[Appendix, Budget of the United States Government, Fiscal Year 1998]
[Page 71-78]


 
                    INTERNATIONAL SECURITY ASSISTANCE

                              Federal Funds

General and special funds:

                          Economic Support Fund

    For necessary expenses to carry out the provisions of chapter 4 of 
part II, [$2,343,000,000] $2,497,600,000, to remain available until 
[September 30, 1998: Provided, That of the funds appropriated under this 
heading, not less than $1,200,000,000 shall be available only for 
Israel, which sum shall be available on a grant basis as a cash transfer 
and shall be disbursed within thirty days of enactment of this Act or by 
October 31, 1996, whichever is later: Provided further, That not less 
than $815,000,000 shall be available only for Egypt, which sum shall be 
provided on a grant basis, and of which sum cash transfer assistance may 
be provided, with the understanding that Egypt will undertake 
significant economic reforms which are additional to those which were 
undertaken in previous fiscal years, and of which not less than 
$200,000,000 shall be provided as Commodity Import Program assistance: 
Provided further, That in exercising the authority to provide cash 
transfer assistance for Israel and Egypt, the President shall ensure 
that the level of such assistance does not cause an adverse impact on 
the total level of nonmilitary exports from the United States to each 
such country: Provided further, That it is the sense of the Congress 
that the recommended levels of assistance for Egypt and Israel are based 
in great measure upon their continued participation in the Camp David 
Accords and upon the Egyptian-Israeli peace treaty: Provided further, 
That none of the funds appropriated under this heading shall be made 
available for Zaire.] expended. (Foreign Operations, Export Financing, 
and Related Programs Appropriation Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1037-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations.................       2,307       2,650       2,445
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................         208         287
22.00 New budget authority (gross)......       2,342       2,363       2,445
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          45
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,595       2,650       2,445
23.95 New obligations...................      -2,307      -2,650      -2,445
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....         287
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................       2,360       2,363       2,498
41.00   Transferred to other accounts...         -19                     -53
                                           ---------   ---------  ----------
43.00     Appropriation (total).........       2,341       2,363       2,445
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       2,342       2,363       2,445
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation       2,775       2,799       2,984

[[Page 72]]

73.10 New obligations...................       2,307       2,650       2,445
73.20 Total outlays (gross).............      -2,238      -2,465      -2,423
73.45 Adjustments in unexpired accounts.         -45
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation       2,799       2,984       3,006
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       1,248       1,281       1,287
86.93 Outlays from current balances.....         990       1,184       1,136
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,238       2,465       2,423
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.45   Offsetting collections (cash) 
          from: Offsetting governmental 
          collections...................          -1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       2,341       2,363       2,445
90.00 Outlays...........................       2,237       2,465       2,423
---------------------------------------------------------------------------

    This account is used to provide economic assistance to selected 
countries in support of U.S. efforts to promote stability and U.S. 
security interests in strategic regions of the world.


               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1037-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

      Direct obligations:

25.2    Other services..................           5           5           5
41.0    Grants, subsidies, and 
          contributions.................       2,257       2,645       2,440
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..       2,262       2,650       2,445
41.0  Allocation Account: Grants, 
        subsidies, and contributions....          45
                                           ---------   ---------  ----------
99.9    Total obligations...............       2,307       2,650       2,445
---------------------------------------------------------------------------

