[Appendix, Budget of the United States Government, Fiscal Year 1999]
[Page 973-984]
[DOCID:1999_app_iap-12]
From the Budget of the U.S., FY 1999 Online via GPO Access
[wais.access.gpo.gov]

 
                       TITLE V--GENERAL PROVISIONS

              Obligations During Last Month of Availability

    Sec. 501. Except for the appropriations entitled ``International 
Disaster Assistance'', and ``United States Emergency Refugee and 
Migration Assistance Fund'', not more than 15 percent of any 
appropriation item made available by this Act shall be obligated during 
the last month of availability.

      Prohibition of Bilateral Funding for International Financial 
                              Institutions

    Sec. 502. Notwithstanding section 614 of the Foreign Assistance Act 
of 1961, as amended, none of the funds contained in title II of this Act 
may be used to carry out the provisions of section 209(d) of the Foreign 
Assistance Act of 1961.

                    Limitation on Residence Expenses

    Sec. 503. Of the funds appropriated or made available pursuant to 
this Act, not to exceed $126,500 shall be for official residence 
expenses of the Agency for International Development during the current 
fiscal year: Provided, That appropriate steps shall be taken to assure 
that, to the maximum extent possible, United States-owned foreign 
currencies are utilized in lieu of dollars.

                         Limitation on Expenses

    Sec. 504. Of the funds appropriated or made available pursuant to 
this Act, not to exceed $5,000 shall be for entertainment expenses of 
the Agency for International Development during the current fiscal year.

                Limitation on Representational Allowances

    Sec. 505. Of the funds appropriated or made available pursuant to 
this Act, not to exceed $95,000 shall be available for representation 
allowances for the Agency for International Development during the 
current fiscal year: Provided, That appropriate steps shall be taken to 
assure that, to the maximum extent possible, United States-owned foreign 
currencies are utilized in lieu of dollars: Provided further, That of 
the funds made available by this Act for general costs of administering 
military assistance and sales under the heading ``Foreign Military 
Financing Program'', not to exceed $2,000 shall be available for 
entertainment expenses and not to exceed $50,000 shall be available for 
representation allowances: Provided further, That of the funds made 
available by this Act under the heading ``International Military 
Education and Training'', not to exceed $50,000 shall be available for 
entertainment allowances: Provided further, That of the funds made 
available by this Act for the Inter-American Foundation, not to exceed 
$2,000 shall be available for entertainment and representation 
allowances: Provided further, That of the funds made available by this 
Act for the Peace Corps, not to exceed a total of $4,000 shall be 
available for entertainment expenses: Provided further, That of the 
funds made available by this Act under the heading ``Trade and 
Development Agency'', not to exceed $2,000 shall be available for 
representation and entertainment allowances.

                 Prohibition on Financing Nuclear Goods

    Sec. 506. None of the funds appropriated or made available (other 
than funds for ``Nonproliferation, Anti-terrorism, Demining and Related 
Programs'') pursuant to this Act, for carrying out the Foreign 
Assistance Act of 1961, may be used, except for purposes of nuclear 
safety, to finance the export of nuclear equipment, fuel, or technology.

        Prohibition Against Direct Funding for Certain Countries

    Sec. 507. None of the funds appropriated or otherwise made available 
pursuant to this Act shall be obligated or expended to finance directly 
any assistance or reparations to Cuba, Iraq, Libya, North Korea, Iran, 
Sudan, or Syria, unless the President determines that to do so is in the 
national interest of the United States: Provided, That for purposes of 
this section, the prohibition on obligations or expenditures shall 
include direct loans, credits, insurance and guarantees of the Export-
Import Bank or its agents.

                             Military Coups

    Sec. 508. None of the funds appropriated or otherwise made available 
pursuant to this Act shall be obligated or expended to finance directly 
any assistance to any country whose duly elected head of government is 
deposed by military coup or decree, unless the President determines that 
to do so is in the national interest of the United States: Provided, 
That assistance may be resumed to such country if the President 
determines and reports to the Committees on Appropriations that 
subsequent to the termination of assistance a democratically elected 
government has taken office.

                       Transfers Between Accounts

    Sec. 509. None of the funds made available by this Act may be 
obligated under an appropriation account to which they were not 
appropriated, except for transfers specifically provided for in this 
Act, unless the President, prior to the exercise of any authority 
contained in the Foreign Assistance Act of 1961 to transfer funds, 
consults with and provides a written policy justification to the 
Committees on Appropriations of the House of Representatives and the 
Senate[: Provided, That the exercise of such authority shall be subject 
to the regular notification procedures of the Committees on 
Appropriations].

                   Deobligation/Reobligation Authority

    Sec. 510. (a) Amounts certified pursuant to section 1311 of the 
Supplemental Appropriations Act, 1955, as having been obligated against 
appropriations heretofore made under the authority of the Foreign 
Assistance Act of 1961 for the same general purpose as any of the 
headings under title II of this Act are, if deobligated, hereby 
continued available for the same period as the respective appropriations 
under such headings or until September 30, [1998] 1999, whichever is 
later, and for the same general purpose, and for countries within the 
same region as originally obligated: Provided, That the Appropriations 
Committees of both Houses of the Congress are notified 15 days in 
advance of the reobligation of such funds in accordance with regular 
notification procedures of the Committees on Appropriations.
    (b) Obligated balances of funds appropriated to carry out section 23 
of the Arms Export Control Act as of the end of the fiscal year 
immediately preceding the current fiscal year are, if deobligated, 
hereby continued available during the current fiscal year for the same 
purpose under any authority applicable to such appropriations

[[Page 974]]

under this Act: Provided, That the authority of this subsection may not 
be used in fiscal year [1998] 1999.

                          Availability of Funds

    Sec. 511. No part of any appropriation contained in this Act shall 
remain available for obligation after the expiration of the current 
fiscal year unless expressly so provided in this Act: Provided, That 
funds appropriated for the purposes of chapters 1, 8, and 11 of part I, 
section 667, and chapter 4 of part II of the Foreign Assistance Act of 
1961, as amended, and funds provided under the heading ``Assistance for 
Eastern Europe and the Baltic States'', shall remain available until 
expended if such funds are initially obligated before the expiration of 
their respective periods of availability contained in this Act: Provided 
further, That, notwithstanding any other provision of this Act, any 
funds made available for the purposes of chapter 1 of part I and chapter 
4 of part II of the Foreign Assistance Act of 1961 which are allocated 
or obligated for cash disbursements in order to address balance of 
payments or economic policy reform objectives, shall remain available 
until expended: Provided further, That the report required by section 
653(a) of the Foreign Assistance Act of 1961 shall designate for each 
country, to the extent known at the time of submission of such report, 
those funds allocated for cash disbursement for balance of payment and 
economic policy reform purposes.

            Limitation on Assistance to Countries in Default

    Sec. 512. No part of any appropriation contained in this Act shall 
be used to furnish assistance to any country which is in default during 
a period in excess of one calendar year in payment to the United States 
of principal or interest on any loan made to such country by the United 
States pursuant to a program for which funds are appropriated under this 
Act, unless the President determines that furnishing assistance to such 
country is in the national interest of the United States: Provided, That 
this section and section 620(q) of the Foreign Assistance Act of 1961 
shall not apply to funds made available in this Act or during the 
current fiscal year for Nicaragua, the Democratic Republic of Congo, and 
Liberia, and for any narcotics-related assistance for Colombia, Bolivia, 
and Peru authorized by the Foreign Assistance Act of 1961 or the Arms 
Export Control Act.

                          [Commerce and Trade]

    [Sec. 513. (a) None of the funds appropriated or made available 
pursuant to this Act for direct assistance and none of the funds 
otherwise made available pursuant to this Act to the Export-Import Bank 
and the Overseas Private Investment Corporation shall be obligated or 
expended to finance any loan, any assistance or any other financial 
commitments for establishing or expanding production of any commodity 
for export by any country other than the United States, if the commodity 
is likely to be in surplus on world markets at the time the resulting 
productive capacity is expected to become operative and if the 
assistance will cause substantial injury to United States producers of 
the same, similar, or competing commodity: Provided, That such 
prohibition shall not apply to the Export-Import Bank if in the judgment 
of its Board of Directors the benefits to industry and employment in the 
United States are likely to outweigh the injury to United States 
producers of the same, similar, or competing commodity, and the Chairman 
of the Board so notifies the Committees on Appropriations.]
    [(b) None of the funds appropriated by this or any other Act to 
carry out chapter 1 of part I of the Foreign Assistance Act of 1961 
shall be available for any testing or breeding feasibility study, 
variety improvement or introduction, consultancy, publication, 
conference, or training in connection with the growth or production in a 
foreign country of an agricultural commodity for export which would 
compete with a similar commodity grown or produced in the United States: 
Provided, That this subsection shall not prohibit--
        (1) activities designed to increase food security in developing 
    countries where such activities will not have a significant impact 
    in the export of agricultural commodities of the United States; or
        (2) research activities intended primarily to benefit American 
    producers.]

                          [Surplus Commodities]

    [Sec. 514. The Secretary of the Treasury shall instruct the United 
States Executive Directors of the International Bank for Reconstruction 
and Development, the International Development Association, the 
International Finance Corporation, the Inter-American Development Bank, 
the International Monetary Fund, the Asian Development Bank, the Inter-
American Investment Corporation, the North American Development Bank, 
the European Bank for Reconstruction and Development, the African 
Development Bank, and the African Development Fund to use the voice and 
vote of the United States to oppose any assistance by these 
institutions, using funds appropriated or made available pursuant to 
this Act, for the production or extraction of any commodity or mineral 
for export, if it is in surplus on world markets and if the assistance 
will cause substantial injury to United States producers of the same, 
similar, or competing commodity.]

