H.L.C.

109TH CONGRESS

REPORT

HOUSE OF REPRESENTATIVES

1st Session

109-168
FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS 2006 AND 2007

JULY 13, 2005- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed
Mr. HYDE, from the Committee on International Relations, submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 2601]
[Including cost estimate of the Congressional Budget Office]

TABLE OF CONTENTS˙AE˙AF Page
The Amendment 2
Summary 90
Background and Purpose 90
Hearings 91
Committee Consideration 93
Votes of the Committee 96
Committee Oversight Findings 97
New Budget Authority and Tax Expenditures 97
Congressional Budget Office Cost Estimate 98
Performance Goals and Objectives 108
Constitutional Authority Statement 109
New Advisory Committees 109
Congressional Accountability Act 109
Section-by-Section Analysis 109
Changes in Existing Law Made by the Bill, as Reported 188
Additional Views 249

THE AMENDMENT

SECTION 1. SHORT TITLE.

SEC. 2. TABLE OF CONTENTS.

Sec. 1. Short Title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I--AUTHORIZATIONS OF APPROPRIATIONS
Sec. 101. Administration of foreign affairs.
Sec. 102. Contributions to international organizations.
Sec. 103. International commissions.
Sec. 104. Migration and Refugee Assistance.
Sec. 105. Centers and foundations.
Sec. 106. United States International Broadcasting activities.
TITLE II--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES
Sec. 201. Consolidation of law enforcement powers; new criminal offense.
Sec. 202. International litigation fund.
Sec. 203. Retention of medical reimbursements.
Sec. 204. Buying power maintenance account.
Sec. 205. Authority to administratively amend surcharges.
Sec. 206. Accountability review boards.
Sec. 207. Designation of Colin L. Powell Residential Plaza.
Sec. 208. Removal of contracting prohibition.
Sec. 209. Translation of reports of the Department of State.
Sec. 210. Entries within passports.
Sec. 211. United States actions with respect to Jerusalem as the capital of Israel.
Sec. 212. Availability of unclassified telecommunications facilities.
Sec. 213. Reporting formats.
Sec. 214. Extension of requirement for scholarships for Tibetans and Burmese.
Sec. 215. American Institute in Taiwan facilities enhancement.
Sec. 216. Activities related to Cuba.
TITLE III--ORGANIZATION AND PERSONNEL OF THE DEPARTMENT OF STATE
Sec. 301. Education allowances.
Sec. 302. Official residence expenses.
Sec. 303. Increased limits applicable to post differentials and danger pay allowances.
Sec. 304. Home leave.
Sec. 305. Overseas equalization and comparability pay adjustment.
Sec. 306. Fellowship of Hope Program.
Sec. 307. Regulations regarding retirement credit for government service performed abroad.
Sec. 308. Promoting assignments to international organizations.
Sec. 309. Suspension of Foreign Service members without pay.
Sec. 310. Death gratuity.
Sec. 311. Clarification of Foreign Service Grievance Board procedures.
Sec. 312. Repeal of recertification requirement for members of the Senior Foreign Service.
Sec. 313. Technical amendments to title 5, United States Code, provisions on recruitment, relocation, and retention bonuses.
Sec. 314. Limited appointments in the Foreign Service.
Sec. 315. Statement of Congress regarding career development program for Senior Foreign Service.
Sec. 316. Sense of Congress regarding additional United States consular posts.
Sec. 317. Office of the Culture of Lawfulness.
Sec. 318. Review of human resources policies of the Department of State.
TITLE IV--INTERNATIONAL ORGANIZATIONS
Sec. 401. REDI Center.
Sec. 402. Extension of authorization of appropriation for the United States Commission on International Religious Freedom.
Sec. 403. Reform of the International Atomic Energy Agency.
Sec. 404. Property disposition.
TITLE V--INTERNATIONAL BROADCASTING
Sec. 501. Short title.
Sec. 502. Middle East Broadcasting Networks.
Sec. 503. Improving signal delivery to Cuba.
Sec. 504. Establishing permanent authority for Radio Free Asia.
Sec. 505. Personal services contracting program.
Sec. 506. Commonwealth of the Northern Mariana Islands education benefits.
TITLE VI--ADVANCE DEMOCRACY ACT OF 2005
Sec. 601. Short title.
Sec. 602. Findings.
Sec. 603. Statement of policy.
Sec. 604. Definitions.
Subtitle A--Department of State Activities
Sec. 611. Promotion of democracy in foreign countries.
Sec. 612. Reports.
Sec. 613. Strategies to enhance the promotion of democracy in foreign countries.
Sec. 614. Activities by the United States to promote democracy and human rights in foreign countries.
Sec. 615. Democracy Promotion and Human Rights Advisory Board.
Sec. 616. Establishment and maintenance of Internet site for global democracy and human rights.
Sec. 617. Programs by United States missions in foreign countries and activities of chiefs of mission.
Sec. 618. Training for Foreign Service officers.
Sec. 619. Performance pay; promotions; Foreign Service awards.
Sec. 620. Appointments.
Subtitle B--Alliances with Other Democratic Countries
Sec. 631. Alliances with other democratic countries.
Sec. 632. Sense of Congress regarding the establishment of a Democracy Caucus.
Sec. 633. Annual diplomatic missions on multilateral issues.
Sec. 634. Strengthening the Community of Democracies.
Subtitle C--Funding for Promotion of Democracy
Sec. 641. Policy.
Sec. 642. Human Rights and Democracy Fund.
Subtitle D--Presidential Actions
Sec. 651. Investigation of violations of international humanitarian law.
Sec. 652. Presidential communications.
TITLE VII--STRATEGIC EXPORT CONTROL AND SECURITY ASSISTANCE ACT OF 2005
Subtitle A--General Provisions
Sec. 701. Short title.
Sec. 702. Definitions.
Sec. 703. Declaration of policy.
Subtitle B--Revising and Strengthening Strategic Export Control Policies
Sec. 711. Amendments to the State Department Basic Authorities Act of 1956.
Sec. 712. Strategic Export Control Board.
Sec. 713. Authorization for additional license and compliance officers.
Subtitle C--Procedures Relating to Export Licenses
Sec. 721. Transparency of jurisdictional determinations.
Sec. 722. Certifications relating to export of certain defense articles and defense services.
Sec. 723. Priority for United States military operations.
Sec. 724. License officer staffing and workload.
Sec. 725. Database of United States military assistance.
Sec. 726. Training and liaison for small businesses.
Sec. 727. Commercial communications satellite technical data.
Sec. 728. Reporting requirement for unlicensed exports.
Subtitle D--Terrorist-Related Provisions and Enforcement Matters
Sec. 731. Sensitive technology transfers to foreign persons located within the United States.
Sec. 732. Certification concerning exempt weapons transfers along the northern border of the United States.
Sec. 733. Comprehensive nature of United States arms embargoes.
Sec. 734. Control of items on Missile Technology Control Regime Annex.
Sec. 735. Unlawful use of United States defense articles.
Subtitle E--Strengthening United States Missile Nonproliferation Law
Sec. 741. Probationary period for foreign persons.
Sec. 742. Strengthening United States missile proliferation sanctions on foreign persons.
Sec. 743. Comprehensive United States missile proliferation sanctions on all responsible foreign persons.
Subtitle F--Security Assistance and Related Provisions
Sec. 751. Authority to transfer naval vessels to certain foreign countries.
Sec. 752. Transfer of obsolete and surplus items from Korean War Reserves Stockpile and removal or disposal of remaining items.
Sec. 753. Extension of Pakistan waivers.
Sec. 754. Reporting requirement for foreign military training.
Sec. 755. Certain services provided by the United States in connection with foreign military sales.
Sec. 756. Maritime interdiction patrol boats for Mozambique.
Sec. 757. Reimbursement for international military education and training.
TITLE VIII--NUCLEAR BLACK MARKET ELIMINATION ACT
Sec. 801. Short title.
Subtitle A--Sanctions for Transfers of Nuclear Enrichment, Reprocessing, and Weapons Technology, Equipment and Materials Involving Foreign Persons and Terrorists
Sec. 811. Authority to impose sanctions on foreign persons.
Sec. 812. Presidential notification on activities of foreign persons.
Subtitle B--Further Actions Against Corporations Associated With Sanctioned Foreign Persons
Sec. 821. Findings.
Sec. 822. Campaign by United States Government officials.
Sec. 823. Coordination.
Sec. 824. Report.
Subtitle C--Incentives for Proliferation Interdiction Cooperation
Sec. 831. Authority to provide assistance to cooperative countries.
Sec. 832. Types of assistance.
Sec. 833. Congressional notification.
Sec. 834. Limitation.
Sec. 835. Use of assistance.
Sec. 836. Limitation on ship or aircraft transfers to uncooperative countries.
Subtitle D--Rollback of Nuclear Proliferation Networks
Sec. 841. Nonproliferation as a condition of United States assistance.
Sec. 842. Report on identification of nuclear proliferation network host countries.
Sec. 843. Suspension of arms sales licenses and deliveries to nuclear proliferation network host countries.
Subtitle E--General Provisions
Sec. 851. Definitions.
TITLE IX--FOREIGN ASSISTANCE PROVISIONS
Subtitle A--Foreign Assistance Act of 1961 and Related Provisions
Chapter 1--Part I of the Foreign Assistance Act of 1961
Sec. 901. Assistance to establish centers for the treatment of obstetric fistula in developing countries.
Sec. 902. Support for small and medium enterprises in sub-Saharan Africa.
Sec. 903. Assistance to support democracy in Zimbabwe.
Sec. 904. Restrictions on United States voluntary contributions to the United Nations Development Program.
Sec. 905. Assistance for the Office of the Police Ombudsman for Northern Ireland.
Sec. 906. Report on foreign law enforcement training and assistance.
Sec. 907. Assistance for disaster mitigation efforts.
Sec. 908. Assistance to promote democracy in Belarus.
Sec. 909. Assistance for maternal and prenatal care for certain individuals of Belarus and Ukraine involved in the cleanup of the Chornobyl disaster.
Sec. 910. Assistance to address non-infectious diseases in foreign countries.
Chapter 2--Part II of the Foreign Assistance Act of 1961
Sec. 921. Economic support fund assistance for Egypt.
Sec. 922. Inter-Arab Democratic Charter.
Sec. 923. Middle East Partnership Initiative.
Sec. 924. West Bank and Gaza Program.
Sec. 925. Economic Support Fund assistance for Venezuela.
Chapter 3--Part III of the Foreign Assistance Act of 1961
Sec. 931. Support for pro-democracy and human rights organizations in certain countries.
Sec. 932. Limitation on assistance to the Palestinian Authority.
Sec. 933. Assistance for law enforcement forces.
Subtitle B--Other Provisions of Law
Sec. 941. Amendments to the Afghanistan Freedom Support Act of 2002.
Sec. 942. Amendments to the Tibetan Policy Act of 2002.
Sec. 943. Amendments to the Anglo-Irish Agreement Support Act of 1986.
Sec. 944. Assistance for demobilization and disarmament of former irregular combatants in Colombia.
Sec. 945. Support for famine relief in Ethiopia.
Sec. 946. Assistance to promote democracy and human rights in Vietnam.
Subtitle C--Miscellaneous Provisions
Sec. 951. Report on United States weapons transfers, sales, and licensing to Haiti.
Sec. 952. Sense of Congress regarding assistance for regional health education and training programs.
Sec. 953. Sense of Congress regarding assistance for regional health care delivery.
Sec. 954. Sense of Congress regarding elimination of extreme poverty in developing countries.
Sec. 955. Sense of Congress regarding United States foreign assistance.
TITLE X--REPORTING REQUIREMENTS
Sec. 1001. Trans-Sahara Counter-Terrorism Initiative.
Sec. 1002. Annual Patterns of Global Terrorism Report.
Sec. 1003. Dual gateway policy of the Government of Ireland.
Sec. 1004. Stabilization in Haiti.
Sec. 1005. Verification reports to Congress.
Sec. 1006. Protection of refugees from North Korea.
Sec. 1007. Acquisition and major security upgrades.
Sec. 1008. Services for children with autism at overseas missions.
Sec. 1009. Incidence and prevalence of autism worldwide.
Sec. 1010. Internet jamming.
Sec. 1011. Department of State employment composition.
Sec. 1012. Incitement to acts of discrimination.
Sec. 1013. Child marriage.
Sec. 1014. Magen David Adom Society.
Sec. 1015. Developments in and policy toward Indonesia.
Sec. 1016. Murders of United States citizens John Branchizio, Mark Parson, and John Marin Linde.
Sec. 1017. Diplomatic relations with Israel.
Sec. 1018. Tax enforcement in Colombia.
Sec. 1019. Provision of consular and visa services in Pristina, Kosova.
Sec. 1020. Democracy in Pakistan.
Sec. 1021. Status of the sovereignty of Lebanon.
Sec. 1022. Activities of international terrorist organizations in Latin America and the Caribbean.
Sec. 1023. Analysis of employing weapons scientists from the former Soviet Union in Project Bioshield.
Sec. 1024. Extradition of violent criminals from Mexico to the United States.
Sec. 1025. Actions of the 661 Committee.
Sec. 1026. Elimination of report on real estate transactions.
TITLE XI--MISCELLANEOUS PROVISIONS
Subtitle A--General Provisions
Sec. 1101. Statement of policy relating to democracy in Iran.
Sec. 1102. Iranian nuclear activities.
Sec. 1103. Location of international institutions in Africa.
Sec. 1104. Benjamin Gilman International Scholarship program.
Sec. 1105. Prohibition on commemorations relating to leaders of Imperial Japan.
Sec. 1106. United States policy regarding World Bank Group loans to Iran.
Sec. 1107. Statement of policy regarding support for SECI Regional Center for Combating Trans-Border Crime.
Sec. 1108. Statement of policy urging Turkey to respect the rights and religious freedoms of the Ecumenical Patriarch.
Sec. 1109. Statement of policy regarding the murder of United States citizen John M. Alvis.
Sec. 1110. Statement of Congress and policy with respect to the disenfranchisement of women.
Subtitle B--Sense of Congress Provisions
Sec. 1111. Korean Fulbright programs.
Sec. 1112. United States relations with Taiwan.
Sec. 1113. Nuclear proliferation and A. Q. Khan.
Sec. 1114. Palestinian textbooks.
Sec. 1115. International convention affirming the human rights and dignity of persons with disabilities.
Sec. 1116. Fulbright Scholarships for East Asia and the Pacific.
Sec. 1117. Baku-Tbilisi-Ceyhan energy pipeline.
Sec. 1118. Legislation requiring the fair, comprehensive, and nondiscriminatory restitution of private property confiscated in Poland.
Sec. 1119. Child labor practices in the cocoa sectors of Cote d'Ivoire and Ghana.
Sec. 1120. Contributions of Iraqi Kurds.
Sec. 1121. Proliferation Security Initiative.
Sec. 1122. Security of nuclear weapons and materials.
Sec. 1123. International Criminal Court and genocide in Darfur, Sudan.
Sec. 1124. Action against al-Manar television.
Sec. 1125. Stability and security in Iraq.
Sec. 1126. Property expropriated by the Government of Ethiopia.

SEC. 3. DEFINITIONS.

TITLE I--AUTHORIZATIONS OF APPROPRIATIONS

SEC. 101. ADMINISTRATION OF FOREIGN AFFAIRS.

SEC. 102. CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS.

SEC. 103. INTERNATIONAL COMMISSIONS.

SEC. 104. MIGRATION AND REFUGEE ASSISTANCE.

SEC. 105. CENTERS AND FOUNDATIONS.

SEC. 106. UNITED STATES INTERNATIONAL BROADCASTING ACTIVITIES.

TITLE II--DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES

SEC. 201. CONSOLIDATION OF LAW ENFORCEMENT POWERS; NEW CRIMINAL OFFENSE.

`Sec. 3064. Powers of special agents in the Department of State and the Foreign Service

`3064. Powers of special agents in the Department of State and the Foreign Service.'.

SEC. 202. INTERNATIONAL LITIGATION FUND.

SEC. 203. RETENTION OF MEDICAL REIMBURSEMENTS.

SEC. 204. BUYING POWER MAINTENANCE ACCOUNT.

SEC. 205. AUTHORITY TO ADMINISTRATIVELY AMEND SURCHARGES.

SEC. 206. ACCOUNTABILITY REVIEW BOARDS.

SEC. 207. DESIGNATION OF COLIN L. POWELL RESIDENTIAL PLAZA.

SEC. 208. REMOVAL OF CONTRACTING PROHIBITION.

SEC. 209. TRANSLATION OF REPORTS OF THE DEPARTMENT OF STATE.

SEC. 210. ENTRIES WITHIN PASSPORTS.

SEC. 211. UNITED STATES ACTIONS WITH RESPECT TO JERUSALEM AS THE CAPITAL OF ISRAEL.

SEC. 212. AVAILABILITY OF UNCLASSIFIED TELECOMMUNICATIONS FACILITIES.

SEC. 213. REPORTING FORMATS.

SEC. 214. EXTENSION OF REQUIREMENT FOR SCHOLARSHIPS FOR TIBETANS AND BURMESE.

SEC. 215. AMERICAN INSTITUTE IN TAIWAN FACILITIES ENHANCEMENT.

SEC. 216. ACTIVITIES RELATED TO CUBA.

TITLE III--ORGANIZATION AND PERSONNEL OF THE DEPARTMENT OF STATE

SEC. 301. EDUCATION ALLOWANCES.

SEC. 302. OFFICIAL RESIDENCE EXPENSES.

SEC. 303. INCREASED LIMITS APPLICABLE TO POST DIFFERENTIALS AND DANGER PAY ALLOWANCES.

SEC. 304. HOME LEAVE.

SEC. 305. OVERSEAS EQUALIZATION AND COMPARABILITY PAY ADJUSTMENT.

`SEC. 415. OVERSEAS COMPARABILITY PAY ADJUSTMENT.

`Sec. 415. Overseas comparability pay adjustment.'.

` 
-----------------------------------------------------------
-----------------------------------------------------------
Percentage                       Time Period 
              7.5                  Before January 1, 1999. 
             7.75   January 1, 1999, to December 31, 1999. 
              7.9   January 1, 2000, to December 31, 2000. 
             7.55 January 11, 2003, to September 30, 2004. 
              7.5              After September 30, 2004.'. 
-----------------------------------------------------------

SEC. 306. FELLOWSHIP OF HOPE PROGRAM.

`SEC. 506. FELLOWSHIP OF HOPE PROGRAM.

`Sec. 503. Assignments to agencies, international organizations, foreign governments, or other bodies.';

`Sec. 506. Fellowship of Hope Program.'.

SEC. 307. REGULATIONS REGARDING RETIREMENT CREDIT FOR GOVERNMENT SERVICE PERFORMED ABROAD.

SEC. 308. PROMOTING ASSIGNMENTS TO INTERNATIONAL ORGANIZATIONS.

SEC. 309. SUSPENSION OF FOREIGN SERVICE MEMBERS WITHOUT PAY.

`Sec. 610. Separation for cause; suspension.'.

SEC. 310. DEATH GRATUITY.

SEC. 311. CLARIFICATION OF FOREIGN SERVICE GRIEVANCE BOARD PROCEDURES.

SEC. 312. REPEAL OF RECERTIFICATION REQUIREMENT FOR MEMBERS OF THE SENIOR FOREIGN SERVICE.

SEC. 313. TECHNICAL AMENDMENTS TO TITLE 5, UNITED STATES CODE, PROVISIONS ON RECRUITMENT, RELOCATION, AND RETENTION BONUSES.

SEC. 314. LIMITED APPOINTMENTS IN THE FOREIGN SERVICE.

SEC. 315. STATEMENT OF CONGRESS REGARDING CAREER DEVELOPMENT PROGRAM FOR SENIOR FOREIGN SERVICE.

SEC. 316. SENSE OF CONGRESS REGARDING ADDITIONAL UNITED STATES CONSULAR POSTS.

SEC. 317. OFFICE OF THE CULTURE OF LAWFULNESS.

SEC. 318. REVIEW OF HUMAN RESOURCES POLICIES OF THE DEPARTMENT OF STATE.

TITLE IV--INTERNATIONAL ORGANIZATIONS

SEC. 401. REDI CENTER.

SEC. 402. EXTENSION OF AUTHORIZATION OF APPROPRIATION FOR THE UNITED STATES COMMISSION ON INTERNATIONAL RELIGIOUS FREEDOM.

SEC. 403. REFORM OF THE INTERNATIONAL ATOMIC ENERGY AGENCY.

SEC. 404. PROPERTY DISPOSITION.

TITLE V--INTERNATIONAL BROADCASTING

SEC. 501. SHORT TITLE.

SEC. 502. MIDDLE EAST BROADCASTING NETWORKS.

`SEC. 309A. MIDDLE EAST BROADCASTING NETWORKS.

SEC. 503. IMPROVING SIGNAL DELIVERY TO CUBA.

SEC. 504. ESTABLISHING PERMANENT AUTHORITY FOR RADIO FREE ASIA.

SEC. 505. PERSONAL SERVICES CONTRACTING PROGRAM.

SEC. 506. COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS EDUCATION BENEFITS.

TITLE VI--ADVANCE DEMOCRACY ACT OF 2005

SEC. 601. SHORT TITLE.

SEC. 602. FINDINGS.

SEC. 603. STATEMENT OF POLICY.

SEC. 604. DEFINITIONS.

Subtitle A--Department of State Activities

SEC. 611. PROMOTION OF DEMOCRACY IN FOREIGN COUNTRIES.

SEC. 612. REPORTS.

(aa) All citizens of such county have the right to, and are not restricted in practice from, fully and freely participating in the political life of such country regardless of gender, race, language, religion, or beliefs.

(bb) The national legislative body of such country and, if directly elected, the head of government of such country, are chosen by free, fair, open, and periodic elections, by universal and equal suffrage, and by secret ballot.

(cc) More than one political party in such country has candidates who seek elected office at the national level and such parties are not restricted in their political activities or their process for selecting such candidates, except for reasonable administrative requirements commonly applied in countries categorized as fully democratic.

(dd) All citizens in such country have a right to, and are not restricted in practice from, fully exercising the freedoms of thought, conscience, belief, peaceful assembly and association, speech, opinion, and expression, and such country has a free, independent, and pluralistic media.

(ee) The current government of such country did not come to power in a manner contrary to the rule of law.

(ff) Such country possesses an independent judiciary and the government of such country generally respects the rule of law.

SEC. 613. STRATEGIES TO ENHANCE THE PROMOTION OF DEMOCRACY IN FOREIGN COUNTRIES.

SEC. 614. ACTIVITIES BY THE UNITED STATES TO PROMOTE DEMOCRACY AND HUMAN RIGHTS IN FOREIGN COUNTRIES.

SEC. 615. DEMOCRACY PROMOTION AND HUMAN RIGHTS ADVISORY BOARD.

SEC. 616. ESTABLISHMENT AND MAINTENANCE OF INTERNET SITE FOR GLOBAL DEMOCRACY AND HUMAN RIGHTS.

SEC. 617. PROGRAMS BY UNITED STATES MISSIONS IN FOREIGN COUNTRIES AND ACTIVITIES OF CHIEFS OF MISSION.

SEC. 618. TRAINING FOR FOREIGN SERVICE OFFICERS.

SEC. 619. PERFORMANCE PAY; PROMOTIONS; FOREIGN SERVICE AWARDS.

SEC. 620. APPOINTMENTS.

Subtitle B--Alliances With Other Democratic Countries

SEC. 631. ALLIANCES WITH OTHER DEMOCRATIC COUNTRIES.

SEC. 632. SENSE OF CONGRESS REGARDING THE ESTABLISHMENT OF A DEMOCRACY CAUCUS.

SEC. 633. ANNUAL DIPLOMATIC MISSIONS ON MULTILATERAL ISSUES.

SEC. 634. STRENGTHENING THE COMMUNITY OF DEMOCRACIES.

Subtitle C--Funding for Promotion of Democracy

SEC. 641. POLICY.

SEC. 642. HUMAN RIGHTS AND DEMOCRACY FUND.

Subtitle D--Presidential Actions

SEC. 651. INVESTIGATION OF VIOLATIONS OF INTERNATIONAL HUMANITARIAN LAW.

SEC. 652. PRESIDENTIAL COMMUNICATIONS.

TITLE VII--STRATEGIC EXPORT CONTROL AND SECURITY ASSISTANCE ACT OF 2005

Subtitle A--General Provisions

SEC. 701. SHORT TITLE.

SEC. 702. DEFINITIONS.

SEC. 703. DECLARATION OF POLICY.

Subtitle B--Revising and Strengthening Strategic Export Control Policies

SEC. 711. AMENDMENTS TO THE STATE DEPARTMENT BASIC AUTHORITIES ACT OF 1956.

SEC. 712. STRATEGIC EXPORT CONTROL BOARD.

SEC. 713. AUTHORIZATION FOR ADDITIONAL LICENSE AND COMPLIANCE OFFICERS.

Subtitle C--Procedures Relating to Export Licenses

SEC. 721. TRANSPARENCY OF JURISDICTIONAL DETERMINATIONS.

SEC. 722. CERTIFICATIONS RELATING TO EXPORT OF CERTAIN DEFENSE ARTICLES AND DEFENSE SERVICES.

SEC. 723. PRIORITY FOR UNITED STATES MILITARY OPERATIONS.

SEC. 724. LICENSE OFFICER STAFFING AND WORKLOAD.

SEC. 725. DATABASE OF UNITED STATES MILITARY ASSISTANCE.

SEC. 726. TRAINING AND LIAISON FOR SMALL BUSINESSES.

SEC. 727. COMMERCIAL COMMUNICATIONS SATELLITE TECHNICAL DATA.

SEC. 728. REPORTING REQUIREMENT FOR UNLICENSED EXPORTS.

Subtitle D--Terrorist-Related Provisions and Enforcement Matters

SEC. 731. SENSITIVE TECHNOLOGY TRANSFERS TO FOREIGN PERSONS LOCATED WITHIN THE UNITED STATES.

SEC. 732. CERTIFICATION CONCERNING EXEMPT WEAPONS TRANSFERS ALONG THE NORTHERN BORDER OF THE UNITED STATES.

SEC. 733. COMPREHENSIVE NATURE OF UNITED STATES ARMS EMBARGOES.

SEC. 734. CONTROL OF ITEMS ON MISSILE TECHNOLOGY CONTROL REGIME ANNEX.

SEC. 735. UNLAWFUL USE OF UNITED STATES DEFENSE ARTICLES.

Subtitle E--Strengthening United States Missile Nonproliferation Law

SEC. 741. PROBATIONARY PERIOD FOR FOREIGN PERSONS.

SEC. 742. STRENGTHENING UNITED STATES MISSILE PROLIFERATION SANCTIONS ON FOREIGN PERSONS.

SEC. 743. COMPREHENSIVE UNITED STATES MISSILE PROLIFERATION SANCTIONS ON ALL RESPONSIBLE FOREIGN PERSONS.

Subtitle F--Security Assistance and Related Provisions

SEC. 751. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.

SEC. 752. TRANSFER OF OBSOLETE AND SURPLUS ITEMS FROM KOREAN WAR RESERVES STOCKPILE AND REMOVAL OR DISPOSAL OF REMAINING ITEMS.

SEC. 753. EXTENSION OF PAKISTAN WAIVERS.

SEC. 754. REPORTING REQUIREMENT FOR FOREIGN MILITARY TRAINING.

SEC. 755. CERTAIN SERVICES PROVIDED BY THE UNITED STATES IN CONNECTION WITH FOREIGN MILITARY SALES.

SEC. 756. MARITIME INTERDICTION PATROL BOATS FOR MOZAMBIQUE.

SEC. 757. REIMBURSEMENT FOR INTERNATIONAL MILITARY EDUCATION AND TRAINING.

TITLE VIII--NUCLEAR BLACK MARKET ELIMINATION ACT

SEC. 801. SHORT TITLE.

Subtitle A--Sanctions for Transfers of Nuclear Enrichment, Reprocessing, and Weapons Technology, Equipment and Materials Involving Foreign Persons and Terrorists

SEC. 811. AUTHORITY TO IMPOSE SANCTIONS ON FOREIGN PERSONS.

SEC. 812. PRESIDENTIAL NOTIFICATION ON ACTIVITIES OF FOREIGN PERSONS.

Subtitle B--Further Actions Against Corporations Associated With Sanctioned Foreign Persons

SEC. 821. FINDINGS.

SEC. 822. CAMPAIGN BY UNITED STATES GOVERNMENT OFFICIALS.

SEC. 823. COORDINATION.

SEC. 824. REPORT.

Subtitle C--Incentives for Proliferation Interdiction Cooperation

SEC. 831. AUTHORITY TO PROVIDE ASSISTANCE TO COOPERATIVE COUNTRIES.

SEC. 832. TYPES OF ASSISTANCE.

SEC. 833. CONGRESSIONAL NOTIFICATION.

SEC. 834. LIMITATION.

SEC. 835. USE OF ASSISTANCE.

SEC. 836. LIMITATION ON SHIP OR AIRCRAFT TRANSFERS TO UNCOOPERATIVE COUNTRIES.

Subtitle D--Rollback of Nuclear Proliferation Networks

SEC. 841. NONPROLIFERATION AS A CONDITION OF UNITED STATES ASSISTANCE.

SEC. 842. REPORT ON IDENTIFICATION OF NUCLEAR PROLIFERATION NETWORK HOST COUNTRIES.

SEC. 843. SUSPENSION OF ARMS SALES LICENSES AND DELIVERIES TO NUCLEAR PROLIFERATION NETWORK HOST COUNTRIES.

Subtitle E--General Provisions

SEC. 851. DEFINITIONS.

TITLE IX--FOREIGN ASSISTANCE PROVISIONS

Subtitle A--Foreign Assistance Act of 1961 and Related Provisions

CHAPTER 1--PART I OF THE FOREIGN ASSISTANCE ACT OF 1961

SEC. 901. ASSISTANCE TO ESTABLISH CENTERS FOR THE TREATMENT OF OBSTETRIC FISTULA IN DEVELOPING COUNTRIES.

SEC. 902. SUPPORT FOR SMALL AND MEDIUM ENTERPRISES IN SUB-SAHARAN AFRICA.

SEC. 903. ASSISTANCE TO SUPPORT DEMOCRACY IN ZIMBABWE.

SEC. 904. RESTRICTIONS ON UNITED STATES VOLUNTARY CONTRIBUTIONS TO THE UNITED NATIONS DEVELOPMENT PROGRAM.

SEC. 905. ASSISTANCE FOR THE OFFICE OF THE POLICE OMBUDSMAN FOR NORTHERN IRELAND.

SEC. 906. REPORT ON FOREIGN LAW ENFORCEMENT TRAINING AND ASSISTANCE.

SEC. 907. ASSISTANCE FOR DISASTER MITIGATION EFFORTS.

SEC. 908. ASSISTANCE TO PROMOTE DEMOCRACY IN BELARUS.

SEC. 909. ASSISTANCE FOR MATERNAL AND PRENATAL CARE FOR CERTAIN INDIVIDUALS OF BELARUS AND UKRAINE INVOLVED IN THE CLEANUP OF THE CHORNOBYL DISASTER.

SEC. 910. ASSISTANCE TO ADDRESS NON-INFECTIOUS DISEASES IN FOREIGN COUNTRIES.

CHAPTER 2--PART II OF THE FOREIGN ASSISTANCE ACT OF 1961

SEC. 921. ECONOMIC SUPPORT FUND ASSISTANCE FOR EGYPT.

`SEC. 535. REQUIREMENTS RELATING TO ASSISTANCE FOR EGYPT.

SEC. 922. INTER-ARAB DEMOCRATIC CHARTER.

SEC. 923. MIDDLE EAST PARTNERSHIP INITIATIVE.

SEC. 924. WEST BANK AND GAZA PROGRAM.

SEC. 925. ECONOMIC SUPPORT FUND ASSISTANCE FOR VENEZUELA.

CHAPTER 3--PART III OF THE FOREIGN ASSISTANCE ACT OF 1961

SEC. 931. SUPPORT FOR PRO-DEMOCRACY AND HUMAN RIGHTS ORGANIZATIONS IN CERTAIN COUNTRIES.

SEC. 932. LIMITATION ON ASSISTANCE TO THE PALESTINIAN AUTHORITY.

`SEC. 620K. LIMITATION ON ASSISTANCE TO THE PALESTINIAN AUTHORITY.

SEC. 933. ASSISTANCE FOR LAW ENFORCEMENT FORCES.

Subtitle B--Other Provisions of Law

SEC. 941. AMENDMENTS TO THE AFGHANISTAN FREEDOM SUPPORT ACT OF 2002.

SEC. 942. AMENDMENTS TO THE TIBETAN POLICY ACT OF 2002.