                                <F-dash>

                   Foreign Military Financing Program

    For expenses necessary for grants to enable the President to carry 
out the provisions of section 23 of the Arms Export Control Act, 
[$3,164,000,000] $3,274,250,000: Provided, [That of the funds 
appropriated by this paragraph not less than $1,800,000,000 shall be 
available for grants only for Israel, and not less than $1,300,000,000 
shall be available for grants only for Egypt: Provided further, That the 
funds appropriated by this paragraph for Israel shall be disbursed 
within thirty days of enactment of this Act or by October 31, 1996, 
whichever is later: Provided further, That to the extent that the 
Government of Israel requests that funds be used for such purposes, 
grants made available for Israel by this paragraph shall, as agreed by 
Israel and the United States, be available for advanced weapons systems, 
of which not less than $475,000,000 shall be available for the 
procurement in Israel of defense articles and defense services, 
including research and development: Provided further, That of the funds 
made available under this paragraph, $30,000,000 shall be available for 
assistance on a grant basis for Poland, Hungary, and the Czech Republic 
to carry out title II of Public Law 103-477 and section 585 of Public 
Law 104-107: Provided further,] That funds made available under this 
paragraph shall be nonrepayable notwithstanding any requirement in 
section 23 of the Arms Export Control Act[: Provided further, That, for 
the purpose only of providing support for NATO expansion and the Warsaw 
Initiative Program, of the funds appropriated by this Act under the 
headings ``Assistance for Eastern Europe and the Baltic States'' and 
``Assistance for the New Independent States of the Former Soviet 
Union'', up to a total of $7,000,000 may be transferred, notwithstanding 
any other provision of law, to the funds appropriated under this 
paragraph: Provided further, That none of the funds made available under 
this heading shall be available for any non-NATO country participating 
in the Partnership for Peace Program except through the regular 
notification procedures of the Committees on Appropriations].
    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, of direct loans authorized by section 23 of the Arms Export 
Control Act as follows: cost of direct loans, [$60,000,000] $66,000,000: 
Provided, That these funds are available to subsidize gross obligations 
for the principal amount of direct loans of not to exceed [$540,000,000: 
Provided further, That the rate of interest charged on such loans shall 
be not less than the current average market yield on outstanding 
marketable obligations of the United States of comparable maturities: 
Provided further, That of the funds appropriated under this paragraph 
$20,000,000 shall be made available to Poland, Hungary, and the Czech 
Republic: Provided further, That funds appropriated under this heading 
shall be made available for Greece and Turkey only on a loan basis, and 
the principal amount of direct loans for each country shall not exceed 
the following: $122,500,000 only for Greece and $175,000,000 only for 
Turkey] $699,500,000.
    None of the funds made available under this heading shall be 
available to finance the procurement of defense articles, defense 
services, or design and construction services that are not sold by the 
United States Government under the Arms Export Control Act unless the 
foreign country proposing to make such procurements has first signed an 
agreement with the United States Government specifying the conditions 
under which such procurements may be financed with such funds: Provided, 
[That all country and funding level increases in allocations shall be 
submitted through the regular notification procedures of section 515 of 
this Act: Provided further,] That funds made available under this 
heading shall be obligated upon apportionment in accordance with 
paragraph (5)(C) of title 31, United States Code, section 1501(a): 
[Provided further, That none of the funds appropriated under this 
heading shall be available for Zaire, Sudan, Liberia, and Guatemala:] 
Provided further, That funds made available under this heading may be 
used, notwithstanding any other provision of law, for activities related 
to the clearance of landmines and unexploded ordnance, and may include 
activities implemented through nongovernmental and international 
organizations: Provided further, That only those countries for which 
assistance was justified for the ``Foreign Military Sales Financing 
Program'' in the fiscal year 1989 congressional presentation for 
security assistance programs may utilize funds made available under this 
heading for procurement of defense articles, defense services or design 
and construction services that are not sold by the United States 
Government under the Arms Export Control Act: Provided further, That, 
subject to the regular notification procedures of the Committees on 
Appropriations, funds made available under this heading for the cost of 
direct loans may also be used to supplement the funds available under 
this heading for grants, and funds made available under this heading for 
grants may also be used to supplement the funds available under this 
heading for the cost of direct loans: Provided further, That funds 
appropriated under this heading shall be expended at the minimum rate 
necessary to make timely payment for defense articles and services: 
Provided further, That not more than $23,250,000 of the funds 
appropriated under this heading may be obligated for necessary expenses, 
including the purchase of passenger motor vehicles for replacement only 
for use outside of the United States, for the general costs of 
administering military assistance and sales[: Provided further, That not 
more than $355,000,000 of funds realized pursuant to section 21(e)(1)(A) 
of the Arms Export Control Act may be obligated for expenses incurred by 
the Department of Defense during fiscal year 1997 pursuant to section 
43(b) of the Arms Export Control Act, except that this limitation may be 
exceeded only through the regular notification procedures of the 
Committees on Appropriations]. (Foreign Operations, Export Financing, 
and Related Programs Appropriation Act, 1997.)
    [For an additional amount for grants to enable the President to 
carry out the provisions of section 23 of the Arms Export Control Act, 
$60,000,000.] (Omnibus Consolidated Appropriations Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1082-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Country programs..................       3,269       3,201       3,251
00.02 Administrative costs..............          23          23          23
                                           ---------   ---------  ----------
10.00   Total obligations...............       3,292       3,224       3,274
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       3,292       3,224       3,274

