service through procurement contract, pursu- Public 
ant to section 3109 of title 5, United States Code, shall be limited ^formation. 
to those contracts where such expenditures are a matter of public 
record and available for public inspection, except where otherwise 
provided under existing law, or under existing Executive order 
pursuant to existing law. 
PRIVATE VOLUNTARY ORGANIZATIONS-DOCUMENTATION 
SEC. 549. None of the funds appropriated or made available 
pursuant to this Act shall be available to a private voluntary 
organization which fails to provide upon timely request any docu-
ment, file, or record necessary to the auditing requirements of 
the Agency for International Development. 
PROHIBITION 
ON ASSISTANCE TO FOREIGN GOVERNMENTS THAT 
EXPORT LETHAL MILITARY EQUIPMENT TO COUNTRIES SUPPORTING 
INTERNATIONAL TERRORISM 
SEC. 550. (a) None of the funds appropriated or otherwise 
made available by this Act may be availaijle to any foreign govern-
ment which provides lethal military equipment to a country the 
government of which the Secretary of State has determined is 
a terrorist government for purposes of section 40(d) of the Arms 
Export Control Act. The prohibition under this section with respect 
to a foreign government shall terminate 12 months after that 
government ceases to provide such military equipment. This section Applicability 
applies with respect to lethal military equipment provided under 
a contract entered into after October 1,1997. 
(b) Assistance restricted by subsection (a) or any other similar 
provision of law, may be furnished if the President determines 
that furnishing such assistance is important to the national 
interests of the United States. 
(c) Whenever the waiver of subsection (b) is exercised, the 
President shall submit to the appropriate congressional committees 
a report with respect to the furnishing of such assistance. Any 
such report shall include a detailed explanation of the assistance 
estimated to be provided, including the estimated dollar amount 
of such assistance, and an explsmation of how the assistance fur-
thers United States national interests. 
WITHHOLDING OF ASSISTANCE FOR PARKING FINES OWED BY FOREIGN 
COUNTRIES 
SEC. 551. (a) IN GENERAL.—Of the funds made available for 
a foreign country under part I of the Foreign Assistance Act of 
1961, an amount equivalent to 110 percent of the total impaid 
fully adjudicated parking fines and penalties owed to the District 
of Columbia by such country as of the date of enactment of this 
Act shall be withheld from obligation for such country until the 
Secretary of State certifies £ind reports in writing to the appropriate 
congressional committees that such fines and penalties are fully 
paid to the government of the District of Columbia. 
(b) DEFINITION.—For purposes of this section, the term "appro-
priate congressional committees" means the Committee on Foreign 
Relations and the Committee on Appropriations of the Senate £ind 
President. 
Reports. 
I l l STAT. 2422 
PUBLIC LAW 105-118—NOV. 26, 1997 
the Committee on International Relations and the Committee on 
Appropriations of the House of Representatives. 
LIMITATION ON ASSISTANCE FOR THE PLO FOR THE WEST BANK AND 
GAZA 
SEC. 552. None of the funds appropriated by this Act may 
be obligated for assistance for the Palestine Liberation Organization 
for the West Bank and Gaza unless the President has exercised 
the authority under section 604(a) of the Middle East Peace Facilita-
tion Act of 1995 (title VI of Public Law 104-107) or any other 
legislation to suspend or make inapplicable section 307 of the For-
eign Assistance Act of 1961 and that suspension is still in effect: 
Provided, That if the President fails to make the certification under 
section 604(b)(2) of the Middle East Peace Facilitation Act of 1995 
or to suspend the prohibition under other legislation, funds appro-
priated by this Act may not be obligated for assistance for the 
Palestine Liberation Organization for the West Bank and Gaza. 
WAR CRIMES TRIBUNALS DRAWDOWN 
SEC. 553. If the President determines that doing so will contrib-
ute to a just resolution of charges regarding genocide or other 
violations of international humanitari£ui law, the President may 
direct a drawdown pursuant to section 552(c) of the Foreign Assist-
ance Act of 1961, as amended, of up to $25,000,000 of commodities 
and services for the United Nations War Crimes Tribunal estab-
lished with regard to the former Yugoslavia by the United Nations 
Security Council or such other tribunals or commissions as the 
Council may establish to deal with such violations, without regard 
to the ceiling limitation contained in paragraph (2) thereof: Pro-
vided, That the determination required under this section shall 
be in lieu of any determinations otherwise required imder section 
Reports. 
552(c): Provided further. That 60 days after the date of enactment 
22 use 2656 
of this Act, and every 180 days thereafter, the Secretary of State 
"°*®- 
shall submit a report to the Committees on Appropriations describ-
ing the steps the United States Government is taking to collect 
information regarding allegations of genocide or other violations 
of international law in the former Yugoslavia and to furnish that 
information to the United Nations War Crimes Tribunal for the 
former Yugoslavia. 
LANDMINES 
SEC. 554. Notwithstanding any other provision of law, demining 
equipment available to the Agency for International Development 
and the Department of State and used in support of the clearance 
of landmines and unexploded ordnance for humanitarian purposes 
may be disposed of on a grant basis in foreign countries, subject 
to such terms and conditions as the President may prescribe: Pro-
Reports, 
vided, That not la:ter than 90 days after the enactment of this 
Act, the Secretary of Defense, in consultation with the Secretary 
of State, shall submit a report to the Committees on Appropriations 
describing potential alternative technologies or tactics and a plan 
for the development of such alternatives to protect anti-tank mines 
from tampering in a manner consistent with the "Convention on 
the Prohibition, Use, Stockpiling, Production and Transfer of Anti-
personnel Mines and on Their Destruction". 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2423 
RESTRICTIONS CONCERNING THE PALESTINIAN AUTHORITY 
SEC. 555. None of the funds appropriated by this Act may 
be obligated or expended to create in any part of Jerusalem a 
new office of any department or agency of the United States Govern-
ment for the purpose of conducting official United States Govern-
ment business with the Palestinian Authority over Gaza and Jericho 
or any successor Palestinian governing entity provided for in the 
Israel-PLO Declaration of Principles: Provided, That this restriction 
shall not apply to the acquisition of additional space for the existing 
Consulate General in Jerusalem: Provided further, That meetings 
between officers and employees of the United States and officials 
of the Palestinian Authority, or any successor Palestinian governing 
entity provided for in the Israel-PLO Declaration of Principles, 
for the purpose of conducting official United States Government 
business with such authority should continue to take place in loca-
tions other than Jerusalem. As has been true in the past, officers 
and employees of the United States Government may continue 
to meet in Jerusalem on other subjects with Palestinians (including 
those who now occupy positions in the Palestinian Authority), have 
social contacts, and have incidental discussions. 