`SEC. 619. REQUIREMENT FOR TIBETAN LANGUAGE TRAINING.

SEC. 943. AMENDMENTS TO THE ANGLO-IRISH AGREEMENT SUPPORT ACT OF 1986.

SEC. 944. ASSISTANCE FOR DEMOBILIZATION AND DISARMAMENT OF FORMER IRREGULAR COMBATANTS IN COLOMBIA.

SEC. 945. SUPPORT FOR FAMINE RELIEF IN ETHIOPIA.

SEC. 946. ASSISTANCE TO PROMOTE DEMOCRACY AND HUMAN RIGHTS IN VIETNAM.

Subtitle C--Miscellaneous Provisions

SEC. 951. REPORT ON UNITED STATES WEAPONS TRANSFERS, SALES, AND LICENSING TO HAITI.

SEC. 952. SENSE OF CONGRESS REGARDING ASSISTANCE FOR REGIONAL HEALTH EDUCATION AND TRAINING PROGRAMS.

SEC. 953. SENSE OF CONGRESS REGARDING ASSISTANCE FOR REGIONAL HEALTH CARE DELIVERY.

SEC. 954. SENSE OF CONGRESS REGARDING ELIMINATION OF EXTREME POVERTY IN DEVELOPING COUNTRIES.

SEC. 955. SENSE OF CONGRESS REGARDING UNITED STATES FOREIGN ASSISTANCE.

TITLE X--REPORTING REQUIREMENTS

SEC. 1001. TRANS-SAHARA COUNTER-TERRORISM INITIATIVE.

SEC. 1002. ANNUAL PATTERNS OF GLOBAL TERRORISM REPORT.

`SEC. 140. ANNUAL PATTERNS OF GLOBAL TERRORISM REPORT.'.

`Sec. 140. Annual patterns of global terrrorism report.'.

SEC. 1003. DUAL GATEWAY POLICY OF THE GOVERNMENT OF IRELAND.

SEC. 1004. STABILIZATION IN HAITI.

SEC. 1005. VERIFICATION REPORTS TO CONGRESS.

SEC. 1006. PROTECTION OF REFUGEES FROM NORTH KOREA.

SEC. 1007. ACQUISITION AND MAJOR SECURITY UPGRADES.

SEC. 1008. SERVICES FOR CHILDREN WITH AUTISM AT OVERSEAS MISSIONS.

SEC. 1009. INCIDENCE AND PREVALENCE OF AUTISM WORLDWIDE.

SEC. 1010. INTERNET JAMMING.

SEC. 1011. DEPARTMENT OF STATE EMPLOYMENT COMPOSITION.

SEC. 1012. INCITEMENT TO ACTS OF DISCRIMINATION.

SEC. 1013. CHILD MARRIAGE.

SEC. 1014. MAGEN DAVID ADOM SOCIETY.

SEC. 1015. DEVELOPMENTS IN AND POLICY TOWARD INDONESIA.

SEC. 1016. MURDERS OF UNITED STATES CITIZENS JOHN BRANCHIZIO, MARK PARSON, AND JOHN MARIN LINDE.

SEC. 1017. DIPLOMATIC RELATIONS WITH ISRAEL.

SEC. 1018. TAX ENFORCEMENT IN COLOMBIA.

SEC. 1019. PROVISION OF CONSULAR AND VISA SERVICES IN PRISTINA, KOSOVA.

SEC. 1020. DEMOCRACY IN PAKISTAN.

SEC. 1021. STATUS OF THE SOVEREIGNTY OF LEBANON.

SEC. 1022. ACTIVITIES OF INTERNATIONAL TERRORIST ORGANIZATIONS IN LATIN AMERICA AND THE CARIBBEAN.

SEC. 1023. ANALYSIS OF EMPLOYING WEAPONS SCIENTISTS FROM THE FORMER SOVIET UNION IN PROJECT BIOSHIELD.

SEC. 1024. EXTRADITION OF VIOLENT CRIMINALS FROM MEXICO TO THE UNITED STATES.

SEC. 1025. ACTIONS OF THE 661 COMMITTEE.

SEC. 1026. ELIMINATION OF REPORT ON REAL ESTATE TRANSACTIONS.

TITLE XI--MISCELLANEOUS PROVISIONS

Subtitle A--General Provisions

SEC. 1101. STATEMENT OF POLICY RELATING TO DEMOCRACY IN IRAN.

SEC. 1102. IRANIAN NUCLEAR ACTIVITIES.

SEC. 1103. LOCATION OF INTERNATIONAL INSTITUTIONS IN AFRICA.

SEC. 1104. BENJAMIN GILMAN INTERNATIONAL SCHOLARSHIP PROGRAM.

SEC. 1105. PROHIBITION ON COMMEMORATIONS RELATING TO LEADERS OF IMPERIAL JAPAN.

SEC. 1106. UNITED STATES POLICY REGARDING WORLD BANK GROUP LOANS TO IRAN.

SEC. 1107. STATEMENT OF POLICY REGARDING SUPPORT FOR SECI REGIONAL CENTER FOR COMBATING TRANS-BORDER CRIME.

SEC. 1108. STATEMENT OF POLICY URGING TURKEY TO RESPECT THE RIGHTS AND RELIGIOUS FREEDOMS OF THE ECUMENICAL PATRIARCH.

SEC. 1109. STATEMENT OF POLICY REGARDING THE MURDER OF UNITED STATES CITIZEN JOHN M. ALVIS.

SEC. 1110. STATEMENT OF CONGRESS AND POLICY WITH RESPECT TO THE DISENFRANCHISEMENT OF WOMEN.

Subtitle B--Sense of Congress Provisions

SEC. 1111. KOREAN FULBRIGHT PROGRAMS.

SEC. 1112. UNITED STATES RELATIONS WITH TAIWAN.

SEC. 1113. NUCLEAR PROLIFERATION AND A. Q. KHAN.

SEC. 1114. PALESTINIAN TEXTBOOKS.

SEC. 1115. INTERNATIONAL CONVENTION AFFIRMING THE HUMAN RIGHTS AND DIGNITY OF PERSONS WITH DISABILITIES.

SEC. 1116. FULBRIGHT SCHOLARSHIPS FOR EAST ASIA AND THE PACIFIC.

SEC. 1117. BAKU-TBILISI-CEYHAN ENERGY PIPELINE.

SEC. 1118. LEGISLATION REQUIRING THE FAIR, COMPREHENSIVE, AND NONDISCRIMINATORY RESTITUTION OF PRIVATE PROPERTY CONFISCATED IN POLAND.

SEC. 1119. CHILD LABOR PRACTICES IN THE COCOA SECTORS OF COTE D'IVOIRE AND GHANA.

SEC. 1120. CONTRIBUTIONS OF IRAQI KURDS.

SEC. 1121. PROLIFERATION SECURITY INITIATIVE.

SEC. 1122. SECURITY OF NUCLEAR WEAPONS AND MATERIALS.

SEC. 1123. INTERNATIONAL CRIMINAL COURT AND GENOCIDE IN DARFUR, SUDAN.

SEC. 1124. ACTION AGAINST AL-MANAR TELEVISION.

SEC. 1125. STABILITY AND SECURITY IN IRAQ.

SEC. 1126. PROPERTY EXPROPRIATED BY THE GOVERNMENT OF ETHIOPIA.

SUMMARY

The Foreign Relations Authorization Act for Fiscal Years 2006 and 2007 (H.R. 2601) authorizes funding for the Department of State, for the Broadcasting Board of Governors which is responsible for U.S. international broadcasting activities, for security assistance, and other foreign affairs programs. H.R. 2601 continues efforts by this Committee to protect the national security interests of the United States, reform the mission of U.S. foreign policy agencies, and strengthen the U.S. diplomatic platform to better serve U.S. citizens and promote U.S. interests.

The legislation also continues efforts to focus on key foreign policy and national security problems facing the nation. The legislation carries out reforms in the strategic export control area to ensure that U.S. military and dual-use technology does not get into the hands of our enemies. It addresses the problem of the trade in nuclear weapons technology that has been uncovered in the last few years and it carries out wide-ranging reforms to the Department of State to institutionalize efforts to promote democracy abroad.

BACKGROUND AND PURPOSE

This bill provides various authorities for the Department of State and the Broadcasting Board of Governors to carry out operations of the agencies for fiscal years 2006 and 2007. As required by law, these agencies must have the authority which is provided in this bill to spend appropriated funds.

In the nearly 4 years since September 11, 2001, there has been an increased appreciation for a strong and robust diplomatic effort to protect U.S. national interests abroad. H.R. 2601 continues the Committee's support for that effort. The legislation meets the President's request for increases in the amount for the daily operations of the Department of State, particularly its diplomatic operations abroad. Each U.S. Embassy is the platform for the implementation of U.S. foreign policy interests in each country, and serves as the base of operations for numerous U.S. agencies, including the Defense Department, the Justice Department, the Department of Homeland Security, the Treasury Department and virtually every other agency of the U.S. Government. In this connection, the Committee fully funds the Embassy Security, Construction, and Maintenance Account, which ensures that U.S. Government employees have safe and secure facilities from which to work. The Committee's long-term efforts have been valuable as we note that terrorist bombers directed their efforts away from the U.S. consulate in Istanbul because of its security measures and the security standards resulted in a relatively small loss of life suffered in car bombings directed against the U.S. consulate in Karachi, Pakistan.

In most of the accounts, the bill matches the President's request for funding. The bill recognizes that requirements of the State Department to meet demanding new missions in Iraq and Afghanistan have required more resources and creative approaches to staffing. A greater emphasis over the past several years on public diplomacy has resulted in increased funding for State Department activities in this area. The Broadcasting Board of Governors has also seen increases through supplemental funding and regular budget requests for additional programming and the creation of the new Middle East Broadcasting Networks. The U.S. must continue to have a multi-faceted public outreach effort and one which is systematically assessed. The bill provides these programs with the funds and direction to do just that.

The bill also strengthens the U.S. Government's development and execution of nonproliferation and export control policy, particularly with respect to countering the proliferation of dangerous missile and nuclear technology, and to assure this area is properly integrated with U.S. national security interests in the global war on terrorism. The bill also takes a balanced approach to improve the responsiveness of the export control system to legitimate needs of the U.S. business community while also enhancing the provision of security assistance to other countries.

Many foreign policy concerns are addressed in this bill. Nuclear proliferation is a top concern and the bill suggests that the U.S. national interests are greatly served in this regard by a stronger International Atomic Energy Agency and by stronger responses to black markets in nuclear materials.

In many other areas of foreign policy concerns the Committee has expressed its concern for continued engagement in areas of development, human rights, democracy, poverty reduction, and improved delivery of foreign assistance including efforts to institutionalize the promotion of democracy around the world.

HEARINGS

The Committee and its Subcommittees held numerous hearings on issues related to the bill. The Full Committee held two hearings. The first, `International Relations Budget for Fiscal Year 2006' was held on February 17, 2005, with Secretary of State Condoleezza Rice. The other Full Committee hearing was held on May 5, 2005, entitled, `Promoting Democracy through Diplomacy.' Testimony was received from the following: Rep. Frank R. Wolf; Hon. Paula Dobriansky, Under Secretary for Global Affairs, U.S. Department of State; Hon. Mark Palmer, Capital Development Company; Ms. Jennifer Windsor, Freedom House; Mr. Saad al-Din Ibrahim, Woodrow Wilson International Center for Scholars; and Mr. Edil Baisalov, Coalition for Democracy and Civil Society, Kyrgyzstan.

The Subcommittee on Africa, Global Human Rights and International Operations held eight hearings on issues related to the bill, and the Subcommittee on International Terrorism and Nonproliferation held one hearing. These hearings were:

COMMITTEE CONSIDERATION

On May 26, 2005, the Subcommittee on Africa, Global Human Rights and International Operations marked up the bill, H.R. 2601, The Foreign Relations Authorization Act, Fiscal Years 2006 and 2007, pursuant to notice, in open session. The following action took place during the Subcommittee markup:

H.R. 2601, as amended, was reported favorably for consideration by the Full Committee.

On June 8 and June 9, 2005, the Full Committee marked up the bill, H.R. 2601, pursuant to notice, in open session. The Committee agreed to a motion to favorably report the bill, as amended, by a record vote of 44 ayes to 0 nays. The following action took place during the markup:

Wednesday, June 8, 2005:

Amendments in the En Bloc:

Thursday, June 9, 2005--continuation of markup of H.R. 2601

Motion to report H.R. 2601 favorably, as amended--passed 44-0.

VOTES OF THE COMMITTEE

Clause (3)(b) of rule XIII of the Rules of the House of Representatives requires that the results of each record vote on an amendment or motion to report, together with the names of those voting for or against, be printed in the Committee report. The following record votes occurred during consideration of H.R. 2601:

Vote #1--Ackerman amendment--Pakistan Proliferation Accountability Act--defeated 14-28

Voting YES: Rohrabacher, Ackerman, Payne, Sherman, Wexler, Engel, Delahunt, Meeks, Lee, Crowley, Blumenauer, Schiff, Watson and McCollum

Voting NO: Smith (NJ), Burton, Gallegly, Ros-Lehtinen, King, Chabot, Paul, Issa, Flake, Davis, Green, Weller, Pence, McCotter, Harris, Boozman, Barrett, Mack, Fortenberry, McCaul, Poe, Lantos, Faleomavaega, Berkley, Napolitano, Smith (WA), Chandler and Cardoza

Vote #2--Lee amendment--Sense of Congress to withdraw troops from Iraq--defeated 12-33

Voting YES: Leach, Paul, Payne, Sherman, Wexler, Delahunt, Meeks, Lee, Blumenauer, Watson, Smith (WA) and McCollum

Voting NO: Smith (NJ), Burton, Gallegly, Ros-Lehtinen, Rohrabacher, Royce, King, Chabot, Issa, Flake, Davis, Green, Weller, Pence, McCotter, Harris, Wilson, Boozman, Barrett, Mack, Fortenberry, McCaul, Poe, Lantos, Ackerman, Faleomavaega, Engel, Crowley, Berkley, Napolitano, Schiff, Chandler and Cardoza

Vote #3--Lee amendment--Policy Regarding United States Military Policy in Iraq--defeated 15-29

Voting YES: Leach, Rohrabacher, Paul, Payne, Sherman, Wexler, Delahunt, Meeks, Lee, Blumenauer, Napolitano, Watson, Smith (WA), McCollum and Cardoza

Voting NO: Smith (NJ), Burton, Gallegly, Ros-Lehtinen, Royce, King, Chabot, Issa, Flake, Davis, Green, Weller, Pence, McCotter, Harris, Wilson, Boozman, Barrett, Mack, Fortenberry, McCaul, Poe, Lantos, Ackerman, Engel, Crowley, Berkley, Schiff and Chandler

Vote #4--Issa amendment--Egypt ESF--defeated 14-29

Voting YES: Rohrabacher, King, Chabot, Issa, Davis, McCotter, Wilson, Boozman, Mack, Poe, Wexler, Lee, Watson and McCollum

Voting NO: Leach, Smith (NJ), Burton, Gallegly, Ros-Lehtinen, Royce, Paul, Flake, Green, Weller, Pence, Harris, Barrett, Fortenberry, McCaul, Lantos, Ackerman, Payne, Sherman, Engel, Delahunt, Crowley, Blumenauer, Berkley, Napolitano, Schiff, Smith (WA), Chandler and Cardoza

Vote #5--Leach amendment--U.S. rejoin the IPU--defeated 18-21

Voting YES: Weller, Lantos, Ackerman, Faleomavaega, Payne, Sherman, Wexler, Delahunt, Lee, Crowley, Blumenauer, Berkley, Napolitano, Schiff, Watson, Smith (WA), Chandler and Cardoza

Voting NO: Smith (NJ), Gallegly, Ros-Lehtinen, Rohrabacher, Royce, King, Chabot, Paul, Issa, Flake, Davis, Green, Pence, McCotter, Harris, Boozman, Barrett, Mack, Fortenberry, McCaul and Poe

Vote #6--Crowley amendment--Sense of Congress Regarding Stability and Security in Iraq--passed 32-9

Voting YES: Hyde, Smith (NJ), Royce, Chabot, Tancredo, Flake, Green, Harris, Wilson, Barrett, Mack, Fortenberry, McCaul, Lantos, Berman, Ackerman, Faleomavaega, Payne, Sherman, Engel, Delahunt, Meeks, Crowley, Blumenauer, Berkley, Napolitano, Schiff, Watson, Smith (WA), McCollum, Chandler and Cardoza

Voting NO: Burton, Gallegly, Ros-Lehtinen, King, Davis, Weller, McCotter, Boozman, and Lee

Vote #7--Lee amendment--Assistance to Promote Economic and Social Development in Colombia--defeated 20-22

Voting YES: Lantos, Berman, Ackerman, Faleomavaega, Payne, Sherman, Engel, Delahunt, Meeks, Lee, Crowley, Blumenauer, Berkley, Napolitano, Schiff, Watson, Smith (WA), McCollum, Chandler and Cardoza

Voting NO: Hyde, Smith (NJ), Burton, Gallegly, Ros-Lehtinen, Rohrabacher, Royce, King, Chabot, Tancredo, Flake, Davis, Green, Weller, McCotter, Harris, Wilson, Boozman, Barrett, Mack, Fortenberry and McCaul

Vote #8--Motion to report H.R. 2601 favorably, as amended--passed 44-0

Voting YES: Hyde, Smith (NJ), Burton, Gallegly, Ros-Lehtinen, Rohrabacher, Royce, King, Chabot, Tancredo, Issa, Flake, Davis, Green, Weller, McCotter, Harris, Wilson, Boozman, Barrett, Mack, Fortenberry, McCaul, Lantos, Berman, Ackerman, Faleomavaega, Payne, Sherman, Wexler, Engel, Delahunt, Meeks, Lee, Crowley, Blumenauer, Berkley, Napolitano, Schiff, Watson, Smith (WA), McCollum, Chandler and Cardoza

COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII of the Rules of the House of Representatives, the Committee reports that the findings and recommendations of the Committee, based on oversight activities under clause 2(b)(1) of rule X of the Rules of the House of Representatives, are incorporated in the descriptive portions of this report.

NEW BUDGET AUTHORITY AND TAX EXPENDITURES

Clause 3(c)(2) of House Rule XIII is inapplicable because this legislation does not provide new budgetary authority or increased tax expenditures.

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the House of Representatives, the Committee sets forth, with respect to the bill, H.R. 2601, the following estimate and comparison prepared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974:

U.S. Congress,

Congressional Budget Office,

Washington, DC, July 1, 2005.

Hon. HENRY J. HYDE, CHAIRMAN,
Committee on International Relations,
House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2601, the Foreign Relations Authorization Act, Fiscal Years 2006 and 2007.

If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contact is Sunita D'Monte, who can be reached at 226-2840.

Sincerely,

Douglas Holtz-Eakin.

H.R. 2601--Foreign Relations Authorization Act, Fiscal Years 2006 and 2007.

SUMMARY

H.R. 2601 would specifically authorize appropriations totaling $10.8 billion in 2006 and $10 billion in 2007 for the Department of State, international broadcasting activities, international assistance programs, and related agencies. The bill also contains several indefinite authorizations and provisions that would raise the cost of discretionary programs for contributions to international peacekeeping, public diplomacy, personnel, and other programs over the 2006-2010 period. CBO estimates that those indefinite authorizations and provisions would require appropriations of almost $1.9 billion over the 2006-2010 period. In addition, the legislation would authorize the spending of additional funds totaling almost $0.5 billion for several international assistance programs. In total, CBO estimates that implementing the bill would cost about $22.3 billion over the 2006-2010 period, assuming the appropriation of the necessary amounts.

The bill contains provisions that would both increase and decrease direct spending, primarily from the reappropriation of funds that would be made available in the State Department's Buying Power Maintenance Account and from the sale of naval vessels. We estimate that enacting H.R. 2601 would increase direct spending by $7 million in 2006 and $56 million over the 2006-2015 period. Those totals include estimated receipts for asset sales of $32 million over the 2006-2007 period. (Asset sale receipts are a credit against direct spending.) Finally, CBO estimates the bill would increase governmental receipts (i.e., revenues) by an insignificant amount each year by creating new criminal penalties related to protective functions of State Department special agents.

H.R. 2601 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) and would not affect the budgets of state, local, or tribal governments.

ESTIMATED COST TO THE FEDERAL GOVERNMENT

The estimated budgetary impact of H.R. 2601 is shown in Table 1. The costs of this legislation fall within budget functions 050 (national defense), 150 (international affairs), 300 (natural resources and environment), 750 (administration of justice), and 800 (general government).

TABLE 1. BUDGETARY IMPACT OF H.R. 2601, THE FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS 2006 AND 2007
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                         By Fiscal Year, in Millions of Dollars                                 
                                                                                                                                                                           2005   2006   2007  2008  2009  2010 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION                                                                                                                                                                               
Spending Under Current Law for State Department,International Assistance Programs, and Related Agencies Estimated Authorization Level 1                                  19,418      0      0     0     0     0 
 Estimated Outlays                                                                                                                                                       20,011  8,762  3,936 2,183   988   431 
Proposed Changes                                                                                                                                                                                                
 Estimated Authorization Level                                                                                                                                                0 11,209 11,507   145   146   151 
 Estimated Outlays                                                                                                                                                            0  7,080  9,606 3,224 1,376   972 
Spending Under H.R. 2601 for State Department,International Assistance Programs, and Related Agencies                                                                                                           
 Estimated Authorization Level 1                                                                                                                                         19,418 11,209 11,507   145   146   151 
 Estimated Outlays                                                                                                                                                       20,011 15,842 13,542 5,407 2,364 1,403 
CHANGES IN DIRECT SPENDING (EXCLUDING ASSET SALES) 2                                                                                                                                                            
Estimated Budget Authority                                                                                                                                                    0     81     21    21    21    21 
Estimated Outlays                                                                                                                                                             0     33     14    11    11    11 
ASSET SALES                                                                                                                                                                                                     
Estimated Budget Authority                                                                                                                                                    0    -26     -6     0     0     0 
Estimated Outlays                                                                                                                                                             0    -26     -6     0     0     0 
CHANGES IN REVENUES                                                                                                                                                                                             
Criminal Penalties for Interference with StateDepartment Special Agents                                                                                                                                         
 Estimated Revenues                                                                                                                                                           0      *      *     *     *     * 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

BASIS OF ESTIMATE

Most of the bill's budgetary impact would stem from authorizations for the Department of State, international broadcasting activities, international assistance, and related agencies. The bill also includes `earmarks' for programs and activities for which funds have not otherwise been authorized or appropriated. In this estimate, such earmarks are treated as new authorizations and their budgetary impact is included with spending subject to appropriation. The bill also contains provisions that would both increase and decrease direct spending, primarily from the reappropriation of funds that would be made available in the State Department's Buying Power Maintenance Account and from the sale of naval vessels. Finally, a provision that would create new criminal penalties would affect governmental receipts.

For this estimate, CBO assumes that this legislation will be enacted near the start of fiscal year 2006, that the specified and estimated authorization amounts will be appropriated near the start of each fiscal year, and that outlays will follow historical spending patterns for existing and similar programs.

Spending Subject to Appropriation

The bill contains provisions that would affect costs for personnel, contributions to international organizations, foreign assistance, and other programs. H.R. 2601 would authorize appropriations at the specified level of $10.8 billion in 2006 and $10 billion in 2007. The bill also would authorize such sums as may be necessary over the 2006-2010 period for several other programs, and would also earmark spending of funds not specifically authorized elsewhere in the bill for additional spending in 2006 and 2007. CBO estimates that combined those provisions would authorize additional appropriations of about $430 million in 2006 and $2.4 billion over the 2006-2010 period. In total, CBO estimates that the bill would authorize the appropriation of about $11.2 billion in 2006 and $23.2 billion over the 2007-2010 period.

Specified Authorizations. The authorizations of appropriations in this bill would cover the operating expenses and programs of the Department of State, the Broadcasting Board of Governors (BBG), and related agencies, as well as a few international assistance programs. As shown in Table 2, H.R. 2601 would authorize the appropriation, over the next two years, of $16.2 billion for the State Department for programs related to the conduct of foreign affairs, international organizations, and other associated programs, $2.4 billion for foreign information and exchange activities, and $2.1 billion for international assistance and other programs.

TABLE 2. SPENDING SUBJECT TO APPROPRIATION IN H.R. 2601, THE FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS 2006 AND 2007
--------------------------------------------------------------------------------------------------------------------------------------
                                                                       By Fiscal Year, in Millions of Dollars                         
                                                                                                         2006   2007  2008  2009 2010 
--------------------------------------------------------------------------------------------------------------------------------------
SPECIFIED AUTHORIZATIONS                                                                                                              
Conduct of Foreign Affairs                                                                                                            
 Authorization Level                                                                                    8,529  7,690     0     0    0 
 Estimated Outlays                                                                                      5,332  6,760 1,620 1,021  723 
Foreign Information and Exchange Activities                                                                                           
 Authorization Level                                                                                    1,203  1,223     2     2    2 
 Estimated Outlays                                                                                        827  1,144   359    69   25 
International Assistance and Other Programs                                                                                           
 Authorization Level                                                                                    1,046  1,071     3     3    3 
 Estimated Outlays                                                                                        726  1,027   319    32   20 
 Subtotal, Specified Authorizations                                                                                                   
  Authorization Level                                                                                  10,778  9,984     5     5    5 
  Estimated Outlays                                                                                     6,885  8,931 2,298 1,122  768 
ESTIMATED AUTHORIZATIONS                                                                                                              
Earmarks of Funds Not Specifically Authorized                                                                                         
 Estimated Authorization Level                                                                            226    225     0     0    0 
 Estimated Outlays                                                                                         51    127   116    67   44 
Assessed Contributions to International Organizations and Peacekeeping                                                                
 Estimated Authorization Level                                                                             92  1,060     0     0    0 
 Estimated Outlays                                                                                         90    420   631     0    0 
Personnel Benefits                                                                                                                    
 Estimated Authorization Level                                                                             45     82   122   125  129 
 Estimated Outlays                                                                                         36     72   111   120  125 
ADVANCE Democracy Act of 2005                                                                                                         
 Estimated Authorization Level                                                                             53     63     3     1    1 
 Estimated Outlays                                                                                         13     34    32    17   12 
Office Building for American Institute in Taiwan                                                                                      
 Estimated Authorization Level                                                                              0     78     0     0    0 
 Estimated Outlays                                                                                          0     12    23    35    8 
International Assistance                                                                                                              
 Estimated Authorization Level                                                                             14     14    14    14   15 
 Estimated Outlays                                                                                          4      9    12    14   14 
Miscellaneous Provisions                                                                                                              
 Estimated Authorization Level                                                                              1      1     1     1    1 
 Estimated Outlays                                                                                          1      1     1     1    1 
 Subtotal, Estimated Authorizations                                                                                                   
  Estimated Authorization Level                                                                           431  1,523   140   141  146 
  Estimated Outlays                                                                                       195    675   926   254  204 
  Total Authorizations                                                                                                                
   Estimated Authorization Level                                                                       11,209 11,507   145   146  151 
   Estimated Outlays                                                                                    7,080  9,606 3,224 1,376  972 
--------------------------------------------------------------------------------------------------------------------------------------

Earmarks of Funds Not Specifically Authorized. The bill contains several earmarks of specified and unspecified amounts for programs that are not otherwise authorized in the bill. For the purposes of this estimate, earmarks for programs not otherwise authorized are treated as an authorization for the specified or estimated amounts. Those programs with earmarks not otherwise authorized are the Economic Support Fund (ESF), the Foreign Military Financing Program, International Organizations and Programs, and Assistance for the Independent States of the Former Soviet Union. The Congress provided an appropriation for each of those programs for 2005. In total, CBO estimates that these earmarks would total $226 million in 2006 and $225 million in 2007. (Those amounts do not include the earmark for the Human Rights and Democracy Fund discussed below under the heading `ADVANCE Democracy Act.')

Economic Support Fund. CBO estimates that under the bill, earmarks for the ESF would total $203 million in 2006 and $205 million in 2007. These amounts include specific earmarks for both 2006 and 2007 of $50 million for Afghanistan for programs related to elections, $20 million for a contribution to the International Fund for Ireland, and $12 million for Zimbabwe for assistance to support democracy.

In addition, section 923 would earmark such sums as may be necessary for the Middle East Partnership Initiative, an ongoing program within the ESF, for 2006 and 2007. Based on information from the State Department, CBO estimates that this authorization level would total $120 million in 2006 and $122 million in 2007. Section 922 would also earmark such sums as may be necessary for a new program, the Inter-Arab Democratic Charter, for 2006 and 2007. Based on the size of similar programs within the State Department, CBO estimates that this program would effectively authorize about $1 million in both 2006 and 2007.

Assistance for the Independent States of the Former Soviet Union. CBO estimates that earmarks for this account would total $15 million in both 2006 and 2007. Section 908 would earmark $12 million in both 2006 and 2007 from this account for assistance to promote democracy in the Republic of Belarus. In addition, section 909 would earmark such sums as may be necessary from this account for the Republic of Belarus and Ukraine to improve maternal and prenatal care to help prevent birth defects and pregnancy complications related to the cleanup of the Chernobyl disaster. Based on the cost of similar programs, CBO estimates that this earmark would total $3 million in both 2006 and 2007.

Sustainable Development Assistance. Section 901 would earmark $5 million in both 2006 and 2007 for the creation of obstetric fistula centers for surgery to repair the fistulas and for activities to reduce the incidence of obstetric fistulas.

International Organizations and Programs. Section 1009 would earmark $1.5 million from this account in 2006 for a voluntary contribution to the United Nations Children's Fund to conduct a study on the worldwide incidence and prevalence of autism.

Foreign Military Financing. Section 756 would earmark $1 million in 2006 from the Foreign Military Financing Program for the provision of not more than four excess coastal patrol boats to Mozambique.

Assessed Contributions to International Organizations and Peacekeeping. Three provisions in the bill contain indefinite authorizations affecting the United States' assessed contributions to international organizations and peacekeeping. In total, CBO estimates the following provisions would cost $90 million in 2006 and $1.1 billion over the 2006-2010 period, assuming appropriation of the necessary amounts.

Assessed Contributions to International Peacekeeping. Section 102 would authorize the appropriation of such sums as may be necessary in 2007 for contributions to international peacekeeping. CBO estimates this provision would require additional appropriations of $1.05 billion in 2007 (the specific authorization for 2006 of $1.04 billion, adjusted for inflation).

Assessed Contributions to the International Atomic Energy Agency (IAEA). Section 403 would authorize the appropriation of such sums as may be necessary to permit the State Department to pay the United States assessed contributions to the IAEA in a timely fashion. Under current law, these contributions are due near the start of the calendar year, but are usually appropriated and remitted to the IAEA after the start of the fiscal year--a delay of at least nine months. Based on information from the department, CBO estimates the bill would authorize the appropriation of $84 million in 2006, thereby allowing the department to pay both calendar year 2005 and calendar year 2006 assessments in fiscal year 2006.

Currency Fluctuations. Section 102 would authorize the appropriation of such sums as may be necessary in 2006 and 2007 to compensate for adverse fluctuations in exchange rates that might affect contributions to international organizations. Any funds appropriated for this purpose would be obligated and expended subject to certification by the Office of Management and Budget. CBO estimates that the dollar will decline roughly 2 percent in 2006 and that the Department of State would require an additional $8 million that year to fully pay assessed contributions to international organizations. Currency fluctuations over the longer term are extremely difficult to project, and they could result in spending either more or less than the amounts specifically authorized in the bill for contributions to international organizations and programs. Therefore, this estimate assumes no additional spending for currency fluctuations in 2007.

Personnel Benefits. The bill contains several provisions that would provide benefits to State Department personnel and would increase costs by $36 million in 2006 and about $465 million over the 2006-2010 period, assuming the appropriation of the necessary funds.

Locality-based Pay Adjustments. Section 305 would amend current law to allow the department to increase pay for Foreign Service officers posted overseas to compensate for the loss of locality pay. Based on information from the department, CBO estimates such locality-based pay adjustments would cost about $28 million in 2006, $63 million in 2007, and an average of $110 million a year over the 2008-2010 period, assuming the appropriation of the necessary funds.

Hardship and Danger-Pay Allowances. Section 303 would increase the cap on hardship allowances and danger-pay allowances from 25 percent to 35 percent of basic pay for employees serving overseas. Based on information from the Department of State, CBO estimates implementing this section would cost about $6 million a year, assuming the appropriation of the necessary funds.

Educational Expenses of Dependent Children. Section 301 would authorize payments for certain educational expenses of dependent children of Foreign Service employees posted overseas. Section 506 would allow the BBG to pay for the educational expenses of certain dependents of employees in the Commonwealth of the Northern Mariana Islands. Based on information from the Department of State and the BBG, CBO estimates implementing these provisions would cost about $3 million annually, assuming the appropriation of the necessary funds.

