[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3765 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 3765

   To repeal the Foreign Assistance Act of 1961 and provide a policy 
 framework and authorities for programs to promote the prosperity and 
 security of the United States by supporting bilateral, multilateral, 
    and people-to-people partnerships for the advancement of market 
                        economies and democracy.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 2, 1994

Mr. Hamiltion (for himself and Mr. Gilman) (both by request) introduced 
  the following bill; which was referred to the Committee on Foreign 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
   To repeal the Foreign Assistance Act of 1961 and provide a policy 
 framework and authorities for programs to promote the prosperity and 
 security of the United States by supporting bilateral, multilateral, 
    and people-to-people partnerships for the advancement of market 
                        economies and democracy.

    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 ``Peace, Prosperity, and Democracy Act 
of 1994''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 3. Statement of Policy.
                    TITLE I--SUSTAINABLE DEVELOPMENT

             Chapter 1--Sustainable Development Authorities

Sec. 1101. Statement of policy.
Sec. 1102. Policies concerning sustainable development programs.
Sec. 1103. Voluntary cooperation in development.
Sec. 1104. Microenterprise and other credit programs.
Sec. 1105. Availability of funds.
                 Chapter 2--Development Fund for Africa

Sec. 1201. Sustainable development programs for sub-Saharan Africa.
                  Chapter 3--Role of Related Programs

Sec. 1301. Statement of policy regarding role of international 
                            financial institutions.
Sec. 1302. Statement of policy regarding role of Peace Corps.
Sec. 1303. Statement of policy regarding role of African Development 
                            and Inter-American Foundations.
Sec. 1304. Statement of policy regarding role of Public Law 480 
                            nonemergency title II and title III 
                            programs.
                      TITLE II--BUILDING DEMOCRACY

Sec. 2001. Findings and statement of policy.
                     Chapter 1--Promoting Democracy

                 Subchapter A--Countries in Transition

Sec. 2101. Authority.
Sec. 2102. Objectives and types of assistance.
Sec. 2103. Availability of funds; authorities.
      Subchapter B--Independent States of the Former Soviet Union

Sec. 2201. Statement of policy.
Sec. 2202. Availability of funds.
                Subchapter C--Central and Eastern Europe

Sec. 2301. Statement of policy.
Sec. 2302. Availability of funds.
                  Chapter 2--Information and Exchange

Sec. 2401. Policy.
                       TITLE III--PROMOTING PEACE

Sec. 3001. Statement of policy.
              Chapter 1--Peacekeeping and Related Programs

Sec. 3101. Statement of policy.
Sec. 3102. General authority.
Sec. 3103. Drawdown authorities.
            Chapter 2--Nonproliferation and Disarmament Fund

Sec. 3201. Statement of policy.
Sec. 3202. Provision of assistance.
Sec. 3203. Availability of funds.
Sec. 3204. Drawdown authorities.
      Chapter 3--Regional Peace, Security and Defense Cooperation

Sec. 3301. Statement of policy.
Sec. 3302. Authority and purposes.
Sec. 3303. Considerations in providing defense cooperation assistance.
Sec. 3304. Availability of funds.
  Chapter 4--International Narcotics Trafficking, Terrorism and Crime 
                               Prevention

Sec. 3401. Statement of policy.
Sec. 3402. Authorities.
Sec. 3403. Provisions related to anti-narcotics programs.
Sec. 3404. Provisions related to law enforcement training.
Sec. 3405. Waiver of certain restrictions on assistance.
Sec. 3406. Availability of funds.
              TITLE IV--PROVIDING HUMANITARIAN ASSISTANCE

Sec. 4001. Statement of policy.
                     Chapter 1--Refugee Assistance

Sec. 4101. Statement of policy and purposes.
Sec. 4102. Availability of funds.
                     Chapter 2--Disaster Assistance

Sec. 4201. Policy.
Sec. 4202. Authority to provide assistance.
Sec. 4203. Availability of funds.
                  Chapter 3--Emergency Food Assistance

Sec. 4301. Statement of policy regarding emergency food assistance 
                            under Public Law 480, title II.
         TITLE V--PROMOTING GROWTH THROUGH TRADE AND INVESTMENT

Sec. 5001. Statement of policy.
           Chapter 1--Overseas Private Investment Corporation

Sec. 5101. Purpose and policy.
Sec. 5102. Investment insurance, financing, and other programs.
Sec. 5103. Enhancing private political risk insurance industry.
Sec. 5104. Issuing authority and reserves.
Sec. 5105. Guidelines and requirements for OPIC support.
                Chapter 2--Trade and Development Agency

Sec. 5201. Purposes.
Sec. 5202. Authority to provide assistance.
Sec. 5203. Availability of funds.
                  Chapter 3--Role of Related Programs

Sec. 5301. Statement of policy regarding role of Public Law 480 title I 
                            programs.
Sec. 5302. Statement of policy regarding role of export-import bank.
                     TITLE VI--ADVANCING DIPLOMACY

Sec. 6001. Statement of policy.
Title VII--SPECIAL AUTHORITIES, RESTRICTIONS ON ASSISTANCE, AND REPORTS

                     Chapter 1--Special Authorities

Sec. 7101. Authority to transfer between accounts.
Sec. 7102. Special waiver authority.
Sec. 7103. Unanticipated contingencies.
Sec. 7104. Assistance for law enforcement agencies.
Sec. 7105. Termination expenses.
Sec. 7106. Exemption of assistance through nongovernmental 
                            organizations from restrictions.
Sec. 7107. Exemption of training activities from prohibitions.
Sec. 7108. Nonapplicability to defense assistance of certain neutrality 
                            act provisions.
Sec. 7109. Exemption from prohibitions for assistance to address 
                            certain special needs.
Sec. 7110. Authority to conduct reimbursable programs.
Sec. 7111. Drawdown authority.
Sec. 7112. Interest accruing to nongovernmental organizations.
Sec. 7113. Development education.
Sec. 7114. Strengthening the capacity of nongovernmental organizations, 
                            including research and educational 
                            institutions.
Sec. 7115. Violations of international humanitarian law.
Sec. 7116. Laws relating to contracts and government expenditures.
Sec. 7117. Transportation charges incurred by the Red Cross and 
                            nongovernmental organizations.
                 Chapter 2--Restrictions on Assistance

Sec. 7201. Ineligible countries.
Sec. 7202. Impact of foreign assistance programs on jobs in the United 
                            States.
Sec. 7203. Family planning activities.
Sec. 7204. Competition with United States exports.
Sec. 7205. Nuclear nonproliferation.
Sec. 7206. Major illicit drug producing and drug transit countries.
Sec. 7207. Assistance for elections.
Sec. 7208. Assignment of personnel.
Sec. 7209. Assistance limited to economic programs.
Sec. 7210. Impact of sustainable development assistance on environment 
                            and natural resources.
            Chapter 3--Reports and Notifications to Congress

Sec. 7301. Congressional presentation documents.
Sec. 7302. Human rights policy and reports.
Sec. 7303. International narcotics control report.
Sec. 7304. Annual allocation report.
Sec. 7305. Notification of program changes.
Sec. 7306. Evaluation and monitoring of program performance.
                     TITLE VIII--GENERAL PROVISIONS

           Chapter 1--Exercise and Coordination of Functions

Sec. 8101. Delegations by the President.
Sec. 8102. Role of the Secretary of State.
Sec. 8103. The Secretary of Defense.
Sec. 8104. United States Agency for International Development.
Sec. 8105. The Director of the Arms Control and Disarmament Agency.
Sec. 8106. Authority to establish offices abroad.
Sec. 8107. Presidential findings and determinations.
                 Chapter 2--Administrative Authorities

                   Subchapter A--General Authorities

Sec. 8201. Allocation of funds and reimbursement among agencies.
Sec. 8202. General authorities.
Sec. 8203. Authorized administrative uses of funds.
     Subchapter B--Department of Defense Administrative Authorities

Sec. 8211. Administrative expenses.
Sec. 8212. End use and retransfer assurances.
Sec. 8213. Approval of third country transfers.
Sec. 8214. Exchange training.
      Chapter 3--Special Requirements and Authorities Relating to 
                  Appropriations and Local Currencies

          Subchapter A--Provisions Relating to Appropriations

Sec. 8301. Requirement for authorization of appropriations.
Sec. 8302. Authority for extended period of availability of 
                            apropriations.
Sec. 8303. Reduction in earmarks.
Sec. 8304. Obligation upon apportionment.
                     Subchapter B--Local Currencies

Sec. 8311. Use of certain foreign currencies.
Sec. 8312. Interest on United States owned foreign currency proceeds.
           Chapter 4--Procurement and Disposition of Articles

Sec. 8401. Use of private enterprise.
Sec. 8402. Procurement standards and procedures.
Sec. 8403. Shipping on United States vessels.
Sec. 8404. Excess and other available property.
Sec. 8405. Grant transfers of excess defense articles.
Sec. 8406. Stockpiling of defense articles for foreign countries.
Sec. 8407. Location of stockpiles.
Sec. 8408. Additions to war reserve stocks.
Sec. 8409. Retention and use of certain items and funds.
            Chapter 5--Personnel and Administrative Expenses

                         Subchapter A--General

Sec. 8501. Statutory officers in the United States agency for 
                            international development.
Sec. 8502. Employment of personnel.
Sec. 8503. Experts, consultants, and retired officers.
Sec. 8504. Detail of personnel to foreign governments and international 
                            organizations.
Sec. 8505. Head of offices abroad.
Sec. 8506. Chairman of OECD development assistance committee.
Sec. 8507. Assignment of DOD personnel to civil offices.
Sec. 8508. Discrimination against United States personnel providing 
                            assistance.
Sec. 8509. Availability of funds for operating expenses generally.
Sec. 8510. Availability of funds for operating expenses of the 
                            Inspector General.
Sec. 8511. Availability of funds.
   Subchapter B--Overseas Management of Assistanceand Sales Programs 
             Administered Through the Department of Defense

Sec. 8521. Authorized functions.
Sec. 8522. Costs.
Sec. 8523. Role of chief of mission.
 Subchapter C--Administrative Provisions for the Trade and Development 
                                 Agency

Sec. 8531. Director and personnel.
Sec. 8532. Audits.
Sec. 8533. Annual report.
   Subchapter D--Administrative Provisions for the Overseas Private 
                         Investment Corporation

Sec. 8541. Stock of the corporation.
Sec. 8542. Organization and management.
Sec. 8543. Income and revenues.
Sec. 8544. General provisions relating to insurance and financing 
                            program.
Sec. 8545. General provisions and powers.
Sec. 8546. Annual report; maintenance of information.
Sec. 8547. Definitions.
         Subchapter E--Definitions and Miscellaneous Provisions

Sec. 8551. Definitions.
Sec. 8552. Activities under other laws not affected.
             TITLE IX--TECHNICAL AND CONFORMING PROVISIONS

Sec. 9101. Effective date.
Sec. 9102. Savings provisions.
Sec. 9103. Miscellaneous provisions.
Sec. 9104. Conforming and other amendments.
Sec. 9105. Transition rules for military assistance.
Sec. 9106. Repeal of obsolete provisions.

SEC. 3. STATEMENT OF POLICY.

    Statement of Policy.--
            (1) The people of the United States are embarking on a new 
        era of domestic renewal that will draw strength through 
        expanding cooperation abroad to advance United States economic 
        and political interests and to meet the challenges of a new 
        century.
            (2) The interests of the United States are best served by a 
        community of nations that respects individual human rights and 
        democracy, resolves conflicts peacefully, engages in free and 
        open trade, uses the world's limited natural resources in a 
        sustainable manner, and in which fundamental human needs are 
        met.
            (3) Sustainable development is in the long-term interest of 
        the United States because without such development, economic, 
        political and security problems will multiply and generate 
        future costs and burdens; and because overpopulation and 
        environmental destruction threaten to undercut the best efforts 
        of nations to build peace and prosperity.
            (4) Strengthening democracy and human rights advances 
        United States interests: democracies are conducive to free 
        markets; they are more reliable partners, more receptive to 
        cooperation in environmental protection and other global 
        problems, and less prone to wage war on each other or sponsor 
        terrorism. Strengthening democracy is especially critical to 
        achieving what must remain an overriding goal of the United 
        States: helping to create a world in which respect for human 
        rights and fundamental freedoms can flourish.
            (5) In this new era of more diffuse challenges to the 
        security of the United States, the United States recognizes the 
        need to maintain and restore peace through arms control, 
        nonproliferation, regional peace processes, and collective 
        defense efforts, and for continued vigilance against a wide-
        range of increasingly transnational security challenges, 
        including international narcotics trafficking, terrorism and 
        other international crime that affect the personal safety of 
        the people of the United States.
            (6) United States Government support for efforts to 
        alleviate suffering and help people help themselves reflects 
        the ideals of the people of the United States who have a long 
        and unequaled record of responding quickly and substantially to 
        humanitarian crises caused by natural and manmade disasters.
            (7) An open and growing world trading system will benefit 
        United States workers through expanding global markets and 
        create a more prosperous and secure world. Promotion of broad-
        based economic growth in developing countries is an important 
        means for expanding the fastest growing markets for United 
        States exports.
            (8) Diplomacy effectively advances United States security 
        and prosperity, meets long-term global challenges, and builds 
        cooperative arrangements with allies and multilateral 
        organizations.
            (9) Foreign assistance programs are in the national 
        interest of the United States, and to meet the diverse 
        challenges of a new century, the United States must command a 
        full range of creative foreign policy tools to shape a 
        comprehensive, long-term approach to promoting the United 
        States national interests reflected in the objectives of this 
        Act: Promoting Sustainable Development, Building Democracy, 
        Promoting Peace, Providing Humanitarian Assistance, Promoting 
        Growth Through Trade and Investment, and Advancing Diplomacy.

                    TITLE I--SUSTAINABLE DEVELOPMENT

             Chapter 1--Sustainable Development Authorities

SEC. 1101. STATEMENT OF POLICY.

    Statement of Policy.--
            (1) United States prosperity and security in the Twenty-
        first Century will depend on the successful pursuit of global 
        sustainable development based on an abiding commitment to 
        democratic, free-market principles.
            (2) The transnational threats of persistent poverty, global 
        environmental degradation and rapid population growth threaten 
        to undercut the best efforts of the world community to ensure a 
        more prosperous and peaceful future. Addressing these threats 
        will require, among other things, an appropriate mix of people-
        to-people, bilateral and multilateral assistance to complement 
        local action.
            (3) The people of the United States have long demonstrated 
        a moral commitment to help those in need and to provide 
        assistance that reflects the traditional humanitarian ideals of 
        the people of the United States.
            (4) The promotion of long-term, equitable, and 
        environmentally sustainable development can help to prevent 
        humanitarian crises and to reduce the vulnerability of people, 
        particularly children, to natural and manmade disasters, which 
        are costly in terms of both human life and financial resources.
            (5) United States support for people-to-people, bilateral 
        and multilateral sustainable development programs must, 
        therefore, be targeted on broad-based, economic growth that 
        reduces hunger and poverty, protects the environment, enhances 
        human capabilities, upholds democratic values, and improves the 
        quality of life for current generations while preserving that 
        opportunity for future generations through, among other things, 
        helping the poor majority of women, men, and children in 
        developing countries participate in the development process.
            (6) Sustainable development efforts will be significantly 
        enhanced through the broad participation and active engagement 
        of the United States-based private sector, including 
        universities, labor unions, and private voluntary 
        organizations, and the people of each nation as producers, 
        workers, and citizens of their communities, in shaping 
        development policies and in defining, implementing, and 
        evaluating programs and projects.
            (7) The ultimate measure of success of programs under this 
        title is to reach a point where improvements in the quality of 
        life and the environment are such that assistance is no longer 
        necessary and can be replaced by new forms of diplomacy, 
        cooperation and commerce.

SEC. 1102. POLICIES CONCERNING SUSTAINABLE DEVELOPMENT PROGRAMS.