, 
PROHIBITION OF PAYMENT OF CERTAIN EXPENSES 
SEC. 556. None of the funds appropriated or otherwise made 
available by this Act under the heading "International Military 
Education and Training" or "Foreign Military Financing Program" 
for Informational Program activities may be obligated or expended 
to pay for— 
(1) alcoholic beverages; 
(2) food (other than food provided at a military installation) 
not provided in conjunction with Informational Program trips 
where students do not stay at a military installation; or 
(3) entertainment expenses for activities that are substan-
tially of a recreational character, including entrance fees at 
sporting events and amusement parks. 
EQUITABLE ALLOCATION OF FUNDS 
SEC. 557. Not more than 18 percent of the funds appropriated 
by this Act to carry out the provisions of sections 103 through 
106 and chapter 4 of part II of the Foreign Assistance Act of 
1961, that are made available for Latin America and the Caribbean 
region may be made available, through bilateral and Latin America 
and the Caribbean regional programs, to provide assistance for 
any country in such region. 
SPECIAL D E B T R E L I E F FOR THE POOREST 
SEC. 558. (a) AUTHORITY TO REDUCE DEBT.—The President 
may reduce amounts owed to the United States (or any agency 
of the United States) by an eligible country as a result o
f
— 
(1) guarantees issued under sections 221 and 222 of the 
Foreign Assistance Act of 1961; 
(2) credits extended or guarantees issued under the Arms 
Export Control Act; or 
I l l STAT. 2424 
PUBLIC LAW 105-118—NOV. 26, 1997 
(3) any obligation or portion of such obligation for a Latin 
American country, to pay for purchases of United States agricul-
tural commodities guaranteed by the Commodity Credit Cor-
poration luider export credit guarantee programs authorized 
pursuant to section 5(f) of the Commodity Credit Corporation 
Charter Act of June 29, 1948, as amended, section 4(b) of 
the Food for Peace Act of 1966, as amended (Public Law 89-
808), or section 202 of the Agricultural Trade Act of 1978, 
as amended (Public Law 95-501). 
(b) LIMITATIONS.— 
(1) The authority provided by subsection (a) may be exer-
cised only to implement multilateral official debt relief and 
referendum agreements, commonly referred to as "Paris Club 
Agreed Minutes". 
(2) The authority provided by subsection (a) may be exer-
cised only in such amounts or to such extent as is provided 
in advance by appropriations Acts. 
(3) The authority provided by subsection (a) may be exer-
cised only with respect to countries with heavy debt burdens 
that are eligible to borrow from the International Development 
Association, 
but 
not 
from 
the 
International 
Bank 
for 
Reconstruction and Development, commonly referred to as 
"IDA-only" countries. 
(c) CONDITIONS.—^The authority provided by subsection (a) may 
be exercised only with respect to a country whose government— 
(1) does not have an excessive level of military expendi-
tures; 
(2) has not repeatedly provided support for acts of inter-
national terrorism; 
(3) is not failing to cooperate on international narcotics 
control matters; 
(4) (including its military or other security forces) does 
not engage in a consistent pattern of gross violations of inter-
nationally recognized human rights; and 
(5) is not ineligible for assistance because of the application 
of section 527 of the Foreign Relations Authorization Act, Fiscal 
Years 1994 and 1995. 
(d) AVAILABILITY OF FUNDS.—The authority provided by sub-
section (a) may be used only with regard to funds appropriated 
by this Act under the heading "Debt restructuring". 
(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduction of debt 
pursuant to subsection (a) shall not be considered assistance for 
purposes of any provision of law limiting assistance to a country. 
The authority provided by subsection (a) may be exercised notwith-
standing section 620(r) of the Foreign Assistance Act of 1961. 
AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES 
SEC. 
559. 
(a) 
LOANS ELIGIBLE FOR SALE, REDUCTION, OR 
CANCELLATION.— 
(1) 
AUTHORITY TO SELL, REDUCE, OR CANCEL CERTAIN 
LOANS.—Notwithstgmding any other provision of law, the Presi-
dent may, in accordance with this section, sell to any eligible 
purchaser any concessional loan or portion thereof made before 
January 1, 1995, pursuant to the Foreign Assistance Act of 
1961, to the government of any eligible country as defined 
in section 702(6) of that Act or on receipt of payment from 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2425 
an eligible purchaser, reduce or cancel such loan or portion 
thereof, only for the purpose of facilitating— 
(A) debt-for-equity swaps, debt-for-development swaps, 
or debt-for-nature swaps; or 
(B) a debt buyback by an eligible country of its own 
qualified debt, only if the eligible country uses an additional 
amount of the local currency of the eligible country, equal 
to not less than 40 percent of the price paid for such 
debt by such eligible country, or the difference between 
the price paid for such debt and the face value of such 
debt, to support activities that link conservation and 
sustainable use of natural resources with local community 
development, and child survival and other child develop-
ment, in a manner consistent with sections 707 through 
710 of the Foreign Assisteince Act of 1961, if the sale, 
reduction, or cancellation would not contravene any term 
or condition of any prior agreement relating to such loan. 
(2) TERMS AND CONDITIONS.—Notwithstanding any other President, 
provision of law, the President shall, in accordance with this 
section, establish the terms and conditions under which loans 
may be sold, reduced, or canceled pursuant to this section. 
(3) ADMINISTRATION.—The Facility, as defined in section 
702(8) of the Foreign Assistance Act of 1961, shall notify the 
administrator of the agency primarily responsible for admin-
istering part I of the Foreign Assistance Act of 1961 of pur-
chasers that the President has determined to be eligible, and 
shall direct such agency to carry out the sale, reduction, or 
cancellation of a loan pursueint to this section. Such agency 
shall make an. adjustment in its accounts to reflect the sale, 
reduction, or cancellation. 
(4) LIMITATION.—The authorities of this subsection shall 
be available only to the extent that appropriations for the 
cost of the modification, as defined in section 502 of the 
Congressional Budget Act of 1974, are made in advance. 
(b) DEPOSIT OF PROCEEDS.—^The proceeds from the sale, reduc-
tion, or cancellation of any loan sold, reduced, or canceled pursuant 
to this section shall be deposited in the United States Government 
account or accounts established for the repa5nnent of such loan. 