Death Gratuity. Section 310 would amend current law to allow the State Department to pay a minimum gratuity of $100,000 to the surviving dependents of any Foreign Service employee who dies as a result of injuries sustained in the performance of duty abroad. According to information from the department, no gratuities had been paid for several years before 2005, and only 2 gratuities have been paid so far in 2005. Based on this information and assuming that these trends continue, CBO estimates implementing this provision would cost about less than $500,000 a year, assuming the availability of appropriated funds.

ADVANCE Democracy Act. Title VI would authorize the Secretary of State to expand or create new programs to promote democracy and human rights overseas. Specifically, it would earmark $50 million in 2006 and $60 million in 2007 for the Human Rights and Democracy Fund, an existing program within the Economic Support Fund. Because H.R. 2601 would not specifically authorize appropriations for the ESF, this estimate treats this earmark as a new authorization of appropriations.

In addition, the title contains several other provisions, listed below, that contain both specific and indefinite authorizations. Based on information from the State Department, CBO estimates that these provisions would authorize the appropriation of an additional $3 million a year in 2006 and 2007. Thus, CBO estimates that the total authorizations of appropriations in the ADVANCE Democracy Act would be $53 million in 2006, $63 million in 2007, and about $120 million over the 2006-2010 period.

Among the many requirements of Title VI, it would:

Office Building for American Institute in Taiwan (AIT). Section 215 would amend current law to authorize such sums as may be necessary for the construction of a new office building for the AIT in Taipei, Taiwan. Public Law 106-212 authorized the appropriation of $75 million for the facility without fiscal year limitation. According to the Department of State, the projected cost of the building is now $153 million, and roughly $20 million has been spent on site acquisition and design. CBO estimates a net increase in authorization of $78 million and assumes that construction would begin in 2007 and end in 2010.

International Assistance. The bill contains provisions that would add new purposes for which international assistance programs could be used and thus would provide an implicit authorization for these new purposes. In total, CBO estimates that these authorizations would total $14 million in 2006 and about $70 million over the 2006-2010 period.

International Disaster and Famine Assistance. Section 907 would allow assistance for disaster preparedness to include activities that would mitigate the effects of natural disasters. Such activities would include assisting communities to build in safer locations, construct sturdier dwellings, and enforce sound building codes and practices. Based on similar efforts for famine relief, CBO estimates that this provision would authorize about $10 million a year for these activities. After adjusting for annual inflation and the normal spending patterns for this account, CBO estimates that implementing this provision would cost $3 million in 2006 and $39 million over the 2006-2010 period, assuming appropriation of the estimated amounts.

Economic Support Fund. Section 931 would allow grants to pro-democracy groups or human rights organizations in countries that the State Department has determined support terrorism. Under current law, groups operating in those countries are not allowed to receive such funds. Based on the size of similar programs for promoting democracy operated out of the ESF, CBO estimates that this provision would authorize about $4 million a year for these grants. After adjusting for annual inflation and the normal spending patterns for this account, CBO estimates that implementing this provision would cost about $1 million in 2006 and $14 million over the 2006-2010 period, assuming appropriation of the estimated amounts.

Sustainable Development Assistance. Section 910 would authorize the President to provide assistance to foreign countries to address non-infectious diseases, such as heart disease. Based on information from the State Department, CBO does not expect the President to use this authority.

Miscellaneous Provisions. H.R. 2601 also contains several provisions that CBO estimates would have an insignificant individual impact on spending subject to appropriation, but in total would increase spending by $1 million a year, assuming the availability of appropriated funds.

Direct Spending

The bill contains provisions that would both increase and decrease direct spending, primarily from the reappropriation of funds that would be made available in the State Department's Buying Power Maintenance Account and from the sale of naval vessels. We estimate that enacting H.R. 2601 would increase direct spending by $7 million in 2006 and $56 million over the 2006-2015 period (see Table 3). Those totals include estimated receipts for asset sales of $32 million over the 2006-2007 period. (Asset sale receipts are a credit against direct spending.)

Buying Power Maintenance Account. The State Department may maintain an approved level of program activity in the face of currency fluctuations through a Buying Power Maintenance Account. Under current law, the Secretary of State may transfer any current funds in excess of needs that result from an increase in the purchasing power of the dollar from accounts under `Administration of Foreign Affairs' to the Buying Power Maintenance Account. The funds in the account are available for transfer back to those accounts only to offset future adverse fluctuations in exchange rates or overseas wage or price levels. The Secretary may also transfer unavailable balances into the Buying Power Maintenance Account, but only to the extent and in such amounts as specifically provided in advance in appropriation acts. No appropriation act has ever provided that authority. Section 204 of the bill would strike the requirement for appropriation action, thus allowing the Secretary to transfer lapsed funds into the Buying Power Maintenance Account and making them available to offset future adverse currency fluctuations.

TABLE 3. ESTIMATED DIRECT SPENDING IN THE FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS 2006 AND 2007
------------------------------------------------------------------------------------------------------------------------------------------
                                                      By fiscal year, in Millions of Dollars                                              
                                                                                        2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 
------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING (EXCLUDING ASSET SALES) 1                                                                                      
Buying Power Maintenance Account                                                          80   20   20   20   20    0    0    0    0    0 
 Estimated Budget Authority                                                               32   13   10   10   10    2    *    *    0    0 
 Estimated Outlays                                                                                                                        
Medical Reimbursements                                                                                                                    
 Estimated Budget Authority                                                                1    1    1    1    1    1    1    1    1    1 
 Estimated Outlays                                                                         1    1    1    1    1    1    1    1    1    1 
 Subtotal                                                                                                                                 
  Estimated Budget Authority                                                              81   21   21   21   21    1    1    1    1    1 
  Estimated Outlays                                                                       33   14   11   11   11    3    1    1    1    1 
ASSET SALES                                                                                                                               
Estimated Budget Authority                                                               -26   -6    0    0    0    0    0    0    0    0 
Estimated Outlays                                                                        -26   -6    0    0    0    0    0    0    0    0 
TOTAL CHANGES IN DIRECT SPENDING                                                                                                          
Estimated Budget Authority                                                                55   15   21   21   21    1    1    1    1    1 
Estimated Outlays                                                                          7    8   11   11   11    3    1    1    1    1 
------------------------------------------------------------------------------------------------------------------------------------------

According to the Treasury Combined Statement on Receipts, Outlays, and Balances, 2004, the Department of State had $80 million in unobligated, unavailable balances in various accounts in the Administration of Foreign Affairs Bureau at the start of 2005. Under the bill, such balances could be transferred into the Buying Power Maintenance account upon enactment and made available to meet adverse exchange-rate fluctuations. In addition, CBO estimates approximately 0.5 percent of obligated balances, or about $20 million, would be deobligated each year and reappropriated under the bill. Because we estimate the dollar will decline in value over the next year, we estimate that about half of the funds would be transferred out of the Buying Power Maintenance Account and spent. In total, we estimate direct spending of about $80 million over the 2006-2015 period.

Medical Reimbursements. Section 203 would provide the State Department greater flexibility in retaining reimbursements for funding medical care provided to employees and eligible family members overseas. Based on information from the department, CBO estimates that it would collect and spend between $500,000 and $1 million a year.

Surcharges on Passport and Visa Fees. Section 205 would authorize the Secretary of State to administratively increase the dollar amount of certain surcharges on passport and immigrant visa fees. Under current law, the department charges a $12 surcharge on passport fees and a $45 surcharge on immigrant visa fees, and retains the proceeds for spending related to border security. The department has no current plans to raise these surcharges, and CBO has no basis for estimating when or in what amount changes might be made. (Neither the collection nor the spending of these surcharges is subject to appropriation, thus any increase in collections and spending would constitute direct spending.)

International Litigation Fund. Section 202 would allow the State Department's International Litigation Fund to retain awards of costs and attorneys' fees that result from a decision by an international tribunal. Based on information from the department, CBO estimates that the Department of State would collect and spend less than $500,000 a year under this provision.

Asset Sales

Section 751 would authorize the transfer of eight naval vessels to foreign countries: five by grant and three by sale. Based on information from the Navy regarding the value of these ships and recent experience with actual sales and grants, CBO estimates the sales would increase offsetting receipts by $32 million over the 2006-2007 period.

Revenues

Section 201 would raise governmental receipts (revenues) by establishing new criminal penalties that would be assessed against persons interfering with the protective functions of State Department special agents. CBO estimates that the increase in revenues would not be significant in any year. Collections of criminal fines are deposited in the Crime Victims Fund and are later spent. CBO estimates that the criminal penalties that would be established under the bill would increase direct spending from the Crime Victims Fund by less than $500,000 per year.

INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

H.R. 2601 contains no intergovernmental or private-sector mandates as defined in UMRA and would not affect the budgets of state, local, or tribal governments.

PREVIOUS CBO ESTIMATE

On March 18, 2005, CBO transmitted a cost estimate for S. 600, the Foreign Affairs Authorization Act, Fiscal Years 2006 and 2007, as ordered reported by the Senate Committee on Foreign Relations on March 10, 2005. Several sections of the two bills are identical or similar and would have similar estimated costs. S. 600 would authorize the appropriation of specific amounts that match the President's request for 2006 and such sums as may be necessary for 2007. In addition, S. 600 would be the first comprehensive foreign assistance authorization act since the mid-1980s--authorizing funding for most existing assistance programs and also several new ones--while the scope of H.R. 2601 is somewhat more-limited. S. 600 would not authorize the sale or grant of naval vessels, as the House bill would do. Other differences in the cost estimates reflect differences in the two bills..AEAF

PERFORMANCE GOALS AND OBJECTIVES

The goals and objectives of this legislation are to provide authorization for the activities of the State Department and related agencies for fiscal years 2006 and 2007.

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House of Representatives, the Committee finds the authority for this legislation in article I, section 8, of the Constitution.

NEW ADVISORY COMMITTEES

H.R. 2601 does not establish or authorize any new advisory committees.

CONGRESSIONAL ACCOUNTABILITY ACT

H.R. 2601 does not apply to the legislative branch.

SECTION-BY-SECTION ANALYSIS

FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS 2006-2007

TITLE I. AUTHORIZATIONS OF APPROPRIATIONS

Section 101. Administration of Foreign Affairs.

This section authorizes appropriations under the heading `Administration of Foreign Affairs' for fiscal years 2006 and 2007. It includes funds for executive direction and policy formulation, conduct of diplomatic relations with foreign governments and international organizations, effective implementation of consular programs and its border security component, the acquisition and maintenance of office space and living quarters for the United States missions abroad, provision of security for those operations, and information resource management.

In particular, this section provides authorization of appropriations for the necessary expenses of the Department of State and the Foreign Service. These expenses include an authorization of appropriations for worldwide security upgrades, U.S. public diplomacy programs, the capital investment program, representation expenses, protection of foreign missions and officials, emergencies in the diplomatic and consular service, repatriation loans, and payment to the American Institute in Taiwan.

Changes from the Administration's request include: $20 million for the State Department's Bureau of Democracy, Human Rights and Labor; funds for Anti-Semitism and Religious Freedom programs in the OSCE ($225,000 and $205,000, respectively); Rangel Fellows program for minorities at the State Department, $1.5 million; and $3 million each of fiscal years 2006 and 2007 for minority recruitment.

Section 101(1). Diplomatic and Consular Programs.

Public Diplomacy. This subsection authorizes $333,863,000 for fiscal year 2006 for public diplomacy activities carried out under the Diplomatic and Consular Programs account. The Committee recognizes the importance of a broad public diplomacy program and therefore continues to specifically authorize funds for these activities. There has been an increasing amount of resources spent on public diplomacy and the Committee strongly urges the Secretary of State to implement a system of program evaluation and measurement so that managers can determine, based on quantifiable evidence, what is most effective in any given region. The Committee also strongly recommends closer coordination of U.S. foreign policy objectives and public diplomacy programs. In particular, the Department should improve such coordination between the regional bureaus and the Bureau of Educational and Cultural Exchange.

Diversity in the Foreign Service. The Committee continues to believe that the Department, while having made progress, needs to continue to increase its efforts to reach out to minority groups in the recruitment process. The Institute for Foreign Service and Diplomacy (IFSD) at Kean University in New Jersey is an example of an academic initiative that seeks to increase the number of Hispanics and other underrepresented population groups entering careers in Foreign Service and diplomacy. The IFSD offers its students traditional coursework in international affairs along with a generous package of related seminars and internships. The increase in funding for minority recruitment should support initiatives such as IFSD, whose goals are directly in line with the stated goals of the U.S. Department of State regarding the recruitment and employment of underrepresented groups in the Foreign Service. The IFSD and other similar programs accomplish these goals through a combination of academic classes, related educational internships and foreign language programs, seminars, lectures and overseas activities. Ultimately, these programs provide students with the tools they need to become successful Foreign Service Officers, thereby contributing to improving the Department of State's ability to accurately represent America's diversity abroad.

Section 101(E) and (F) Anti-Semitism and Religious Freedom. Congress commends the Organization for Security and Cooperation in Europe's Office of Democratic Institutions and Human Rights (ODIHR) for fulfilling its Berlin taskings, but also regrets the lack of implementation by many OSCE participating States of their commitments to track and report on anti-Semitic crimes and hate crimes. Congress also commends the developers of the OSCE/ODIHR Law Enforcement Officers Hate Crimes Training Program and urges its utilization as a valuable resource. Subparagraph (E) authorizes $225,000 for fiscal year 2006 for targeted projects through ODIHR, regarding anti-Semitism and intolerance, training activities implementing the Law Enforcement Officers Hate Crimes Training Program, and activities of the three personal representatives of the OSCE Chair-in-Office.

Congress recognizes that religious freedom is a fundamental human right often violated or ignored in countries of the Organization for Security and Cooperation in Europe. In many countries, laws and regulations impacting religious liberty often serve to hinder, rather than facilitate, the ability of individuals and communities of believers to freely profess and practice their religion or belief. Subparagraph (F) authorizes $125,000 for each of fiscal years 2006 and 2007 for activities aimed at promoting freedom of religion or belief through targeted projects of the Office of Democratic Institutions and Human Rights, including activities of the OSCE/ODIHR Panel of Experts on Freedom of Religion or Belief providing technical reviews of draft or current legislation affecting religion or belief.

Limitations on religious freedom are particularly acute in the Caucasus and Central Asia. Subparagraph F also authorizes $80,000 for fiscal year 2006 for OSCE Missions in Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan for activities to address issues pertaining to religious freedom or belief or to fund new staff dedicated to monitor related developments.

Rightsizing. The Committee urges the State Department to follow rightsizing plans for all overseas posts. The Department needs to be sure that authorized positions at overseas posts are actually needed to carry out the priorities as identified in the Mission Program Plan. There should be a cyclical review of State Department staffing to be sure that positions and skill sets match the specific needs of any given U.S. Embassy or consulate.

Section 101(2). Capital Investment Fund.

Subsection 101(2) authorizes $131,000,000 for each of fiscal years 2006 and 2007 for the capital investment fund. This account supports the State Department's information technology and communications systems initiatives.

Section 101(3). Embassy Security, Construction and Maintenance.

Subsection 101(3) authorizes $1,526,000,000 for fiscal year 2006 and $1,550,000,000 for fiscal year 2007. This account is used to manage and maintain the Department's real estate assets, and funds Embassy and other construction projects overseas.

Capital Cost Sharing. The Committee is encouraged by the progress made in implementing the Capital Cost Sharing program and strongly believes this program must include all agencies with personnel stationed in U.S. embassies, although the Committee recognizes that the Marine Security Guard program will operate outside the program.

Section 101(4). Educational and Cultural Exchange Programs.

Subsection 101(4) authorizes $428,900,000 for fiscal year 2006 and $438,500,000 for fiscal year 2007 for Educational and Cultural Exchange programs.

South Korea. To help address declining opinions of the United States among young people in our longtime ally, South Korea, subsection (4)(B) authorizes $750,000 per year for the creation of summer academic study programs in the United States for Korean college and university students. The programs will focus on political systems, government institutions, society, and democratic culture in the United States. It is estimated that this modest funding will allow the establishment of three summer institutes, each of which can handle between 25 and 30 students, thus reaching between 75 and 90 Korean student leaders per year.

HIV/AIDS in India. Subparagraph (H) authorizes $1,000,000 in each of the fiscal years 2006 and 2007 for exchanges related to HIV/AIDS research and mitigation strategies. The Committee understands that India reports as many as 1,000 new AIDS cases per month, with some estimating that almost two-thirds of all HIV-positive Asians live in India. Many experts are particularly concerned that infections are moving from high-risk groups to the general population. The Committee believes that a significant program using these funds should be directed toward India and strongly encourages the establishment of a summer exchange program for postgraduate students from India to attend conferences and engage in research activities at leading universities in the U.S.

Urban Planners. The Committee commends the Department for exchange programs encompassing city and regional planners for the purpose of sharing best practices and innovative approaches to comprehensive land-use and transportation planning and urges that these programs be continued.

As the world undergoes a process of massive urbanization, metropolitan areas throughout the developing world are experiencing a greater strain on natural resources, health and education infrastructures, and economic capacity. These areas will present planning challenges for investment in transportation and other key infrastructure systems, and coordinating these investments with sound land use and economic development planning. The partnership between Portland State University and China's Ministry of Land and Resources can serve as a model for a city and regional planner exchange program.

Center for Hemispheric Policy. The Center for Hemisphere Policy at the University of Miami is a unique, existing program administered through the Department of State's Educational and Cultural Exchange Programs that serves governments, non-governmental organizations, and the private sector by providing world-class research and strategic analysis related to the U.S., the Caribbean and Latin America. The Committee therefore recommends current funding levels be provided for hemispheric policy research and strategic analysis conducted at the Center for Hemisphere Policy at the University of Miami.

Section 101(5). Representation Allowances.

Subsection 101(5) authorizes $8,281,000 for each of fiscal years 2006 and 2007 for representation allowances.

Section 101(6). Protection of Foreign Missions and Officials.

Subsection 101(6) authorizes $9,390,000 for each of fiscal years 2006 and 2007 for the protection of foreign missions and officials account.

Section 101(7). Emergencies in the Diplomatic and Consular Service.

Subsection 101(7) authorizes $12,143,000 for each of fiscal years 2006 and 2007 for diplomatic and consular service activities.

Section 101(8). Repatriation Loans.

Subsection 101(8) authorizes $1,319,000 for each of fiscal years 2006 and 2007 for repatriation loans.

Section 101(9). Payment to the American Institute in Taiwan.

Subsection 101(9) authorizes $19,751,000 for fiscal year 2006 and $20,146,020 for fiscal year 2007 for the American Institute in Taiwan.

Section 101(10). Office of the Inspector General.

Subsection 101(10) authorizes $29,983,000 for each of fiscal years 2006 and 2007 for the Office of Inspector General.

Section 102. Contributions to International Organizations.

This section authorizes funds for U.S. participation in international organizations. Subsection 102(a) authorizes $1,296,500,000 for fiscal year 2006 and $1,322,430,000 for fiscal year 2007 to fund the U.S.-assessed contributions for its share of the expenses of the United Nations and other international organizations of which the United States is a member.

Subsection 102(b) authorizes $1,035,500,000 for fiscal year 2006 and such sums as may be necessary for fiscal year 2007 for the U.S.-assessed contributions for International peacekeeping missions.

This authorization reflects the Committee's continued commitment to United Nations peacekeeping operations and the search for peace and stability around the world. However, the Committee is deeply troubled by reports of sexual exploitation, abuse, and other forms of misconduct by United Nations peacekeepers serving in the Democratic Republic of Congo, Burundi, Liberia, Haiti, Ethiopia and Eritrea, and elsewhere. Such heinous crimes have done irreparable damage to the image of United Nations peacekeeping. The Committee expects the United Nations to undertake serious and far-reaching peacekeeping reforms--including the adoption and enforcement of a uniform Code of Conduct--and fully anticipates that these reforms will be put in place without further delay. In particular, the Committee welcomes the recent report by Prince Zeid, the U.N. Permanent Representative from Jordan, requested by the Secretary-General, and urges the implementation of the reforms recommended by the report.

This section also authorizes such sums as may be necessary for each of the fiscal years 2006 and 2007 to offset adverse fluctuations in foreign currency exchange rates.

Section 103. International Commissions.

This section authorizes $67,172,000 for each of fiscal years 2006 and 2007 for the International Boundary and Water Commission-U.S. and Mexico; the International Boundary Commission-U.S. and Canada; the International Joint Commission and the International Fisheries Commissions. These funds are necessary to enable the United States to meet its obligations as a participant in these international boundary commissions.

Section 104. Migration and Refugee Assistance.

This section authorizes $955,000,000 for fiscal year 2006 and $983,650,000 for fiscal year 2007 for the Migration and Refugee Assistance program. The fiscal year 2006 level is $62 million above the President's fiscal year 2006 request of $893,000,000. The funding enables the Secretary of State to provide assistance and make contributions for migrants and refugees, including contributions to international organizations such as the United Nations High Commissioner for Refugees and the International Committee for the Red Cross, through private volunteer agencies, governments, and bilateral assistance, as authorized by law.

This section also makes available $40 million for refugees resettling in Israel, and $2.5 million for a pilot program to address the needs of long-term refugee populations.

The world's refugee crisis persists, with more than 13 million refugees, 80 percent of whom are women in children, in desperate need of durable solutions. Many have been traumatized by the loss of their homes and the murder of their loved ones, compounded by the uncertainty of their precarious existence in refugee camps. Due to funding shortfalls to meet pressing needs, refugees often lack adequate food rations, medical care, and protection. The State Department's Bureau of Population, Refugees and Migration has faced funding shortfalls over the last several fiscal years, and for fiscal year 2001, overall spending levels are significantly above the $774 million appropriated in fiscal year 2005 for refugee and migration assistance. It is expected the Department will spend the $120.4 million in fiscal year 2005 supplemental funds appropriated for refugees earlier this year, and that the needs identified for the supplemental funding will continue into fiscal year 2006. Many of these needs were not included in the Administration's fiscal year 2006 request. Areas of need include: Humanitarian assistance for vulnerable displaced populations in Chad and Sudan; returns in Burundi, the Democratic Republic of Congo, and Liberia; a higher annual budget for the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA); and addressing the needs of Burmese refugees in East Asia. With regard to refugee admissions, the Committee strongly supports the $26 million appropriated in the supplemental to reach the 70,000 admissions goal, but acknowledges higher costs are involved which reflect the additional logistical and security requirements involved in admitting refugees to the U.S.

As underscored by the strongly bipartisan support for the North Korean Human Rights Act of 2004 (P.L. 108-333), the Congress remains acutely concerned about the plight of North Korean refugees, and the Committee intends that funds from this account may be used to assist North Korean refugees, as appropriate.

Section 105. Centers and Foundations.

This section authorizes: $18,000,000 for each of fiscal years 2006 and 2007 for the Asia Foundation ($8 million above the President's fiscal year 2006 request); $80,000,000 for each of fiscal years 2006 and 2007 for the National Endowment for Democracy (at the President's request level); and $13,024,000 for each of fiscal years 2005 and 2006 for the Center for Cultural and Technical Interchange Between East and West (at the President's request level). The increased funding for the Asia Foundation is to further support its programs throughout Asia, including democracy in Afghanistan, civil society, particularly with Muslim organizations, in Indonesia, women's empowerment in Pakistan, legal reform in China and counter-trafficking in Cambodia.

Section 106. United States International Broadcasting Activities.

This section authorizes a total of $661,043,000 for international broadcasting. This is $9.1 million above the President's request. The additional $9.1 million is authorized to overcome jamming of Radio Free Asia in Vietnam. In addition, $5 million is authorized for broadcasting to Belarus for each of the fiscal years 2006 and 2007 to increase the number of hours broadcast to that country. The Lukashenka regime's extensive information blockade and total control over state media are compelling reasons for increasing broadcast hours to Belarus. The Committee encourages collaboration with other governments and non-governmental organizations in facilitating the unhindered dissemination of information to the largest possible audience in Belarus.

Subsection 106(1) authorizes $603,394,000 for fiscal year 2006 and $621,495,820 for fiscal year 2007 International Broadcasting Operations.

Subsection 106(2) authorizes $10,893,000 for each of fiscal years 2006 and 2007 for Broadcasting Capital Improvements.

Subsection 106(3) authorizes $37,656,000 for fiscal year 2006 and $29,931,000 for Broadcasting for Cuba (at the President's request). The fiscal year 2006 level includes $10 million for a one-time purchase of an airborne platform for transmitting Radio and TV Marti to overcome jamming by the Cuban Government. The ongoing expenses for this new activity are $2 million which is reflected in the fiscal year 2007 authorization level.

TITLE II. DEPARTMENT OF STATE AUTHORITIES AND ACTIVITIES

Section 201. Consolidation of Law Enforcement Powers; New Criminal Offense.

This section would replicate 18 U.S.C. 3056(d) for Diplomatic Security (DS) agents. Section 3056(d) of Title 18 presently provides for criminal penalties when an individual interferes with a Secret Service agent protecting a foreign dignitary, or interferes with a Bureau of Alcohol, Tobacco and Firearms (ATF) agent detailed to support the same activity. Under current law, if an individual similarly interferes with a Diplomatic Security agent or an ATF agent temporarily detailed in support of the DS protective mission, the individual is not subject to any criminal penalty. This unfairly encumbers the mission and potentially impacts the ability of the Department of State to safely escort the person under physical and diplomatic protection. This section would remedy this deficiency in the law.

Section 202. International Litigation Fund.

This section authorizes the State Department to replenish the existing International Litigation Fund (ILF) by retaining amounts awarded in international arbitrations relating to the costs of litigation where the claims are defended by the Department. Under current law, the Department can contribute to the International Litigation Fund a small percentage of any damage award obtained. That authorization does not apply, however, to cases where the Department defends the United States against international claims because, in such cases, an award favorable to the United States will not call for any payment on the claim, even though litigation costs, attorneys' fees and expenses may be awarded to the Department if it prevails. The amendment in this section would permit the ILF to be replenished by such awards.

Section 203. Retention of Medical Reimbursements.

This section enables the State Department to retain medical insurance reimbursements in the year in which they are collected. In order to facilitate immediate medical treatment of its employees abroad, the Department pays all medical fees for its employees and receives reimbursement from the employee's insurer at a later date. However, because of the long lag time in the processing of foreign medical claims by U.S insurers, reimbursements are made after the fiscal year in which the Department pays medical fees. In such an instance, the reimbursements are credited to the previous fiscal year and under U.S. law cannot be obligated or expended (since the fiscal year is past). This provision enables the Department to retain medical insurance reimbursements in the year in which they are collected allowing the Department to better manage the reimbursements received and use them for future cases where the Department reimburses medical fees. The Committee expects that reimbursements from insurance companies will continue to be credited to the account which pays for employees' medical expenses but under the authority of this section will now be credited to the account that is currently available at the time the reimbursement is received.

Section 204. Buying Power Maintenance Account.

This section amends section 24(b)(7) of the State Department Basic Authorities Act by striking subparagraph (D) and increasing the value of the Buying Power Maintenance Account. Section 24(b) established the Account, whereby unused funds appropriated to the Department may be transferred to the account when currency fluctuation causes a favorable exchange rate, resulting in excess funds. These funds are then used to cover shortfalls caused by a future decline in the value of the dollar. Subsection (b)(7) permits the transfer of expired, unobligated balances into the no-year Buying Power Maintenance Account (for example, when funds are credited back to the account after the end of a fiscal year), subject to compliance with congressional reprogramming requirements and a $100 million cap. The amendment in this section eliminates a requirement which makes such transfers subject to advance appropriations, which has made the transfer authority less usable. The Committee notes that the Department of Defense has a similar authority (10 U.S.C. 2779).

Section 205. Authority to Administratively Amend Surcharges.

This section allows the Secretary of State to adjust fee levels for passports and immigrant visas administratively in keeping with the practice followed for other fees collected by the Department.

Section 206. Accountability Review Boards.

This section provides a limited exemption from the requirement to convene an Accountability Review Board (ARB) in incidents that involve serious injury, loss of life or significant destruction of property at or related to a U.S. Mission in Iraq or Afghanistan. The Secretary of State would have the discretion to convene an ARB or use alternate accountability review procedures for these two high-risk missions. In addition to providing for appropriate accountability review, affording such discretion recognizes that alternative procedures may be better suited to review cases at missions where the level of risk is higher than would normally be considered acceptable.

Section 207. Designation of Colin L. Powell Residential Plaza.

This section authorizes the naming of the staff housing facility for the U.S. Embassy in Jamaica as the `Colin L. Powell Residential Plaza.' This provision was suggested by the State Department as a tribute to former Secretary Powell for his efforts on behalf of the foreign service and to recognize his Jamaican heritage.

Section 208. Removal of Contracting Prohibition.

This section repeals Section 406(c) of the Omnibus Diplomatic Security and Antiterrorism Act of 1986 (P.L. 99-399) which made persons doing business with Libya ineligible for contracts awarded under this act. The Department seeks relief from this prohibition in order to undertake near-term activities, such as refurbishing and maintaining the current U.S. liaison office in Tripoli.

Section 209. Translation of Reports of the Department of State.

This section requires that, within 30 days after the date of issuance by the U.S. mission in a foreign country, the Trafficking in Persons Report and the International Religious Freedom Report shall be translated into the official language of that country. In addition, the translated report must be posted on the Web site of the U.S. Embassy in that country. The Committee strongly believes that translation of the reports is critical to accomplishing the purpose of the U.S. Congress in requiring these reports.

Section 210. Entries Within Passports.

This section amends the law (`An Act to regulate the issue and validity of passports, and for other purposes', approved July 3, 1926 (22 U.S.C. 211a; 44 Stat. 887)), under which the Secretary of State is authorized to issue passports and is intended to be read as an essential condition of that authority. It provides that upon the request of a U.S. citizen or the legal guardian of a citizen born in the city of Jerusalem, the Secretary of State shall record the place of birth as Israel.

Unlike other citizens, who if born outside the United States have their passports marked with the country of their birth, Americans born in Jerusalem, Israel, have their passports marked `Jerusalem.' This provision, similar to provisions of prior years' bills, permits such citizens to have, on request, their passports state `Israel' rather than `Jerusalem.' The provision clarifies that this requirement relates to, and is part of, the underlying provision relating to the authority of the Secretary to issue passports, and that such authority is derived solely from statute. Moreover, the section notes the citizen has a right to bear a passport that is accurate.

Section 211. United States Actions with Respect to Jerusalem as the Capital of Israel.

This section addresses the status of Jerusalem as part of Israel. Subsection (a) provides that none of the funds authorized to be appropriated by this act may be expended for the operation of a U.S. consulate in Jerusalem unless such a consulate is under the supervision of the U.S. Ambassador to Israel. The Congress believes that it is difficult for United States policy in Israel to be consistent if the Embassy and Consulate operate, unlike other such entities, under separate--rather than unified--direction. The Consulate has within its jurisdiction areas that are clearly within Israel under the policies of the Congress and even of this (and prior) Administrations. This provision has been carried in prior years' bills.

Subsection (b) provides that none of the funds authorized to be appropriated by this act may be available for the publication of any official government document which lists countries and their capital cities unless it identifies Jerusalem as the capital of Israel. This provision was carried in last year's Foreign Relations Authorization Act and is repeated so as to apply to spending authorized by this act, as well. The Congress believes that Israel is entitled to decide where its capital is and that our Embassy should be in that capital; it has consistently supported Israel in this regard.

Section 212. Availability of Unclassified Telecommunications Facilities.

This section requires the Secretary of State to make available to Congressional Committees the use of telecommunication facilities located in an overseas facility to allow Committees to receive testimony or other communications from an individual in that country.

The Department of State has not always fully cooperated in making its unclassified telecommunications facilities available to Committees of Congress to receive the testimony of witnesses who are located overseas. This would clarify that it is the duty of the Department to assist the Congress in this regard. Increasing the use of digital videoconferencing technology has the potential to reduce the travel expenses for witnesses that might otherwise be borne by the taxpayer, and to increase the range of information available to the Congress so as to improve its oversight and legislative efforts.

Section 213. Reporting Formats.

This section requires the Secretary of State to submit required congressional reports electronically. This requirement is to take effect with the first report submitted after enactment of this act. The Department of State has lagged behind agencies such as the United States Agency for International Development in providing information to the Congress in machine-readable form. Its reports, which are prepared internally in machine-readable form, are reduced to paper for delivery to the Congress but are not accompanied by `electronic' versions. This practice results in waste and delays or prevents the further dissemination, in appropriate cases, of the information to the public.

Section 214. Extension of Requirement for Scholarships for Tibetans and Burmese.