    (a) Purposes of Sustainable Development Programs.--The promotion of 
sustainable development is in the long-term interests of the United 
States. Sustainable development signifies broad-based, economic growth 
which protects the environment, enhances human capabilities, upholds 
democratic values, and improves the quality of life for current 
generations while preserving that opportunity for future generations. 
The objectives of sustainable development are pursued by supporting the 
self-help efforts of people in developing countries to implement sound 
policies that increase self-reliance, equity, and productive capacity, 
to invest in their people, and build effective and accountable 
indigenous political, economic and social institutions.
    (b) Sustainable Development Objectives.--The purposes described in 
subsection (a) can best be achieved through a balanced, participatory 
and comprehensive cooperation program targeted on the following four 
inter-dependent objectives--
            (1) Encouraging broad-based economic growth.--
                    (A) Rationale.--Broad-based economic growth 
                signifies equitable and inclusive economic expansion in 
                developing countries. Such growth is in the economic, 
                political, and strategic interests of the United States 
                because it permits countries to progress toward 
                economic self-reliance, improve the living standards of 
                their citizens, reduce the incidence of poverty, 
                promote food security and nutritional well-being, slow 
                population growth, and increase opportunities for 
                mutually beneficial international trade and investment. 
                Broadly-based economic progress also improves the 
                prospects for the spread of democracy and political 
                pluralism. Economic stagnation or narrowly based-
                economic growth may fuel political instability and 
                threaten international security and cooperation.
                    (B) Objective.--Broadly-based, sustainable growth 
                requires, in addition to sound economic policies:
                            (i) investments in people, particularly 
                        poor people, in the form of health, nutrition, 
                        education, shelter and other critical social 
                        services;
                            (ii) a broader role for and access to 
                        markets for both women and men through improved 
                        policies that protect and advance economic 
                        rights for all citizens without regard to 
                        gender, race, religion, language or social 
                        status, increase self-reliance in meeting basic 
                        needs, and raise real incomes for poor people;
                            (iii) stronger and more accountable public 
                        and private institutions at the local and 
                        national level, and sound public investments;
                            (iv) enhanced food security, including 
                        improved access to safe food and adequate 
                        nutrition through sustainable improvements in 
                        agriculture and post-harvest food preservation;
                            (v) sound debt management, including 
                        responsible relief as appropriate;
                            (vi) investments in people's productive 
                        capabilities, including measures to upgrade 
                        people's technical and managerial knowledge and 
                        skills; and
                            (vii) measures to ensure that the poor have 
                        access to productive resources, including 
                        affordable and resource-conserving 
                        technologies, technical as well as market-
                        related information, and credit, especially for 
                        small farms, small and micro-enterprises, and 
                        the poorest self-employed sector, and 
                        otherwise, fully participate in the benefits of 
                        growth in employment and income.
            (2) Protecting the global environment.--
                    (A) Rationale.--The economic and social well-being 
                and the security of the United States, indeed the 
                health of our citizens, depend critically on the global 
                environment and physical resource base. Consumption 
                patterns, systems of industrial and agricultural 
                production, demographic trends, and use of natural 
                resources directly affect the sustainability of long-
                term development and growth, and of the ecosystem. 
                Development that does not take account of its 
                environmental consequences will not be economically 
                sustainable in the long run. Improved resource 
                management is a critical element of a balanced pattern 
                of development. Both developed and developing countries 
                share responsibility to present and future generations 
                for the rational and sustainable management of natural 
                resources and for environmental protection. Developing 
                countries not only suffer from the consequences of 
                environmental degradation, but also contribute to that 
                degradation as they struggle to meet the basic needs of 
                their people. Therefore, environmental sustainability 
                cannot be secured without reducing poverty, nor can 
                poverty be eliminated without sustainable management of 
                the natural resource base.
                    (B) Objective.--Sustainable development programs 
                authorized by this chapter should address the root 
                causes of environmental harm, promote environmentally-
                sound patterns of growth and support improved 
                management of natural resources and protection of the 
                environment. These activities shall include efforts to 
                address urgent global environmental challenges, 
                including the loss of biological diversity and global 
                climate change, as well as efforts to address 
                significant environmental problems within countries and 
                regions. Such efforts shall seek to promote sound 
                environmental policies and practices which 
                simultaneously enhance long-term economic growth.
            (3) Supporting democratic participation.--
                    (A) Rationale.--It is in the national interest of 
                the United States and in keeping with our democratic 
                traditions to support democratic aspirations and 
                values, foster the spread of enduring democratic 
                institutions, and encourage universal respect for civil 
                and human rights. The establishment of local 
                governance, civil society and democratic institutions, 
                including business associations and labor unions, is an 
                essential element of the ability of nations to sustain 
                development efforts.
                    (B) Objective.--Sustainable development programs 
                must help to build and strengthen organizations and 
                institutions that foster participation in economic and 
                political decisionmaking at the local and national 
                levels. Such programs shall help promote: respect for 
                human rights and the rule of law; an expanding role for 
                nongovernmental and citizens organizations and their 
                capacity to effectively participate in political and 
                economic decisionmaking and to implement development 
                programs; means to enhance citizen access to public 
                information; the ability of all citizens to choose 
                freely their government and to hold that government 
                accountable for its actions; efforts which advance 
                legal, social, and economic equality for women, 
                workers, and minorities; respect for the rights of 
                women, workers, and minorities; and principles of 
                tolerance among and within religious and ethnic groups.
            (4) Stabilizing world population growth.--
                    (A) Rationale.--Excessive population growth rates, 
                among other factors, aggravates poor health, 
                perpetuates poverty, and inhibits saving and 
                investment, particularly investments in people in the 
                form of basic health, child survival, and education 
                services. Continued excessive growth in world 
                population rates will undercut sustainable development 
                efforts. Unsustainable population growth is directly 
                tied to degradation of the natural resource base and 
                the environment and contributes to economic stagnation 
                and political instability. The problems associated with 
                excessive population growth are interrelated with 
                economic and social inequities, particularly the low 
                status of women, and patterns of resource consumption. 
                Excessive population growth impedes development and 
                retards progress on global issues of direct concern to 
                the United States.
                    (B) Objective.--The primary objectives are: to 
                reduce population growth to rates that are consistent 
                with sustainable, broadly-based development, to provide 
                women and men with the means to freely and responsibly 
                choose the number and spacing of their children, and to 
                contribute to improved reproductive health. This calls 
                for a focus on enhanced access to and quality of 
                voluntary family planning services and reproductive 
                health care. This also calls for strong and sustained 
                programs in child survival and the prevention of HIV/
                AIDS. Improvement of female education and raising the 
                economic and social status of women, carried out within 
                the context of encouraging broad-based economic growth, 
                are particularly important complementary activities 
                that contribute to these objectives.
    (c) Principles.--To achieve the objectives of this section, 
sustainable development programs authorized by this chapter shall be 
carried out in accordance with the following principles--
            (1) Popular participation.--
                    (A) In general.--Sustainable development depends 
                for its success on the empowerment of people to make 
                political and economic decisions. Participation, in the 
                form of active involvement of program participants in 
                the identification, design, implementation, and 
                evaluation of development programs is critical to the 
                success of those programs. Therefore, assistance under 
                this chapter should incorporate the local-level 
                perspectives of all participants, especially the rural 
                and urban poor and women, in the identification, 
                design, implementation, and evaluation of projects, 
                programs, and development policies, as well as in the 
                design of country assistance strategies and overall 
                strategic objectives.
                    (B) Role of women in the development process.--The 
                expansion of women's opportunities is essential to 
                reduce poverty, lower population growth and bring about 
                effective and sustainable development. The active 
                involvement of women in economic, political, and social 
                activities is necessary to promote democracy and to 
                assure sustainable development. Women, including local 
                and indigenous women's groups, must be involved as 
                agents as well as beneficiaries of change in all 
                aspects of the development process. Women, therefore, 
                should be integrally involved in policies, programs, 
                and projects undertaken to achieve the objectives and 
                purposes of this section.
                    (C) Nongovernmental organizations.--For development 
                to be broad-based and sustainable, it is imperative to 
                consult with, and fully engage in the policy and 
                program planning process, nongovernmental organizations 
                representative of, and knowledgeable about, local 
                people and their interests. Nongovernmental 
                organizations, including private voluntary 
                organizations, cooperatives and credit unions, labor 
                unions, women's groups, and indigenous local 
                organizations, should be fully utilized in meeting the 
                objectives and purposes of this section through, among 
                other things, regular involvement in the formulation of 
                development strategies for countries and sectors.
                    (D) Utilization of united states institutional 
                capabilities.--Programs undertaken to achieve the 
                sustainable development objectives of this chapter 
                should recognize and take advantage of--
                            (i) United States capabilities in science 
                        and technology;
                            (ii) access to education and training in 
                        United States colleges, universities, and 
                        technical training facilities; and
                            (iii) United States public sector 
                        expertise. This may be encouraged through, 
                        among other things, long-term collaboration 
                        between public and private institutions of 
                        science, technology, and education in the 
                        United States and developing countries.
            (2) Managing for results.--
                    (A) In general.--Assistance cannot substitute for a 
                developing country's own efforts to improve the lives 
                of its people, nor can the United States afford to 
                provide assistance which does not yield enduring 
                results in terms of improving the lives of the poor, 
                encourage a stable and prosperous global order, and 
                contribute to the interests of the people of the United 
                States.
                    (B) Country requirements.--Sustainable development 
                programs under this chapter shall be concentrated in 
                countries that have a demonstrated need for such 
                programs, that will make effective use of such 
                programs, and that have a commitment to achieving clear 
                development objectives. Indicators of such countries 
                include the extent to which: there is a high incidence 
                of hunger and poverty, there is an enabling environment 
                in which government economics and sound policies are 
                conducive to accomplishing the sustainable development 
                objectives contained in subsection (b) of this section, 
                government decisionmaking is transparent, government 
                institutions are accountable to the public, an 
                independent and honest judiciary is maintained, local 
                government bodies are democratically elected, and 
                political parties, nongovernmental organizations and 
                the media operate without undue constraints.
                    (C) Measuring results.--The United States 
                assistance program under this chapter will assess the 
                commitment and progress of countries in moving toward 
                the sustainable development objectives contained in 
                subsection (b) of this section and the contributions 
                made to this progress by assistance provided under this 
                chapter. The United States will establish open and 
                transparent systems to monitor these results, and will 
                be prepared to shift scarce resources from unproductive 
                programs, sectors or countries to those which have 
                demonstrated the commitment and ability to use them 
                effectively.
                    (3) International coordination.--The United States 
                shall seek wherever possible to coordinate its 
                sustainable development program with other bilateral 
                and multilateral donors, as well as with the private 
                sector, in order to maximize the effectiveness of 
                resources allocated to sustainable development.

SEC. 1103. VOLUNTARY COOPERATION IN DEVELOPMENT.

    (a) Statement of Policy.--
            (1) The sustained participation of United States private 
        voluntary organizations, labor unions, cooperatives, and credit 
        unions that are engaged in activities that are relevant to the 
        development needs of developing countries serves as an 
        important means of improving the lives of the poor in those 
        countries and enhances the likelihood that the goals of this 
        title will be attained.
            (2) The sustained participation of United States and 
        overseas cooperatives and credit unions provides an opportunity 
        for people in developing countries to participate directly in 
        democratic decisionmaking for their economic and social benefit 
        through ownership and control of business enterprises and 
        through the mobilization of local capital and saving. These 
        organizations should be utilized in fostering democracy, free 
        markets, self-help, and community-based development.
            (3) Similarly, sustained participation of United States 
        colleges and universities in the economic development programs 
        of the developing countries and the building of indigenous 
        university systems that support the educational, research, and 
        service needs of their societies is vital to their achieving 
        sustainable economic growth and open democratic political 
        systems and, at the same time, supports the 
        internationalization of United States educational institutions 
        by strengthening their faculty and the programs available to 
        their students.
            (4) Such sustained participation would be enhanced through 
        provisions within the United States Agency for International 
        Development to provide such organizations and institutions with 
        the opportunity to participate in the planning, development, 
        implementation, and evaluation of programs that involve those 
        organizations and institutions.
    (b) Partnership Relationship.--The President is encouraged to 
establish a formal, effective, and continuing partnership relationship 
with private voluntary organizations, cooperatives, and credit unions 
which have experience in working in developing countries, and with 
United States colleges and universities, with the objective of 
enhancing attainment of the goals set forth in this title. Individuals 
who are from such organizations and institutions and who have expertise 
and administrative experience in programs relevant to the development 
needs of developing countries should be consulted on a regular basis so 
as to bring their expertise to bear on those objectives.
    (c) American Schools and Hospitals.--The President is authorized to 
use funds made available to carry out the provisions of this Act for 
support of--
            (1) schools and libraries, outside the United States, that 
        are sponsored by United States citizens and serve as study and 
        demonstration centers for ideas and practices of the United 
        States, and
            (2) hospital centers for medical education and research, 
        outside the United States, that are sponsored by United States 
        citizens,
where such support is in furtherance of the objectives of this title.

SEC. 1104. MICROENTERPRISE AND OTHER CREDIT PROGRAMS.

    Credit resources can be a cost-effective tool in fostering 
sustainable development where borrowers and projects are creditworthy 
and where the costs of such credit assistance are capable of being 
reasonably estimated. Subject to section 8202(i), the President is 
authorized to provide assistance for credit programs in furtherance of 
the sustainable objectives, as follows:
            (1) Micro- and small enterprise development.--To promote 
        the full participation in a country's economy by all members of 
        society through increased access to formal financial markets.
            (2) Shelter, urban development, and environmental 
        infrastructure.--To address needs for shelter, urban services 
        and facilities, and urban environmental management systems, 
        including water treatment and waste disposal systems.
            (3) Other projects and programs.--To carry out other 
        purposes of this chapter that can be met with credit resources.

SEC. 1105. AVAILABILITY OF FUNDS.

    The President is authorized to carry out programs in support of the 
sustainable development objectives of this chapter. Funds shall be 
available to carry out the provisions of this chapter as authorized and 
appropriated to the President each fiscal year.

                 Chapter 2--Development Fund for Africa

SEC. 1201. SUSTAINABLE DEVELOPMENT PROGRAMS FOR SUB-SAHARAN AFRICA.

    (a) Statement of Policy.--
            (1) Sub-Saharan Africa faces serious obstacles to 
        sustainable development, including high levels of poverty, high 
        levels of disease burden especially tropical diseases and HIV/
        AIDS, environmental degradation, high population growth rates 
        and, in some countries, civil conflicts that threaten the 
        welfare of millions of people.
            (2) Sub-Saharan Africa is also undergoing significant but 
        fragile economic, social, and political change, including 
        economic reforms and transition to democracies, which hold 
        promise of progress in sustainable development.
            (3) Sub-Saharan Africa possesses numerous species, as well 
        as major forest reserves, which will become increasingly 
        threatened in the absence of sustainable development.
            (4) The challenges facing sub-Saharan Africa require a 
        steady, long-term approach to development, and therefore the 
        purpose of the Development Fund for Africa shall continue to be 
        to help the poor majority of men and women in sub-Saharan 
        Africa to participate in a process of long-term development 
        through economic growth that is equitable, participatory, 
        environmentally sustainable and self-reliant.
            (5) Experience has shown that in order to be effective and 
        sustainable, assisted development projects and programs must be 
        based on local consultation and involvement.
            (6) By addressing the broad sustainable development 
        objectives of encouraging broad-based economic growth, reducing 
        excessive population growth rates, preserving the environment, 
        and strengthening democratic governance and expanding popular 
        participation, programs for sub-Saharan Africa can directly 
        improve the lives of the poor majority of Africans.
    (b) Local Perspectives.--In carrying out sustainable development 
programs for sub-Saharan Africa, the local-level perspectives of the 
rural and urban poor, including women, in sub-Saharan Africa shall be 
taken into account during the planning process for project and program 
assistance.
    (c) Availability of Funds.--Funds appropriated to carry out the 
provisions of chapter 1 for sustainable development programs may be 
made available, in accordance with the provisions of that chapter, to 
carry out such programs for sub-Saharan Africa.
    (d) Relationship to Certain Provisions of Law.--Assistance may be 
furnished for activities under this chapter notwithstanding sections 
7201(a)(7) and 8402 of this Act, and any similar provisions of law.

                  Chapter 3--Role of Related Programs

SEC. 1301. STATEMENT OF POLICY REGARDING ROLE OF INTERNATIONAL 
              FINANCIAL INSTITUTIONS.

    (1) By fostering sound macroeconomic policies, the international 
financial institutions--
            (A) further the interest of the United States in a free, 
        open, and stable international economic and financial system; 
        and
            (B) encourage developing countries to participate more 
        fully in the world economy, thus expanding the opportunities 
        for United States exports and investment.
    (2) At the same time, structural and sectoral level reforms 
supported by the international financial institutions, and programs 
aimed at addressing such problems as basic education, environmental 
protection, health, and population, should reinforce the goals of 
United States sustainable development programs.
    (3) The increasing coordination of the activities of the 
international financial institutions with those of bilateral assistance 
programs provides an opportunity for those institutions to be informed 
of local perspectives, priorities, and capabilities best gained through 
decentralized, consultative processes.
    (4) The United States should give priority to developing an 
international consensus on good governance, accountability and 
transparency, the rule of law, and public participation as central to 
the development process.
    (5) The ability of international financial institutions to serve 
these ends depends on maintenance of strong United States influence in 
them and fulfillment of United States financial commitments.

SEC. 1302. STATEMENT OF POLICY REGARDING ROLE OF PEACE CORPS.

    (1) The purposes of the Peace Corps, as set forth in the Peace 
Corps Act, are consistent with a fundamental objective of this Act--to 
broaden the participation of people in developing countries in the 
economic and social life of their countries.
    (2) The benefits provided by both the sustainable development 
programs authorized by this Act and programs authorized by the Peace 
Corps Act will be enhanced by collaboration that, while not infringing 
on the traditional autonomy of the Peace Corps, recognizes that the 
ability of the Peace Corps to address issues of concern to the people 
of developing countries at the grassroots level complements the 
programs authorized by this Act.

SEC. 1303. STATEMENT OF POLICY REGARDING ROLE OF AFRICAN DEVELOPMENT 
              AND INTER-AMERICAN FOUNDATIONS.

    (1) The purposes of the Inter-American Foundation and the African 
Development Foundation as set forth in sections 401(b) and 504 of their 
respective Acts are consistent with fundamental premises of sustainable 
development programs, such as the need to expand the participation of 
individuals in social and economic institutions so that they have a 
stake in the resolution of social and economic issues.
    (2) Both Foundations have demonstrated that sustainable development 
may be fostered at the local level by responding to the expressed needs 
of the people who live and work in the local community, and providing 
them with the means to carry out their own development initiatives.
    (3) By working at the grassroots level to enhance incomes, expand 
social benefits, and encourage increased participation, the programs of 
the African Development Foundation and the Inter-American Foundation, 
while independent, are part of an overall framework of support for 
developing countries which aims to see sustainable development occur at 
the local and the national levels.

SEC. 1304. STATEMENT OF POLICY REGARDING ROLE OF PUBLIC LAW 480 NON-
              EMERGENCY TITLE II AND TITLE III PROGRAMS.

    Statement of Policy.--
            (1) The use of United States agricultural commodities 
        through the Public Law 480 non-emergency title II program, 
        serves the dual purposes of supporting the efforts of poor 
        countries to meet their need for additional food resources 
        while at the same time promoting the long-term sustainable 
        development efforts of those countries.
            (2) By giving priority through the Public Law 480 title III 
        program to those least developed, food deficit countries with 
        high levels of malnutrition that have long-term plans for 
        broad-based equitable and sustainable development and a 
        demonstrated commitment and capacity to use food assistance 
        effectively, these programs show a consistency of purpose with 
        the sustainable development programs authorized by this Act.

                      TITLE II--BUILDING DEMOCRACY

SEC. 2001. FINDINGS AND STATEMENT OF POLICY.

    (a) Findings.--
            (1) There is a growing worldwide movement toward more open, 
        just and democratic societies. This trend is essential to 
        achieving the United States ultimate objective of worldwide 
        respect for human rights and fundamental freedoms without 
        distinction as to race, sex, language or religion. At the same 
        time, this trend holds great promise for promoting the peace of 
        the world and the foreign policy, security, and general welfare 
        of the United States.
            (2) Expansion of democratic values and systems must be 
        promoted through bilateral, multilateral, and people-to-people 
        programs with the sustained assistance and moral support of the 
        international community, and of the established democracies in 
        particular.
            (3) Democratic development takes time to take root in 
        society and in the political system. There is a need for the 
        international community to assist in the consolidation of 
        democratic values, practices and institutions to prevent the 
        reversal of democratic trends.
            (4) Frequently, newly democratizing countries are beset by 
        ethnic conflicts, resurgent nationalism and anti-democratic 
        movements, and political reaction to economic reform. A growing 
        number of countries seek to end years of protracted internal 
        conflict through the implementation of internationally-
        sanctioned political settlements, designed to create a 
        democratic form of governance, a durable peace, and the 
        institutional requisites for long-term development.
            (5) Furthermore, democratic institutions in countries where 
        democracy has taken root can be similarly threatened by 
        regional and civil unrest, and other threats to international 
        peace and security.
            (6) Narcotics trafficking, terrorism and other forms of 
        international crime--and the corruption that they engender of 
        political, administrative and other democratic institutions--
        pose similar threats to such countries, and efforts to combat 
        these scourges need to be integrated into and coordinated with 
        broader efforts to develop and consolidate democratic 
        institutions.
            (7) To advance, countries in such circumstances may require 
        international assistance not normally included in humanitarian 
        relief programs, peacekeeping operations, or long-term 
        development programs, and the international community needs to 
        be able to respond swiftly to meet such needs.
            (8) Failure by the United States to respond effectively to 
        threats to democracy and human rights abroad could risk 
        important United States interests, jeopardize substantial 
        savings in United States defense that a more democratic and 
        predictable world will bring, imperil United States investments 
        and economic reforms that will result in trade and economic 
        benefits to the United States, and heighten the risk that many 
        transitions might ultimately fail and generate costly 
        humanitarian emergencies.
            (9) Accordingly, the United States must have the capacity 
        to respond rapidly, effectively, and in an integrated fashion 
        to the new opportunities and challenges associated with 
        democratic development.
    (b) Statement of Policy.--
            (1) In addition to promoting strong democratic societies as 
        an integral part of the sustainable development programs 
        authorized under title I of this Act, it should be the policy 
        of the United States to assist countries making the transition 
        to democracy, and countries where democratic gains are 
        threatened, by providing timely assistance in building 
        effective democratic institutions and free market economies.
            (2) At the same time, the promotion of democracy is the 
        responsibility of the global community. The United States 
        should give priority to working bilaterally and multilaterally 
        to ensure commitment of substantial resources toward the 
        promotion of democracy in transitional countries, and to 
        coordinating policies and programs among institutions and 
        donors.