                        Notification Requirements

    Sec. [515] 513. (a) For the purposes of providing the executive 
branch with the necessary administrative flexibility, none of the funds 
made available under this Act for ``Child Survival and Disease Programs 
Fund'', ``Development Assistance'', ``Development Credit Authority'', 
``International organizations and programs'', ``Trade and Development 
Agency'', ``International narcotics control'', ``Narcotics 
Interdiction'', ``Assistance for Eastern Europe and the Baltic States'', 
``Assistance for the New Independent States of the Former Soviet 
Union'', ``Economic Support Fund'', ``Peacekeeping operations'', 
``Operating expenses of the Agency for International Development'', 
``Operating expenses of the Agency for International Development Office 
of Inspector General'', ``Nonproliferation, anti-terrorism, demining and 
related programs'', ``Foreign Military Financing Program'', 
``International military education and training'', ``Peace Corps'', 
``Migration and refugee assistance'', shall be available for obligation 
for activities, programs, projects, type of materiel assistance, 
countries, or other operations not justified or in excess of the amount 
justified to the Appropriations Committees for obligation under any of 
these specific headings unless the Appropriations Committees of both 
Houses of Congress are previously notified 15 days in advance: Provided, 
That the President shall not enter into any commitment of funds 
appropriated for the purposes of section 23 of the Arms Export Control 
Act for the provision of major defense equipment, other than 
conventional ammunition, or other major defense items defined to be 
aircraft, ships, missiles, or combat vehicles, not previously justified 
to Congress or 20 percent in excess of the quantities justified to 
Congress unless the Committees on Appropriations are notified 15 days in 
advance of such commitment: Provided further, That this section shall 
not apply to any reprogramming for an activity, program, or project 
under chapter 1 of part I of the Foreign Assistance Act of 1961 of less 
than 10 percent of the amount previously justified to the Congress for 
obligation for such activity, program, or project for the current fiscal 
year: Provided further, That the requirements of this section or any 
similar provision of this Act or any other Act, including any prior Act 
requiring notification in accordance with the regular notification 
procedures of the Committees on Appropriations, may be waived if failure 
to do so would pose a substantial risk to human health or welfare, or 
that waiving such requirement is in the national interest of the United 
States: Provided further, That in case of any such waiver, notification 
to the Congress, or the appropriate congressional committees, shall be 
provided as early as practicable, but in no event later than three days 
after taking the action to which such notification requirement was 
applicable, in the context of the circumstances necessitating such 
waiver: Provided further, That any notification provided pursuant to 
such a waiver shall contain an explanation of the emergency 
circumstances.
    (b) Drawdowns made pursuant to section 506(a)(2) of the Foreign 
Assistance Act of 1961 shall be subject to the regular notification 
procedures of the Committees on Appropriations.

limitation on Availability of Funds for International Organizations and 
                                Programs

    Sec. [516] 514. Notwithstanding any other provision of law or of 
this Act, none of the funds provided for ``International Organizations 
and Programs'' shall be available for the United States proportionate 
share, in accordance with section 307(c) of the Foreign Assistance Act 
of 1961, for any programs identified in section 307, or for Libya, Iran, 
or, at the discretion of the President, Communist countries listed in 
section 620(f) of the Foreign Assistance Act of 1961, as amended: 
Provided, That, subject to the regular notification procedures of the 
Committees on Appropriations, funds appropriated under this Act or any 
previously enacted Act making appropriations for foreign operations, 
export financing, and related programs, which are returned or not made 
available for organizations and programs

[[Page 975]]

because of the implementation of this section or any similar provision 
of law, shall remain available for obligation through September 30, 
[1999] 2000.

              [Economic Support Fund Assistance for Israel]

    [Sec. 517. The Congress finds that progress on the peace process in 
the Middle East is vitally important to United States security interests 
in the region. The Congress recognizes that, in fulfilling its 
obligations under the Treaty of Peace Between the Arab Republic of Egypt 
and the State of Israel, done at Washington on March 26, 1979, Israel 
incurred severe economic burdens. Furthermore, the Congress recognizes 
that an economically and militarily secure Israel serves the security 
interests of the United States, for a secure Israel is an Israel which 
has the incentive and confidence to continue pursuing the peace process. 
Therefore, the Congress declares that, subject to the availability of 
appropriations, it is the policy and the intention of the United States 
that the funds provided in annual appropriations for the Economic 
Support Fund which are allocated to Israel shall not be less than the 
annual debt repayment (interest and principal) from Israel to the United 
States Government in recognition that such a principle serves United 
States interests in the region.]

   Prohibition on Funding for Abortions and Involuntary Sterilization

    Sec. [518] 515. None of the funds made available to carry out part I 
of the Foreign Assistance Act of 1961, as amended, may be used to pay 
for the performance of abortions as a method of family planning or to 
motivate or coerce any person to practice abortions. None of the funds 
made available to carry out part I of the Foreign Assistance Act of 
1961, as amended, may be used to pay for the performance of involuntary 
sterilization as a method of family planning or to coerce or provide any 
financial incentive to any person to undergo sterilizations. None of the 
funds made available to carry out part I of the Foreign Assistance Act 
of 1961, as amended, may be used to pay for any biomedical research 
which relates in whole or in part, to methods of, or the performance of, 
abortions or involuntary sterilization as a means of family planning. 
None of the funds made available to carry out part I of the Foreign 
Assistance Act of 1961, as amended, may be obligated or expended for any 
country or organization if the President certifies that the use of these 
funds by any such country or organization would violate any of the above 
provisions related to abortions and involuntary sterilizations: 
Provided, That none of the funds made available under this Act may be 
used to lobby for or against abortion.

                         [Reporting Requirement]

    [Sec. 519. Section 25 of the Arms Export Control Act is amended--
        (1) in subsection (a), by striking ``Congress'' and inserting in 
    lieu thereof ``appropriate congressional committees'';
        (2) in subsection (b), by striking ``the Committee on Foreign 
    Relations of the Senate or the Committee on Foreign Affairs of the 
    House of Representatives'' and inserting in lieu thereof ``any of 
    the congressional committees described in subsection (e)''; and
        (3) by adding the following subsection:
    ``(e) As used in this section, the term `appropriate congressional 
committees' means the Committee on Foreign Relations and the Committee 
on Appropriations of the Senate and the Committee on International 
Relations and the Committee on Appropriations of the House of 
Representatives.''.]

                   [Special Notification Requirements]

    [Sec. 520. None of the funds appropriated in this Act shall be 
obligated or expended for Colombia, Haiti, Liberia, Pakistan, Panama, 
Peru, Serbia, Sudan, or the Democratic Republic of Congo except as 
provided through the regular notification procedures of the Committees 
on Appropriations.]

              Definition of Program, Project, and Activity

    Sec. [521] 516. For the purpose of this Act, ``program, project, and 
activity'' shall be defined at the appropriations Act account level and 
shall include all appropriations and authorizations Acts earmarks, 
ceilings, and limitations with the exception that for the following 
accounts: Economic Support Fund and Foreign Military Financing Program, 
``program, project, and activity'' shall also be considered to include 
country, regional, and central program level funding within each such 
account; for the development assistance accounts of the Agency for 
International Development ``program, project, and activity'' shall also 
be considered to include central program level funding, either as: (1) 
justified to the Congress; or (2) allocated by the executive branch in 
accordance with a report, to be provided to the Committees on 
Appropriations within 30 days of enactment of this Act, as required by 
section 653(a) of the Foreign Assistance Act of 1961.

               Child Survival, Aids, and Other Activities

    Sec. [522] 517. Up to $10,000,000 of the funds made available by 
this Act for assistance for family planning, health, child survival, 
basic education, and AIDS, may be used to reimburse United States 
Government agencies, agencies of State governments, institutions of 
higher learning, and private and voluntary organizations for the full 
cost of individuals (including for the personal services of such 
individuals) detailed or assigned to, or contracted by, as the case may 
be, the Agency for International Development for the purpose of carrying 
out family planning activities, child survival, and basic education 
activities, and activities relating to research on, and the treatment 
and control of acquired immune deficiency syndrome in developing 
countries: Provided, That funds appropriated by this Act that are made 
available for child survival activities or activities relating to 
research on, and the treatment and control of, acquired immune 
deficiency syndrome may be made available notwithstanding any provision 
of law that restricts assistance to foreign countries: Provided further, 
That funds appropriated by this Act that are made available for family 
planning activities may be made available notwithstanding section 512 of 
this Act and section 620(q) of the Foreign Assistance Act of 1961.

        Prohibition Against Indirect Funding to Certain Countries

    Sec. [523] 518. None of the funds appropriated or otherwise made 
available pursuant to this Act shall be obligated to finance indirectly 
any assistance or reparations to Cuba, Iraq, Libya, Iran, Syria, North 
Korea, or the People's Republic of China, unless the President of the 
United States certifies that the withholding of these funds is contrary 
to the national interest of the United States.

                           Reciprocal Leasing

    Sec. [524] 519. Section 61(a) of the Arms Export Control Act is 
amended by striking out [``1997''] ``1998'' and inserting in lieu 
thereof [``1998''] ``1999''.

               [Notification on Excess Defense Equipment]

    [Sec. 525. Prior to providing excess Department of Defense articles 
in accordance with section 516(a) of the Foreign Assistance Act of 1961, 
the Department of Defense shall notify the Committees on Appropriations 
to the same extent and under the same conditions as are other committees 
pursuant to subsection (c) of that section: Provided, That before 
issuing a letter of offer to sell excess defense articles under the Arms 
Export Control Act, the Department of Defense shall notify the 
Committees on Appropriations in accordance with the regular notification 
procedures of such Committees: Provided further, That such Committees 
shall also be informed of the original acquisition cost of such defense 
articles.]

         Excess Defense Equipment for Central European Countries

    Sec. 520. Section 105 of P.L. 104-164 (110 Stat 1427) is amended by 
striking ``1996 and 1997'' and inserting, ``1999 and 2000''.

                       [Authorization Requirement]

    [Sec. 526. Funds appropriated by this Act may be obligated and 
expended notwithstanding section 10 of Public Law 91-672 and section 15 
of the State Department Basic Authorities Act of 1956.]

       Prohibition on Bilateral Assistance to Terrorist Countries

    Sec. [527. (a) Notwithstanding any other provision of law, funds] 
521. (a) Funds appropriated for bilateral assistance under any heading 
of this Act and funds appropriated under any such heading in a provision 
of law enacted prior to enactment of this Act, shall not be made 
available to any country which the President determines--
        (1) grants sanctuary from prosecution to any individual or group 
    which has committed an act of international terrorism; or
        (2) otherwise supports international terrorism.
    (b) The President may waive the application of subsection (a) to a 
country if the President determines that national security or 
humanitarian reasons justify such waiver. The President shall publish 
each waiver in the Federal Register and, at least 15 days before the 
waiver takes effect, shall notify the Committees on Appropriations of 
the waiver (including the justification for the waiver) in accordance 
with the regular notification procedures of the Committees on 
Appropriations.

[[Page 976]]

                 Commercial Leasing of Defense Articles

    Sec. [528] 522. Notwithstanding any other provision of law, and 
subject to the regular notification procedures of the Committees on 
Appropriations, the authority of section 23(a) of the Arms Export 
Control Act may be used to provide financing to Israel, Egypt and NATO 
and major non-NATO allies for the procurement by leasing (including 
leasing with an option to purchase) of defense articles from United 
States commercial suppliers, not including Major Defense Equipment 
(other than helicopters and other types of aircraft having possible 
civilian application), if the President determines that there are 
compelling foreign policy or national security reasons for those defense 
articles being provided by commercial lease rather than by government-
to-government sale under such Act.

                         [Competitive Insurance]

    [Sec. 529. All Agency for International Development contracts and 
solicitations, and subcontracts entered into under such contracts, shall 
include a clause requiring that United States insurance companies have a 
fair opportunity to bid for insurance when such insurance is necessary 
or appropriate.]