This section amends section 103(b)(1) of the Human Rights, Refugee, and Other Foreign Relations Provisions Act of 1996 (P.L. 104-319) by striking `for the Fiscal Year 2003' and inserting `for each of the Fiscal Years 2006 and 2007.' This continues the authority for scholarships for Tibetans and Burmese students and professionals.

Section 215. American Institute in Taiwan Facilities Enhancement.

This provision amends P.L. 106-212, the American Institute in Taiwan Facilities Enhancement Act, by striking the $75 million authorization of appropriations and replacing such authorization with `such sums as may be necessary.' While final construction decisions have not been made, the expectation is that the new building for the American Institute in Taiwan will cost more than the $75 million originally authorized.

Section 216. Activities Related to Cuba.

This section, as authorized by existing law, provides $5 million from fiscal year 2006 funds to be used for various educational exchange programs operated by the Bureau of Educational and Cultural Affairs of the Department of State to support the Cuban people. It underscores U.S. policy by focusing on human rights dissidents, pro-democracy activists, and independent civil society members. It provides for congressional oversight by requiring: (1) no later than 90 days after the date of enactment of this act, reporting to the Committee on prospective participants in the programs listed in the section; and (2) a 15-day prior notification to the Committee on participants deemed by the Department to be eligible for such programs. Nothing in this section shall be construed as limiting, in any way, existing restrictions in U.S. law relating to travel to and from Cuba or existing prohibitions relating to Cuban nationals, including those imposed due to Cuba's designation as a state-sponsor of terrorism under the Export Administration Act, as amended, and those prohibitions imposed by other U.S. laws on officials, agents, instrumentalities of, and representatives of the Castro regime or of the Cuban Communist Party.

TITLE III. ORGANIZATION AND PERSONNEL OF THE DEPARTMENT OF STATE

Section 301. Education Allowances.

This section makes the following changes to the education allowance in 5 U.S.C. 5924(4): (1) allows for travel to the United States for children in kindergarten through 12th grade, when schools at post are not adequate; (2) allows for educational travel to a school outside the United States for children at the secondary and college level; and (3) allows the option of storing children's personal effects near the school during their trip home, rather than transporting them back and forth.

Section 302. Official Residence Expenses.

This section permits the Department of State to provide in advance funds available for official residence expenses under 5 U.S.C. 5913(b) to those persons now eligible to receive reimbursement for such expenses.

Currently, principal officers at posts abroad are required to pay all household expenses personally and then submit vouchers for reimbursement. Some principal officers at posts where official residence expenses are high cannot afford to pay such expenses personally before receiving reimbursement. This proposal, which would not require any additional funds to implement, would enable such officers to receive funds in advance to defray the unusual expenses incidental to the operation and maintenance of official residences.

Section 303. Increased Limits Applicable to Post Differentials and Danger Pay Allowances.

This section increases the cap for hardship and danger pay for Foreign Service personnel from 25 percent of salary to 35 percent. As a result of increased danger in many locations, many posts with high but disparate levels of danger and hardship are clustered at the ceiling rate of 25 percent. This has resulted in an inability to maintain appropriate distinctions between the various levels of danger and hardship. This section would not result in an automatic increase of rates for all danger pay and hardship pay locations, but would provide the Department discretionary authority to make appropriate adjustments. Subsection (d) provides that the Secretary of State inform the appropriate Committees of Congress of the criteria for increasing these differentials and expects the Department to brief the Committees prior to such an increase.

Section 304. Home Leave.

This section provides that Foreign Service Officers may take authorized rest and recuperation travel under 22 U.S.C. 4081(6) even if they take accrued, unused home leave authorized by this section. This would ensure that eligibility for R&R would not be affected if someone used accrued home leave while on other travel to the United States. In addition, this section reduces the time period for eligibility for home leave from 18 months to 12 months.

Section 305. Overseas Equalization and Comparability Pay Adjustment.

This section would amend Chapter 4 of the Foreign Service Act of 1980 (22 U.S.C. 3961) to stipulate that Foreign Service Officers in class one or below, stationed outside the continental United States, receive locality-based comparability payments under section 5304 of title 5, United States Code, that would be paid to a member if his or her official duty station were in Washington, DC. The provision has a 3-year phase-in period.

For the past several years, government employees have received locality pay adjustments intended to raise Federal salaries to the level of salaries paid in the private sector for comparable work. Foreign Service Officers working in Washington, DC. receive the locality pay, but those stationed outside the United States do not. This has resulted in an average of 15.98 percent difference between the base pay of personnel stationed overseas and those stationed in Washington, creating a greater financial incentive to serve in Washington, DC.

Section 306. Fellowship of Hope Program.

This section amends the Foreign Service Act of 1980 by adding a new section that clarifies the authority underlying a current exchange program between the foreign affairs agencies of the United States, the European Union, and its member states created to promote collaboration among its young leaders. Under this program, Foreign Service Officers are identified on an annual basis to serve 1-year details at the European Union in Brussels and designated European foreign ministries. After the Foreign Service Officers complete the details at the EU or in the foreign ministries, they are assigned to a position in the U.S. Embassy in the relevant European capital. Conversely, the State Department also will receive members of the diplomatic corps from the European Union and designated foreign ministries. While the present program is conducted with EU member states, the new section would envision its expansion to cover NATO countries that are not members of the EU (e.g., Canada, Norway).

Subsection (d) confirms the principle that officers or employees of the United States owe their allegiance to the United States and be bound by oath to support and defend the U.S. Constitution, and that this section does not authorize a member of the U.S. Foreign Service to be assigned to a position with a foreign government or entity that requires the U.S. Foreign Service member to give allegiance or loyalty to that foreign government or entity rather than the United States.

Section 307. Regulations Regarding Retirement Credit for Government Service Performed Abroad.

This section sets a 60-day deadline for issuance of regulations to implement Section 321 of the Foreign Relations Authorization Act, Fiscal Year 2003 (P.L. 107-228). This section provides for retirement credit for part-time, or temporary, employees who worked for the Department of State overseas in the 1990s.

Section 308. Promoting Assignments to International Organizations.

This section amends the Foreign Service Act of 1980 to include, as consideration for promotion, whether the officer has served in a multilateral institution or international organization. The purpose of this change is to encourage members of the Foreign Service to take assignments with international or multi-national responsibilities.

Section 309. Suspension of Foreign Service Members Without Pay.

This section would amend Section 610 of the Foreign Service Act to allow the Department to suspend without pay a member of the Foreign Service in cases where there is reasonable cause to believe that the employee has committed a crime for which the employee may be imprisoned and there is a connection to the efficiency of the Service. Currently, a Foreign Service employee indicted for a crime, e.g., murder or child molestation, is allowed to use accrued leave or leave without pay (approved absence) while incarcerated. No administrative action can be taken against the employee until a conviction. However, a Civil Service employee (under Title 5) indicted for the same crime is placed on `indefinite suspension.'

Section 310. Death Gratuity.

This section amends Section 413(a) of the Foreign Service Act of 1980, to provide a death gratuity payment of $100,000, or 1 year's salary, whichever is greater upon the death of a Foreign Service officer who dies as a result of injuries sustained in the performance of duty abroad.

Section 311. Clarification of Foreign Service Grievance Board Procedures.

This section amends the Foreign Service Act to allow the Foreign Service Grievance Board to retain an employee on the payroll while a grievance is being reviewed until a final decision is rendered on the merits of the case before the Board. Section 314(b) of the Foreign Relations Authorization Act, FY 2003 (P.L. 107-228) regarding separation for cause, struck similar language from Section 1106(8) of the Foreign Service Act that this provision reinstates.

Section 312. Repeal of Recertification Requirement for Members of the Senior Foreign Service.

This section repeals the provision in the Foreign Service Act that requires the Secretary to establish a recertification requirement for members of the Senior Foreign Service (SFS) that is equivalent to the recertification process for the Senior Executive Service (SES).

In Section 1321 of the Homeland Security Act of 2002 (P.L. 107-296), the Congress repealed the recertification requirements for SES employees contained in title 5 of the United States Code. The rationale was that these periodic recertification requirements for the SES did not serve a useful purpose. The same rationale applies to the SFS.

Section 313. Technical Amendments to Title 5, United States Code, Provisions on Recruitment, Relocation, and Retention Bonuses.

Section 101 of the Federal Workforce Flexibility Act of 2004 amended sections 5753 and 5754 of Title 5 regarding recruitment, retention, and relocation benefits, which state that such bonuses may not be paid to a person who holds a position to which an individual is appointed by the President, by and with the consent of the Senate. Although such language was seemingly aimed at precluding application to traditional appointees, it has the effect of excluding all Foreign Service Officers as defined by Section 103(4) of the Foreign Service Act of 1980, as amended, who are by definition appointed by the President under section 302(a)(1) of the FSA. This proposal seeks to clarify the amended statutory provisions so as not to preclude the Department from offering these benefits even with the approval of the Office of Personnel Management (OPM). The section clarifies that ambassador-level appointees will remain subject to the existing restrictions of sections 5753 and 5754 of Title 5.

Section 314. Limited Appointments in the Foreign Service.

This section codifies the Department practice of requiring specialist-limited, non-career appointees to have a 1-year break in service after completion of a 5-year limited appointment before assuming a new limited appointment. In addition, it authorizes the Department to extend limited appointments, now capped at 5 years, of career Foreign Service candidates in certain circumstances. Such an extension would be based on needs of the Service. An example of such a circumstance is a case where an officer is called to active military duty. This authority is not intended to be used to extend the career candidacy of junior officers except as expressly provided for in the amendment.

Section 315. Statement of Congress Regarding Career Development Program for Senior Foreign Service.

The Committee applauds the recent changes to the career development program for entry into the Senior Foreign Service, and reiterates its support for a career development program which ensures that members of the Senior Foreign Service demonstrate operational effectiveness and experience in functional areas of expertise as well as geographic expertise. The Committee emphasizes the importance of human rights work and expresses its hope that the revised career development program will result in a stronger Bureau of Democracy, Human Rights and Labor as well as Foreign Service Officers better equipped to promote human rights around the world consistent with the objectives of Title VI of this act.

Section 316. Sense of Congress Regarding Additional United States Consular Posts.

This section recommends that the Secretary of State establish consulates or other United States diplomatic presences in Pusan, South Korea, Hat Yai, Thailand, and in an additional location in an under served region in India.

Section 317. Office of the Culture of Lawfulness.

This section creates an Office of the Culture of Lawfulness within the Bureau for International Narcotics and Law Enforcement Affairs. The section requires the office to be headed by a Director with at least two professional staff. The purpose of the office is to promote, coordinate, manage, and report on our worldwide culture of lawfulness efforts. The existing global rule of law program needs greater attention within the Bureau of International Narcotics and Law Enforcement Affairs, and this office with dedicated staff will provide the necessary focus.

Section 318. Review of Human Resources Policies of the Department of State.

This section requires the Secretary of State to conduct a review of the human resources capabilities within the Department and evaluate whether the Department is organized effectively and whether individuals with the appropriate skills are being hired to meet the new security challenges. This provision also requires that the review include an emphasis on improving the ethnic, racial, cultural and gender diversity of personnel of the Department and a biennial report on the review.

TITLE IV. INTERNATIONAL ORGANIZATIONS

Section 401. REDI Center.

This section explicitly authorizes U.S. participation in the Regional Emerging Disease Intervention (`REDI') Center in Singapore. Singapore is expected to fund the operations of the facility and there is no requirement for an authorization of appropriations.

Section 402. Extension of Authorization of Appropriation for the United States Commission on International Religious Freedom.

This section authorizes appropriations of $3,300,000 for the operations of the U.S. Commission on International Religious Freedom for each fiscal year, 2006-2011. This is an increase of $300,000 per year from the fiscal year 2005 funding level. The Commission established in P.L. 105-292 is an independent agency charged with reviewing and reporting on violations of international religious freedom. The Commission recommends options for U.S. policies with respect to foreign countries which engage in or tolerate violations of religious freedom.

Section 403. Reform of the International Atomic Energy Agency.

Subsection (a) states that efforts to prevent the further spread of nuclear weapons would be enhanced by universal membership in the IAEA and that the enhanced authorities provided by the IAEA Additional Protocol to the Safeguards Agreements between the IAEA and IAEA Member States are indispensable to the IAEA's ability to conduct inspections of nuclear facilities with a high degree of confidence.

The subsection further states that the national security interests of the U.S. would be enhanced by the rapid ratification and implementation of the Additional Protocol by all Member States of the United Nations of U.N. Security Council Resolution 1540. This resolution requires all Member States to adopt and enforce the necessary laws and regulations criminalizing the provision of any form of support given to non-state actors that attempt to manufacture, acquire, possess, develop, transport, transfer, or use nuclear, chemical, or biological weapons and their means of delivery.

The subsection also states that U.S. national security interests require that the IAEA be adequately equipped with the authorities and resources needed to comprehensively and efficiently carry out its responsibilities for inspections and safeguards of nuclear facilities. The Committee believes that the IAEA's ability to carry out these tasks is undermined by recurring shortages of funds that arise from the U.S. paying its assessed contribution at the end of the calendar year instead of the beginning.

The Committee also believes that any savings accruing from this delayed payment are far outweighed by the negative impact on fundamental U.S. national security interests. The Committee strongly recommends that the Department of State expeditiously adopt a payment schedule that provides the IAEA with the annual U.S. contribution at the beginning of the calendar year in line with the general practice of other Member States.

Subsection (b) states that the Nuclear Nonproliferation Treaty (NPT) is the foundation for international cooperation to prevent the further spread of nuclear weapons capabilities and that the overriding purpose of the NPT has always been to prevent the spread of these capabilities.

The subsection states that the language of Article IV of the NPT regarding the `. . . right to develop research, production, and use of nuclear energy for peaceful purposes without discrimination . . .' is specifically conditioned by, and must be interpreted within the context of, Article II of the NPT which obligates signatories not to undertake activities relating to the development of nuclear weapons. The subsection states that because the processes used for the enrichment of uranium and the reprocessing of plutonium for peaceful purposes are virtually identical to those needed for military applications and thereby inherently pose a risk of proliferation, Article IV cannot be interpreted to recognize an inalienable right by every country to enrich uranium or reprocess plutonium.

This subsection also states that, given the NPT's overriding purpose of preventing the proliferation of nuclear weapons capabilities, the withdrawal provision in Article X of the Treaty cannot be interpreted in a manner consistent with the NPT's purpose as permitting a signatory country to surreptitiously develop a nuclear weapons capability based on materials, facilities, and the equipment it has acquired for ostensibly peaceful purposes under Article IV and then withdraw from the Treaty with that capacity intact. Therefore, the relevant materials, facilities, and equipment must be destroyed or surrendered before that country will be recognized as having legally exercised its right of withdrawal from the NPT.

Subsection (c) declares that Congress holds that all provisions of the NPT must be interpreted within the context of preventing the proliferation of nuclear weapons and that Article IV of the NPT does not guarantee to every country that is a State Party to the NPT an inalienable right to enrich uranium or reprocess plutonium. It further declares that if an NPT State Party gives notice of its intention to withdraw from the NPT under Article X, it must surrender all of the materials, facilities, and equipment acquired for ostensibly peaceful purposes under Article IV and that no state will be recognized as having legally exercised its right of withdrawal until it destroys or surrenders all such materials, facilities, and equipment.

The Committee believes that the provisions in Article IV of the NPT regarding the rights of countries to develop peaceful nuclear energy are commonly and fundamentally misinterpreted by their being considered in isolation instead of within the Treaty's governing context of nonproliferation. Article IV can be interpreted consistent with the purpose of the Treaty only as recognizing a general right to pursue those activities that can clearly be demonstrated to be for peaceful purposes and not as an unconditional right to acquire the most sensitive technologies relating to nuclear fuel making or acquiring or expanding capacities that could be useful for military applications.

As the U.S. noted at the NPT Review Conference May 18, 2005: `While compliant State Parties should be able to avail themselves of the benefits that peaceful use of nuclear energy has brought to mankind, the Treaty establishes no right to receive any particular nuclear technology from other States Parties--and most especially, no right to receive technologies that pose as significant proliferation risk.'

The absence of an unlimited right, however, does not rule out the possibility for legally acquiring any particular capacity or engaging in any particular activity. Instead, for a country seeking to acquire a particular capacity or engage in a particular activity that could bring it closer to acquiring a nuclear weapons capability, a burden of proof must be placed on it to demonstrate that the intended effect is clearly peaceful, that there is a compelling economic need or benefit that will result, and that any proliferation risk that could result has been reduced to a maximum extent. Given that a capacity to enrich uranium or reprocess plutonium would allow its possessor to amass large quantities of nuclear weapons-usable materials, the diversion of which to make nuclear weapons cannot yet be detected in a timely fashion, Article IV cannot be interpreted consistent with the purpose of the Treaty as recognizing a right to a develop a self-sufficient capacity to enrich uranium or reprocess plutonium unless the attendant risks of proliferation have been demonstrated to have been reduced to a maximum extent.

The Committee strongly believes that this burden of proof extends far beyond mere statements of intent by the government of a State Party or limited inspections by the IAEA and includes consideration of the totality of measures and actions that appear to be inconsistent with purely peaceful purposes, such as the existence of undeclared nuclear facilities, procurement patterns inconsistent with a civil nuclear program, extensive security measures beyond those normally deemed sufficient for civil nuclear installations, a pattern of Article III safeguards violations suggestive of willful deception, efforts to conceal nuclear activities from the IAEA, or a nuclear program that appears to have little coherence for peaceful purposes but great coherence for weapons purposes.

Iran and other countries suspected of developing a clandestine nuclear weapons capability have claimed that their acquisition of the necessary elements is permitted by an expansive interpretation of Article IV that, if widely accepted, would eliminate virtually all limits on the nuclear program of any State Party as long as its government maintains the fiction that that program is intended solely for peaceful applications. If this interpretation were conceded, the limitations imposed by the NPT would be effectively eviscerated, and any country could legally acquire virtually all of the components needed for a nuclear weapons program by doing so under the guise of developing a peaceful nuclear energy program. This expansive interpretation is clearly contrary to the clearly stated purpose and governing context of the Treaty, namely preventing the proliferation of nuclear weapons capabilities, and therefore cannot be accepted as credible.

The Committee strongly believes that, given that Iran's nuclear program unambiguously fails to meet the burden of proof of peaceful intent, Iran does not possess a legal right under the NPT to enrich uranium or reprocess plutonium.

The Committee further believes that the provisions of Article V governing the exchange of technology for peaceful purposes are similarly contingent upon the recipient state's demonstration that the risks of proliferation from its acquisition of any material, facility, or equipment from a supplier state have been reduced to a maximum extent. As such, it is the responsibility of each supplier state to ensure that this burden of proof has been fully met by the recipient state prior to the execution of the relevant transaction.

The Committee believes that the purpose of the NPT would be rendered hollow if a State Party were allowed to legally acquire the components needed for a nuclear weapons program under the guise of developing a peaceful nuclear program and then, by withdrawing from the Treaty, free itself from the nonproliferation restrictions imposed by the NPT. To permit a retention of these capabilities after withdrawal would be to acknowledge beforehand an enduring right of each State Party to legally circumvent the Treaty's restrictions, a right that would be contrary to the Treaty's clearly stated and overriding purpose of preventing the proliferation of nuclear weapons capabilities, a purpose that has been freely agreed to by every State Party. For this reason, due to the inherent proliferation risks, the Committee believes that Article X cannot be interpreted consistent with the NPT's purpose as permitting a State Party to retain after its withdrawal the materials, facilities, and equipment acquired for ostensibly peaceful uses under Article IV and that therefore the surrender or destruction of these capabilities must occur prior to a recognition of that withdrawal.

Subsection (d) expresses a sense of Congress that the IAEA Director General should strengthen his efforts to secure adherence to an IAEA Additional Protocol by all IAEA Member States. The subsection also states Congress's belief that the IAEA's Statute authorizes it to provide nuclear security assistance to its Member States.

The purpose of subsection (d)(2) is to clarify any ambiguity concerning the IAEA's legal ability to provide nuclear security assistance.

Subsection (e) encourages the President to encourage rapid universal ratification of an IAEA Additional Protocol and the implementation of the provisions of U.N. Security Council Resolution 1540. The subsection authorizes the President to suspend U.S. non-humanitarian foreign assistance to any country which fails to ratify an Additional Protocol and implement the provisions of U.N. Security Council Resolution 1540. The subsection also requires the Secretary of State to submit a report on U.S. efforts to promote the universal implementation of U.N. Security Council Resolution 1540 and gives the President the discretion to submit such a report within the State Department's `Patterns of Global Terrorism' report.

The Committee believes that U.S. national security interests regarding nuclear proliferation and nuclear terrorism would benefit greatly from the rapid and universal ratification and implementation of the IAEA Additional Protocol and U.N. Security Council Resolution 1540. Given that the legislative burden on any country for doing so is slight, and reasons for substantive opposition lacking evidence or argument, action by the United States and other countries would be useful to ensure that all countries understand the importance of these measures to the interests of the United States and to those of the world as a whole. This subsection provides the President with a substantive means of persuasion for those countries unresponsive to requests for action.

Subsection (f) instructs the Secretary of State to ensure that the U.S. pays its assessed contribution to the IAEA at the beginning of the calendar year.

Subsection (g) authorizes to be appropriated additional funds as may be necessary to permit the Secretary of State to ensure that the U.S. can pay its regularly assessed contribution to the IAEA at the beginning of the calendar year to compensate for the current late payment.

Section 404. Property Disposition.

This section would allow the Secretary of State to use discretion as to whether to retain ownership of the Palazzo Corpi building located in Istanbul, Turkey. Despite the known security risks, current law mandates that the Secretary of State retain ownership of the building for the purpose of maintaining the International Center for Middle Eastern-Western Dialogue at such location due to the building's historic nature. Recognizing that the Palazzo Corpi does not meet security standards, has been a terrorist target numerous times in the past, and the Department has indicated it cannot ensure the safety and security of the staff and visitors to this location, the Committee believes the Secretary should properly dispose of this property .

TITLE V. INTERNATIONAL BROADCASTING

Section 501. Short Title.

This title may be cited as the `International Broadcasting Authorization Act, Fiscal Years 2006 and 2007.'

Section 502. Middle East Broadcasting Networks.

This section amends the U.S. International Broadcasting Act of 1994 to establish the Middle East Broadcasting Network as a non-Federal grantee organization. It would authorize the Broadcasting Board of Governors (BBG) to make annual grants for the purpose of carrying out radio and television broadcasting to the Middle East in Arabic, consistent with the broadcast standards and principles set for in the International Broadcasting Act of 1994. It provides for the establishment of the Middle East Broadcasting Networks (MBN) under a corporate structure, similar to that of RFE/RL, Inc. and Radio Free Asia. MBN incorporates Radio Sawa and Alhurra, the 24-hour-a-day television service to the Arab-speaking world.

Section 109A(c)(i)(A) of the International Broadcasting Act of 1994 provides that the Board of Directors of MBN will consist of the members of the Broadcasting Board of Governors, and that the Board of Directors will make all major policy determinations with respect to MBN. The section also provides that MBN is not a Federal agency, but is subject to audit by the Government Accountability Office (GAO) and inspection by the Inspector General of the Department of State and the Broadcasting Board of Governors.

This section also makes a number of technical amendments to the U.S. International Broadcasting Act of 1994 to clarify the relationship of the corporate broadcast entity to the Board and the Board's authority to allocate funds to MBN. In addition, it adds the Middle East Broadcasting Networks to the broadcasting entities that are to be represented in a coordinating committee to be chaired by the Director of the International Broadcasting Bureau.

The section would ensure that limitations on civil liability that apply to members of the BBG also apply to such members when serving as members of the Board of MBN.

Section 503. Improving Signal Delivery to Cuba.

This provision would update existing law with respect to the BBG's flexibility to enhance the transmission of Radio Marti broadcasts to Cuba. Under existing law, Radio Marti is required to utilize the broadcasting facilities at Marathon, Florida, and the 1180 AM frequency that was used by the Voice of America prior to the enactment of the Radio Broadcasting to Cuba Act, except in the instance where the broadcasts are jammed. In the instance of jamming, which has been in evidence since the station began broadcasting in May 1985, the station is authorized to utilize other transmission mechanisms. This section: Recognizes the fact that jamming is a constant in Radio Marti's broadcast environment; clarifies the authority of the Office of Cuba Broadcasting to use additional AM frequencies, as well as FM and SW frequencies; and provides Radio Marti with the same transmission options that are available to other BBG broadcast entities.

Section 504. Establishing Permanent Authority for Radio Free Asia.

In 1994, Congress placed a sunset of September 30, 2009, in Radio Free Asia's (RFA) enabling legislation. This section would repeal the sunset clause in Radio Free Asia's enacting legislation (P.L. 103-236).

RFA's mission is to provide in-country news and information to countries that do not permit free media. Almost all of RFA's target countries--China, North Korea, Burma, Laos, Vietnam, and Cambodia--are Communist, military, or authoritarian regimes that give no indication of allowing a free indigenous press any time in the near future, and certainly not before 2009.

The Committee underscores the importance of Radio Free Asia as a tool for the promotion of democracy, freedom of expression, and the free media in Asia and recommends the establishment of permanent authority to carry out its activities.

Section 505. Personal Services Contracting Program.

This section would amend Section 503 of the Foreign Relations Authorization Act for 2003 (P.L. 107-228) to permit the Broadcasting Board of Governors to employ up to 100 personal services contractors in the United States at any given time.

In P.L. 107-228, the Congress granted the BBG authority to administer a pilot program to employ up to 60 U.S. citizens or aliens as personal services contractors at any one time. This authority was further limited by the requirement that the need for such employment `is not of permanent duration.' The pilot program terminates on December 31, 2005.

According to the BBG, this pilot program has been helpful in responding to the need to fill positions when a rapid increase in broadcasting is required. Therefore, the Committee makes this program permanent, with a cap of 100 contractors.

Section 506. Commonwealth of the Northern Mariana Islands Education Benefits.

This section authorizes expenditures of funds for the purpose of providing education allowances for dependents of Broadcasting Board of Governors personnel employed in the Northern Mariana Islands.

TITLE VI--ADVANCE DEMOCRACY ACT OF 2005

The ADVANCE Democracy Act of 2005, which was originally introduced as H.R. 1133 by Representatives Frank Wolf and Tom Lantos, establishes in law a framework to strengthen and institutionalize the promotion of democracy within the State Department. The Committee believes that, while there are a number of talented and dedicated career State Department officials who focus their talents and energy on democracy promotion, these efforts could be strengthened. The Committee applauds Secretary Rice for her forthright and compelling statements regarding the need for our friends and adversaries alike to increase their efforts at democracy, and this section is intended to create incentives and training necessary to more deeply ingrain these policies into the fabric of the Department of State.

Section 601. Short Title.

This section states that the act may be referred to as the, `Advance Democratic Values, Address Non-democratic Countries and Enhance Democracy Act of 2005,' or the `ADVANCE Democracy Act of 2005.'

Section 602. Findings.

This section contains congressional findings describing the need to promote democracy throughout the world. The Committee notes that democracy is increasingly seen as a key part of the international system as reflected by the unanimous vote at the United Nations Commission on Human Rights affirming the right to democracy as a human right. Beginning in 2002, Congress began trying to focus the Department of State increasingly on being more active in furthering this trend in the Freedom Investment Act of 2002.

Over the past three decades, the number of fully democratic countries has more than doubled, from 41 to 89, while the number of countries governed by a dictator or a totalitarian government has decreased by 37 percent, often as a result of nonviolent resistance by the peoples of such countries, aided by support from democratic countries. According to the annual Freedom in the World report published by Freedom House (an annual comparative assessment of the state of political rights and civil liberties in 192 countries and 18 related and disputed territories), 75 percent of the population of the world currently lives in countries categorized as `entirely free' or `partly free,' as opposed to only 57 percent in 1973. These changes have been achieved in part through sustained and comprehensive efforts by democratic countries, including the United States and the democratic countries of Europe, to support dissidents and democracy activists in non-democratic countries. The findings note that the promotion of universal democracy constitutes a long-term challenge that does not always lead to an immediate transition to full democracy but, through a dedicated and integrated approach, it can achieve universal democracy.

Section 603. Statement of Policy.

This section declares that it is United States policy: To promote freedom and democracy and to affirm fundamental freedoms and human rights throughout the world as fundamental components of United States foreign policy; to provide support to nongovernmental organizations, individuals and movements living in nondemocratic countries that aspire to live in freedom; to provide political, economic, and other support to foreign countries that are undertaking a transition to democracy; and to strengthen alliances with other democratic countries in order to better promote and defend shared values and ideals.

Section 604. Definitions.

This section provides definitions for use in the act.

SUBTITLE A--DEPARTMENT OF STATE ACTIVITIES

Subtitle A ensures that Department of State activities and officers promote freedom and democracy throughout the world as a fundamental objective of United States foreign policy by seeking to end dictatorial and other nondemocratic forms of governance in foreign countries through peaceful methods.

Section 611. Promotion of Democracy in Foreign Countries.

Subsection (a) amends the State Department Basic Authorities Act by codifying the position of Under Secretary of State for Global Affairs, who shall have the primary responsibility of formulating and implementing United States policies and activities relating to the transition to and development of democracy in nondemocratic countries, as well as continuing to coordinate United States policy on global issues. Subsection (b) enhances the duties of the Assistant Secretary of State for Democracy, Human Rights, and Labor in democracy promotion. Subsection (c) requires that there be an office responsible for working with democratic movements and facilitating the transition of countries to democracy, which should be supervised by a new deputy assistant secretary, with the role of assisting individuals and movements committed to promoting democracy. The office would provide political support and facilitate the funding of nongovernmental organizations that promote democratic principles, practices and values; foster relationships between such organizations, individuals and movements with the government of the country and other governments interested in promoting democracy; communicate with leaders and other senior government officials regarding the respect for liberty democracy and freedom; and communicate with opposition political parties in nondemocratic countries.

This subsection also creates a pilot program to create two Regional Democracy Hubs and to increase the number of Foreign Service Officers assigned to the Bureau of Democracy, Human Rights, and Labor so that such individuals represent 50 percent of the employees assigned to the Bureau. With respect to the Regional Hubs, the Committee intends that each Hub would be a separate section within the Embassy, with the Director serving as a member of the Country Team in the country in which the Hub is located and reporting to the Ambassador in that country. The Hubs should have separate budgetary resources from other sections, sufficient to advance the democracy promotion mandate. However, Hub employees would also work in cooperation with the Ambassadors and Embassy staff from nondemocratic countries in the region to assist those missions in their efforts at the promotion of democracy. The Committee does not intend that the Hub and its employees have the primary responsibility for democracy promotion. Rather, that responsibility must be vested in the Ambassador and staff in each country. The Hubs can be a focal point for innovation, assist in stimulating the thinking and action of the individual missions and, in other countries in the region, serve as a visiting country team member to help devise and implement regional approaches to promoting democracy in individual countries.

Section 612. Reports.

Subsection (a) directs the Secretary of State to prepare an Annual Report on Democracy that will designate foreign countries as `nondemocratic' or as `democratic transition countries (because such a country is in an early stage of transition to democracy), as determined by reference to principles and rights delineated in the Universal Declaration of Human Rights, the United Nations Charter, and other respected documents. The report will include a short narrative for each foreign country designated, and for those nations designated `nondemocratic,' the Annual Report on Democracy will include a strategy to promote and achieve a transition to democracy and any actions to promote such a transition. The provision also contains criteria that, if not met, will require a designation as `nondemocratic.'

The report required by subsection (a) is one of the central elements of the ADVANCE Democracy Act. The Committee intends that the Department provide a forward-looking strategy on how the U.S. Government intends to promote democracy in countries designated as nondemocratic in the report. The Committee believes that, particularly with respect to countries with which the United States has other strong national security interests, the promotion of democracy sometimes is suppressed at key moments where opportunities for a democratic deepening exist. By taking elements of democracy promotion from the Department's mission program plan, as enhanced by section 917 of the act, and placing it in context, Congress will be able to exercise better oversight as to how the U.S. Government intends to develop both short-term and long-term actions to promote democracies. As provided in section 914, this information can be combined with the Support for Human Rights and Democracies (SHRD) Report, originally required by the Freedom Investment Act of 2002.

The Committee believes that the Department should have two key human rights reports relating to democracy and universal human rights. The first, the annual Country Reports on Human Rights Practices, will be an official description of the conditions in a country, developed in a nonpolitical and factual manner; the second, the Annual Report on Democracy, combined with the SHRD Report, should briefly describe the current status or situation of human rights and democracy movements, the strategy to address the situation, programs supported by the U.S. Government to address the situation, and the effectiveness of those programs. The description should include what the U.S. Government has done, as well as future goals. It is also essential for the report to specify how the U.S. Government-supported programs are intended to effect the specific situation(s) described in the initial country narrative. The flaw in the current SHRD Report is that it represents a catalogue of the activities that the Department has done and does not set forth the Department's strategy and implementation plans, nor in some instances does it link how specific U.S. Government-supported programs address certain serious human rights violations. Understanding that this information may be sensitive, this provision allows the Secretary to put as much of this information as necessary in a classified annex to the report.