[[Page 73]]

23.95 New obligations...................      -3,292      -3,224      -3,274
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................       3,278       3,224       3,274
42.00 Transferred from other accounts...          14
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........       3,292       3,224       3,274
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       3,292       3,224       3,274
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation       1,436       1,781       1,845
73.10 New obligations...................       3,292       3,224       3,274
73.20 Total outlays (gross).............      -2,946      -3,160      -3,453
73.40 Adjustments in expired accounts...          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation       1,781       1,845       1,666
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       1,866       1,829       2,535
86.93 Outlays from current balances.....       1,080       1,331         918
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,946       3,160       3,453
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       3,292       3,224       3,274
90.00 Outlays...........................       2,946       3,160       3,453
---------------------------------------------------------------------------

    The foreign military financing (FMF) program enables selected 
friendly and allied countries to improve their ability to defend 
themselves by financing their acquisition of U.S. military articles, 
services, and training. This account provides the grant financing 
portion of the FMF program. Credit financing, in the form of direct 
loans, is provided in the FMF loan program account.


               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1082-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
25.2  Other services....................          23          23          23
41.0  Grants, subsidies, and 
        contributions...................       3,269       3,201       3,251
                                           ---------   ---------  ----------
99.9    Total obligations...............       3,292       3,224       3,274
---------------------------------------------------------------------------

                                <F-dash>

              International Military Education and Training

    For necessary expenses to carry out the provisions of section 541 of 
the Foreign Assistance Act of 1961, $50,000,000 [$43,475,000: Provided, 
That none of the funds appropriated under this heading shall be 
available for Zaire and Guatemala: Provided further, That funds 
appropriated under this heading for grant financed military education 
and training for Indonesia may only be available for expanded 
international military education and training]. (Foreign Operations, 
Export Financing, and Related Programs Appropriation Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1081-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations.................          39          43          50
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          39          43          50
23.95 New obligations...................         -39         -43         -50
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          39          43          50
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation          23          27          35
73.10 New obligations...................          39          43          50
73.20 Total outlays (gross).............         -30         -35         -51
73.40 Adjustments in expired accounts...          -5
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation          27          35          34
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          18          22          25
86.93 Outlays from current balances.....          12          13          26
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          30          35          51
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          39          43          50
90.00 Outlays...........................          30          35          51
---------------------------------------------------------------------------

    This assistance provides grant military education and training to 
military and civilian students from foreign countries. In addition to 
helping these countries move toward self-sufficiency in defending 
themselves, this program also exposes foreign students to American 
democratic values, particularly military respect for civilian rule and 
for individual and human rights.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1081-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
26.0  Supplies and materials............           4           4           5
41.0  Grants, subsidies, and 
        contributions...................          34          38          44
99.5  Below reporting threshold.........           1           1           1
                                           ---------   ---------  ----------
99.9    Total obligations...............          39          43          50
---------------------------------------------------------------------------

                                <F-dash>

                  military-to-military contact program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1084-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation           6           3
73.20 Total outlays (gross).............          -2          -3
73.40 Adjustments in expired accounts...          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation           3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           2           3
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           2           3
---------------------------------------------------------------------------

    This program financed expenses associated with direct contacts 
between U.S. military and the military establishments of Eastern Europe 
and the Baltic and Pacific regions. These contacts were designed to 
promote the development of foreign military that are non-political, 
loyal to civilian constitutional authority, structured for defensive 
needs, and respectful of human and individual rights.