                  [Stingers in the Persian Gulf Region]

    [Sec. 530. Except as provided in section 581 of the Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1990, the United States may not sell or otherwise make available any 
Stingers to any country bordering the Persian Gulf under the Arms Export 
Control Act or chapter 2 of part II of the Foreign Assistance Act of 
1961.]

                          Debt-for-Development

    Sec. [531] 523. In order to enhance the continued participation of 
nongovernmental organizations in economic assistance activities under 
the Foreign Assistance Act of 1961, including endowments, debt-for-
development and debt-for-nature exchanges, a nongovernmental 
organization which is a grantee or contractor of the Agency for 
International Development may place in interest bearing accounts funds 
made available under this Act or prior Acts or local currencies which 
accrue to that organization as a result of economic assistance provided 
under title II of this Act and any interest earned on such investment 
shall be used for the purpose for which the assistance was provided to 
that organization.

                           [Separate Accounts]

    [Sec. 532. (a) Separate Accounts for Local Currencies.--(1) If 
assistance is furnished to the government of a foreign country under 
chapter 1 and 10 of part I or chapter 4 of part II of the Foreign 
Assistance Act of 1961 under agreements which result in the generation 
of local currencies of that country, the Administrator of the Agency for 
International Development shall--
        (A) require that local currencies be deposited in a separate 
    account established by that government;
        (B) enter into an agreement with that government which sets 
    forth--
            (i) the amount of the local currencies to be generated; and
            (ii) the terms and conditions under which the currencies so 
        deposited may be utilized, consistent with this section; and
        (C) establish by agreement with that government the 
    responsibilities of the Agency for International Development and 
    that government to monitor and account for deposits into and 
    disbursements from the separate account.
    (2) Uses of Local Currencies.--As may be agreed upon with the 
foreign government, local currencies deposited in a separate account 
pursuant to subsection (a), or an equivalent amount of local currencies, 
shall be used only--
        (A) to carry out chapter 1 or 10 of part I or chapter 4 of part 
    II (as the case may be), for such purposes as--
            (i) project and sector assistance activities; or
            (ii) debt and deficit financing; or
        (B) for the administrative requirements of the United States 
    Government.
    (3) Programming Accountability.--The Agency for International 
Development shall take all necessary steps to ensure that the equivalent 
of the local currencies disbursed pursuant to subsection (a)(2)(A) from 
the separate account established pursuant to subsection (a)(1) are used 
for the purposes agreed upon pursuant to subsection (a)(2).
    (4) Termination of Assistance Programs.--Upon termination of 
assistance to a country under chapter 1 or 10 of part I or chapter 4 of 
part II (as the case may be), any unencumbered balances of funds which 
remain in a separate account established pursuant to subsection (a) 
shall be disposed of for such purposes as may be agreed to by the 
government of that country and the United States Government.
    (5) Conforming Amendments.--The provisions of this subsection shall 
supersede the tenth and eleventh provisos contained under the heading 
``Sub-Saharan Africa, Development Assistance'' as included in the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1989 and sections 531(d) and 609 of the Foreign 
Assistance Act of 1961.
    (6) Reporting Requirement.--The Administrator of the Agency for 
International Development shall report on an annual basis as part of the 
justification documents submitted to the Committees on Appropriations on 
the use of local currencies for the administrative requirements of the 
United States Government as authorized in subsection (a)(2)(B), and such 
report shall include the amount of local currency (and United States 
dollar equivalent) used and/or to be used for such purpose in each 
applicable country.]
    [(b) Separate Accounts for Cash Transfers.--(1) If assistance is 
made available to the government of a foreign country, under chapter 1 
or 10 of part I or chapter 4 of part II of the Foreign Assistance Act of 
1961, as cash transfer assistance or as nonproject sector assistance, 
that country shall be required to maintain such funds in a separate 
account and not commingle them with any other funds.
    (2) Applicability of Other Provisions of Law.--Such funds may be 
obligated and expended notwithstanding provisions of law which are 
inconsistent with the nature of this assistance including provisions 
which are referenced in the Joint Explanatory Statement of the Committee 
of Conference accompanying House Joint Resolution 648 (H. Report No. 98-
1159).
    (3) Notification.--At least 15 days prior to obligating any such 
cash transfer or nonproject sector assistance, the President shall 
submit a notification through the regular notification procedures of the 
Committees on Appropriations, which shall include a detailed description 
of how the funds proposed to be made available will be used, with a 
discussion of the United States interests that will be served by the 
assistance (including, as appropriate, a description of the economic 
policy reforms that will be promoted by such assistance).
    (4) Exemption.--Nonproject sector assistance funds may be exempt 
from the requirements of subsection (b)(1) only through the notification 
procedures of the Committees on Appropriations.]

  Compensation for United States Executive Directors to International 
                         Financial Institutions

    Sec. [533] 524. (a) No funds appropriated by this Act may be made as 
payment to any international financial institution while the United 
States Executive Director to such institution is compensated by the 
institution at a rate which, together with whatever compensation such 
Director receives from the United States, is in excess of the rate 
provided for an individual occupying a position at level IV of the 
Executive Schedule under section 5315 of title 5, United States Code, or 
while any alternate United States Director to such institution is 
compensated by the institution at a rate in excess of the rate provided 
for an individual occupying a position at level V of the Executive 
Schedule under section 5316 of title 5, United States Code.
    (b) For purposes of this section, ``international financial 
institutions'' are: the International Bank for Reconstruction and 
Development, the Inter-American Development Bank, the Asian Development 
Bank, the Asian Development Fund, the African Development Bank, the 
African Development Fund, the International Monetary Fund, the North 
American Development Bank, and the European Bank for Reconstruction and 
Development.

          Compliance With United Nations Sanctions Against Iraq

    Sec. [534] 525. None of the funds appropriated or otherwise made 
available pursuant to this Act to carry out the Foreign Assistance Act 
of 1961 (including title IV of chapter 2 of part I, relating to the 
Overseas Private Investment Corporation) or the Arms Export Control Act 
may be used to provide assistance to any country that is not in 
compliance with the United Nations Security Council sanctions against 
Iraq unless the President determines and so certifies to the Congress 
that--
        (1) such assistance is in the national interest of the United 
    States;
        (2) such assistance will directly benefit the needy people in 
    that country; or

[[Page 977]]

        (3) the assistance to be provided will be humanitarian 
    assistance for foreign nationals who have fled Iraq and Kuwait.

            Competitive Pricing for Sales of Defense Articles

    Sec. [535] 526. Direct costs associated with meeting a foreign 
customer's additional or unique requirements will continue to be 
allowable under contracts under section 22(d) of the Arms Export Control 
Act. Loadings applicable to such direct costs shall be permitted at the 
same rates applicable to procurement of like items purchased by the 
Department of Defense for its own use.

 [Extension of Authority To Obligate Funds To Close the Special Defense 
                            Acquisition Fund]

    [Sec. 536. Title III of Public Law 103-306 is amended under the 
heading ``Special Defense Acquisition Fund'' by striking ``1998'' and 
inserting ``2000''.]

 Authorities for the Peace Corps, the Inter-American Foundation and the 
                     African Development Foundation

    Sec. [537] 527. Unless expressly provided to the contrary, 
provisions of this or any other Act, including provisions contained in 
prior Acts authorizing or making appropriations for foreign operations, 
export financing, and related programs, shall not be construed to 
prohibit activities authorized by or conducted under the Peace Corps 
Act, the Inter-American Foundation Act, or the African Development 
Foundation Act. The appropriate agency shall promptly report to the 
Committees on Appropriations whenever it is conducting activities or is 
proposing to conduct activities in a country for which assistance is 
prohibited.

                   Impact on Jobs in the United States

    Sec. [538] 528. None of the funds appropriated by this Act may be 
obligated or expended to provide--
        (1) any financial incentive to a business enterprise currently 
    located in the United States for the purpose of inducing such an 
    enterprise to relocate outside the United States if such incentive 
    or inducement is likely to reduce the number of employees of such 
    business enterprise in the United States because United States 
    production is being replaced by such enterprise outside the United 
    States;
        (2) assistance for the purpose of establishing or developing in 
    a foreign country any export processing zone or designated area in 
    which the tax, tariff, labor, environment, and safety laws of that 
    country do not apply, in part or in whole, to activities carried out 
    within that zone or area, unless the President determines and 
    certifies that such assistance is not likely to cause a loss of jobs 
    within the United States; or
        (3) assistance for any project or activity that contributes to 
    the violation of internationally recognized workers rights, as 
    defined in section 502(a)(4) of the Trade Act of 1974, of workers in 
    the recipient country, including any designated zone or area in that 
    country: Provided, That in recognition that the application of this 
    subsection should be commensurate with the level of development of 
    the recipient country and sector, the provisions of this subsection 
    shall not preclude assistance for the informal sector in such 
    country, micro and small-scale enterprise, and smallholder 
    agriculture.

                           Special Authorities

    Sec. [539] 529. (a) Funds appropriated in title II of this Act that 
are made available for Afghanistan, Lebanon, programs to support 
democratization, and for victims of war, displaced children, displaced 
Burmese, humanitarian assistance for Romania, and humanitarian 
assistance for the peoples of Bosnia and Herzegovina, Croatia, and 
Kosova, may be made available notwithstanding any other provision of 
law.
    (b) Funds appropriated by this Act to carry out the provisions of 
sections 103 through 106 of the Foreign Assistance Act of 1961 may be 
used, notwithstanding any other provision of law, for the purpose of 
supporting tropical forestry and energy programs aimed at reducing 
emissions of greenhouse gases, and for the purpose of supporting 
biodiversity conservation activities: Provided, That such assistance 
shall be subject to sections 116, 502B, and 620A of the Foreign 
Assistance Act of 1961.
    (c) The Agency for International Development may employ personal 
services contractors, notwithstanding any other provision of law, for 
the purpose of administering programs for the West Bank and Gaza.
    (d)(1) Waiver.--The President may waive the provisions of section 
1003 of Public Law 100-204 if the President determines and certifies in 
writing to the Speaker of the House of Representatives and the President 
pro tempore of the Senate that it is important to the national security 
interests of the United States.
    (2) Period of Application of Waiver.--Any waiver pursuant to 
paragraph (1) shall be effective for no more than a period of six months 
at a time and shall not apply beyond twelve months after enactment of 
this Act.
    (e) During fiscal year 1999, the President may use up to $50,000,000 
under the authority of section 451 of the Foreign Assistance Act of 
1961, notwithstanding the funding ceiling contained in subsection (a) of 
that section.