(c) ELIGIBLE PURCHASERS.—A loan may be sold pursuant to 
subsection (a)(1)(A) only to a purchaser who presents plans satisfac-
tory to the President for using the loan for the purpose of engaging 
in debt-for-equity swaps, debt-for-development swaps, or debt-for-
nature swaps. 
(d) DEBTOR CONSULTATIONS.—Before the sale to any eligible 
purchaser, or any reduction or cancellation pursuant to this section, 
of any loan made to an eligible country, the President should 
consult with the country concerning the amount of loans to be 
sold, reduced, or canceled and their uses for debt-for-equity swaps, 
debt-for-development swaps, or debt-for-nature swaps. 
(e) AVAILABILITY OF FUNDS.—The authority provided by sub-
section (a) may be used only with regard to funds appropriated 
by this Act under the heading "Debt restructuring ". 
INTERNATIONAL FINANCIAL INSTITUTIONS 
SEC. 560. (a) AUTHORIZATIONS.—The Secretary of the Treasury 
22 use 284s 
may, to fulfill commitments of the United States: (1) effect the note, 285c note, 
United States participation in the first general icapital increase 290i-4note. 
I l l STAT. 2426 
PUBLIC LAW 105-118—NOV. 26, 1997 
of the European Bank for Reconstruction and Development, sub-
scribe to and make payment for 100,000 additional shares of the 
capital stock of the Bank on behalf of the United States; and 
(2) contribute on behalf of the United States to the eleventh 
replenishment of the resources of the International Development 
Association, to the sixth replenishment of the resources of the 
Asian Development Fund, a special fund of the Asian Development 
Bank. The following amounts are authorized to be appropriated 
without fiscal year limitation for payment by the Secretary of the 
Treasury: (1) $285,772,500 for paid-in capital, and $984,327,500 
for callable capital of the European Bank for Reconstruction and 
Development; (2) $1,600,000,000 for the International Development 
Association; (3) $400,000,000 for the Asian Development Fund; and 
(4) $76,832,001 for paid-in capital, and $4,511,156,729 for callable 
capital of the Inter-American Development Bank in connection with 
the eighth general increase in the resources of that Bank. Each 
such subscription or contribution shall be subject to obtaining the 
necessary appropriations. 
(b) CONSIDERATION OF ENVIRONMENTAL IMPACT OF INTER-
NATIONAL FINANCE CORPORATION LOANS.—Section 1307 of the Inter-
22 use 262m-7. 
national Financial Institutions Act (Public Law 95-118) is amended 
as follows: 
(1) in subsection (a)(1)(A) strike "borrowing country" and 
insert in lieu thereof "borrower"; 
(2) in subsection (a)(2)(A) strike "country"; and 
(3) at the end of section 1307, add a new subsection as 
follows: 
"(g) For purposes of this section, the term 'multilateral develop-
ment bank' means any of the institutions named in section 1303(b) 
of this Act, and the International Finance Corporation.". 
(c) The Secretary of the Treasury shall instruct the United 
States Executive Directors of the International Bank for Reconstruc-
tion and Development and the International Development Associa-
tion to use the voice and vote of the United States to strongly 
encourage their respective institutions to— 
(1) provide timely public information on procurement 
opportunities available to United States suppliers, with a spe-
cial emphasis on small business; and 
(2) systematically consult with local communities on the 
potential impact of loans as part of the normal lending process, 
and expand the participation of affected peoples and nongovern-
mental organizations in decisions on the selection, design and 
implementation of policies and projects. 
SANCTIONS AGAINST COUNTRIES HARBORING WAR CRIMINALS 
SEC. 561. (a) BILATERAL ASSISTANCE.—The President is author-
ized to withhold funds appropriated by this Act under the Foreign 
Assistance Act of 1961 or the Arms Export Control Act for any 
country described in subsection (c). 
(b) MULTILATERAL ASSISTANCE.—The Secretary of the Treasury 
should instruct the United States executive directors of the inter-
national financial institutions to work in opposition to, and vote 
against, any extension by such institutions of financing or financial 
or technical assistance to any country described in subsection (c). 
(c) SANCTIONED COUNTRIES.—A country described in this sub-
section is a country the government of which knowingly grants 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2427 
sanctuary to persons in its territory for the purpose of evading 
prosecution, where such persons— 
(1) have been indicted by the International Criminal Tribu-
nal for Rwanda, or any other international tribunal with similar 
standing under international law; or 
(2) have been indicted for war crimes or crimes against 
humanity committed during the period beginning March 23, 
1933 and ending on May 8, 1945 under the direction of, or 
in association with— 
(A) the Nazi government of Germany; 
(B) any government in any area occupied by the 
military forces of the Nazi government of Germany; 
(C) any government which was established with the 
assistance or cooperation of the Nazi government; or 
(D) any government which was an ally of the Nazi 
government of Germany. 
LIMITATION ON ASSISTANCE FOR HAITI 
SEC. 562. (a) LIMITATION.—None of the funds appropriated 
or otherwise made available by this Act may be provided to the 
Government of Haiti unless the President reports to Congress that 
the Government of Haiti— 
(1) is conducting thorough investigations of extrajudicial 
and political killings; 
(2) is cooperating with United States authorities in the 
investigations of political and extrajudicial killings; 
(3) has substantially completed privatization of (or placed 
under long-term private management or concession) at least 
three major public enterprises; and 
(4) has taken action to remove from the Haitian National 
Police, national palace and residential guard, ministerial guard, 
and any other public security entity of Haiti those individuals 
who are credibly alleged to have engaged in or conspired to 
conceal gross violations of internationally recognized human 
rights. 
(b) EXCEPTIONS.—The limitation in subsection (a) does not apply 
to the provision of humanitarian, electoral, counter-narcotics, or 
law enforcement assistance. 
(c) WAIVER.—The President may waive the requirements of 
this section on a semiannual basis if the President determines 
and certifies to the appropriate committees of Congress that such 
waiver is in the national interest of the United States. 
(d) PARASTATALS DEFINED.—As used in this section, the term 
"parastatal" means a government-owned enterprise. 
REQUIREMENT FOR DISCLOSURE OF FOREIGN AID IN REPORT OF 
SECRETARY OF STATE 
SEC. 563. (a) FOREIGN AID REPORTING REQUIREMENT.—In addi- 
22 use 24i4a 
tion to the voting practices of a foreign country, the report required 
"ote. 
to be submitted to Congress under section 406(a) of the Foreign 
Relations Authorization Act, fiscal years 1990 and 1991 (22 U.S.C. 
2414a), shall include a side-by-side comparison of individual coun-
tries' overall support for the United States at the United Nations 
and the amount of United States assistance provided to such coun-
try in fiscal year 1997. 