Subsection (b) provides for a one-time report on the training program designed by the State Department regarding democracy promotion.

Section 613. Strategies to Enhance the Promotion of Democracy in Foreign Countries.

Subsection (a) provides that the Under Secretary for Democracy and Global Affairs should convene annual working groups on each country designated as nondemocratic to review progress on the U.S. action plan for facilitating a transition to democracy in that country. Subsection (b) also provides that the Undersecretary should convene working groups on the transition of `partly' democratic countries to `fully' democratic countries that were designated as nondemocratic countries in previous reports. Subsection (c) identifies that these working groups should have interagency representation. Subsection (d) directs the chief of mission for each country designated as nondemocratic to meet with the Under Secretary of Democracy and Global Affairs at least once each year to discuss the transition to democracy in such country.

Section 614. Activities by the United States to Promote Democracy and Human Rights in Foreign Countries.

Subsection (a) amends the Freedom Investment Act of 2002 to include a provision directing chiefs of mission in countries designated as nondemocratic in the most recent Annual Report on Democracy to have at least one political officer whose primary responsibility is monitoring human rights developments and promoting democracy in such country. It also enables the Secretary of State to include in the Annual Report on Democracy information required under the Freedom Investment Act of 2002 (relating to reports on actions taken by the United States to encourage respect for human rights) so as to create one strategy report relating to both the promotion of democracy and the elimination of severe human rights abuses. Subsection (b) changes the requirements of the report on eliminating severe human rights abuses to include a list of priorities and an action plan to eliminate these abuses. As indicated above, it also allows the combination of the SHRD Report and the Annual Report on Democracy.

Section 615. Democracy Promotion and Human Rights Advisory Board.

This section creates a bipartisan Democracy Promotion Advisory Board whose purpose is to advise and provide recommendations on United States policies regarding the promotion of democracy and the establishment of universal democracy. It requires the Board to conduct a study of U.S. democracy assistance within 18 months of the enactment of the report and sunsets the Board 6 months thereafter, although the Secretary can extend the life of the Board for an additional 5 years.

The Committee recognizes that some nongovernmental entities and some officials within the Administration would like to see reform of the manner in which the United States delivers assistance overseas to promote democracy and good governance. The study is intended to provide information to the Administration and the Congress on how to make this assistance more effective and to focus U.S. assistance efforts on nondemocratic countries and countries in the early phases of a transition to democracy. The study is also intended to review whether U.S. international broadcasting services can be better used to reach out to populations in foreign countries.

Section 616. Establishment and Maintenance of Internet Site for Global Democracy and Human Rights.

This section directs the Secretary of State to establish and maintain an Internet site for global democracy to facilitate access by individuals and nongovernmental organizations in foreign countries to documents and other media regarding democratic principles, practices, and values, the promotion and strengthening of democracy, and the injustices of living in a nondemocratic country. This Web site is intended to be an address where democracy activists from around the world can obtain information on conditions in their country in their own language, materials on successful democracy movements and tactics for peaceful democratic change, and links to groups around the world that engage in similar struggles for freedom. The Web site should also include parts of other relevant human rights reports, including translations where appropriate, such as the annual Country Reports on Human Rights Practices, the annual Religious Freedom Report, and the annual Report on Trafficking in Persons.

Section 617. Programs by United States Missions in Foreign Countries and Activities of Chiefs of Mission.

Subsection (a) directs the chief of mission in each country designated as nondemocratic to develop a strategy to promote democracy in the country and to provide material and visible support to nongovernmental organizations, individuals and movements in that country that are committed to democratic principles, practices, and values. Subsection (b) encourages chiefs of missions and principal officers to spend substantial amount of time at universities and other institutions of higher learning for the purpose of communicating, promoting, and defending U.S. values, purposes and policies related to promotion of democracy. Subsection (c) authorizes and encourages access by foreign nationals to the premises of United States diplomatic missions in countries categorized by the most recent Annual Report on Democracy as either a `democratic transition country' or as `nondemocratic.'

Section 618. Training for Foreign Service Officers.

Subsection (a) mandates enhanced training in how to strengthen and promote democracy for members of the Foreign Service having responsibility for internal political developments and human rights in foreign countries. The Committee believes that in order to effectively implement the strategies developed in accordance with this title, the Department must have increased emphasis on training for the Foreign Service. Training should include: (1) ways to promote democracy in a nondemocratic country including building relationships and consulting with individuals and nongovernmental organizations in such country that support democratic principles, practices, and values; (2) providing technical, financial, and other support to individuals (including expatriated citizens) and nongovernmental organizations in such country that support democratic principles, practices, and values; (3) instruction on the importance of visiting local landmarks and other local sites associated with nonviolent protest to demonstrate U.S. support of democracy and freedom from oppression; (4) conducting discussions with the leaders of such country regarding a transition to full democracy, political, social, and economic freedoms, United States policy to promote democracy in foreign countries, and the possibility that such leaders might voluntarily cede power; (5) conducting discussions with the students and young people of such country regarding a transition to full democracy, and political, social, and economic freedoms, and United States policy to promote democracy in foreign countries; (6) the methods of nonviolent action and the most effective manner to share such information with individuals and nongovernmental organizations in such country that support democratic principles, practices, and values; and (7) the investigation and documentation of violations of internationally-recognized human rights in coordination with nongovernmental human rights organizations, violations of religious freedom, including particularly severe violations of religious freedom (as such terms are defined in paragraphs (11) and (13) of section 3 of the International Religious Freedom Act of 1998 (22 U.S.C. 6402)), political repression, and government-tolerated or condoned trafficking in persons that occur in such country.

Subsection (b) authorizes this training for members of the Civil Service having similar responsibilities. Subsection (c) authorizes appropriations as may be necessary to develop appropriate programs and materials necessary to accomplish the mandatory training. Subsection (d) makes clerical amendments to the Foreign Service Act of 1980.

Section 619. Performance Pay; Promotions; Foreign Service Awards.

Subsection (a) enables meritorious or distinguished service in the promotion of democracy in foreign countries to be a basis for awarding performance pay to Foreign Service Officers. Subsection (b) makes evaluation of an officer's promotion of democracy in foreign countries a basis for promotion in the Foreign Service. Subsection (c) requires the Secretary shall prescribe regulations regarding the implementation of subsections (a) and (b). Subsection (d) authorizes Foreign Service awards in the instance of distinguished or meritorious service in the promotion of democracy, including contact with and support of individuals and nongovernmental organizations that promote democracy in countries designated as nondemocratic in the most recent Annual Report on Democracy.

Section 620. Appointments.

Subsection (a) requires the President, in the event of appointing a representative of the United States in a country designated `nondemocratic,' to report to the Senate Foreign Relations Committee what actions that individual took during the period of prior service as Chief of Mission to promote democracy in that country. Subsection (b) requires that Chiefs of Mission assigned to countries designated nondemocratic should possess clearly demonstrated competence in and commitment to the promotion of democracy in that country, including competence in promoting democracy to students and young people.

SUBTITLE B--ALLIANCES WITH OTHER DEMOCRATIC COUNTRIES

Subtitle B recognizes that the United States' efforts to strengthen and promote democracy in nondemocratic countries are best conducted in cooperation with other democratic countries.

Section 631. Alliances with Other Democratic Countries.

Subsection (a) expresses congressional findings that it is in the national security interest of the United States to forge alliances with democratic countries to promote democracy and protect fundamental freedoms around the world. Subsection (b) establishes the purposes of Title II as encouraging cooperation between democratic countries through new ways of forging alliances with democratic countries that promote and protect democratic principles, practices, and values. Subsection (c) authorizes the President to take such actions as necessary to establish alliances with other countries to achieve the purposes described in subsection (b). Subsection (d) expresses the sense of Congress that any foreign country designated as nondemocratic in the most recent Annual Report on Democracy should not participate in any alliance of democratic countries.

Section 632. Sense of Congress Regarding the Establishment of a Democracy Caucus.

Subsection (a) expresses that it is the sense of Congress to endorse the findings in the Intelligence Reform and Terrorism Prevention Act of 2004, of the importance of promoting democracy caucuses in international organizations and the purposes of such caucuses. Subsection (b) expresses that it is the sense of Congress that the creation of a Democracy Caucus will not only improve internal governance but will also strengthen the implementation of commitments regarding democracy and human rights at such organizations.

Section 633. Annual Diplomatic Missions on Multilateral Issues.

This section declares that the Secretary of State should send a high-level delegation from the United States on an annual basis to consult with key foreign governments in every region to promote United States policies, particularly issues relating to human rights, at key international institutions such as the United Nations.

Section 634. Strengthening the Community of Democracies.

Subsection (a) expresses the sense of Congress that the Community of Democracies should establish a more formal mechanism for carrying out work between ministerial meetings, including hiring appropriate staff and establishing a headquarters. Subsection (b) authorizes the Secretary to detail personnel to any country that is a member of the Convening Group of the Community of Democracies. This provision is intended to allow the United States Government to increase the capacity of any member of the Convening Group that is involved in organizing or participating in the ministerial. The Committee encourages the Department to detail personnel to the Government of Mali to help facilitate the next ministerial scheduled for Bamako, Mali in 2007. Subsection (c) expresses the sense of Congress that regional groups within the Community of Democracies should be strengthened. Subsection (d) urges the President to assist Hungary and other European countries to establish a Democracy Transition Center, including providing grants or voluntary contributions to develop, adopt, and pursue programs and campaigns to promote the peaceful transition to democracy in non-democratic countries. It also authorizes $3,000,000 over 3 fiscal years toward the assessment of the United States for the establishment of the Democracy Transition Center.

SUBTITLE C--FUNDING FOR PROMOTION OF DEMOCRACY

Subtitle C authorizes appropriations to nongovernmental organizations and individuals working to transition nondemocratic countries to democracy.

Section 641. Policy.

This section makes it the policy of the United States to provide financial assistance to qualified nongovernmental organizations and individuals for the purpose of promoting democracy in countries categorized as nondemocratic in the most recent Annual Report on Democracy.

Section 642. Human Rights and Democracy Fund.

This section states the purpose of the Human Rights and Democracy Fund (HRDF), established pursuant to the Freedom Investment Act of 2002, and provides critical support for unique projects that promote democracy and human rights in foreign countries of strategic significance to the United States. Subsection (a) expands and enhances the purposes for which funds appropriated to the HRDF can be used. In the Committee's view, the HRDF can be a wide-ranging and influential tool for promoting democracy that can provide innovative approaches that can be picked up by mainstream assistance programs. The Committee believes that the purposes enumerated in the Freedom Investment Act of 2002 and this act are illustrative, and other uses could include: 1) publication and distribution of books, creation and distribution of media (including unbiased news programming), and educational programming about successful democratic movements; 2) translation of relevant programming into the languages spoken in nondemocratic countries; 3) promotion of pluralism within nondemocratic countries, including education programs for leaders and members of democratic movements; 4) the promotion of the rule-of-law and the protection of minorities; 5) the creation of educational programs on non-violent change for leaders and members of democratic movements; 6) creation of programs for student groups to work with citizens of nondemocratic countries to promote a transition to democracy; 7) production and distribution of materials promoting and celebrating democracy, and the equipment needed to produce such materials; 8) cultural exchanges between citizens of nondemocratic countries and the United States; 9) creation of projects to strengthen the parliaments and parliamentary staff in partly democratic countries; 10) creation of programs to ensure transparency and accountability for government revenues and expenditures; 11) creation of training programs for citizens of such countries concerning international legal obligations to support democracy and human rights; and 12) other activities relevant to promoting democracy.

Subsection (b) provides amendments to the Freedom Investment Act of 2002 creating the Human Rights and Democracy Fund to add as a purpose of that fund the support of the study of democracy, including support for debates and discussions at academic institutions regarding the values and benefits of democracy. Subsection (c) authorizes funds from the Human Rights and Democracy Fund to be made to qualified nongovernmental organizations and individuals in foreign countries notwithstanding any other provision of law. Subsection (d) requires the Assistant Secretary of State for Democracy, Human Rights, and Labor to submit at the end of each fiscal year to the appropriate Congressional Committees an annual report on the status of the Human Rights and Democracy Fund, which includes: An identification of each organization or individual receiving assistance; a summary of the activities of each recipient; an account of projects funded and outside contributions received; and a balance sheet of income and outlays. Subsection (e) authorizes appropriations to the Human Rights and Democracy Fund of $50,000,000 for fiscal year 2006 and $60,000,000 for fiscal year 2007.

SUBTITLE D--PRESIDENTIAL ACTIONS

This part of Title VI authorizes the President to take significant actions against countries designated as nondemocratic in the most recent Annual Report on Democracy.

Section 651. Investigation of Violations of International Humanitarian Law.

This section requires the President to collect information regarding incidents that may constitute crimes against humanity and report annually to the appropriate Congressional Committees any information collected. It requires that the President consider what actions he can take to hold such individuals accountable.

Section 652. Presidential Communications.

Subsection (a) contains congressional findings that direct communications from the President to citizens in nondemocratic countries are extremely beneficial in demonstrating that the United States supports such citizens. Subsection (b) expresses the sense of Congress that, from time to time, the President should broadcast a message to the citizens of countries categorized as nondemocratic in the most recent Annual Report on Democracy, to express the support of the United States for citizens promoting democracy and to encourage leaders from other democratic countries to do the same.

TITLE VII. STRATEGIC EXPORT CONTROL AND SECURITY ASSISTANCE ACT OF 2005

SUBTITLE A--GENERAL PROVISIONS

Section 701. Short Title.

This section provides that Title VII may be cited as the `Strategic Export Control and Security Assistance Act of 2005.'

Section 702. Definitions.

This section sets forth certain definitions of terms commonly used throughout Title VII, terms which are generally well-established in the Arms Export Control Act, the Export Administration Act or the regulations implementing these respective statutes (i.e., the Department of State's International Traffic in Arms Regulations or the Department of Commerce's Export Administration Regulations).

Section 703. Declaration of Policy.

This section sets forth several policy goals with respect to United States strategic export controls: The need for a comprehensive review of the United States strategic export controls (i.e., arms and dual-use) to ensure they are properly updated and oriented toward the global war on terrorism and other threats to United States security; the need for reliable and efficient service to the United States business community in support of its legitimate exports to United States friends and allies; and the need to resolve overlapping and duplicative functions among the responsible agencies, such that they are properly integrated with one another or consolidated, where appropriate.

SUBTITLE B--REVISING AND STRENGTHENING STRATEGIC EXPORT CONTROL POLICIES

Section 711. Amendments to the State Department Basic Authorities Act of 1956.

This section amends Section 1(b)(2) of the State Department Basic Authorities Act of 1956 in three ways. The first is to specify certain responsibilities of the Under Secretary for Arms Control and International Security related to coordinating United States strategic export control policy and chairing the inter-agency Strategic Export Control Board which would be established under section 712 of this subtitle. Second, a position of Deputy Under Secretary for Strategic Export Control would be established in order to assist the Under Secretary (a position which is already heavily burdened with substantial national security responsibilities) in the more vigorous policy development and execution of strategic export control policy envisaged in this subtitle. A Deputy Under Secretary position will also help ensure that arms and dual-use export control policies and procedures are properly integrated with United States nonproliferation and counterterrorism policy, and that the Department of State has the necessary senior positions on a par with the Department of Defense (which already has a Deputy Under Secretary position essentially dedicated to export control matters) and the Department of Commerce (which has long had Under Secretary and Deputy Under Secretary positions dedicated to export control). Third, the use of defense trade registration fees would be authorized to offset costs associated with the work of the Strategic Export Control Board.

Section 712. Strategic Export Control Board.

This section establishes a Strategic Export Control Board under the chairmanship of the Department of State's Under Secretary for Arms Control and International Security. The Board would be comprised of representatives of other Departments having export control policy or licensing responsibilities (such as Defense and Commerce) or related duties and jurisdiction for enforcement matters (such as the intelligence community, and the Departments of Justice and Homeland Security). Other agencies would also participate, as deemed appropriate.

Following considerable review of various export control issues in the 108th Congress, and in the wake of two highly critical reports by the Government Accountability Office, the Committee is concerned that the United States Government system for strategic export controls is, in fact, no longer a `system' in the sense of various components integrated and interacting with one another harmoniously for a common purpose. The Committee is persuaded that the policy declarations set forth in section 703, along with a senior level re-examination, rationalization and, where appropriate, reordering of the programs and priorities which comprise this system--several of which are noted in section 712(b)--now need to move front and center in the Executive Branch's approach to strategic export control policy development and execution. The Committee is seeking to establish, at an early date, a high degree of confidence that important United States interests with respect to sensitive exports are being safeguarded in the global war on terrorism and that this area of national security policy is being thoughtfully and fully integrated into United States counterterrorism and nonproliferation policy.

Comprehensive Review of Threats. The Committee believes there needs to be a top-to-bottom review of current and future threats to the security of U.S. weapons and related technology that are sold or transferred to foreign persons. The Chairman and Ranking Member of the Committee have repeatedly raised doubts about the wisdom of policies and initiatives to relax controls over these items. These policies were put in place before 9/11. Many of these concerns were detailed in the Committee's May 1, 2004, report, `U.S. Weapons Technology at Risk: The State Department's Proposal to Relax Arms Export Controls to Other Countries.' The Committee remains extremely dubious of State Department proposals to exempt many terrorist weapons of choice, such as shoulder-fired missiles and military explosives, from U.S. Government export license requirements. The Committee is similarly concerned with State Department proposals to decontrol certain military aircraft and the supply of parts for those aircraft, particularly in light of strong objections from United States law enforcement agencies, as documented in GAO's report, `Arms Export Control System in the Post-9/11 Environment' (February 16, 2005, GAO-05-234). The Committee believes such proposals will only impair the U.S. Government's ability to respond to current and future threats to United States national security. In this respect, the Committee has also noted the report of the National Intelligence Council's 2020 Project, `Mapping the Global Future,' December 2004, which foresees, in part, the possibility that the terrorist threat will become increasingly decentralized whereby training materials, targeting guidance, and weapons knowledge will increasingly become virtual or online; most terrorist attacks will continue to primarily employ conventional weapons; terrorists will likely move up the technology ladder to employ advanced explosives and unmanned aerial vehicles; terrorist use of biological agents is likely, and the range of options will grow; and terrorists will try to acquire and develop the capabilities to conduct cyber attacks for the purpose of causing physical damage to computer systems that control critical industrial processes. The Committee has noted additionally that, in contrast to virtually every other area of the Executive Branch concerned with national security policy--intelligence reform, nonproliferation policy, consolidation of homeland security functions, transformation of the armed forces, etc- there has not been any significant change to United States strategic export control policies and programs since 9/11. At the request of the Chairman of the Committee, the Government Accountability Office (GAO) conducted an extensive analysis of the status of the State-administered arms export control system since 9/11. GAO concluded that: (1) the Department of State has not made significant changes to the arms export control system since the terrorist attacks of September 2001, based on a view--unsubstantiated by any prior examination by the State Department--that such changes are not needed; and (2) the Department of State's view is not based on any systematic assessment of the effectiveness of controls. (`Arms Export Control Vulnerabilities and Inefficiencies in the Post-9/11 Security Environment,' April 7, 2005, GAO-05-468R).

Resolving Vulnerabilities. While the Department of State has not conducted any systematic assessment of its controls, GAO has, documenting numerous vulnerabilities, risks and inefficiencies. GAO's findings on this matter are summarized in a second report to the Chairman of the Committee, dated April 7, 2005, `Arms Export Control Vulnerabilities and Inefficiencies in the Post-9/11 Security Environment' (GAO-05-468R). The Committee is concerned that the scale of vulnerabilities identified by GAO appears to implicate numerous critical areas of United States strategic export controls, including: (a) a lack of clear jurisdiction, transparency and improper decisions regarding jurisdiction in sensitive areas, such as missile and night vision technology, creating risks that weapons technology may be exported without United States Government review and control; (b) weaknesses in the Executive Branch's ability to confirm receipt and proper use of weapons exported through the Foreign Military Sales program (`Actions Needed to Provide Better Control over Exported Defense Articles' GAO 03-599), a June 2003 report to the Chairman of the Committee which has not been made publicly available due to Executive Branch concerns that its disclosure could adversely affect U.S. national security interests; (c) continued emphasis on license exemptions and other streamlining measures, although unlicensed exports are more easily diverted to unlawful use, complicate investigations, hamper prosecutions and, for these reasons, are generally opposed by United States law enforcement officials; and (d) failure of the pre-9/11 streamlining initiatives on their own terms to result in any process improvements, as reflected in (1) substantial rises in processing times for legitimate exports since 2003; and (2) unacceptable delays in processing urgent exports in support of United States-led coalition operations in Iraq and Afghanistan.

U.S. Military Technological Superiority. The Committee notes that the first duty of the United States system for strategic export controls is to ensure the current and future military superiority of United States Armed Forces. The Committee is concerned with the potential implications of various findings of GAO indicating that consistent standards and safeguards are not comprehensively applied with respect to technology critical to United States military superiority, such as night vision, missiles, low observable/counter low observable and other technologies. The Committee believes the Board must establish a high level of confidence in the procedures and safeguards related to export of such technology, as identified by the Secretary of Defense. The Committee also believes the United States should develop an aggressive strategy for the use of new and emerging technologies, such as tamper-resistant security software, anti-tamper technologies for hardware, and new `tagging' and monitoring technologies that can help provide increased confidence relative to advanced weapons technologies.

Information Assurance Standards. The Committee is concerned that the responsible agencies have not provided the necessary guidance to United States defense firms or to United States friends and allies concerning an adequate level of protection for Internet-based networks, such as virtual private networks, which are increasingly utilized as the medium for a wide range of technical interactions between U.S. defense firms and their foreign partners, including for the transfer of design information about future U.S. weapons systems still in development. The Committee notes GAO's findings of numerous violations associated with at least one major U.S. R&D program, including violations related to potentially very sensitive areas, such as Low Observable/Counter Low Observable technology (GAO-05-234).

Delivery Verification and Confirmation. The Committee is concerned that the maintenance by the Departments of State, Defense and Commerce of separate, uncoordinated end-use monitoring programs, which only cover a small fraction of all weapons and related technology exported from the United States each year, are not taking full advantage of technological advances which many private carriers and the United States Postal Service have established to provide worldwide delivery confirmation of their shipments, in most instances, within 48 hours. The Committee believes the Board should explore a partnership with private industry and with United States friends and allies to establish a global Internet-based system for sensitive trade that could enhance confidence for the majority of shipments and help deter and detect attempts to divert sensitive shipments to unauthorized persons and countries.

Standards of Service for United States Business. The Committee agrees with the view expressed by the Committee on Appropriations in House Report 109-118 concerning the Science, State, Justice, Commerce and Related Agencies Appropriations Bill, Fiscal Year 2006, that American industry is being hampered in the international marketplace by the lack of a clear-cut, well-understood and responsive export control policy. Moreover, the Committee is concerned that the United States cannot sustain the necessary commitments and support from United States business organizations for a stringent system of export controls over weapons and related technology if their interests in helping to meet the defense needs of United States friends and allies are harmed through protracted delays in approving licenses for legitimate exports. In this respect, the Committee is particularly troubled by the steady and inexplicable rise in license processing times for the majority of cases at the Department of State since 2003, as documented extensively by GAO (GAO-05-234). The Committee is also concerned that this development can only undermine the United States' interest in persuading other countries to strengthen their controls over weapons and related technology and in enhancing the international system of multilateral export controls more generally.

The Committee commends the Department of Defense for the significant improvements it has made in reducing license review times in recent years, as documented by GAO, and notes that the overall 30-day goal established in section 712(b)(6) would already be within the Executive Branch's grasp had the State Department's overall processing times not deteriorated since 2003.

Organizational & Mission Responsibilities. The Committee notes that the basic organization for strategic export controls has not changed materially since the 1930s (in the case of arms export controls) and the 1950s (in the case of dual-use controls) when the United States faced different threats. The Committee takes no position at this time on whether this structure may also be the right one for the future. But, the Committee has noted numerous worrisome trends identified by GAO that raise serious questions about whether the Executive Branch system for strategic export controls is, in fact, a `system' in the commonly understood sense of various components integrated and interacting with one another harmoniously for a common purpose, and whether the current system is the one most capable of assuring United States security interests in the global war on terrorism.

Budget and Staffing Anomalies. The Committee notes GAO's findings that the Department of Commerce's FY 2003 export control budget at $66 million is nearly two and one-half times the size of that of the Department of Defense ($27 million) and nearly five times that of the Department of State ($14 million), while the licensing workloads for the three agencies are arrayed in exactly the opposite order: State (54,700), Defense (29,700), Commerce (12,500). The President's budget seeks an additional $10 million for the export control budget at the Department of Commerce in FY 2006. Similarly, the number of full-time export control employees for the three agencies appears equally disproportionate: Commerce (367); Defense (163); State (65).

Enforcement Anomalies. The Committee also notes that the Department of Commerce maintains a separate enforcement bureau comprised of approximately 100 special agents, though the Department of Homeland Security (formerly U.S. Customs Service) also has jurisdiction for dual-use violations. The Department of State has no cadre of criminal investigators for export control violations, but relies on the Department of Homeland Security for criminal investigations. There are currently no criminal or civil enforcement mechanisms for violations involving various forms of security assistance administered by the Department of Defense (other than for violations regarding classified information), which historically centered on activities carried out by officers and employees of governments, but which in recent years are increasingly carried out by private companies.

Integrated Computer Networks. Real-time access and sharing of information by the three main agencies with each other and with United States law enforcement and intelligence agencies via secure computer networks is poor in some areas and non-existent in others. The Committee is concerned that even the minimal standards established in section 1403 of Public Law 107-228 (Foreign Relations Authorization Act, Fiscal Year 2003) for secure electronic inter-agency communications remain unmet and is troubled by the Department of State's disregard of the $4,000,000 funding authorization in the same act for database automation, as documented by GAO (See GAO-05-234), even while the Department's computer modernization plans for defense trade have struggled to meet private industry expectations.

Section 712(c) would require the Comptroller General to monitor the functions of the Board in the preceding areas and others within its mandate, and to provide independent assessments to Congress on the progress the Board is making in these matters. The Committee would also expect to stay closely involved directly with the Under Secretary, the Deputy Under Secretary and other members of the Board through periodic hearings and briefings over the next several years.

Section 713. Authorization for Additional License and Compliance Officers.

This section provides that up to $13 million shall be available for each of the fiscal years 2006 and 2007 for salaries and expenses related to the assignment of additional full-time license and compliance officers in the Department of State's Directorate of Defense Trade Controls, provided that none of the funds authorized may be made available until 15 days after the submission of a written report to the Committee under section 634A(a) of the Foreign Assistance Act detailing the Department's plans and timetable for measurable improvements in the quality and timeliness of the service it provides in support of United States Armed Forces abroad and routine exports by the U.S. business community, as well as enhanced compliance measures governing arms exports that are appropriate to the global war on terrorism. The Committee is requiring submission of a report under section 634A(a) in light of the findings of the Government Accountability Office (GAO-05-234) that additional resources authorized by section 1401 of Public Law 107-228 were not dedicated to licensing officer functions as intended by that authorization. The Committee has noted that the Department of State recently increased its schedule of fees for registration, which it is permitted to retain under the State Department Basic Authorities Act to offset the costs related to certain authorized activities, such as computer modernization and other automation needs and contract support. This section, however, concerns the critical mission functions of the Directorate of Defense Trade Controls carried out by munitions license and compliance officers which should continue to be supported from appropriated funds.

SUBTITLE C--PROCEDURES RELATING TO EXPORT LICENSES

Section 721. Transparency of Jurisdictional Determinations.

This section requires the Departments of State and Commerce to publish the results of their determinations concerning export jurisdiction in the Federal Register and on their Internet Web sites. The information to be published would include a description of the item and whether it is included within the coverage of the United States Munitions List administered by the Department of State (and, if so, under which category) or, alternatively, whether the item is on the Commerce Control List (and, if so, under which export control classification number) or is otherwise subject to the Export Administration Regulations. Other information that may be appropriately protected from public disclosure on business confidentiality grounds (e.g., the name of the person making the request, customers, prices, contract values and the like) is not required to be disclosed. The Committee is concerned with the complete lack of transparency to the Congress and to the United States business community surrounding several hundred jurisdictional determinations made each year by the Department of State and several thousand such determinations made by the Department of Commerce each year. The Committee believes that the effectiveness of U.S. export controls is dependent, in the first instance, on knowledge by the exporting community of which items are controlled on which lists, and which are not controlled on either list.

Section 722. Certifications Relating to Export of Certain Defense Articles and Defense Services.

This section amends section 36(c) of the Arms Export Control Act to establish a procedure for the notification to Congress of so-called comprehensive export licenses, a relatively new licensing vehicle established by the previous administration in May 2000. Section 36 does not currently provide a basis for congressional oversight of this new form of license, which will provide the legal basis for exports involving very sensitive weapons technology, such as the Joint Strike Fighter (JSF) program. Recognizing the necessity of assuring that Congress' oversight role in this area is firmly established in law, the Department of State has also proposed an amendment to section 36, but recommends making the provision applicable to subsection (d) of that section. However, the Committee notes that section 36(d) concerns the manufacture abroad of significant military equipment, a matter that the Department previously informed Congress would not be within the scope of a comprehensive license for the JSF program. Similarly, section 27(g) of the act relating to notification of cooperative research and development agreements with other countries by the Department of Defense, such as the JSF program, provides `notwithstanding' authority with respect to the notification of associated export licenses under section 36(c), and not under section 36(d). For these reasons, the Committee believes the amendatory language is more appropriately directed to section 36(c).

Section 723. Priority for United States Military Operations.

This section directs the Department of State not to give preferential treatment in the processing of export licenses to licenses involving any defense trade `reform' initiatives over (e.g., ahead of) licenses needed for United States Armed Forces and allied forces participating in United States-led coalition operations. The extensive data analysis performed by the Government Accountability Office during its review of the Department of State's arms export control system documented: (1) protracted processing times for licenses urgently needed in support of Operation Iraqi Freedom and Operation Enduring Freedom; and (2) equivalent or, in some instances, faster processing times for relatively routine cases, such as certain `reform' initiatives related to the Defense Trade Security Initiative (DTSI) of May 2000 concerning transatlantic defense industrial cooperation. For example, in a letter to the Chairman of the Committee dated June 8, 2005, GAO has reported median processing times during fiscal year 2003 of 6 days and 7 days for exports to France and Germany, respectively, of 21 licenses involving the so-called defense capabilities initiatives (one of the DTSI initiatives), while 15 licenses for exports to Canada in support of Operation Enduring Freedom in same time period had a median processing time of 17 days, or more than twice as long. Similarly, in a June 13, 2005 letter to the Chairman of the Committee, GAO identified export licenses for various shipments involving direct support to U.S. and allied armed forces in Iraq and Afghanistan, and other allied government recipients, such as the Coalition Provisional Authority, which generally required several weeks to process and, in some cases, even longer.

Section 724. License Officer Staffing and Workload.

This section requires the Department of State to include, in the quarterly report prepared for Congress under section 36(a), information on the number of officers assigned to munitions export licensing and their workloads, permitting the Committee to monitor more closely implementation of relevant provisions in the Foreign Relations Authorization Act, Fiscal Year 2003 (Public Law 107-228). The Committee is concerned that the Department of State's processing times for munitions exports have deteriorated steadily over the past 2 years, while relevant provisions of that act intended to prevent such a development remain unimplemented nearly 3 years after enactment.

Section 725. Database of United States Military Assistance.

This section amends section 655 of the Foreign Assistance Act to require that the information on the quantities, types and value of United States Munitions List items transferred or licensed for export abroad by the United States for each foreign country, which are already available through the Internet from the Web sites of the Departments of State and Defense, should henceforth also be maintained in a database format that can be searched and queried by the general public.

Section 726. Training and Liaison for Small Businesses.

This section requires the Department of State office responsible for processing munitions export licenses to designate a coordinator for small business affairs in order to assist those small United States defense firms, which typically lack the legal and representational capabilities in Washington, DC of larger firms, in the intricacies of the State Department's export license and registration procedures.

Section 727. Commercial Communications Satellite Technical Data.

