[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2404 Referred in Senate (RFS)]

103d CONGRESS
  1st Session
                                H. R. 2404


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 17 (legislative day, June 15), 1993

Received; read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 AN ACT


 
 To authorize appropriations for foreign assistance programs, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foreign Assistance Authorization Act 
of 1993''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
             TITLE I--REFORM OF FOREIGN ASSISTANCE PROGRAMS

Sec. 101. Need for foreign assistance reform.
Sec. 102. Evaluation and accountability.
Sec. 103. Economic assistance reform.
        TITLE II--AUTHORIZATIONS FOR FOREIGN ASSISTANCE PROGRAMS

Sec. 201. Authorizations of appropriations for fiscal year 1994.
Sec. 202. Child survival activities and Vitamin A Deficiency Program 
                            and related activities.
Sec. 203. Housing guarantee program.
Sec. 204. Overseas Private Investment Corporation.
Sec. 205. Special debt reduction authority.
Sec. 206. Special Defense Acquisition Fund.
                     TITLE III--REGIONAL PROVISIONS

Sec. 301. Sub-Saharan Africa disaster assistance.
Sec. 302. African Development Foundation.
Sec. 303. Conflict resolution initiative for Africa.
Sec. 304. SADC projects.
Sec. 305. South Africa.
Sec. 306. Sudan.
Sec. 307. Zaire.
Sec. 308. Afghanistan humanitarian assistance.
Sec. 309. Multilateral Assistance Initiative for the Philippines.
Sec. 310. Assistance for Eastern Europe and the Baltics.
Sec. 311. Assistance for the independent states of the former Soviet 
                            Union.
Sec. 312. Assistance for Mongolia.
Sec. 313. Termination of IMET program for Malta.
Sec. 314. Administration of justice and other law enforcement 
                            assistance programs for Latin America and 
                            the Caribbean.
Sec. 315. Waiver of Brooke amendment for Nicaragua.
Sec. 316. Special notification requirements for Guatemala and Peru.
Sec. 317. Assistance for the Middle East.
Sec. 318. Military drawdown for Israel.
Sec. 319. Termination of IMET program for India.
            TITLE IV--PROVISIONS RELATING TO ARMS TRANSFERS

Sec. 401. Competitive pricing for sales of defense articles and 
                            services.
Sec. 402. Increase in aggregate ceiling on transfers of excess defense 
                            articles.
Sec. 403. Eligibility of East European countries to receive nonlethal 
                            excess defense articles.
Sec. 404. Exception to payment of full cost for sales of defense 
                            training services to certain countries and 
                            international organizations.
Sec. 405. Eligibility of major non-NATO allies to receive certain 
                            contract services in connection with sales 
                            of defense articles and services.
Sec. 406. Additions to war reserve stockpiles for allies.
Sec. 407. Arab boycott.
              TITLE V--OTHER FOREIGN ASSISTANCE PROVISIONS

Sec. 501. Interest accruing to nongovernmental organizations.
Sec. 502. Private Sector Revolving Fund.
Sec. 503. Development assistance through nongovernmental organizations.
Sec. 504. Impact of foreign assistance programs on jobs in the United 
                            States.
Sec. 505. Capital projects.
Sec. 506. Microenterprise development.
Sec. 507. Report on AID's implementation of Agenda 21 principles.
Sec. 508. Authority to provide reconstruction assistance under 
                            international disaster assistance.
Sec. 509. Deobligation of certain unexpended economic assistance funds.
Sec. 510. Procurement.
Sec. 511. Violations of terms of assistance.
Sec. 512. Foreign aid reporting requirement.
Sec. 513. Disadvantaged enterprises.
Sec. 514. Prohibition on security assistance to countries that 
                            consistently oppose the United States 
                            position in the United Nations General 
                            Assembly.
                      TITLE VI--BOSNIA-HERCEGOVINA

Sec. 601. Short title.
Sec. 602. Findings.
Sec. 603. United States arms embargo of the Government of Bosnia-
                            Hercegovina.
Sec. 604. United States military assistance for Bosnia-Hercegovina.
Sec. 605. Authority of the Secretary of Defense.
                  TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Deployment of United Nations troops to Kosovo.
Sec. 702. Increase in CSCE observer missions in Kosovo.

             TITLE I--REFORM OF FOREIGN ASSISTANCE PROGRAMS

SEC. 101. NEED FOR FOREIGN ASSISTANCE REFORM.

    (a) Need for Reform.--The Congress--
            (1) remains convinced that United States foreign assistance 
        programs and the Agency for International Development are in 
        need of immediate reform; and
            (2) remains prepared to enact reform legislation in time 
        for the fiscal year 1995 authorization and appropriations 
        cycle.
    (b) Comprehensive Reform Plan.--To facilitate this reform process, 
the President shall submit to the Congress, within 60 days after the 
date of enactment of this Act, a plan for comprehensive reform of 
United States foreign assistance programs and of the agency primarily 
responsible for administering part I of the Foreign Assistance Act of 
1961.

SEC. 102. EVALUATION AND ACCOUNTABILITY.

    Section 125 of the Foreign Assistance Act of 1961 is amended to 
read as follows:

``SEC. 125. EVALUATION AND ACCOUNTABILITY.

    ``(a) Need for Evaluation.--In order to effectively and responsibly 
manage the resources with which it is provided, the agency primarily 
responsible for administering this part must have a capacity to 
evaluate objectively the extent of its progress in achieving 
development results and to derive lessons from its development 
experience.
    ``(b) Actions To Be Taken.--In furtherance of subsection (a), the 
President shall establish a program performance, monitoring, and 
evaluation capacity within the agency primarily responsible for 
administering this part that will do the following:
            ``(1) Enhance, through training and other means, the use of 
        program performance, monitoring, and evaluation as a management 
        tool, by both the agency and its counterparts in countries 
        receiving assistance, in the planning, designing, and 
        implementation of foreign assistance projects and programs.
            ``(2) Develop a program performance information system to 
        afford agency managers at all levels a means for monitoring and 
        assessing achievement of impact and interim performance of the 
        agency's major programs in support of the strategic management 
        of economic assistance.
            ``(3) Prepare and disseminate objective and periodic 
        reports on the progress of the agency in meeting development 
        objectives and on lessons learned from its development 
        programs.
            ``(4) Strengthen the capacity to utilize the findings of 
        program performance, measurement, and evaluation in decisions 
        of the agency about program direction and resource allocation.
            ``(5) Coordinate with the Inspector General of the agency 
        so as to ensure appropriate complementarity of efforts, 
        recognizing that--
                    ``(A) it is the responsibility of the agency to 
                direct a system of performance measurement and 
                independent evaluations of its programs and policies, 
                as well as the operational and management systems that 
                affect the development impact of those programs and 
                policies; and
                    ``(B) it is the responsibility of the Inspector 
                General to conduct regular and comprehensive 
                assessments and audits of financial management and 
                administrative systems, including the adequacy of the 
                systems for monitoring and evaluating agency projects 
                and programs.
    ``(c) Accountability.--The President shall prepare an annual report 
to the Congress as a separate part of the congressional presentation 
materials of the agency primarily responsible for administering this 
part. This report shall include the following:
            ``(1) An assessment of progress toward the achievement of 
        sustainable development objectives, based on the findings of 
        program performance, monitoring, and evaluation studies 
        conducted by the agency and on such other empirical analyses as 
        may be appropriate.
            ``(2) An analysis, on a country-by-country basis, of the 
        impact on economic development in each such country during the 
        preceding 3 to 5 fiscal years of United States economic 
        assistance programs, with a discussion of the United States 
        interests that were served by the assistance. Each country 
        receiving economic assistance under this part or under the 
        Support for East European Democracy (SEED) Act of 1989 shall be 
        included in such an analysis at least once every 5 years. For 
        each country, the analysis shall--
                    ``(A) describe the specific objectives the United 
                States sought to achieve in providing economic 
                assistance, and specify the extent to which those 
                objectives were or were not achieved;
                    ``(B) to the extent possible, be done on a sector-
                by-sector basis and identify trends (both favorable and 
                unfavorable) within each sector and, if relevant, 
                identify any economic policy reforms conducive to 
                sustainable economic growth that were promoted by the 
                assistance and the progress being made by the country 
                in adopting economic policies that foster and enhance 
                the freedom and opportunity of individuals to 
                participate in economic growth in the country;
                    ``(C) as part of the context of United States 
                economic assistance, describe the amount and nature of 
                economic assistance provided by other major donors 
                during the preceding 3 to 5 fiscal years, set forth by 
                the development sector to the extent possible; and
                    ``(D) contain statistical and other information 
                necessary to evaluate the impact and effectiveness of 
                United States economic assistance on development in the 
                country.''.

SEC. 103. ECONOMIC ASSISTANCE REFORM.

    (a) Basic Objectives.--Section 102 of the Foreign Assistance Act of 
1961 is amended to read as follows:

``SEC. 102. BASIC OBJECTIVES OF ECONOMIC ASSISTANCE PROGRAMS AND UNITED 
              STATES DEVELOPMENT COOPERATION POLICY.