                                <F-dash>

                         Peacekeeping Operations

    For necessary expenses to carry out the provisions of section 551 of 
the Foreign Assistance Act of 1961, [$65,000,000] $90,000,000[: 
Provided, That none of the funds appropriated under this paragraph shall 
be obligated or expended except as provided through the regular 
notification procedures of the Committees on Appropriations]. (Omnibus 
Consolidated Appropriations Act, 1997.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1032-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................          96          65          90
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          96          65          90
23.95 New obligations...................         -96         -65         -90
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          70          65          90

[[Page 74]]

42.00 Transferred from other accounts...          26
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........          96          65          90
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          96          65          90
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation          29          50          40
73.10 New obligations...................          96          65          90
73.20 Total outlays (gross).............         -73         -75         -82
73.40 Adjustments in expired accounts...          -1
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation          50          40          48
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          50          45          62
86.93 Outlays from current balances.....          23          30          20
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          73          75          82
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          96          65          90
90.00 Outlays...........................          73          75          82
---------------------------------------------------------------------------

    This account funds U.S. assistance to international efforts to 
monitor and maintain the peace in areas of special concern to the United 
States and to other related programs carried out in furtherance of the 
national security interests of the United States. In 1997, contributions 
are planned for the Multinational Force and Observers in the Sinai, 
Europe, Africa and other regional programs, and other activities.


                                <F-dash>

                 Counter-Terrorism Assistance to Israel

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1089-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................          50
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          50
23.95 New obligations...................         -50
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          50
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................          50
73.20 Total outlays (gross).............         -50
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          50
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          50
90.00 Outlays...........................          50
---------------------------------------------------------------------------

    This program was created to help Israel counter terrorist threats to 
its security.


                                <F-dash>

    [Nonproliferation, Anti-Terrorism, Demining and Related Programs]

    [For necessary expenses for nonproliferation, anti-terrorism and 
related programs and activities, $133,000,000, to carry out the 
provisions of chapter 8 of part II of the Foreign Assistance Act of 1961 
for anti-terrorism assistance, section 504 of the FREEDOM Support Act 
for the Nonproliferation and Disarmament Fund, section 23 of the Arms 
Export Control Act for demining activities, notwithstanding any other 
provision of law, including activities implemented through 
nongovernmental and international organizations, section 301 of the 
Foreign Assistance Act of 1961 for a voluntary contribution to the 
International Atomic Energy Agency (IAEA) and a voluntary contribution 
to the Korean Peninsula Energy Development Organization (KEDO), and for 
the acquisition and provision of goods and services, or for grants to 
Israel necessary to support the eradication of terrorism in and around 
Israel: Provided, That of this amount not to exceed $15,000,000, to 
remain available until expended, may be made available for the 
Nonproliferation and Disarmament Fund, notwithstanding any other 
provision of law, to promote bilateral and multilateral activities 
relating to nonproliferation and disarmament: Provided further, That 
such funds may also be used for such countries other than the new 
independent states of the former Soviet Union and international 
organizations when it is in the national security interest of the United 
States to do so: Provided further, That such funds shall be subject to 
the regular notification procedures of the Committees on Appropriations: 
Provided further, That funds appropriated under this heading may be made 
available for the International Atomic Energy Agency only if the 
Secretary of State determines (and so reports to the Congress) that 
Israel is not being denied its right to participate in the activities of 
that Agency: Provided further, That not to exceed $25,000,000 may be 
made available to the Korean Peninsula Energy Development Organization 
(KEDO) only for the administrative expenses and heavy fuel oil costs 
associated with the Agreed Framework: Provided further, That such funds 
may be obligated to KEDO only if, prior to such obligation of funds, the 
President certifies and so reports to Congress that (1)(A) the United 
States is taking steps to assure that progress is made on the 
implementation of the January 1, 1992, Joint Declaration on the 
Denuclearization of the Korean Peninsula and the implementation of the 
North-South dialogue, and (B) North Korea is complying with the other 
provisions of the Agreed Framework between North Korea and the United 
States and with the Confidential Minute; (2) North Korea is cooperating 
fully in the canning and safe storage of all spent fuel from its 
graphite-moderated nuclear reactors and that such canning and safe 
storage is scheduled to be completed by the end of fiscal year 1997; and 
(3) North Korea has not significantly diverted assistance provided by 
the United States for purposes for which it was not intended: Provided 
further, That the President may waive the certification requirements of 
the preceding proviso if the President determines that it is vital to 
the national security interests of the United States: Provided further, 
That no funds may be obligated for KEDO until 30 calendar days after 
submission to Congress of the waiver permitted under the preceding 
proviso: Provided further, That before obligating any funds for KEDO, 
the President shall report to Congress on (1) the cooperation of North 
Korea in the process of returning to the United States the remains of 
United States military personnel who are listed as missing in action as 
a result of the Korean conflict (including conducting joint field 
activities with the United States); (2) violations of the military 
armistice agreement of 1953; (3) the actions which the United States is 
taking to assure that North Korea is consistently taking steps to 
implement the Joint Declaration on Denuclearization of the Korean 
Peninsula and engage in North-South dialogue; and (4) all instances of 
non-compliance with the Agreed Framework between North Korea and the 
United States and the Confidential Minute, including diversion of heavy 
fuel oil: Provided further, That the obligation of such funds shall be 
subject to the regular notification procedures of the Committees on 
Appropriations: Provided further, That the Secretary of State shall 
submit to the appropriate congressional committees an annual report (to 
be submitted with the annual presentation for appropriations) providing 
a full and detailed accounting of the fiscal year request for the United 
States contribution to KEDO, the expected operating budget of the Korean 
Peninsula Energy Development Organization, to include proposed annual 
costs associated with heavy fuel oil purchases and other related 
activities, and the amount of funds pledged by other donor nations and 
organizations to support KEDO activities on a per country basis. 
(Foreign Operations, Export Financing, and Related Programs 
Appropriation Act, 1997.)
    For an additional amount for nonproliferation, anti-terrorism and 
related programs and activities, $18,000,000, to carry out the 
provisions of chapter 8 of part II of the Foreign Assistance Act of 1961 
for anti-terrorism assistance.] (Omnibus Consolidated Appropriations 
Act, 1997.)