                     Chapter 1--Promoting Democracy

                 Subchapter A--Countries in Transition

SEC. 2101. AUTHORITY.

    The President may provide assistance under this subchapter for 
countries--
            (1) that have recently emerged or are in the process of 
        emerging as democratic societies; or
            (2) that have recently emerged or are emerging from civil 
        strife and either have a democratically-elected government or 
        are making progress toward developing a democratic form of 
        government; or
            (3) where democratic progress or institutions are 
        threatened.

SEC. 2102. OBJECTIVES AND TYPES OF ASSISTANCE.

    (a) Objectives.--Programs under this subchapter should be designed 
to facilitate the worldwide trend toward more open, just and democratic 
societies, and may include programs to--
            (1) promote the development of functioning democratic 
        institutions and political pluralism, including programs to 
        facilitate--
                    (A) establishment of fully democratic and 
                representative political systems based on free and fair 
                elections that permit multi-party participation;
                    (B) protection of basic human rights and 
                fundamental liberties and individual freedoms including 
                freedom of speech, religion and association, access to 
                information and public participation in decisionmaking;
                    (C) development of legal, legislative, 
                constitutional, electoral, journalistic, educational, 
                and other institutions, both governmental and 
                nongovernmental which are essential elements of civil 
                society in free pluralistic societies;
                    (D) establishment and professional development of 
                non-partisan military, security and police forces, 
                accountable to civil authorities;
                    (E) development of intercommunal conflict 
                resolution mechanisms; and
                    (F) strengthening of policy making skills and 
                accountability of democratic governments.
            (2) address political, economic and humanitarian needs that 
        arise in connection with transitions, or that if unmet 
        undermine or threaten democratic institutions; and
            (3) help meet security challenges on a transitional basis 
        that threaten to impede or reverse democratic reforms or 
        institutions.
    (b) Assistance may only be provided to military or law enforcement 
forces under this subchapter--
            (1) to orient militaries or law enforcement agencies to 
        their respective roles in a democratic order, including through 
        training, contacts with counterparts in established 
        democracies, and other programs designed to enhance respect for 
        human rights and understanding of principles of civilian 
        control in a democratic society;
            (2) to enhance the practical accountability of law 
        enforcement agencies to civil justice institutions;
            (3) to promote demilitarization of society, through 
        programs aimed at demobilization, down-sizing, and 
        rationalization and professionalization of military structures; 
        or
            (4) to the extent otherwise permitted under section 7104 of 
        this Act; or
            (5) to meet the challenges described in subsection (a)(3).
In providing assistance under this subsection the President shall 
consider the extent to which the recipients demonstrate a commitment to 
respect human rights and fundamental freedoms.

SEC. 2103. AVAILABILITY OF FUNDS; AUTHORITIES.

    (a) Availability of Funds.--Funds shall be available to carry out 
the provisions of this subchapter as authorized and appropriated to the 
President each fiscal year. The amount of funds that are authorized and 
appropriated to carry out the provisions of this subchapter that may be 
made available for assistance administered through the Department of 
Defense shall be authorized and appropriated separately.
    (b) Authority.--Assistance may be provided under this subchapter 
notwithstanding any other provision of law.

      Subchapter B--Independent States of the Former Soviet Union

SEC. 2201. STATEMENT OF POLICY.

    (1) The international community has an unparalleled stake in the 
success of the democratic and economic transformation taking place in 
the independent states of the former Soviet Union, and the integration 
of those states into the community of peaceful and democratic nations.
    (2) United States programs that facilitate this process constitute 
and should be seen as critical investments in America's future. The 
people of the United States and the independent states share an 
interest in ensuring that assistance is focused on programs that will 
have lasting effect, that support an ongoing process which can survive 
the buffeting of political and economic setbacks, and that lay a broad 
foundation for reform that is not dependent on the success or failure 
of particular initiatives.
    (3) United States leadership in supporting reform in the 
independent states will remain critical. At the same time, the United 
States must work closely with allies and international institutions to 
ensure that international support for reform in these states is 
coordinated, and that the costs of programs to support the ongoing 
transformation is allocated fairly among those with a shared stake in 
it success.
    (4) The establishment and development of democratic institutions 
and market economies in the independent states of the former Soviet 
Union present among the most important foreign policy challenges of our 
times. Failure to meet these challenges could threaten United States 
national security interests and jeopardize substantial savings in 
United States defense. Success will generate trade and investment 
opportunities for American businesses from which the United States 
stands to reap enduring employment and other economic benefits, and the 
prospects of a more peaceful and stable world having lasting benefits 
for all.

SEC. 2202. AVAILABILITY OF FUNDS.

    Funds shall be available to carry out the provisions of this 
subchapter as authorized and appropriated to the President each fiscal 
year. Such funds may be made available on the same basis as funds 
authorized to be appropriated for fiscal year 1993 under chapter 11 of 
part I of the Foreign Assistance Act of 1961. Such funds shall be 
considered to be assistance under this Act for purposes of making 
available the administrative authorities contained in this Act.

                Subchapter C--Central and Eastern Europe

SEC. 2301. STATEMENT OF POLICY.

    It should be the policy of the United States to continue to 
facilitate the reintegration of Central and East European countries 
into the community of democratic nations based on free enterprise, 
market economies. United States assistance programs can continue to 
make a substantial contribution to these objectives by building on 
earlier initiatives, including important ongoing initiatives that were 
established under the Support for East European Democracy (SEED) Act of 
1989. In furtherance of these objectives, the United States should 
support economic and political reform in Central and East European 
countries by making available assistance for SEED Actions as authorized 
by the SEED Act and for assistance provided under the authorities of 
this Act to such countries that are taking steps toward--
            (1) constitutional democracy and political pluralism, based 
        on progress toward free and fair elections, and a multi-party 
        political system;
            (2) economic reform, based on progress toward a market-
        oriented economy;
            (3) respect for internationally recognized human rights, 
        and the protection of fundamental civil liberties based on 
        progress toward democratic and independent judicial 
        institutions; and
            (4) a willingness to build, or continue, a constructive and 
        lasting relationship with the United States based on shared 
        values and principles.

SEC. 2302. AVAILABILITY OF FUNDS.

    Funds shall be available to carry out the provisions of this 
subchapter as authorized and appropriated to the President each fiscal 
year. Such funds shall be considered to be assistance under this Act 
for purposes of making available the administrative authorities 
contained in this Act.

                  Chapter 2--Information and Exchange

SEC. 2401. POLICY.

    (a) In General.--The fostering of democratic societies, values, and 
institutions abroad is crucial to the future security and prosperity of 
the United States. Information and exchange programs carried out by the 
United States are central to fostering such democratic values and 
encouraging the development of democratic institutions and processes 
around the world.
    (b) Role of Programs Conducted by USIA.--Programs administered by 
the United States Information Agency should support democratization 
abroad through the communication of knowledge and the exchange of 
people, ideas and values, and should promote, through in-country 
personal contacts, exchanges, training programs, and informational 
activities, a better understanding of the nature of democracy in such 
areas as--
            (1) the role of the citizen and government in democracy and 
        civil society;
            (2) the principles of a free market economy;
            (3) respect for the rule of law;
            (4) the free flow of information;
            (5) free and fair elections;
            (6) responsible and representative local government; and
            (7) democratic reform of education.

                       TITLE III--PROMOTING PEACE

SEC. 3001. STATEMENT OF POLICY.

    (1) For over forty years the specter of international communism 
weighed heavily on United States economic and military assistance 
priorities. The collapse of communism and the end of the Cold War have 
opened up new possibilities for international cooperation to contain 
and, more importantly, to prevent conflict, thereby creating the 
opportunity for realizing international peace and security.
    (2) Political destabilization, prompted in part by the demise of 
communism, has also unleashed long suppressed internal and regional 
conflict in Eastern Europe, the former Soviet Union, and elsewhere. At 
the same time, the proliferation of weapons of mass destruction and 
technologies poses unrelenting challenges for peace and security that 
the international community cannot afford to ignore.
    (3) In addition, the transnational scourges of narcotics 
trafficking, terrorism and other international criminal activity 
threaten at the most fundamental level the ability of Americans and 
others to live their lives in safety.
    (4) To address such problems during this historic transition in 
post-Cold War world affairs, United States bilateral and multilateral 
assistance under this title will be a necessary complement to effective 
diplomacy and international efforts to secure lasting peace. Failure to 
invest at this time in programs designed to prevent conflict, and to 
promote international peace and security, threatens the prospects for 
substantial savings in United States defense and other expenditures in 
the future.

              Chapter 1--Peacekeeping and Related Programs

SEC. 3101. STATEMENT OF POLICY.

    (1) In the wake of the Cold War, serious threats persist to the 
security and interests of the United States, and a range of conflicts 
within and among states and other humanitarian disasters continue to 
threaten international peace and security, undermine the stability of 
regions in the world, generate disruptive flows of refugees, and cause 
human suffering on a large scale. When the interests of the United 
States are at stake, including its treaty obligations and humanitarian 
concerns, it will rely on a variety of unilateral, bilateral, and 
multilateral means to respond to such conflicts and crises.
    (2) Diplomacy by our Nation and others can prevent or ameliorate 
foreign conflicts, crises, and breaches of the peace that could impose 
higher costs and burdens on the United States if left unaddressed. It 
is therefore the intention of the Congress through United States 
leadership to promote the security, welfare, and other foreign policy 
goals of the United States by supporting timely, preventive diplomatic 
efforts, unilaterally and in conjunction with other nations.
    (3) The United States reaffirms its support for appropriate peace 
operations when they advance United States interests, including the 
fulfillment of United States treaty obligations, or foreign policy 
goals, such as encouraging the spread of democratic and market 
institutions, and addressing grave humanitarian crises. A decision to 
support or participate in such operations should always be based on an 
assessment by the United States Government as to whether United States 
interests are best served by doing so.

SEC. 3102. GENERAL AUTHORITY.

    (a) In General.--The President is authorized--
            (1) to pay assessed and other contributions and expenses of 
        international peacekeeping activities and other international 
        activities directed to the maintenance or restoration of 
        international peace and security, including the provision of 
        related humanitarian relief; and
            (2) to furnish assistance to foreign countries, and 
        international and regional organizations and arrangements for 
        peacekeeping, international activities directed to the 
        restoration or maintenance of international peace and security 
        and other programs carried out in furtherance of the national 
        interest of the United States.
    (b) Availability of Funds.--
            (1) Funds shall be available to carry out the provisions of 
        subsection (a)(1) as authorized and appropriated to the 
        President each fiscal year.
            (2) Funds shall be available to carry out the provisions of 
        subsection (a)(2) as authorized and appropriated to the 
        President each fiscal year.
            (3) If the President determines and reports to Congress 
        that doing so would promote the purposes of this chapter, funds 
        made available under either paragraph (1) or (2) may be 
        transferred to, and consolidated with, funds available for the 
        other such paragraph, and may be used for any of the purposes 
        for which funds under that paragraph may be used.
    (c) Authority.--Funds made available to carry out this chapter may 
be made available notwithstanding any provisions of law that restrict 
assistance to foreign countries.

SEC. 3103. DRAWDOWN AUTHORITIES.

    (a) Unforeseen Emergencies.--If the President determines that, as 
the result of an unforeseen emergency, the provision of assistance 
under this chapter in amounts in excess of funds otherwise available 
for such purposes is important to the national interests of the United 
States, the President may direct the drawdown of articles and services, 
of an aggregate value not to exceed $100,000,000 in any fiscal year, 
from the inventory and resources of any agency of the United States 
Government.
    (b) Reimbursement.--There are authorized to be appropriated to the 
President such sums as may be necessary to reimburse the applicable 
appropriation, fund, or account for articles and services provided 
under this section.

            Chapter 2--Nonproliferation and Disarmament Fund

SEC. 3201. STATEMENT OF POLICY.

    One of the principal threats to the security of the United States 
in the post-Cold War era is the risk of proliferation of deadly 
weapons--nuclear, chemical, biological, and advanced conventional 
weapons--as well as their delivery systems. The United States should 
give high priority to pursuing arms control agreements and preventing 
proliferation by supporting and enhancing bilateral and multilateral 
efforts to--
            (1) establish effective controls on destabilizing weapon 
        systems and materials;
            (2) dismantle existing systems;
            (3) create verifiable safeguards and regimes and effective 
        export controls on related technologies and materials; and
            (4) increase the effectiveness and help ensure the 
        implementation of existing nonproliferation and arms control 
        agreements, particularly in the states of the former Soviet 
        Union and in Central and Eastern Europe.

SEC. 3202. PROVISION OF ASSISTANCE.

    Assistance may be provided under this chapter to facilitate--
            (1) supporting the dismantlement and destruction of 
        nuclear, biological, and chemical weapons, their delivery 
        systems, and conventional weapons;
            (2) supporting bilateral and multilateral efforts to halt 
        the proliferation of nuclear, biological, and chemical weapons, 
        their delivery systems, related technologies, and other 
        weapons;
            (3) establishing programs for safeguarding against the 
        proliferation of nuclear, biological, chemical and other 
        weapons;
            (4) establishing programs for preventing diversion of 
        weapons-related scientific and technical expertise to terrorist 
        groups or to third countries;
            (5) increasing effectiveness of existing nonproliferation 
        and arms control agreements and promotion of arms control and 
        security in regions of tension;
            (6) assisting international agencies in the application of 
        nonproliferation treaty safeguards, in the verification of 
        international nonproliferation regimes, and in the promotion of 
        peaceful uses of technologies and materials related to such 
        weapons; and
            (7) establishing programs for facilitating the conversion 
        of military technologies and capabilities and defense 
        industries into civilian activities.

SEC. 3203. AVAILABILITY OF FUNDS.

    Funds shall be available to carry out the provisions of this 
chapter as authorized and appropriated to the President each fiscal 
year.

SEC. 3204. DRAWDOWN AUTHORITIES.

    (a) Unforeseen Emergencies.--If the President determines that it is 
in the national interest of the United States to provide assistance 
under this chapter in amounts in excess of funds otherwise available 
under this chapter for such purposes, the President may direct the 
articles and services, of an aggregate value not to exceed $100,000,000 
in any fiscal year, from the inventory and resources of any agency of 
the United States Government.
    (b) Reimbursement.--There are authorized to be appropriated to the 
President such sums as may be necessary to reimburse the applicable 
appropriation, fund, or account for articles and services provided 
under this section.

      Chapter 3--Regional Peace, Security and Defense Cooperation

SEC. 3301. STATEMENT OF POLICY.

    (1) During the Cold War, regional conflicts were often inspired by 
hegemonist aspirations of aggressive communism. In the post-Cold War 
era, regional and internal conflicts, fueled by more discrete problems 
such as ethnic discord, competing territorial claims and other sources 
of tension, persist and are among the greatest threats and barriers to 
the achievement of international peace and stability, and a safe and 
lawful world order.
    (2) Prudent investment of United States resources to assist, 
through bilateral and collective efforts, in preventing or containing 
armed conflict, in restoring peace and stability, and in addressing the 
sources of conflict, is essential for achieving a peaceful world.
    (3) Recent successes in the Near East exemplify the value of United 
States dedication to resolving conflict in an area whose security and 
stability is of vital interest to the United States:
            (A) To permit continued progress in reaching a full 
        settlement and a comprehensive, just and lasting peace between 
        Israel and its Arab neighbors, the United States must assist 
        Israel in maintaining adequate defense capabilities to ensure 
        its territorial integrity and continued survival.
            (B) Recognizing that the success of the agreement between 
        Israel and the Palestine Liberation Organization will depend in 
        large measure on promoting economic development and improving 
        the well-being of people of the West Bank and Gaza, the United 
        States should lead in building peace and prosperity in the Near 
        East through bilateral assistance and by encouraging 
        multilateral and other donors to contribute the necessary 
        resources to promote sustainable economic development 
        throughout that region.
    (4) The United States must also build security partnerships with 
other allies and friendly nations to assist in their maintaining 
adequate capabilities to preserve internal security, as well as to 
engage in collective defense efforts against states that seek 
territorial expansion or regional hegemony.
    (5) Furthermore, to contribute to an international response 
capability, the United States recognizes the need to provide urgent and 
immediate assistance, bilaterally and multilaterally, to contain and 
resolve conflicts. To respond to such urgent challenges and to promote 
international vigilance in order to stem incipient regional conflicts 
worldwide, the United States sees great value in maintaining alliances, 
coalitions and other cooperative defense relationships that permit more 
effective collective defense efforts.
    (6) As more conflicts are resolved, and as peacetime conditions 
permit, continued United States assistance under this chapter should 
focus increasingly on conflict prevention and the promotion of regional 
arms control, with an emphasis on nonproliferation and defense 
education and training appropriate for a revised military role in a 
more peaceful and stable world.

SEC. 3302. AUTHORITY AND PURPOSES.

    Assistance under this chapter may be provided for the following 
purposes--
            (1) to support and promote the process of resolving 
        conflict and establishing a just and lasting peace, to 
        contribute to the development of institutions of democratic 
        government, and to meet economic, political and security needs, 
        in the Near East;
            (2) to meet immediate threats to international peace and 
        security posed by regional and internal conflicts through 
        bilateral or multilateral collective defense efforts, and to 
        meet other political, economic and humanitarian threats to 
        security; and
            (3) to enhance the ability of countries worldwide willing 
        to share the burden of contributing to regional alliances, 
        coalition operations, and other collective security efforts to 
        counter threats to and maintain international peace and 
        security.

SEC. 3303. CONSIDERATIONS IN PROVIDING DEFENSE COOPERATION ASSISTANCE.

    In providing assistance under this chapter, the President should 
take into account the desirability of shifting resources away from the 
provision of defense articles to economic development purposes as 
rapidly as is warranted by the easing of threats to regional peace and 
security, and the need to maintain ongoing defense relations.

SEC. 3304. AVAILABILITY OF FUNDS.

    Funds shall be available to carry out the provisions of this 
chapter as authorized and appropriated to the President each fiscal 
year. The amount of funds that are authorized and appropriated to carry 
out the provisions of this chapter that may be made available for 
assistance administered through the Department of Defense shall be 
authorized and appropriated separately.

  Chapter 4--International Narcotics Trafficking, Terrorism and Crime 
                               Prevention

SEC. 3401. STATEMENT OF POLICY.