    ``(a) Four Basic Objectives.--The primary purpose of United States 
economic assistance is the promotion of broad based, sustainable, 
participatory development, with particular focus on the poor. In 
pursuit of that purpose, economic assistance programs to the extent 
specified in this Act, and United States economic cooperation policy 
generally, shall have the following four basic objectives, which are 
interrelated and mutually reinforcing:
            ``(1) Sustainable economic growth.--Promotion of broad 
        based economic growth.
            ``(2) Sustainable resource management.--Improvement of 
        resource management designed to bring about environmentally and 
        economically sustainable patterns of development.
            ``(3) Poverty alleviation.--Alleviation of the worst 
        manifestations of poverty through the development of human 
        resource capacity.
            ``(4) Democracy.--Promotion of democracy, respect for human 
        rights, and social and economic pluralism.
    ``(b) Sustainable Economic Growth.--
            ``(1) Rationale.--Broad based, sustainable economic growth 
        is in the interest of the United States because it permits 
        countries to progress toward economic self-reliance, to improve 
        the living standards of their citizens, and to increase 
        international markets for trade and investment. Market-oriented 
        economic growth establishes the basis for sustainable 
        development and reinforces democratic ideals and practices. 
        Successful long-term development cannot occur without broad 
        based, sustainable economic growth that enables the poor to 
        increase their incomes and access to productive resources and 
        services so that they can satisfy their basic needs and lead 
        lives of decency, dignity, and hope.
            ``(2) Elaboration on objective.--(A) Implementation of the 
        objective of promoting broad based economic growth should 
        recognize that economic, social, political, and environmental 
        conditions vary among countries. While taking account of such 
        differences, the economic assistance programs carried out in 
        furtherance of the four basic objectives set forth in this 
        section shall emphasize the following principles:
                    ``(i) Security of economic rights for all citizens 
                without regard to sex, race, religion, language, or 
                social status, including the right to own property, the 
                right to fair return from one's labor, and the right to 
                engage in productive use of available assets.
                    ``(ii) Economic policies based on free market 
                principles as a means for establishing prices and for 
                allocating goods and services.
                    ``(iii) Economic reforms that benefit or are 
                sensitive to and minimize adverse impact on the poor.
                    ``(iv) Market base reforms--deregulation, 
                privatization, labor market reform, reduction in 
                barriers to the free flow of trade and investment--
                which increase the opportunity for all, especially the 
                poor, to participate in economic activity.
                    ``(v) Government policies protecting economic 
                rights, fair and open markets, and the fulfillment of 
                basic human needs.
                    ``(vi) Adherence by governments to international 
                economic agreements, particularly those relating to 
                free and fair trade practices and to respect for worker 
                rights.
            ``(B) A primary test of the effectiveness of economic 
        assistance programs designed to promote broad based economic 
        growth is the extent to which the poor and disenfranchised can 
        participate in and benefit from these programs and are thereby 
        brought into the development process.
    ``(c) Sustainable Resource Management.--
            ``(1) Rationale.--The economic and social well-being and 
        the security of the United States and other countries are 
        affected by how the world's environment and physical resource 
        base are managed. Consumption patterns, systems of industrial 
        and agricultural production, demographic trends, and the manner 
        of use of natural resources all impact on the opportunities for 
        long-term development and growth and survival for all 
        countries. Both developed and developing countries share 
        responsibility for the rational and sustainable management of 
        natural resources. Responsible management of physical resources 
        is necessary to insure the availability of resources for future 
        generations and to assure that the burdens of improved resource 
        management do not fall disproportionately on the poor.
            ``(2) Elaboration of objective.--(A) Sustainable 
        development is development that meets the needs of the present 
        without compromising the ability of future generations to meet 
        their own needs. Economic assistance programs authorized by 
        this title should assist countries to adopt policies and 
        programs that promote ecologically sound patterns of growth. 
        Improved resource management tailored to the conditions and 
        capabilities of the particular developing countries should be 
        an integral part of all planning, programming, and reporting 
        activities with respect to economic assistance.
            ``(B) Sustainable resource management should be promoted 
        through research and through the establishment and 
        implementation of public policies and programs that provide 
        incentives for better long-term management of resources and 
        private and public investment toward resource-conserving 
        technologies of production in energy, agricultural, and 
        industrial production. To achieve this objective will entail, 
        among other things--
                    ``(i) more efficient and resource-conserving 
                systems of sustainable agricultural production, with 
                special emphasis on rain-fed agriculture, maintenance 
                of soil structure and fertility, and minimization of 
                soil erosion and soil and water contamination;
                    ``(ii) adoption of appropriate use of fertilizer 
                and pesticides;
                    ``(iii) greater attention to forestry management 
                for sustainable yields, agroforestry, reforestation, 
                and watershed conservation, including better resource 
                monitoring and assessment systems;
                    ``(iv) improved water use management, including 
                watershed protection, sustainable and efficient 
                irrigation projects, and efforts to reduce costs and 
                improve delivery of potable water and sanitation 
                systems for both urban and rural areas;
                    ``(v) more systematic collection, preservation, and 
                sharing of original and evolved plant and animal 
                genetic material, including preservation of ecosystems 
                and natural habitats;
                    ``(vi) attention to more efficient management of 
                existing energy systems, to the promotion of increased 
                use of least-cost energy resource planning procedures, 
                and to the development of economically viable and more 
                efficient systems of energy production and consumption 
                that seek to maximize resource conservation;
                    ``(vii) attention to resource conserving systems of 
                urban development and industrialization that make 
                efficient use of energy and natural resources, minimize 
                the adverse effects of air and water pollution, 
                facilitate safe waste disposal, including toxic wastes, 
                and provide for improved environmental health and 
                safety of the urban and surrounding rural populations;
                    ``(viii) efforts to analyze and to reduce man-made 
                contributions to changes in the global climate, 
                including factors that may be contributing to global 
                warming in the Earth's atmosphere; and
                    ``(ix) greater attention to the relationships among 
                demographic pressures, poverty, and environmental 
                degradation.
            ``(C) Growth that is not environmentally sustainable cannot 
        be economically sustainable in the long run. Improved resource 
        management is a critical element of a balanced pattern of 
        development.
    ``(d) Poverty Alleviation.--
            ``(1) Rationale.--It is in the interest of the United 
        States to assist developing countries to achieve patterns of 
        growth and development that will measurably and sustainably 
        alleviate the worst manifestations of poverty in rural and 
        urban areas and allow all people, especially those with low 
        incomes, to lead economically and socially productive lives. As 
        a people endowed with a spirit of humanitarian generosity, 
        United States citizens have long demonstrated a moral 
        imperative to help those in need. Further, peace and stability 
        in the world cannot be achieved without economic development 
        that also alleviates the worst manifestations of poverty.
            ``(2) Elaboration of objective.--(A) Broad based economic 
        growth is necessary for the alleviation of the worst 
        manifestations of poverty. Conversely, neither growth nor the 
        alleviation of poverty can be sustained unless all people, 
        especially the poor, have the basic assets and capabilities 
        that foster the exercise of choice and participation in the 
        economic, social, and political life of the country. Women, 
        female children, and children of poor people have been 
        especially disadvantaged in their access to these assets. 
        Governments, together with nongovernmental organizations and 
        international and multilateral organizations, should give 
        special attention to alleviating the worst manifestations of 
        poverty among these groups. Long-term poverty alleviation 
        depends on patterns of broad based economic growth and the 
        productivity generated by investments in the expansion of human 
        well-being, capacity, and choice.
            ``(B) To achieve the objective of alleviating the worst 
        manifestations of poverty will entail, among other things--
                    ``(i) the expansion of education to all segments of 
                the society, with particular attention to universal 
                access to basic education, to sustainable improvement 
                in the quality and diversity of educational 
                opportunity, and to female education at all age levels;
                    ``(ii) improvement in coverage, quality, and 
                sustainability of health services, with special 
                emphasis on universal access to primary health care, 
                epidemiological detection and prevention programs, and 
                sustainable systems of health care for mothers and 
                children;
                    ``(iii) a consistent program of support for 
                systematic expansion of voluntary family planning 
                services, with special emphasis on the role of the 
                private voluntary and commercial sectors as providers 
                of such services and on the development of more 
                effective, acceptable family planning technologies 
                appropriate to the conditions of developing countries;
                    ``(iv) support for activities that enhance secure 
                access of all to adequate food and nutrition derived 
                from sustainable agricultural production, including the 
                effectiveness and development contribution of food 
                assistance made available under the Agricultural Trade 
                Development and Assistance Act of 1954 and other food 
                assistance programs; and
                    ``(v) support for activities that enhance universal 
                access to safe drinking water, basic sanitation, and 
                basic shelter necessary for health.
    ``(e) Democracy.--
            ``(1) Rationale.--The promotion of democracy throughout the 
        world is in the basic interest of the United States. Democratic 
        development, political pluralism, and respect for 
        internationally recognized human rights are intrinsically 
        linked to economic and social progress. Democracy can only be 
        sustained in a society in which the legitimacy of the 
        government rests firmly on the expressed consent of the 
        governed; the rights of all citizens, including minorities, are 
        respected and protected; and there is effective civilian 
        control over the military and security forces. It is in the 
        interest of the United States and in keeping with our 
        democratic traditions to support democratic aspirations and 
        values, foster the spread of democratic institutions, and 
        encourage universal respect for civil and political liberties.
            ``(2) Elaboration on objective.--(A) Furtherance of the 
        basic objective of democracy requires that the United States 
        promote--
                    ``(i) the ability of all citizens of a country to 
                organize and associate freely and independently of the 
                government;
                    ``(ii) the ability of all citizens to freely choose 
                their government, to hold that government accountable, 
                and to participate in political life;
                    ``(iii) increased respect for internationally 
                recognized human rights and the rule of law;
                    ``(iv) respect for the diversity among the citizens 
                of a country; and
                    ``(v) acceptance of and respect for civilian 
                authority by all elements of society.
            ``(B) An essential ingredient of development is the growth 
        of indigenous nongovernmental organizations that are committed 
        to democratic values and active in the promotion of democracy. 
        United States efforts to foster democratic pluralism and build 
        democratic institutions are most likely to create enduring 
        bonds of democratic cooperation when United States 
        nongovernmental organizations are involved in strengthening the 
        capacity of nongovernmental organizations in other countries.
            ``(C) Democracy requires honest and open participatory 
        government. United States assistance should help governments to 
        establish processes of accountability and transparency to 
        eliminate corruption and abuses of power and assist 
        nongovernmental organizations to develop the capability to 
        monitor the government's performance.
            ``(D) With regard to economic assistance under this Act or 
        the Support for East European Democracy (SEED) Act of 1989 for 
        countries that are in transition from communism to democracy, 
        it shall be the policy of the United States, to the extent 
        feasible, to provide assistance directly to democratically 
        elected governments of states whose incorporation into the 
        Union of Soviet Socialist Republics has never been recognized 
        by the United States: Provided, That economic assistance to 
        Yugoslavia otherwise authorized by law shall not be prohibited 
        as a consequence of this provision. As used in this 
        subparagraph, the term `democratically elected' means elected 
        through open, free, and fair elections. Nothing in this 
        paragraph shall be construed to preclude assistance to agencies 
        of such federal governments that promote democratic reforms, 
        human rights, the rule of law, and/or market oriented reforms, 
        provided that funds are not provided directly to any such 
        agency.
    ``(f) Effective Uses of Assistance.--
            ``(1) Beneficiary countries.--Assistance furnished under 
        this title should be concentrated in countries that will make 
        the most effective use of that assistance in promoting the four 
        basic objectives set forth in subsection (a).
            ``(2) Assistance within countries.--Activities should be 
        undertaken in regions of recipient countries that offer 
        potential for successful development and should not be 
        undertaken if the relevant sector or national economic policies 
        of the country are clearly unfavorable to the sustainability or 
        broadest possible impact of the assisted program or project.
            ``(3) Types of activities.--Assistance should focus on 
        those types of activities that the United States can provide 
        most effectively.''.
    (b) Repeal of Development Assistance Authorities.--Effective 
October 1, 1995, sections 103 through 107 of the Foreign Assistance Act 
of 1961 are repealed.

        TITLE II--AUTHORIZATIONS FOR FOREIGN ASSISTANCE PROGRAMS

SEC. 1201. AUTHORIZATIONS OF APPROPRIATIONS FOR FISCAL YEAR 1994.

    (a) Economic Assistance.--There are authorized to be appropriated 
for fiscal year 1994 the following amounts for the following purposes:
            (1) Development assistance fund.--$850,000,000 to carry out 
        sections 103 through 106 of the Foreign Assistance Act of 1961.
            (2) Population, development assistance.--$395,000,000 to 
        carry out section 104(b) of the Foreign Assistance Act of 1961.
            (3) Development fund for africa.--$900,000,000 to carry out 
        chapter 10 of part I of the Foreign Assistance Act of 1961.
            (4) International disaster assistance.--$148,965,000 to 
        carry out section 491 of the Foreign Assistance Act of 1961.
            (5) American schools and hospitals.--$35,000,000 to carry 
        out section 214 of the Foreign Assistance Act of 1961.
            (6) Multilateral assistance initiative for the 
        philippines.--$30,000,000 for assistance for the Philippines 
        under chapter 4 of part I of the Foreign Assistance Act of 
        1961.
            (7) Assistance for eastern europe and the baltic states.--
        $400,000,000 for economic assistance for Eastern Europe and the 
        Baltic states under the Foreign Assistance Act of 1961 and the 
        Support for East European Democracy (SEED) Act of 1989.
            (8) Assistance for the independent states of the former 
        soviet union.--$903,820,000 to carry out chapter 11 of part I 
        of the Foreign Assistance Act of 1961 and to carry out 
        exchanges and training and similar programs under section 807 
        of the Freedom for Russia and Emerging Eurasian Democracies and 
        Open Markets Support Act of 1992.
            (9) Inter-american foundation.--$30,960,000 to carry out 
        section 401 of the Foreign Assistance Act of 1969.
            (10) African development foundation.--$18,000,000 to carry 
        out the African Development Foundation Act.
            (11) International fund for ireland.--$19,600,000 to carry 
        out part I of the Foreign Assistance Act of 1961, which shall 
        be available for the United States contribution to the 
        International Fund for Ireland in accordance with the Anglo-
        Irish Agreement Support Act of 1986. Amounts appropriated under 
        this paragraph are authorized to remain available until 
        expended.
    (b) Security Assistance.--There are authorized to be appropriated 
for fiscal year 1994 the following amounts for the following purposes:
            (1) Foreign military financing program grants.--
        $3,200,000,000 for grants under section 23 of the Arms Export 
        Control Act. Funds made available under this paragraph shall be 
        nonrepayable notwithstanding any requirement of that section.
            (2) Foreign military financing program loans.--$57,000,000 
        for the cost (as defined in section 502(5) of the Federal 
        Credit Reform Act of 1990) of loans under section 23 of the 
        Arms Export Control Act.
            (3) Economic support fund.--$2,424,400,000 to carry out 
        chapter 4 of part II of the Foreign Assistance Act of 1961.
            (4) International military education and training.--
        $40,000,000 to carry out chapter 5 of part II of the Foreign 
        Assistance Act of 1961.
            (5) Anti-terrorism assistance.--$15,555,000 to carry out 
        chapter 8 of part II of the Foreign Assistance Act of 1961.
            (6) Nonproliferation and disarmament fund.--$25,000,000 to 
        carry out section 504 of the Freedom for Russia and Emerging 
        Eurasian Democracies and Open Markets Support Act of 1992.
    (c) Peace Corps.--There are authorized to be appropriated 
$219,745,000 for fiscal year 1994 to carry out the Peace Corps Act.
    (d) Reduction in Previously Enacted Authorization For International 
Narcotics Control Assistance.--Section 482(a)(1) of the Foreign 
Assistance Act of 1961 is amended by striking ``$171,500,000'' and 
inserting ``$135,000,000''.
    (e) Rule of Construction.--In order to ensure that all otherwise 
applicable authorities, restrictions, and other provisions of law apply 
with respect to the amounts that are authorized to be appropriated by 
this section for fiscal year 1994, those amounts shall be deemed to be 
authorized to be appropriated by the provision of the Foreign 
Assistance Act of 1961 or other Act that provided the corresponding 
authorization of appropriations for prior fiscal years.
    (f) Reduction in Authorizations.--The amount appropriated for 
fiscal year 1994 pursuant to the authorizations of appropriation in 
this title may not exceed the amount which is $360,000,000 less than 
the sum of the specified authorization amounts for that fiscal year.

SEC. 202. CHILD SURVIVAL ACTIVITIES AND VITAMIN A DEFICIENCY PROGRAM 
              AND RELATED ACTIVITIES.

    (a) Child Survival Activities.--The Congress expects that not less 
than $275,000,000 of the funds made available for fiscal year 1994 to 
carry out part I of the Foreign Assistance Act of 1961 (relating to 
development and other economic assistance) will be used for child 
survival activities.
    (b) Vitamin A Deficiency Program and Related Activities.--The 
Congress expects that not less than $25,000,000 of the funds made 
available for fiscal year 1994 to carry out sections 103 through 106 of 
the Foreign Assistance Act of 1961 (relating to development assistance) 
will be made available for the Vitamin A Deficiency Program and 
activities relating to iodine deficiency and other micro-nutrients.

SEC. 203. HOUSING GUARANTEE PROGRAM.

