[Appendix, Budget of the United States Government, Fiscal Year 1999]
[Page 927-934]
[DOCID:1999_app_iap-1]
From the Budget of the U.S., FY 1999 Online via GPO Access
[wais.access.gpo.gov]



[[Page 927]]

                    INTERNATIONAL ASSISTANCE PROGRAMS

 
                    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, [$2,400,000,000] $2,513,600,000, to remain available until 
[September 30, 1999: 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 30 days of enactment of this Act or by 
October 31, 1997, whichever is later: Provided further, That not less 
than $815,000,000 shall be available only for Egypt, which sum shall be 
provided on a grant basis, and of which sum cash transfer assistance may 
be provided, with the understanding that Egypt will undertake 
significant economic reforms which are additional to those which were 
undertaken in previous fiscal years: Provided further, That in 
exercising the authority to provide cash transfer assistance for Israel, 
the President shall ensure that the level of such assistance does not 
cause an adverse impact on the total level of nonmilitary exports from 
the United States to such country: Provided further, That of the funds 
appropriated under this heading, not less than $150,000,000 shall be 
made available for Jordan: Provided further, That of the funds made 
available under this heading in previous Acts making appropriations for 
foreign operations, export financing, and related programs, 
notwithstanding any provision in any such heading in such previous Acts, 
up to $116,000,000 may be allocated or made available for programs and 
activities under this heading including the Middle East Peace and 
Stability Fund: Provided further, That in carrying out the previous 
proviso, the President should seek to ensure to the extent feasible that 
not more than 1 percent of the amount specified in section 586 of this 
Act should be derived from funds that would otherwise be made available 
for any single country: Provided further, That funds provided for the 
Middle East Peace and Stability Fund by a country in the region under 
the authority of section 635(d) of the Foreign Assistance Act of 1961, 
and funds made available for Jordan following the date of enactment of 
this Act from previous Acts making appropriations for foreign 
operations, export financing, and related programs, shall count toward 
meeting the earmark contained in the fourth proviso under this heading: 
Provided further, That up to $10,000,000 of funds under this heading in 
previous foreign operations, export financing, and related programs 
appropriations Acts that were reprogrammed for Jordan during fiscal year 
1997 shall also count toward such earmark: Provided further, That, in 
order to facilitate the implementation of the fourth proviso under this 
heading, the requirement of section 515 of this Act or any similar 
provision of law shall not apply to the making available of funds 
appropriated for a fiscal year for programs, projects, or activities 
that were justified for another fiscal year: Provided further, That for 
fiscal year 1998 such portions of the notification required under 
section 653 of the Foreign Assistance Act of 1961 that relate to the 
Middle East may be submitted to the Congress as soon as practicable, but 
no later than March 1, 1998: Provided further, That during fiscal year 
1998, of the local currencies generated from funds made available under 
this heading for Guatemala by this Act and prior appropriations Acts, 
the United States and Guatemala may jointly program the Guatemala 
quetzales equivalent of a total of up to $10,000,000 for the purpose of 
retiring the debt owed by universities in Guatemala to the Inter-
American Development Bank] expended, of which not to exceed $10,000,000 
may be used, notwithstanding any other provision of law, to support 
victims of and programs related to the Holocaust: Provided further, That 
notwithstanding any provision in this or any other Act, funds provided 
under this heading may be used to support the Bank for Economic 
Cooperation and Development in the Middle East and North Africa. 
(Foreign Operations, Export Financing, and Related Programs 
Appropriation Act, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1037-0-1-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations.................       2,420       2,662       2,514
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......         287         242
22.00 New budget authority (gross)......       2,385       2,420       2,514
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          16
22.21 Unobligated balance transferred to 
        other accounts..................          -6
22.30 Unobligated balance expiring......         -20
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,662       2,662       2,514
23.95 New obligations...................      -2,420      -2,662      -2,514
24.40 Unobligated balance available, end 
        of year: Uninvested.............         242
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................       2,363       2,420       2,514
41.00 Transferred to other accounts.....         -19
42.00 Transferred from other accounts...          41
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........       2,385       2,420       2,514
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       2,385       2,420       2,514
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...       2,799       2,976       3,217
73.10 New obligations...................       2,420       2,662       2,514
73.20 Total outlays (gross).............      -2,226      -2,421      -2,418
73.40 Adjustments in expired accounts...          -1
73.45 Adjustments in unexpired accounts.         -16
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...       2,976       3,217       3,313
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       1,214       1,285       1,292
86.93 Outlays from current balances.....       1,012       1,136       1,126
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,226       2,421       2,418
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       2,385       2,420       2,514
90.00 Outlays...........................       2,226       2,421       2,418
---------------------------------------------------------------------------