I l l STAT. 2428 
PUBLIC LAW 105-118—NOV. 26, 1997 
(b) UNITED STATES ASSISTANCE.—For purposes of this section, 
the term "United States assistance" has the meaning given the 
term in section 481(e)(4) of the Foreign Assistance Act of 1961 
(22 U.S.C. 2291(e)(4)). 
RESTRICTIONS ON VOLUNTARY CONTRIBUTIONS TO UNITED NATIONS 
AGENCIES 
SEC. 564. (a) PROHIBITION ON VOLUNTARY CONTRIBUTIONS FOR 
THE UNITED NATIONS.—None of the funds appropriated or otherwise 
made available by this Act may be made available to pay any 
voluntary contribution of the United States to the United Nations 
(including the United Nations Development Program) if the United 
Nations implements or imposes any taxation on any United States 
persons. 
(b) CERTIFICATION REQUIRED FOR DISBURSEMENT OF FUNDS.— 
None of the funds appropriated or otherwise made available under 
this Act may be made available to pay any voluntary contribution 
of the United States to the United Nations (including the United 
Nations Development Program) unless the President certifies to 
the Congress 15 days in advance of such payment that the United 
Nations is not engaged in any effort to implement or impose any 
taxation on United States persons in order to raise revenue for 
the United Nations or any of its specialized agencies. 
(c) DEFINITIONS.—As used in this section the term "United 
States person" refers to— 
(1) a natural person who is a citizen or national of the 
United States; or 
(2) a corporation, partnership, or other legal entity orga-
nized under the United States or any State, territory, posses-
sion, or district of the United States. 
ASSISTANCE TO TURKEY 
SEC. 565. (a) Not more than $40,000,000 of the funds appro-
priated in this Act under the heading "Economic Support Fund" 
may be made available for Turkey. 
(b) Of the fiinds made available under the heading "Economic 
Support Fund" for Turkey, not less than 50 percent of these funds 
shall be made available for the purpose of supporting private non-
governmental organizations engaged in strengthening democratic 
institutions in Turkey, providing economic assistance for individuals 
and communities affected by civil unrest, and supporting and 
promoting peaceful solutions and economic development which will 
contribute to the settlement of regional problems in Turkey. 
LIMITATION ON ASSISTANCE TO THE PALESTINIAN AUTHORITY 
SEC. 566. (a) PROHIBITION OF FUNDS.—None of the funds appro-
priated by this Act to carry out the provisions of chapter 4 of 
part II of the Foreign Assistance Act of 1961 may be obligated 
or expended with respect to providing fiinds to the Palestinian 
Authority. 
(b) WAIVER.—The prohibition included in subsection (a) shall 
not apply if the President certifies in writing to the Speaker of 
the House of Representatives and the President pro tempore of 
the Senate that waiving such prohibition is important to the 
national security interests of the United States. 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2429 
(c) PERIOD OF APPLICATION OF WAIVER.—Any waiver pursuant 
to subsection (b) shall be effective for no more than a period of 
six months at a time and shall not apply beyond twelve months 
after enactment of this Act. 
LIMITATION ON ASSISTANCE TO THE GOVERNMENT OF CROATIA 
SEC. 567. None of the funds appropriated or otherwise made 
available by title II of this Act may be made available to the 
Government of Croatia to relocate the rems^ins of Croatian Ustashe 
soldiers, at the site of the World War II concentration camp at 
Jasenovac, Croatia. 
BURMA LABOR REPORT 
SEC. 568. Not later than 120 days after enactment of this 
Act, the Secretary of Labor in consultation with the Secretary 
of State shall provide to the Committees on Appropriations a report 
addressing labor practices in Burma. 
HAITI 
SEC. 569. The Government of Haiti shall be eligible to purchase 
defense articles and services under the Arms Export Control Act 
(22 U.S.C. 2751 et seq.), for the civilian-led Haitian National Police 
and Coast Guard: Provided, That the authority provided by this 
section shall be subject to the regular notification procedures of 
the Committees on Appropriations. 
LIMITATION ON ASSISTANCE TO SECURITY FORCES 
SEC. 570. None of the funds made available by this Act may 
be provided to any unit of the security forces of a foreign country 
if the Secretary of State has credible evidence that such unit has 
committed gross violations of human rights, unless the Secretary 
determines and reports to the Committees on Appropriations that 
the government of such country is taking effective measures to 
bring the responsible members of the security forces unit to justice: 
Provided, That nothing in this section shall be construed to withhold 
funds made available by this Act from any unit of the security 
forces of a foreign country not credibly alleged to be involved in 
gross violations of human rights: Provided further. That in the 
event that funds are withheld from any unit pursuant to this 
section, the Secretary of State shall promptly inform the foreign 
government of the basis for such action and shall, to the maximum 
extent practicable, assist the foreign government in taking effective 
measures to bring the responsible members of the security forces 
to justice, 
LIMITATIONS ON TRANSFER OF MILITARY EQUIPMENT TO EAST TIMOR 
SEC. 571. In any agreement for the sale, transfer, or licensing 
of any lethal equipment or helicopter for Indonesia entered into 
by the United States pursusint to the authority of this Act or 
any other Act, the agreement shall state that the United States 
expects that the items will not be used in East Timor: Provided, 
That nothing in this section shall be construed to limit Indonesia's 
inherent right to legitimate national self-defense as recognized 
under the United Nations Charter and international law. 
I l l STAT. 2430 
PUBLIC LAW 105-118—NOV. 26, 1997 
TRANSPARENCY OF BUDGETS 
SEC. 572. (a) Section 576(a)(1) of the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1997, as con-
22USC262k-l. 
tained in Public Law 104-208, is amended to read as follows: 
"(1) does not have in place a functioning system for report-
ing to civilian authorities audits of receipts and expenditures 
that fund activities of the armed forces and security forces;", 
(b) Section 576(a)(2) of the Foreign Operations, Export Financ-
ing, and Related Programs Appropriations Act, 1997, as contained 
in Public Law 104-208, is amended to read as follows: 
"(2) has not provided to the institution information about 
the audit process requested by the institution.". 
RESTRICTIONS ON ASSISTANCE TO COUNTRIES PROVIDING SANCTUARY 
TO INDICTED WAR CRIMINALS 
SEC. 573. (a) BILATERAL ASSISTANCE.—None of the funds made 
available by this or any prior Act making appropriations fot foreign 
operations, export financing and related programs, may be provided 
for any country, entity or canton described in subsection (d). 