        [Policy on Terminating the Arab League Boycott of Israel]

    [Sec. 540. It is the sense of the Congress that--
        (1) the Arab League countries should immediately and publicly 
    renounce the primary boycott of Israel and the secondary and 
    tertiary boycott of American firms that have commercial ties with 
    Israel;
        (2) the decision by the Arab League in 1997 to reinstate the 
    boycott against Israel was deeply troubling and disappointing;
        (3) the Arab League should immediately rescind its decision on 
    the boycott and its members should develop normal relations with 
    their neighbor Israel; and
        (4) the President should--
            (A) take more concrete steps to encourage vigorously Arab 
        League countries to renounce publicly the primary boycotts of 
        Israel and the secondary and tertiary boycotts of American firms 
        that have commercial relations with Israel as a confidence-
        building measure;
            (B) take into consideration the participation of any 
        recipient country in the primary boycott of Israel and the 
        secondary and tertiary boycotts of American firms that have 
        commercial relations with Israel when determining whether to 
        sell weapons to said country;
            (C) report to Congress on the specific steps being taken by 
        the President to bring about a public renunciation of the Arab 
        primary boycott of Israel and the secondary and tertiary 
        boycotts of American firms that have commercial relations with 
        Israel and to expand the process of normalizing ties between 
        Arab League countries and Israel; and
            (D) encourage the allies and trading partners of the United 
        States to enact laws prohibiting businesses from complying with 
        the boycott and penalizing businesses that do comply.]

                        Anti-Narcotics Activities

    Sec. [541] 530. (a) Of the funds appropriated or otherwise made 
available by this Act for ``Economic Support Fund'', assistance may be 
provided to strengthen the administration of justice in countries in 
Latin America and the Caribbean and in other regions consistent with the 
provisions of section 534(b) of the Foreign Assistance Act of 1961, 
except that programs to enhance protection of participants in judicial 
cases may be conducted notwithstanding section 660 of that Act.
    (b) Funds made available pursuant to this section may be made 
available notwithstanding section 534(c) and the second and third 
sentences of section 534(e) of the Foreign Assistance Act of 1961. 
[Funds made available pursuant to subsection (a) for Bolivia, Colombia, 
and Peru may be made available notwithstanding section 534(c) and the 
second sentence of section 534(e) of the Foreign Assistance Act of 
1961.]

                       Eligibility for Assistance

    Sec. [542] 531. (a) Assistance Through Nongovernmental 
Organizations.--Restrictions contained in this or any other Act with 
respect to assistance for a country shall not be construed to restrict 
assistance in support of programs of nongovernmental organizations from 
funds appropriated by this Act to carry out the provisions of chapters 
1, 10, and 11 of part I, and chapter 4 of part II, of the Foreign 
Assistance Act of 1961, and the Support for East European Democracy Act 
of 1989: Provided, That the President shall take into consideration, in 
any case in which a restriction on assistance would be applicable but 
for this subsection, whether assistance in support of programs of 
nongovernmental organizations is in the national interest: Provided 
further, That before using the authority of this subsection to furnish 
assistance in support of programs of nongovernmental organizations, the 
President shall notify the Committees on Appropriations under the 
regular notification procedures of those committees, including a 
description of the program to be assisted, the assistance to be 
provided, and the reasons for furnishing such assistance: Provided 
further, That nothing in this subsection shall

[[Page 978]]

be construed to alter any existing statutory prohibitions against 
abortion or involuntary sterilizations contained in this or any other 
Act.
    (b) Public Law 480.--During fiscal year [1998] 1999, restrictions 
contained in this or any other Act with respect to assistance for a 
country shall not be construed to restrict assistance under the 
Agricultural Trade Development and Assistance Act of 1954: Provided, 
That none of the funds appropriated to carry out title I of such Act and 
made available pursuant to this subsection may be obligated or expended 
except as provided through the regular notification procedures of the 
Committees on Appropriations.
    (c) Exception.--This section shall not apply--
        (1) with respect to section 620A of the Foreign Assistance Act 
    or any comparable provision of law prohibiting assistance to 
    countries that support international terrorism; or (2) with respect 
    to section 116 of the Foreign Assistance Act of 1961 or any 
    comparable provision of law prohibiting assistance to [countries 
    that violate] the government of a country that violates 
    internationally recognized human rights.

                                Earmarks

    Sec. [543] 532. (a) Funds appropriated by this Act which are 
earmarked may be reprogrammed for other programs within the same account 
notwithstanding the earmark if compliance with the earmark is made 
impossible by operation of any provision of this or any other Act or, 
with respect to a country with which the United States has an agreement 
providing the United States with base rights or base access in that 
country, if the President determines that the recipient for which funds 
are earmarked has significantly reduced its military or economic 
cooperation with the United States since enactment of the Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1991; however, before exercising the authority of this subsection with 
regard to a base rights or base access country which has significantly 
reduced its military or economic cooperation with the United States, the 
President shall consult with, and shall provide a written policy 
justification to the Committees on Appropriations: Provided, That any 
such reprogramming shall be subject to the regular notification 
procedures of the Committees on Appropriations: Provided further, That 
assistance that is reprogrammed pursuant to this subsection shall be 
made available under the same terms and conditions as originally 
provided.
    (b) In addition to the authority contained in subsection (a), the 
original period of availability of funds appropriated by this Act and 
administered by the Agency for International Development that are 
earmarked for particular programs or activities by this or any other Act 
shall be extended for an additional fiscal year if the Administrator of 
such agency determines and reports promptly to the Committees on 
Appropriations that the termination of assistance to a country or a 
significant change in circumstances makes it unlikely that such 
earmarked funds can be obligated during the original period of 
availability: Provided, That such earmarked funds that are continued 
available for an additional fiscal year shall be obligated only for the 
purpose of such earmark.

                          Ceilings and Earmarks

    Sec. [544] 533. Ceilings and earmarks contained in this Act shall 
not be applicable to funds or authorities appropriated or otherwise made 
available by any subsequent Act unless such Act specifically so directs.

                 Prohibition on Publicity or Propaganda

    Sec. [545] 534. No part of any appropriation contained in this Act 
shall be used for publicity or propaganda purposes within the United 
States not authorized before the date of enactment of this Act by the 
Congress[: Provided, That not to exceed $500,000 may be made available 
to carry out the provisions of section 316 of Public Law 96-533].

            Purchase of American-Made Equipment and Products

    Sec. [546] 535. [(a)] To the maximum extent possible, assistance 
provided under this Act should make full use of American resources, 
including commodities, products, and services.
    [(b) It is the Sense of the Congress that, to the greatest extent 
practicable, all equipment and products purchased with funds made 
available in this Act should be American-made.]
    [(c) In providing financial assistance to, or entering into any 
contract with, any entity using funds made available in this Act, the 
head of each Federal agency, to the greatest extent practicable, shall 
provide to such entity a notice describing the statement made in 
subsection (b) by the Congress.]

           [Prohibition of Payments to United Nations Members]

    [Sec. 547. None of the funds appropriated or made available pursuant 
to this Act for carrying out the Foreign Assistance Act of 1961, may be 
used to pay in whole or in part any assessments, arrearages, or dues of 
any member of the United Nations.]

                          [Consulting Services]

    [Sec. 548. The expenditure of any appropriation under this Act for 
any consulting service through procurement contract, pursuant to section 
3109 of title 5, United States Code, shall be limited to those contracts 
where such expenditures are a matter of public record and available for 
public inspection, except where otherwise provided under existing law, 
or under existing Executive order pursuant to existing law.]

             [Private Voluntary Organizations-Documentation]

    [Sec. 549. None of the funds appropriated or made available pursuant 
to this Act shall be available to a private voluntary organization which 
fails to provide upon timely request any document, file, or record 
necessary to the auditing requirements of the Agency for International 
Development.]
[Prohibition on Assistance to Foreign Governments That Export Lethal 
    Military Equipment to Countries Supporting International Terrorism]
    [Sec. 550. (a) None of the funds appropriated or otherwise made 
available by this Act may be available to any foreign government which 
provides lethal military equipment to a country the government of which 
the Secretary of State has determined is a terrorist government for 
purposes of section 40(d) of the Arms Export Control Act. The 
prohibition under this section with respect to a foreign government 
shall terminate 12 months after that government ceases to provide such 
military equipment. This section applies with respect to lethal military 
equipment provided under a contract entered into after October 1, 1997.]
    [(b) Assistance restricted by subsection (a) or any other similar 
provision of law, may be furnished if the President determines that 
furnishing such assistance is important to the national interests of the 
United States.]
    [(c) Whenever the waiver of subsection (b) is exercised, the 
President shall submit to the appropriate congressional committees a 
report with respect to the furnishing of such assistance. Any such 
report shall include a detailed explanation of the assistance estimated 
to be provided, including the estimated dollar amount of such 
assistance, and an explanation of how the assistance furthers United 
States national interests.]

 [Withholding of Assistance for Parking Fines Owed by Foreign Countries]

    [Sec. 551. (a) In General.--Of the funds made available for a 
foreign country under part I of the Foreign Assistance Act of 1961, an 
amount equivalent to 110 percent of the total unpaid fully adjudicated 
parking fines and penalties owed to the District of Columbia by such 
country as of the date of enactment of this Act shall be withheld from 
obligation for such country until the Secretary of State certifies and 
reports in writing to the appropriate congressional committees that such 
fines and penalties are fully paid to the government of the District of 
Columbia.]
    [(b) Definition.--For purposes of this section, the term 
``appropriate congressional committees'' means the Committee on Foreign 
Relations and the Committee on Appropriations of the Senate and the 
Committee on International Relations and the Committee on Appropriations 
of the House of Representatives.]

    [Limitation on Assistance for the PLO for the West Bank and Gaza]

    [Sec. 552. None of the funds appropriated by this Act may be 
obligated for assistance for the Palestine Liberation Organization for 
the West Bank and Gaza unless the President has exercised the authority 
under section 604(a) of the Middle East Peace Facilitation Act of 1995 
(title VI of Public Law 104-107) or any other legislation to suspend or 
make inapplicable section 307 of the Foreign Assistance Act of 1961 and 
that suspension is still in effect: Provided, That if the President 
fails to make the certification under section 604(b)(2) of the Middle 
East Peace Facilitation Act of 1995 or to suspend the prohibition under 
other legislation, funds appropriated by this

[[Page 979]]

Act may not be obligated for assistance for the Palestine Liberation 
Organization for the West Bank and Gaza.]

                      War Crimes Tribunals Drawdown

    Sec. [553] 536. If the President determines that doing so will 
contribute to a just resolution of charges regarding genocide or other 
violations of international humanitarian law, the President may direct a 
drawdown pursuant to section 552(c) of the Foreign Assistance Act of 
1961, as amended, of up to $25,000,000 of commodities and services for 
the United Nations War Crimes Tribunal established with regard to the 
former Yugoslavia by the United Nations Security Council or such other 
tribunals or commissions as the Council may establish to deal with such 
violations, without regard to the ceiling limitation contained in 
paragraph (2) thereof: Provided, That the determination required under 
this section shall be in lieu of any determinations otherwise required 
under section 552(c): Provided further, That 60 days after the date of 
enactment of this Act, and every 180 days thereafter, the Secretary of 
State shall submit a report to the Committees on Appropriations 
describing the steps the United States Government is taking to collect 
information regarding allegations of genocide or other violations of 
international law in the former Yugoslavia and to furnish that 
information to the United Nations War Crimes Tribunal for the former 
Yugoslavia.