    (1) International criminal activities, particularly international 
narcotics trafficking and international terrorism, pose insidious, 
unparalleled transnational threats in the post-Cold War period, and 
endanger stability and democratic development.
    (2) The political and economic upheavals triggered worldwide by 
international narcotics and crime-related violence and corruption have 
had a devastating effect in the United States and elsewhere, and make 
the prevention and suppression of such international criminal 
activities among the most important foreign policy objectives of the 
United States.
    (3) Failure to address the problems of narcotics trafficking and 
related illicit activities will lead inevitably to further and 
intensified crime, violence, corruption, disease and poverty.
    (4) The threats posed by terrorism to international peace and 
security and a stable, safe world order are equally profound, and must 
be combatted through effective international cooperation, including the 
provision of training and equipment.
    (5) The war against narcotics trafficking, international terrorism 
and other forms of international criminal activity requires the 
provision of bilateral and multilateral assistance by the United 
States, including as appropriate through defense establishments, and 
can be waged most successfully by enlisting broad-based international 
cooperation that facilitates flexible responses to stem all such 
activity.
    (6) In order to combat such activities, it is imperative that 
international cooperation be improved, and efforts in this regard 
should include assistance to promote enhanced police investigative 
techniques, prosecutorial and defense skills, and judicial training and 
administration.

SEC. 3402. AUTHORITIES.

    Assistance under this chapter may be provided for the following 
purposes--
            (1) to control narcotics and psychotropic drugs and other 
        controlled substances including through programs to promote 
        alternative development, and including through enforcement, 
        demand reduction and treatment programs;
            (2) to enhance the rule of law and the ability of law 
        enforcement and, as appropriate, defense personnel of foreign 
        countries to combat international criminal activity including 
        corruption, money laundering, economic crimes, illegal trade, 
        narcotics manufacturing and trafficking and terrorism;
            (3) to enhance anti-terrorism skills of foreign law 
        enforcement and, as appropriate, defense personnel to deter 
        terrorists and terrorist groups from engaging in international 
        terrorist acts such as bombing, kidnapping, assassination, 
        hostage-taking and hijacking; and
            (4) to provide concrete anti-crime, anti-terrorism and 
        anti-narcotics assistance to friendly countries to strengthen 
        bilateral ties and to increase respect for human rights by 
        sharing with foreign civil authorities modern, humane and 
        effective anti-crime and anti-terrorism techniques; and
            (5) to combat through effective cooperation international 
        criminal activity, including organized crime and its role in 
        attempting to influence the process of government, and to 
        increase international awareness of the need for concerted 
        efforts through bilateral and multilateral means, such as the 
        United Nations Commission on Crime Prevention and Criminal 
        Justice; and
            (6) to promote international criminal justice, including 
        through assistance to promote enhanced police investigative 
        techniques, prosecutorial and defense skills, and judicial 
        training and administration.

SEC. 3403. PROVISIONS RELATED TO ANTI-NARCOTICS PROGRAMS.

    (a) Furnishing Assistance.--The President is authorized to furnish 
assistance under this chapter for the purposes of controlling narcotic 
and psychotropic drugs and other controlled substances notwithstanding 
any other provision of law, and is authorized to furnish narcotics-
related assistance under other provisions of this title notwithstanding 
any other provision of law that restricts assistance to foreign 
countries (except section 7201(a)(6)).
    (b) Agreements With Other Countries.--In order to promote 
cooperation for the purposes of this chapter, the President is 
authorized to conclude agreements, including reciprocal maritime 
agreements, with other countries to facilitate control of the 
production, processing, transportation, and distribution of narcotics 
analgesics, including opium and its derivatives, other narcotic and 
psychotropic drugs, and other controlled substances.
    (c) Contribution by Recipient Country to Counter-Narcotics 
Efforts.--To ensure local commitment to the anti-narcotics activities 
assisted under this chapter, the government of a country receiving such 
assistance under this chapter should bear an appropriate share of the 
costs of any narcotics control program, project, or activity for which 
such assistance is to be provided. The government of a country may bear 
such costs on an ``in kind'' basis.
    (d) Use of Herbicides for Aerial Eradication of Narcotics.--The 
President, with the assistance of appropriate Federal agencies, shall 
monitor the use of any herbicides provided under this chapter for 
aerial eradication in order to determine the impact of such use on the 
environment and on the health of individuals.
    (e) Limitations on Uses of Aircraft and Other Equipment.--The 
President shall take all reasonable steps to ensure that aircraft and 
other equipment made available to foreign countries for purposes 
described in section 3402(1) are used only in ways that are consistent 
with the purposes for which such equipment was made available. In the 
reports submitted pursuant to section 7303, the President shall discuss 
any evidence indicating misuse by a foreign country of aircraft or 
other equipment made available for purposes described in section 
3402(1), and the actions taken by the United States Government in 
accordance with this Act to prevent future misuse of such equipment by 
that foreign country.
    (f) Prohibition on Assistance to Drug Traffickers.--The President 
shall take all reasonable steps to ensure that assistance under this 
Act is not provided to or through any individual or entity that has 
been convicted of, or against whom a government has formal criminal 
charges pending regarding, a violation of, or a conspiracy to violate, 
any law or regulation of the United States, a State or the District of 
Columbia, or a foreign country, relating to narcotic or psychotropic 
drugs or other controlled substances. This subsection shall not be 
construed to restrict assistance that is provided under this Act to 
facilitate alternative development programs.
    (g) Coordination of All United States Anti-Narcotics Assistance.--
Consistent with subtitle A of title I of the Anti-Drug Abuse Act of 
1988, the Secretary of State shall be responsible for coordinating all 
assistance provided by the United States Government to support 
international efforts to combat illicit narcotics production or 
trafficking. Nothing contained in this subsection shall be construed to 
limit or impair the authority or responsibility of any other Federal 
agency with respect to law enforcement, domestic security operations, 
or intelligence activities as defined in Executive Order 12333.

SEC. 3404. PROVISIONS RELATED TO LAW ENFORCEMENT TRAINING.

    (a) Training by State Department Personnel.--Employees of the 
Department of State shall not engage in the training of law enforcement 
personnel for anti-terrorism programs under this chapter, with the 
exception of training (including short term refresher training) or 
services provided to law enforcement personnel by employees of the 
Bureau of Diplomatic Security with regard to crisis management, 
facility security, or VIP protection.
    (b) Assistance Relating to Intelligence Activities.--Anti-terrorism 
assistance under this chapter shall not include activities involved in 
the collection of intelligence as defined in Executive Order 12333, 
other than limited training in the organization of intelligence for 
antiterrorism purposes under the provisions of this chapter.
    (c) Types of Assistance.--Anti-crime and anti-terrorism assistance 
under this chapter should emphasize the provision of training rather 
than the provision of articles. Such training should be provided with 
due regard for a country's commitment to democracy and respect for 
human rights, and where appropriate should incorporate a component to 
promote respect for human rights. To the extent equipment or other 
articles are provided under assistance programs pursuant to this 
chapter, items that support more effective administrative efforts 
should receive the highest consideration.

SEC. 3405. WAIVER OF CERTAIN RESTRICTIONS ON ASSISTANCE.

    Section 7201(a)(7) of this Act and any similar provisions of law 
shall not apply to the provision of assistance under this chapter.

SEC. 3406. AVAILABILITY OF FUNDS.

    Funds shall be available to carry out the provisions of this 
chapter as authorized and appropriated to the President each fiscal 
year. The amount of funds that are authorized and appropriated to carry 
out the provisions of this chapter that may be made available for 
assistance administered through the Department of Defense shall be 
authorized and appropriated separately.

              TITLE IV--PROVIDING HUMANITARIAN ASSISTANCE

SEC. 4001. STATEMENT OF POLICY.

    (1) The post-Cold War era has been marked by a sudden proliferation 
of crises and transitions that have led to a massive civilian death 
toll, widespread human suffering, and an unprecedented number of people 
becoming refugees and displaced persons.
    (2) Civil war, international conflict, and natural disasters have 
all contributed to these humanitarian crises which have jeopardized the 
stability of nascent democracies and strained the ability of fragile 
economies to meet these unexpected requirements.
    (3) In significant measure, the effects of manmade and natural 
disasters, at times amplified by prolonged environmental degradation, 
threaten continued sustained development and are at the same time 
magnified by the lack of that development.
    (4) Bilateral and multilateral programs that provide support to 
countries faced with large numbers of refugees, rapidly respond to 
natural and manmade disasters, and otherwise meet humanitarian and 
crisis needs are essential for the continued democratization and 
economic growth of countries that, by themselves, do not have the 
resources to cope with crises of such magnitude.

                     Chapter 1--Refugee Assistance

SEC. 4101. STATEMENT OF POLICY AND PURPOSES.

    (a) Statement of Policy.--
            (1) United States leadership in international refugee and 
        migration affairs reflects our humanitarian values and 
        traditions.
            (2) United States refugee assistance upholds humanitarian 
        principles that the United States shares with others in the 
        international community.
            (3) Too often, situations involving serious violations of 
        human rights, conflict, or disaster create or threaten to 
        create large-scale refugee and migration problems in which the 
        victims are forced to flee their homes for safety and survival.
            (4) United States advances the ability of the international 
        community to address humanitarian crises involving the forced 
        migration of peoples through support for, participation in and 
        assistance to, the international and other institutions 
        involved in the protection of and assistance to victims of 
        persecution, conflict and other forms of human rights 
        violations and forced displacements.
            (5) United States efforts to improve international 
        cooperation and burdensharing in carrying out these programs 
        underscore that these issues are the subject of international 
        concern and shared responsibility.
            (6) Prompt and effective responses can avert further crises 
        and instability and can alleviate the suffering of the victims 
        of displacement.
            (7) It is imperative that the United States have the 
        resources and the flexibility to be able to provide effective 
        and immediate assistance in this regard.
    (b) Purposes of Assistance.--Assistance under this chapter may be 
made available to--
            (1) provide assistance to or on behalf of refugees, 
        conflict victims, displaced persons, and other victims of 
        forced migration, who are outside the United States, including 
        assistance on behalf of those persons who will be considered 
        for admission to the United States and for the initial 
        reintegration of persons who have been repatriated to their 
        countries of origin;
            (2) contribute to the activities of the United Nations High 
        Commissioner for Refugees, the International Organization for 
        Migration, the International Committee of the Red Cross, the 
        United Nations Relief and Works Agency for Palestine Refugees 
        in the Near East, and other relevant organizations and 
        institutions; and
            (3) provide such other assistance as may be necessary to 
        promote the prevention and solution of refugee and other 
        migration problems, in countries of origin as well as in 
        countries of asylum, and including for resettlement and 
        demining efforts.
    (c) Emergency Refugee and Migration Assistance.--
            (1) Whenever the President determines it to be important to 
        the national interest he is authorized to furnish assistance 
        for the purposes of section 4102 when such needs are unexpected 
        and urgent.
            (2) There is established a United States Emergency Refugee 
        and Migration Assistance Fund to carry out the purposes of this 
        subsection. There is authorized to be appropriated to the 
        President from time to time such amounts as may be necessary 
        for the fund to carry out the purposes of this subsection. The 
        President shall promptly notify the Congress concerning the use 
        of funds under this subsection.
    (d) Waiver of Restrictions on Assistance.--The President may carry 
out activities under this chapter notwithstanding any other provision 
of law.

SEC. 4102. AVAILABILITY OF FUNDS.

    Funds shall be available to carry out the provisions of this 
chapter as authorized and appropriated to the President each fiscal 
year.

                     Chapter 2--Disaster Assistance

SEC. 4201. POLICY.

    (a) Humanitarian Concerns and Traditions of the American People.--
Prompt United States assistance to alleviate human suffering caused by 
natural and manmade disasters is a longstanding tradition and an 
important expression of the humanitarian interest of the people of the 
United States. The willingness of the United States to provide 
assistance through bilateral, multilateral, and people-to-people means 
for the relief and rehabilitation of people and countries affected by 
such disasters is hereby reaffirmed.
    (b) Reaching Those Most in Need.--In carrying out this chapter, the 
President shall insure that, to the greatest extent possible, the 
assistance provided by the United States reaches those most in need of 
relief and rehabilitation as a result of natural and manmade disasters.

SEC. 4202. AUTHORITY TO PROVIDE ASSISTANCE.

    (a) In General.--The President is authorized to furnish assistance 
for international disaster relief and rehabilitation. Such assistance 
may include assistance relating to disaster preparedness, prevention, 
and mitigation, and to the prediction of, and contingency planning for, 
natural and manmade disasters abroad.
    (b) Nonapplicability of Other Provisions.--Assistance may be 
furnished under this chapter notwithstanding any other provision of 
this or any other Act.
    (c) Borrowing Authority.--
            (1) Authority.--In addition to amounts otherwise available 
        to carry out this chapter, up to $50,000,000 in any fiscal year 
        may be obligated against appropriations available to carry out 
        other titles of this Act for use in providing assistance in 
        accordance with the authorities and general policies of this 
        chapter.
            (2) Reimbursement.--Amounts subsequently appropriated to 
        carry out this chapter with respect to a disaster may be used 
        to reimburse any appropriation account against which 
        obligations were incurred under this subsection with respect to 
        that disaster.
    (d) Reconstruction.--A portion of the funds made available to carry 
out this section may be used, in addition to amounts otherwise 
available for such purposes, to respond rapidly to reconstruction and 
institution-building needs arising from natural or manmade disasters.

SEC. 4203. AVAILABILITY OF FUNDS.

    Funds shall be available to carry out the provisions of this 
chapter as authorized and appropriated to the President each fiscal 
year.

                  Chapter 3--Emergency Food Assistance

SEC. 4301. STATEMENT OF POLICY REGARDING EMERGENCY FOOD ASSISTANCE 
              UNDER PUBLIC LAW 480, TITLE II.

    (1) The United States continues to provide leadership in addressing 
famine and other urgent or extraordinary worldwide relief needs.
    (2) In particular, the use of United States agricultural 
commodities through bilateral and multilateral channels to meet 
emergency food needs has saved lives, ameliorated suffering, and has 
been a tangible expression of the best in the humanitarian spirit of 
the American people.
    (3) This assistance is often provided in conjunction with 
assistance furnished under the other chapters of this title to provide 
a comprehensive program of relief for those less fortunate than we who 
are refugees or other victims of forced migration, or are suffering the 
consequences of natural or manmade disasters.

         TITLE V--PROMOTING GROWTH THROUGH TRADE AND INVESTMENT

SEC. 5001. STATEMENT OF POLICY.

    (1) In an increasingly interdependent world, the security and well-
being of the United States will be shaped by the ability of the United 
States to compete and prosper in a global economy.
    (2) The United States remains committed to the principles of free 
trade among nations as the most effective means to promote expanding 
international markets and global economic prosperity.
    (3) Economic growth and creation of employment opportunities in the 
United States are directly and materially enhanced by international 
economic growth and trade liberalization.
    (4) United States trade and investment represent a powerful means 
of promoting economic growth and development in emerging economies and 
economies in transition. Expanding United States trade and investment 
opportunities in the markets of the future is best sustained by free-
market orientation and sustained development in those countries.
    (5) The twin tracks of commercial engagement and longer-term 
sustainable development represent complementary means of advancing 
United States interests by creating a more prosperous, therefore more 
secure world.
    (6) The provision of a comprehensive and coordinated program of 
export financing, investment insurance, guaranties and feasibility 
studies significantly enhances the ability of the private sector to 
pursue trade and investment opportunities in developing countries.

           Chapter 1--Overseas Private Investment Corporation

SEC. 5101. PURPOSE AND POLICY.

    (a) Purpose.--The Overseas Private Investment Corporation shall be 
an agency of the United States under the foreign policy guidance of the 
Secretary of State. The purpose of the Corporation is to mobilize and 
facilitate the participation of United States private capital and 
skills in the economic and social development of less developed 
friendly countries and areas, and countries in transition from 
nonmarket to market economies, thereby complementing the development 
assistance objectives of the United States, facilitating the 
competitiveness of the United States private sector, and promoting 
United States economic growth.
    (b) Development, Export, and Per Capita Income Criteria.--The 
Corporation, in determining whether to provide insurance, reinsurance, 
or financing for a project, shall especially--
            (1) be guided by the economic and social development impact 
        and benefits of such a project and the ways in which such a 
        project complements, or is compatible with, other development 
        assistance programs or projects of the United States or other 
        donors;
            (2) give preference to projects which promote United States 
        exports and increase United States economic growth; and
            (3) give preferential consideration to investment projects 
        in countries that have per capita incomes of $1,230 or less in 
        1992 United States dollars; and restrict its activities in 
        countries with per capita incomes of $5,335 or more in 1992 
        United States dollars (other than countries designated as 
        beneficiary countries under section 212 of the Caribbean Basin 
        Economic Recovery Act (19 U.S.C.2702)).
    (c) Guidelines for Activities of OPIC.--In carrying out its 
purpose, the Corporation, utilizing broad criteria, shall undertake--
            (1) to conduct insurance, reinsurance, and financing 
        operations on a self-sustaining basis, taking into account in 
        its financing operations the economic and financial soundness 
        of projects;
            (2) to utilize private credit and investment institutions 
        and the Corporation's financing authority as the principal 
        means of mobilizing capital investment funds;
            (3) to broaden private participation and revolve its funds 
        through selling its direct investments to private investors 
        whenever it can appropriately do so on satisfactory terms;
            (4) to conduct its insurance operations with due regard to 
        principles of risk management, including efforts to share its 
        insurance risks and reinsurance risks;
            (5) to consider in the conduct of its operations the extent 
        to which the governments of less developed countries are 
        receptive to private enterprise, domestic and foreign, and 
        their willingness and ability to maintain conditions which 
        enable private enterprise to make its full contribution to the 
        development process;
            (6) to foster private initiative and competition and 
        discourage monopolistic practices;
            (7) to further to the greatest degree possible, in a manner 
        consistent with its goals, the balance-of-payments and economic 
        and employment objectives of the United States;
            (8) to conduct its activities in consonance with the 
        international trade, investment, and financial policies of the 
        United States Government, and to seek to support those 
        developmental projects having positive trade benefits for the 
        United States; and
            (9) to advise and assist, within its field of competence, 
        interested agencies of the United States and other 
        organizations, both public and private, national and 
        international, with respect to projects and programs relating 
        to the development of private enterprise in less developed 
        countries and areas.

SEC. 5102. INVESTMENT INSURANCE, FINANCING, AND OTHER PROGRAMS.