(b) MULTILATERAL ASSISTANCE.— 
(1) PROHIBITION.—The Secretary of the Treasury shall 
instruct the United States executive directors of the inter-
national financial institutions to work in opposition to, and 
vote against, any extension by such institutions of any financial 
or technical assistance or grants of any kind to any country 
or entity described in subsection (d). 
(2) NOTIFICATION.—Not less than 15 days before any vote 
in an international financial institution regarding the extension 
of financial or technical assistance or grants to any country 
or entity described in subsection (d), the Secretary of the Treas-
ury, in consultation with the Secretary of State, shall provide 
to the Committee on Appropriations and the Committee on 
Foreign Relations of the Senate and the Committee on Appro-
priations and the Committee on Banking and Financial Services 
of the House of Representatives a written justification for the 
proposed assistance, including an explanation of the United 
States position regarding any such vote, as well as a description 
of the location of the proposed assistance by municipality, its 
purpose, and its intended beneficiaries. 
(3) 
DEFINITION.—The 
term 
"international 
financial 
institution" includes the International Monetary Fund, the 
International Bank for Reconstruction and Development, the 
International 
Development 
Association, 
the 
International 
Finance Corporation, the Multilateral Investment Guaranty 
Agency, and the European Bank for Reconstruction and Devel-
opment. 
(c) EXCEPTIONS.— 
(1) IN GENERAL.—Subject to paragraph (2), subsections (a) 
and (b) shall not apply to the provision of— 
(A) humanitarian assistance; 
(B) democratization assistance; 
(C) assistance for cross border physical infrastructure 
projects involving activities in both a sanctioned country, 
entity, or canton and a nonsanctioned contiguous coiuitiy, 
entity, or canton, if the project is primarily located in 
and primarily benefits the nonsanctioned country, entity. 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2431 
or canton and if the portion of the project located in the 
sanctioned country, entity, or canton is necessary only to 
complete the project; 
(D) 
small-scale 
assistance 
projects 
or 
activities 
requested by United States Armed Forces that promote 
good relations between such forces and the officials and 
citizens of the areas in the United States SFOR sector 
of Bosnia; 
(E) implementation of the Brcko Arbitral Decision; 
(F) lending by the international financial institutions 
to a country or entity to support common monetary and 
fiscal policies at the national level as contemplated by 
the Daj^on Agreement; or 
(G) direct lending to a non-sanctioned entity, or lending 
passed on by the national government to a non-sanctioned 
entity. 
(2) 
FURTHER 
LIMITATIONS.—Notwithstanding paragraph 
( 1 ) -
(A) no assistance may be made available by this Act, 
or any prior Act making appropriations for foreign oper-
ations, export fiuEincing and related programs, in £iny coun-
try, entity, or canton described in subsection (d), for a 
program, project, or activity in which a publicly indicted 
war criminal is known to have any financial or material 
interest; and 
(B) no assistance (other than emergency foods or 
medical assistance or demining assistance) may be made 
available by this Act, or any prior Act making appropria-
tions for foreign operations, export financing and related 
programs for any program, project, or activity in a commu-
nity within any coiuitry, entity or canton described in sub-
section (d) if competent authorities within that community 
are not complying with the provisions of Article D
C and 
Annex 4, Article II, paragraph 8 of the Das^on Agreement 
relating to war crimes and the Tribunal. 
(d) SANCTIONED COUNTRY, ENTITY, OR CANTON.—A sanctioned 
country, entity, or canton described in this section is one whose 
competent authorities have failed, as determined by the Secretary 
of State, to take necessary and signific£int steps to apprehend 
and transfer to the Tribunal all persons who have been publicly 
indicted by the Tribunal. 
(e) WAIVER.— 
(1) IN GENERAL.—^The Secretary of State may waive the 
application of subsection (a) or subsection (b) with respect to 
specified bilateral programs or international financial institu-
tion projects or programs in a sanctioned country, entity, or 
canton upon providing a written determination to the Commit-
tee on Appropriations and the Committee on Foreign Relations 
of the Senate and the Committee on Appropriations and the 
Committee on International Relations of the House of Rep-
resentatives 
that 
such 
assistance 
directly 
supports 
the 
implementation of the Dajrton Agreement and its Annexes, 
which include the obligation to apprehend and transfer indicted 
war criminals to the Tribunal. 
(2) REPORT.—Not later than 15 days after the date of 
any written determination under paragraph (e)(1), the Sec-
retary of State shall submit a report to the Committee on 
I l l STAT. 2432 
PUBLIC LAW 105-118—NOV. 26, 1997 
Appropriations and the Committee on Foreign Relations of 
the Senate and the Committee on Appropriations and the 
Committee on International 
Relations of the House of 
Representatives regarding the status of efforts to secure the 
voluntary surrender or apprehension and transfer of persons 
indicted by the Tribimal, in accordance with the Dayton Agree-
ment, and outlining obstacles to achieving this goal. 
(3) ASSISTANCE PROGRAMS AND PROJECTS AFFECTED.—Any 
waiver made pursuant to this subsection shall be effective 
only with respect to a specified bilateral program or multilateral 
assistance project or program identified in the determination 
of the Secretary of State to Congress. 
(f) TERMINATION OF SANCTIONS.—The sanctions imposed pursu-
ant to subsections (a) and (b) with respect to a country or entity 
shall cease to apply only if the Secretary of State determines 
and certifies to Congress that the authorities of that country, entity, 
or canton have apprehended and transferred to the Tribunal all 
persons who have been publicly indicted by the Tribunal. 
(g) DEFINITIONS.—^As used in this section— 
(1) 
COUNTRY.—The 
term 
"country" 
means 
Bosnia-
Herzegovina, Croatia, and Serbia-Montenegro (Federal Republic 
of Yugoslavia). 
(2) ENTITY.—The term "entity" refers to the Federation 
of Bosnia and Herzegovina and the Republika Srpska. 
(3) CANTON.—The term "canton" means the administrative 
units in Bosnia and Herzegovina. 
(4) DAYTON AGREEMENT.—The term "Dayton Agreement" 
means the General Framework Agreement for Peace in Bosnia 
and Herzegovina, together with annexes relating thereto, done 
at Dayton, November 10 through 16, 1995. 
(5) TRIBUNAL.—The term "Tribunal" means the Inter-
national Criminal Tribunal for the Former Yugoslavia. 