    This account supports U.S. foreign policy objectives by providing 
economic assistance to allies and countries in transition to democracy, 
supporting the Middle East peace process, and financing economic 
stabilization programs, frequently in a multi-donor context. Key 
objectives include:


    (1) Supporting strategically significant friends and allies through 
assistance designed to increase the role of the private sector in the 
economy, reduce government controls over markets, enhance job creation, 
and improve economic growth.


    (2) Developing and strengthening institutions necessary for 
sustainable democracy. Typical areas of assistance include technical 
assistance to administer and monitor elections, capacity-building for 
non-governmental organizations, judicial training, and women's 
participation in politics. Assistance is also provided to support the 
transformation of the public sector to encourage democratic development, 
including training to improve public administration, promote 
decentralization, strengthen local governments, parliaments, independent 
media and non-governmental organizations.


    (3) Strengthening the capacity to manage the human dimension of the 
transition to democracy and a market econ-

[[Page 928]]

omy, and to help sustain the neediest sectors of the population during 
the transition period.


    Haiti.--The Administration is requesting a total of $140,000,000 out 
of the total ESF appropriation for Haiti. Haiti is at a pivotal juncture 
in its efforts to make the transformation to a democratic form of 
government and a free market economy. The Administration believes these 
additional resources for Haiti will be especially beneficial to show 
continued support for Haiti following the scheduled conclusion of the 
United Nation's peacekeeping operations in Haiti at the end of November 
1998.


    Holocaust Victims Relief.--This is a contribution toward the three-
year U.S. Government donation (not to exceed $25 million) for a 
multilateral program of financial relief to certain victims of Nazi 
persecution during World War II. Grants from the fund will be provided 
through approved non-governmental organizations with established 
administrative and organizational infrastructure to ensure the 
contributions are utilized only for the relief of living victims, who 
have to date received little or no relief and currently live below the 
poverty line in their country of residence.


               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1037-0-1-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

      Direct obligations:

25.2    Other services..................           6           5           5
41.0    Grants, subsidies, and 
          contributions.................       2,371       2,657       2,509
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..       2,377       2,662       2,514
41.0  Allocation Account: Grants, 
        subsidies, and contributions....          43
                                           ---------   ---------  ----------
99.9    Total obligations...............       2,420       2,662       2,514
---------------------------------------------------------------------------