    (a) Authorizations.--
            (1) Cost of guaranteed loans.--There are authorized to be 
        appropriated $16,407,000 for fiscal year 1994 for the cost (as 
        defined in section 502(5) of the Federal Credit Reform Act of 
        1990) of guaranteed loans under sections 221 and 222 of the 
        Foreign Assistance Act of 1961.
            (2) Program ceiling.--Section 222(a) of that Act is amended 
        by striking ``$2,558,000,000'' in the second sentence and 
        inserting ``$3,000,000,000''.
            (3) Program expiration date.--Section 222(a) of that Act is 
        amended by striking ``1992'' in the third sentence and 
        inserting ``1995''.
            (4) Administrative expenses.--(A) There are authorized to 
        be appropriated $8,407,000 for fiscal year 1994 for 
        administrative expenses to carry out guaranteed loan programs 
        under sections 221 and 222 of that Act. Amounts appropriated 
        under this paragraph are authorized to remain available until 
        expended.
            (B) Amounts appropriated under this paragraph may be 
        transferred to and merged with the appropriations for 
        ``Operating Expenses of the Agency for International 
        Development''.
    (b) Preferential Treatment to Projects in Poorer Countries.--
Section 222 of the Foreign Assistance Act of 1961 is amended--
            (1) by redesignating subsection (k) as subsection (e); and
            (2) by inserting after subsection (c) the following:
    ``(d) Preferential Consideration to Projects in Poorer Countries.--
In issuing guarantees under this section and in carrying out related 
activities, the President shall give preferential consideration to 
projects in countries with an annual per capita income of $1,196 or 
less in 1991 United States dollars, and shall restrict guarantees and 
related activities for projects in countries with an annual per capita 
income of $5,190 or more in 1991 United States dollars.''.
    (c) Fee Increase.--
            (1) Study.--The administrator of the agency primarily 
        responsible for administering part I of the Foreign Assistance 
        Act of 1961--
                    (A) shall conduct a study to determine the 
                feasibility of increasing the fees charged pursuant to 
                section 223(a) of that Act for guarantees issued under 
                sections 221 and 222 of that Act in an effort to reduce 
                the costs (as defined in section 502(5) of the Federal 
                Credit Reform Act of 1990) of the guarantee program; 
                and
                    (B) shall submit the results of this study to the 
                Committee on Foreign Affairs of the House of 
                Representatives and the Committee on Foreign Relations 
                of the Senate not later than 6 months after the date of 
                enactment of this Act.
            (2) Policy.--The administrator should increase the fees 
        described in paragraph (1)(A) to the extent determined to be 
        feasible in the study conducted pursuant to this subsection.

SEC. 204. OVERSEAS PRIVATE INVESTMENT CORPORATION.

    (a) Program Authorization of Fiscal Year 1995.--Section 235(a) of 
the Foreign Assistance Act of 1961 is amended--
            (1) in paragraph (1) by striking ``$9,000,000,000'' and 
        inserting ``$10,000,000,000'';
            (2) in paragraph (2)(A) by striking ``$2,500,000,000'' and 
        inserting ``$3,500,000,000''; and
            (3) in paragraph (2)(B)--
                    (A) by striking ``and'' at the end of clause (i);
                    (B) by striking the period at the end of clause 
                (ii) and inserting ``; and''; and
                    (C) by inserting after clause (ii) the following:
                    ``(iii) to transfer such sums as are necessary from 
                its noncredit account revolving fund to pay for the 
                subsidy cost of a program level for the loan and loan 
                guarantee program under subsections (b) and (c) of 
                section 234 of $1,000,000,000 for fiscal year 1995.''.
    (b) Termination Date.--Section 235(a)(3) of that Act is amended by 
striking ``1994'' and inserting ``1995''.
    (c) Administrative Expenses.--Section 235(g) of that Act is 
amended--
            (1) in paragraph (1) by striking ``and'';
            (2) in paragraph (2) by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(3) $15,000,000 for fiscal year 1995.''.

SEC. 205. SPECIAL DEBT REDUCTION AUTHORITY.

    (a) Authority To Reduce Debt.--Notwithstanding any other provision 
of law (other than the Federal Credit Reform Act of 1990), the 
President may reduce amounts of principal and interest 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; or
            (2) credits extended or guarantees issued under the Arms 
        Export Control Act.
    (b) Implementation of Paris Club Debt Reduction.--The authority 
provided by this section may be exercised only to implement the 
multilateral official debt relief ad referendum agreements that are 
commonly referred to as ``Paris Club Agreed Minutes''.
    (c) Appropriations Requirement.--The authority provided by this 
section may be exercised only in such amounts or to such extent as is 
provided in advance by appropriations Acts in accordance with the 
requirements of the Federal Credit Reform Act of 1990.
    (d) Eligible Countries.--For purposes of this section, the term 
``eligible country'' means a country that the President determines--
            (1) has a heavy debt burden; and
            (2) is eligible to borrow from the International 
        Development Association but not from the International Bank for 
        Reconstruction and Development (commonly referred to as an 
        ``IDA-only'' country).

SEC. 206. SPECIAL DEFENSE ACQUISITION FUND.

    (a) Decapitalization.--Notwithstanding section 51(b) of the Arms 
Export Control Act, collections described in that section that are in 
excess of obligational authority provided in foreign operations, export 
financing, and related appropriations Acts for fiscal years prior to 
fiscal year 1994 shall be deposited in the Treasury as miscellaneous 
receipts.
    (b) Avoidance of Duplicative Provisions.--Subsection (a) shall not 
apply if the Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1994, contains an identical requirement.

                     TITLE III--REGIONAL PROVISIONS

SEC. 301. SUB-SAHARAN AFRICA DISASTER ASSISTANCE.

    The Congress expects that not less than $100,000,000 of the funds 
made available for fiscal year 1994 to carry out section 491 of the 
Foreign Assistance Act of 1961 (relating to international disaster 
assistance) will be used for disaster relief, rehabilitation, and 
reconstruction assistance for sub-Saharan Africa.

SEC. 302. AFRICAN DEVELOPMENT FOUNDATION.

    (a) Ceiling on Assistance for a Project.--Section 505(a)(2) of the 
African Development Foundation Act is amended by adding at the end the 
following: ``In exceptional circumstances, the board of directors of 
the Foundation may waive such dollar limitation with respect to a 
project. Any such waivers shall be reported to the Congress 
annually.''.
    (b) Authority To Employ Aliens.--Section 506(a) of that Act is 
amended--
            (1) by redesignating paragraphs (8) through (12) as 
        paragraphs (9) through (13), respectively; and
            (2) by inserting after paragraph (7) the following:
            ``(8) when determined by the president of the Foundation to 
        be necessary (but subject to the limitation established by 
        paragraph (7) on the number of Foundation employees), may 
        employ persons who are not citizens of the United States 
        notwithstanding any provision of law that would otherwise 
        prohibit the use of appropriated funds to pay the compensation 
        of officers or employees of the Government who are not citizens 
        of the United States;''.
    (c) Travel Expenses.--
            (1) Members of board.--Section 507(b) of that Act is 
        amended by striking ``actual and necessary expenses not 
        exceeding $100 per day, and for transportation expenses,'' and 
        inserting ``travel expenses, including per diem in lieu of 
        subsistence, in accordance with section 5703 of title 5, United 
        States Code,''.
            (2) Conforming amendment.--Section 507(e)(3) of that Act is 
        amended by striking ``and other expenses'' and inserting 
        ``expenses, including per diem in lieu of subsistence,''.
    (d) Interest Accruing to Grantees.--
            (1) Authority to retain.--The African Development 
        Foundation Act is amended by adding at the end the following:

``SEC. 511. INTEREST ACCRUING TO GRANTEES.

    ``When, with the permission of the Foundation, funds made available 
to a grantee under this title are invested pending disbursement, the 
resulting interest is not required to be deposited in the United States 
Treasury if the grantee uses the resulting interest for the purpose for 
which the grant was made.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        applies to both interest earned before and interest earned 
        after the date of enactment of this Act.

SEC. 303. CONFLICT RESOLUTION INITIATIVE FOR AFRICA.

    (a) Improving OAU's Conflict Resolution Capabilities.--
            (1) Description of assistance.--The President is authorized 
        to provide assistance to help establish a permanent conflict 
        resolution capability within the Organization of African Unity 
        (referred to in this subsection as the ``OAU''), as follows:
                    (A) Funds may be provided to the OAU for use in 
                supporting its conflict resolution capability.
                    (B) Funds may be used for expenses of sending 
                individuals with expertise in conflict resolution (who 
                may include United States Government employees) from 
                the United States to work with the OAU for a period of 
                up to 2 years.
                    (C) Funds may be provided to the OAU to support the 
                establishment and maintenance of an African Conflict 
                Resolution Research Center that is linked to the OAU 
                secretariat.
            (2) Funding.--Of the funds that are allocated for sub-
        Saharan Africa, not less than $1,500,000 for each of the fiscal 
        years 1994 through 1998 should be used to carry out paragraph 
        (1), in addition to funds otherwise available for such purpose.
            (3) Requirement for approval of certain reforms.--
        Assistance may be provided pursuant to this subsection only if 
        the President determines that the OAU has approved and is in 
        the process of implementing the reforms proposed by the 
        Secretary General of the OAU in February 1993 in the Interim 
        Report of the Secretary General on the Mechanisms for Conflict 
        Prevention, Resolution and Management.
    (b) Improving Conflict Resolution Capabilities of Multilateral 
Subregional Organizations.--
            (1) Types of assistance to be provided.--The President is 
        authorized to provide assistance to help establish permanent 
        conflict resolution capabilities within subregional 
        organizations established by countries in sub-Saharan Africa, 
        as follows:
                    (A) Funds may be provided to such an organization 
                for use in supporting its conflict resolution 
                capability.
                    (B) Funds may be used for the expenses of sending 
                individuals with expertise in conflict resolution (who 
                may include United States Government employees) from 
                the United States to work with such an organization for 
                a period of up to 2 years.
            (2) Funding.--Of the funds that are allocated for sub-
        Saharan Africa under chapter 4 of part II of the Foreign 
        Assistance Act of 1961 (relating to the economic support fund), 
        up to $1,500,000 for each of the fiscal years 1994 through 1998 
        may be used to carry out paragraph (1).
    (c) African Demobilization and Retraining Program.--
            (1) In general.--In order to facilitate reductions in the 
        size of the armed forces of countries of sub-Saharan Africa, 
        the President is authorized to provide assistance for--
                    (A) encampment and related activities associated 
                with demobilization of such forces, and
                    (B) the retraining for civilian occupations of 
                military personnel who have been demobilized.
            (2) Funding.--(A) Of the funds that are allocated for sub-
        Saharan Africa under chapter 4 of part II of the Foreign 
        Assistance Act of 1961 (relating to the economic support fund) 
        and under the ``Foreign Military Financing Program'' account 
        under section 23 of the Arms Export Control Act, $10,000,000 
        for fiscal year 1994 should be used for the assistance 
        described in paragraph (1)(A).
            (B) A portion of the funds made available for fiscal year 
        1994 to carry out chapter 10 of part I of the Foreign 
        Assistance Act of 1961 (relating to the Development Fund for 
        Africa) may be used for the assistance described in paragraph 
        (1)(B).
    (d) IMET Conflict Resolution Program.--Chapter 5 of part II of the 
Foreign Assistance Act of 1961 is amended by adding at the end the 
following:

``SEC. 546. CONFLICT RESOLUTION PROGRAM FOR AFRICA.

    ``In addition to the other education and training activities 
carried out under this chapter, the President is authorized to 
establish a program to provide education and training in conflict 
resolution for civilian and military personnel of countries in sub-
Saharan Africa.''.

SEC. 304. SADC PROJECTS.

    (a) Waiver of Brooke Amendment.--Section 620(q) of the Foreign 
Assistance Act of 1961 and the corresponding section of the Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1994, shall not apply with respect to assistance provided for fiscal 
year 1994 under section 496(o) of the Foreign Assistance Act of 1961 
(relating to support for SADC projects).
    (b) Technical Amendment.--Section 496(o) of the Foreign Assistance 
Act of 1961 is amended--
            (1) in the subsection heading by striking ``SADCC'' and 
        inserting ``SADC''; and
            (2) in paragraph (1) by striking ``Coordination Conference 
        (SADCC)'' and inserting ``Community (SADC)''.

SEC. 305. SOUTH AFRICA.

    (a) Removal of Ceilings on Grants for Human Rights Projects.--
Section 116 of Foreign Assistance Act of 1961 is amended--
            (1) by repealing subparagraphs (C) and (D) of subsection 
        (e)(2); and
            (2) in subsection (f)--
                    (A) by repealing paragraph (2), and
                    (B) by striking ``(f)(1)'' and inserting ``(f)'' 
                and by redesignating subparagraphs (A) through (E) as 
                paragraphs (1) through (5), respectively.
    (b) Exception to Limitation on Assistance Recipients.--
            (1) Assistance under section 116.--Section 116(e)(2)(B) of 
        that Act is amended--
                    (A) in the fourth sentence, by striking ``or to 
                organizations financed or controlled by the Government 
                of South Africa''; and
                    (B) by adding at the end the following: ``A 
                nongovernmental organization financed or controlled by 
                the Government of South Africa that meets the criteria 
                specified in this subparagraph may receive assistance 
                under this paragraph only if the President determines 
                that (i) the activities of that organization further 
                the purposes of the establishment of a non-racial 
                democratic state in South Africa, (ii) the provision of 
                assistance to that organization will further the 
                objective of this paragraph to assist disadvantaged 
                South Africans, and (iii) the Government of South 
                Africa is continuing to make progress toward 
                dismantling apartheid and establishing a nonracial 
                democracy. Before making such determinations, the 
                President shall consult with the appropriate 
                congressional committees and with South African 
                organizations that are representative of the majority 
                population of South Africa and should seek a commitment 
                from the Government of South Africa that it will 
                provide additional resources to meet the needs of 
                disadvantaged South Africans. As used in the preceding 
                sentence, the term `appropriate congressional 
                committees' means the Committee on Foreign Affairs and 
                the Committee on Appropriations of the House of 
                Representatives and the Committee on Foreign Relations 
                and the Committee on Appropriations of the Senate.''.
            (2) Assistance under section 117.--Section 117 of that Act 
        (as added by section 201(b) of the Comprehensive Anti-Apartheid 
        Act of 1986) is amended by adding at the end the following: 
        ``In addition, a nongovernmental organization that meets the 
        criteria specified in the first 2 sentences of this section but 
        receives funds from the Government of South Africa may receive 
        assistance under this section if the President determines that 
        such organization meets the requirements of the 5th sentence of 
        section 116(e)(2)(B), and such determination is made in 
        accordance with the 6th sentence of such section.''.