(h) ROLE OF HUMAN RIGHTS ORGANIZATIONS AND GOVERNMENT 
AGENCIES.—In canying out this subsection, the Secretary of State, 
the Administrator of the Agency for International Development, 
and the executive directors of the international financial institutions 
shall consult with representatives of human rights organizations 
and all government agencies with relevant information to help 
prevent publicly indicted war criminals from benefitting from any 
financial or technical assistance or grants provided to any country 
or entity described in subsection (d). 
EXTENSION OF CERTAIN ADJUDICATION PROVISIONS 
SEC. 574. The Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 1990 (Public Law 101-167) 
is amended— 
(1) in section 599D (8 U.S.C. 1157 note)— 
(A) in subsection (b)(3), by striking "and 1997" and 
inserting "1997, and 1998"; and 
(B) in subsection (e), by striking "October 1, 1997" 
each place it appears and inserting "October 1, 1998"; 
and 
(2) in section 599E (8 U.S.C. 1255 note) in subsection 
(b)(2), by striking "September 30, 1997" and inserting "Septem-
ber 30, 1998". 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2433 
ADDITIONAL REQUIREMENTS RELATING TO STOCKPILING OF DEFENSE 
ARTICLES FOR FOREIGN ^COUNTRIES 
SEC. 575. (a) VALUE OF ADDITIONS TO STOCKPILES.—Section 
514(b)(2)(A) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321h(b)(2)(A)) is amended by inserting before the period at the 
end the following: "and $60,000,000 for fiscal year 1998". 
(b) REQUIREMENTS RELATING TO THE REPUBLIC OF KOREA AND 
THAILAND.—Section 
514(b)(2)(B) 
of 
such 
Act 
(22 
U.S.C. 
2321h(b)(2)(B)) is amended by adding at the end the following: 
"Of the amount specified in subparagraph (A) for fiscal year 1998, 
not more than $40,000,000 may be made available for stockpiles 
in the Republic of Korea and not more than $20,000,000 may 
be made available for stockpiles in Thailsind.". 
DELIVERY OF DRAWDOWN BY COMMERCIAL TRANSPORTATION 
SERVICES 
SEC. 576. Section 506 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2318) is amended— 
(1) in subsection (b)(2), by striking the period and inserting 
the following: ", including providing the Congress with a report 
detailing all defense articles, defense services, and military 
education smd training delivered to the recipient country or 
international organization upon delivery of such articles or 
upon completion of such services or education and training. 
Such report shall also include whether any savings were 
realized by utilizing commercial transport services rather than 
acquiring those services fi'om United States Government trans-
port assets."; 
(2) by redesignating subsection (c) as subsection (d); and 
(3) by inserting after subsection (b) the following: 
"(c) For the purposes of any provision of law that authorizes 
the drawdown of defense or other articles or commodities, or defense 
or other services from an agency of the United States Government, 
such drawdown may include the supply of commercial transpor-
tation and related services that are acquired by contract for the 
purposes of the drawdown in question if the cost to acquire such 
commercial transportation and related services is less than the 
cost to the United States Government of providing such services 
from existing agency assets.". 
TO PROHIBIT FOREIGN ASSISTANCE TO THE GOVERNMENT OF RUSSIA 
SHOULD IT IMPLEMENT LAWS WHICH WOULD DISCRIMINATE AGAINST 
MINORITY RELIGIOUS FAITHS IN THE RUSSIAN FEDERATION 
SEC. 577. (a) None of the funds appropriated under this Act President, 
may be made available for the Government of the Russian Federa- 
Certification. 
tion unless within 30 days of the date this section becomes effective 
the President determines and certifies in writing to the Committees 
on Appropriations and the Committee on Foreign Relations of the 
Senate and the Committee on International Relations of the House 
of Representatives that the Government of the Russian Federation 
has implemented no statute, executive order, regulation or similar 
government action that would discriminate, or would have as its 
principal effect discrimination, against religious groups or religious 
communities in the Russian Federation in violation of accepted 
I l l STAT. 2434 
PUBLIC LAW 105-118—NOV. 26, 1997 
international agreements on human rights and reUgious freedoms 
to which the Russian Federation is a party. 
Effective date. 
(b) This section shall become effective 150 days after the enact-
ment of this Act 
UNITED STATES POLICY REGARDING SUPPORT FOR COUNTRIES OF THE 
SOUTH CAUCASUS AND CENTRAL ASIA 
SEC. 578. (a) FINDINGS.—Congress makes the following findings: 
(1) The ancient Silk Road, once the economic lifeline of 
Central Asia and the South Caucasus, traversed much of the 
territory now within the countries of Armenia, Azerbaijan, 
Georgia, Kazakstan, Kyrgyzstan, Tajikistan, Turkmenistan, 
and Uzbekistan. 
(2) Economic interdependence spurred mutual cooperation 
among the peoples along the Silk Road and restoration of 
the historic relationships and economic ties between those peo-
ples is an important element of ensuring their sovereignty 
as well as the success of democratic and market reforms. 
(3) The development of strong political and economic ties 
between countries of the South Caucasus and Central Asia 
£ind the West will foster stability in the region. 
(4) The development of open market economies and open 
democratic systems in the countries of the South Caucasus 
and Central Asia will provide positive incentives for inter-
national private investment, increased trade, and other forms 
of commercial interactions with the rest of the world. 
(5) The Caspian Sea Basin, overlapping the territory of 
the countries of the South Caucasus and Central Asia, contains 
proven oil and gas reserves that may exceed $4,000,000,000,000 
in value. 
(6) The region of the South Caucasus and Central Asia 
will produce oil and gas in sufficient quantities to reduce the 
dependence of the United States on energy from the volatile 
Persian Gulf region. 
(7) United States foreign policy and international assist-
ance should be narrowly targeted to support the economic and 
political independence of the countries of the South Caucasus 
and Central Asia. 
(b) GENERAL.—^The policy of the United States in the countries 
of the South Caucasus and Central Asia should be— 
(1) to promote sovereignty and independence with demo-
cratic government; 
(2) to assist actively in the resolution of regional conflicts; 
(3) to promote friendly relations and economic cooperation; 
(4) to help promote 
market-oriented 
principles 
and 
practices; 
(5) to assist in the development of infrastructure necessary 
for communications, transportation, and energy and trade on 
an East-West axis in order to build strong international rela-
tions and commerce between those countries and the stable, 
democratic, and market-oriented countries of the Euro-Atlantic 
Community; and 
(6) to support United States business interests and invest-
ments in the region. 
(c) DEFINITION.—In this section, the term "countries of the 
South Caucasus and Central Asia" means Armenia, Azerbaijan, 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2435 
Georgia, Kazakstan, Kyrgystan, Tajikistan, Turkmenistan, and 
Uzbekistan. 