                                <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, 
[$3,296,550,000] $3,275,910,000: Provided, [That of the funds 
appropriated under this heading, not less than $1,800,000,000 shall be 
available for grants only for Israel, and not less than $1,300,000,000 
shall be made available for grants only for Egypt: Provided further, 
That the funds appropriated by this paragraph for Israel shall be 
disbursed within 30 days of enactment of this Act or by October 31, 
1997, whichever is later: Provided further, That to the extent that the 
Government of Israel requests that funds be used for such purposes, 
grants made available for Israel by this paragraph shall, as agreed by 
Israel and the United States, be available for advanced weapons systems, 
of which not less than $475,000,000 shall be available for the 
procurement in Israel of defense articles and defense services, 
including research and development: Provided further, That of the funds 
appropriated by this paragraph, not less than $75,000,000 shall be 
available for assistance for Jordan: Provided further, That during 
fiscal year 1998 the President is authorized to, and shall, direct 
drawdowns of defense articles from the stocks of the Department of 
Defense, defense services of the Department of Defense, and military 
education and training of an aggregate value of not less than 
$25,000,000 under the authority of this proviso for Jordan for the 
purposes of part II of the Foreign Assistance Act of 1961, and any 
amount so directed shall count toward meeting the earmark in the 
previous proviso: Provided further, That section 506(c) of the Foreign 
Assistance Act of 1961 shall apply, and section 632(d) of the Foreign 
Assistance Act of 1961 shall not apply, to any such drawdown: Provided 
further, That of the funds appropriated by this paragraph, a total of 
$18,300,000 should be available for assistance for Estonia, Latvia, and 
Lithuania: Provided further, That none of the funds made available under 
this heading shall be available for any non-NATO country participating 
in the Partnership for Peace Program except through the regular 
notification procedures of the Committees on Appropriations: Provided 
further,] That funds appropriated by this paragraph shall be 
nonrepayable notwithstanding any requirement in section 23 of the Arms 
Export Control Act: Provided further, That funds made available under 
this paragraph shall be obligated upon apportionment in accordance with 
paragraph (5)(C) of title 31, United States Code, section 1501(a)[: 
Provided further, That $50,000,000 of the funds appropriated or 
otherwise made available under this heading should be made available for 
the purpose of facilitating the integration of Poland, Hungary, and the 
Czech Republic into the North Atlantic Treaty Organization].
    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, of direct loans authorized by section 23 of the Arms Export 
Control Act as follows: cost of direct loans, [$60,000,000] $20,000,000: 
Provided, That these funds are available to subsidize gross obligations 
for the principal amount of direct loans of not to exceed [$657,000,000: 
Provided further, That the rate of interest charged on such loans shall 
be not less than the current average market yield on outstanding 
marketable obligations of the United States of comparable maturities: 
Provided further, That funds appropriated under this paragraph shall be 
made available for Greece and Turkey only on a loan basis, and the 
principal amount of direct loans for each country shall not exceed the 
following: $105,000,000 only for Greece and $150,000,000 only for 
Turkey] $167,000,000.
    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 none of the funds appropriated under 
this heading shall be available for Sudan and Liberia: Provided 
further,] That funds made available under this heading may be used, 
notwithstanding any other provision of law, for demining, the clearance 
of unexploded ordnance, and related activities and may include 
activities 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] $29,910,000 of the 
funds appropriated under this heading may be obligated for necessary 
expenses, including the purchase of passenger motor vehicles for 
replacement only for use outside of the United States, for the general 
costs of administering military assistance and sales: [Provided further, 
That none of the funds under this heading shall be available for 
Guatemala:] Provided further, That not more than [$350,000,000] 
$340,000,000 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 [1998] 1999 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, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1082-0-1-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity [GPRA]....       3,266       3,313       3,246
00.02 Direct Program Activity [GPRA]....          23          30          30
                                           ---------   ---------  ----------
10.00   Total obligations...............       3,289       3,343       3,276
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       3,288       3,343       3,276

[[Page 929]]

23.95 New obligations...................      -3,289      -3,343      -3,276
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................       3,224       3,297       3,276
42.00 Transferred from other accounts...          64          46
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........       3,288       3,343       3,276
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       3,288       3,343       3,276
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...       1,781       2,110       2,240
73.10 New obligations...................       3,289       3,343       3,276
73.20 Total outlays (gross).............      -2,960      -3,213      -3,178
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...       2,110       2,240       2,337
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority       1,844       1,843       1,839
86.93 Outlays from current balances.....       1,116       1,370       1,339
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,960       3,213       3,178
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................       3,288       3,343       3,276
90.00 Outlays...........................       2,960       3,213       3,178
---------------------------------------------------------------------------

    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      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
25.2  Other services....................          23          30          30
41.0  Grants, subsidies, and 
        contributions...................       3,266       3,313       3,246
                                           ---------   ---------  ----------
99.9    Total obligations...............       3,289       3,343       3,276
---------------------------------------------------------------------------