                                Landmines

    Sec. [554] 537. Notwithstanding any other provision of law, demining 
equipment available to the Agency for International Development and the 
Department of State and used in support of the clearance of landmines 
and unexploded ordnance for humanitarian purposes may be disposed of on 
a grant basis in foreign countries, subject to such terms and conditions 
as the President may prescribe[: Provided, That not later than 90 days 
after the enactment of this Act, the Secretary of Defense, in 
consultation with the Secretary of State, shall submit a report to the 
Committees on Appropriations describing potential alternative 
technologies or tactics and a plan for the development of such 
alternatives to protect anti-tank mines from tampering in a manner 
consistent with the ``Convention on the Prohibition, Use, Stockpiling, 
Production and Transfer of Anti-personnel Mines and on Their 
Destruction''].

           [Restrictions Concerning the Palestinian Authority]

    [Sec. 555. None of the funds appropriated by this Act may be 
obligated or expended to create in any part of Jerusalem a new office of 
any department or agency of the United States Government for the purpose 
of conducting official United States Government business with the 
Palestinian Authority over Gaza and Jericho or any successor Palestinian 
governing entity provided for in the Israel-PLO Declaration of 
Principles: Provided, That this restriction shall not apply to the 
acquisition of additional space for the existing Consulate General in 
Jerusalem: Provided further, That meetings between officers and 
employees of the United States and officials of the Palestinian 
Authority, or any successor Palestinian governing entity provided for in 
the Israel-PLO Declaration of Principles, for the purpose of conducting 
official United States Government business with such authority should 
continue to take place in locations other than Jerusalem. As has been 
true in the past, officers and employees of the United States Government 
may continue to meet in Jerusalem on other subjects with Palestinians 
(including those who now occupy positions in the Palestinian Authority), 
have social contacts, and have incidental discussions.]

               Prohibition of Payment of Certain Expenses

    Sec. [556] 538. None of the funds appropriated or otherwise made 
available by this Act under the heading ``International Military 
Education and Training'' or ``Foreign Military Financing Program'' for 
Informational Program activities may be obligated or expended to pay 
for--
        (1) alcoholic beverages;
        (2) food (other than food provided at a military installation) 
    not provided in conjunction with Informational Program trips where 
    students do not stay at a military installation; or
        (3) entertainment expenses for activities that are substantially 
    of a recreational character, including entrance fees at sporting 
    events and amusement parks.

                     [Equitable Allocation of Funds]

    [Sec. 557. Not more than 18 percent of the funds appropriated by 
this Act to carry out the provisions of sections 103 through 106 and 
chapter 4 of part II of the Foreign Assistance Act of 1961, that are 
made available for Latin America and the Caribbean region may be made 
available, through bilateral and Latin America and the Caribbean 
regional programs, to provide assistance for any country in such 
region.]

                   Special Debt Relief for the Poorest

    Sec. [558] 539. (a) Authority To Reduce Debt.--The President may 
reduce amounts owed to the United States (or any agency of the United 
States) by an eligible country as a result of--
        (1) guarantees issued under sections 221 and 222 of the Foreign 
    Assistance Act of 1961;
        (2) credits extended or guarantees issued under the Arms Export 
    Control Act; or
        (3) any obligation or portion of such obligation for a Latin 
    American country, to pay for purchases of United States agricultural 
    commodities guaranteed by the Commodity Credit Corporation under 
    export credit guarantee programs authorized pursuant to section 5(f) 
    of the Commodity Credit Corporation Charter Act of June 29, 1948, as 
    amended, section 4(b) of the Food for Peace Act of 1966, as amended 
    (Public Law 89-808), or section 202 of the Agricultural Trade Act of 
    1978, as amended (Public Law 95-501).
    (b) Limitations.--
        (1) The authority provided by subsection (a) may be exercised 
    only to implement multilateral official debt relief and referendum 
    agreements, commonly referred to as ``Paris Club Agreed Minutes''.
        (2) The authority provided by subsection (a) may be exercised 
    only in such amounts or to such extent as is provided in advance by 
    appropriations Acts.
        (3) The authority provided by subsection (a) may be exercised 
    only with respect to countries with heavy debt burdens that are 
    eligible to borrow from the International Development Association, 
    but not from the International Bank for Reconstruction and 
    Development, commonly referred to as ``IDA-only'' countries.
    (c) Conditions.--The authority provided by subsection (a) may be 
exercised only with respect to a country whose government--
        (1) does not have an excessive level of military expenditures;
        (2) has not repeatedly provided support for acts of 
    international terrorism;
        (3) is not failing to cooperate on international narcotics 
    control matters;
        (4) (including its military or other security forces) does not 
    engage in a consistent pattern of gross violations of 
    internationally recognized human rights; and
        (5) is not ineligible for assistance because of the application 
    of section 527 of the Foreign Relations Authorization Act, Fiscal 
    Years 1994 and 1995.
    (d) Availability of Funds.--The authority provided by subsection (a) 
may be used only with regard to funds appropriated by this Act under the 
heading ``Debt restructuring''.
    (e) Certain Prohibitions Inapplicable.--A reduction of debt pursuant 
to subsection (a) shall not be considered assistance for purposes of any 
provision of law limiting assistance to a country. The authority 
provided by subsection (a) may be exercised notwithstanding section 
620(r) of the Foreign Assistance Act of 1961.

              Authority To Engage in Debt Buybacks or Sales

    Sec. [559] 540. (a) Loans Eligible for Sale, Reduction, or 
Cancellation.--
        (1) Authority to sell, reduce, or cancel certain loans.-- 
    Notwithstanding any other provision of law, the President may, in 
    accordance with this section, sell to any eligible purchaser any 
    concessional loan or portion thereof made before January 1, 1995, 
    pursuant to the Foreign Assistance Act of 1961, to the government of 
    any eligible country as defined in section 702(6) of that Act or on 
    receipt of payment from an eligible purchaser, reduce or cancel such 
    loan or portion thereof, only for the purpose of facilitating--
            (A) debt-for-equity swaps, debt-for-development swaps, or 
        debt-for-nature swaps; or
            (B) a debt buyback by an eligible country of its own 
        qualified debt, only if the eligible country uses an additional 
        amount of the local currency of the eligible country, equal to 
        not less than 40 percent of the price paid for such debt by such 
        eligible country, or the difference between the price paid for 
        such debt and the face value of such debt, to support activities 
        that link conservation and sustainable use of natural resources 
        with local community development, and child survival and other 
        child develop-

[[Page 980]]

        ment, in a manner consistent with sections 707 through 710 of 
        the Foreign Assistance Act of 1961, if the sale, reduction, or 
        cancellation would not contravene any term or condition of any 
        prior agreement relating to such loan.
        (2) Terms and conditions.--Notwithstanding any other provision 
    of law, the President shall, in accordance with this section, 
    establish the terms and conditions under which loans may be sold, 
    reduced, or canceled pursuant to this section.
        (3) Administration.--The Facility, as defined in section 702(8) 
    of the Foreign Assistance Act of 1961, shall notify the 
    administrator of the agency primarily responsible for administering 
    part I of the Foreign Assistance Act of 1961 of purchasers that the 
    President has determined to be eligible, and shall direct such 
    agency to carry out the sale, reduction, or cancellation of a loan 
    pursuant to this section. Such agency shall make an adjustment in 
    its accounts to reflect the sale, reduction, or cancellation.
        (4) Limitation.--The authorities of this subsection shall be 
    available only to the extent that appropriations for the cost of the 
    modification, as defined in section 502 of the Congressional Budget 
    Act of 1974, are made in advance.
    (b) Deposit of Proceeds.--The proceeds from the sale, reduction, or 
cancellation of any loan sold, reduced, or canceled pursuant to this 
section shall be deposited in the United States Government account or 
accounts established for the repayment of such loan.
    (c) Eligible Purchasers.--A loan may be sold pursuant to subsection 
(a)(1)(A) only to a purchaser who presents plans satisfactory to the 
President for using the loan for the purpose of engaging in debt-for-
equity swaps, debt-for-development swaps, or debt-for-nature swaps.
    (d) Debtor Consultations.--Before the sale to any eligible 
purchaser, or any reduction or cancellation pursuant to this section, of 
any loan made to an eligible country, the President should consult with 
the country concerning the amount of loans to be sold, reduced, or 
canceled and their uses for debt-for-equity swaps, debt-for-development 
swaps, or debt-for-nature swaps.
    (e) Availability of Funds.--The authority provided by subsection (a) 
may be used only with regard to funds appropriated by this Act under the 
heading ``Debt restructuring''.

                 [International Financial Institutions]

    [Sec. 560. (a) Authorizations.--The Secretary of the Treasury may, 
to fulfill commitments of the United States: (1) effect the United 
States participation in the first general capital increase of the 
European Bank for Reconstruction and Development, subscribe to and make 
payment for 100,000 additional shares of the capital stock of the Bank 
on behalf of the United States; and (2) contribute on behalf of the 
United States to the eleventh replenishment of the resources of the 
International Development Association, to the sixth replenishment of the 
resources of the Asian Development Fund, a special fund of the Asian 
Development Bank. The following amounts are authorized to be 
appropriated without fiscal year limitation for payment by the Secretary 
of the Treasury: (1) $285,772,500 for paid-in capital, and $984,327,500 
for callable capital of the European Bank for Reconstruction and 
Development; (2) $1,600,000,000 for the International Development 
Association; (3) $400,000,000 for the Asian Development Fund; and (4) 
$76,832,001 for paid-in capital, and $4,511,156,729 for callable capital 
of the Inter-American Development Bank in connection with the eighth 
general increase in the resources of that Bank. Each such subscription 
or contribution shall be subject to obtaining the necessary 
appropriations.]
    [(b) Consideration of Environmental Impact of International Finance 
Corporation Loans.--Section 1307 of the International Financial 
Institutions Act (Public Law 95-118) is amended as follows:
        (1) in subsection (a)(1)(A) strike ``borrowing country'' and 
    insert in lieu thereof ``borrower'';
        (2) in subsection (a)(2)(A) strike ``country''; and
        (3) at the end of section 1307, add a new subsection as follows:
        ``(g) For purposes of this section, the term `multilateral 
    development bank' means any of the institutions named in section 
    1303(b) of this Act, and the International Finance Corporation.''.]
    [(c) The Secretary of the Treasury shall instruct the United States 
Executive Directors of the International Bank for Reconstruction and 
Development and the International Development Association to use the 
voice and vote of the United States to strongly encourage their 
respective institutions to--
        (1) provide timely public information on procurement 
    opportunities available to United States suppliers, with a special 
    emphasis on small business; and
        (2) systematically consult with local communities on the 
    potential impact of loans as part of the normal lending process, and 
    expand the participation of affected peoples and nongovernmental 
    organizations in decisions on the selection, design and 
    implementation of policies and projects.]