    (a) Investment Insurance.--
            (1) Risks for which insurance issued.--The Corporation is 
        authorized to issue insurance, upon such terms and conditions 
        as the Corporation may determine, to eligible investors 
        assuring protection in whole or in part against any or all of 
        the following risks with respect to projects which the 
        Corporation has approved:
                    (A) Inability to convert into United States dollars 
                other currencies, or credits in such currencies, 
                received as earnings or profits from the approved 
                project, as repayment or return of the investment in 
                the project, in whole or in part, or as compensation 
                for the sale or disposition of all or any part of the 
                investment.
                    (B) Loss of investment, in whole or in part, in the 
                approved project due to expropriation or confiscation 
                by action of a foreign government.
                    (C) Loss due to war, revolution, insurrection, or 
                civil strife.
                    (D) Loss due to business interruption caused by any 
                of the risks set forth in subparagraphs (A), (B), and 
                (C).
            (2) Risk sharing arrangements with foreign governments and 
        multilateral organizations.--Recognizing that major private 
        investments in emerging democracies, economies in 
        transformation and less developed friendly countries or areas 
        are often made by enterprises in which there is multinational 
        participation, including significant United States private 
        participation, the Corporation may make arrangements with 
        foreign governments (including agencies, instrumentalities, and 
        political subdivisions thereof) and with multilateral 
        organizations and institutions for sharing liabilities assumed 
        under investment insurance for such investments and may, in 
        connection with such arrangements, issue insurance to investors 
        not otherwise eligible for insurance under this chapter, except 
        that--
                    (A) liabilities assumed by the Corporation under 
                the authority of this paragraph shall be consistent 
                with the purposes of this chapter, and
                    (B) the maximum share of liabilities so assumed 
                shall not exceed the proportionate participation by 
                eligible investors in the project.
            (3) Maximum contingent liability with respect to single 
        investor.--Not more than 10 percent of the maximum contingent 
        liability for investment insurance which the Corporation is 
        permitted to have outstanding under section 5104(a)(1) shall be 
        issued to a single investor.
            (4) Other insurance functions.--
                    (A) In general.--The Corporation is authorized to--
                            (i) make and carry out contracts of 
                        insurance or reinsurance, or agreements to 
                        associate or share risks, with insurance 
                        companies, financial institutions, any other 
                        persons, or groups thereof, and
                            (ii) employ such insurance companies, 
                        financial institutions, other persons, or 
                        groups, where appropriate, as its agent, or to 
                        act as their agent, in the issuance and 
                        servicing of insurance, the adjustment of 
                        claims, the exercise of subrogation rights, the 
                        ceding and accepting of reinsurance, and in any 
                        other matter incident to an insurance business, 
                        except that such agreements and contracts shall 
                        be consistent with the purposes of the 
                        Corporation set forth in section 5101 and shall 
                        be on equitable terms.
                    (B) Risk-sharing agreements.--The Corporation is 
                authorized to enter into pooling or other risk-sharing 
                agreements with multilateral insurance or financing 
                agencies or groups of such agencies.
                    (C) Ownership interest in risk-sharing entities.--
                The Corporation is authorized to hold an ownership 
                interest in any association or other entity established 
                for the purposes of sharing risks under investment 
                insurance.
    (b) Investment Financing.--
            (1) Direct lending.--
                    (A) In general.--The Corporation is authorized to 
                make loans in United States dollars, repayable in 
                dollars, and to make loans in foreign currencies, to 
                firms privately owned or of mixed private and public 
                ownership, upon such terms and conditions as the 
                Corporation may determine.
                    (B) Use of loan for new technologies, products, or 
                services.--The Corporation may designate up to 25 
                percent of any loan under this subsection for use in 
                the development or adaptation in the United States of 
                new technologies or new products or services that are 
                to be used in the project for which the loan is made 
                and are likely to contribute to the economic or social 
                development of less developed countries.
            (2) Equity investment.--
                    (A) In general.--The Corporation is authorized to 
                purchase, invest in, or otherwise acquire equity 
                securities or securities with equity characteristics of 
                any firm or entity, upon such terms and conditions as 
                the Corporation may determine, to be funded in the same 
                manner as direct loans under the Federal Credit Reform 
                Act of 1990 for the purpose of providing capital for 
                any project which is consistent with the provisions of 
                this chapter, except that--
                            (i) the aggregate amount of the 
                        Corporation's equity investment with respect to 
                        any project shall not exceed 30 percent of the 
                        aggregate amount of all equity investment made 
                        with respect to such project at the time that 
                        the Corporation's equity investment is made, 
                        except for securities acquired through the 
                        enforcement of any lien, pledge, or contractual 
                        arrangement as a result of a default by any 
                        party under any agreement relating to the terms 
                        of the Corporation's investment; and
                            (ii) the Corporation's equity investment 
                        under this paragraph with respect to any 
                        project, when added to any other investments 
                        made or guaranteed by the Corporation under 
                        this paragraph with respect to such project, 
                        shall not cause the aggregate amount of all 
                        such investment to exceed, at the time any such 
                        investment is made or guaranteed by the 
                        Corporation, 75 per centum of the total 
                        investment committed to such project as 
                        determined by the Corporation. Such 
                        determination under this clause shall be 
                        conclusive for purposes of the Corporation's 
                        authority to make or guarantee any such 
                        investment.
                    (B) Additional criteria.--In making investment 
                decisions under this paragraph, the Corporation shall 
                give consideration to the extent to which the 
                Corporation's equity investment will assist in 
                obtaining the financing required for such projects.
                    (C) Disposition of equity interest.--Taking into 
                consideration, among other things, the Corporation's 
                financial interests and the desirability of fostering 
                the development of local capital markets in emerging 
                democracies, economies in transformation and less 
                developed countries, the Corporation shall endeavor to 
                dispose of any equity interest it may acquire under 
                this subsection within a period of ten years from the 
                date of acquisition of such interest.
            (3) Investment guarantees.--
                    (A) Authority.--The Corporation is authorized to 
                issue to eligible investors guarantees of loans and 
                other investments made by such investors assuring 
                against loss due to such risks and upon such terms and 
                conditions as the Corporation may determine, subject to 
                subparagraphs (B), (C), and (D).
                    (B) Guarantees on other than loan investments.--A 
                guarantee issued under subparagraph (A) on other than a 
                loan investment may not exceed 75 per centum of such 
                investment.
                    (C) Limit on amount of investment guaranteed.--
                Except for loan investments for credit unions made by 
                eligible credit unions or credit union associations, 
                the aggregate amount of investment (exclusive of 
                interest and earnings) for which guarantees are issued 
                under subparagraph (A) with respect to any project 
                shall not exceed, at the time of issuance of any such 
                guarantee, 75 per centum of the total investment 
                committed to any such project as determined by the 
                Corporation. Such determination by the Corporation 
                shall be conclusive for purposes of the Corporation's 
                authority to issue any such guarantee.
                    (D) Maximum contingent liability with respect to 
                single investor.--Not more than 15 per centum of the 
                maximum contingent liability for investment guarantees 
                which the Corporation is permitted to have outstanding 
                under section 5104(a)(2) may be issued to a single 
                investor.
    (c) Investment Encouragement.--The Corporation is authorized to 
initiate and support through financial participation, incentive grant, 
or otherwise, and on such terms and conditions as the Corporation may 
determine, the identification, assessment, surveying, and promotion of 
private investment opportunities, using wherever feasible and effective 
the facilities of private investors, except that the Corporation shall 
not finance any survey to ascertain the existence, location, extent, or 
quality of oil or gas resources.
    (d) Special Activities.--The Corporation is authorized to 
administer and manage special projects and programs, including programs 
of financial and advisory support, which provide private technical, 
professional, or managerial assistance in the development of human 
resources, skills, technology, capital savings, intermediate financial 
and investment institutions, and cooperatives. The funds for these 
projects and programs may, with the Corporation's concurrence, be 
transferred to it for such purposes under the authority of section 8201 
of this Act or from other sources, public or private.

SEC. 5103. ENHANCING PRIVATE POLITICAL RISK INSURANCE INDUSTRY.

    In order to encourage greater availability of political risk 
insurance for eligible investors by enhancing the private political 
risk insurance industry in the United States, and to the extent 
consistent with this chapter, the Corporation shall undertake programs 
of cooperation with such industry, and in connection with such programs 
may engage in the following activities:
            (1) Utilizing its statutory authorities, encourage the 
        development of associations, pools, or consortia of United 
        States private political risk insurers.
            (2) Share insurance risks (through coinsurance, contingent 
        insurance, or other means) in a manner that is conducive to the 
        growth and development of the private political risk insurance 
        industry in the United States.
            (3) Notwithstanding section 8544(e), upon the expiration of 
        insurance provided by the Corporation for an investment, enter 
        into risk-sharing agreements with United States private 
        political risk insurers to insure any such investment; except 
        that, in cooperating in the offering of insurance under this 
        paragraph, the Corporation shall not assume responsibility for 
        more than 50 per centum of the insurance being offered in each 
        separate transaction.

SEC. 5104. ISSUING AUTHORITY AND RESERVES.

    (a) Issuing Authority.--
            (1) Insurance.--The maximum contingent liability 
        outstanding at any one time pursuant to insurance issued under 
        section 5102(a) shall not exceed in the aggregate 
        $15,000,000,000.
            (2) Financing.--The Corporation is authorized to commit 
        investment financing under section 5102(b) of up to 
        $5,000,000,000 for the period of fiscal years beginning October 
        1, 1994, terminating on the date specified in paragraph (3).
            (3) Termination of authority.--The authority of subsection 
        (a) and (b) of section 5102 shall continue until September 30, 
        1999.
    (b) Insurance Reserve.--
            (1) Maintenance and purposes.--The Corporation shall 
        maintain an insurance reserve. Such reserve shall be available 
        for the discharge of liabilities, as provided in subsection 
        (d), until such time as all such liabilities have been 
        discharged or have expired or until such reserve has been 
        expended in accordance with the provisions of this section.
            (2) Funding.--The insurance reserve shall consist of--
                    (A) any funds in the insurance reserve of the 
                Corporation on September 30, 1993,
                    (B) amounts transferred to the reserve pursuant to 
                this Act, and
                    (C) such sums as are appropriated pursuant to 
                subsection (d) of this section for such purposes.
    (c) Order of Payments To Discharge Liabilities.--Any payment made 
to discharge liabilities under investment insurance or reinsurance 
issued under section 5102, under similar predecessor guarantee 
authority, or under section 5103, shall be paid first out of the 
insurance reserve, as long as such reserve remains available, and 
thereafter out of funds made available pursuant to subsection (d) of 
this section. Any payments made to discharge liabilities under 
guarantees issued under section 5102(b) shall be paid in accordance 
with the Federal Credit Reform Act of 1990.
    (d) Availability of Funds.--
            (1) Availability.--Subject to paragraph (2), funds shall be 
        available to carry out the provisions of this chapter as 
        authorized and appropriated to the President to replenish or 
        increase the insurance reserve, to discharge the liabilities 
        under insurance or reinsurance issued by the Corporation, or to 
        discharge obligations of the Corporation purchased by the 
        Secretary of the Treasury pursuant to subsection (e).
            (2) Limitation on appropriations.--No appropriation shall 
        be made under paragraph (1) to augment the insurance reserve 
        until the amount of funds in the insurance reserve is less than 
        $25,000,000. Any appropriations to augment the insurance 
        reserve shall then only be made to satisfy the full faith and 
        credit provision of section 8545(c).
    (e) Issuance of Obligations.--In order to discharge liabilities 
under investment insurance or reinsurance, the Corporation is 
authorized to issue from time to time for purchase by the Secretary of 
the Treasury its notes, debentures, bonds, or other obligations; except 
that the aggregate amount of such obligations outstanding at any one 
time may not exceed $100,000,000. Any such obligation shall be repaid 
to the Treasury within one year after the date of issue of such 
obligation. Any such obligation shall bear interest at a rate 
determined by the Secretary of the Treasury, taking into consideration 
the current average market yield on outstanding marketable obligations 
of the United States of comparable maturities during the month 
preceding the issuance of any obligation authorized by this subsection. 
The Secretary of the Treasury shall purchase any obligation of the 
Corporation issued under this subsection, and for such purchase the 
Secretary may use as a public debt transaction the proceeds of the sale 
of any securities issued under chapter 31 of title 31, United States 
Code. The purpose for which securities may be issued under chapter 31 
of title 31, United States Code, shall include any such purchase.

SEC. 5105. GUIDELINES AND REQUIREMENTS FOR OPIC SUPPORT.

    (a) Development Impact Profile.--In order to carry out the policy 
set forth in section 5101(b)(1), the Corporation shall prepare and 
maintain for each investment project it insures, reinsures, or finances 
a development impact profile consisting of data appropriate to measure 
the projected and actual effects of such project on development.
    (b) Small Business Development.--
            (1) Broadened participation by small businesses.--The 
        Corporation shall undertake, in cooperation with appropriate 
        departments, agencies, and instrumentalities of the United 
        States as well as private entities and others, to broaden the 
        participation of United States small business, cooperatives, 
        and other small United States investors in the development of 
        small private enterprise in less developed friendly countries 
        or areas.
            (2) Preferential consideration.--The Corporation shall 
        undertake to the maximum degree possible consistent with its 
        purposes--
                    (A) to give preferential consideration in its 
                investment insurance, reinsurance, financing, and 
                investment encouragement activities to investment 
                projects sponsored by or involving United States small 
                business or cooperatives;
                    (B) to maintain the proportion of projects 
                sponsored by or significantly involving United States 
                small business to at least 30 per centum of all 
                projects insured, reinsured, financed or encouraged by 
                the Corporation.
    (c) Environmental Considerations.--
            (1) Environmental, health, or safety hazard.--The 
        Corporation shall refuse to insure, reinsure, or finance any 
        investment in connection with a project which the Corporation 
        determines will pose an unreasonable or major environmental, 
        health, or safety hazard, or will result in the significant 
        degradation of national parks or similar protected areas.
            (2) Resource sustainable development.--The Corporation, in 
        determining whether to provide insurance, reinsurance, or 
        financing for a project, shall ensure that the project is 
        consistent with the goals set forth in section 7210 of this 
        Act.
            (3) Environmental impact statements and assessments.--The 
        requirements of section 7210(b) relating to environmental 
        impact statements and environmental assessments shall apply to 
        any investment which the Corporation insures, reinsures, 
        guarantees, or finances under this chapter in connection with a 
        project in a country.
            (4) Notification of foreign governments.--Before finally 
        providing insurance, reinsurance, guarantees, or financing 
        under this chapter for any environmentally sensitive investment 
        in connection with a project in a country, the Corporation 
        shall notify appropriate government officials of that country 
        of--
                    (A) all guidelines and other standards adopted by 
                the International Bank for Reconstruction and 
                Development and any other international organization 
                relating to the public health or safety or the 
                environment which are applicable to the project; and
                    (B) to the maximum extent practicable, any 
                restriction under any law of the United States relating 
                to public health or safety or the environment that 
                would apply to the project if the project were 
                undertaken in the United States.
The notification under the preceding sentence shall include a summary 
of the guidelines, standards, and restrictions referred to in 
subparagraphs (A) and (B).
            (5) Consideration of comments received.--Before finally 
        providing insurance, reinsurance, or financing for any 
        investment subject to paragraph (4), the Corporation shall take 
        into account any comments it receives on the project involved.
    (d) Human Rights.--The Corporation shall take into account in the 
conduct of its programs in a country, in consultation with the 
Secretary of State, all available information about observance of and 
respect for human rights and fundamental freedoms in such country and 
the effect the operation of such programs will have on human rights and 
fundamental freedoms in such country.
    (e) Worker Rights.--
            (1) Limitation on opic activities.--The Corporation may 
        insure, reinsure, or finance a project only if the country in 
        which the project is to be undertaken is taking steps to adopt 
        and implement laws that extend internationally recognized 
        worker rights, as defined in section 502(a)(4) of the Trade Act 
        of 1974 (19 U.S.C. 2462(a)(4)), to workers in that country 
        (including any designated zone in that country). The 
        Corporation shall also include the following language, in 
        substantially the following form, in all contracts which the 
        Corporation enters into with eligible investors to provide 
        financial support under this chapter: ``The investor agrees not 
        to take actions to prevent employees of the foreign enterprise 
        from lawfully exercising their right of association and their 
        right to organize and bargain collectively. The investor 
        further agrees to observe applicable laws relating to a minimum 
        age for employment of children, acceptable conditions of work 
        with respect to minimum wages, hours of work, and occupational 
        health and safety, and not to use forced labor. The investor is 
        not responsible under this paragraph for the actions of a 
        foreign government.''.
            (2) Use of annual reports on worker rights.--The 
        Corporation shall, in making its determinations under paragraph 
        (1), use the reports submitted to the Congress pursuant to 
        section 505(c) of the Trade Act of 1974 (19 U.S.C. 2465(c)).
            (3) Waiver.--Paragraph (1) shall not prohibit the 
        Corporation from providing any insurance, reinsurance, or 
        financing with respect to a country if the President determines 
        that such activities by the Corporation would be in the 
        national economic interests of the United States. Any such 
        determination shall be reported in writing to the Congress, 
        together with the reasons for the determination.
    (f) Harm to Employment in the United States.--
            (1) Replacement of united states production.--(A) The 
        Corporation shall refuse to insure, reinsure, or finance an 
        investment if the Corporation determines that such investment 
        is likely to cause such investor (or the sponsor of an 
        investment project in which such investor is involved) 
        significantly to reduce the number of the investor's or 
        sponsor's employees in the United States because the investor 
        or sponsor is replacing his or her United States production 
        with production from such investment, and the production from 
        such investment involves substantially the same product for 
        substantially the same market as the investor's or sponsor's 
        United States production.
             (B) If the Corporation determines that an investment is 
        not likely to have the effects described in subparagraph (A), 
        the Corporation shall monitor conformance with the 
        representations made by the investor on which the Corporation 
        relied in making that determination.
            (2) Reduction of employees in the united states.--The 
        Corporation shall refuse to insure, reinsure, or finance an 
        investment if the Corporation determines that such investment 
        is likely to cause a significant reduction in the number of 
        employees in the United States.
            (3) Export processing zones.--Notwithstanding any other 
        provision of law, the Corporation shall refuse to insure, 
        reinsure, or finance an investment 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 such assistance is not likely to 
        cause a loss of jobs within the United States as determined in 
        consideration of the restrictions contained in paragraphs (1) 
        and (2).
    (g) Performance Requirements.--The Corporation shall refuse to 
insure, reinsure, or finance an investment which is subject to 
performance requirements which would reduce substantially the positive 
trade benefits likely to accrue to the United States from the 
investment.
    (h) Prohibited Trade Practices.--
            (1) Payments to violators barred.--No payment may be made 
        under any insurance or reinsurance which is issued under this 
        chapter on or after April 24, 1978, for any loss occurring with 
        respect to a project, if the preponderant cause of such loss 
        was an act by the investor seeking payment under this chapter, 
        by a person possessing majority ownership and control of the 
        investor at the time of the act, or by any agent of such 
        investor or controlling person, and a court of the United 
        States has entered a final judgment that such act constituted a 
        violation of section 30A of the Securities Exchange Act of 1934 
        or section 104 of the Foreign Corrupt Practices Act of 1977.
            (2) Regulations.--The Corporation shall have in effect 
        regulations setting forth appropriate conditions under which 
        any person who has been finally determined by a court of the 
        United States to have violated section 30A of the Securities 
        Exchange Act of 1934 or section 104 of the Foreign Corrupt 
        Practices Act of 1977 shall be suspended, for a period of not 
        more than 5 years, from eligibility to receive any insurance, 
        reinsurance, guarantee, financing, or other financial support 
        authorized by this chapter, if that violation related to a 
        project insured, reinsured, guaranteed, financed, or otherwise 
        supported by the Corporation under this chapter.
    (i) Fraud or Misrepresentation.--No payment may be made under any 
guarantee, insurance, or reinsurance issued under this chapter for any 
loss arising out of fraud or misrepresentation for which the party 
seeking payment is responsible.
    (j) Public Hearing.--The Board shall hold at least one public 
hearing each year in order to afford an opportunity for any person to 
present views as to whether the Corporation is carrying out its 
activities in accordance with this chapter 1 and this section or 
whether any investment in a particular country shall have been or shall 
be extended insurance, reinsurance, or financing under this chapter.
    (k) Restrictions.--Restrictions in this or any other Act to the 
government of a country do not apply with respect to this title.