SEC. 306. SUDAN.

    (a) Statement of the Congress.--The Congress--
            (1) strongly condemns the Government of Sudan for its 
        severe human rights abuses and calls upon that government to 
        improve human rights conditions throughout the country;
            (2) deplores the internecine fighting among the factions of 
        the Sudanese People's Liberation Army;
            (3) urges the Government of Sudan and the factions of the 
        Sudanese People's Liberation Army to provide full access for 
        and to cooperate with relief organizations;
            (4) encourages the Government of Sudan to lift the press 
        ban which was imposed after it took power in June 1989; and
            (5) calls on the Government of Sudan to establish a 
        democratic system.
    (b) Restrictions on Assistance.--Except as provided in subsection 
(c), assistance may not be provided for Sudan for fiscal year 1994--
            (1) under chapter 1 or chapter 10 of part I of the Foreign 
        Assistance Act of 1961 (relating to development assistance and 
        the Development Fund for Africa),
            (2) under chapter 4 of part II of that Act (relating to the 
        economic support fund),
            (3) under chapter 5 of part II of that Act (relating to 
        international military education and training), or
            (4) from the ``Foreign Military Financing Program'' account 
        under section 23 of the Arms Export Control Act.
    (c) Waiver of Restrictions.--
            (1) Authorization.--The President may waive the 
        prohibitions in subsection (b) if the President determines, and 
        reports in accordance with paragraph (2), that there is 
        substantial progress in southern Sudan toward respecting human 
        rights, resolving the conflict in that region, establishing a 
        democratically elected government, and establishing a reformed 
        and independent judiciary system.
            (2) Congressional review of determination.--A determination 
        under paragraph (1) shall not become effective until 15 days 
        after it is reported to the congressional committees specified 
        in section 634A(a) of the Foreign Assistance Act of 1961 in 
        accordance with the procedures applicable to reprogramming 
        notifications under that section.

SEC. 307. ZAIRE.

    (a) Statement of the Congress.--The Congress--
            (1) strongly condemns the disruptive measures taken by 
        President Mobutu in recent months, and holds President Mobutu 
        responsible for the current political crisis in Zaire;
            (2) stresses the importance of a successful transition to 
        democracy in Zaire;
            (3) urges the President of the United States to pressure 
        President Mobutu to leave Zaire so that the legitimate 
        transitional government can proceed with the process of 
        democratization as mandated by the Sovereign National 
        Conference;
            (4) urges the President of the United States to impose, in 
        conjunction with our allies, a variety of sanctions on 
        President Mobutu, including--
                    (A) freezing the bank accounts of President Mobutu, 
                his family and associates;
                    (B) denying visas to President Mobutu, his family 
                and associates; and
                    (C) expelling Mobutu's ambassador;
            (5) congratulates the people of Zaire for their courageous 
        support of democracy in the face of powerful opposition; and
            (6) expresses its readiness to explore further ways of 
        providing support for democracy and political pluralism in 
        Zaire.
    (b) Restrictions on Assistance.--
            (1) Security assistance.--Except as provided in subsection 
        (c), assistance may not be provided for Zaire for fiscal year 
        1994--
                    (A) under chapter 4 of part II of the Foreign 
                Assistance Act of 1961 (relating to the economic 
                support fund),
                    (B) under chapter 5 of part II of that Act 
                (relating to international military education and 
                training), or
                    (C) from the ``Foreign Military Financing Program'' 
                account under section 23 of the Arms Export Control 
                Act.
            (2) Development assistance.--Except as provided in 
        subsection (c), assistance under chapter 1 or chapter 10 of 
        part I of the Foreign Assistance Act of 1961 (relating to 
        development assistance and the Development Fund for Africa) for 
        fiscal year 1994 shall not be transferred to the Government of 
        Zaire. This paragraph does not prohibit nongovernmental 
        organizations from working with appropriate ministries or 
        departments of the Government of Zaire.
    (c) Waiver When the Democratic Process Is Restored.--
            (1) Authorization.--The President may waive the 
        prohibitions in subsection (b) if the President determines, and 
        reports in accordance with paragraph (2), that democracy has 
        been restored in Zaire, that President Mobutu is no longer a 
        threat to the elected government, and that the elected 
        government is committed to bringing about freedom of expression 
        for the people of Zaire, a reformed and independent judiciary, 
        and reform of, and applications of the rule of law to, Zaire 
        security forces.
            (2) Congressional review of determination.--A determination 
        under paragraph (1) shall not become effective until 15 days 
        after it is reported to the congressional committees specified 
        in section 634A(a) of the Foreign Assistance Act of 1961 in 
        accordance with the procedures applicable to reprogramming 
        notifications under that section.

SEC. 308. AFGHANISTAN HUMANITARIAN ASSISTANCE.

    (a) Authorization.--Funds described in subsection (c) may be made 
available for the provision of food, medicine, or other humanitarian 
assistance to the Afghan people notwithstanding any other provision of 
law.
    (b) Assistance for Afghan Women and Girls.--In carrying out this 
section, the administrator of the agency primarily responsible for 
carrying out part I of the Foreign Assistance Act of 1961 shall ensure 
that an equitable portion of the funds is made available to benefit 
Afghan women and girls, particularly in programs in refugee camps in 
Pakistan and in reconstruction projects in Afghanistan.
    (c) Funding.--Up to $20,000,000 of the aggregate amount of funds 
made available for fiscal year 1994 to carry out chapter 1 of part I of 
the Foreign Assistance Act of 1961 (relating to development assistance) 
and chapter 4 of part II of that Act (relating to the economic support 
fund) may be used pursuant to this section.

SEC. 309. MULTILATERAL ASSISTANCE INITIATIVE FOR THE PHILIPPINES.

    Part I of the Foreign Assistance Act of 1961 is amended by 
inserting after chapter 3 the following:

  ``Chapter 4--Multilateral Assistance Initiative for the Philippines

``SEC. 401. AUTHORIZATION OF ASSISTANCE.

    ``(a) Authorization.--The President is authorized to provide 
economic assistance for the Philippines under the `Multilateral 
Assistance Initiative' account. Such assistance shall be provided on 
such terms and conditions as the President may determine.
    ``(b) Authorization for Extended Period of Availability.--Amounts 
appropriated to carry out this chapter are authorized to remain 
available until expended.''.

SEC. 310. ASSISTANCE FOR EASTERN EUROPE AND THE BALTICS.

    (a) Economic Assistance.--Section 3 of the Support for East 
European Democracy (SEED) Act of 1989 is amended--
            (1) by redesignating subsection (c) as subsection (e); and
            (2) by inserting after subsection (b) the following:
    ``(c) Inapplicability of Restrictions and Requirements.--Assistance 
provided for an East European country under this Act or under part I of 
the Foreign Assistance Act of 1961 may be provided notwithstanding any 
other provision of law, other than section 634A(a) of that Act. Section 
634A(a) of that Act shall also apply to funds made available to carry 
out this Act.
    ``(d) Authorization for Extended Period of Availability.--Amounts 
appropriated for economic assistance for East European countries under 
this Act or the Foreign Assistance Act of 1961 are authorized to remain 
available until expended.''.
    (b) Assistance for Victims of War Crimes in the Former 
Yugoslavia.--Assistance provided under section 491 of the Foreign 
Assistance Act of 1961 (relating to international disaster assistance) 
and assistance provided under the Migration and Refugee Assistance Act 
of 1962 may include assistance for the victims of torture, rape, and 
other war crimes stemming from the conflict in the former Yugoslavia 
and for the families of such victims (especially children), with a 
particular focus on victims of the war in Bosnia-Hercegovina. Such 
assistance may include activities such as--
            (1) the provision (in the United States or abroad)--
                    (A) of medical, psychological, and psychiatric care 
                and crisis counseling for such victims and their 
                families, and
                    (B) of training of individuals in the former 
                Yugoslavia to provide such care and counseling; and
            (2) the procurement of necessary medical and training 
        supplies.
    (c) Correction of Reference.--Subsection (e) of section 3 of the 
Support for East European Democracy (SEED) Act of 1989, as so 
redesignated by subsection (a) of this section, is amended--
            (1) by striking ``and Slovak Federal''; and
            (2) by inserting ``the Slovak Republic,'' after 
        ``Romania,''.

SEC. 311. ASSISTANCE FOR THE INDEPENDENT STATES OF THE FORMER SOVIET 
              UNION.