[[Page 75]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1075-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................                     140          11
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................                                  11
22.00 New budget authority (gross)......                     151
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                     151          11
23.95 New obligations...................                    -140         -11
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....                      11
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................                     151
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation                                  74
73.10 New obligations...................                     140          11
73.20 Total outlays (gross).............                     -66         -39
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation                      74          46
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                      66
86.93 Outlays from current balances.....                                  39
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                      66          39
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                     151
90.00 Outlays...........................                      66          39
---------------------------------------------------------------------------

                                <F-dash>

            Assistance for Relocation of Facilities in Israel

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1088-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...                       2
68.49   Portion applied to liquidate 
          contract authority............                      -2
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.49 Unpaid obligations, start of year: 
        Obligated balance: Contract 
        authority.......................           4           4
73.20 Total outlays (gross).............                      -2
73.40 Adjustments in expired accounts...                      -2
74.49 Unpaid obligations, end of year: 
        Obligated balance: Contract 
        authority.......................           4
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....                       2
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....                      -2
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................                      -2
90.00 Outlays...........................
---------------------------------------------------------------------------

            Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1088-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
0100  Balance, start of year............           4           4
0360  Adjustments in expired accounts...                      -2
0500  Offsetting collections applied to 
        liquidate contract authority....                      -2
0700  Balance, end of year..............           4
---------------------------------------------------------------------------


    This account shows financial transactions related to the 
construction of two airfields in Israel that were part of the Camp David 
agreement.