           Sanctions Against Countries Harboring War Criminals

    Sec. [561] 541. (a) Bilateral Assistance.--The President is 
authorized to withhold funds appropriated by this Act under the Foreign 
Assistance Act of 1961 or the Arms Export Control Act for any country 
described in subsection (c).
    (b) Multilateral Assistance.--The Secretary of the Treasury should 
instruct the United States executive directors of the international 
financial institutions to work in opposition to, and vote against, any 
extension by such institutions of financing or financial or technical 
assistance to any country described in subsection (c).
    (c) Sanctioned Countries.--A country described in this subsection is 
a country the government of which knowingly grants sanctuary to persons 
in its territory for the purpose of evading prosecution, where such 
persons--
        (1) have been indicted by the International Criminal Tribunal 
    for Rwanda, the International Criminal Tribunal for the former 
    Yugoslavia, or any other international tribunal with similar 
    standing under international law; or
        (2) have been indicted for war crimes or crimes against humanity 
    committed during the period beginning March 23, 1933 and ending on 
    May 8, 1945 under the direction of, or in association with--
            (A) the Nazi government of Germany;
            (B) any government in any area occupied by the military 
        forces of the Nazi government of Germany;
            (C) any government which was established with the assistance 
        or cooperation of the Nazi government; or
            (D) any government which was an ally of the Nazi government 
        of Germany.

                  [Limitation on Assistance for Haiti]

    [Sec. 562. (a) Limitation.--None of the funds appropriated or 
otherwise made available by this Act may be provided to the Government 
of Haiti unless the President reports to Congress that the Government of 
Haiti--
        (1) is conducting thorough investigations of extrajudicial and 
    political killings;
        (2) is cooperating with United States authorities in the 
    investigations of political and extrajudicial killings;
        (3) has substantially completed privatization of (or placed 
    under long-term private management or concession) at least three 
    major public enterprises; and
        (4) has taken action to remove from the Haitian National Police, 
    national palace and residential guard, ministerial guard, and any 
    other public security entity of Haiti those individuals who are 
    credibly alleged to have engaged in or conspired to conceal gross 
    violations of internationally recognized human rights.]
    [(b) Exceptions.--The limitation in subsection (a) does not apply to 
the provision of humanitarian, electoral, counter-narcotics, or law 
enforcement assistance.]
    [(c) Waiver.--The President may waive the requirements of this 
section on a semiannual basis if the President determines and certifies 
to the appropriate committees of Congress that such waiver is in the 
national interest of the United States.]
    [(d) Parastatals Defined.--As used in this section, the term 
``parastatal'' means a government-owned enterprise.]

  [Requirement for Disclosure of Foreign Aid in Report of Secretary of 
                                 State]

    [Sec. 563. (a) Foreign Aid Reporting Requirement.--In addition to 
the voting practices of a foreign country, the report required to be 
submitted to Congress under section 406(a) of the Foreign Relations 
Authorization Act, fiscal years 1990 and 1991 (22 U.S.C. 2414a), shall 
include a side-by-side comparison of individual countries' overall 
support for the United States at the United Nations and the amount of 
United States assistance provided to such country in fiscal year 1997.] 
[(b) United States Assistance.--For purposes of this section, the term 
``United States assistance'' has the meaning given the term in section 
481(e)(4) of the Foreign Assistance Act of 1961 (22 U.S.C. 2291(e)(4)).]

[[Page 981]]

  [Restrictions on Voluntary Contributions to United Nations Agencies]

    [Sec. 564. (a) Prohibition on Voluntary Contributions for the United 
Nations.--None of the funds appropriated or otherwise made available by 
this Act may be made available to pay any voluntary contribution of the 
United States to the United Nations (including the United Nations 
Development Program) if the United Nations implements or imposes any 
taxation on any United States persons.]
    [(b) Certification Required for Disbursement of Funds.--None of the 
funds appropriated or otherwise made available under this Act may be 
made available to pay any voluntary contribution of the United States to 
the United Nations (including the United Nations Development Program) 
unless the President certifies to the Congress 15 days in advance of 
such payment that the United Nations is not engaged in any effort to 
implement or impose any taxation on United States persons in order to 
raise revenue for the United Nations or any of its specialized 
agencies.]
    [(c) Definitions.--As used in this section the term ``United States 
person'' refers to--
        (1) a natural person who is a citizen or national of the United 
    States; or
        (2) a corporation, partnership, or other legal entity organized 
    under the United States or any State, territory, possession, or 
    district of the United States.]

                         [Assistance to Turkey]

    [Sec. 565. (a) Not more than $40,000,000 of the funds appropriated 
in this Act under the heading ``Economic Support Fund'' may be made 
available for Turkey.]
    [(b) Of the funds made available under the heading ``Economic 
Support Fund'' for Turkey, not less than 50 percent of these funds shall 
be made available for the purpose of supporting private nongovernmental 
organizations engaged in strengthening democratic institutions in 
Turkey, providing economic assistance for individuals and communities 
affected by civil unrest, and supporting and promoting peaceful 
solutions and economic development which will contribute to the 
settlement of regional problems in Turkey.]

Limitation on Assistance to the Palestinian Authority or the Palestinian 
                         Liberation Organization

    Sec. [566] 542. (a) Prohibition of Funds.--None of the funds 
appropriated by this Act to carry out the provisions of chapter 4 of 
part II of the Foreign Assistance Act of 1961 may be obligated or 
expended with respect to providing funds to the Palestinian Authority or 
the Palestinian Liberation Organization.
    (b) Waiver.--The prohibition included in subsection (a) shall not 
apply if the President certifies in writing to the Speaker of the House 
of Representatives and the President pro tempore of the Senate that 
waiving such prohibition is important to the national security interests 
of the United States.
    (c) Period of Application of Waiver.--Any waiver pursuant to 
subsection (b) shall be effective for no more than a period of six 
months at a time and shall not apply beyond twelve months after 
enactment of this Act.

         [Limitation on Assistance to the Government of Croatia]

    [Sec. 567. None of the funds appropriated or otherwise made 
available by title II of this Act may be made available to the 
Government of Croatia to relocate the remains of Croatian Ustashe 
soldiers, at the site of the World War II concentration camp at 
Jasenovac, Croatia.]

                          [Burma Labor Report]

    [Sec. 568. Not later than 120 days after enactment of this Act, the 
Secretary of Labor in consultation with the Secretary of State shall 
provide to the Committees on Appropriations a report addressing labor 
practices in Burma.]

                                  Haiti

    Sec. [569] 543. The Government of Haiti shall be eligible to 
purchase defense articles and services under the Arms Export Control Act 
(22 U.S.C. 2751 et seq.), for the civilian-led Haitian National Police 
and Coast Guard: Provided, That the authority provided by this section 
shall be subject to the regular notification procedures of the 
Committees on Appropriations.

              [Limitation on Assistance to Security Forces]

    [Sec. 570. None of the funds made available by this Act may be 
provided to any unit of the security forces of a foreign country if the 
Secretary of State has credible evidence that such unit has committed 
gross violations of human rights, unless the Secretary determines and 
reports to the Committees on Appropriations that the government of such 
country is taking effective measures to bring the responsible members of 
the security forces unit to justice: Provided, That nothing in this 
section shall be construed to withhold funds made available by this Act 
from any unit of the security forces of a foreign country not credibly 
alleged to be involved in gross violations of human rights: Provided 
further, That in the event that funds are withheld from any unit 
pursuant to this section, the Secretary of State shall promptly inform 
the foreign government of the basis for such action and shall, to the 
maximum extent practicable, assist the foreign government in taking 
effective measures to bring the responsible members of the security 
forces to justice.]

      [Limitations on Transfer of Military Equipment to East Timor]

    [Sec. 571. In any agreement for the sale, transfer, or licensing of 
any lethal equipment or helicopter for Indonesia entered into by the 
United States pursuant to the authority of this Act or any other Act, 
the agreement shall state that the United States expects that the items 
will not be used in East Timor: Provided, That nothing in this section 
shall be construed to limit Indonesia's inherent right to legitimate 
national self-defense as recognized under the United Nations Charter and 
international law.]

                        [Transparency of Budgets]

    [Sec. 572. (a) Section 576(a)(1) of the Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1997, as contained 
in Public Law 104-208, is amended to read as follows:
        ``(1) does not have in place a functioning system for reporting 
    to civilian authorities audits of receipts and expenditures that 
    fund activities of the armed forces and security forces;''. (b) 
    Section 576(a)(2) of the Foreign Operations, Export Financing, and 
    Related Programs Appropriations Act, 1997, as contained in Public 
    Law 104-208, is amended to read as follows:
        ``(2) has not provided to the institution information about the 
    audit process requested by the institution.''.]

[Restrictions on Assistance to Countries Providing Sanctuary to Indicted 
                             War Criminals]

    [Sec. 573. (a) Bilateral Assistance.--None of the funds made 
available by this or any prior Act making appropriations for foreign 
operations, export financing and related programs, may be provided for 
any country, entity or canton described in subsection (d).]
    [(b) Multilateral Assistance.--
        (1) Prohibition.--The Secretary of the Treasury shall instruct 
    the United States executive directors of the international financial 
    institutions to work in opposition to, and vote against, any 
    extension by such institutions of any financial or technical 
    assistance or grants of any kind to any country or entity described 
    in subsection (d).
        (2) Notification.--Not less than 15 days before any vote in an 
    international financial institution regarding the extension of 
    financial or technical assistance or grants to any country or entity 
    described in subsection (d), the Secretary of the Treasury, in 
    consultation with the Secretary of State, shall provide to the 
    Committee on Appropriations and the Committee on Foreign Relations 
    of the Senate and the Committee on Appropriations and the Committee 
    on Banking and Financial Services of the House of Representatives a 
    written justification for the proposed assistance, including an 
    explanation of the United States position regarding any such vote, 
    as well as a description of the location of the proposed assistance 
    by municipality, its purpose, and its intended beneficiaries.
        (3) Definition.--The term ``international financial 
    institution'' includes the International Monetary Fund, the 
    International Bank for Reconstruction and Development, the 
    International Development Association, the International Finance 
    Corporation, the Multilateral Investment Guaranty Agency, and the 
    European Bank for Reconstruction and Development.]
    [(c) Exceptions.--
        (1) In general.--Subject to paragraph (2), subsections (a) and 
    (b) shall not apply to the provision of--
            (A) humanitarian assistance;

[[Page 982]]