                Chapter 2--Trade and Development Agency

SEC. 5201. PURPOSES.

    The Trade and Development Agency shall be an agency of the United 
States under the foreign policy guidance of the Secretary of State. The 
purpose of the Trade and Development Agency is to promote United States 
private sector participation in developing and middle-income countries.

SEC. 5202. AUTHORITY TO PROVIDE ASSISTANCE.

    (a) Authority.--The Director of the Trade and Development Agency is 
authorized to work with foreign countries to carry out the purposes of 
this chapter by providing funds for feasibility studies, architectural 
and engineering design, and other activities related to development 
projects which provide opportunities for the use of United States 
exports.
    (b) Use of Funds.--Funds under this chapter may be used to provide 
support for feasibility studies for planning, development, and 
management of, and procurement for, bilateral and multilateral 
development projects, including training activities undertaken in 
connection with a project, for the purpose of promoting the use of 
United States goods and services in such projects. Funds under this 
chapter may also be used for architectural and engineering design, 
including--
            (1) concept design, which establishes the basic technical 
        and operational criteria for a project, such as architectural 
        drawings for a proposed facility, evaluation of site 
        constraints, procurement requirements, and equipment 
        specifications; and
            (2) detail design, which sets forth specific dimensions and 
        criteria for structural, mechanical, electrical, and 
        architectural operations, and identifies other resources 
        required for project operations.
    (c) Information Dissemination.--
            (1) The Trade and Development Agency shall disseminate 
        information about its project activities to the private sector.
            (2) Other agencies of the United States Government shall 
        cooperate with the Trade And Development Agency in order for 
        the Agency to provide more effectively informational services 
        to persons in the private sector concerning trade and 
        development and export promotion related to development 
        projects.
    (d) Nonapplicability of Other Provisions.--Funds made available to 
carry out this chapter may be made available notwithstanding any other 
provision of law.

SEC. 5203. AVAILABILITY OF FUNDS.

    Funds shall be available to carry out the provisions of this 
chapter as authorized and appropriated to the President each fiscal 
year.

                  Chapter 3--Role of Related Programs

SEC. 5301. STATEMENT OF POLICY REGARDING ROLE OF PUBLIC LAW 480 TITLE I 
              PROGRAMS.

            (1) Public Law 480 Title I programs provide an important 
        resource in the efforts of the United States to support 
        continued growth in the world economy.
            (2) By using the abundant agricultural productivity of the 
        United States to enhance the food security of developing 
        countries, these programs complement other international 
        programs of the United States to--
                    (A) help to combat world hunger and malnutrition 
                and their causes,
                    (B) promote broad-based, equitable, and sustainable 
                development,
                    (C) expand international trade, and
                    (D) develop and expand export markets for United 
                States agricultural commodities.
            (3) By fostering the demand for United States agricultural 
        commodities and helping to meet the food needs of developing 
        countries that have difficulty meeting those needs through 
        commercial channels, Public Law 480 title I programs are an 
        integral part of United States efforts to encourage expansion 
        of the world economy and the participation of the United States 
        private sector in that expansion.

SEC. 5302. STATEMENT OF POLICY REGARDING ROLE OF EXPORT-IMPORT BANK.

    (1) While the Export-Import Bank of the United States does not 
provide foreign assistance, its programs can complement sustainable 
development programs in helping to expand United States exports.
    (2) The purpose of the Export-Import Bank of the United States is 
to provide financing support for United States exports, thereby 
creating and maintaining jobs in the United States.
    (3) The role of the Export-Import Bank of the United States is an 
important factor in bolstering global free trade and fair trade, and 
its programs help to level the global playing field in export 
financing.
    (4) The Export-Import Bank of the United States is an important 
supplement to the private sector's export financing capacities for 
creating and maintaining jobs.
    (5) With one out of every six manufacturing jobs in the United 
States dependent on exports, it is necessary to promote trade with both 
existing and developing markets.
    (6) The programs of the Export-Import Bank of the United States 
serve to provide inroads for United States exporters into developing 
country markets.
    (7) The role of the Export-Import Bank of the United States in 
providing trade and project finance supports United States domestic 
employment and global economic growth and development.

                     TITLE VI--ADVANCING DIPLOMACY

SEC. 6001. STATEMENT OF POLICY.

    (1) Success in achieving the goals of this Act depends above all on 
the skills of those who serve America in the Department of State and 
other United States government departments and agencies engaged in 
international programs.
    (2) Diplomacy is the most cost-effective foreign policy instrument 
for promoting American prosperity and safeguarding United States 
security by managing crises and preventing future conflict.
    (3) United States leadership in addressing emerging global 
challenges will depend increasingly on skillful diplomacy to build 
cooperative arrangements with major allies and multilateral 
organizations that leverage our political influence, and our economic, 
technical, military and humanitarian assistance.
    (4) Diplomacy is essential to the realization of each of the five 
other Titles of this Act--
            (A) Promoting Sustainable Development requires integrated 
        and coordinated efforts between diplomats and aid specialists 
        to deal with immediate environmental, economic, and cultural 
        challenges and opportunities abroad while building the 
        foundation for long-term bilateral, regional and global 
        cooperation.
            (B) Promoting Democracy requires foreign affairs 
        professionals in the Department of State and other United 
        States government departments and agencies engaged in 
        international programs to reach out beyond traditional 
        bilateral and multilateral relations to inform foreign publics 
        about the virtues and challenges of democracy and market 
        economics and to promote human rights, democratic institution 
        building, and development of open, civil societies.
            (C) Promoting Peace requires creative and sustained 
        diplomacy--backed by economic, technical, humanitarian and 
        military resources--to avert conflict, facilitate negotiated 
        resolution of disputes, and render peace processes 
        irreversible; and to build regimes to restrain proliferation, 
        narcotics trafficking, terrorism and other forms of criminal 
        activity.
            (D) Humanitarian Assistance requires diplomats and other 
        involved United States government personnel to respond promptly 
        to facilitate bilateral relief, engage relevant multilateral 
        organizations, and ensure that relief programs do not become 
        objects of political manipulation locally or among donor 
        agencies; at the same time, effective preventive diplomacy can 
        forestall costly political and military disasters.
            (E) Promoting Growth Through Trade and Investment requires 
        diplomats with advanced technical knowledge, legal skills, and 
        shrewd political judgment to assist economic reform, develop 
        commercial opportunities, and structure regional and global 
        agreements to achieve more open markets and greater economic 
        integration.
    (5) Advancing diplomacy in all of the above areas will require--
            (A) Funds that can be used flexibly by the President to 
        respond decisively to unforeseen opportunities and dangers and 
        for structuring new multilateral arrangements that can become 
        the basis for sustainable cooperation to prevent future crises 
        and solve long-term problems.
            (B) Foreign assistance, public diplomacy abroad, and a 
        national consensus at home in support of the goals of American 
        foreign policy.
            (C) Modern technology and infrastructure to support foreign 
        and civil service professionals who must deal with 
        international transactions that are rising exponentially in 
        volume, speed and complexity.
            (D) Greater harmonization of our foreign affairs 
        institutions and instruments, with a view to avoiding 
        duplicative administrative structures, staffs and programs.

TITLE VII--SPECIAL AUTHORITIES, RESTRICTIONS ON ASSISTANCE, AND REPORTS

                     Chapter 1--Special Authorities

SEC. 7101. AUTHORITY TO TRANSFER BETWEEN ACCOUNTS.

    (a) General Transfer Authority.--Whenever the President determines 
it to be necessary for the purposes of this Act, not to exceed 10 per 
centum of the funds made available to carry out any provision of this 
Act--
            (1) may be transferred to, and consolidated with, the funds 
        in any other account or fund available to carry out any 
        provision of this Act; and
            (2) may be used for any of the purposes for which funds in 
        that account or fund may be used.
    (b) Limitation on Amount of Increase in an Account.--The total 
amount in the account or fund for the benefit of which a transfer is 
made under subsection (a) during any fiscal year may not be increased 
by more than 20 per centum of the amount of funds otherwise made 
available for such account or fund.
    (c) Exceptions.--
            (1) The percentage limitations contained in subsections (a) 
        and (b) shall not be applicable with regard to transfers of 
        funds to carry out the provisions of subchapter A of chapter 1 
        of title II or of chapter 1 of title III.
            (2) The authority of this section shall not be used to 
        transfer funds from amounts made available to carry out the 
        provisions of title I of this Act, except that the authority of 
        this section may be used to transfer such funds for the 
        purposes of section 8509 in an amount not to exceed 5 per 
        centum of the amount of the funds made available for section 
        8509(a).
    (d) Notification to Congress.--The authority of subsection (a) may 
be exercised only if 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 are 
notified in advance of the exercise of that authority.

SEC. 7102. SPECIAL WAIVER AUTHORITY.

    (a) Authority.--The President may authorize the taking of any 
action (or the refraining from the taking of any action) under this 
Act, any annual (or periodic) foreign assistance authorization or 
appropriations Acts, or the Arms Export Control Act without regard to 
any of the provisions described in subsection (c) if he determines--
            (1) in cases under the Arms Export Control Act, that to do 
        so is essential to the national interests of the United States; 
        and
            (2) in any other cases under such Acts, that to do so is 
        important to the national interests of the United States.
    (b) Other Acts.--The President may authorize the taking of any 
action (or the refraining from the taking of any action) under any 
other Act without regard to the provisions described in paragraphs (1) 
and (2) of subsection (c), or of any annual (or periodic) foreign 
assistance authorization or appropriations Acts, if the President 
determines that to do so is important to the national interest of the 
United States.
    (c) Laws Which May Be Waived.--The provisions referred to in 
subsections (a) and (b) are--
            (1) the provisions of this Act,
            (2) the provisions of the Arms Export Control Act,
            (3) any other provisions of law that restrict the authority 
        to provide assistance, make sales or leases, or take other 
        actions (or refrain from taking actions) under the Acts in 
        paragraphs (1) and (2), and
            (4) any law relating to receipts and credits accruing to 
        the United States, except for those provisions of law contained 
        in section 8551(a)(7).
    (d) Consultation With Congress.--Before exercising the authority 
granted in this section, the President shall consult with, and shall 
provide a written policy justification to, 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.
    (e) Notification to Congress.--A determination under subsection (a) 
or (b) shall be effective only if the President notifies the Speaker of 
the House of Representatives and the chairman of the Committee on 
Foreign Relations of the Senate, in writing, of that determination.
    (f) Annual Ceilings.--
            (1) In general.--The authority of this section may not be 
        used in any fiscal year to authorize--
                    (A) more than $1,000,000,000 in sales or leases to 
                be made under the Arms Export Control Act;
                    (B) the use of more than $500,000,000 of funds made 
                available for use under this Act; and
                    (C) the use of more than $100,000,000 of foreign 
                currencies accruing under this Act or any other law.
            (2) Sales under the arms export control act.--If the 
        authority of this section is used both to authorize a sale or 
        lease under the Arms Export Control Act and to authorize funds 
        to be used under this Act with respect to the financing of that 
        sale or lease, then the use of the funds shall be counted 
        against the limitation in paragraph (1)(B) and the portion, if 
        any, of the sale or lease which is not so financed shall be 
        counted against the limitation in paragraph (1)(A).
            (3) Leases.--For purposes of paragraph (1)(A) the 
        replacement cost, less any depreciation in the value, of the 
        defense articles authorized to be leased shall be counted 
        against the limitation in that paragraph.
            (4) Country limits.--(A) Not more than $100,000,000 of the 
        $500,000,000 limitation provided in paragraph (1)(B) may be 
        allocated to any one country in any fiscal year unless that 
        country is a victim of active aggression.
            (B) Not more than $750,000,000 of the aggregate limitation 
        of $1,500,000,000 provided in paragraphs (1)(A) and (1)(B) may 
        be allocated to any one country in any fiscal year.

SEC. 7103. UNANTICIPATED CONTINGENCIES.

    (a) Authority.--Notwithstanding any other provision of law, the 
President is authorized to use funds made available to carry out any 
provision of this Act in order to furnish, for any unanticipated 
contingency, assistance or contributions authorized by any provision of 
this Act in accordance with the provisions applicable to the furnishing 
of such assistance or contributions.
    (b) Annual Ceiling.--The authority of this section may not be used 
to authorize the use of more than $100,000,000 during any fiscal year.
    (c) Report to Congress.--The President shall report promptly to the 
Speaker of the House of Representatives and to the Committee on Foreign 
Relations and the Committee on Appropriations of the Senate each time 
the authority of this section is exercised.
    (d) Prohibition on Gifts.--Funds used under the authority of this 
section may not be used to pay for any gifts to any official of any 
foreign government.

SEC. 7104. ASSISTANCE FOR LAW ENFORCEMENT AGENCIES.

    (a) Statement of Policy.--
            (1) In many countries, law enforcement agencies may lag 
        behind other institutions in their development as democratic 
        organizations and in their ability to contribute to civilian 
        order and may lack autonomy from military authorities.
            (2) Absent external assistance and encouragement, such 
        agencies may, in fact, undermine civilian democratic rule.
            (3) United States and international assistance to these 
        agencies may therefore be critical for the support of fragile 
        and emerging democracies.
    (b) Uses of Assistance.--In addition to assistance provided in 
support of the functions of law enforcement agencies under chapter 4 of 
title III, assistance may be provided under other provisions of this 
Act in support of the functions of law enforcement agencies only:
            (1) to reinforce the civilian democratic role of agencies 
        through, to the extent practicable as part of a larger effort 
        to support the development of the administration of justice in 
        the country--
                    (A) programs to enhance professionalism (including 
                programs to improve investigative and forensic 
                capabilities, to enhance protection of participants in 
                judicial cases, and to improve administrative and 
                management functions);
                    (B) contacts with counterparts in established 
                democracies; and
                    (C) programs designed to enhance respect for human 
                rights and understanding of principles of civilian 
                control in a democratic society;
            (2) to enhance the practical accountability of law 
        enforcement agencies to civil justice institutions;
            (3) to improve penal institutions and the rehabilitation of 
        offenders when doing so is considered part of a larger 
        administration of justice program;
            (4) to assist a country which has a democratic tradition, 
        does not have standing armed forces, and does not engage in a 
        consistent pattern of gross violations of internationally 
        recognized human rights;
            (5) for maritime law enforcement and other maritime skills, 
        including training;
            (6) to protect and maintain wildlife habitats and to 
        develop sound wildlife management and plant conservation 
        programs;
            (7) to improve the functioning of customs agencies, 
        exclusive of traditional law enforcement activities;
            (8) for assistance to police forces in connection with 
        their participation in the regional security system of the 
        Eastern Caribbean; and
            (9) to meet the challenges described in section 2102(a)(3).
    (c) Other Assistance.--Funds made available to carry out the 
provisions of title I, and chapter 2 of title IV (insofar as such funds 
are used for reconstruction activities), may be used in support of law 
enforcement functions only pursuant to subsections (b)(1), (2), and (6) 
of this section.

SEC. 7105. TERMINATION EXPENSES.

    (a) In General.--Funds made available under this Act, the former 
authority of the Foreign Assistance Act of 1961, the former authority 
of section 23 of the Arms Export Control Act, or other predecessor 
legislation shall remain available for obligation for a period not to 
exceed 8 months from the date of any termination of assistance under 
such Acts for the necessary expenses of winding up programs related to 
such termination and may remain available until expended. Funds 
obligated under the authority of such Acts prior to the effective date 
of the termination of assistance may remain available for expenditure 
for the necessary expenses of winding up programs related to such 
termination notwithstanding any provision of law restricting the 
expenditure of funds. In order to ensure the effectiveness of such 
assistance, such expenses for orderly termination of programs may 
include the obligation and expenditure of funds to complete the 
training or studies outside their countries of origin of students whose 
course of study or training program began before assistance was 
terminated.
    (b) Liability to Contractors.--For the purpose of making an 
equitable settlement of termination claims under extraordinary 
contractual relief standards, the President is authorized to adopt as a 
contract or other obligation of the United States Government, and 
assume (in whole or in part) any liabilities arising thereunder, any 
contract with a United States or third-country contractor that had been 
funded with assistance under such Acts prior to the termination of 
assistance.
    (c) Termination Expenses.--Amounts certified as having been 
obligated for assistance subsequently terminated by the President, or 
pursuant to any provision of law, shall continue to remain available 
and may be reobligated to meet any necessary expenses arising from the 
termination of such assistance.
    (d) Guaranty Programs.--Provisions of this or any other Act 
requiring the termination of assistance under this or any other Act 
shall not be construed to require the termination of guarantee 
commitments that were entered into prior to the effective date of the 
termination of assistance.
    (e) Relation to Other Provisions.--Unless specifically made 
inapplicable by another provision of law, the provisions of this 
section shall be applicable to the termination of assistance pursuant 
to any provision of law.

SEC. 7106. EXEMPTION OF ASSISTANCE THROUGH NONGOVERNMENTAL 
              ORGANIZATIONS FROM RESTRICTIONS.

    (a) Restrictions Not Applicable.--Subject to subsection (c), 
restrictions contained in this or any other Act with respect to 
assistance for a country shall not be construed to restrict assistance 
in support of programs of nongovernmental organizations or programs of 
international organizations or arrangements.
    (b) National Interest Criteria.--The President shall take into 
consideration, in any case in which a restriction on assistance would 
be applicable but for this section, whether assistance for programs of 
nongovernmental organizations or programs of international 
organizations or arrangements is in the national interest of the United 
States.
    (c) Notice to Congress.--Whenever the authority of this section is 
used to furnish assistance for a program of a nongovernmental 
organization or of an international organization or arrangement, the 
President shall notify 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. Such notification shall describe the program assisted, the 
assistance provided, and the reasons for furnishing such assistance.

SEC. 7107. EXEMPTION OF TRAINING ACTIVITIES FROM PROHIBITIONS.

    Provisions of this or any other Act shall not be construed to 
prohibit assistance for any training activity funded under this Act for 
a country as long as that country has a democratically elected 
government and the assistance is otherwise consistent with section 
7201(a)(1), section 7201(a)(2) and section 7201(a)(5).

SEC. 7108. NONAPPLICABILITY TO DEFENSE ASSISTANCE OF CERTAIN NEUTRALITY 
              ACT PROVISIONS.

    The functions authorized under this Act may be performed without 
regard to such provisions as the President may specify of the 
Neutrality Act of 1939.

SEC. 7109. EXEMPTION FROM PROHIBITIONS FOR ASSISTANCE TO ADDRESS 
              CERTAIN SPECIAL NEEDS.

    (a) Exemption.--Unless expressly provided to the contrary, 
provisions of this or any other Act, including provisions in previously 
enacted legislation, shall not be construed to prohibit the following 
activities:
            (1) meeting the needs of individuals with disabilities;
            (2) addressing the needs of displaced children;
            (3) child survival activities;
            (4) the prevention and control of acquired immune 
        deficiency syndrome (AIDS);
            (5) environmentally sound, sustainable resource management, 
        and more efficient energy systems;
            (6) reconstruction as a result of natural or manmade 
        disasters; or
            (7) helping to reduce excessive population growth rates.
    (b) Exceptions.--Subsection (a) does not apply to governments of 
countries to which assistance is prohibited under paragraphs (2) and 
(5) of section 7201(a).