This section requires the Secretary of State to establish an exemption from export licensing in the International Traffic in Arms Regulations for certain technical data related to foreign sales marketing by United States persons of commercial communications satellites under certain conditions and on the basis of technical parameters for the exempted data to be established by the Secretary of Defense. The Committee has noted the State Department's proposal to establish such an exemption on the basis of requirements that would generally be determined by the foreign purchaser. The Committee favors flexibility in the licensing process in order to help ensure the competitiveness of United States satellite manufacturers, but believes that the responsibility for establishing technical requirements appropriately lies with the Secretary of Defense. The Committee would expect the Department of Defense to consult closely with interested United States firms in fashioning the technical parameters for such an exemption.

Section 728. Reporting Requirement for Unlicensed Exports.

This section amends section 655 of the Foreign Assistance Act to require the inclusion of information and greater transparency to Congress concerning the volume and types of defense articles being exported without a license. The Committee has noted the growing emphasis by the Department of State in recent years in the context of its export control reform agenda on the use of exemptions from export license requirements and is concerned that data about such unlicensed exports of weapons technology be reported to Congress, along with data for licensed exports already reported under section 655.

SUBTITLE D--TERRORIST-RELATED PROVISIONS AND ENFORCEMENT MATTERS

Section 731. Sensitive Technology Transfers to Foreign Persons Located Within the United States.

This section requires the Secretary of State to provide an annual report to Congress, in consultation with the Attorney General and the Secretary of Homeland Security, on certain sensitive items warranting scrutiny through the license procedure before a transfer to a foreign person may take place in the United States in order to deter illegal acquisition efforts by foreign persons for terrorist or other unlawful purposes. Henceforth, the President would require a license for any United States Munitions List items specified in that report under longstanding authority provided in section 38(g)(6) of the Arms Export Control Act. The State Department's current list of such items requiring a license under section 38(g)(6) covers only naval vessels, aircraft, satellites and technical data, and has not been revised since 9/11 to include consideration of whether this requirement should be expanded to include defense articles presenting particular threats in the war on terrorism, such as shoulder-fired missiles, military explosives, biological weapons and other dangerous items. Similarly, the President would be authorized (but not required) to impose a license requirement in the case of any sensitive dual-use items so specified. During the 108th Congress, the House agreed to a nearly identical provision applicable to the Department of State in section 1102 of H.R. 1950 (Foreign Relations Authorization Act, Fiscal Years 2004 and 2005), which was passed by a recorded vote (382-42) on July 16, 2003, but not enacted.

Section 732. Certification Concerning Exempt Weapons Transfers Along the Northern Border of the United States.

This section requires the Secretary of State to submit a written report, in consultation with the Secretary of Homeland Security, within 6 months of enactment of this act, and annually thereafter, in which two certifications are required: (1) that there is no national security risk arising from an exemption in the International Traffic in Arms Regulations (ITAR) permitting any foreign person to bring any unclassified weapons temporarily into the United States from Canada without prior United States Government review and approval through a State Department temporary import license; and (2) that the Department of State is providing the guidance necessary for Department of Homeland Security Customs and Border Protection personnel to detect and enforce unlawful use of a license exemption permitting unlicensed weapons exports to Canada.

Temporary Imports of Weapons Technology. The Department of State has responsibility for controlling the temporary import of any item on the United States Munitions List. The Committee is concerned that the Department of State's regulations (i.e., the ITAR at section 126.5(a) (22 CFR Sec. 126.5(a)) provide an unqualified exemption for any foreign person to import temporarily into the United States from Canada any unclassified weapons system, munitions or other military system or equipment. It is estimated that upward of 99 percent of all weapons controlled under ITAR are unclassified. The Committee has noted that, following the arrest of Ahmed Ressam (the so-called `millennium bomber') who entered the United States from Canada with a carload of explosives destined for targets in Los Angeles, the Department of State published an amendment to the ITAR effective May 30, 2001, (66 FR 10575) affecting permanent and temporary exports to Canada, but left unchanged those provisions in the regulations permitting unlicensed temporary weapons imports from Canada and they continue unchanged to the present day. The Chairman of the Committee drew attention to this matter on April 7, 2005, in a statement accompanying public release of GAO's report detailing weaknesses in United States weapons control policy since 9/11. The Committee expects the Secretary of State to consult with the Secretary of Homeland Security expeditiously in order to restrict use of the unlicensed temporary import exemption to those agencies of the Canadian Government, their authorized representatives and other persons having bona fide requirements in this area, and to restrict additionally the categories of weapons eligible for such license-free temporary import by excluding those presenting a particular threat to the national security interests of the United States, such as shoulder-fired missile systems and weapons of mass destruction.

Permanent and Temporary Exports of Weapons Technology. The House Committee on International Relations noted in the Committee's report of May 1, 2004, `U.S. Weapons Technology at Risk: The State Department's Proposal to Relax Arms Export Controls to Other Countries' that the exemption from license requirements for weapons transfers to Canada had spawned the establishment in that country during the 1990s of illegal arms acquisition networks by a `who's who' of rogue governments. In response to this development, the Department of State implemented a revised exemption procedure with Canadian authorities, effective May 30, 2001 (66 FR 10575). GAO conducted an assessment shortly thereafter (`Lessons to be Learned from the Country Export Exemption,' March 29, 2002, GAO-02-63) and found that the State Department had provided inconsistent answers to exporters and U.S. Customs Service officials when questions were raised about the revised exemption's use. GAO recommended that State provide guidance to U.S. Customs to ensure proper enforcement of the exemption along the northern border and to work with the Justice Department and U.S. Customs to assess lessons learned from past diversions of U.S. weapons technology through unlawful use of the exemption. However, GAO recently informed the Chairman of the Committee that, more than 3 years later, the State Department has not implemented these recommendations. GAO also pointed out in a related report (GAO-05-234), that there are currently fewer Customs and Border Patrol Personnel available for inspection of `outbound' shipments of weapons technology than there are ports of exit in the United States, due in part to the increased emphasis since 9/11 that the Department of Homeland Security has properly accorded to preventing illegal shipments into the United States. Therefore, the long awaited guidance from State on the Canadian exemption procedures has become even more urgent. The Committee expects the Secretary of State to provide the necessary guidance to the Secretary of Homeland Security on an urgent basis, and to ensure that this guidance is kept up-to-date.

Section 733. Comprehensive Nature of United States Arms Embargoes.

This section amends Section 38 of the Arms Export Control Act to require that United States Munitions List items under the State Department's jurisdiction and dual-use goods and technology subject to the Commerce Department's jurisdiction under the Export Administration Regulations may only be transferred to the military, intelligence or other security forces of a country to which the United States prohibits arms sales through issuance of an export license in which the Secretaries of Defense and State concur. A report to Congress on implementing actions would also be required within 120 days of enactment. Section 1105 of H.R. 1950 (agreed to by the House during the 108th Congress) contained a nearly identical provision. Currently, the United States prohibits arms sales to Afghanistan (except for governmental authorities), Belarus, Burma (Myanmar), China, Cote d'Ivoire, Cuba, Cyprus (except for U.N. forces and civilian end use), Democratic Republic of Congo (except for certain governmental authorities), Haiti (except for certain governmental authorities), Indonesia (except for `non-lethal' items), Iran, Iraq (except for certain governmental authorities and private security), Liberia, Libya, North Korea, Rwanda (except for governmental authorities), Somalia, Sudan, Syria, Vietnam, Yemen (except for `non-lethal' items) and Zimbabwe.

Section 734. Control of Items on Missile Technology Control Regime Annex.

This section requires an annual certification by the Secretary of State to ensure that United States missile technology export controls are clearly established and kept up-to-date. A GAO report of October 9, 2001 (GAO-02-120) documented ambiguous export control jurisdiction affecting a large portion (25 percent) of all missile-related items controlled on the Missile Technology Control Regime (`MTCR') and the continued absence of license requirements for many MTCR dual-use items when exported to Canada. The Department of Commerce subsequently published a regulation to clarify its jurisdiction over certain MTCR items, while a longer term solution for all missile technology was to emerge in the context of an ongoing review of the United States Munitions List. More than 4 years later, no such solution has emerged and it appears that the primary focus of the Department of State's Munitions List review during this period has not been missile technology, but on pruning the Munitions List in other areas. Similarly, Commerce has yet to impose a license requirement on MTCR exports to Canada and, instead, has recently published a second notice in the past 4 years of its intention to do so. During the 108th Congress the House agreed to a nearly identical version of this provision in section 1201 of H.R. 1950 supra.

Section 735. Unlawful Use of United States Defense Articles.

This section amends section 3 of the Arms Export Control Act in two ways: (1) any unauthorized use of a United States defense article by a foreign person to conduct a transaction with a country designated as a state sponsor of international terrorism would necessitate a report to Congress; and (2) the requirement for a report to Congress on unauthorized re-transfers by foreign persons of United States defense articles would be expanded to include articles licensed under section 38 of the act (in addition to those sold by the U.S. Government under chapter 2 of the act). Section 1101 of H.R. 1950 agreed to by the House during the 108th Congress, contained a nearly identical provision.

SUBTITLE E--STRENGTHENING UNITED STATES MISSILE NONPROLIFERATION LAW

Section 741. Probationary Period for Foreign Persons.

This section requires that any foreign person, entity or government that has been sanctioned under U.S. law for missile transfer violations, after the period of formal sanctions expire, will be subject to a probationary period of special monitoring for granting dual-use licenses to that foreign person, entity or government for a period of 3 years, unless the President informs Congress that the person, entity or government has verifiably ceased all such activity and instituted a program of transparency to verify that fact. This is necessary to increase the costs of engaging in missile trade. When the existing 2-year sanctions expire, the foreign person is again eligible for U.S. contracts without any need to demonstrate changed behavior. Placing such formerly-sanctioned persons on a `Watch List' (the Entity List of the EAR), as well as increasing the duration of formal sanctions, places foreign persons and governments on notice that there is a continuing cost to missile trade through increased scrutiny of U.S. exports, as well as the continuing stigma of having trafficked in ballistic missiles.

Section 742. Strengthening United States Missile Proliferation Sanctions on Foreign Persons.

This section increases the period of U.S. missile sanctions from 2 to 4 years.

Section 743. Comprehensive United States Missile Proliferation Sanctions on All Responsible Foreign Persons.

This section expands the applicability of U.S. missile sanctions to all responsible foreign persons, including responsible governmental entities. This comprehensiveness is necessary to deter governments from using shell or `cut-out' companies to engage in the actual trade and transfer of missiles while avoid becoming vulnerable to U.S. sanctions.

SUBTITLE F--SECURITY ASSISTANCE AND RELATED PROVISIONS

Section 751. Authority to Transfer Naval Vessels to Certain Foreign Countries.

This section authorizes the transfer of eight decommissioned United States naval vessels to other countries: Five by grant (Greece, Egypt (two), Pakistan, and Turkey); and three by sale (India, Greece, and Turkey). The Congress previously authorized the transfer of two of these vessels, the O'BANNON (DD 987) and the FLETCHER (DD 992), to Chile under section 1014 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375). However, the arrangements concerning those transfers to Chile did not come to fruition.

Section 752. Transfer of Obsolete and Surplus Items from Korean War Reserves Stockpiles and Removal or Disposal of Remaining Items.

This section provides a 5-year authorization for the Secretary of Defense to transfer to the Republic of Korea certain obsolete or surplus items in the inventory of the Department of Defense on the basis of negotiated concessions and advance notification to the Committee describing the items to be transferred and the concessions that have been negotiated.

Section 753. Extension of Pakistan Waivers.

This section extends through fiscal year 2007 the President's authority to exercise waivers of foreign assistance restrictions regarding Pakistan. An act to authorize the President to exercise waivers of foreign assistance restrictions with respect to Pakistan was approved October 27, 2001 (Public Law 107-57) and covered the period through September 30, 2003. Section 2213 of the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-106) amended Public Law 107-57 to authorize such waivers through fiscal year 2004. Section 7103 of the Intelligence Reform and Terrorism Prevention Act of 2004 (Public Law 108-458) further amended Public Law 107-57 to extend the President's waiver authority to fiscal years 2005 and 2006.

Section 754. Reporting Requirement for Foreign Military Training.

This section changes the date for submission of the annual military training report to Congress required by section 656 of the Foreign Assistance Act of 1961 from January 31 to March 1 in order to conform the deadline for this reporting requirement to a related report on foreign military training required under section 564 of the Kenneth M. Ludden Foreign Operations, Export Financing, and Related Appropriations Act, 2002 (Public Law 107-115).

Section 755. Certain Services Provided by the United States in Connection with Foreign Military Sales.

This section amends section 21 of the Arms Export Control Act to add Australia, New Zealand, Japan and Israel to the countries eligible to receive quality assurance and cataloging services on a reciprocal basis, without charge. Under existing law such services are limited to the member states of the North Atlantic Treaty Organization.

Section 756. Maritime Interdiction Patrol Boats for Mozambique.

This section authorizes $1 million from amounts appropriated in fiscal year 2006 to provide the Government of Mozambique with four excess coastal patrol boats. These boats are to be used for patrol and interdiction purposes and to help prevent the transshipment of drugs into Mozambique. The authorized funds may also be used for the refurbishment, training and related costs associated with the boats.

Section 757. Reimbursement for International Military Education and Training.

This section amends section 541 of the Foreign Assistance Act of 1961 to provide, in the case of countries such as Israel using United States Foreign Military Financing to purchase United States military education and training at rates which are comparable to the rates assessed countries receiving International Military Education Training grant assistance.

TITLE VIII--NUCLEAR BLACK MARKET ELIMINATION ACT

The revelation in 2004 of a widespread nuclear black market network exposed a major breach in the global nuclear nonproliferation regime. Over the past decade, members of this network sold equipment used in the production of nuclear material to Libya, Iran, and North Korea, and nuclear weapon designs to Libya and perhaps others. The extent of this network's activities are not yet fully known, but it is clear that it, or a similar operation, could provide equipment, materials and weapon designs not only to anti-Western regimes, but also to nongovernmental actors, such as terrorist groups.

The emergence of private nuclear supplier networks poses a grave threat to U.S. and international security and could severely undermine the entire edifice of the global nuclear nonproliferation regime. Global nonproliferation policies, treaties, and agreements have historically been based on the assumption that nuclear weapons-relevant technology, equipment and materials could be developed and spread only by those governments which possess the technological, scientific, material and economic resources needed to develop or acquire a nuclear capability. It has now been demonstrated that private suppliers in other countries, with or without the approval or acquiescence of their governments, can provide countries such as Iran with the means to accelerate their nuclear weapons development capability.

This threat will not vanish with the dismantlement of the existing nuclear black-market network. It has already demonstrated that nongovernmental actors can supply a wide range of nuclear equipment and technology at enormous profit to themselves. Unless the United States and the international community erect effective barriers and raise the costs of engaging in such proliferation activity, others will undoubtedly seek to profit from similar activities.

The U.S. is attempting to dismantle this network, but it lacks many of the tools needed to discover, eliminate and deter future nuclear black market activities. Title VII, `The Nuclear Black Market Elimination Act,' provides the President with these tools, while also increasing congressional oversight.

SUBTITLE A--SANCTIONS FOR TRANSFERS OF NUCLEAR ENRICHMENT, REPROCESSING, AND WEAPONS TECHNOLOGY, EQUIPMENT AND MATERIALS INVOLVING FOREIGN PERSONS AND TERRORISTS.

Section 811. Authority to Impose Sanctions on Foreign Persons.

This section authorizes the President to prohibit certain U.S. transactions with any foreign person, company or group that provides nuclear material enrichment or reprocessing equipment, materials, or technology to a non-nuclear weapon state that does not already possess functioning enrichment or reprocessing facilities and does not have in force an Additional Protocol; or is developing, manufacturing or seeking to acquire a nuclear explosive device. Section 811's authority also applies to prohibitions regarding foreign entities that transfer weapons-related equipment or materials to a non-nuclear state or foreign person.

This section helps to institute the President's proposals put forth in a speech in February 2004, in which he proposed halting trade in equipment, materials and technology for facilities to enrich uranium and for the production of plutonium (known as reprocessing) to countries that do not already possess such facilities. The global nuclear black market network, revealed just a month earlier, had provided such technology and even equipment. The President also called for countries to adhere to the Additional Protocol to the Safeguards Agreement between the IAEA and its member states (Additional Protocol) for enhanced safeguard inspections with the IAEA, which gives the Agency greatly enhanced authority to inspect and investigate a country's compliance with its commitments under the Treaty on the Nonproliferation of Nuclear Weapons (NPT).

Section 812. Presidential Notification on Activities of Foreign Persons.

This section directs the President to report annually to Congress on the activities of any foreign person described in Section 811. Even if the President decides not to implement a sanction based on the foreign person's activity, Congress will be kept informed regarding those activities. This provision will assist Congress in its oversight role concerning an Administration's conduct of nonproliferation policy with regard to illicit nuclear proliferation networks. This report will also provide a means for Congress to assess whether the countries in which those foreign persons are located are taking effective action to prevent such activity.

SUBTITLE B--FURTHER ACTIONS AGAINST CORPORATIONS ASSOCIATED WITH SANCTIONED FOREIGN PERSONS

Section 821. Findings.

This section declares that since many foreign persons and corporations are motivated by profit to engage in proliferation activities, the U.S. must seek to punish them financially for their actions, including those undertaken by subsidiaries.

Section 822. Campaign by United States Government Officials.

This section directs the President to instruct all agencies to make every effort in their interactions with foreign government and business officials to persuade them not to engage in any business transaction with a foreign person sanctioned under Section 811 above, including any parent or subsidiary of the sanctioned entity, for the duration of the sanctions period.

Section 822 does not authorize the imposition of actual sanctions against the parent of subsidiary entities of the sanctioned foreign person. It does direct the U.S. to use the full persuasive powers of the United States Government to convince other governments to commercially punish any parent or subsidiary of a sanctioned foreign entity engaging in proliferation activity as a means of achieving greater oversight and control of the actions of such entities.

Section 823. Coordination.

This section requires the Secretary of State to coordinate U.S. actions outlined in Section 822.

Section 824. Report.

This section requires an annual report by the Secretary of State to Congress on the actions taken under Section 822.

SUBTITLE C--INCENTIVES FOR PROLIFERATION INTERDICTION COOPERATION

Section 831. Authority to Provide Assistance to Cooperative Countries.

This section authorizes the President to provide, on such terms as the President considers appropriate, assistance under section 832 to any country that cooperates with the United States and other allied countries to prevent the transport and transshipment of items of proliferation concern in its national territory or airspace or in vessels under its control or registry.

Section 832. Types of Assistance.

This section authorizes assistance Section 831 to include Foreign Military Financing, Economic Support Funds, and draw down authority under the Arms Export Control and Foreign Assistance Acts.

Section 833. Congressional Notification.

This section requires a 30-day notification in advance of provision of such assistance, in accordance with the procedures applicable to reprogramming notifications under section 634A(a) of the Foreign Assistance Act.

Section 834. Limitation.

This section states that assistance to a country under section 831 is limited to 3 fiscal years.

Section 835. Use of Assistance.

This section states that assistance provided under this Subtitle shall be used to enhance the capability of the recipient country to interdict items of proliferation concern in its national territory or airspace.

Section 836. Limitation on Ship or Aircraft Transfers to Uncooperative Countries.

This section limits the transfer of excess military ships or aircraft to a country that has not agreed that it will support and assist efforts by the United States to interdict items of proliferation concern until 30 days after the date on which the President has provided notice to Congress in accordance with the procedures applicable to reprogramming notifications under section 634A(a) of the Foreign Assistance.

This section also provides an incentive to countries that are eligible to receive excess U.S. military vessels and aircraft to support U.S. efforts to interdict items of proliferation concern, such as through the Proliferation Security Initiative (PSI). To ensure the President sufficient flexibility in seeking support from other countries for the PSI and related activities, this section does not require the conclusion of a formal bilateral instrument, nor does it set requirements for the form that a country's assent to support and assist U.S. efforts must take.

SUBTITLE D--ROLLBACK OF NUCLEAR PROLIFERATION NETWORKS

Section 841. Nonproliferation as a Condition of United States Assistance.

This section declares U.S. policy to provide foreign assistance only to countries that: (1) are not cooperating with any state, group or individual involved in efforts promoting nuclear terrorism; and (2) are fully and completely cooperating with the United States in its efforts to eliminate nuclear black market networks or activities.

Section 842. Report on Identification of Nuclear Proliferation Network Host Countries.

This section requires an annual report that identifies any country in which manufacturing, brokering, shipment, transshipment, or other activity occurred in connection with the transactions of existing nuclear proliferation networks and illicit activities. It also requires the report to describe the extent to which such country is, in the opinion of the President, fully cooperating with the United States in its efforts to eliminate this network and any other nuclear proliferation networks or activities.

Section 843. Suspension of Arms Sales Licenses and Deliveries to Nuclear Proliferation Network Host Countries.

This section temporarily suspends arms sales, and makes available a waiver for such suspension, for countries that the President has identified in the annual report where nuclear black market activities have occurred. Its purpose is to ensure that these countries have an incentive to cooperate with the U.S. to eliminate such activities. Given the grave threat posed to U.S. and global security by these activities, suspending U.S. arms sales until such cooperation is forthcoming is a reasonable and measured incentive for encouraging such cooperation. This provision does not focus on any one country or any existing network, but envisions application globally and to future nuclear black market networks and activities. Given the Administration's testimony to Congress regarding the cooperation it is receiving from countries in which activities related to an existing nuclear black market network have taken place, it is assumed that the President will expeditiously make the certifications required under this section.

This section requires the temporary suspension of licenses for U.S. arms sales to any country identified in the report under Section 842 until the President certifies to Congress that the country has fully investigated or is fully investigating the activities of any person or entity involved in nuclear proliferation activities within its territory; has taken or is taking effective steps to permanently halt similar illicit nuclear proliferation or acquisition activities; has been,or is fully cooperating with the United States and other appropriate international organizations in investigating and eliminating nuclear proliferation networks and activities; and has enacted, or is enacting, new laws, regulations or practices to prevent future such activities.

This section also allows the President to waive this suspension of licenses if the President certifies that the waiver is important to the national security of the United States.

SUBTITLE E--GENERAL PROVISIONS

Section 851. Definitions.

This section defines various terms used in this title.

TITLE IX--FOREIGN ASSISTANCE PROVISIONS

SUBTITLE A--FOREIGN ASSISTANCE ACT OF 1961 AND RELATED PROVISIONS

CHAPTER I--PART I OF THE FOREIGN ASSISTANCE ACT OF 1961

Section 901. Assistance to Establish Centers for the Treatment of Obstetric Fistula in Developing Countries.

This section authorizes appropriations of $5 million for each of fiscal years 2006 and FY 2007 in order to provide for treatment of obstetric fistula in developing countries.

Rape, other physical abuse or untreated, obstructed labor can lead to a fistula, or hole, between a woman's birth passage and one or more of her internal organs. An estimated two million women globally suffer from this condition, which is responsible for about 8% of the half million worldwide maternal deaths annually. Approximately 50,000 to 100,000 new cases of fistula are added each year.

USAID has concentrated on prevention of fistula through a variety of initiatives that include increased availability to emergency care for fistula victims and increased attendance of skilled medical personnel at delivery.

The provision authorizes the President to establish not less than twelve centers for the treatment of obstetric fistula in developing countries. Each center shall provide, to the maximum extent possible, surgery to repair obstetric fistula in women who do not have the resources to pay for such surgery and after care, transportation to and from the center for women in need, provide food and shelter as needed to those women, engage in activities to reduce the incidence of obstetric fistula, including seminars and dissemination of brochures, pamphlets, posters, and other educational material.

Section 902. Support for Small and Medium Enterprises in Sub-Saharan Africa.

This section authorizes the Overseas Private Investment Corporation (OPIC) to provide insurance and guarantees to financial institutions to expand investment and lending opportunities to small and medium enterprises owned substantially by Africans. It further provides for technical support programs for African financial institutions to improve the quality of their management, create effective credit risk management systems and effective credit risk management.

Section 903. Assistance to Support Democracy in Zimbabwe.

This section authorizes $12 million for each of fiscal years 2006 and 2007 in Development Assistance and Economic Support Funds for promoting democracy in Zimbabwe, in accordance with the provisions of the Zimbabwe Democracy and Economic Recovery Act of 2001.

Since 2001, the situation in Zimbabwe has deteriorated. A recent government crackdown has resulted in the destruction of scores of small businesses, more than 22,000 arrests, and the displacement of tens of thousands of Zimbabweans during their winter.

The funds will support the fostering of free and fair electoral processes in Zimbabwe, capacity building for civil society organizations to provide information on the political process to citizens, training for political parties, poll watcher training, and the reestablishment of independent media through overseas broadcasts and Internet sites in Zimbabwe, and provides for the support and promotion of human rights groups.

Section 904. Restrictions on United States Voluntary Contributions to the United Nations Development Program.

This section provides that of the amounts made available for each of the fiscal years 2006 and 2007 for the U.S. voluntary contribution to the United Nations Development Program (UNDP), an amount equal to the amount UNDP will spend in Burma during each fiscal year shall be withheld unless during such fiscal year the Secretary of State submits to the appropriate Congressional Committees a certification that UNDP programs in Burma: (1) are focused on eliminating human suffering and addressing the needs of the poor; (2) are undertaken only through international or private voluntary organizations; (3) provide no benefit, directly or indirectly, to the ruling military junta; and (4) are carried out only after consultation with the leadership of Burma's democratic opposition. In determining whether UNDP assistance provides financial, political or military benefit to the SPDC or any agency or entity of, or affiliated with the SPDC, the Secretary shall ensure that no goods, services, or per diems are provided. In addition, not later than 180 days after the enactment of this act and every 180 days thereafter during fiscal years 2006 and 2007, the Secretary of State shall submit to the appropriate Congressional Committees a report on UNDP programs and activities in Burma.

Section 905. Assistance for the Office of the Police Ombudsman for Northern Ireland.

This section authorizes $100,000 for each of fiscal years 2006 and 2007 appropriated under the `International Narcotics Control and Law Enforcement' account for specialized investigative training and advisory support for the Office of the Police Ombudsman for Northern Ireland for the development and strengthening of its institutional capacity and investigations of human rights abuses by the police. The Office of the Police Ombudsman was created by the Good Friday Agreement as an independent impartial police complaints system for the people of all communities in Northern Ireland. The Ombudsman's Offices are not part of the Police Service of Northern Ireland, and under the leadership of its independent Ombudsman, Nuala O'Loane, the office has been a catalyst for police reform. The Police Ombudsman's office has been recognized as an effective mechanism for holding the police in Northern Ireland accountable and helping people develop some confidence in a policing service that has faced credible charges of collusion. In 1999, Congress adopted legislation (P.L. 106-113, Division B) that required the U.S. to vet, for human rights abuses, any members of the police force of Northern Ireland who were selected to participate in exchange and training programs in the U.S.

This provision builds on that program and seeks to specifically enhance training of those in Northern Ireland who are charged with holding the police accountable and ensuring that policing is carried out in accordance with human rights standards.

Section 906. Report on Foreign Law Enforcement Training and Assistance.

This section requires that the annual International Narcotics Control Strategy Report of the Department of State include a new section on law enforcement training and assistance around the world which is being conducted by major U.S. agencies, including the Department of State, the Department of Defense, the Department of Justice, and the United States Agency for International Development. The new section is to be divided into three parts--training, other forms of assistance, and country-specific information. Each part will report, at least, on numbers of foreign law enforcement personnel receiving assistance, types of assistance, and particulars of funding sources for the assistance.

Section 907. Assistance for Disaster Mitigation Efforts.

This section expresses a sense of Congress that the Secretary of State, in consultation with heads of other agencies and departments of the United States Government, should develop an initiative to encourage the use of disaster mitigation techniques, including building in safer locations, constructing sturdier dwellings, enforcing sound building codes and practices, and protecting natural ecosystems, by foreign governments in regions that are considered especially vulnerable to natural disasters. It also amends the Foreign Assistance Act of 1961 to allow U.S. disaster assistance to be used for disaster mitigation.

Section 908. Assistance to Promote Democracy in Belarus.

This section authorizes $12 million for each of fiscal years 2006 and 2007 from Freedom Support Act funds for the promotion of democracy in Belarus. These democratic reforms include a free and fair electoral process, the development of political parties and nongovernmental organizations promoting democracy and respect for human rights and the rule of law, independent media, and international exchanges and training programs for leaders and members of the democratic forces that foster civil society.

Belarus receives less Freedom Support Act (FSA) assistance than any other country besides Turkmenistan. U.S. support for the struggling forces of democracy has diminished over the course of the last few years, from $9.04 million in FSA funding in fiscal year 2003, to $8 million in fiscal year 2004, to an estimated $6.5 million in fiscal year 2005 and $7 million in the President's Budget Request for fiscal year 2006. Alexander Lukashenka's dictatorial regime maintains a repressive form of governance, and it is vital for the United States to offer more funding to strengthen democratic forces within Belarus prior to the upcoming planned presidential elections in 2006. Lukashenka continues to exercise a monopoly over the information space, and repression against members of democratic opposition parties, independent media and nongovernmental organizations is growing. Secretary of State Rice designated Belarus one of six `outposts of tyranny' as a principal focal point for the promotion of democracy.

Section 909. Assistance for Maternal and Prenatal Care for Certain Individuals of Belarus and Ukraine Involved in the Cleanup of the Chornobyl Disaster.

This section authorizes such sums as may be necessary from Freedom Support Act funds for each of fiscal years 2006 and 2007 to improve maternal and prenatal care for the victims in Belarus and Ukraine involved in the cleanup of the region affected by the Chornobyl nuclear disaster.

Nearly 20 years after the Chornobyl disaster, there is a large increase in chromosome damage and birth defects now affecting the new generation in Belarus and Ukraine. A number of health studies have indicated spikes in chromosome damage as high as seven-fold. This is particularly the case among the more than 600,000 emergency workers, firefighters, miners and construction workers who were exposed to exceedingly high levels of radiation during the 1986 cleanup effort. Parents in the affected region are still being exposed to radioactive fallout as well.

With respect to certain types of birth defects (e.g. respiratory distress, anemia, severe cleft palates and facial deformities, missing digits or limbs, damaged, missing or malformed critical organs and certain types of telltale cardiac defects linked to radiation exposure), pregnant mothers can be monitored and prenatal care can bolster the mother's ability to carry the child to term, and the child's ability to increase in weight. Training of medical personnel helps improve prenatal care, and for congenital heart defects, the condition can be detected in utero, monitored and preparations made for surgical intervention after birth.

In this fragile transition period, it is important for the United States to foster goodwill towards the people of Belarus and Ukraine. Furthermore, it is important to demonstrate support for the new democratic government in Ukraine not only with economic and political support, but also by meeting tangible social and health needs.

Section 910. Assistance to Address Non-infectious Diseases in Foreign Countries.

This section makes a statement of policy that medical evidence indicates that non-infectious diseases such as heart disease and obesity are on the rise worldwide, and U.S. AID funding does not address this situation. The section authorizes assistance to address non-infectious diseases in foreign countries.

CHAPTER 2--PART II OF THE FOREIGN ASSISTANCE ACT OF 1961

Section 921. Economic Support Fund Assistance for Egypt.

Subsection (a) consists of congressional `findings.' Congress finds, that since 1979 the United States has provided more than $32 billion in military assistance to Egypt and more than $28 billion in economic assistance, and that applying the concept similar to a `Millennium Challenge' compact to the Egyptian aid program would reinvigorate the program and give more Egyptians a stake in the proper planning and execution of assistance programs.

Subsection (b) consists of a `statement of policy' that includes an acknowledgement that threats to Egyptian stability derive far more from domestic problems than from external dangers, and that external threats to Egyptian stability are, in fact, minimal. The subsection also affirms as policy the provision of non-military assistance to Egypt that results in actual, sustainable, and, to the extent possible, measurable outcomes regarding economic growth, poverty reduction, humanitarian conditions, health, education, and political reform.

Subsection (c) provides for significant reform in Egypt's economic assistance program by combining, beginning in FY 2007, all non-military aid under the Economic Support Fund into a program similar in procedure to the `Millennium Challenge Account.' Egypt will have the opportunity to design a program, with measurable goals, to help achieve lasting economic growth and poverty reduction and substantially strengthened democratic institutions and individual freedoms, and to present that program to the President of the U.S. for his approval. After the President approves the program, it is anticipated that Egypt will have far greater say in the implementation of the program than is currently the case.

The recent agreement under which the United States agreed to provide a significant amount of cash assistance to Egypt and Egypt agreed to undertake policy reforms in the financial sector is exempted from the provision described above for the life of the agreement (through 2008), although, beginning with fiscal year 2007. Such cash may not be provided until Egypt has concluded an assistance agreement pursuant to this subsection.