            (B) democratization assistance;
            (C) assistance for cross border physical infrastructure 
        projects involving activities in both a sanctioned country, 
        entity, or canton and a nonsanctioned contiguous country, 
        entity, or canton, if the project is primarily located in and 
        primarily benefits the nonsanctioned country, entity, or canton 
        and if the portion of the project located in the sanctioned 
        country, entity, or canton is necessary only to complete the 
        project;
            (D) small-scale assistance projects or activities requested 
        by United States Armed Forces that promote good relations 
        between such forces and the officials and citizens of the areas 
        in the United States SFOR sector of Bosnia;
            (E) implementation of the Brcko Arbitral Decision;
            (F) lending by the international financial institutions to a 
        country or entity to support common monetary and fiscal policies 
        at the national level as contemplated by the Dayton Agreement; 
        or
            (G) direct lending to a non-sanctioned entity, or lending 
        passed on by the national government to a non-sanctioned entity.
        (2) Further limitations.--Notwithstanding paragraph (1)--
            (A) no assistance may be made available by this Act, or any 
        prior Act making appropriations for foreign operations, export 
        financing and related programs, in any country, entity, or 
        canton described in subsection (d), for a program, project, or 
        activity in which a publicly indicted war criminal is known to 
        have any financial or material interest; and
            (B) no assistance (other than emergency foods or medical 
        assistance or demining assistance) may be made available by this 
        Act, or any prior Act making appropriations for foreign 
        operations, export financing and related programs for any 
        program, project, or activity in a community within any country, 
        entity or canton described in subsection (d) if competent 
        authorities within that community are not complying with the 
        provisions of Article IX and Annex 4, Article II, paragraph 8 of 
        the Dayton Agreement relating to war crimes and the Tribunal.]
    [(d) Sanctioned Country, Entity, or Canton.--A sanctioned country, 
entity, or canton described in this section is one whose competent 
authorities have failed, as determined by the Secretary of State, to 
take necessary and significant steps to apprehend and transfer to the 
Tribunal all persons who have been publicly indicted by the Tribunal.]
    [(e) Waiver.--
        (1) In general.--The Secretary of State may waive the 
    application of subsection (a) or subsection (b) with respect to 
    specified bilateral programs or international financial institution 
    projects or programs in a sanctioned country, entity, or canton upon 
    providing a written determination to the Committee on Appropriations 
    and the Committee on Foreign Relations of the Senate and the 
    Committee on Appropriations and the Committee on International 
    Relations of the House of Representatives that such assistance 
    directly supports the implementation of the Dayton Agreement and its 
    Annexes, which include the obligation to apprehend and transfer 
    indicted war criminals to the Tribunal.
        (2) Report.--Not later than 15 days after the date of any 
    written determination under paragraph (e)(1), the Secretary of State 
    shall submit a report to the Committee on Appropriations and the 
    Committee on Foreign Relations of the Senate and the Committee on 
    Appropriations and the Committee on International Relations of the 
    House of Representatives regarding the status of efforts to secure 
    the voluntary surrender or apprehension and transfer of persons 
    indicted by the Tribunal, in accordance with the Dayton Agreement, 
    and outlining obstacles to achieving this goal.
        (3) Assistance programs and projects affected.--Any waiver made 
    pursuant to this subsection shall be effective only with respect to 
    a specified bilateral program or multilateral assistance project or 
    program identified in the determination of the Secretary of State to 
    Congress.]
    [(f) Termination of Sanctions.--The sanctions imposed pursuant to 
subsections (a) and (b) with respect to a country or entity shall cease 
to apply only if the Secretary of State determines and certifies to 
Congress that the authorities of that country, entity, or canton have 
apprehended and transferred to the Tribunal all persons who have been 
publicly indicted by the Tribunal.]
    [(g) Definitions.--As used in this section--
        (1) Country.--The term ``country'' means Bosnia-Herzegovina, 
    Croatia, and Serbia-Montenegro (Federal Republic of Yugoslavia).
        (2) Entity.--The term ``entity'' refers to the Federation of 
    Bosnia and Herzegovina and the Republika Srpska.
        (3) Canton.--The term ``canton'' means the administrative units 
    in Bosnia and Herzegovina.
        (4) Dayton agreement.--The term ``Dayton Agreement'' means the 
    General Framework Agreement for Peace in Bosnia and Herzegovina, 
    together with annexes relating thereto, done at Dayton, November 10 
    through 16, 1995.
        (5) Tribunal.--The term ``Tribunal'' means the International 
    Criminal Tribunal for the Former Yugoslavia.]
    [(h) Role of Human Rights Organizations and Government Agencies.--In 
carrying out this subsection, the Secretary of State, the Administrator 
of the Agency for International Development, and the executive directors 
of the international financial institutions shall consult with 
representatives of human rights organizations and all government 
agencies with relevant information to help prevent publicly indicted war 
criminals from benefitting from any financial or technical assistance or 
grants provided to any country or entity described in subsection (d).]

             [Extension of Certain Adjudication Provisions]

    [Sec. 574. The Foreign Operations, Export Financing, and Related 
Programs Appropriations Act, 1990 (Public Law 101-167) is amended--
        (1) in section 599D (8 U.S.C. 1157 note)--
            (A) in subsection (b)(3), by striking ``and 1997'' and 
        inserting ``1997, and 1998''; and
            (B) in subsection (e), by striking ``October 1, 1997'' each 
        place it appears and inserting ``October 1, 1998''; and
        (2) in section 599E (8 U.S.C. 1255 note) in subsection (b)(2), 
    by striking ``September 30, 1997'' and inserting ``September 30, 
    1998''.]

Additional Requirements Relating to Stockpiling of Defense articles for 
                            Foreign Countries

    Sec. [575] 544. (a) Value of Additions to Stockpiles.--Section 
514(b)(2)(A) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321h(b)(2)(A)) is amended by inserting before the period at the end the 
following: ``and [$60,000,000 for fiscal year 1998''] $340,000,000 for 
fiscal year 1999''.
    (b) Requirements Relating to the Republic of Korea and Thailand.--
Section 514(b)(2)(B) of such Act (22 U.S.C. 2321h(b)(2)(B)) is amended 
by adding at the end the following: ``Of the amount specified in 
subparagraph (A) for fiscal year [1998, not more than $40,000,000] 1999, 
not more than $320,000,000 may be made available for stockpiles in the 
Republic of Korea and not more than $20,000,000 may be made available 
for stockpiles in Thailand.''.

      [Delivery of Drawdown by Commercial Transportation Services]

    [Sec. 576. Section 506 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2318) is amended--
        (1) in subsection (b)(2), by striking the period and inserting 
    the following: ``, including providing the Congress with a report 
    detailing all defense articles, defense services, and military 
    education and training delivered to the recipient country or 
    international organization upon delivery of such articles or upon 
    completion of such services or education and training. Such report 
    shall also include whether any savings were realized by utilizing 
    commercial transport services rather than acquiring those services 
    from United States Government transport assets.'';
        (2) by redesignating subsection (c) as subsection (d); and
        (3) by inserting after subsection (b) the following:
            ``(c) For the purposes of any provision of law that 
        authorizes the drawdown of defense or other articles or 
        commodities, or defense or other services from an agency of the 
        United States Government, such drawdown may include the supply 
        of commercial transportation and related services that are 
        acquired by contract for the purposes of the drawdown in 
        question if the cost to acquire such commercial transportation 
        and related services is less than the cost to the United States 
        Government of providing such services from existing agency 
        assets.''.]

 [To Prohibit Foreign Assistance to the Government of Russia Should It 
   Implement Laws Which Would Discriminate Against Minority Religious 
                    Faiths in the Russian Federation]

    [Sec. 577. (a) None of the funds appropriated under this Act may be 
made available for the Government of the Russian Federation

[[Page 983]]

unless within 30 days of the date this section becomes effective the 
President determines and certifies in writing to the Committees on 
Appropriations and the Committee on Foreign Relations of the Senate and 
the Committee on International Relations of the House of Representatives 
that the Government of the Russian Federation has implemented no 
statute, executive order, regulation or similar government action that 
would discriminate, or would have as its principal effect 
discrimination, against religious groups or religious communities in the 
Russian Federation in violation of accepted international agreements on 
human rights and religious freedoms to which the Russian Federation is a 
party.]
    [(b) This section shall become effective 150 days after the 
enactment of this Act.]

   [United States Policy Regarding Support for Countries of the South 
                       Caucasus and Central Asia]

    [Sec. 578. (a) Findings.--Congress makes the following findings:
        (1) The ancient Silk Road, once the economic lifeline of Central 
    Asia and the South Caucasus, traversed much of the territory now 
    within the countries of Armenia, Azerbaijan, Georgia, Kazakstan, 
    Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.
        (2) Economic interdependence spurred mutual cooperation among 
    the peoples along the Silk Road and restoration of the historic 
    relationships and economic ties between those peoples is an 
    important element of ensuring their sovereignty as well as the 
    success of democratic and market reforms.
        (3) The development of strong political and economic ties 
    between countries of the South Caucasus and Central Asia and the 
    West will foster stability in the region.
        (4) The development of open market economies and open democratic 
    systems in the countries of the South Caucasus and Central Asia will 
    provide positive incentives for international private investment, 
    increased trade, and other forms of commercial interactions with the 
    rest of the world.
        (5) The Caspian Sea Basin, overlapping the territory of the 
    countries of the South Caucasus and Central Asia, contains proven 
    oil and gas reserves that may exceed $4,000,000,000,000 in value.
        (6) The region of the South Caucasus and Central Asia will 
    produce oil and gas in sufficient quantities to reduce the 
    dependence of the United States on energy from the volatile Persian 
    Gulf region.
        (7) United States foreign policy and international assistance 
    should be narrowly targeted to support the economic and political 
    independence of the countries of the South Caucasus and Central 
    Asia.]
    [(b) General.--The policy of the United States in the countries of 
the South Caucasus and Central Asia should be--
        (1) to promote sovereignty and independence with democratic 
    government;
        (2) to assist actively in the resolution of regional conflicts;
        (3) to promote friendly relations and economic cooperation;
        (4) to help promote market-oriented principles and practices;
        (5) to assist in the development of infrastructure necessary for 
    communications, transportation, and energy and trade on an East-West 
    axis in order to build strong international relations and commerce 
    between those countries and the stable, democratic, and market-
    oriented countries of the Euro-Atlantic Community; and
        (6) to support United States business interests and investments 
    in the region.]
    [(c) Definition.--In this section, the term ``countries of the South 
Caucasus and Central Asia'' means Armenia, Azerbaijan, Georgia, 
Kazakstan, Kyrgystan, Tajikistan, Turkmenistan, and Uzbekistan.]

                                Pakistan

    [Sec. 579. (a) OPIC.--Section 239(f) of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2199(f)) is amended by inserting ``, or Pakistan'' 
after ``China''.]
    [(b) Trade and Development.--It is the sense of Congress that the 
Director of the Trade and Development Agency should use funds made 
available to carry out the provisions of section 661 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2421) to promote United States exports 
to Pakistan.]
    Sec. 545. Section 638(b) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2398(b)) is amended (1) by inserting ``or any activity to promote 
the development of democratic institutions'' after ``activity''; and (2) 
by inserting ``, Pakistan,'' after ``Brazil''.