    (a) Cuba.--
            (1) Sense of the congress.--It is the sense of the Congress 
        that--
                    (A) the acts of the Castro government, including 
                its massive, systematic, and extraordinary violations 
                of human rights, are a threat to international peace;
                    (B) the President should advocate, and should 
                instruct the United States Representatives to the 
                United Nations to support and consult with members of 
                the Security Council with respect to, a mandatory 
                international embargo against the totalitarian 
                government of Cuba pursuant to Chapter VII of the 
                Charter of the United Nations, which is similar to 
                consultations being conducted by United States 
                Representatives with respect to Haiti; and
                    (C) any resumption of efforts by any independent 
                state of the former Soviet Union to make the nuclear 
                facility at Cienfuegos, Cuba, operational will have a 
                serious impact on United States assistance to such 
                state.
            (2) Reporting requirement.--The President shall submit to 
        the Congress, not later than 90 days after the date of 
        enactment of this Act, a report detailing progress towards the 
        withdrawal of personnel of any independent state of the former 
        Soviet Union (including advisors, technicians, and military 
        personnel) from the Cienfuegos nuclear facility in Cuba.
            (3) Criteria for assistance.--Section 498A(a)(11) of the 
        Foreign Assistance Act of 1961 is amended by striking ``of 
        military facilities'' and inserting ``the military and nuclear 
        facilities at Lourdes and Cienfuegos''.
            (4) Ineligibility for assistance.--(A) Section 498A(b) of 
        that Act is amended--
                    (i) by striking ``or'' at the end of paragraph (4);
                    (ii) by redesignating paragraph (5) as paragraph 
                (6); and
                    (iii) by inserting after paragraph (4) the 
                following:
            ``(5) for the government of any independent state that the 
        President determines is providing assistance for, or engaging 
        in nonmarket based trade (as defined in section 498B(m)(3)) 
        with, the Government of Cuba; or''.
            (B) Subsection (m) of section 498B of that Act, as so 
        redesignated by subsections (d) and (e) of this section, is 
        amended by adding at the end the following:
            ``(3) Nonmarket based trade.--As used in section 
        498A(b)(5), the term `nonmarket based trade' includes exports, 
        imports, exchanges, or other arrangements that are provided for 
        goods and services (including oil and other petroleum products) 
        on terms more favorable than those generally available in 
        applicable markets or for comparable commodities, including--
                    ``(A) exports to the Government of Cuba on terms 
                that involve a grant, concessional price, guaranty, 
                insurance, or subsidy;
                    ``(B) imports from the Government of Cuba at 
                preferential tariff rates; and
                    ``(C) exchange arrangements that include advance 
                delivery of commodities, arrangements in which the 
                Government of Cuba is not held accountable for 
                unfulfilled exchange contracts, and arrangements under 
                which Cuba does not pay appropriate transportation, 
                insurance, or finance costs.''.
    (b) Transfers of Sophisticated Conventional Weapons to Iran.--
Section 498A(b)(3) of that Act is amended--
            (1) in the text preceding subparagraph (A), by striking 
        ``to another country'';
            (2) in subparagraph (A)--
                    (A) by inserting ``to another country'' after 
                ``missiles or missile technology''; and
                    (B) by striking ``or'' at the end of such 
                subparagraph;
            (3) in subparagraph (B)--
                    (A) by inserting ``to another country'' after ``any 
                material, equipment, or technology''; and
                    (B) by ``or'' at the end of such subparagraph; and
            (4) by adding at the end the following:
                    ``(C) sophisticated conventional weapons to Iran in 
                numbers and types that are destabilizing;''.
    (c) Authority To Waive Certain Restrictions.--Section 498B(j)(1) of 
that Act is amended--
            (1) by inserting ``or 1994'' after ``1993'' both places it 
        appears; and
            (2) by striking ``by this chapter'' and inserting ``to 
        carry out this chapter''.
    (d) Assistance in Exchange for Commodities.--
            (1) Authorization.--Section 498B of that Act is amended--
                    (A) by redesignating subsection (k) as subsection 
                (l); and
                    (B) by inserting after subsection (j) the 
                following:
    ``(k) Assistance in Exchange for Commodities.--The President is 
authorized to provide assistance under this chapter in exchange for 
materials or commodities, including any strategic material and any 
commodity the international supply of which is in such excess as to 
jeopardize United States production of such commodity.''.
            (2) Congressional policy statement.--It is the sense of the 
        Congress that--
                    (A) the President should encourage those 
                independent states of the former Soviet Union capable 
                of providing eventual reimbursement to the United 
                States for assistance provided to such states under 
                chapter 11 of part I of the Foreign Assistance Act of 
                1961 to enter into negotiations with the United States 
                to reach agreements outlining such eventual 
                reimbursement; and
                    (B) at least $744,115,000 of the amounts 
                appropriated pursuant to the authorization of 
                appropriations in section 201(a)(8) of this Act for 
                assistance for the independent states of the former 
                Soviet Union for fiscal year 1994 should be obligated 
                only under the terms of agreements providing for 
                eventual reimbursement of such assistance.
            (3) Study of resources in independent states.--The 
        President shall conduct a study of--
                    (A) the resources in each of the independent states 
                of the former Soviet Union and the prospective revenues 
                from the production and sale of such resources;
                    (B) the possible use of barter or exchange of such 
                resources as methods of reimbursement for assistance 
                provided to such states under chapter 11 of part I of 
                the Foreign Assistance Act of 1961; and
                    (C) the collateralization of loan and investment 
                guarantees provided by the United States Government for 
                project financing in such states using the resources or 
                prospective revenues from the production and sale of 
                such resources.
            (4) Reports.--The President shall submit to the relevant 
        congressional committees the following reports:
                    (A) Periodic reports describing the status of 
                negotiations between the United States and any 
                independent state of the former Soviet Union relating 
                to agreements for reimbursement of assistance provided 
                to such state under chapter 11 of part I of the Foreign 
                Assistance Act of 1961.
                    (B) A report containing the results of the study 
                conducted pursuant to paragraph (3), including the 
                names of those independent states of the former Soviet 
                Union capable of providing eventual reimbursement of 
                assistance provided to such states under that chapter. 
                Such report shall be submitted not later than June 30, 
                1994.
            (5) Definitions.--For purposes of this subsection, the 
        following definitions apply:
                    (A) Relevant congressional committees.--The term 
                ``relevant congressional committees'' means the 
                Committee on Foreign Affairs of the House of 
                Representatives and the Committee on Foreign Relations 
                of the Senate.
                    (B) Resources.--The term ``resources'' includes 
                commodities, raw materials (including necessary or 
                strategic raw materials, as defined in section 663(a) 
                of the Foreign Assistance Act of 1961), and other 
                valuable materials.
    (e) Improving Monitoring of Economic Performance in the Independent 
States.--Section 498B of that Act, as amended by subsection (d)(1) of 
this section, is further amended--
            (1) by redesignating subsection (l) as subsection (m); and
            (2) by inserting after subsection (k) the following:
    ``(l) Improving Monitoring of Economic Performance in the 
Independent States.--Assistance under section 498 shall include 
training and other technical assistance to develop capabilities to 
monitor economic performance in the independent states of the former 
Soviet Union through the collection, analysis, and dissemination of 
economic statistical data.''.
    (f) Removal of Troops From the Baltic States.--Effective October 1, 
1993, paragraph (6) of section 498A(b) of that Act, as so redesignated 
by subsection (a)(4) of this section, is amended to read as follows:
            ``(6) for the Government of Russia until the President 
        certifies to the Congress that the Government of Russia--
                    ``(A) has made further significant progress since 
                the President's certification to the Congress on May 
                31, 1993, on the removal of all of the armed forces of 
                Russia and the Commonwealth of Independent States from 
                Estonia, Latvia, and Lithuania (including any units of 
                such forces that are demobilized), or has completed 
                with the governments of such countries negotiated 
                agreements that include timetables for such removal; 
                and
                    ``(B) has undertaken good faith efforts, such as 
                negotiations, to end other military practices by Russia 
                and the Commonwealth of Independent States that violate 
                the sovereignty of Estonia, Latvia, or Lithuania, 
                including--
                            ``(i) artillery or similar armed forces 
                        training operations on the territories of 
                        Estonia, Latvia, or Lithuania without the 
                        permission of their governments;
                            ``(ii) interference in the air space or 
                        territorial waters of Estonia, Latvia, or 
                        Lithuania;
                            ``(iii) the introduction of additional 
                        armed forces, military equipment, or related 
                        civilian personnel onto the territories of 
                        Estonia, Latvia, or Lithuania without the 
                        permission of their governments; or
                            ``(iv) the imposition of an economic 
                        blockade or interruption of energy supplies 
                        upon Estonia, Latvia, or Lithuania;
        except that this paragraph does not apply with respect to (I) 
        housing assistance for officers of the armed forces of Russia 
        and the Commonwealth of Independent States who are withdrawn 
        from the territories of Estonia, Latvia, and Lithuania, or (II) 
        food, clothing, medicine, or other humanitarian assistance.''.

SEC. 312. ASSISTANCE FOR MONGOLIA.

    The President is authorized to use funds made available to carry 
out chapter 11 of part I of the Foreign Assistance Act of 1961 
(relating to assistance for the independent states of the former Soviet 
Union) to provide assistance for Mongolia in accordance with the same 
authorities, restrictions, and other provisions that are applicable to 
assistance under that chapter for independent states of the former 
Soviet Union.

SEC. 313. TERMINATION OF IMET PROGRAM FOR MALTA.

    Funds made available for fiscal year 1994 to carry out chapter 5 of 
part II of the Foreign Assistance Act of 1961 (relating to the 
international military education and training program) may not be 
obligated for Malta.

SEC. 314. ADMINISTRATION OF JUSTICE AND OTHER LAW ENFORCEMENT 
              ASSISTANCE PROGRAMS FOR LATIN AMERICA AND THE CARIBBEAN.

    (a) Extension of Program Authority.--Section 534 of the Foreign 
Assistance Act of 1961 is amended by striking the last sentence of 
subsection (e) and by inserting after subsection (e) the following:
    ``(f) The authority of this section shall expire on September 30, 
1994.''.
    (b) Elimination of Program Ceilings.--Section 534 of that Act is 
amended--
            (1) by repealing the second sentence of subsection (e); and
            (2) by amending subsection (c) to read as follows:
    ``(c) Funds made available to carry out this chapter may be used to 
provide assistance under this section.''.
    (c) Protection of Participants in Judicial Cases.--Section 
534(b)(3) of that Act is amended--
            (1) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (D) and (E), respectively; and
            (2) by inserting after subparagraph (B) the following:
                    ``(C) programs to enhance protection of 
                participants in judicial cases;''.
    (d) Special Authorities for Certain Countries.--Funds made 
available for fiscal year 1994 to carry out section 534 of that Act may 
be used, notwithstanding section 660 of that Act, to provide assistance 
as follows:
            (1) Panama.--Up to $10,000,000 may be made available for 
        Panama for the following:
                    (A) Technical assistance, training, and commodities 
                with the objective of creating a professional civilian 
                police force, except that assistance under this 
                subparagraph--
                            (i) shall not include more than $5,000,000 
                        for the procurement of equipment for law 
                        enforcement purposes, and
                            (ii) shall not include lethal equipment.
                    (B) Programs to improve penal institutions and the 
                rehabilitation of offenders, which may include programs 
                that are not conducted through multilateral or regional 
                institutions.
            (2) El salvador.--Funds allocated for El Salvador may be 
        used for law enforcement assistance in a manner consistent with 
        the Salvadoran Peace Accords.

SEC. 315. WAIVER OF BROOKE AMENDMENT FOR NICARAGUA.

    Section 620(q) of the Foreign Assistance Act of 1961 and the 
corresponding section of the Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 1994, shall not apply to funds 
made available for fiscal year 1994 for any assistance for Nicaragua 
under the Foreign Assistance Act of 1961 or the Arms Export Control 
Act.

SEC. 316. SPECIAL NOTIFICATION REQUIREMENTS FOR GUATEMALA AND PERU.

    Funds made available for fiscal year 1994 to carry out the Foreign 
Assistance Act of 1961 or for the ``Foreign Military Financing 
Program'' account under section 23 of the Arms Export Control Act may 
not be obligated for assistance for Guatemala or Peru unless the 
congressional committees specified in section 634A(a) of the Foreign 
Assistance Act of 1961 are notified at least 15 days in advance in 
accordance with the reprogramming procedures applicable under that 
section.

SEC. 317. ASSISTANCE FOR THE MIDDLE EAST.

    (a) Israel.--
            (1) Economic support fund.--Of the amounts made available 
        for fiscal year 1994 for assistance under chapter 4 of part II 
        of the Foreign Assistance Act of 1961, not less than 
        $1,200,000,000 shall be available only for Israel. Such funds 
        shall be available on a grant basis as a cash transfer and 
        shall be disbursed in accordance with paragraph (3).
            (2) Foreign military financing.--(A) Of the amounts made 
        available for fiscal year 1994 for assistance under the 
        ``Foreign Military Financing Program'' account under section 23 
        of the Arms Export Control Act, not less than $1,800,000,000 
        shall be available only for Israel.
            (B) To the extent that the Government of Israel requests 
        that funds be used for such purposes, funds made available for 
        Israel pursuant to this paragraph shall, as agreed by Israel 
        and the United States, be available for advanced fighter 
        aircraft programs or for other advanced weapons systems, as 
        follows:
                    (i) Up to $150,000,000 shall be available for 
                research and development in the United States.
                    (ii) Not less than $475,000,000 shall be available 
                for the procurement in Israel of defense articles and 
                defense services, including research and development.
            (3) Early disbursement.--The assistance provided for Israel 
        pursuant to paragraphs (1) and (2) shall be disbursed within 30 
        days after the date of enactment of the Foreign Operations, 
        Export Financing, and Related Programs Appropriations Act, 
        1994, or by October 31, 1993, whichever is later.
    (b) Egypt.--
            (1) Economic support fund.--Of the amounts made available 
        for fiscal year 1994 for assistance under chapter 4 of part II 
        of the Foreign Assistance Act of 1961, not less than 
        $815,000,000 shall be available only for Egypt.
            (2) Foreign military financing.--Of the amounts made 
        available for fiscal year 1994 for assistance under the 
        ``Foreign Military Financing Program'' account under section 23 
        of the Arms Export Control Act, not less than $1,300,000,000 
        shall be available only for Egypt.
    (c) Cooperative Development Projects.--Of the amounts made 
available for fiscal year 1994 to carry out chapter 4 of part II of the 
Foreign Assistance Act of 1961 (relating to the economic support fund), 
not less than $10,000,000 shall be available only for cooperative 
projects among the United States, Israel, and developing countries, 
including projects under the Cooperative Development Program, 
cooperative development research projects, and cooperative projects 
among the United States and Israel and the countries of Eastern Europe, 
the Baltic states, and the independent states of the former Soviet 
Union.
    (d) Middle East Regional Cooperative Programs.--Of the amounts made 
available for fiscal year 1994 to carry out chapter 4 of part II of the 
Foreign Assistance Act of 1961 (relating to the economic support fund), 
not less than $7,000,000 shall be available only for Middle East 
regional cooperative programs carried out in accordance with section 
202(c) of the International Security and Development Cooperation Act of 
1985.

SEC. 318. MILITARY DRAWDOWN FOR ISRAEL.

    Section 599B(a) of the Foreign Operations, Export Financing, and 
Related Programs Appropriations Act, 1991, is amended by inserting 
``and fiscal year 1994'' after ``fiscal year 1993''.

SEC. 319. TERMINATION OF IMET PROGRAM FOR INDIA.

    Funds made available for fiscal year 1994 to carry out chapter 5 of 
part II of the Foreign Assistance Act of 1961 (relating to the 
international military education and training program) may not be 
obligated for India unless the President certifies to the Congress that 
the Government of India is taking steps to address the human rights 
problem in India, such as providing access to international human 
rights organizations, establishing a human rights commission, holding 
military personnel accountable for violations of fundamental human 
rights, and prosecuting human rights abusers.

            TITLE IV--PROVISIONS RELATING TO ARMS TRANSFERS

SEC. 401. COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES AND 
              SERVICES.

    (a) Costing Basis.--Section 22 of the Arms Export Control Act is 
amended by adding at the end the following:
    ``(d) Competitive Pricing.--Procurement contracts made in 
implementation of sales under this section for defense articles and 
defense services wholly paid from funds made available on a 
nonrepayable basis shall be priced on the same costing basis with 
regard to profit, overhead, independent research and development, bid 
and proposal, and other costing elements, as is applicable to 
procurements of like items purchased by the Department of Defense for 
its own use.''.
    (b) Effective Date and Implementing Regulations.--The amendment 
made by subsection (a)--
            (1) shall be effective as of the 60th day following the 
        date of the enactment of this section;
            (2) shall be applicable only to contracts made in 
        implementation of sales made after such effective date; and
            (3) shall be implemented by revised procurement 
        regulations, which shall be issued prior to such effective 
        date.

SEC. 402. INCREASE IN AGGREGATE CEILING ON TRANSFERS OF EXCESS DEFENSE 
              ARTICLES.

    Effective October 1, 1993, section 31(d) of the Arms Export Control 
Act is amended by striking ``$250,000,000'' and inserting 
``$375,000,000''.