                                <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, to remain available 
until September 30, 2000: Provided, That the civilian personnel for whom 
military education and training may be provided under this heading may 
include civilians who are not members of a government whose 
participation would contribute to improved civil-military relations, 
civilian control of the military, or respect for human rights[: Provided 
further, That funds appropriated under this heading for grant financed 
military education and training for Indonesia and Guatemala may only be 
available for expanded international military education and training and 
funds made available for Guatemala may only be provided through the 
regular notification procedures of the Committees on Appropriations: 
Provided further, That none of the funds appropriated under this heading 
may be made available to support grant financed military education and 
training at the School of the Americas unless: (1) the Secretary of 
Defense certifies that the instruction and training provided by the 
School of the Americas is fully consistent with training and doctrine, 
particularly with respect to the observance of human rights, provided by 
the Department of Defense to United States military students at 
Department of Defense institutions whose primary purpose is to train 
United States military personnel; (2) the Secretary of Defense certifies 
that the Secretary of State, in consultation with the Secretary of 
Defense, has developed and issued specific guidelines governing the 
selection and screening of candidates for instruction at the School of 
the Americas; and (3) the Secretary of Defense submits to the Committees 
on Appropriations a report detailing the training activities of the 
School of the Americas and a general assessment regarding the 
performance of its graduates during 1996]. (Foreign Operations, Export 
Financing, and Related Programs Appropriation Act, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1081-0-1-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

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

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

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

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...          27          35          39
73.10 New obligations...................          43          50          50
73.20 Total outlays (gross).............         -34         -46         -49
73.40 Adjustments in expired accounts...          -2
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...          35          39          40
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          20          25          25
86.93 Outlays from current balances.....          14          21          24
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          34          46          49
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          43          50          50
90.00 Outlays...........................          34          46          49
---------------------------------------------------------------------------

    This assistance provides grants for 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 internationally recognized standards of individual and human rights.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1081-0-1-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
26.0  Supplies and materials............           4           5           5
41.0  Grants, subsidies, and 
        contributions...................          38          44          44
                                           ---------   ---------  ----------
99.0      Subtotal, direct obligations..          42          49          49
99.5  Below reporting threshold.........           1           1           1
                                           ---------   ---------  ----------
99.9    Total obligations...............          43          50          50
---------------------------------------------------------------------------

                                <F-dash>

                  Military-to-Military Contact Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1084-0-1-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

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

    Outlays (gross), detail:
86.93 Outlays from current balances.....                       2           1
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................                       2           1
---------------------------------------------------------------------------

    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

[[Page 930]]

military organizations 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, [$77,500,000] $83,000,000[: 
Provided, That none of the funds appropriated under this heading shall 
be obligated or expended except as provided through the regular 
notification procedures of the Committees on Appropriations]. (Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1998).

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 72-1032-0-1-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        41.0)...........................          97          78          83
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          97          78          83
23.95 New obligations...................         -97         -78         -83
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................          65          78          83
42.00 Transferred from other accounts...          32
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........          97          78          83
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          97          78          83
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...          50          41          25
73.10 New obligations...................          97          78          83
73.20 Total outlays (gross).............        -106         -94         -81
73.40 Adjustments in expired accounts...          -2
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...          41          25          27
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          68          54          57
86.93 Outlays from current balances.....          38          40          24
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         106          94          81
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          97          78          83
90.00 Outlays...........................         106          94          81
---------------------------------------------------------------------------

    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 provides funds to other related programs carried out in 
furtherance of the national security interests of the United States. In 
1999, contributions are planned for the Multinational Force and 
Observers in the Sinai, Europe, Africa and other regional programs, and 
other activities.