[Requirements for the Reporting to Congress of the Costs to the Federal 
 Government Associated with the Proposed Agreement to Reduce Greenhouse 
                             Gas Emissions]

    [Sec. 580. The President shall provide to the Congress a detailed 
account of all Federal agency obligations and expenditures for climate 
change programs and activities, domestic and international, for fiscal 
year 1997, planned obligations for such activities in fiscal year 1998, 
and any plan for programs thereafter in the context of negotiations to 
amend the Framework Convention on Climate Change (FCCC) to be provided 
to the appropriate congressional committees no later than November 15, 
1997.]

           [Authority To Issue Insurance and Extend Financing]

    [Sec. 581. (a) In General.--Section 235(a) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2195(a)) is amended--
        (1) by striking paragraphs (1) and (2)(A) and inserting the 
    following:
            ``(1) Insurance and financing.--(A) The maximum contingent 
        liability outstanding at any one time pursuant to insurance 
        issued under section 234(a), and the amount of financing issued 
        under sections 234(b) and (c), shall not exceed in the aggregate 
        $29,000,000,000.'';
        (2) by redesignating paragraph (3) as paragraph (2); and
        (3) by amending paragraph (2) (as so redesignated) by striking 
    ``September 30, 1997'' and inserting ``September 30, 1999''.]
    [(b) Conforming Amendment.--Paragraph (2) of section 235(a) of that 
Act (22 U.S.C. 2195(a)), as redesignated by subsection (a), is further 
amended by striking ``(a) and (b)'' and inserting ``(a), (b), and 
(c)''.]

 Withholding Assistance to Countries Violating United Nations Sanctions 
                              Against Libya

    Sec. [582. (a)] 546. Withholding of Assistance.--Except as provided 
in subsection (b), whenever the President determines and certifies to 
Congress that the government of any country is violating any sanction 
against Libya imposed pursuant to United Nations Security Council 
Resolution 731, 748, or 883, then not less than 5 percent of the funds 
allocated for the country under section 653(a) of the Foreign Assistance 
Act of 1961 out of appropriations in this Act shall be withheld from 
obligation and expenditure for that country.
    (b) Exception.--The requirement to withhold funds under subsection 
(a) shall not apply to funds appropriated in this Act for allocation 
under section 653(a) of the Foreign Assistance Act of 1961 for 
development assistance or for humanitarian assistance.
    (c) Waiver.--Funds may be provided for a country without regard to 
subsection (a) if the President determines that to do so is in the 
national security interest of the United States.

                        [War Crimes Prosecution]

    [Sec. 583. Section 2401 of title 18, United States Code (Public Law 
104-192; the War Crimes Act of 1996) is amended as follows--
        (1) in subsection (a), by striking ``grave breach of the Geneva 
    Conventions'' and inserting ``war crime'';
        (2) in subsection (b), by striking ``breach'' each place it 
    appears and inserting ``war crime''; and
        (3) so that subsection (c) reads as follows:
    ``(c) Definition.--As used in this section the term `war crime' 
means any conduct--
        ``(1) defined as a grave breach in any of the international 
    conventions signed at Geneva 12 August 1949, or any protocol to such 
    convention to which the United States is a party;
        ``(2) prohibited by Article 23, 25, 27, or 28 of the Annex to 
    the Hague Convention IV, Respecting the Laws and Customs of War on 
    Land, signed 18 October 1907;
  
        ``(3) which constitutes a violation of common Article 3 of the 
    international conventions signed at Geneva, 12 August 1949, or any 
    protocol to such convention to which the United States is a party 
    and which deals with non-international armed conflict; or
        ``(4) of a person who, in relation to an armed conflict and 
    contrary to the provisions of the Protocol on Prohibitions or 
    Restrictions on the Use of Mines, Booby-Traps and Other Devices as 
    amended at Geneva on 3 May 1996 (Protocol II as amended on 3 May 
    1996), when the United States is a party to such Protocol, willfully 
    kills or causes serious injury to civilians.''.]

[[Page 984]]

   [International Military Education and Training Programs for Latin 
                                America]

    [Sec. 584. (a) Expanded IMET.--The Secretary of Defense, in 
consultation with the Secretary of State, should make every effort to 
ensure that approximately 30 percent of the funds appropriated in this 
Act for ``International Military Education and Training'' for the cost 
of Latin American participants in IMET programs will be disbursed for 
the purpose of supporting enrollment of such participants in expanded 
IMET courses.]
    [(b) Civilian Participation.--The Secretary of State, in 
consultation with the Secretary of Defense, should identify sufficient 
numbers of qualified, non-military personnel from countries in Latin 
America so that approximately 25 percent of the total number of 
individuals from Latin American countries attending United States 
supported IMET programs and the Center for Hemispheric Defense Studies 
at the National Defense University are civilians.]
    [(c) Report.--Not later than twelve months after the date of 
enactment of this Act, the Secretary of Defense, in consultation with 
the Secretary of State, shall report in writing to the appropriate 
committees of the Congress on the progress made to improve military 
training of Latin American participants in the areas of human rights and 
civilian control of the military. The Secretary shall include in the 
report plans for implementing additional expanded IMET programs for 
Latin America during the next three fiscal years.]

       [Aid to the Government of the Democratic Republic of Congo]

    [Sec. 585. None of the funds appropriated or otherwise made 
available by this Act may be provided to the central Government of the 
Democratic Republic of Congo until such time as the President reports in 
writing to the Congress that the central Government of the Democratic 
Republic of Congo is cooperating fully with investigators from the 
United Nations in accounting for human rights violations committed in 
the Democratic Republic of Congo or adjacent countries.]

                    [Assistance for the Middle East]

    [Sec. 586. Of the funds appropriated by this Act under the headings 
``Economic Support Fund'', ``Foreign Military Financing'', 
``International Military Education and Training'', ``Peacekeeping 
Operations'', for refugees resettling in Israel under the heading 
``Migration and Refugee Assistance'', and for assistance for Israel to 
carry out provisions of chapter 8 of part II of the Foreign Assistance 
Act of 1961 under the heading ``Nonproliferation, Anti-Terrorism, 
Demining, and Related Programs'', not more than a total of 
$5,402,850,000 may be made available for Israel, Egypt, Jordan, Lebanon, 
the West Bank and Gaza, the Israel-Lebanon Monitoring Group, the 
Multinational Force and Observers, the Middle East Regional Democracy 
Fund, Middle East Regional Cooperation, and Middle East Multilateral 
Working Groups: Provided, That any funds that were appropriated under 
such headings in prior fiscal years and that were at the time of 
enactment of this Act obligated or allocated for other recipients may 
not during fiscal year 1998 be made available for activities that, if 
funded under this Act, would be required to count against this ceiling: 
Provided further, That funds may be made available notwithstanding the 
requirements of this section if the President determines and certifies 
to the Committees on Appropriations that it is important to the national 
security interest of the United States to do so and any such additional 
funds shall only be provided through the regular notification procedures 
of the Committees on Appropriations.]

                              [Agriculture]

    [Sec. 587. The first proviso of subsection (k) under the heading 
``Assistance for the New Independent States of the Former Soviet Union'' 
in the Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1997, as contained in Public Law 104-208, is amended 
by striking ``not less than'' and inserting in lieu thereof ``up to''.]

                     [Enterprise Fund Restrictions]

    [Sec. 588. Section 201(l) of the Support for East European Democracy 
Act (22 U.S.C. 5421(l)) is amended to read as follows:
    ``(l) Limitation on Payments to Enterprise Fund Personnel.--
        ``(1) No part of the funds of an Enterprise Fund shall inure to 
    the benefit of any board member, officer, or employee of such 
    Enterprise Fund, except as salary or reasonable compensation for 
    services subject to paragraph (2).
        ``(2) An Enterprise Fund shall not pay compensation for services 
    to--
            ``(A) any board member of the Enterprise Fund, except for 
        services as a board member; or
            ``(B) any firm, association, or entity in which a board 
        member of the Enterprise Fund serves as partner, director, 
        officer, or employee.
        ``(3) Nothing in paragraph (2) shall preclude payment for 
    services performed before the date of enactment of this subsection 
    nor for arrangements approved by the grantor and notified in writing 
    to the Committees on Appropriations.''.]

                               [Cambodia]

    [Sec. 589. The Secretary of the Treasury should instruct the United 
States executive directors of the international financial institutions 
to use the voice and vote of the United States to oppose loans to the 
Government of Cambodia, except loans to support basic human needs.]

                  Export Financing Transfer Authorities

    Sec. [590] 547. Not to exceed 5 percent of any appropriation other 
than for administrative expenses made available for fiscal year [1998] 
1999 for programs under title I of this Act may be transferred between 
such appropriations for use for any of the purposes, programs and 
activities for which the funds in such receiving account may be used, 
but no such appropriation, except as otherwise specifically provided, 
shall be increased by more than 25 percent by any such transfer: 
Provided, That the exercise of such authority shall be subject to the 
regular notification procedures of the Committees on Appropriations.

                     [Development Credit Authority]

    [Sec. 591. For the cost, as defined in section 502 of the 
Congressional Budget Act of 1974, of direct loans and loan guarantees in 
support of the development objectives of the Foreign Assistance Act of 
1961, up to $7,500,000, which amount may be derived by transfer from 
funds appropriated by this Act to carry out part I of the Foreign 
Assistance Act of 1961 and funds appropriated by this Act under the 
heading ``Assistance for Eastern Europe and the Baltic States'', to 
remain available until expended: Provided, That up to $500,000 of the 
funds appropriated by this Act under the heading ``Operating Expenses of 
the Agency for International Development'' may be made available for 
administrative expenses to carry out such programs: Provided further, 
That the provisions of section 107A(d) (relating to general provisions 
applicable to development credit authority) of the Foreign Assistance 
Act of 1961, as added by section 306 of H.R. 1486 as reported by the 
House Committee on International Relations on May 9, 1997, shall be 
applicable to direct loans and loan guarantees provided under this 
paragraph: Provided further, That direct loans or loan guarantees under 
this paragraph may not be provided until the Director of the Office of 
Management and Budget has certified to the Committees on Appropriations 
that the Agency for International Development has established a credit 
management system capable of effectively managing the credit programs 
funded under this heading, including that such system: (1) can provide 
accurate and timely provision of loan and loan guarantee data; (2) 
contains information control systems for loan and loan guarantee data; 
(3) is adequately staffed; and (4) contains appropriate review and 
monitoring procedures.]

                 [Authorization for Population Planning]

    [Sec. 592. (a) Not to exceed $385,000,000 of the funds appropriated 
in title II of this Act may be available for population planning 
activities or other population assistance.]
    [(b) Such funds may be apportioned only on a monthly basis, and such 
monthly apportionments may not exceed 8.34 percent of the total 
available for such activities.]
    (Foreign Operations, Export Financing, and Related Programs 
Appropriation Act, 1998.)



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