SEC. 403. ELIGIBILITY OF EAST EUROPEAN COUNTRIES TO RECEIVE NONLETHAL 
              EXCESS DEFENSE ARTICLES.

    (a) In General.--Section 519(a) of the Foreign Assistance Act of 
1961 is amended by inserting ``or to any East European country (as 
defined in section 3 of the Support for East European Democracy (SEED) 
Act of 1989) other than an East European country that is prohibited 
from receiving assistance under that Act'' after ``in which the 
transfer is authorized''.
    (b) Conforming Amendment.--Section 906(a) of the Freedom for Russia 
and Emerging Eurasian Democracies and Open Markets Support Act of 1992 
is amended--
            (1) by striking paragraph (2);
            (2) by striking ``eligible--'' through ``(1) to purchase'' 
        and inserting ``eligible to purchase'';
            (3) by redesignating subparagraphs (A) and (B) as 
        paragraphs (1) and (2), respectively, and by resetting their 
        left margins on a 2-em indentation; and
            (4) by striking ``; and'' at the end of paragraph (2), as 
        so redesignated, and inserting a period.

SEC. 404. EXCEPTION TO PAYMENT OF FULL COST FOR SALES OF DEFENSE 
              TRAINING SERVICES TO CERTAIN COUNTRIES AND INTERNATIONAL 
              ORGANIZATIONS.

    Section 21(a) of the Arms Export Control Act is amended--
            (1) in paragraph (1)(C)--
                    (A) by inserting ``(i)'' after ``sold to'',
                    (B) by inserting ``or (ii) a purchaser described in 
                paragraph (3)'' after ``Act of 1961'', and
                    (C) by striking ``such assistance'' and inserting 
                ``such training''; and
            (2) by adding after paragraph (2) the following:
    ``(3) Clause (ii) of paragraph (1)(C) applies in the case of a 
purchaser of training under this section if the President notifies the 
Committee on Appropriations, the Committee on Armed Services, and the 
Committee on Foreign Relations of the Senate and the Committee on 
Appropriations, the Committee on Armed Services, and the Committee on 
Foreign Affairs of the House of Representatives, in accordance with the 
regular notification procedures of those committees, at least 15 days 
before issuing a letter of offer to sell such training. Such 
notification shall include a description of any reciprocal benefits 
that the United States Government will receive in exchange for the sale 
of such training on less than a full cost basis.''.

SEC. 405. ELIGIBILITY OF MAJOR NON-NATO ALLIES TO RECEIVE CERTAIN 
              CONTRACT SERVICES IN CONNECTION WITH SALES OF DEFENSE 
              ARTICLES AND SERVICES.

    (a) Authorization.--Section 21(h) of the Arms Export Control Act is 
amended--
            (1) in paragraph (1)(A), by inserting ``or which is a major 
        non-NATO ally'' after ``Treaty Organization'';
            (2) in paragraph (2), by striking ``if that Organization or 
        member government'' and inserting ``or to any major non-NATO 
        ally, if that Organization, member government, or major non-
        NATO ally''; and
            (3) by adding at the end the following:
    ``(3) As used in this subsection, the term `major non-NATO ally' 
has the meaning given such term in section 2350a(i)(3) of title 10, 
United States Code.''.
    (b) Effective Date.--Notwithstanding section 21(h)(1) of that Act, 
the amendment made by subsection (a)(1) applies with respect to 
contracts and subcontracts entered into after the date of enactment of 
this Act.

SEC. 406. ADDITIONS TO WAR RESERVE STOCKPILES FOR ALLIES.

    Section 514(b)(2) of the Foreign Assistance Act of 1961 is amended 
by adding at the end the following: ``Except as provided in the last 
two sentences of this paragraph, the value of such additions to 
stockpiles in foreign countries in fiscal year 1994 shall not exceed 
$72,000,000, which shall be for stockpiles in the Republic of Korea. In 
addition, to the extent that the authority of the first sentence of 
this paragraph has not been exercised with respect to Israel in fiscal 
year 1993, that authority may be exercised during fiscal year 1994 
except that the aggregate value of such additions for Israel in both 
such fiscal years may not exceed $200,000,000. Defense articles having 
an aggregate value of not to exceed $20,000,000 may be added to 
stockpiles in Thailand in fiscal years 1993 and 1994.''.

SEC. 407. ARAB BOYCOTT.

    (a) Prohibition on Certain Sales and Leases.--Defense articles and 
defense services may not be sold or leased by the United States 
Government to any country or international organization which as a 
matter of policy or practice is known to have sent letters to United 
States firms requesting compliance with, or soliciting information 
regarding compliance with, the secondary or tertiary Arab boycott, 
unless the President determines, and reports to the relevant 
congressional committees, that that country or organization does not 
now send such letters as a matter of policy or practice.
    (b) Waiver of Prohibition.--
            (1) 1 year waiver.--After the effective date of this 
        section, the President may waive, for a period of 1 year, the 
        application of subsection (a) with respect to any country or 
        organization if the President determines, and reports to the 
        relevant congressional committees, that--
                    (A) such waiver is in the national interest of the 
                United States, and such waiver will promote the 
                objectives of this section to eliminate the Arab 
                boycott; or
                    (B) such waiver is in the national security 
                interest of the United States.
            (2) Extension of waiver.--If the President determines that 
        the further extension of a waiver will promote the objectives 
        of this section, the President, with appropriate notification 
        to relevant congressional committees, may grant further 
        extensions of such waiver for successive 12-month periods.
            (3) Termination of waiver.--The President may, at any time, 
        terminate any waiver granted under this subsection.
    (c) Relevant Congressional Committees.--As used in this section, 
the term ``relevant congressional committees'' means the Committee on 
Foreign Relations of the Senate and the Committee on Foreign Affairs of 
the House of Representatives.
    (d) Effective Date.--This section shall not take effect until one 
year after the date of enactment of this Act.

              TITLE V--OTHER FOREIGN ASSISTANCE PROVISIONS

SEC. 501. INTEREST ACCRUING TO NONGOVERNMENTAL ORGANIZATIONS.

    (a) In General.--Chapter 1 of part III of the Foreign Assistance 
Act of 1961 is amended by inserting after section 617 the following:

``SEC. 618. INTEREST ACCRUING TO NONGOVERNMENTAL ORGANIZATIONS.

    ``(a) Authority To Retain Interest.--A nongovernmental organization 
may place in an interest bearing account--
            ``(1) funds made available on a grant basis under part I of 
        this Act or under the Support for East European Democracy 
        (SEED) Act of 1989; and
            ``(2) local currencies which accrue to that organization as 
        a result of grant assistance provided under part I of this Act 
        or assistance under titles I through III of the Agricultural 
        Trade Development and Assistance Act of 1954, section 416(b) of 
        the Agricultural Act of 1949, or the Food for Progress Act of 
        1985.
Any interest so earned may be retained by the nongovernmental 
organization and used for the purpose for which the assistance was 
provided to that organization.
    ``(b) Limitation on Endowments.--Any grant agreement entered into 
after the date of enactment of this section to establish an endowment 
pursuant to the authority of subsection (a)(1) shall provide that--
            ``(1) the grant proceeds shall be maintained in a separate 
        account;
            ``(2) the agency primarily responsible for administering 
        part I may terminate at any time, in its sole discretion, the 
        endowment and recover endowment principal equal to the amount 
        of the grant; and
            ``(3) unless the authority described in paragraph (2) has 
        been exercised, not later than 20 years after the date of the 
        grant--
                    ``(A) the endowment shall be terminated, and
                    ``(B) all funds in the endowment and all interest 
                earned as a result of the endowment shall be expended 
                for the purpose for which the assistance was provided 
                or returned to the Government of the United States.''.
    (b) Effective Date.--The amendment made by this section applies to 
both interest earned before and interest earned after the date of 
enactment of this Act.

SEC. 502. PRIVATE SECTOR REVOLVING FUND.

    Section 108 of the Foreign Assistance Act of 1961 is amended by 
adding at the end the following:
    ``(j) Termination of Authority.--After the date of enactment of 
this subsection, loans may not be made, loan guarantees may not be 
issued, previously issued guarantees may not be renewed or otherwise 
extended, and assistance may not otherwise be provided under the 
authority of this section.''.

SEC. 503. DEVELOPMENT ASSISTANCE THROUGH NONGOVERNMENTAL ORGANIZATIONS.

    Chapter 1 of part III of the Foreign Assistance Act of 1961 is 
amended by inserting before section 620 the following:

``SEC. 619. ASSISTANCE THROUGH NONGOVERNMENTAL ORGANIZATIONS.

    ``(a) Development Assistance.--Restrictions contained in this or 
any other Act with respect to assistance for a country shall not 
restrict assistance in support of programs of nongovernmental 
organizations that is provided under chapter 1 or chapter 10 of part I 
of this Act. The President shall take into consideration, in any case 
in which a restriction on assistance would be applicable but for this 
section, whether assistance in support of programs of nongovernmental 
organizations is in the national interest of the United States.
    ``(b) Notice to Congress.--Before using the authority of this 
section to furnish assistance in support of programs of nongovernmental 
organizations, the President shall notify the congressional committees 
specified in section 634A(a) of this Act in accordance with the 
procedures applicable to reprogramming notifications under that 
section. Such notice shall include a description of the program to be 
assisted, the assistance to be provided, and the reasons for furnishing 
such assistance.
    ``(c) Exceptions.--This section shall not apply with respect to--
            ``(1) section 620A of this Act or any comparable provision 
        of law prohibiting assistance to countries that support 
        international terrorism; or
            ``(2) section 116 of this Act or any comparable provision 
        of law prohibiting assistance to countries that violate 
        internationally recognized human rights.
    ``(d) Abortion and Involuntary Sterilization Prohibitions.--Nothing 
in this section alters any statutory prohibition against funding for 
abortion or involuntary sterilizations.''.

SEC. 504. IMPACT OF FOREIGN ASSISTANCE PROGRAMS ON JOBS IN THE UNITED 
              STATES.

    Funds authorized to be appropriated by this Act for foreign 
assistance programs for fiscal year 1994 may not be obligated or 
expended to provide--
            (1) any financial incentive to a business enterprise 
        located in the United States for the purpose of inducing that 
        enterprise to relocate outside the United States if such 
        incentive or inducement is likely to reduce the number of 
        individuals employed in the United States by that enterprise 
        because that enterprise would replace production in the United 
        States with production 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 in any designated 
        zone or area in that country.
In recognition that the application of paragraph (3) should be 
commensurate with the level of development of the recipient country and 
sector, that paragraph does not preclude assistance for the informal 
sector in such country, for microenterprises and small-scale 
enterprises, or for small-holder agriculture.

SEC. 505. CAPITAL PROJECTS.

    Chapter 3 of part III of the Foreign Assistance Act of 1961 is 
amended by inserting after section 661 the following:

``SEC. 662. CAPITAL PROJECTS.

    ``(a) Establishment of Pilot Program.--The Director of the Trade 
and Development Agency shall establish a capital projects pilot program 
to carry out the purpose described in subsection (b).
    ``(b) Purpose of Program.--The purpose referred to in subsection 
(a) is to develop a program administered by TDA that would focus solely 
on developmentally sound capital projects in developing countries and 
in countries making the transition from a nonmarket to a market 
economy, taking into consideration the development needs of the host 
country and the export opportunities for the United States.
    ``(c) Activities.--The Director, in coordination with the 
appropriate other members of the Trade Promotion Coordination 
Committee--
            ``(1) shall support capital projects in developing 
        countries and in countries making the transition from a 
        nonmarket to a market economy; and
            ``(2) shall periodically review infrastructure needs in 
        these countries and shall explore opportunities for United 
        States firms in the development of new capital projects in 
        these countries, keeping both United States firms and the 
        Congress informed of these reviews.
    ``(d) Guarantee Authority.--In addition to making grants to carry 
out this section, the Director is authorized to issue guarantees to 
eligible investors (as defined in section 238(c)) assuring against 
losses incurred in connection with loans obtained by such investors to 
finance their participation in capital projects described in subsection 
(b). A fee shall be charged for each such guarantee issued in an amount 
to be determined by the Director.
    ``(e) Procurement From the United States.--Guarantees and other 
financial support provided for capital projects under this section 
shall be provided for procurement of goods and services from the United 
States to the maximum extent possible, consistent with the guidelines 
of the Organization for Economic Cooperation and Development.
    ``(f) Projects To Be Developmentally Sound.--The Director, in 
coordination with the appropriate other members of the Trade Promotion 
Coordination Committee, shall ensure that each capital project for 
which TDA provides financial support is developmentally sound, as 
determined under the criteria developed by the Development Assistance 
Committee of the Organization for Economic Cooperation and Development.
    ``(g) Coordination.--The President shall utilize the existing 
interagency coordinating mechanism to coordinate activities under this 
section with other relevant activities of the United States Government.
    ``(h) Nonapplicability of Other Provisions.--Any funds used for 
purposes of this section may be used notwithstanding any other 
provision of law.
    ``(i) Report to Congress.--Not later than 1 year after the date of 
enactment of this section, the Director shall submit to the Congress a 
report describing--
            ``(1) the extent to which United States Government 
        resources have been expended specifically to support the 
        capitol projects described in subsection (b);
            ``(2) the extent to which the activities of the United 
        States Government have been coordinated pursuant to subsection 
        (g); and
            ``(3) the feasibility of establishing a permanent program 
        modeled on the pilot program establishment pursuant to this 
        section.
    ``(j) Funding.--
            ``(1) In general.--Notwithstanding the percentage 
        limitations in section 610(a), the President shall transfer 
        $300,000,000 of funds specified in paragraph (2) to TDA for use 
        in carrying out this section, including the cost (as defined in 
        section 502(5) of the Federal Credit Reform Act of 1990) of 
        guarantees issued under subsection (d).
            ``(2) Source of funds.--The funds specified in this 
        paragraph are--
                    ``(A) funds made available for fiscal year 1994 for 
                assistance under chapter 4 of part II of this Act 
                (relating to the economic support fund), excluding 
                funds made available pursuant to subsections (a)(1), 
                (c), and (d) of section 317 of the Foreign Assistance 
                Authorization Act of 1993;
                    ``(B) funds made available for fiscal year 1994 for 
                assistance under chapter 11 of part I of this Act 
                (relating to assistance for the independent states of 
                the former Soviet Union); and
                    ``(C) funds made available for fiscal year 1994 for 
                assistance under the Support for East European 
                Democracy (SEED) Act of 1989.
            ``(3) Funds to be used to support capital projects in 
        countries for which original funding was provided.--(A) Any 
        funds described in paragraph (2)(A) that are earmarked by the 
        Congress for a specific country and that are transferred 
        pursuant to paragraph (1) shall be used to support capital 
        projects in that country.
            ``(B) Any funds described in paragraph (2)(B) that are 
        transferred pursuant to paragraph (1) shall be used to support 
        capital projects in countries eligible for assistance under 
        chapter 11 of part I of this Act.
            ``(C) Any funds described in paragraph (2)(C) that are 
        transferred pursuant to paragraph (1) shall be used to support 
        capital projects in countries eligible for assistance under the 
        Support for East European Democracy (SEED) Act of 1989.
    ``(k) Definitions.--As used in this section--
            ``(1) the term `capital projects' means a project involving 
        the construction, expansion, alteration of, or the acquisition 
        of equipment for, a physical facility or physical 
        infrastructure, including related engineering design (concept 
        and detail) and other services, the procurement of equipment 
        (including any related services), and feasibility studies or 
        similar engineering and economic services;
            ``(2) the term `Director' means the Director of TDA; and
            ``(3) the term `TDA' means the Trade and Development 
        Agency.''.