                                <F-dash>

     Nonproliferation, Anti-Terrorism, Demining and Related Programs

    For necessary expenses for nonproliferation, anti-terrorism and 
related programs and activities, [$133,000,000] $215,900,000, 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 or the Foreign Assistance Act of 1961 for 
demining, the clearance of unexploded ordnance, and related 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 a United States contribution to the 
Comprehensive Nuclear Test Ban Treaty Preparatory Commission: 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 $30,000,000 may be made available 
to the Korean Peninsula Energy Development Organization (KEDO) only for 
the administrative expenses and heavy fuel oil costs associated with the 
Agreed Framework: Provided further, That such funds may be obligated to 
KEDO only if, 30 days prior to such obligation of funds, the President 
certifies and so reports to Congress that: (1)(A) the parties to the 
Agreed Framework are taking steps to assure that progress is made on the 
implementation of the January 1, 1992, Joint Declaration on the 
Denuclearization of the Korean Peninsula and the implementation of the 
North-South dialogue, and (B) North Korea is complying with the other 
provisions of the Agreed Framework between North Korea and the United 
States and with the Confidential Minute; (2) North Korea is cooperating 
fully in the canning and safe storage of all spent fuel from its 
graphite-moderated nuclear reactors and that such canning and safe 
storage is scheduled to be completed by April 1, 1998; 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 the obligation of any funds for KEDO 
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 
KEDO, to include unpaid debt, proposed annual costs associated with 
heavy fuel oil purchases, and the amount of funds pledged by other donor 
nations and organizations to support KEDO activities on a per country 
basis, and other related activities: Provided further, That of the funds 
made available under this heading, up to $10,000,000 may be made 
available to KEDO, in addition to funds otherwise made available under 
this heading for KEDO, if the Secretary of State certifies and reports 
to the Committees on Appropriations that, except for the funds made 
available under this proviso, funds sufficient to cover all outstanding 
debts owed by KEDO for heavy fuel oil have been provided to KEDO by 
donors other than the United States]. (Foreign Operations, Export 
Financing, and Related Programs Appropriation Act, 1998.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1075-0-1-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Comprehensive test ban treaty 
        prepcom.........................                                  29
00.02 Demining..........................           1          20          50
00.03 Export control....................                       3           5
00.04 Nonproliferation and disarmament 
        assistance......................          15          15          15
00.05 Anti-terrorism assistance.........          18          19          21
00.06 IAEA voluntary contribution.......          36          36          40
00.07 KEDO payment......................          25          40          35
00.08 Science centers in NIS............          14                      21
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................         108         133         216
----------------------------------------------------------------------------

[[Page 931]]



    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......                       1           1
22.00 New budget authority (gross)......         109         133         216
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         109         134         217
23.95 New obligations...................        -108        -133        -216
24.40 Unobligated balance available, end 
        of year: Uninvested.............           1           1           1
----------------------------------------------------------------------------

    New budget authority (gross), detail:
40.00 Appropriation.....................         151         133         216
41.00 Transferred to other accounts.....         -56
42.00 Transferred from other accounts...          14
                                           ---------   ---------  ----------
43.00   Appropriation (total)...........         109         133         216
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         109         133         216
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...                      37          60
73.10 New obligations...................         108         133         216
73.20 Total outlays (gross).............         -71        -110        -183
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...          37          60          93
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.90 Outlays from new current authority          71          86         140
86.93 Outlays from current balances.....                      24          43
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          71         110         183
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................         109         133         216
90.00 Outlays...........................          71         110         183
---------------------------------------------------------------------------

    This account funds contributions to certain organizations supporting 
nonproliferation, and provides assistance for nonproliferation, 
demining, antiterrorism, and export control activities.


                                <F-dash>

            Assistance for Relocation of Facilities in Israel

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1088-0-1-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......                       2
24.40 Unobligated balance available, end 
        of year: Uninvested.............           2
----------------------------------------------------------------------------

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

68.00   Offsetting collections (cash)...           2
68.49   Portion applied to liquidate 
          contract authority............          -1
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................           1
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.49 Unpaid obligations, start of year: 
        Obligated balance: Contract 
        authority.......................           4           3
73.20 Total outlays (gross).............          -1           1
73.40 Adjustments in expired accounts...                      -3
74.49 Unpaid obligations, end of year: 
        Obligated balance: Contract 
        authority.......................           3
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           1
86.98 Outlays from permanent balances...                      -1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           1          -1
----------------------------------------------------------------------------