Subsection (d) reduces Egypt's Foreign Military Financing (FMF) assistance over the next 3 fiscal years by $40 million annually, by providing that funds over the following amounts that may be appropriated to the FMF program be transferred to the ESF program: $1.26 billion in FY06, $1.22 billion in FY07, and $1.18 billion in FY08. The Committee expects that ESF allocations for Egypt may continue to be reduced, but that funds actually available for economic assistance, because of the transfer provided for here, will continue to total $530 million annually.

This approach reverses the pattern of aid to Egypt for the past 6 years in which military assistance has been held steady at roughly $1.3 billion per year, while ESF has been diminished by roughly $40 million per year. In effect, overall aid for Egypt presumably would continue to be diminished by only $40 million per year for the next 3 years, but the deduction would be taken from military, rather than economic, assistance.

This provision is inspired by the perception that the primary threat to Egyptian stability derives from domestic deficiencies--particularly in education, health, commerce, human rights, and governance--rather than external dangers. Egypt is at peace with all its neighbors. Internally, however, it faces many challenges. For example, per capita GDP is under $1,300. A majority of women over the age of 15 are illiterate. The only recent democratic reform of significance is one that, although allowing for first-ever multi-party Presidential elections, is being implemented in a manner that virtually guarantees President Mubarak's re-election. This provision is intended to begin the process of re-directing United States assistance toward the area where Egypt most needs it--that is, Egypt's domestic situation.

Americans value military cooperation with Egypt, and for this reason assistance has been, is, and will continue to be provided at very generous levels. However, issues related to Egypt's internal stability--such as the Egyptian economy's continued relative stagnation and the concomitant need for reform--vastly outweighs in importance the current needs of the military. Currently about two-thirds of United States military assistance to Egypt is used to sustain and modernize Egypt's existing weapons systems. Only with economic growth can Egypt hope to be able to support a modern military and diminish its dependence on United States assistance.

Subsection (e) directs the President to alter the current `cash-flow financing' system to accommodate this reduction in military aid, while ensuring that maintenance and spare parts for existing Egyptian military equipment are not jeopardized and that U.S. commitments are met for all outstanding agreements.

Egypt presently enjoys the benefit of a provision under which certain military assistance funds are placed in an interest-bearing account, and Egypt retains the interest. Subsection (f) requires that the interest be transferred to the Middle East Partnership Initiative (MEPI) and allocated for democracy and governance programs for Egypt, including direct support for nongovernmental organizations. Under the U.S. Administration's plans, assistance for democratization and governance programs are a very small proportion of our overall assistance; this is one area where congressional interest in progress requires a relatively reliable source of additional support.

Section 922. Inter-Arab Democratic Charter.

This section encourages support for the creation of an Inter-Arab Democratic Charter. At the recently concluded Community of Democracies Ministerial in Santiago, Chile, the final document articulated the commitment of the countries of the Middle East to work toward the creation of an Inter-Arab Democratic Charter. U.S. policy supports such efforts to promote democratic institutions and reform, and integrate civil society into this process. This section calls for the Bureau of Democracy, Human Rights, and Labor, in consultation with the Bureau for Near Eastern Affairs and the Bureau for Western Hemisphere Affairs, to develop an inter-regional strategy to support, including through the provision of technical assistance, efforts to create an Inter-Arab Democratic Charter and strengthen the role of human rights organizations, pro-democracy advocates, and civil society members from both regions in helping to craft such a Charter. This section also authorizes such sums as may be necessary to provide technical assistance to support such efforts, derived from the Human Rights and Democracy Fund and Middle East Partnership Initiative funding.

Section 923. Middle East Partnership Initiative.

This section authorizes the Middle East Partnership Initiative programs for fiscal years 2006 and 2007 with a requirement that, in reforming countries, no less than half of the funds be dedicated to activities such as: Democracy and civil society promotion, particularly nongovernmental organizations; to the expansion of women and other minority participation in the political, economic, and educational sectors; and to developing and implementing free and fair election standards. MEPI funds are also to be focused on promoting democracy in countries under authoritarian rule.

Section 924. West Bank and Gaza Program.

This section concerns oversight of U.S. assistance to the USAID West Bank/Gaza program for FY06 and FY07. It maintains a certification by the Secretary of State to ensure that the Comptroller General of the United States will have access to appropriate United States financial information in order to review the use of U.S. assistance to the West Bank/Gaza program. It further states that prior to the obligation of any funds, the Secretary shall take all appropriate steps to ensure that such assistance is not provided to or through any individual entity that the Secretary knows, or has reason to believe, advocates, plans, sponsors, engages in, or has engaged in, terrorist activity, and includes a prohibition of assistance for the purpose of recognizing or otherwise honoring individuals who commit, or have committed, acts of terrorism. This provision states that $1,000,000 for each fiscal year may be used by the Office of the inspector General of USAID for audits and inspections necessary to implement this section.

Section 925. Economic Support Fund Assistance for Venezuela.

This section authorizes $9 million for each of fiscal years 2006 and 2007 in Economic Support Funds to fund activities which support political parties, the rule of law, civil society, an independent media, and otherwise promote democratic, accountable governance in Venezuela.

Annual Foreign Operations Appropriations Acts extend the prohibitions of the American Service Members Protection Act (Title II of P.L. 107-206) to Economic Support Funds and their use with governments that have not ratified an Article 98 agreement with the United States. As such, nongovernmental organizations, but not the Government of Venezuela (which does not have an Article 98 agreement with the United States) would be eligible to receive the assistance which is authorized by this section.

Asian University for Women in Bangladesh.

The Committee is aware of the strong support that the University has garnered in Bangladesh and elsewhere in South Asia and from the Bangladeshi-American and South Asian-American communities. United States Government support has been important to getting the University started. The Committee encourages the Agency for International Development and other government agencies to consider sympathetically such applications the University may make for additional assistance.

CHAPTER 3--PART III OF THE FOREIGN ASSISTANCE ACT OF 1961

Section 931. Support for Pro-Democracy and Human Rights Organizations in Certain Countries.

This section authorizes U.S. foreign assistance in certain circumstances to countries designated as state sponsors of terrorism. U.S. law prohibits U.S. assistance to countries designated as state-sponsors of terrorism. As such, specific statutory authorization is necessary for the U.S. to provide support for the efforts of human rights and pro-democracy advocates in these rogue nations. This section provides such authorization if, at least 30 days before obligating funds for such assistance, the Secretary of State notifies the appropriate Congressional Committees (in classified or unclassified form) that the recipient organizations oppose terrorism, support democracy and respect for human rights, including equality of women and other minorities, and support other fundamental liberties.

Section 932. Limitation on Assistance to the Palestinian Authority.

Subsection 932(a) amends the Foreign Assistance Act of 1961 by inserting a new section, proposed Section 620K, which is intended to govern all assistance to the Palestinian Authority.

Section 620K(a) provides that assistance to the Palestinian Authority under the Foreign Assistance Act or any other act may only be provided when a certification by the President under section 620K(b) is in effect.

The President's certification must contain the President's determination that:

(1) providing direct assistance to the Palestinian Authority is important to the national security interests of the United States; and

(2) that the Palestinian Authority:

(A) is committed to and has initiated the process of purging from its security services individuals with ties to terrorism;

(B) has made demonstrable progress toward dismantling the terrorist infrastructure, confiscating unauthorized weapons, arresting and bringing terrorists to justice, destroying unauthorized arms factories, thwarting and preempting terrorist attacks, and is fully cooperating with Israel's security services;

(C) has made demonstrable progress toward halting all anti-Israel incitement in Palestinian Authority-controlled electronic and print media and in schools, mosques, and other institutions it controls, and is replacing these materials, including textbooks, with materials that promote tolerance, peace, and coexistence with Israel;

(D) has taken effective steps to ensure democracy, the rule of law, and an independent judiciary, and has adopted other reforms such as ensuring transparent and accountable governance;

(E) is committed to ensuring that all elections within areas it administers to be free, fair, and transparent; and

(F) is undertaking verifiable efforts to ensure the financial transparency and accountability of all government ministries and operations.

Under subsection (c) of the new Section 620K, the President must recertify 90 days after initial his certification and every 6 months thereafter that the requirements contained in subsection (b) of that new section are continuing to be met. If the President is unable to make a recertification the President is to report to Congress indicating the reasons he cannot make a recertification.

Under subsection (d) of the new Section 620K, assistance made available under this act or any other provision of law to the Palestinian Authority may not be provided until 15 days after the date on which the President has provided notice to the Committee on International Relations and the Committee on Appropriations of the House of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate under the procedures applicable to reprogramming notifications under section 634A(a) of the Foreign Assistance Act.

Subsection (b) of section 932 of this act provides for a report by the Comptroller General of the United States to the appropriate Congressional Committees reviewing the extent to which United States assistance to the Palestinian Authority under the Foreign Assistance Act of 1961 or any other provision of law is properly audited by the Department of State, the United States Agency for International Development, and all other relevant departments and agencies of the Untied States Government.

Section 933. Assistance for Law Enforcement Forces.

This section amends the Foreign Assistance Act of 1961 to create new exceptions to the general prohibition against foreign assistance to foreign law enforcement and intelligence personnel and agencies. The exceptions which this section authorizes are for assistance to combat corruption; improve public safety training, particularly with regard to human rights, the rule of law, conflict prevention, and the promotion of civilian police roles that support democratic governance; combat trafficking in persons; and develop capabilities for and deployment to impending or ongoing peace operations of the United Nations or comparable regional organizations. The section also permits assistance to be given to national, regional, district, municipal, or other sub-national governmental entity of a foreign government.

The provision reasserts the Committee's intent to authorize activities and assistance for foreign law enforcement which have been conducted pursuant to the Foreign Operations Appropriations Act. The provision also responds to a GAO study that found that current section 660 restrictions were constraining the ability of the United States Government, working through nongovernmental organizations, to consolidate democracy in Central America, the Andean region, and outside the Western Hemisphere.

The Committee notes that the Center for Strategic and International Studies held a policy seminar in March 2005, `Policing and Security in Latin America, the Need for Reform.' A conclusion of the panelists was that the existing legal framework is riddled with exceptions which have, for the most part, substantially weakened the general prohibition against the provision of assistance to foreign law enforcement. The seminar presenters also recommended that the current legal framework governing the provision of such assistance be reformed after a comprehensive survey of current assistance to foreign law enforcement is conducted.

The Committee believes that assistance under this section should be provided to countries with democratically-elected governments which are under civilian control and have demonstrated a commitment to preventing human rights abuses by their police forces. Assistance should also be provided as part of a broader development strategy to enhance democratic governance, maximize the involvement of civil society in decision-making at the national, regional, and local levels, strengthen human rights, and increase the accountability and transparency of government agencies, including law enforcement entities, to the communities which they serve. Assistance provided under this section should be fully transparent and include mechanisms to encourage continued, cooperative contact with and between recipients of training or assistance.

SUBTITLE B--OTHER PROVISIONS OF LAW

Section 941. Amendments to the Afghanistan Freedom Support Act of 2002.

This section amends the Afghanistan Freedom Support Act of 2002, as amended (22 U.S.C. 7501 et seq.), to authorize appropriations of $50 million for each of fiscal years 2006 and 2007 in order to support the United Nations Assistance Mission in Afghanistan (UNAMA) and other programs related to holding free, fair, and transparent parliamentary elections that are scheduled to take place this September.

This section states that it shall be the policy of the U.S. to urge donor governments and institutions to provide significant financial support to UNAMA, assist legitimate and recognized parliamentary candidates and future elected parliamentary officials in carrying out the responsibilities and duties of their elected offices, and assist Afghanistan in the preparation for future presidential and parliamentary elections.

The purposes of assistance are to support programs in the areas of: Voter education and voter registration; the disarmament, demobilization, and reintegration (DDR) of militias; transparency and accountability training; and exchange of parliamentary officials.

Section 942. Amendments to the Tibetan Policy Act of 2002.

This section amends the Tibetan Policy Act of 2002 (P.L. 107-228). Section 942(a) amends section 616 of the Tibetan Policy Act by adding a new subsection (d) `United States Assistance.' Under this provision, the President is required to provide grants to nongovernmental organizations to support sustainable economic development, cultural and historical preservation, health care, education, and environmental sustainability projects for Tibetans inside Tibet; the U.S. Special Coordinator for Tibetan Issues is required to review and approve all such projects; and there are authorized to be appropriated to the President to carry out this subsection $6 million for fiscal year 2006 and $8 million for fiscal year 2007. Section 942(b) amends section 619 of the Tibetan Policy Act such that the Secretary of State shall ensure that at least one Foreign Service Officer assigned to a U.S. post in the People's Republic of China responsible for monitoring developments in Tibet has at least 6 months of Tibetan language training or equivalent fluency prior to taking up such assignment. Subsection 942(c) amends section 621 of the Tibetan Policy Act by adding a new subsection (e) which requires that the Secretary of State assign dedicated personnel to the Office of the Special Coordinator for Tibetan Issues.

With regard to grants for cultural and historic preservation, the intent of the Committee is that such grants be used to not only preserve current Tibetan culture, but to also record Tibetan culture prior to the Chinese invasion in 1949. Grants for historic preservation should consider developing an historical accounting of Tibetan assets to include personal possessions, items of religious significance, and artwork that were seized by the Chinese Government. In addition, such grants should also seek to identify those entities of the Chinese Government responsible for such seizure and disposition of Tibetan property.

Section 943. Amendments to the Anglo-Irish Agreement Support Act of 1986.

This section amends the Anglo-Irish Agreement Support Act of 1986 which provided the authority for the United States to make contributions to the International Fund for Ireland (IFI). The Fund was established by the Governments of the United Kingdom and the Republic of Ireland to enable other countries to make contributions for economic development and reconciliation in the six counties of Northern Ireland and the border counties in the Republic of Ireland. As of fiscal year 2005, the U.S. has contributed approximately $430 million to IFI which also receives support from other countries, including the EU, Canada, Australia, and New Zealand. The goal has been to bring different communities together, foster economic growth, and thereby help reduce unemployment and strife that can lead to restlessness and interest in paramilitary violence. In addition to fostering economic activity, the U.S. contributions to the IFI are designed to enhance cross community contact, greater understanding between the peoples of Northern Ireland and reconciliation.

This provision seeks to further the reconciliation and cross community programs of the IFI by encouraging more support for programs that enhance relations between communities, promote human rights training, and enhance peaceful mediation in neighborhoods of continued conflict. The provision also reauthorizes the Fund at $20 million and stipulates that not less than 35 percent be used for the implementation of the cross-community, reconciliation programs rather than economic-only programs.

Section 944. Assistance for Demobilization and Disarmament of Former Irregular Combatants in Colombia.

This section authorizes U.S. assistance for the Republic of Colombia for fiscal year 2006 and each subsequent fiscal year for the demobilization and disarmament of former members of foreign terrorist organizations, specifically the United Self-Defense Forces of Colombia (AUC), the Revolutionary Armed Forces of Colombia (FARC), and the National Liberation Army (ELN), if the Secretary of State certifies to the Congress that: (1) Such assistance will be provided only to individuals who have `verifiably' (i.e., signed the Government of Colombia form on the renunciation of terror, remain in the demobilization program and meet the requirements of the program) renounced and terminated any affiliation or involvement with foreign terrorist organizations; (2) the Government of Colombia is continuing to provide full cooperation with U.S. requests for extradition of leaders and members of these terrorist organizations; and (3) the Government of Colombia has established a concrete and workable framework for dismantling the organizational structure of these foreign terrorist organizations that adequately balances the need for both reconciliation and justice with concerns for fundamental human rights.

The provision clearly signals the Committee's intent to unambiguously authorize U.S. aid to assist the demobilization of former terrorists in Colombia. This provision signals the Committee's intent that such assistance be used to support the involvement of ex-combatants in the eradication of illicit drugs that finance terrorism in Colombia. Such U.S. aid under these circumstances is not material support for terrorism. To the contrary, such assistance should be interpreted as counterterrorism assistance as it removes terrorist combatants as a threat to the elected Government of Colombia and engages the former combatants in efforts to eliminate the illegal drugs that finance terrorism in Colombia. The verification of individual renunciation of ties to terrorism by the Secretary of State shall consist of certification that the individuals have signed the pledge on the renunciation of terrorism required by the Government of Colombia and that said individuals remain in the assistance program.

Section 945. Support for Famine Relief in Ethiopia.

This section authorizes the Secretary of State to make a voluntary contribution of $4 million to the World Food Programme to establish and carry out a demonstration insurance project in Ethiopia using weather derivatives to transfer risk of catastrophic drought from vulnerable subsistence farmers to international capital markets to protect against asset and income loss during food crises.

Section 946. Assistance to Promote Democracy and Human Rights in Vietnam.

This section authorizes $2 million for necessary expenses to fund NGOs and organizations that promote democracy in Vietnam. The development of democracy in Vietnam, including respect for human rights and religious freedom, has not kept pace with economic reforms and the growth of trade with the United States. The human rights situation in Vietnam has in fact worsened over the past 10 years. The State Department designated Vietnam as a `Country of Particular Concern' in September 2004 for its severe violations of religious freedom, and despite concluding an agreement on religious freedom with the State Department in May 2005, the Government of Vietnam has continued to severely restrict the ability of non-sanctioned religious groups, including ethnic minority Protestant congregations in the Northwest and Central Highlands, Catholics, Buddhists, Cao Dai, Baha'I, and Hoa Hao, to exercise their faiths.

The Socialist Republic of Vietnam is a one-party Communist-ruled State, which continues to deny its citizens basic political liberties such as independent political thought, and the existence of labor and social organizations. The Government also continues to commit serious human rights violations.

The provision states that it is the policy of the United States to limit non-humanitarian assistance provided to the Government of Vietnam to not more than the amount so provided for fiscal year 2005, unless the President certifies that Vietnam has made substantial progress toward: Releasing political and religious prisoners; allowing access to the U.S. for its refugee program; respecting the rights of its minorities; and ensuring it is not acting in complicity with organizations engaged in human trafficking.

SUBTITLE C--MISCELLANEOUS PROVISIONS

Section 951. Report on United States Weapons Transfers, Sales, and Licensing to Haiti.

This section requires the Secretary of State to submit to the appropriate Congressional Committees, not later than 180 days after the date of the enactment of this act, a report on all United States weapons transfers, sales, and licensing to the Government of the Republic of Haiti for the period beginning October 4, 1991, and ending on the date of the enactment of this act. The report shall describe: The names of the persons to which weapons were transferred, sold, or licensed; the number of such weapons; and the safeguards, if any, that were required prior to such transactions.

Section 952. Sense of Congress Regarding Assistance for Regional Health Education and Training Programs.

This section expresses a sense of Congress that U.S. AID should use up to 5 percent of country-specific health program funds to address regional health education and training needs in instances where it would be more cost-effective to implement such programs on a regional basis.

Section 953. Sense of Congress Regarding Assistance for Regional Health Care Delivery.

This section expresses a sense of Congress that U.S. AID should use up to 5 percent of country-specific health program funds to support projects to create and improve indigenous capacity for health care delivery.

Section 954. Sense of Congress Regarding Elimination of Extreme Poverty in Developing Countries.

This section expresses a sense of Congress that the elimination of extreme poverty in developing countries should be a major priority of U.S. foreign policy and that the U.S. should demonstrate leadership in eliminating extreme poverty by working with the developing countries, donor countries, and multilateral institutions committed to the necessary reforms, policies, and practices that reduce extreme poverty. The section states that the President, acting through the Administrator of the United States Agency for International Development, should develop a comprehensive strategy to eliminate poverty in developing countries using foreign assistance, private investment, technical assistance, private-public partnerships, and debt relief. In developing this strategy, the Administrator of the United States Agency for International Development should consult with the heads of other appropriate departments and agencies of the United States Government, international organizations, international financial institutions, recipient governments, civil society organizations, and other appropriate entities.

Section 955. Sense of Congress Regarding United States Foreign Assistance.

This section expresses a sense of Congress that U.S. foreign assistance should be used to support local capacity-building in developing countries and should focus on improving the institutional capacities of developing countries in order to promote long-term development.

TITLE X--REPORTING REQUIREMENTS

Section 1001. Trans-Sahara Counter-Terrorism Initiative.

This section expresses the sense of Congress that efforts currently underway to expand the Pan Sahel Initiative (PSI) into a robust counterterrorism program in the Saharan region of Africa, known as the Trans-Sahara Counter-Terrorism Initiative (TSCTI), are strongly supported. TSCTI aims to utilize U.S. training and assistance to bolster the capacity of host nations to govern their territory so as not to become transnational terrorist havens.

The Committee finds that developments on the African continent will be increasingly consequential to the security of the United States. The area of the Sahara, with its vast open space and weak governments, has the potential to become a terrorist sanctuary. Transnational terrorists, linked to al-Qaeda, have been found operating in Saharan countries. TSCTI is an important response to this region's growing importance to our nation's security.

With limited resources, the PSI has produced promising results. At a March 10, 2005, hearing of the Subcommittee on International Terrorism and Nonproliferation, `Eliminating Terrorist Sanctuaries: The Role of Security Assistance,' testimony was heard on the role PSI played in the capture of Abderrazak al-Para, a key leader of the Salafist Group for Call and Combat (GSPC), which has pledged allegiance to al-Qaeda. The GSPC was responsible for the kidnapping of 32 European tourists in Algeria in 2003. More recently, the GSPC claimed responsibility for an attack on a Mauritanian Army outpost that left 15 Mauritanian troops dead.

Enhanced assistance to nations in the Sahara, under the Trans-Sahara Counter Terrorism Initiative, should further United States counterterrorism operations and strengthen regional security cooperation. Building partnerships with and among weak states to combat terrorism and other internal threats will be key toward denying terrorists sanctuaries. Significantly, the TSCTI is a broad-based approach, involving more than security assistance. Development assistance, increased U.S. public diplomacy efforts to counter radical Islamist elements and other aid is envisioned.

Respect for human rights and civilian authority should be paramount in this security assistance training. Short-term gains in counterterrorism operations may be eclipsed by long-term harm to the U.S. and participating African states if proper safeguards are not incorporated into TSCTI.

The section requires the Secretary of State to submit to Congress 120 days after the date of enactment of this act, a classified strategy regarding United States efforts to expand the PSI. The report shall include: Participant countries; a description of security assistance and training to be conducted; a description of training to ensure respect for human rights and civilian authority; and other activities of the Initiative. The section also requests that the head of each appropriate department and agency of the United States Government cooperate fully to ensure the success of the Trans-Sahara Counter Terrorism Initiative.

Section 1002. Annual Patterns of Global Terrorism Report.

The House Committee on International Relations, Subcommittee on International Terrorism and Nonproliferation, chaired by Representative Edward R. Royce, held a hearing on May 12, 2005 on the State Department's congressionally-mandated report on international terrorism Patterns of Global Terrorism (this year renamed Country Reports on Terrorism). This was in response to the Committee's concerns over the problems associated with the publication of the last two annual reports.

The 2003 report had to be reissued after significant errors were detected due to underreporting the number of terrorist attacks during the year. This year, without congressional consultation, the State Department issued the 2004 report without its traditional annex containing statistical data on the number of terrorist attacks worldwide. Additionally, the chronology of significant international terrorist incidents is now left to the newly-created National Counterterrorism Center (NCTC) for production, although it has traditionally been published as part of the State Department-mandated report to Congress.

This section would modify and update the existing legislative requirements that the State Department annually report to Congress on Patterns of Global Terrorism. This report is considered an important document for educating the public about international terrorism, including trends and policy issues.

Since its inception, and through a series of amendments, the Department of State has been required to provide Congress with a full and complete annual report on terrorism for those countries and groups meeting the criteria of the act, including: Detailed assessments of foreign countries where terrorist acts occurred, or which were designated state sponsors of terrorism; and terrorist groups responsible for acts against Americans or financed by state sponsors. In addition, the law requires the Department to report on the extent to which foreign countries cooperate with the United States in counterterrorism efforts. At the time the original law was drafted, the primary threat from terrorism was state-sponsored. Since then, the terrorist threat has changed. Al-Qaeda and affiliated groups pose the largest threat today.

This section legislatively reflects the State Department's role in compiling the Patterns report, utilizing the intelligence data and analyses as prepared by the intelligence community, particularly the National Counterterrorism Center (NCTC). The Secretary of State is statutorily required to produce a statistical review and will presumably, as it has done in the past with predecessors of the NCTC, contract with the NCTC to produce these numbers, according to consistent criteria, in this one report. This mandate seeks to avoid the production of two separate reports.

It further updates and redefines the type of information that should be contained in the Patterns report to reflect the threat our nation faces today, including: The inclusion of specific data and statistics on terrorist incidents; an assessment of each country around the world on counterterrorism cooperation with the United States; an assessment of efforts of multilateral organizations to combat terrorism; an analysis of policy goals of the United States for counterterrorism efforts; and the requirement of the Secretary of State to testify before the Committee each year on international counterterrorism efforts, among other patterns and trends of terrorism.

Also, the Committee has required more specific assessments in the country-by-country section of each country's counterterrorism efforts and cooperation with the United States, to include negative reports which may be classified, if necessary. This report's objective is to fully inform Congress of the level of counterterrorism cooperation with every other nation--it is not intended to devolve into a press relations campaign for countries that the United States is trying to influence, nor to list impossible-to-discern relative differences in the levels of cooperation between different nations.

The Committee expects that the new legislation will provide the flexibility needed to paint an accurate picture of terrorism around the world. This should mean that incidents in which civilians or other noncombatants are deliberately targeted for political purposes, or when groups launch reckless or indiscriminate attacks knowing that extensive civilian casualties will result, they should be discussed in this report. Whether or not an incident involves the citizens of more than one country is now irrelevant, since the State Department has so strictly construed the statute to exclude important terrorist incidents such as the Russian airliners downed by Chechen terrorists, a ferry in the Philippines bombed by the Abu Sayaf group, and attacks in Uzbekistan carried out by the Islamic Movement of Uzbekistan. The Committee expects that if incidents need to be included in the report for a complete understanding of the terrorist picture around the world, then they should be included in footnotes or appendices rather than to omit them due to a `strict construction' of difficult definitions under this statute. For example, if the State Department is able to ascertain the number of Americans killed around the world due to terrorist attacks, it may be relevant to include it in this report. The statute dictates measures that at a minimum should be included in the report. It is far better for the report to be over-inclusive with any necessary explanations than to be under-representative of the problem.

It is also expected that the Administration will consult with Congress on the administrative or regulatory guidelines that will be used when determining the criteria for inclusion in this report and again produce what was once considered the flagship United States publication on international terrorism.

Section 1003. Dual Gateway Policy of the Government of Ireland.

This section provides for an economic impact study by the Secretary of State, in consultation with other appropriate agencies, of the dual gateway policy of the Government of the Republic of Ireland. This policy requires air carriers serving Ireland's Dublin Airport from the United States to undertake an almost equal number of flights to Ireland's Shannon Airport. The study is to determine the effects a discontinuation of such a policy would have on the large number of U.S. businesses, as well as Irish businesses, operating in western Ireland.

Section 1004. Stablization in Haiti.

This section requires that the Secretary of State, not later than 1 year after the date of enactment of the act, submit to the appropriate Congressional Committees a report on the efforts of the United States to assist in the disarmament of illegally armed forces in Haiti, the reform of the Haitian National Police, and the stabilization of the country generally.

Section 1005. Verification Reports to Congress.

Currently, section 4039(a) of the Arms Control and Disarmament Act (22 U.S.C. Sec. 2593a) provides that the Secretary of State will prepare the annual report on verification, on behalf of the President, after `consultation with' certain other agencies; however, the Secretary of State must seek the `concurrence' of the Director of Central Intelligence in the preparation of the report. The President should be free to decide who in the executive branch will prepare the report and how it can best be prepared.

Inserting `as the President deems appropriate' recognizes that the conduct of diplomatic negotiations is a function committed to the President by the Constitution, and he must have the authority to determine what information about such negotiations may, in the public interest, be made available to Congress and when such disclosure should occur.

Section 1006. Protection of Refugees from North Korea.

This section amends P.L. 108-333, the North Korean Human Rights Act of 2004 (`NKHRA'), to ensure that annual reports on immigration by North Korean refugees and defectors (required by section 305 of that act) include a description of U.S. efforts to facilitate the submission of U.S. refugee applications by North Koreans. As underscored at an April 28, 2005 oversight hearing, the United States has not yet begun sharing the burdens associated with resettling North Korean refugees, one of the key aims of the act. Persistence by U.S. officials will be required to secure from nations in the region the cooperation necessary to permit the United States to process and accept a credible but unspecified number of North Korean refugees for domestic resettlement, and this section is intended to assist the Congress in tracking that progress.

The NKHRA directs the Secretary of State to facilitate the submission of applications by North Koreans seeking protection as refugees, a task that will require creative U.S. diplomatic efforts with countries in the region, including China, South Korea, Russia, Mongolia, Vietnam, Laos, Thailand, Cambodia, and the Philippines. A State Department report to Congress, issued in March 2005, made clear that substantial, additional work remains to be done, but was unclear about what particular efforts have been made toward that end (speaking vaguely of a `survey of regional U.S. diplomatic posts' which gave `preliminary indications' that such assistance is not possible `at this time'). For those reasons, this new section makes this information part of the annual report required for 5 years by Section 305 of the NKHRA.

Section 1007. Acquisitions and Major Security Upgrades.

This section amends section 605(c) of the Foreign Relations Authorization Act, FY 2000-01 (P.L. 106-113), to change the semiannual report on Embassy construction and security program to an annual report.

Section 1008. Services for Children with Autism at Overseas Missions.

This section requires the Secretary of State to conduct a study in countries where the U.S. has at least one mission to determine the availability of programs that address the needs of children with autism and provide a report of the study to Congress within 30 days of completion of the study. This report will include the estimated number of incidences of autism among dependents of Foreign Service Officers and Specialists, and an analysis of the possibility of establishing `Educational Centers of Excellence' for such dependents.

According to the Centers for Disease Control, autism is growing rapidly in the United States and worldwide. There is no known cure for autism, and little is known about its causes, although much promising research is being conducted. The Committee is concerned that while the State Department's Office of Medical Services does make an allowance available for Foreign Service Officers to cover certain costs associated with addressing autism in dependents, including speech therapy, occupational therapy, and special education services, these allowances will be effectively used only if speech therapists who are English-speaking and pediatric occupational therapists skilled in treating the sensory integration disorder which is common in autistic children are available to be hired privately. The net effect is that Foreign Service Officers with autistic children can serve in only an extremely small number of overseas posts when their children are young and intervention needs are high, for example, the UK, Australia, and Brussels. With the growing number of autistic children and the need for Foreign Service Officers to be available for worldwide service, the Committee believes the Department must look at alternatives. The difficulty of frequent moves and the social turmoil that goes with it are the same for those in the Foreign Service as in the military. The Committee urges the Department to coordinate closely with the Department of Defense to examine the provision of autism services at DoD overseas schools or other possible mechanisms.

Section 1009. Incidence and Prevalence of Autism Worldwide.

This section authorizes $1.5 million for FY 2006 for a study of the incidence of autism worldwide. It asks the Secretary of State to work with the United Nations Children's Fund (UNICEF) to use the `voice and vote' of the United States to urge the conduct of a worldwide study on autism spectrum disorders generally referred to as `autism.'

According to the CDC, studies done in Europe and Asia indicate as many as two out of every 1,000 children have some type of autism, but there have been no comprehensive studies of the worldwide incidence of autism.

UNICEF is the lead agency for monitoring the child-related Millennium Development Goals, and plays a leading role in strengthening methodologies for the measurement and assessment of key indicators related to the goals of `A World Fit for Children,' and other global commitments. UNICEF already produces statistics globally and by country and provides a tool for generating customized statistical tables. The statistical tool includes economic and social data from 195 countries and territories, with particular reference to children's well-being. These statistics are derived from UNICEF's flagship publication, The State of the World's Children 2005.

The provision requires a report to be provided by the UNICEF Executive Board and forwarded to participating governments containing the findings of the study and any necessary recommendations.

Section 1010. Internet Jamming.

This section requires the BBG to submit to Congress a report on the status of state-sponsored and state-directed Internet jamming by repressive foreign governments. This report will include information concerning which countries, or quasi-government organizations are involved in such jamming.

Section 1011. Department of State Employment Composition.

This section amends section 324 of the Foreign Relations Act, Fiscal Year 2003 to extend a report on the employment and promotion of minority groups and women at the Department of State in both the Foreign Service and Civil Service. The provision also requires that the report include information regarding the numbers and percentages of contacts entered into by the Department of State with small, minority-owned and disadvantaged businesses.

Section 1012. Incitement to Acts of Discrimination.