SEC. 506. MICROENTERPRISE DEVELOPMENT.

    Chapter 2 of part I of the Foreign Assistance Act of 1961 is 
amended by adding after title V the following:

                ``title vi--microenterprise development

``SEC. 251. MICROENTERPRISE DEVELOPMENT.

    ``(a) Centrally-Managed Fund.--
            ``(1) Establishment and management.--The administrator of 
        the agency primarily responsible for administering this part 
        shall establish within the agency a centrally-managed fund to 
        be known as the Microenterprise Development Fund (hereinafter 
        in this section referred to as the `Fund'). The Fund shall be 
        managed by the office in that agency that has primary 
        responsibility for working with private and voluntary 
        organizations.
            ``(2) Disbursements through the fund.--All funds made 
        available to carry out this part that are used to promote 
        microenterprise development shall be disbursed through the 
        Fund.
    ``(b) Activities To Be Supported.--The Fund shall be used to 
support--
            ``(1) the institutional development of the organizations 
        described in subsection (c);
            ``(2) the provision of microenterprise credit through the 
        organizations described in subsection (c); and
            ``(3) research on microenterprise development and 
        evaluation of microenterprise activities funded under this 
        section.
    ``(c) Intermediary Organizations.--Funds disbursed through the Fund 
shall be primarily channeled through--
            ``(1) United States and indigenous private and voluntary 
        organizations,
            ``(2) United States and indigenous credit union 
        organizations, and
            ``(3) other indigenous governmental and nongovernmental 
        organizations,
that have demonstrated a capacity to develop sustainable 
microenterprise service institutions.
    ``(d) Allocation of Funds.--
            ``(1) Microenterprise credit.--(A) Of amounts disbursed 
        through the Fund each fiscal year pursuant to subsection 
        (b)(2), at least 50 percent shall be used for poverty lending. 
        As used in this paragraph, the term `poverty lending' means a 
        loan of $300 or less or, in the case of an initial loan, of 
        $150 or less.
            ``(B) The administrator of the agency primarily responsible 
        for administering this part shall seek to ensure that not less 
        than 60 percent of the borrowers of funds disbursed through the 
        Fund pursuant to subsection (b)(2) are women.
            ``(2) Research and evaluation.--Not more than 5 percent of 
        funds disbursed through the Fund each fiscal year may be used 
        for research and evaluation activities under subsection 
        (b)(3).''.

SEC. 507. REPORT ON AID'S IMPLEMENTATION OF AGENDA 21 PRINCIPLES.

    Not later than 2 years after the date of enactment of this Act, the 
administrator of the agency primarily responsible for administering 
part I of the Foreign Assistance Act of 1961 shall submit to the 
Congress a report on the incorporation of the Agenda 21 principles of 
the United Nations Conference on Environment and Development into the 
foreign assistance activities administered by that agency.

SEC. 508. AUTHORITY TO PROVIDE RECONSTRUCTION ASSISTANCE UNDER 
              INTERNATIONAL DISASTER ASSISTANCE.

    Section 491(b) of the Foreign Assistance Act of 1961 is amended by 
striking ``disaster relief and rehabilitation'' and inserting 
``disaster relief, rehabilitation, and reconstruction''.

SEC. 509. DEOBLIGATION OF CERTAIN UNEXPENDED ECONOMIC ASSISTANCE FUNDS.

    Chapter 3 of part III of the Foreign Assistance Act of 1961 is 
amended by adding at the end the following:

``SEC. 671. DEOBLIGATION OF CERTAIN UNEXPENDED ECONOMIC ASSISTANCE 
              FUNDS.

    ``(a) Requirement To Deobligate.--
            ``(1) Annual deobligations.--Except as provided in 
        subsection (b), at the beginning of each fiscal year the 
        President shall deobligate and return to the Treasury any funds 
        described in paragraph (2) that, as of the end of the preceding 
        fiscal year, have been obligated for a period of more than 4 
        years but have not been expended.
            ``(2) Funds subject to requirements.--Paragraph (1) applies 
        with respect to funds made available to carry out chapter 1 of 
        part I (relating to development assistance), chapter 4 of part 
        I (relating to the Multilateral Assistance Initiative for the 
        Philippines), chapter 10 of part I (relating to the Development 
        Fund for Africa), chapter 11 of part I (relating to assistance 
        for the independent states of the former Soviet Union), or 
        chapter 4 of part II (relating to the economic support fund) or 
        to carry out the Support for East European Democracy (SEED) Act 
        of 1989.
    ``(b) Exceptions.--The President, on a case-by-case basis, may 
waive the requirement of subsection (a) if the President determines, 
and reports to the appropriate congressional committees, that--
            ``(1) the funds are being used for a construction or long 
        term participant training project that requires more than 4 
        years to complete; or
            ``(2) the funds have not been expended because of 
        unforeseen circumstances, and those circumstances could not 
        have been reasonably foreseen.
    ``(c) IG Comments on Waivers.--As soon as possible after submission 
of a report pursuant to subsection (b), the Inspector General for the 
agency primarily responsible for administering part I of this Act shall 
submit to the appropriate congressional committees such comments as the 
Inspector General considers appropriate with regard to the 
determination described in that report.
    ``(d) Appropriate Congressional Committees.--As used in this 
section, the term `appropriate congressional committees' means the 
Committee on Foreign Affairs and the Committee on Appropriations of the 
House of Representatives and the Committee on Foreign Relations and the 
Committee on Appropriations of the Senate.''.

SEC. 510. PROCUREMENT.

    Section 604(a) of the Foreign Assistance Act of 1961 is amended to 
read as follows:
    ``(a) Limitations on Procurement Outside the United States.--(1) 
Funds made available for assistance under this Act may be used for 
procurement outside the United States only if--
            ``(A) the funds are used for the procurement of commodities 
        or services, or defense articles or defense services, in the 
        recipient country or in a developing country;
            ``(B) the provision of such assistance requires commodities 
        or services, or defense articles or defense services, of a type 
        that are not available for purchase in the United States, the 
        recipient country, or developing countries; or
            ``(C) the President determines, on a case-by-case basis, 
        that procurement in a country other than the United States, the 
        recipient country, or a developing country is necessary to meet 
        unforeseen circumstances, such as emergency situations, where 
        it is important to permit procurement in such other country.
    ``(2) For purposes of this section, the term `developing country' 
shall not include advanced developing countries.''.

SEC. 511. VIOLATIONS OF TERMS OF ASSISTANCE.

    Chapter 3 of part III of the Foreign Assistance Act of 1961, as 
amended by the preceding sections of this Act, is further amended by 
adding at the end the following:

``SEC. 672. VIOLATION OF TERMS OF ASSISTANCE.

    ``(a) Termination of Assistance.--If any recipient of assistance 
under this Act uses such assistance in substantial violation (either in 
terms of amounts or in terms of the gravity of the consequences 
regardless of the amounts involved) of any agreement pursuant to which 
that assistance was furnished by using such assistance, without the 
consent of the United States, for a purpose not authorized under such 
agreement, then all assistance and deliveries of assistance to such 
recipient under this Act shall be terminated if--
            ``(1) the President so determines and states in writing to 
        the Congress; and
            ``(2) the Congress enacts a joint resolution declaring that 
        the Congress agrees with such determination.
    ``(b) Period of Termination.--Assistance shall remain terminated in 
accordance with subsection (a) until such time as--
            ``(1) the President determines that the violation has 
        ceased; and
            ``(2) the recipient concerned has given assurances 
        satisfactory to the President that such violation will not 
        recur.''.

SEC. 512. FOREIGN AID REPORTING REQUIREMENT.

    (a) Annual Foreign Assistance Justification Report.--In conjunction 
with the submission of the annual requests for enactment of 
authorizations and appropriations for foreign assistance programs for 
each fiscal year, the President shall submit to the Congress a single 
report containing an integrated justification for all foreign 
assistance programs proposed by the President for the coming fiscal 
year. Each such report shall include--
            (1) the total amount of assistance proposed to be provided 
        under each foreign assistance program;
            (2) the justification for that amount;
            (3) the objectives that assistance under that program is 
        intended to achieve;
            (4) an explanation of the relationship of assistance under 
        that program to other assistance provided by the United States; 
        and
            (5) the President's estimation of the date by which the 
        objectives of that program will be achieved and the program 
        concluded.
    (b) Definition.--As used in this section, the term ``foreign 
assistance program'' includes any program of assistance under the 
Foreign Assistance Act of 1961 or the Arms Export Control Act.

SEC. 513. DISADVANTAGED ENTERPRISES.

     (a) Funding Level.--
            (1) In general.--Except to the extent that the 
        administrator of the agency primarily responsible for 
        administering part I of the Foreign Assistance Act of 1961 
        (hereinafter in this section referred to as the 
        ``Administrator'' and the ``Agency'' respectively) determines 
        otherwise, not less than 10 percent of the aggregate amount 
        made available for each fiscal year for assistance under 
        chapter 1 of that part (relating to development assistance), 
        chapter 9 of that part (relating to international disaster 
        assistance), and chapter 10 of that part (relating to the 
        Development Fund for Africa) shall be made available only for 
        activities of United States organizations and individuals that 
        are--
                    (A) business concerns owned and controlled by 
                socially and economically disadvantaged individuals,
                    (B) historically black colleges and universities,
                    (C) colleges and universities having a student body 
                in which more than 40 percent of the students are 
                Hispanic American, and
                    (D) private voluntary organizations which are 
                controlled by individuals who are socially and 
                economically disadvantaged.
            (2) Report.--If for any fiscal year less than the amount 
        specified in paragraph (1) is used for the activities described 
        in that paragraph, the Administrator shall submit to the 
        Congress a report explaining why that amount was not so used.
    (b) Additional Actions.--
            (1) In general.--In addition to other actions taken to 
        carry out this section, the actions described in paragraphs (2) 
        through (5) shall be taken with respect to assistance under 
        chapter 1, chapter 9, and chapter 10 of part I of the Foreign 
        Assistance Act of 1961 for each fiscal year.
            (2) Authorities and procedures.--Notwithstanding any other 
        provision of law, in order to achieve the goals of this 
        section, the Administrator--
                    (A) to the maximum extent practicable, shall 
                utilize the authority of section 8(a) of the Small 
                Business Act (15 U.S.C. 637(a));
                    (B) to the maximum extent practicable, shall enter 
                into contracts with small business concerns owned and 
                controlled by socially and economically disadvantaged 
                individuals, and organizations described in 
                subparagraphs (B) through (D) of subsection (a)(1)--
                            (i) using less than full and open 
                        competitive procedures under such terms and 
                        conditions as the Administrator deems 
                        appropriate, and
                            (ii) using an administrative system for 
                        justifications and approvals that, in the 
                        Administrator's discretion, may best achieve 
                        the purpose of this section; and
                    (C) shall issue regulations to require that any 
                contract in excess of $500,000 contain a provision 
                requiring that no less than 10 percent of the dollar 
                value of the contract be subcontracted to entities 
                described in subsection (a)(1), except--
                            (i) to the extent the Administrator 
                        determines otherwise on a case-by-case or 
                        category-of-contract basis; and
                            (ii) this subparagraph does not apply to 
                        any prime contractor that is an entity 
                        described in subsection (a)(1).
            (3) Notice of advertising of contracts.--Each person with 
        contracting authority who is attached to the Agency's 
        headquarters in Washington, as well as all Agency missions and 
        regional offices, shall notify the Agency's Office of Small and 
        Disadvantaged Business Utilization at least seven business days 
        before advertising a contract in excess of $100,000.
            (4) Performance evaluations.--The Administrator shall 
        include, as part of the performance evaluation of any mission 
        director of the Agency, the mission director's efforts to carry 
        out this section.
            (5) Annual reports.--The Administrator shall submit to the 
        Congress annual reports on the implementation of this section. 
        Each such report shall specify the number and dollar value or 
        amount (as the case may be) of prime contracts, subcontracts, 
        grants, and cooperative agreements awarded to entities 
        described in subsection (a)(1) during the preceding fiscal 
        year.
    (c) Definition.--As used in this section, the term ``socially and 
economically disadvantaged individuals'' has the same meaning that term 
is given for purposes of section 8(d) of the Small Business Act, except 
that the term includes women.