    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...........................                      -1
---------------------------------------------------------------------------

            Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1088-0-1-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
0100  Balance, start of year............           4           3
0360  Adjustments in expired accounts...                      -3
0500  Offsetting collections applied to 
        liquidate contract authority....          -1
0700  Balance, end of year..............           3
---------------------------------------------------------------------------

    This account shows financial transactions related to the 
construction of two airfields in Israel that were part of the Camp David 
agreement. The 1998 transactions are expected to be the last ones in 
this account.


                                <F-dash>

                 Non-Proliferation and Disarmament Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1071-0-1-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations.................          11           5
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested.......          16           5
23.95 New obligations...................         -11          -5
24.40 Unobligated balance available, end 
        of year: Uninvested.............           5
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...          13          18           7
73.10 New obligations...................          11           5
73.20 Total outlays (gross).............          -6         -16          -7
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...          18           7
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....           6          16           7
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           6          16           7
---------------------------------------------------------------------------

    This account provided 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. Starting in 1997, these 
activities have been funded from the Non-Proliferation, Anti-Terrorism, 
Demining and Related Programs account. This schedule reflects the spend-
out of prior-year obligations.


               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1071-0-1-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
25.2  Other services....................          10           5
41.0  Grants, subsidies, and 
        contributions...................           1
                                           ---------   ---------  ----------
99.9    Total obligations...............          11           5
---------------------------------------------------------------------------

                                <F-dash>

Credit accounts:

             Foreign Military Financing Loan Program Account

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1085-0-1-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Balance, start of year............                      11          26
    Receipts:
02.01 Downward reestimates of subsidies.          11          15
                                           ---------   ---------  ----------

[[Page 932]]


04.00 Total: Balances and collections...          11          26          26
07.99 Total balance, end of year........          11          26          26
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-1085-0-1-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          58          20          20
00.05 Direct program....................          23          16
00.06 Direct program....................           1           3
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          41.0).........................          82          39          20
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          82          39          20
23.95 New obligations...................         -82         -39         -20
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Current:

40.00   Appropriation...................          60          60          20
41.00   Transferred to other accounts...          -2         -40
                                           ---------   ---------  ----------
43.00     Appropriation (total).........          58          20          20
      Permanent:

60.05   Appropriation (indefinite)......          24          19
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          82          39          20
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.40 Unpaid obligations, start of year: 
        Obligated balance: Uninvested...         184         202         176
73.10 New obligations...................          82          39          20
73.20 Total outlays (gross).............         -64         -65         -39
74.40 Unpaid obligations, end of year: 
        Obligated balance: Uninvested...         202         176         158
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.93 Outlays from current balances.....          40          46          39
86.97 Outlays from new permanent 
        authority.......................          24          19
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          64          65          39
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................          82          39          20
90.00 Outlays...........................          64          65          39
---------------------------------------------------------------------------

    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      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
1150  Direct loan levels................         297         200         167
                                           ---------   ---------  ----------
1159    Total direct loan levels........         297         200         167
    Direct loan subsidy (in percent):
1320  Subsidy rate......................       13.43       10.00       11.97
                                           ---------   ---------  ----------
1329    Weighted average subsidy rate...       13.43       10.00       11.97
    Direct loan subsidy budget authority:
1330  Subsidy budget authority..........          83          60          20
                                           ---------   ---------  ----------
1339    Total subsidy budget authority..          83          60          20
    Direct loan subsidy outlays:
1340  Subsidy outlays...................          64          46          39
                                           ---------   ---------  ----------
1349    Total subsidy outlays...........          64          46          39
---------------------------------------------------------------------------