This section amends the Foreign Assistance Act of 1961 to require the Secretary of State to expand reporting in the Department's annual Country Reports on Human Rights Practices to include reports, when applicable, for each country a description of the nature and extent of propaganda in foreign government and foreign government controlled media and other sources that attempt to justify or promote racial hatred or incite acts of violence against any race or people and a description of the actions, if any, taken by that government to eliminate such propaganda. To improve the capacity of State Department personnel in fulfilling the requirements of this section, the Committee recommends that instruction in identifying, combating, and repudiating anti-Semitic rhetoric and incitement be provided as part of the training for members of the Foreign Service.

Section 1013. Child Marriage.

This section requires the Secretary of State to provide to the appropriate Congressional Committees not later than 180 days after enactment, a one-time report regarding the practice of the custom of child marriage around the world. The report will include sections for each country in which child marriage is documented. Each country section must include a description of efforts by the government, if any, to revise laws and practices to eliminate child marriage, and actions taken by the State Department and other agencies to encourage the government to eliminate child marriage.

UNICEF reports that in some countries half of all girls are married by the age of 18 because of poverty, tradition and family pressure. Child marriages are most common in sub-Saharan Africa and South Asia, where poverty, traditional taboos about pre-marital sex, and fears of AIDS are widespread.

Section 1014. Magen David Adom Society.

This section amends the Foreign Relations Authorization Act of 2003 (P.L. 107-228) to reflect the U.S. efforts to obtain full membership and recognition of the Magen David Adom Society in the International Red Cross and Red Crescent Movement. It also requires the Secretary of State to report on U.S. efforts to obtain full membership for the Magen David Adom Society in the Movement; efforts by the International Committee of the Red Cross to obtain full membership for the Magen David Adom Society in the Movement; efforts of the High Contracting Parties to the Geneva Convention to adopt the October 12, 2000 draft additional protocol which would accord international recognition to an additional distinctive emblem, the absence of which has been a serious impediment to the Magen David Adom Society's bid for full membership in the Movement; the extent to which the Magen David Adom Society is participating in the activities of the International Red Cross and Red Crescent Movement; the extent to which the Magen David Adom Society is participating in the activities of the Movement; and efforts by any state, member, or official of the Movement to prevent, obstruct or place conditions on the adoption of the additional protocol or the full participation of the Magen David Adom in the Movement.

Section 1015. Developments in and Policy Toward Indonesia.

This section recognizes the remarkable progress in democratization and decentralization in Indonesia, expresses concern about continuing human rights violations by Indonesian security forces, and takes note of the situation in Papua. In general, it reflects underlying sentiments that reform of Indonesian security forces is important to consolidating democratic gains and protecting human rights, and that robust implementation of special autonomy holds the best chance of promoting peace and stability in the conflict-torn provinces of Aceh and Papua. It requires an annual report by the State Department on the implementation of special autonomy for Aceh and Papua, and a report on the 1969 `Act of Free Choice,' wherein selected Papuan elders elected to remain part of Indonesia.

Section 1016. Murders of United States Citizens John Branchizio, Mark Parson, and John Marin Linde.

This section expresses a sense of Congress regarding the October 2003 murders of U.S. citizens John Branchizio, Mark Parson, and John Marin Linde.

Subsection (a) presents findings regarding the October 2003 murders of three United States citizens, John Branchizio, Mark Parson, and John Marin Linde, in Gaza. Subsection (b) is a sense of Congress asserting, among other things, that the continued inability or unwillingness of the Palestinian Authority (PA) to pursue aggressively the murderers of the three U.S. citizens and bring them to justice calls into question the PA's viability as a U.S. partner in resolving the Palestinian-Israeli conflict. It also asserts that future U.S. assistance to the PA may be affected, and the continued operation of the PLO Representative Office in Washington may be jeopardized if the PA does not fully and effectively cooperate in bringing the murderers to justice.

Subsection (c) requires the Secretary of State to submit a report to the appropriate Congressional Committees within 30 days after the date of the enactment of this act, and every 120 day thereafter. The report shall include a description of efforts by the U.S. to bring the murderers to justice, a detailed assessment of efforts by the PA to bring the murderers to justice, an assessment as to whether the PA's efforts constitute `the best possible effort,' and a description of any additional steps or initiatives requested or recommended by the U.S. that were not pursued by the PA. In accordance with subsection (d), this report will no longer be required if the Secretary of State certifies that the murderers have been identified, arrested, and brought to justice.

Section 1017. Diplomatic Relations with Israel.

Finding that 33 countries have no diplomatic relations with Israel, this section expresses a sense of Congress that the U.S. should assist Israel in its efforts to establish diplomatic relations. It also requires the Secretary of State to report 90 days after enactment and annually thereafter on actions taken by the U.S. to encourage other countries to establish full diplomatic relations with Israel, including specific responses solicited and received from countries that do not have diplomatic relations with Israel.

Section 1018. Tax Enforcement in Colombia.

This section requires that the Secretary of State, no later than 90 days after the date of enactment of this act, submit to the appropriate Congressional Committees a report which details the challenges that the Colombian Government faces in enforcing its tax code. The report should include specific information such as estimates of current tax revenue as a percentage of Colombia's gross domestic product, an estimate of potential revenue if tax laws were fully enforced, and a discussion of the potential uses for such revenue to achieve the objectives of Plan Colombia.

The Committee notes that the World Bank reportedly indicates that Colombia collected 10.1 percent of its Gross Domestic Product as taxes in 1998, which is significantly lower than the United States (20.4 percent) and most of the developing world; that a subsequent increase to 14 percent of Colombia's GDP was fueled largely by a one-time tax assessed to wealthy Colombians; that even 14 percent still ranks Colombia remarkably low for a country facing an internal armed conflict and poverty rates approaching 60 percent; that of Colombia's population of 44 million, only 800,000 pay any income taxes; and that few Colombian municipalities have proven capable of enforcing their constitutional authority to collect property taxes from large landholders. The Committee believes that this report will provide it with the information necessary to accurately discuss and address this matter.

Section 1019. Provision of Consular and Visa Services in Pristina, Kosova.

This section requires the Secretary of State to provide a report 90 days after enactment of this act describing the possibility of providing consular and visa services at the U.S. Office in Pristina, Kosovo (USOP) to residents of Kosovo.

Section 1020. Democracy in Pakistan.

This section supports the Administration's policy of promoting democracy by requiring an annual report for fiscal years 2006 and 2007 on the extent to which the Government of Pakistan has restored a fully functional democracy in which free, fair, and transparent elections are held. The Committee remains concerned that Pakistan's democratization process is moving too slowly and needs to accelerate considerably.

Section 1021. Status of the Sovereignty of Lebanon.

This provision consists of four subsections. Subsection (a) expresses a sense of Congress concerning matters discussed in the reporting requirement set out in subsection (b). It emphasizes the need for all parties in the Middle East and internationally to support implementation of U.N. Security Council Resolution 1559 (2004), which calls for `strict respect' for Lebanon's sovereignty, territorial integrity, unity, and political independence `under the sole and exclusive authority of the Government of Lebanon throughout Lebanon'; calls upon all remaining foreign forces to withdraw from Lebanon; calls for the `disbanding and disarmament of all Lebanese and non-Lebanese militias'; and supports the extension of the control of the Government of Lebanon over all Lebanese territory. These concerns reflect the Committee's sense of urgency--especially to see Hezbollah disarmed, all remaining Syrian security and intelligence personnel removed from Lebanon, and Lebanese forces in full control of Lebanon's borders so as to prevent anti-Israel provocations from the southern border and to stanch the flow of arms to Hezbollah, particularly from Lebanon's eastern border with Syria.

This subsection states that the U.S. and its allies should consider providing training and other assistance to the Lebanese armed forces to enhance their ability to disarm Hezbollah and other militias and stanch the flow of arms to Hezbollah and other militias. It also warns that future U.S. assistance to Lebanon may be affected if Lebanon does not make every effort to disarm militias, including Hezbollah, and to deny them re-armament.

Subsection (b) requires the Secretary of State to submit a report no later than 120 days after enactment of this act, and every 180 days thereafter, describing and evaluating: 1) the extent to which armed militias continue to operate in Lebanon and the Government of Lebanon's progress toward disbanding and disarming these militias; 2) the extent to which the Lebanese Government is committed to disbanding and disarming Hezbollah and other militias and stanching the flow of arms to Hezbollah and other militias; 3) the progress of the Lebanese armed forces in deploying and taking full control of all of Lebanon's borders; 4) the extent to which countries in the region attempt to direct arms to Lebanon-based militias or allow their territory to be traversed for this purpose and the extent to which these armament efforts succeed; 5) the routes and means used by external sources attempting to supply arms to Lebanon-based militias and the countries that are involved in these efforts; 6) the efforts of the U.S. and its allies to facilitate the process of disbanding and disarming Lebanon-based militias and stanching the flow of weapons to them; and 7) any recommendations for legislation to support the disbanding and disarming of Lebanon-based militias.

Subsection (c) says that the report required by subsection (b) should be submitted in unclassified form and may contain a classified annex if necessary.

Subsection (d) provides that the requirement to submit the report specified in subsection (b) shall no longer apply if the Secretary certifies to the appropriate Congressional Committees that all Lebanon-based militias have been disbanded and disarmed and that the Lebanese armed forces are deployed to and in full control of Lebanon's borders.

Section 1022. Activities of International Terrorist Organizations in Latin America and the Caribbean.

This section finds: That activities by international terrorist organizations in countries of the Western Hemisphere are a threat to the U.S.; that international terrorist organizations such as Hezbollah and Hamas have taken advantage of the weak rule-of-law in some Latin American and Caribbean countries; and, that the U.S. should work with countries in the region to expose and prevent activities by these terrorist organizations.

The provision requires a one-time report 180 days after enactment of this act on the activities of international terrorist organizations in Latin America and the Caribbean. The report is to be submitted in unclassified form but may contain a classified annex.

Section 1023. Analysis of Employing Weapons Scientists from the Former Soviet Union in Project Bioshield.

This section requires a report from the Secretary of State, consulting with the Secretary of Health and Human Services, by November 1, 2006, that will include:

(1) an analysis of the scientific and technological contributions that former bioweapons scientists could make to the research and development of biomedical countermeasures; the cost-effectiveness of those methods of employing the services of such scientists; and the desirability and national security implications of providing employment opportunities for such scientists biomedical countermeasures against biological weapons; and

(2) recommendations for appropriate legislation to address the issues analyzed in the report.

Section 1024. Extradition of Violent Criminals from Mexico to the United States.

This section details the impediments to extradition of violent criminals from Mexico to the United States resulting from a 2001 decision by Mexico's Supreme Court barring the extradition of Mexican nationals to countries where they may face life sentences without the possibility of parole. The provision acknowledges positive cooperation between the Government of the United States and the Government of Mexico. The provision establishes a sense of Congress that the Government of the United States should encourage the Government of Mexico to continue to work closely with the Mexican Supreme Court to urge the Court to re-visit its October 2001 ruling so that the possibility of life imprisonment without parole will not have an effect on the timely extradition of criminal suspects from Mexico to the United States.

The provision requires the Secretary of State to submit an annual report to Congress detailing the status of extraditions of Mexican nationals requested by the United States and the status of extraditions of U.S. nationals requested by Mexico. The report may contain a classified annex to protect sensitive information.

Section 1025. Actions of the 661 Committee.

This section requires a one-time report, no later than 4 months after the enactment of this act, from the Secretary of State on United States decisions, actions, communications, and deliberations in the 661 Committee of the United Nations concerning overpricing of contracts, kickbacks from sales of humanitarian goods, efforts to correct and revalue the contracts in the post-Saddam era, oil smuggling, and trade protocols. The report will also examine how the U.S. made its decisions in the 661 Committee and will identify the officials involved in making those decisions. The report will also include information detailing positions on these issues held by other members of the 661 Committee. The report will be accompanied by all supporting documents regarding the aforementioned decisions, actions, communications, and deliberations. The Committee accepts that some of this material may need to be delivered in classified form; however, it expects that some of this report will also be unclassified.

United Nations Security Council Resolution 661 imposed comprehensive sanctions on Iraq after its 1990 invasion of Kuwait. The Security Council established a committee, comprised of the 15 members of the Security Council, to oversee these sanctions. This committee became known as the `661 Committee.' After the Oil-for-Food program was created in 1996, the 661 Committee also administered and oversaw the program's operations, including the approval of contracts related to the program. As a permanent member of the Security Council, the U.S. was a member of the 661 Committee throughout its existence.

The Committee believes that by providing detailed insights into the operations and dynamics of the 661 Committee, this report will be an important contribution into its continuing investigation into the U.N., the Oil-for-Food program, the actions of the 661 Committee, and other issues surrounding the sanctions on Iraq.

Section 1026. Elimination of Report on Real Estate Transactions.

The Department requests that the requirement for this separate report be eliminated because sales information is already, and will continue to be, transmitted to Congress on an annual basis in Department of State budget presentation documents, specifically in the Overseas Building Office (OBO) Congressional Budget Justification (CBJ). The information in the OBO CBJ reflects the actual receipts collected from sales (not the sales or contract amount), which is more useful information.

TITLE XI--MISCELLANEOUS PROVISONS

SUBTITLE A--GENERAL PROVISIONS

Section 1101. Statement of Policy Relating to Democracy in Iran.

This section recognizes that there is a continuing lack of freedom and democracy in Iran and that Iran remains a state sponsor of terrorism. The U.S. supports democracy in Iran, and condemns the imprisonment and abuse of Iranian civilians who express political dissent.

Section 1102. Iranian Nuclear Activities.

This section finds that Iran is the world's leading state sponsor of terrorism, that Iran has called for the destruction of Israel, is developing an intermediate-range offensive missile capability, and continues to pursue a nuclear weapons program while deceiving and denying access to International Atomic Energy Agency inspectors. It also finds that Russia continues to assist Iran in the construction of a nuclear facility and in the supply of nuclear fuel. The ensuing Statement of Congress calls upon G-8 Governments to insist that Russia cease all nuclear assistance to Iran and make continued Russian G-8 membership contingent upon the termination of such assistance.

Section 1103. Location of International Institutions in Africa.

This section calls for international organizations and institutions in Africa that have moved from their original locations for reasons of security to return once security has improved, and authorizes the Secretary of State to begin consultations with such parties to determine the feasibility of returning such organizations and institutions to the regions in which they were originally headquartered. It pertains to the temporary relocation of the African Development Bank from Abidjan to Tunisia due to the civil unrest in Cote d'Ivoire.

Section 1104. Benjamin Gilman International Scholarship Program.

This section provides for an increase in the Gilman International Scholarship Program from $1,500,000 to $4,000,000. The reason for increasing the authorization level is to keep pace with the increases in the appropriations made for this highly successful academic program.

The International Academic Opportunity Act of 2000 (Title III of P.L. 106-309) established awards for undergraduate study abroad. This scholarship program provides grants for U.S. undergraduate students who are receiving Federal Pell Grant funding at a 2-year or 4-year college or university to participate in study abroad programs worldwide.

Section 1105. Prohibition on Commemorations Relating to Leaders of Imperial Japan.

This section forbids the Department of State and its missions abroad from engaging in any activity, such as the celebration of Showa holiday, which may serve to commemorate the leaders if Imperial Japan connected to the attack on the U.S. Fleet at Pearl Harbor, Oahu, Hawaii, on December 7, 1941.

Section 1106. United States Policy Regarding World Bank Group Loans to Iran.

U.S. law requires the U.S. Executive Directors of international financial institutions of the World Bank Group to use voice and vote to oppose loans to the Iranian regime. However, without the cooperation of U.S. allies, such World Bank Group assistance continues to be afforded to Iran.

Subsection (a) therefore directs the Secretary of State, in consultation with the Secretary of the Treasury, to work to secure the support of the governments of the countries represented in the decision-making bodies of these international financial institutions (IFIs), to oppose any further IFI activity in Iran until this state-sponsor of terrorism abandons its nuclear program. Subsection (b) requires the Secretary of State to notify the appropriate Congressional Committees within 30 days of initiating these efforts.

Section 1107. Statement of Policy Regarding Support for SECI Regional Center for Combating Trans-Border Crime.

This section expresses that it is the policy of the United States to continue to support the activities of the Southeast European Cooperative Initiative (SECI) Regional Center for Combating Trans-border Crime, located in Bucharest, Romania.

The SECI Regional Center for Combating Trans-Border Crime facilitates the exchange of law enforcement data and fosters cooperation between police, customs officers and prosecutors in matters involving transnational crime. The twelve member states of SECI, Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece, Hungary, Macedonia, Moldova, Romania, Slovenia, Serbia and Montenegro, and Turkey, assign police and customs officers to the Regional Center where they undertake coordinated investigations and operations through six task forces. The task forces are concerned with combating trafficking in human beings, drug trafficking, financial and computer crimes, auto theft, smuggling and fraud, and terrorism. The Regional Center also provides training for police and customs officers and integrates its work with other international organizations including the World Customs Organization and Interpol. Fifteen permanent observer states, including the United States, France, Germany, the U.K., and Canada provide technical and financial support to the SECI Regional Center. It is critical that the U.S. continues to support this effective regional crime fighting organization which also serves as a bridge to support similar law enforcement activities throughout the Caucasus and Central Asia.

Section 1108. Statement of Policy Urging Turkey to Respect the Rights and Religious Freedoms of the Ecumenical Patriarch.

This section sets out certain findings and a statement of policy with respect to the rights and religious freedoms of the Ecumenical Patriarch.

The Turkish Government continues to limit religious freedom in certain important ways, including with respect to the Greek Orthodox Church. The Halki Island Seminary, the Ecumenical Patriarchate's institution of higher learning, has been closed since 1971, when the Turkish Government nationalized all private education institutions. As a result, for over 30 years, the Ecumenical Patriarchate has been denied a place, under its control, to train the next generation of Orthodox clergy. The Turkish Government continues to expropriate churches and other properties formerly in the possession of the Patriarchate, and has not paid compensation for those properties. Other limitations on religious freedom also exist. For example, all clergy in Turkey, including Muslim clergy, are prohibited from wearing `religious garb' in public. Thus, the Ecumenical Patriarch and all metropolitans and priests are prohibited from wearing hats, robes, medals, and other garments which indicate their religious office.

Turkey's policy is that all religious institutions on its territory should be run as Turkish institutions and be headed by Turkish nationals; accordingly, the Turkish Government denies the Ecumenical status of the Patriarch and requires that the Patriarch be a Turkish citizen. This severely limits the field of viable candidates. This policy, established in 1923 at the birth of the modern Turkish state, in part reflected Turkish concerns about Greece's post-World War I bid to establish sovereignty in part of Western Anatolia. Today, it serves to limit foreign religious influences of all sorts, including jihadist Islam. Turkey probably would have difficulty relaxing some of its restrictions on non-Muslim religions while it maintains its controls on Islamic practice.

In contemporary times, however, the Greek Orthodox population of Turkey has shrunk to well under 10,000. Thanks to a 6-year-old Greek-Turkish rapprochement embraced as a strategic objective by both of Greece's major political parties, the prospect of Greek-Turkish hostilities is remote. Therefore, to the degree that Ankara's restrictive policy towards the Patriarchate still relates to a fear of irredentism, it is now anachronistic. For that and other reasons relating to the exercise of fundamental rights in accordance with European human rights standards, that policy should be discarded.

Section 1109. Statement of Policy Regarding the Murder of United States citizen John M. Alvis.

This section calls upon the Government of Azerbaijan to continue to investigate the murder of John M. Alvis, an employee of the International Republican Institute in Baku, Azerbaijan, when he was murdered on November 30, 2000, and to make this issue a priority item in relations between the Government of the United States and the Government of Azerbaijan. This section states that Congress appreciates the efforts of the Government of Azerbaijan to find the murderer or murderers of John M. Alvis and urges the Department of State to continue to make this issue a priority and raise it in bilateral communications.

Section 1110. Statement of Congress and Policy with Respect to the Disenfranchisement of Women.

Subsection (a) contains a finding that, following Kuwait's May 2005 parliamentary decision to enfranchise its female citizens, Saudi Arabia is now the only country in the world that restricts the franchise and the right to hold office to men only. Subsection (b) contains a statement of Congress condemning the disenfranchisement of women in Saudi Arabia and calls on the Government of that country to promulgate a law that grants women the right to vote and run for office. Subsection (c) is a policy statement encouraging the President of the United States to take appropriate action, including a downgrading of diplomatic relations, to encourage countries that disenfranchise women to grant women the right to vote and hold office.

SUBTITLE B--SENSE OF CONGRESS PROVISIONS

Section 1111. Korean Fulbright Programs.

This section calls for participation in the Fulbright Program by students from throughout South Korea, who represent a broad range of educational institutions, educational programs and courses of study.

Section 1112. United States Relations with Taiwan.

This section supports the issuance of visas to high-level Taiwanese officials to visit the United States on official business. In 1994, the Immigration and Nationality Technical Corrections Act of 1994 (P.L. 103-416) made visas available for officials of Taiwan for specified circumstances.

Although diplomats traveling to the United States are routinely issued A-1 visas, Taiwanese officials are typically granted `transit visas,' such as in the case of President Chen Shui-bian's trip in May 2001. Likewise, Vice President Lu's 3-day visit to New York City in June 2002 was officially designated as a `stopover.'

Section 1113. Nuclear Proliferation and A.Q. Khan.

This section recognizes Dr. Abdul Qadeer Khan's role as a nuclear arms trafficker and China's involvement in the trafficking network by providing Khan with nuclear weapons designs. The arms trafficking network established by Khan assisted Iran, North Korea, and Libya with their nuclear weapons programs with uranium-enrichment technology. The provision states the sense of the Congress that the United States should continue efforts to dismantle the illegal international nuclear proliferation network created by Khan; counter the proliferation of WMD from Pakistan to other countries; request and be given access to interview Khan and his associates; and take the necessary steps to ensure that Pakistan has verifiably halted nuclear technology cooperation with any country.

Section 1114. Palestinian Textbooks.

This section expresses a sense of Congress regarding Palestinian education. It consists of four findings and a sense of Congress regarding Palestinian education. Subsection (a) finds the Palestinian Authority's (PA) ongoing textbook reform inadequate, since new textbooks include references to the Protocols of the Elders of Zion, fail to acknowledge Israel's existence, and fail to discuss Jews in sections dealing with religious tolerance. Subsection (b) is a sense of Congress stating that the Secretary of State should express in the strongest possible terms U.S. opposition to the inclusion in Palestinian textbooks of materials that foster anti-Semitism and rejection of peace with Israel. It also calls on the Secretary to express U.S. unwillingness to support, directly or indirectly, PA educational programs if the PA continues to include material which does not foster tolerance and peace.

Section 1115. International Convention Affirming the Human Rights and Dignity of Person with Disabilities.

This section calls upon the United States to play a leading role in the drafting of an international convention affirming the human rights and dignity of persons with disabilities. In addition, the provision urges the President to authorize the Secretary of State to include leaders of the U.S. disability rights movement in the U.S. delegation to the Sixth Session, and subsequent sessions, of the United Nations Ad Hoc Committee on a Comprehensive and Integral Convention on the Protection and Promotion of the Rights and Dignity of Persons with Disabilities.

Section 1116. Fulbright Scholarships for East Asia and the Pacific.

This section consists of two findings and a sense of the Congress regarding the Fulbright Scholarships to Pacific Islands students. The provision recognizes that of the 13,176 Fulbright Scholarships from 1949-2003 only 31 were awarded to Pacific Islands students and none of the 315 scholarships awarded in 2003-2004 went to those students. Furthermore, the provision requests the Department of State conduct a review and submit to Congress a report regarding the marginalization of Pacific Islands students in the awarding of Fulbright Scholarships.

Section 1117. Baku-Tbilisi-Ceyhan Energy Pipeline.

This section consists of six findings and a sense of Congress regarding the development of the east-west Baku-Tbilisi-Ceyhan (BTC) pipeline. The provision supports the development of oil and natural gas resources in the Caspian Sea region. Furthermore, the provision congratulates the people of the Caspian Sea region for the completion of the BTC pipeline, and expresses the support of the U.S. for the continuous development of the east-west corridor.

Section 1118. Legislation Requiring the Fair, Comprehensive, and Nondiscriminatory Restitution of Private Property Confiscated in Poland.

This section contains findings regarding the history of private property seizure by the Nazis in Poland and of the unsuccessful effort by the Polish Government to develop and enact legislation to compensate individuals whose property was seized. It also encourages the President and the Secretary of State to maintain a dialogue with the Government of Poland regarding this issue.

The United States has stressed that uniform, fair, non-discriminatory, and complete restitution is a prerequisite both to adequate establishment of the rule-of-law and to the safeguarding of religious and minority rights and freedoms. While there has been significant success in some instances in Central Europe, there are other areas where no progress has been registered. Poland has made significant progress on communal property returns. But, Poland has not enacted any legislation providing for the restitution of, or compensation for, wrongly confiscated private property, despite assurances from the highest levels of the government that it would do so. Although a draft law is currently pending before the Sejm, several other drafts have failed to pass the parliament or have been vetoed by the Polish President. It is therefore critical that the United States remain engaged on this issue until such time as an adequate private property law is adopted and fully implemented.

Section 1119. Child Labor Practices in the Cocoa Sectors of Cote D'Ivoire and Ghana.

This section expresses a sense of Congress that commends the Governments of Cote d'Ivoire and Ghana for taking tangible steps to address child labor in the cocoa industry, encourages them to consider as top priority child labor and forced labor issues, recognizes the voluntary protocol and ILO convention 182, encourages governments, NGOs, and the chocolate industry to continue developing a child labor monitoring system, and calls on the State Department to assist the two governments in preventing trafficking of persons into the cocoa fields and other industries in West Africa.

Section 1120. Contributions of Iraqi Kurds.

This section expresses a sense of Congress commending the Iraqi Kurds for their many contributions to, and sacrifices for, the cause of achieving a free, stable, and democratic Iraq. These contributions and sacrifices include their fighting alongside U.S. troops in the war against Saddam, where they suffered more casualties than any group other than the U.S. military. The Iraqi Kurdish leadership also has made constructive contributions toward establishing an effective Iraqi Government by participating fully in the central government and playing a central role in the drafting and passage of the Transitional Administrative Law. This provision also points out that the Iraqi Transitional Government and the Kurdistan Regional Government are expected to adhere to the highest standards of democratic governance, including through enforcement of full equality and rights for all religions and ethnic minorities, such as Assyrians and Turcomans, two groups who have at times complained of their treatment by the regional government in Iraqi Kurdistan.

Section 1121. Proliferation Security Initiative.

This section expresses a sense of Congress that: (1) the Secretary of State should strive to expand and strengthen the Proliferation Security Initiative announced on May 31, 2003, by President George W. Bush, placing particular emphasis on including countries outside of the North Atlantic Treaty Organization (NATO); and (2) the United States should seek an international instrument, in the form of a United Nations Security Council resolution, multilateral treaty, or other agreement, to enhance international co-operation with the Proliferation Security Initiative regarding the interdiction, seizure, and impoundment in international waters and airspace of illicit shipments of weapons of mass destruction and their delivery systems and of related materials, equipment, and technology.

Section 1122. Security of Nuclear Weapons and Materials.

This section expresses a sense of Congress that the President should seek to devise and implement standards to improve the security of nuclear weapons and materials by establishing with other willing nations a set of guidelines containing performance-based standards for the security of nuclear weapons and materials, as well as appropriate verification measures to assure ongoing compliance. The Committee also urges the President to work with those nations and the International Atomic Energy Agency (IAEA) to strongly encourage other nations to adopt and verifiably implement the standards and to complete the negotiation, adoption, and implementation of the IAEA's proposed series of documents related to the security of nuclear materials.

Section 1123. International Criminal Court and Genocide in Darfur, Sudan.

This section expresses a sense of Congress that, notwithstanding the American Servicemembers' Protection Act of 2002, the United States should render assistance to the International Criminal Court's (ICC) efforts to bring to justice foreign nationals accused of genocide, war crimes, or crimes against humanity in Darfur, Sudan, provided that legally binding assurances have been received from the U.N. Security Council or the ICC that no current or former United States Government official, employee, member of the United States Armed Forces, or United States national will be subject to prosecution by the ICC in connection with those efforts.

Section 1124. Action Against Al-Manar Television.

This section consists of two subsections. Subsection (a) points out that al-Manar television is owned and controlled by Hezbollah, which the Secretary of State designated a Foreign Terrorist Organization in 1996. Programming on al-Manar openly promotes hatred of Americans, Israelis and Jews, and glorifies and incites violence, including suicide bombings, against them. As background, it should be pointed out that al-Manar promotes hatred in a singularly overt, crude, and graphic fashion. This subsection further points out that al-Manar continues to broadcast to all of the Arab world, much of non-Arab Asia, most of Central and South America, and parts of Europe, with the cooperation of companies headquartered in Europe and the Arab world.

Subsection (b) expresses a sense of Congress that all countries that host satellite companies that broadcast al-Manar, on whose territory al-Manar may be viewed over media subject to government regulation, or where advertising or other financial support for al-Manar originates, should take action to suppress al-Manar's programming. This subsection also calls on the Arab States Broadcasting Union, which is part of the Arab League, to revoke al-Manar's membership status based on al-Manar's promotion of hatred and incitement to violence.

Section 1125. Stability and Security in Iraq.

This section expresses a sense of Congress that the President should transmit, as soon as possible, the plan to provide for a stable and secure Government of Iraq and an Iraqi military force that will allow the United States military presence in Iraq to be diminished. The section was modified, by unanimous consent, from the text originally laid before the Committee so that it no longer necessarily implies either the current existence or non-existence of such a plan. The Committee accepts that the Administration believes it has already provided a plan; many members share that view. The Administration has emphasized its commitment to the training and equipping of Iraqi security forces and the development of a viable political and economic structure in Iraq. Certain members, however, believe that the Administration's presentation does not add up to an overall plan or that the plan is not adequately clear or specific.

Section 1126. Property Expropriated by the Government of Ethiopia.

This section expresses a sense of Congress that the Government of Ethiopia should account for, compensate, or return to U.S. citizens, property that has been nationalized or otherwise seized by the Government of Ethiopia in contravention of international law.

International Federation of Accountants

Established in 1977 at the 11th World Conference of Accountants in Munich Germany, the International Federation of Accountants (IFAC) is comprised of 163 member organizations from 119 countries representing 2.5 million accountants from public practice, industry and commerce, government and academia. In 2004, IFAC and the United Nations Conference on Trade and Development (UNCTAD) entered into a Memorandum of Understanding whereby both organizations agreed to work on education, corporate governance, and other matters related to strengthening the worldwide accountancy profession and contributing to the development of strong international economies by establishing and promoting adherence to high-quality professional standards. IFAC accounting professionals visit the United States for conferences, study, and other issues related to IFAC's mission such as the recent MOU between IFAC and the United Nations. The Committee recommends that the Department conduct a review of the work performed by IFAC and submit a report to the Committee that: (a) describes whether and if so how IFAC's activities promote U.S. priorities relating to transparency and good governance and (b) provides a recommendation on whether IFAC should be designated as an international organization for purposes of applicable U.S. law.

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

CHAPTER 203 OF TITLE 18, UNITED STATES CODE

CHAPTER 203--ARREST AND COMMITMENT

Sec.
3041. Power of courts and magistrates.
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3064. Powers of special agents in the Department of State and the Foreign Service.

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Sec. 3064. Powers of special agents in the Department of State and the Foreign Service

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STATE DEPARTMENT BASIC AUTHORITIES ACT OF 1956

TITLE I--BASIC AUTHORITIES GENERALLY

ORGANIZATION OF THE DEPARTMENT OF STATE

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EXPENSES RELATING TO PARTICIPATION IN ARBITRATIONS OF CERTAIN DISPUTES

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DEFENSE TRADE CONTROLS REGISTRATION FEES

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FOREIGN SERVICE ACT OF 1980

TABLE OF CONTENTS
Sec. 1. Short title.
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Chapter 4--COMPENSATION
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Sec. 415. Overseas comparability pay adjustment.
Chapter 5--CLASSIFICATION OF POSITIONS AND ASSIGNMENTS
Sec. 501. Classification of positions.
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[Struck out->][ Sec. 503. Assignments to agencies, international organizations, and other bodies. ][<-Struck out]
Sec. 503. Assignments to agencies, international organizations, foreign governments, or other bodies.
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Sec. 506. Fellowship of Hope Program.
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Chapter 6--PROMOTION AND RETENTION
Sec. 601. Promotions.
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[Struck out->][ Sec. 610. Separation for cause. ][<-Struck out]
Sec. 610. Separation for cause; suspension.

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CHAPTER 3--APPOINTMENTS

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CHAPTER 4--COMPENSATION

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SEC. 415. OVERSEAS COMPARABILITY PAY ADJUSTMENT.

CHAPTER 5--CLASSIFICATION OF POSITIONS AND ASSIGNMENTS

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SEC. 506. FELLOWSHIP OF HOPE.