                                <F-dash>

                  Nonproliferation and Disarmament Fund

                    For necessary expenses of the Nonproliferation and 
            Disarmament Fund, to carry out activities contained in 
            section 504 of the FREEDOM Support Act, $15,000,000, to 
            remain available until expended: Provided, That such funds 
            may be used for countries other than the new independent 
            states of the former Soviet Union and international 
            organizations when it is in the national security interest 
            of the United States to do so: Provided further, That funds 
            appropriated under this heading may be made available 
            notwithstanding any other provision of law: Provided 
            further, That funds appropriated under this heading shall be 
            subject to the regular notification procedures of the 
            Committees on Appropriations.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1071-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Education and training............           1           3           2
00.02 Destruction and conversion 
        assistance......................           5           2           3
00.03 Enforcement/interdiction 
        assistance......................           4           6           5
00.04 Safeguards/verification assistance                       4           4
00.05 Administration....................                                   1
00.06 International Science and 
        Technology Centers..............          14           1
                                           ---------   ---------  ----------
10.00   Total obligations...............          24          16          15
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................           4          16
22.00 New budget authority (gross)......          36                      15
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          40          16          15
23.95 New obligations...................         -24         -16         -15
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....          16
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          20                      15
42.00   Transferred from other accounts.          15
                                           ---------   ---------  ----------
43.00     Appropriation (total).........          35                      15
      Permanent:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          36                      15
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation          13          13          14
73.10 New obligations...................          24          16          15
73.20 Total outlays (gross).............         -24         -15         -16
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation          13          14          13
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          19                       4
86.93 Outlays from current balances.....           4          15          12
86.97 Outlays from new permanent 
        authority.......................           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          24          15          16
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          35                      15
90.00 Outlays...........................          23          15          16
---------------------------------------------------------------------------

    This account is used to provide financial and technical assistance 
to support nonproliferation and disarmament efforts in foreign 
countries, including education and training, elimination of weapons of 
mass destruction, and development of export control capabilities in 
foreign countries.

[[Page 76]]

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1071-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
22.0  Transportation of things..........           1
25.2  Other services....................           9          15          15
41.0  Grants, subsidies, and 
        contributions...................          14           1
                                           ---------   ---------  ----------
99.9    Total obligations...............          24          16          15
---------------------------------------------------------------------------

                                <F-dash>

Credit accounts:

             Foreign Military Financing Loan Program Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1085-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............          59          60          66
00.05 Reestimates of direct loan subsidy                      23
00.06 Interest on reestimates of direct 
        loan subsidy....................                       1
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................          59          84          66
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          59          84          66
23.95 New obligations...................         -59         -84         -66
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          64          60          66
41.00   Transferred to other accounts...          -5
                                           ---------   ---------  ----------
43.00     Appropriation (total).........          59          60          66
      Permanent:

60.05   Appropriation (indefinite)......                      24
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          59          84          66
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation         190         184         175
73.10 New obligations...................          59          84          66
73.20 Total outlays (gross).............         -66         -92         -52
74.40 Unpaid obligations, end of year: 
        Obligated balance: Appropriation         184         175         189
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority                       4           5
86.93 Outlays from current balances.....          66          64          47
86.97 Outlays from new permanent 
        authority.......................                      24
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          66          92          52
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          59          84          66
90.00 Outlays...........................          66          92          52
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this account 
records the subsidy costs associated with the direct loans obligated for 
foreign military financing committed in 1992 and beyond, as well as the 
administrative expenses of this program. The foreign military financing 
credit program provides loans that finance sales of defense articles, 
defense services, and design and construction services to foreign 
countries and international organizations. The subsidy amounts are 
estimated on a present value basis; the administrative expenses are 
estimated on a cash basis. 


Summary of Loan Levels, Subsidy Budget Authority and Outlays by Program (in 
                            millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1085-0-1-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................         544         540         700
                                           ---------   ---------  ----------
1159    Total direct loan levels........         544         540         700
    Direct loan subsidy (in percent):
1320  Subsidy rate......................       10.84       11.11        9.44
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...       10.84       11.11        9.44
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........          59          60          66
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..          59          60          66
    Direct loan subsidy outlays:
1340  Subsidy outlays...................          66          68          52
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........          66          68          52
---------------------------------------------------------------------------