                                <F-dash>

        Foreign Military Financing Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4122-0-3-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................         298         200         167
00.02 Direct program....................          99         112         148
00.03 Direct program....................          11          13
00.04 Direct program....................                       2
                                           ---------   ---------  ----------
10.00   Total obligations...............         408         327         315
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...         408         327         315
23.95 New obligations...................        -408        -327        -315
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..         258         196         147
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         183         467         567
68.10   Change in receivables from 
          program account...............          18         -26         -18
68.47   Portion applied to debt 
          reduction.....................         -51        -310        -381
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................         150         131         168
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................         408         327         315
----------------------------------------------------------------------------

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

72.40   Obligated balance: Uninvested...       1,789       1,692       1,445
72.95   Receivables from program account         184         202         176
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............       1,973       1,894       1,621
73.10 New obligations...................         408         327         315
73.20 Total financing disbursements 
        (gross).........................        -487        -600        -691
      Unpaid obligations, end of year:

74.40   Obligated balance: Uninvested...       1,692       1,445       1,089
74.95   Receivables from program account         202         176         158
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................       1,894       1,621       1,247
87.00 Total financing disbursements 
        (gross).........................         487         600         691
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Federal sources.............         -64         -46         -39
88.00       Federal sources.............         -25         -19
88.40     Non-Federal sources...........         -94        -402        -528
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -183        -467        -567
88.95 Change in receivables from program 
        account.........................         -18          26          18
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         207        -114        -234
90.00 Financing disbursements...........         303         133         124
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4122-0-3-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         540         200         167
1112  Unobligated direct loan limitation        -242
                                           ---------   ---------  ----------
1150    Total direct loan obligations...         298         200         167
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       1,098       1,451       1,702
1231  Disbursements: Direct loan 
        disbursements...................         376         471         543
1251  Repayments: Repayments and 
        prepayments.....................         -23        -220        -322
                                           ---------   ---------  ----------

[[Page 933]]


1290    Outstanding, end of year........       1,451       1,702       1,923
---------------------------------------------------------------------------

    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    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         160            130
        Investments in US securities:
1106      Receivables, net..............         184            202           176            158
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       1,098          1,451         1,702          1,923
1402    Interest receivable.............          12             16            18             21
1405    Allowance for subsidy cost (-)..        -143           -189          -235           -274
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         967          1,278         1,485          1,670
1901  Other Federal assets: Other assets       1,630          1,562         1,317            959
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,941          3,172         2,978          2,787
    LIABILITIES:
      Federal liabilities:

2103    Debt............................       1,134          1,408         1,589          1,751
2105    Other...........................       1,623          1,764         1,389          1,036
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       2,757          3,172         2,978          2,787
    NET POSITION:
3100  Appropriated capital..............         184
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         184
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,941          3,172         2,978          2,787
-----------------------------------------------------------------------------------------------

                                <F-dash>

                Foreign Military Loan Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4121-0-3-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          28          10           9
00.02 Direct program....................          20          39          37
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          33.0).........................          48          49          46
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          48          49          46
23.95 New obligations...................         -48         -49         -46
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.05 Appropriation (indefinite)........          16          28          31
      Spending authority from offsetting 
          collections:

        Offsetting collections (cash):
68.00     Offsetting collections (cash).         236         241         233
68.00     Offsetting collections (cash).           4          18           4
68.27   Capital transfer to general fund          -9         -19          -4
68.47   Portion applied to debt 
          reduction.....................        -199        -219        -218
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................          32          21          15
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          48          49          46
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................          48          49          46
73.20 Total outlays (gross).............         -48         -49         -46
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................          48          49          46
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
          Federal sources:
88.00       Federal sources.............
88.00       Federal sources.............          -4         -18          -4
          Non-Federal sources:
88.40       Non-Federal sources.........         -37         -22         -15
88.40       Non-Federal sources.........        -199        -219        -218
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -240        -259        -237
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................        -192        -210        -191
90.00 Outlays...........................        -192        -210        -191
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4121-0-3-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       7,021       6,154       5,313
1231  Disbursements: Direct loan 
        disbursements...................          14           9           8
1251  Repayments: Repayments and 
        prepayments.....................        -892        -812        -628
1261  Adjustments: Capitalized interest.          21
1264  Write-offs for default: Other 
        adjustments, net................         -10         -38          -6
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       6,154       5,313       4,687
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4121-0-3-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       6,129       5,691       5,303
2251  Repayments and prepayments........        -432        -387        -379
2261  Adjustments: Terminations for 
        default that result in loans 
        receivable......................          -6          -1          -1
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       5,691       5,303       4,923
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       5,122       4,772       4,430
----------------------------------------------------------------------------