PAKISTAN 
SEC. 579. (a) OPIC—Section 239(f) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2199(f)) is amended by inserting ", or 
Pakistan" after "China". 
(b) TRADE AND DEVELOPMENT.—It is the sense of Congress 
that the Director of the Trade and Development Agency should 
use funds made available to carry out the provisions of section 
661 of the Foreign Assistance Act of 1961 (22 U.S.C. 2421) to 
promote United States exports to Pakistan. 
REQUIREMENTS FOR THE REPORTING TO CONGRESS OF THE COSTS TO 
THE 
FEDERAL GOVERNMENT ASSOCIATED WITH THE PROPOSED 
AGREEMENT TO REDUCE GREENHOUSE GAS EMISSIONS 
SEC. 580. The President shall provide to the Congress a detailed President. 
account of all Federal agency obligations and expenditures for cli-
mate change programs and activities, domestic and international, 
for fiscal year 1997, planned obligations for such activities in fiscal 
year 1998, and any plan for programs thereafter in the context 
of negotiations to amend the Framework Convention on Climate 
Change (FCCC) to be provided to the appropriate congressional 
committees no later than November 15,1997. 
AUTHORITY TO ISSUE INSURANCE AND EXTEND FINANCING 
SEC. 581. (a) IN GENERAL.—Section 235(a) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2195(a)) is amended— 
(1) by striking paragraphs (1) and (2)(A) and inserting 
the following: 
"(1) INSURANCE AND FINANCING.—(A) The maximum contin-
gent liability outstanding at any one time pursuant to insurance 
issued under section 234(a), and the amount of finsmcing issued 
under sections 234(b) and (c), shall not exceed in the aggregate 
$29,000,000,000."; 
(2) by redesignating paragraph (3) as paragraph (2); and 
(3) by amending paragraph (2) (as so redesignated) by 
striking "September 30, 1997" eind inserting "September 30, 
1999". 
(b) CONFORMING AMENDMENT.—Paragraph (2) of section 235(a) 
of that Act (22 U.S.C. 2195(a)), as redesignated by subsection (a), 
is further amended by striking "(a) and (b)" and inserting "(a), 
(b), and (c)". 
WITHHOLDING ASSISTANCE TO COUNTRIES VIOLATING UNITED 
NATIONS SANCTIONS AGAINST LIBYA 
SEC. 582. (a) WITHHOLDING OF ASSISTANCE.—Except as pro-
vided in subsection (b), whenever the President determines and 
certifies to Congress that the government of any country is violating 
any sanction against Libya imposed pursuant to United Nations 
Security Council Resolution 731, 748, or 883, then not less than 
5 percent of the funds allocated for the country under section 
653(a) of the Foreign Assistance Act of 1961 out of appropriations 
in this Act shall be withheld fi*om obligation and expenditure for 
that coimtry. 
I l l STAT. 2436 
PUBLIC LAW 105-118—NOV. 26, 1997 
(b) EXCEPTION.—The requirement to withhold funds under sub-
section (a) shall not apply to funds appropriated in this Act for 
allocation under section 653(a) of the Foreign Assistance Act of 
1961 for development assistance or for humanitarian assistance. 
(c) WAIVER.—Funds may be provided for a country without 
regard to subsection (a) if the President determines that to do 
so is in the national security interest of the United States. 
WAR CRIMES PROSECUTION 
SEC. 583. Section 2401 of title 18, United States Code (Public 
18 use 2441. 
Law 104-192; the War Crimes Act of 1996) is amended as follows— 
(1) in subsection (a), by striking "grave breach of the 
Geneva Conventions" and inserting "war crime"; 
(2) in subsection (b), by striking "breach" each place it 
appears and inserting "war crime"; and 
(3) so that subsection (c) reads as follows: 
"(c) DEFINITION.—^As used in this section the term 'war crime' 
means any conduct— 
"(1) defined as a grave breach in any of the international 
conventions signed at Geneva 12 August 1949, or any protocol 
to such convention to which the United States is a party; 
"(2) prohibited by Article 23, 25, 27, or 28 of the Annex 
to the Hague Convention IV, Respecting the Laws and Customs 
of War on Land, signed 18 October 1907; 
"(3) which constitutes a violation of common Article 3 of 
the international conventions signed at Geneva, 12 August 
1949, or any protocol to such convention to which the United 
States is a party and which deals with non-international armed 
conflict; or 
"(4) of a person who, in relation to an armed conflict and 
contrary to the provisions of the Protocol on Prohibitions or 
Restrictions on the Use of Mines, Booby-Traps and Other 
Devices as amended at Geneva on 3 May 1996 (Protocol II 
as amended on 3 May 1996), when the United States is a 
party to such Protocol, willfully kills or causes serious injury 
to civilians.". 
INTERNATIONAL MILITARY EDUCATION AND TRAINING PROGRAMS FOR 
LATIN AMERICA 
SEC. 584. (a) EXPANDED IMET.—The Secretary of Defense, in 
consultation with the Secretary of State, should make every effort 
to ensure that approximately 30 percent of the funds appropriated 
in this Act for "International Military Education and Training" 
for the cost of Latin American participants in IMET programs 
will be disbursed for the purpose of supporting enrollment of such 
participants in expanded IMET courses. 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2437 
(b) CIVILIAN PARTICIPATION.—The Secretary of State, in con-
sultation with the Secretary of Defense, should identify sufficient 
numbers of qualified, non-military personnel from countries in Latin 
America so that approximately 25 percent of the total number 
of individuals from Latin American countries attending United 
States supported I MET programs and the Center for Hemispheric 
Defense Studies at the National Defense University are civilians. 
(c) REPORT.—Not later than twelve months after the date of 
enactment of this Act, the Secretary of Defense, in consultation 
with the Secretary of State, shall report in writing to the appro-
priate committees of the Congress on the progress made to improve 
military training of Latin American participants in the areas of 
human rights and civiliein control of the military. The Secretary 
shall include in the report plans for implementing additional 
expanded IMET programs for Latin America during the next three 
fiscal years. 
AID TO THE GOVERNMENT OF THE DEMOCRATIC REPUBLIC OF CONGO 
SEC. 585. None of the funds appropriated or otherwise made Reports, 
available by this Act may be provided to the central Government 
of the Democratic Republic of Congo until such time as the President 
reports in writing to the Congress that the central Government 
of the Democratic Republic of Congo is cooperating fully with inves-
tigators from the United Nations in accounting for human rights 
violations committed in the Democratic Republic of Congo or adja-
cent countries. 