SEC. 7110. AUTHORITY TO CONDUCT REIMBURSABLE PROGRAMS.

    (a) General Authority.--Whenever the President considers it 
consistent with and within the limitations of this Act, any agency of 
the United States Government is authorized to furnish services and 
articles on an advance-of-funds or reimbursement basis to friendly 
countries, international organizations and arrangements, and 
nongovernmental organizations and may contract in advance of 
appropriations or reimbursement for such purposes.
    (b) Personal Service Contracts.--When any agency of the United 
States Government provides services on an advance-of-funds or 
reimbursable basis under this section, such agency may contract with 
individuals for personal service abroad or in the United States to 
perform such services or to replace officers or employees of the United 
States Government in a manner otherwise permitted by law (or Office of 
Management and Budget Circular A-76 or any successor circular) who are 
assigned by the agency to provide such services. Such individuals shall 
not be regarded as employees of the United States Government for the 
purpose of any law administered by the Office of Personnel Management.
    (c) Limitations on Assistance Not Applicable.--Limitations in this 
or any other Act on assistance do not apply with respect to this 
section.
    (d) Use of Payments.--Advances and reimbursements received under 
this section may either be credited to the currently applicable 
appropriation, account, or fund of the agency concerned or shall be 
available until expended.

SEC. 7111. DRAWDOWN AUTHORITY.

    (a) Unforeseen Emergencies.--If the President determines that--
            (1) an unforeseen emergency exists which requires immediate 
        military assistance to a foreign country or international 
        organization, and
            (2) the emergency requirement cannot be met under the 
        authority of the Arms Export Control Act or any other law 
        except this section,
the President may direct, for the purposes of this Act, the drawdown of 
articles and services, of an aggregate value not to exceed $100,000,000 
in any fiscal year, from the inventory and resources of the Department 
of Defense.
    (b) Special Circumstances.--If the President determines that it is 
in the national interest of the United States to do so, the President 
may direct the drawdown of articles and services, of an aggregate value 
not to exceed $150,000,000 in any fiscal year, from the inventory and 
resources of any agency of the United States Government for the 
purposes and under the authorities of--
            (1) chapter 4 of title III of this Act;
            (2) chapter 1 of title IV of this Act; or
            (3) chapter 2 of title IV of this Act.
    (c)(1) The authority of this section may be exercised only if 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 are notified in advance of 
the exercise of that authority.
    (2) Continuing Information.--The President shall keep the Congress 
fully and currently informed of all articles and services provided 
under this section.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the President such sums as may be necessary to 
reimburse the applicable appropriation, fund, or account for articles 
and services provided under this section.

SEC. 7112. INTEREST ACCRUING TO NONGOVERNMENTAL ORGANIZATIONS.

    Upon the approval of the President, a nongovernmental organization 
may place in an interest bearing account--
            (1) funds made available on a grant basis under this Act 
        (or predecessor legislation); and
            (2) local currencies which accrue to that organization as a 
        result of grant assistance provided under this Act (or 
        predecessor legislation) 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, which may include support for an 
endowment.

SEC. 7113. DEVELOPMENT EDUCATION.

    The President may use funds made available for sustainable 
development assistance under this Act to support development education 
programs, with emphasis on those conducted by private voluntary 
organizations and cooperatives, in order to assist in the education of 
United States citizens about developing countries, the development 
process, the interdependence of developed and developing countries, and 
the importance to the United States of developing countries.

SEC. 7114. STRENGTHENING THE CAPACITY OF NONGOVERNMENTAL ORGANIZATIONS, 
              INCLUDING RESEARCH AND EDUCATIONAL INSTITUTIONS.

    The President may use funds made available for assistance under 
this Act to furnish assistance to nongovernmental organizations, 
including research and educational institutions, in the United States 
and abroad for the purpose of strengthening their capacity to develop 
and carry out programs concerned with the economic and social 
development of developing countries.

SEC. 7115. VIOLATIONS OF INTERNATIONAL HUMANITARIAN LAW.

    (a) Authority for Use of Funds.--The President may use funds made 
available to carry out the purposes of chapters 1 and 4 of title III of 
this Act to support activities of international tribunals, commissions, 
or panels to investigate or prosecute persons responsible for genocide, 
crimes against humanity, and other violations of international 
humanitarian law.
    (b) Drawdown Authority.--If the President determines that doing so 
is important to support the activities described in subsection (a), the 
President may direct the drawdown of articles and services, of an 
aggregate value not to exceed $25,000,000 in any fiscal year, from the 
inventory and resources of any agency of the United States.
    (c) Reimbursement.--There are authorized to be appropriated to the 
President such sums as may be necessary to reimburse the applicable 
appropriation, fund, or account for articles and services provided 
under this subsection (b).

SEC. 7116. LAWS RELATING TO CONTRACTS AND GOVERNMENT EXPENDITURES.

    Whenever the President determines it to be in furtherance of the 
purposes of this Act, the functions authorized under this Act may be 
performed without regard to such provisions of law regulating the 
making, performance, amendment, or modification of contracts and the 
expenditure of funds of the United States Government as the President 
may specify, except for those provisions contained in section 
8551(a)(7) of this Act.

SEC. 7117. TRANSPORTATION CHARGES INCURRED BY THE RED CROSS AND 
              NONGOVERNMENTAL ORGANIZATIONS.

    In order to further the efficient use of United States voluntary 
contributions for development and for relief and rehabilitation in 
furtherance of the purposes of this Act, the President may use funds 
made available for assistance under this Act, to pay transportation 
charges on shipments by the American National Red Cross and by United 
States nongovernmental organizations.

                 Chapter 2--Restrictions on Assistance

SEC. 7201. INELIGIBLE COUNTRIES.

    (a) Restrictions.--Except as provided in subsection (b), assistance 
under this Act may not be furnished to the government of a country that 
is:
            (1) Communist countries.--A communist country, as 
        designated under subsection (d).
            (2) Human rights violators.--A country described in 
        subsection (e).
            (3) Expropriation of united states property.--A country 
        whose government--
                    (A) has on or after January 1, 1962--
                            (i) expropriated the property of any United 
                        States person,
                            (ii) repudiated or nullified any contract 
                        with any United States person, or
                            (iii) taken any other action (such as 
                        discriminatory taxes or other exactions) which 
                        has the effect of seizing ownership or control 
                        of the property of any United States person, 
                        and
                    (B) has not within a reasonable period of time 
                provided adequate and effective compensation or is not 
                engaged in good faith efforts to negotiate a 
                settlement, if the United States person has exhausted 
                host country legal and other formal remedies.
            (4) Military coups.--A country whose duly-elected Head of 
        Government is deposed by military coup or decree unless 
        subsequent to the military coup or decree a democratically-
        elected government has taken office.
            (5) Terrorist countries.--A country whose government the 
        President determines repeatedly provides support for acts of 
        international terrorism.
            (6) Major illicit drug producing or major drug transit 
        countries.--A country described in section 7206.
            (7) Countries in arrears.--A country that is more than one 
        year in arrears to the United States Government on any payment 
        of interest or principal on any loan made or credit extended 
        under this Act, the Arms Export Control Act, or the former 
        authorities of the Foreign Assistance Act of 1961.
    (b) Exceptions.--
            (1) In general.--Funds may be obligated and expended for 
        assistance restricted by subsection (a), or other provisions of 
        law that restrict assistance to countries, under any of the 
        following circumstances:
                    (A) National interest.--The President determines 
                that the furnishing of such assistance is important to 
                the national interests of the United States.
                    (B) Alleviating suffering resulting from a 
                disaster.--The assistance is for the alleviation of 
                suffering resulting from a natural or manmade disaster.
                    (C) Directly benefitting the needy.--The assistance 
                will directly benefit the needy people in the country.
                    (D) Refugees and displaced persons.--The assistance 
                is for the purposes described in section 4101(b).
                    (E) Promoting human rights and democracy.--The 
                assistance will be furnished through nongovernmental 
                organizations to directly promote increased respect for 
                internationally recognized human rights and the 
                development of democracy.
            (2) With respect to the restrictions imposed by subsection 
        (g) or any other provision of law to which this subsection 
        applies, references in this subsection to furnishing assistance 
        shall be deemed to include the taking of other action that, but 
        for this subsection, would be restricted by such provision.
    (c) Report to Congress.--Assistance restricted by subsection (a) 
may not be provided under subsection (b) until the President has 
submitted to the Speaker of the House of Representatives and the 
chairman of the Committee on Foreign Relations of the Senate, a report 
with respect to such assistance. Any such report shall include a 
detailed explanation of the assistance to be provided, including the 
estimated dollar amount of such assistance, and an explanation of how 
the assistance meets the criteria specified in subsection (b).
    (d) Communist Country List.--
            (1) Establishment.--The President shall designate those 
        countries that are communist countries for purposes of 
        subsection (a)(1).
            (2) Publication of list.--The initial list of countries 
        designated pursuant to this subsection shall be published in 
        the Federal Register and shall be provided to the Congress. 
        Thereafter, any additions to or deletions from such list shall 
        be similarly published and provided.
            (3) Removal of countries from the list; exemptions.--The 
        President may remove a country from the communist country list 
        established pursuant to this section, or may exempt a listed 
        country from the application of subsection (a)(1) or other 
        provisions of law that reference subsection (a)(1), if the 
        President promptly reports such removal or exemption to the 
        Speaker of the House of Representatives and the chairman of the 
        Committee on Foreign Relations of the Senate.
    (e) Human Rights Violators.--
            (1) Ineligibility.--Subsection (a)(2) shall apply to any 
        country the government of which engages in a consistent pattern 
        of gross violations of internationally recognized human rights.
            (2) Matters to be considered.--In implementing subsection 
        (a)(2), consideration shall be given to the following:
                    (A) The relevant findings of appropriate 
                international organizations and nongovernmental 
                organizations.
                    (B) The extent of cooperation by the government in 
                question in permitting an unimpeded investigation by 
                indigenous nongovernmental organizations, other 
                nongovernmental organizations, and international 
                organizations (such as the International Committee of 
                the Red Cross), of alleged violations of 
                internationally recognized human rights.
                    (C) Specific actions that have been taken by the 
                President or the Congress relating to the human rights 
                practices of the government in question.
                    (D) The likely effect that a determination of 
                ineligibility under this subsection is expected to have 
                on the human rights process of the country concerned.
    (f) Terrorist Countries.--The President shall promptly report to 
the Speaker of the House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate the rescission of a 
determination that the government of a country repeatedly provides 
support for acts of international terrorism.
    (g) Related Restrictions on Assistance.--
            (1) Human rights violators.--Subsection (a)(2) shall be 
        deemed to prohibit, in addition to the furnishing of assistance 
        under this Act--
                    (A) sales of defense articles, defense services, or 
                design and construction services under the Arms Export 
                Control Act;
                    (B) licenses under section 38 of the Arms Export 
                Control Act with respect to the export of defense 
                articles or defense services to or for the armed 
                forces, police, intelligence, or other internal 
                security forces of a foreign country; and
                    (C) licenses required under the Export 
                Administration Act of 1979 for the export of crime 
                control and detection instruments and equipment.
            (2) Terrorist countries.--Subsection (a)(5) shall be deemed 
        to prohibit, in addition to the furnishing of assistance under 
        this Act, the furnishing of assistance under the Agricultural 
        Trade Development and Assistance Act of 1954 and the Peace 
        Corps Act, and the provision of loans, guaranties, and 
        insurance under the Export-Import Bank Act of 1945.
            (3) Major illicit drug producing and major drug transit 
        countries.--
                    (A) Subsection (a)(6) shall be deemed to prohibit, 
                in addition to the furnishing of assistance under this 
                Act, (i) sales under the Arms Export Control Act, (ii) 
                the provision of agricultural commodities other than 
                food under the Agricultural Trade Development and 
                Assistance Act of 1954, and (iii) loans, guarantees and 
                insurance under the Export-Import Bank Act of 1945.
                    (B) Notwithstanding subparagraph (A), subsection 
                (a)(6) shall not be deemed to prohibit (i) disaster 
                relief assistance, refugee assistance or assistance 
                that involves the provision of food (including 
                monetization of food) or medicine (including any such 
                assistance provided under title IV), and (ii) 
                assistance for narcotics education and awareness 
                activities.
                    (C) With respect to any country for which 
                assistance is prohibited under section (a)(6), the 
                President should instruct the United States Executive 
                Director of the International Bank for Reconstruction 
                and Development, the United States Executive Director 
                of the International Development Association, the 
                United States Executive Director of the Inter-American 
                Development Bank, and the United States Executive 
                Director of the Asian Development Bank to vote, during 
                the period in which assistance is prohibited under 
                subsection (a)(6), against any loan or other 
                utilization of the funds of their respective 
                institution to or for any major illicit drug producing 
                country or major drug-transit country, except as 
                provided in subsection (b).

SEC. 7202. IMPACT OF FOREIGN ASSISTANCE PROGRAMS ON JOBS IN THE UNITED 
              STATES.

    Funds made available to carry out the provisions of this Act may 
not be made available 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. 7203. FAMILY PLANNING ACTIVITIES.

    Funds made available to carry out this Act may not be--
            (1) used to coerce any person to practice abortions; or
            (2) used to pay for the performance of involuntary 
        sterilizations or to coerce or provide any financial incentive 
        to any person to undergo sterilizations.

SEC. 7204. COMPETITION WITH UNITED STATES EXPORTS.

    In determining whether to provide assistance under this Act, the 
President should take into consideration whether such assistance would 
be furnished for direct support for any project or activity that is 
specifically designed to increase exports of any agricultural, textile, 
or apparel commodity from a developing country where such exports--
            (1) would be in direct competition with United States 
        exports, and
            (2) can reasonably be expected to cause substantial injury 
        to United States exporters of the same or substantially similar 
        commodity.

SEC. 7205. NUCLEAR NONPROLIFERATION.

    (a) Nuclear Enrichment Transfers.--
            (1) Except as provided in paragraph (2) of this subsection, 
        no funds made available to carry out the provisions of this Act 
        may be used for the purpose of providing assistance, to any 
        country that, on or after the date of enactment of the 
        International Security Assistance Act of 1977, delivers nuclear 
        enrichment equipment, materials, or technology to a nonnuclear 
        weapon state or, if a nonnuclear weapon state, receives such 
        equipment, materials, or technology from any other country, 
        unless before such delivery--
                    (A) the supplying country and receiving country 
                have reached agreement to place all such equipment, 
                materials, or technology, upon delivery, under 
                multilateral auspices and management when available; 
                and
                    (B) the recipient country has entered into an 
                agreement with the International Atomic Energy Agency 
                to place all such equipment, materials, technology, and 
                all nuclear fuel and facilities in such country under 
                the safeguards system of such Agency.
            (2)(A) Notwithstanding paragraph (1) of this subsection, 
        the President may furnish assistance which would otherwise be 
        prohibited under such subsection if he determines and certifies 
        in writing to the Speaker of the House of Representatives and 
        the Committee on Foreign Relations of the Senate that--
                    (i) the termination of such assistance would have a 
                serious adverse effect on vital United States 
                interests; and
                    (ii) the President has received reliable assurances 
                that the country in question will not acquire or 
                develop nuclear weapons or assist other nations in 
                doing so.
        A certification under subparagraph (A) of this paragraph shall 
        set forth the reasons supporting such determination in each 
        particular case.
            (B) A certification under subparagraph (A) of this 
        paragraph shall take effect on the date on which the 
        certification is received by the Congress. However, if, within 
        30 calendar days after receiving this certification, the 
        Congress adopts a joint resolution stating in substance that 
        the Congress disapproves the furnishing of assistance pursuant 
        to the certification, then upon the adoption of that resolution 
        the certification shall cease to be effective and all 
        deliveries of assistance furnished under the authority of that 
        certification shall be suspended immediately.
            (C) Any joint resolution under this paragraph shall be 
        considered in the Senate in accordance with the provisions of 
        section 601(b) of the International Security Assistance and 
        Arms Export Control Act of 1976.
            (D) For the purpose of expediting the consideration and 
        adoption of joint resolutions under this paragraph, a motion to 
        proceed to the consideration of any such resolution after it 
        has been reported by the appropriate committee shall be treated 
        as highly privileged in the House of Representatives.
    (b) Nuclear Reprocessing Transfers, Illegal Exports for Nuclear 
Explosive Devices.--
            (1) Except as provided in paragraph (2) of this subsection, 
        no funds made available to carry out the provisions of this Act 
        may be used for the purpose of providing assistance to any 
        country that--
                    (A) on or after the date of enactment of the 
                International Security Assistance Act of 1977, delivers 
                nuclear reprocessing equipment, materials, or 
                technology to a nonnuclear weapon state or, if a 
                nonnuclear weapon state, receives such equipment, 
                materials, or technology from any other country (except 
                for the transfer of reprocessing technology associated 
                with the investigation, under international evaluation 
                programs in which the United States participates, or 
                technologies which are alternatives to pure plutonium 
                reprocessing); or
                    (B) is a nonnuclear-weapon state which, on or after 
                the date of enactment of the International Security and 
                Development Cooperation Act of 1985, exports illegally 
                or attempts to export illegally from the United States 
                any material, equipment, or technology which would 
                contribute significantly to the ability of such country 
                to manufacture a nuclear explosive device, if the 
                President determines that the material, equipment, or 
                technology was to be used by such country in the 
                manufacture of a nuclear explosive device; for purposes 
                of this subparagraph, an export or attempted export by 
                a person who is an agent of, or is otherwise acting on 
                behalf of or in the interests of, a country shall be 
                considered to be an export or attempted export by that 
                country.
            (2) Notwithstanding paragraph (1) of this subsection, the 
        President may furnish assistance which would otherwise be 
        prohibited under that paragraph if the President determines and 
        certifies in writing to the Speaker of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate that the termination of such assistance would be 
        seriously prejudicial to the achievement of United States 
        nonproliferation objectives or otherwise jeopardize the common 
        defense and security. The President shall transmit with such 
        certification a statement setting forth the specific reasons 
        therefor.
            (3)(A) A certification under paragraph (2) of this 
        subsection shall take effect on the day on which the 
        certification is received by the Congress. However, if, within 
        30 calendar days after receiving this certification, the 
        Congress adopts a joint resolution stating in substance that 
        the Congress disapproves the furnishing of assistance pursuant 
        to the certification, then upon the adoption of that resolution 
        the certification shall cease to be effective and all 
        deliveries of assistance furnished under the authority of that 
        certification shall be suspended immediately.
            (B) Any joint resolution under this paragraph shall be 
        considered in the Senate in accordance with the provisions of 
        section 601(b) of the International Security Assistance and 
        Arms Export Control Act of 1976.
            (C) For the purpose of expediting the consideration and 
        adoption of joint resolutions under this paragraph, a motion to 
        proceed to the consideration of any such resolution after it 
        has been reported by the appropriate committee shall be treated 
        as highly privileged in the House of Representatives.
    (c) Transfers of Nuclear Explosive Devices and Nuclear 
Detonations.--
            (1) Except as provided in paragraphs (2) and (3) of this 
        subsection, no funds made available to carry out the provisions 
        of this Act may be used for the purpose of providing assistance 
        to any country that, on or after the date of enactment of the 
        International Security Assistance Act of 1977--
                    (A) transfers a nuclear explosive device to a 
                nonnuclear-weapon state, or
                    (B) is a nonnuclear-weapon state and either--
                            (i) receives a nuclear explosive device, or
                            (ii) detonates a nuclear explosive device.
            (2)(A) Notwithstanding paragraph (1) of this subsection, 
        the President may, for a period of not more than 30 days of 
        continuous session, furnish assistance which would otherwise be 
        prohibited under paragraph (1) of this subsection if, before 
        furnishing such assistance, the President transmits to the 
        Speaker of the House of Representatives, and to the Chairman of 
        the Committee on Foreign Relations of the Senate, a 
        certification that the President has determined that an 
        immediate termination of assistance to that country would be 
        detrimental to the national security of the United States. Not 
        more than one such certification may be transmitted for a 
        country with respect to the same detonation, transfer, or 
        receipt of a nuclear explosive device.
            (B) If the President transmits a certification to the 
        Congress under subparagraph (A), a joint resolution which would 
        permit the President to exercise the waiver authority of 
        subparagraph (3) of this subsection shall, if introduced in 
        either House within 30 days of continuous session after the 
        Congress receives this certification, be considered in the 
        Senate and House of Representatives in accordance with 
        subparagraphs (C) and (D) of this paragraph.
            (C) Any joint resolution under this paragraph shall be 
        considered in the Senate in accordance with the provisions of 
        section 601(b) of the International Security Assistance and 
        Arms Export Control Act of 1976.
            (D) For the purpose of expediting the consideration and 
        adoption of a joint resolution under this paragraph, a motion 
        to proceed to the consideration of such a joint resolution 
        after it has been reported by the appropriate committee shall 
        be treated as highly privileged in the House of 
        Representatives.
            (E) For purposes of this paragraph, the term ``joint 
        resolution'' means a joint resolution the matter after the 
        resolving clause of which is as follows: ``That the Congress 
        having received on a certification by the President under 
        section 7205(c)(2) of the Peace, Prosperity, and Democracy Act 
        of 1994 with respect to         , the Congress hereby 
        authorizes the President to exercise the waiver authority 
        contained in section 7205(c)(3) of that Act.'', with the date 
        of receipt of the certification inserted in the first blank and 
        the name of the country inserted in the second blank.
            (3) Notwithstanding paragraph (1) of this subsection, if 
        the Congress enacts a joint resolution under paragraph (2) of 
        this subsection, the President may furnish assistance which 
        would otherwise be prohibited under paragraph (1) if he 
        determines and certifies in writing to the Speaker of the House 
        of Representatives and the Committee on Foreign Relations of 
        the Senate that the termination of such assistance would be 
        seriously prejudicial to the achievement of United States 
        nonproliferation objectives or otherwise jeopardize the common 
        defense and security. The President shall transmit with such 
        certification a statement setting forth the specific reasons 
        therefor.
            (4) For purposes of this subsection, continuity of session 
        is broken only by an adjournment of Congress sine die and the 
        days on which either House is not in session because of an 
        adjournment of more than three days to a day certain are 
        excluded in the computation of any period of time in which 
        Congress is in continuous session.
    (d) As used in this section, the term ``nonnuclear-weapon state'' 
means any country which is not a nuclear-weapon state, as defined in 
article IX(3) of the Treaty on the Non-Proliferation of Nuclear 
Weapons.
    (e) Pakistan.--No assistance shall be furnished to Pakistan and no 
military equipment or technology shall be sold or transferred to 
Pakistan, pursuant to the authorities contained in this Act or any 
other Act, unless the President shall have certified in writing to the 
Speaker of the House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate, during the fiscal year in 
which assistance is to be furnished or military equipment or technology 
is to be sold or transferred, that Pakistan does not possess a nuclear 
explosive device and that the proposed United States assistance program 
will reduce significantly the risk that Pakistan will possess a nuclear 
explosive device.