                                <F-dash>

        Foreign Military Financing Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4122-0-3-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................         544         540         700
00.02 Interest on Treasury borrowing....          77          93         124
00.03 Payment of downward reestimate of 
        subsidy to receipt account......                      10
00.04 Payment of interest on downward 
        reestimate of subsidy to receipt 
        account.........................                       1
                                           ---------   ---------  ----------
10.00   Total obligations...............         621         644         824
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...         621         644         824
23.95 New obligations...................        -621        -644        -824
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..         493         480         634
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         140         257         370
68.10   Receivables from program account          -7          -9          14
68.47   Portion applied to debt 
          reduction.....................          -5         -84        -194
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         128         164         190
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................         621         644         824
----------------------------------------------------------------------------

    Change in unpaid obligations:
      Unpaid obligations, start of year:

72.90   Obligated balance: Obligated 
          balance.......................       1,797       1,789       1,770
72.95   Receivables from program account         190         183         174
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............       1,987       1,972       1,944
73.10 New obligations...................         621         644         824
73.20 Total financing disbursements 
        (gross).........................        -636        -673        -683
      Unpaid obligations, end of year:

74.90   Obligated balance: Obligated 
          balance.......................       1,789       1,770       1,895
74.95   Receivables from program account         183         174         188
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................       1,972       1,944       2,083
87.00 Total financing disbursements 
        (gross).........................         636         673         683
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Federal sources.............         -94         -69         -52
88.00       Federal sources.............                     -24
88.40     Non-Federal sources...........         -46        -164        -318
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -140        -257        -370
88.95 Change in receivables from program 
        accounts........................           7           9         -14
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         488         396         440
90.00 Financing disbursements...........         496         416         313
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4122-0-3-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         544         540         700
                                           ---------   ---------  ----------

[[Page 77]]


1150    Total direct loan obligations...         544         540         700
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         539       1,098       1,643
1231  Disbursements: Direct loan 
        disbursements...................         559         568         560
1251  Repayments: Repayments and 
        prepayments.....................                     -23        -160
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       1,098       1,643       2,043
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from direct loans for foreign military financing obligated in 
1992 and beyond. The foreign military financing credit program provides 
loans that finance sales of defense articles, defense services, and 
design and construction services to foreign countries and international 
organizations. The amounts in this account are a means of financing and 
are not included in budget totals. 


                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   11-4122-0-3-152    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         310            160
        Investments in US securities:
1106      Receivables, net..............         190            184           175            188
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..         539          1,098         1,643          2,043
1402    Interest receivable.............           9             12            18             22
1405    Allowance for subsidy cost (-)..         -71           -143          -212           -264
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         477            967         1,449          1,801
1901  Other Federal assets: Other assets       1,488          1,630         1,542          1,573
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,465          2,941         3,166          3,562
    LIABILITIES:
      Federal liabilities:

2103    Debt............................         788          1,134         1,702          2,220
2105    Other...........................       1,487          1,623         1,289          1,154
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       2,275          2,757         2,991          3,374
    NET POSITION:
3100  Appropriated capital..............         190            184           175            188
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         190            184           175            188
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,465          2,941         3,166          3,562
-----------------------------------------------------------------------------------------------

                                <F-dash>

                Foreign Military Loan Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4121-0-3-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program: Guarantee claims..          59          52          50
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          33.0).........................          59          52          50
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          59          52          50
23.95 New obligations...................         -59         -52         -50
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.05 Appropriation (indefinite)........          24          16          28
      Spending authority from offsetting 
          collections:

        Offsetting collections (cash):
68.00     Offsetting collections (cash).         289         235         241
68.00     Offsetting collections (cash): 
            Debt Reduction..............                      20
68.27   Capital transfer to general fund          -7         -16
68.47   Portion applied to debt 
          reduction.....................        -246        -203        -219
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................          36          36          22
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          59          52          50
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Appropriation          11
73.10 New obligations...................          59          52          50
73.20 Total outlays (gross).............         -70         -52         -50
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          59          52          50
86.98 Outlays from permanent balances...          11
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          70          52          50
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Debt 
            Reduction...................                     -20
          Non-Federal sources:
88.40       Non-Federal sources--Claims.         -43         -36         -22
88.40       Non-Federal sources--FFB 
              Loans.....................        -246        -199        -219
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -289        -255        -241
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................        -229        -203        -191
90.00 Outlays...........................        -218        -203        -191
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4121-0-3-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       7,911       7,021       6,096
1231  Disbursements: Direct loan 
        disbursements...................          35          14           9
      Repayments:

        Repayments and prepayments:
1251      Repayments and prepayments....        -950        -872        -776
1251      Repayments and prepayments: 
            Debt Reduction..............                     -20
1261  Adjustments: Capitalized interest.          25
1263  Write-offs for default: Direct 
        loans...........................                     -47
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       7,021       6,096       5,329
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4121-0-3-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       6,610       6,129       5,694
2251  Repayments and prepayments........        -481        -431        -385
2261  Adjustments: Terminations for 
        default that result in loans 
        receivable......................                      -4          -4
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       6,129       5,694       5,305
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       5,516       5,122       4,744
----------------------------------------------------------------------------

    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2331    Disbursements for guaranteed 
          loan claims...................          26          34          42
2364    Other adjustments, net..........         -26         -34         -42
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this account 
records all cash flows to and from the Government resulting from direct 
loans obligated and loan guarantees for foreign military financing 
committed prior to 1992. This account is shown on a cash basis and 
reflects the transactions resulting from loans provided to finance sales 
of defense articles, defense services, and design and construction 
services to foreign countries and international organizations. All new 
foreign military financing credit activity in 1992 and beyond (including 
modifications of direct loans or loan guarantees that resulted from 
obligations or commitments in any year) is recorded in corresponding 
program and financing accounts. 

[[Page 78]]

                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   11-4121-0-3-152    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
0111  Revenue...........................        -105            282           277            260
0112  Expense...........................        -365           -293          -277           -260
                                        ------------ --------------  ------------  -------------
0119  Net income or loss (-)............        -470            -11
                                        ------------ --------------  ------------  -------------
0199  Net income or loss................        -470            -11
-----------------------------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   11-4121-0-3-152    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          11
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       7,911          7,021         6,096          5,329
1602    Interest receivable.............         579            655           574            496
1604    Direct loans and interest 
          receivable, net...............       8,491          7,676         6,670          5,825
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       8,491          7,676         6,670          5,825
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       8,501          7,676         6,670          5,825
    LIABILITIES:
      Federal liabilities:

2102    Interest payable................          56             51            48             44
2103    Debt............................       3,493          3,247         3,048          2,829
2105    Other...........................       4,333          3,767         3,111          2,493
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       7,882          7,065         6,207          5,366
    NET POSITION:
3100  Appropriated capital..............          11
3300  Cumulative results of operations..         608            611           463            459
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         619            611           463            459
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       8,501          7,676         6,670          5,825
-----------------------------------------------------------------------------------------------

                                <F-dash>

                Military Debt Reduction Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4174-0-3-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Payment to liquidating account....                      20
00.02 Interest on debt to Treasury......                       1           1
                                           ---------   ---------  ----------
10.00   Total obligations...............                      21           1
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...                      21           1
23.95 New obligations...................                     -21          -1
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..                      18           1
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............                       3
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................                      21           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................                      21           1
73.20 Total financing disbursements 
        (gross).........................                     -21          -1
87.00 Total financing disbursements 
        (gross).........................                      21           1
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                      -3
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                      18           1
90.00 Financing disbursements...........                      18           1
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4174-0-3-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
                                           ---------   ---------  ----------
1150    Total direct loan obligations...
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........                                  20
1232  Disbursements: Purchase of loans 
        assets from the public..........                      20
                                           ---------   ---------  ----------
1290    Outstanding, end of year........                      20          20
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from restructuring foreign military loans.


                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   11-4174-0-3-152    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..                                       20             20
1405    Allowance for subsidy cost (-)..                                       -3             -3
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....                                       17             17
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                                       17             17
    LIABILITIES:
2103  Federal liabilities: Debt.........                                       17             17
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............                                       17             17
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position                                       17             17
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4174-0-3-152      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
33.0  Investments and loans.............                      20
43.0  Interest and dividends............                       1           1
                                           ---------   ---------  ----------
99.9    Total obligations...............                      21           1
---------------------------------------------------------------------------

                                <F-dash>