ASSISTANCE FOR THE MIDDLE EAST 
SEC. 586. Of the funds appropriated by this Act under the 
headings "Economic Support Fund", "Foreign Military Financing", 
"International Military Education and Training", "Peacekeeping 
Operations", for refugees resettling in Israel under the heading 
"Migration and Refugee Assistance", and for assistance for Israel 
to carry out provisions of chapter 8 of part II of the Foreign 
Assistance Act of 1961 imder the heading "Nonproliferation, Anti-
Terrorism, Demining, and Related Programs", not more than a 
total of $5,402,850,000 may be made available for Isirael, Egypt, 
Jordan, Lebanon, the West Bank and Gaza, the Israel-Lebanon 
Monitoring Group, the Multinational Force and Observers, the Mid-
dle East Regional Democracy Fund, Middle East Regional Coopera-
tion, and Middle East Multilateral Working Groups: Provided, That 
any funds that were appropriated under such headings in prior 
fiscal years and that were at the time of enactment of this Act 
obligated or allocated for other recipients may not during fiscal 
year 1998 be made available for activities that, if funded under 
this Act, would be required to count against this ceiling: Provided 
further, That funds may be made available notwithstanding the 
requirements of this section if the President determines and certifies 
to the Committees on Appropriations that it is important to the 
national security interest of the United States to do so and any 
such additional funds shall only be provided through the regular 
notification procedures of the Committees on Appropriations. 
I l l STAT. 2438 
PUBLIC LAW 105-11&—NOV. 26, 1997 
AGRICULTURE 
SEC. 587. The first proviso of subsection (k) under the heading 
"Assistance for the New Independent States of the Former Soviet 
Union" in the Foreign Operations, Export Financing, and Related 
Programs Appropriations Act, 1997, as contained in Pubhc Law 
110 Stat. 
104-208, is amended by striking "not less than" and inserting 
3009-129. 
in lieu thereof "up to". 
ENTERPRISE FUND RESTRICTIONS 
SEC. 588. Section 201(1) of the Support for East European 
Democracy Act (22 U.S.C. 5421(1)) is amended to read as follows: 
"(1) 
LIMITATION 
ON 
PAYMENTS 
TO 
ENTERPRISE 
FUND 
PERSONNEL.— 
"(1) No part of the funds of an Enterprise Fund shall 
inure to the benefit of any board member, officer, or employee 
of such Enterprise Fund, except as salary or reasonable com-
pensation for services subject to paragraph (2). 
"(2) An Enterprise Fund shall not pay compensation for 
services to— 
"(A) any board member of the Enterprise Fund, except 
for services as a board member; or 
"(B) any firm, association, or entity in which a board 
member of the Enterprise Fund serves as partner, director, 
officer, or employee. 
"(3) Nothing in paragraph (2) shall preclude payment for 
services performed before the date of enactment of this sub-
section nor for arrangements approved by the grantor and 
notified in writing to the Committees on Appropriations.". 
CAMBODIA 
SEC. 589. The Secretary of the Treasury should instruct the 
United States executive directors of the international 
financial 
institutions to use the voice and vote of the United States to 
oppose loans to the Government of Cambodia, except loans to 
support basic human needs. 
EXPORT F I N A N C I N G TRANSFER AUTHORITIES 
SEC. 590. Not to exceed 5 percent of any appropriation other 
than for administrative expenses made available for fiscal year 
1998 for programs under title I of this Act may be transferred 
between such appropriations for use for any of the purposes, pro-
grams and activities for which the funds in such receiving account 
may be used, but no such appropriation, except as otherwise specifi-
cally provided, shall be increased by more than 25 percent by 
any such transfer: Provided, That the exercise of such authority 
shall be subject to the regular notification procedures of the 
Committees on Appropriations. 
PUBLIC LAW 105-118—NOV. 26, 1997 
111 STAT. 2439 
DEVELOPMENT CREDIT AUTHORITY 
SEC. 591. For the cost, as defined in section 502 of the Congres-
sional Budget Act of 1974, of direct loans and loan guarantees 
in support of the development objectives of the Foreign Assistance 
Act of 1961, up to $7,500,000, which amount may be derived by 
transfer from funds appropriated by this Act to carry out part 
I of the Foreign Assistance Act of 1961 and funds appropriated 
by this Act under the heading "Assistance for Eastern Europe 
and the Baltic States", to remain available until expended: Provided, 
That up to $500,000 of the funds appropriated by this Act under 
the heading "Operating Expenses of the Agency for International 
Development" may be made available for administrative expenses 
to carry out such programs: Provided further, That the provisions Applicability. 
of section 107A(d) (relating to general provisions applicable to devel-
opment credit authority) of the Foreign Assistance Act of 1961, 
as added by section 306 of H.R. 1486 as reported by the House 
Committee on International Relations on May 9, 1997, shall be 
applicable to direct loans and loan guarantees provided under this 
paragraph: Provided further, That direct loans or losm guarantees 
under this paragraph may not be provided until the Director of 
the Office of Management and Budget has certified to the 
Committees on Appropriations that the Agency for International 
Development has established a credit management system capable 
of effectively managing the credit programs funded under this head-
ing, including that such system: (1) can provide accurate and timely 
provision of loan and loan guarantee data; (2) contains information 
control systems for loan and loan guarantee data; (3) is adequately 
staffed; and (4) contains appropriate review and monitoring proce-
dures. 
AUTHORIZATION FOR POPULATION PLANNING 
SEC. 592. (a) Not to exceed $385,000,000 of the 
funds 
appropriated in title II of this Act may be available for population 
planning activities or other population assistance. 
(b) Such funds may be apportioned only on a monthly basis, 
and such monthly apportionments may not exceed 8.34 percent 
of the total available for such activities. 
This Act may be cited as the "Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1998". 
Approved November 26, 1997. 
LEGISLATIVE HISTORY—H.R. 2159 (S. 955): 
HOUSE REPORTS: Nos. 105-176 (Comm. on Appropriations) and 105-401 (Comm. 
of Conference). 
SENATE REPORTS: No. 105-35 accompanying S. 955 (Comm. on Appropriations). 
CONGRESSIONAL RECORD, Vol. 143 (1997): 
July 30, Sept. 3, 4, considered and passed House. 
Sept. 5, considered and passed Senate, amended, in lieu of S. 955. 
Nov. 12, House agreed to conference report. 
Nov. 13, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 33 (1997): 
Nov. 26, Presidential statement.