SEC. 514. PROHIBITION ON SECURITY ASSISTANCE TO COUNTRIES THAT 
              CONSISTENTLY OPPOSE THE UNITED STATES POSITION IN THE 
              UNITED NATIONS GENERAL ASSEMBLY.

    (a) Prohibition.--Security assistance may not be provided to a 
country that consistently opposed the United States position in the 
United Nations General Assembly during the most recent session of the 
General Assembly.
    (b) Change in Government.--If--
            (1) the Secretary of State determines that, since the 
        beginning of the most recent session of the General Assembly, 
        there has been a fundamental change in the leadership and 
        policies of the government of a country to which the 
        prohibition in subsection (a) applies, and
            (2) the Secretary believes that because of that change the 
        government of that country will no longer consistently oppose 
        the United States position in the General Assembly,
the Secretary may submit to the Congress a request that the Congress 
enact an exemption from that prohibition for that country. Any such 
exemption shall be effective only until submission of the next report 
under section 406 of the Foreign Relations Authorization Act, Fiscal 
Years 1990 and 1991. Any request for such an exemption shall be 
accompanied by a discussion of the basis for the Secretary's 
determination and belief.
    (c) Waiver Authority.--The Secretary of State may waive the 
requirement of subsection (a) if the Secretary determines and reports 
to the Congress that despite the United Nations voting pattern of a 
particular country, the provision of security assistance to that 
country is necessary to promote United States foreign policy 
objectives.
    (d) Definitions.--As used in this section--
            (1) the term ``consistently opposed the United States 
        position'' means that the country's votes in the United Nations 
        General Assembly coincided with the United States position less 
        than 25 percent of the time, using for this purpose the overall 
        percentage-of-voting coincidences set forth in the annual 
        report submitted to the Congress pursuant to section 406 of the 
        Foreign Relations Authorization Act, Fiscal Years 1990 and 
        1991;
            (2) the term ``most recent session of the General 
        Assembly'' means the most recently completed plenary session of 
        the General Assembly for which overall percentage-of-voting 
        coincidences is set forth in the most recent report submitted 
        to the Congress pursuant to section 406 of the Foreign 
        Relations Authorization Act, Fiscal Years 1990 and 1991; and
            (3) the term ``security assistance'' means assistance 
        under--
                    (A) chapter 4 of part II of the Foreign Assistance 
                Act of 1961 (relating to the economic support fund),
                    (B) chapter 5 of part II of that Act (relating to 
                international military education and training), or
                    (C) the ``Foreign Military Financing Program'' 
                account under section 23 of the Arms Export Control 
                Act,
        except that the term does not include narcotics-related 
        assistance.
    (e) Effective Date.--This section takes effect upon submission to 
the Congress of the report pursuant to section 406 of the Foreign 
Relations Authorization Act, Fiscal Years 1990 and 1991, that is 
required to be submitted by March 31, 1994.

                      TITLE VI--BOSNIA-HERCEGOVINA

SEC. 601. SHORT TITLE.

    This title may be cited as the ``Bosnia-Hercegovina Self-Defense 
Act of 1993''.

SEC. 602. FINDINGS.

    The Congress makes the following findings:
            (1) On July 10, 1991, the United States adopted a policy 
        suspending all licenses and other approvals to export or 
        otherwise transfer defense articles and defense services to 
        Yugoslavia.
            (2) On September 25, 1991, the United Nations Security 
        Council adopted Resolution 713, which imposed a mandatory 
        international embargo on all deliveries of weapons and military 
        equipment to Yugoslavia.
            (3) The United States considered the policy adopted July 
        10, 1991, to comply fully with Resolution 713 and therefore 
        took no additional action in response to that resolution.
            (4) On January 8, 1992, the United Nations Security Council 
        adopted Resolution 727, which decided that the mandatory arms 
        embargo imposed by Resolution 713 should apply to any 
        independent states that might thereafter emerge on the 
        territory of Yugoslavia.
            (5) On February 29 and March 1, 1992, the people of Bosnia-
        Hercegovina voted in a referendum to declare independence from 
        Yugoslavia.
            (6) On April 7, 1992, the United States recognized the 
        Government of Bosnia-Hercegovina.
            (7) On May 22, 1992, the Government of Bosnia-Hercegovina 
        was admitted to full membership in the United Nations.
            (8) Consistent with Resolution 727, the United States has 
        continued to apply the policy adopted July 10, 1991, to 
        independent states that have emerged on the territory of the 
        former Yugoslavia, including Bosnia-Hercegovina.
            (9) Subsequent to the adoption of Resolution 727 and 
        Bosnia-Hercegovina's independence referendum, the seige of 
        Sarajevo began and fighting spread to other areas of Bosnia-
        Hercegovina.
            (10) The Government of Serbia intervened directly in the 
        fighting by providing significant military, financial, and 
        political support and direction to Serbian-allied irregular 
        forces in Bosnia-Hercegovina.
            (11) In statements dated May 1 and May 12, 1992, the 
        Conference on Security and Cooperation in Europe declared that 
        the Government of Serbia and the Serbian-controlled Yugoslav 
        National Army were committing aggression against the Government 
        of Bosnia-Hercegovina and assigned to them prime responsibility 
        for the escalation of bloodshed and destruction.
            (12) On May 30, 1992, the United Nations Security Council 
        adopted Resolution 757, which condemned the Government of 
        Serbia for its continued failure to respect the territorial 
        integrity of Bosnia-Hercegovina.
            (13) Serbian-allied irregular forces have, over the last 
        year, occupied approximately 70 percent of the territory of 
        Bosnia-Hercegovina, committed gross violations of human rights 
        in the areas they have occupied, and established a secessionist 
        government committed to eventual unification with Serbia.
            (14) The military and other support and direction provided 
        to Serbian-allied irregular forces in Bosnia-Hercegovina 
        constitutes an armed attack on the Government of Bosnia-
        Hercegovina by the Government of Serbia within the meaning of 
        Article 51 of the United Nations Charter.
            (15) Under Article 51, the Government of Bosnia-
        Hercegovina, as a member of the United Nations, has an inherent 
        right of individual or collective self-defense against the 
        armed attack from the Government of Serbia until the United 
        Nations Security Council has taken measures necessary to 
        maintain international peace and security.
            (16) The measures taken by the United Nations Security 
        Council in response to the armed attack on Bosnia-Hercegovina 
        have not been adequate to maintain international peace and 
        security.
            (17) Bosnia-Hercegovina has been unable successfully to 
        resist the armed attack from Serbia because it lacks the means 
        to counter heavy weaponry that Serbia obtained from the 
        Yugoslav National Army upon the dissolution of Yugoslavia, and 
        because the mandatory international arms embargo has prevented 
        Bosnia-Hercegovina from obtaining from other countries the 
        means to counter such heavy weaponry.
            (18) On December 18, 1992, with the affirmative vote of the 
        United States, the United Nations General Assembly adopted 
        Resolution 47/121, which urged the United Nations Security 
        Council to exempt Bosnia-Hercegovina from the mandatory arms 
        embargo imposed by Resolution 713.
            (19) In the absence of adequate measures to maintain 
        international peace and security, continued application to the 
        Government of Bosnia-Hercegovina of the mandatory international 
        arms embargo imposed by the United Nations Security Council 
        prior to the armed attack on Bosnia-Hercegovina undermines that 
        government's right of individual or collective self-defense and 
        therefore contravenes Article 51 of the United Nations Charter.
            (20) Bosnia-Hercegovina's right of self-defense under 
        Article 51 of the United Nations Charter includes the right to 
        ask for military assistance from other countries and to receive 
        such assistance if offered.

SEC. 603. UNITED STATES ARMS EMBARGO OF THE GOVERNMENT OF BOSNIA-
              HERCEGOVINA.

    (a) Termination.--The President may terminate the United States 
arms embargo of the Government of Bosnia-Hercegovina upon receipt from 
that government of a request for assistance in exercising its right of 
self-defense under Article 51 of the United Nations Charter.
    (b) Definition.--As used in this section, the term ``United States 
arms embargo of the Government of Bosnia-Hercegovina'' means the 
application to the Government of Bosnia-Hercegovina of--
            (1) the policy adopted July 10, 1991, and published in the 
        Federal Register of July 19, 1991 (58 Fed. Reg. 33322) under 
        the heading ``Suspension of Munitions Export Licenses to 
        Yugoslavia''; and
            (2) any similar policy being applied by the United States 
        Government, as of the date of receipt of the request described 
        in subsection (a), pursuant to which approval is routinely 
        denied for transfers of defense articles and defense services 
        to the former Yugoslavia.

SEC. 604. UNITED STATES MILITARY ASSISTANCE FOR BOSNIA-HERCEGOVINA.

    (a) Policy.--The President should provide appropriate military 
assistance to the Government of Bosnia-Hercegovina upon receipt from 
that government of a request for assistance in exercising its right of 
self-defense under Article 51 of the United Nations Charter.
    (b) Authorization of Military Assistance.--
            (1) Drawdown authority.--If the Government of Bosnia-
        Hercegovina requests United States assistance in exercising its 
        right of self-defense under Article 51 of the United Nations 
        Charter, the President is authorized to direct the drawdown of 
        defense articles from the stocks of the Department of Defense, 
        defense services of the Department of Defense, and military 
        education and training in order to provide assistance to the 
        Government of Bosnia-Hercegovina. Such assistance shall be 
        provided on such terms and conditions as the President may 
        determine.
            (2) Limitation on value of transfers.--The aggregate value 
        (as defined in section 644(m) of the Foreign Assistance Act of 
        1961) of defense articles, defense services, and military 
        education and training provided under this subsection may not 
        exceed $200,000,000.
            (3) Expiration of authorization.--The authority provided to 
        the President in paragraph (1) expires at the end of fiscal 
        year 1994.
            (4) Limitation on activities.--Members of the United States 
        Armed Forces who perform defense services or provide military 
        education and training outside the United States under this 
        subsection may not perform any duties of a combatant nature, 
        including any duties related to training and advising that may 
        engage them in combat activities.
            (5) Reports to congress.--Within 60 days after any exercise 
        of the authority of paragraph (1) and every 60 days thereafter, 
        the President shall report in writing to the Speaker of the 
        House of Representatives and the President pro tempore of the 
        Senate concerning the defense articles, defense services, and 
        military education and training being provided and the use made 
        of such articles, services, and education and training.
            (6) Reimbursement.--Defense articles, defense services, and 
        military education and training provided under this subsection 
        shall be made available without reimbursement to the Department 
        of Defense.

SEC. 605. AUTHORITY OF THE SECRETARY OF DEFENSE.

    (a) In General.--The Secretary of Defense shall determine the 
manner in which defense articles from the stocks of the Department of 
Defense and defense services and military education and training are 
drawn down from the Department of Defense under this title to provide 
assistance to the Government of Bosnia-Hercegovina. In making this 
determination, the Secretary of Defense shall, at a minimum, take into 
account the need to preserve the readiness of the armed forces of the 
United States.
    (b) Funding Through Regular Defense Appropriations.--
            (1) Replenishment of defense articles and resources.--
        Articles from defense stocks provided to the Government of 
        Bosnia-Hercegovina under this title, and resources expended 
        during the course of providing defense services and military 
        education and training to such Government under this title, 
        should be replenished.
            (2) Funding.--Any funds necessary to accomplish the 
        replenishment described in paragraph (1) should be authorized 
        and appropriated in defense authorization and appropriations 
        Acts.

                  TITLE VII--MISCELLANEOUS PROVISIONS

SEC. 701. DEPLOYMENT OF UNITED NATIONS TROOPS TO KOSOVO.

    The President shall direct the United States Representative to the 
United Nations to urge the Security Council to deploy United Nations 
troops to Kosovo, where their presence will have a positive and 
preventive influence in stopping and reversing Serbian repression.

SEC. 702. INCREASE IN CSCE OBSERVER MISSIONS IN KOSOVO.

    The President shall direct the United States representative to the 
Conference on Security and Cooperation in Europe (in this section 
referred to as the ``CSCE'') to urge the CSCE to increase the number of 
the permanent CSCE observer missions in Kosovo from 20 to at least 50.

            Passed the House of Representatives June 16, 1993.

            Attest:

                                           DONNALD K. ANDERSON,

                                                                 Clerk.

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