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

2331    Disbursements for guaranteed 
          loan claims...................          34          10           9
2364    Other adjustments, net..........         -34         -10          -9
---------------------------------------------------------------------------

    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. 


                        Statement of Operations (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   11-4121-0-3-152    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
0111  Revenue...........................         282            322           283            252
0112  Expense...........................        -293           -330          -283           -252
                                        ------------ --------------  ------------  -------------
0119  Net income or loss (-)............         -11             -8
                                        ------------ --------------  ------------  -------------
0199  Net income or loss................         -11             -8
-----------------------------------------------------------------------------------------------

[[Page 934]]



                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   11-4121-0-3-152    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       7,021          6,154         5,313          4,687
1602    Interest receivable.............         655            729           636            563
1604    Direct loans and interest 
          receivable, net...............       7,676          6,883         5,949          5,250
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       7,676          6,883         5,949          5,250
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       7,676          6,883         5,949          5,250
    LIABILITIES:
      Federal liabilities:

2102    Interest payable................          51             48            44             41
2103    Debt............................       3,247          3,048         2,829          2,611
2105    Other...........................       3,767          3,177         2,466          1,988
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       7,065          6,273         5,339          4,640
    NET POSITION:
3100  Appropriated capital..............
3300  Cumulative results of operations..         611            610           610            610
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         611            610           610            610
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       7,676          6,883         5,949          5,250
-----------------------------------------------------------------------------------------------

                                <F-dash>

                Military Debt Reduction Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4174-0-3-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Reimbursable program..............           4          18           4
09.02 Reimbursable program..............                       1           1
                                           ---------   ---------  ----------
10.00   Total obligations...............           4          19           5
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
22.00 New financing authority (gross)...           4          19           5
23.95 New obligations...................          -4         -19          -5
----------------------------------------------------------------------------

    New financing authority (gross), detail:
67.15 Authority to borrow (indefinite)..           3          16           2
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           1           3           3
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           4          19           5
----------------------------------------------------------------------------

    Change in unpaid obligations:
73.10 New obligations...................           4          19           5
73.20 Total financing disbursements 
        (gross).........................          -4         -19          -5
87.00 Total financing disbursements 
        (gross).........................           4          19           5
----------------------------------------------------------------------------

    Offsets:
      Against gross financing authority and 
          financing disbursements:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -1          -3          -3
----------------------------------------------------------------------------

    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............           3          16           2
90.00 Financing disbursements...........           3          16           2
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4174-0-3-152      1997 actual   1998 est.   1999 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........           3          18           4
                                           ---------   ---------  ----------
1150    Total direct loan obligations...           3          18           4
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........                       3          17
1233  Disbursements: Purchase of loans 
        assets from a liquidating 
        account.........................           3          14           1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           3          17          18
---------------------------------------------------------------------------

    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. 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   11-4174-0-3-152    1996 actual    1997 actual     1998 est.      1999 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..                          3            17             18
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....                          3            17             18
                                        ------------ --------------  ------------  -------------
1999    Total assets....................                          3            17             18
    LIABILITIES:
2103  Federal liabilities: Debt.........                          3            17             18
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............                          3            17             18
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position                          3            17             18
-----------------------------------------------------------------------------------------------

               Object Classification (in millions of dollars)

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Identification code 11-4174-0-3-152      1997 actual   1998 est.   1999 est.
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33.0  Investments and loans.............           4          18           4
43.0  Interest and dividends............                       1           1
                                           ---------   ---------  ----------
99.9    Total obligations...............           4          19           5
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