SEC. 7206. MAJOR ILLICIT DRUG PRODUCING AND DRUG TRANSIT COUNTRIES.

    (a) Application of Restriction.--Section 7201(a)(6) shall apply to 
any major illicit drug producing country and any major drug-transit 
country if the President determines, at the time of the submission of 
the report required by section 7303, that during the previous fiscal 
year the country has not cooperated with the United States, and has 
otherwise not taken adequate steps to control the illicit cultivation, 
production, and smuggling of, trafficking in, and abuse of narcotic and 
psychotropic drugs. The President may rescind such a determination, and 
section 7201(a)(6) shall cease to apply, if the President subsequently 
determines that the country has resumed cooperating with the United 
States, or otherwise has taken adequate steps to control the illicit 
cultivation, production, and smuggling of, trafficking in, and abuse of 
narcotic and psychotropic drugs.
    (b) Withholding.--For any country that was a major illicit drug 
producing or drug-transit country (as defined in sections 8551(a)(11) 
and (12)) during the previous fiscal year, the President may withhold 
from obligation or expenditure up to fifty percent of assistance which 
is allocated to such country each fiscal year in the report required by 
section 7304 until the determination provided for in section 7206 is 
made.
    (c) In implementing subsection (a), the President should consider 
the extent to which the country has--
            (1) accomplished the goals described in an applicable 
        bilateral narcotics agreement with the United States or a 
        multilateral agreement;
            (2) investigated and immobilized major organizations 
        involved in the production, processing, or distribution of 
        narcotics and dangerous drugs;
            (3) achieved significant increases in seizures of the 
        proceeds and instrumentalities of the illicit drug trade;
            (4) achieved significant reductions, where applicable, in 
        the net production of illicit narcotic crops through forced or 
        voluntary eradication efforts;
            (5) prevented and punished the laundering in that country 
        of drug-related monies;
            (6) prevented and punished public corruption that 
        facilitates the production, processing, or shipment of narcotic 
        and psychotropic drugs and other controlled substances, or that 
        discourages the investigation or prosecution of such acts;
            (7) processed expeditiously United States and other 
        extradition requests related to narcotics trafficking;
            (8) increased public awareness of the heinous nature of 
        drug abuse and reduced the demand and the consumption of 
        narcotics and dangerous drugs; and
            (9) if it is a producer of licit opium, taken steps to 
        prevent significant diversion of its licit cultivation and 
        production into the illicit market, to maintain production of 
        stockpiles at levels no higher than those consistent with licit 
        market demands, and to prevent illicit cultivation and 
        production.

SEC. 7207. ASSISTANCE FOR ELECTIONS.

    Funds made available for assistance under this Act that are used to 
enhance the independence and performance of electoral processes may not 
be used for the purpose of influencing the outcome of any election in 
any country.

SEC. 7208. ASSIGNMENT OF PERSONNEL.

    (a) Assignment or Detail.--Members of the Armed Forces may be 
assigned or detailed to perform functions related to assistance under 
this Act administered through the Department of Defense, provided they 
not perform duties of a combatant nature, including any duty related to 
training and advising that may engage United States Armed Forces 
personnel in combat activities, outside the United States in connection 
with the performance of those defense services.
    (b) Exception.--The limitation contained in subsection (a) shall 
not apply if the President determines, and reports to the Congress, 
that its application would not be in the national interest of the 
United States.

SEC. 7209. ASSISTANCE LIMITED TO ECONOMIC PROGRAMS.

    (a) In General.--Assistance provided under title I of this Act may 
not be used for military or paramilitary purposes.
    (b) Exception for Certain Programs.--The provisions of subsection 
(a) of this section shall not apply to economic assistance involving 
the participation of military personnel in training activities, 
conferences, and other sustainable development programs consistent with 
the purposes of section 1102.

SEC. 7210. IMPACT OF SUSTAINABLE DEVELOPMENT ASSISTANCE ON ENVIRONMENT 
              AND NATURAL RESOURCES.

    (a) Statement of Policy.--It is the sense of the Congress that--
            (1) 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, and 
        that consumption patterns, systems of industrial and 
        agricultural production, and the manner of use of natural 
        resources all have an impact on the opportunities for long-term 
        development and growth and survival for all countries;
            (2) environmentally responsible management of physical 
        resources is necessary by both developed and developing 
        countries to insure their availability for future generations 
        and to assure that the burdens of improved resource management 
        do not fall disproportionately on the poor;
            (3) sustainable development is development that meets the 
        needs of the present without compromising the ability of future 
        generations to meet their own needs; and
            (4) sustainable development programs authorized by this Act 
        should assist countries to adopt policies and to carry out 
        programs that promote economic growth that is environmentally 
        sound.
    (b) Impact Assessment.--The President, in implementing sustainable 
development programs under this Act, should take fully into account the 
impact of such programs and projects upon the environment and natural 
resources of developing countries. Subject to such procedures as the 
President considers appropriate, the President should--
            (1) prepare and take fully into account an initial 
        environmental examination of every program or project to 
        determine whether it significantly affects the environment;
            (2) prepare and take fully into account an environmental 
        impact statement for any program or project significantly 
        affecting the environment of the global commons outside the 
        jurisdiction of any country, the environment of the United 
        States, or other aspects of the environment which the President 
        may specify; and
            (3) prepare and take fully into account an environmental 
        assessment of any proposed program or project significantly 
        affecting the environment of any foreign country.
Where appropriate, local technical resources should be used in 
preparing environmental impact statements and environmental assessments 
pursuant to this section.
    (c) Exceptions.--The President should establish exceptions for 
emergency conditions and for cases in which implementation of 
procedures described in subsection (b) would be seriously detrimental 
to the foreign policy interests of the United States.

            Chapter 3--Reports and Notifications to Congress

SEC. 7301. CONGRESSIONAL PRESENTATION DOCUMENTS.

    (a) Requirement for Submission.--The President shall prepare, and 
submit to the Congress in a timely manner, annual congressional 
documents for the programs authorized under titles I, II, and III of 
this Act.
    (b) Materials To Be Included.--The documents submitted pursuant to 
subsection (a) shall include--
            (1) the rationale for the allocation of assistance or 
        contributions to each country, regional, or centrally funded 
        program, or activities under section 3102;
            (2) a description of how each program or activity under 
        section 3102 supports the objectives of the title for which 
        such program is being justified including, for programs 
        administered by the United States Agency for International 
        Development, to the extent determined at the time of submission 
        of these documents, the strategic objectives for such programs; 
        and
            (3) a description of planned country, regional, or 
        centrally funded programs or activities under section 3102 for 
        the coming fiscal year.

SEC. 7302. HUMAN RIGHTS POLICY AND REPORTS.

    (a) Promotion of Human Rights.--It is the sense of the Congress 
that the United States should, in accordance with its international 
obligations as set forth in the charter of the United Nations and in 
keeping with the constitutional heritage and traditions of the United 
States, promote and encourage increased respect for human rights and 
fundamental freedoms throughout the world without distinction as to 
race, sex, language, or religion.
    (b) Conduct of Assistance.--In furtherance of subsection (a), the 
President should formulate and conduct United States assistance in a 
manner which will--
            (1) promote and advance human rights;
            (2) strengthen a relationship between civilian and military 
        sectors appropriate to a democratic system of government; and
            (3) avoid identification of the United States, through 
        these programs, with governments which deny to their people 
        internationally recognized human rights and fundamental 
        freedoms in violation of international law or in contravention 
        of the policy of the United States as expressed in this section 
        or otherwise.
    (c) Matters To Be Considered.--In carrying out subsection (b) and 
in preparing the annual reports required by subsection (d), 
consideration should be given to the following:
            (1) The relevant findings of appropriate international 
        organizations and nongovernmental organizations.
            (2) The extent of cooperation by the government in question 
        in permitting an unimpeded investigation by indigenous 
        nongovernmental organizations, other nongovernmental 
        organizations, and international organizations (such as the 
        International Committee of the Red Cross), of alleged 
        violations of internationally recognized human rights.
    (d) Annual Human Rights Report.--In furtherance of subsections (a) 
and (b), the President shall transmit to the Congress, not later than 
January 31 each year, a full and complete report with respect to 
practices regarding the status of internationally recognized human 
rights, regarding whether the country engages in a consistent pattern 
of gross violations of internationally recognized human rights within 
the meaning of section 8551(a)(5). The report shall be submitted with 
respect to every foreign country that is a member of the United 
Nations. Wherever appropriate, such reports shall include information 
on practices regarding coercion in population control, including 
coerced abortion and involuntary sterilization. The report shall also 
include the steps taken to alter United States programs under this Act 
in any country because of human rights considerations.
    (e) Information To Be Provided.--Each annual report under 
subsection (d), shall include--
            (1) information about observance of and respect for human 
        rights and fundamental freedom in the country in question, and
            (2) a detailed description of practices by the recipient 
        government with respect to human rights and fundamental 
        freedom, including where appropriate information provided by 
        organizations, including nongovernmental organizations.

SEC. 7303. INTERNATIONAL NARCOTICS CONTROL REPORT.

    Not later than March 1 of each year, the President shall transmit 
to the Speaker of the House of Representatives, and to the Committee on 
Foreign Relations of the Senate, a comprehensive report on the state of 
international narcotics production and trafficking, and on United 
States efforts to prevent the illicit cultivation and manufacture of 
and trafficking in narcotics and psychotropic drugs and other 
controlled substances.

SEC. 7304. ANNUAL ALLOCATION REPORT.

    (a) Report on Allocations of Assistance.--Not later than 30 days 
after the enactment of any law appropriating funds to carry out any 
provision of this Act, the President shall notify the Congress of--
            (1) each foreign country and international organization to 
        which the United States Government intends to provide any 
        portion of the funds under such law; and
            (2) the amount of funds under that law, by category of 
        assistance, that the United States Government intends to 
        provide to each such country or organization.
    (b) Exceptions.--Subsection (a) does not apply with respect to--
            (1) funds appropriated under section 8509 or section 8510 
        (relating to operating expenses of the United States Agency for 
        International Development and the Inspector General of that 
        agency, respectively); or
            (2) any law making continuing appropriations.
    (c) Use of Special Authority.--The authority of section 7201 of 
this Act may not be used to waive the provisions of this section.

SEC. 7305. NOTIFICATION OF PROGRAM CHANGES.

    (a) Notification of Program Changes.--Unless 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 are notified at least fifteen 
days in advance, funds appropriated for a fiscal year to carry out this 
Act may not be obligated for any assistance or contributions under any 
title of this Act--
            (1) for programs administered by the United States Agency 
        for International Development under title I--
                    (A) for a country, regional, or centrally funded 
                program for which assistance under that title was not 
                justified in congressional presentation documents for 
                that fiscal year;
                    (B) for a country, regional, or centrally funded 
                program in excess of the amount justified under that 
                title in congressional presentation documents or 
                allocated pursuant to section 7304 for that fiscal 
                year;
                    (C) for a project or activity not previously 
                justified to such Committees or, in the case of 
                programs that are administered through strategic 
                objectives, for a new strategic objective for a 
                country, regional or centrally funded program; or
                    (D) for a nonproject assistance activity, including 
                commodity import program assistance;
            (2) for assistance administered through the Department of 
        Defense under this Act--
                    (A) for a country, international organization or 
                arrangement, for which assistance under that title was 
                not justified in congressional presentation documents 
                for that fiscal year;
                    (B) in excess of the amount allocated pursuant to 
                section 7304 for that country, organization or 
                arrangement, under that title for that fiscal year; or
                    (C) for the provision of major defense equipment, 
                other than conventional ammunition, or other major 
                defense items defined to be aircraft, ships, missiles, 
                or combat vehicles not previously justified to Congress 
                or twenty percent in excess of the quantities justified 
                to Congress.
            (3) for other programs under this Act--
                    (A) for a country, international organization or 
                arrangement, or operation for which assistance or 
                contribution under that title was not justified in 
                congressional presentation documents for that fiscal 
                year;
                    (B) in excess of the amount allocated pursuant to 
                section 7304 for that country or organization or 
                arrangement under that title for that fiscal year; or
                    (C) for a project, activity, or operation not 
                previously justified, or in excess of the amount 
                previously justified, to such Committees.
    (b) Appropriations Subject to Requirements.--Subsection (a) applies 
with respect to all funds appropriated for assistance and contributions 
under this Act other than--
            (1) chapters 1 and 2 of title V (relating to the Overseas 
        Private Investment Corporation and the Trade and Development 
        Agency, respectively),
            (2) section 1104 (relating to the micro and small 
        enterprise development, housing and urban, and other guaranty 
        programs),
            (3) programs for refugee assistance and for disaster relief 
        and rehabilitation, including assistance programs under title 
        IV of this Act.
    (c) Emergency Exceptions.--
            (1) Waiver.--Subsection (a), or any similar requirement to 
        provide advance notification to the Congress or Congressional 
        committees, may be waived if the President determines that 
        doing so is necessitated by emergency circumstances.
            (2) Exercise of authority.--In the case of any waiver under 
        paragraph (1) notification to the Congress or the appropriate 
        Congressional committees shall be provided as early as 
        practicable, but in no event later than three days after taking 
        the action to which such notification requirement was 
        applicable. Any notification under this paragraph shall contain 
        an explanation of the circumstances necessitating the use of 
        the authority of this subsection.

SEC. 7306. EVALUATION AND MONITORING OF PROGRAM PERFORMANCE.

    (a) Need for Evaluation.--In order to effectively and responsibly 
manage the resources made available for sustainable development 
purposes, the President must have a capacity to evaluate objectively 
the extent of progress in achieving development results and to derive 
lessons from that 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 United States Agency for International 
Development 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, and counterparts in 
        countries receiving assistance, 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 and assure 
        the widest possible distribution of findings, particularly to 
        beneficiaries of projects and programs.
            (4) Establish a system which ensures the incorporation of 
        evaluation findings in decisions of the agency about program 
        direction and resource allocation.
    (c) The President shall prepare an annual report to the Congress to 
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 United States Agency for International Development and 
        on such other empirical analyses as may be appropriate.
            (2) An analysis, on a country-by-country basis, of the 
        results of sustainable development in each country receiving 
        assistance under title I from such Agency, including a 
        discussion of the United States interests and objectives that 
        were served by such assistance.

                     TITLE VIII--GENERAL PROVISIONS

           Chapter 1--Exercise and Coordination of Functions

SEC. 8101. DELEGATIONS BY THE PRESIDENT.

    (a) In General.--The President may exercise any functions conferred 
upon the President by this Act through such agency or officer of the 
United States Government as the President shall direct.
    (b) Authority To Issue Regulations and Delegate.--The head of any 
agency or such officer exercising functions under this Act--
            (1) may from time to time promulgate such rules and 
        regulations as may be necessary to carry out such functions; 
        and
            (2) may delegate authority, including to any other agency 
        upon obtaining the concurrence of the head of that agency, to 
        perform any such functions, including, if he or she shall so 
        specify, the authority successively to redelegate any of such 
        functions.

SEC. 8102. ROLE OF THE SECRETARY OF STATE.

    (a) Continuous Supervision.--Under the direction of the President, 
the Secretary of State shall be responsible for the continuous 
supervision and general direction of assistance under this Act, 
including determining whether such assistance shall involve the 
provision of defense articles and defense services, to the end that all 
such assistance is effectively integrated both at home and abroad and 
the foreign policy of the United States is best served thereby.
    (b) Powers and Functions.--Nothing in this Act shall be construed 
to infringe upon the powers and functions of the Secretary of State.

SEC. 8103. THE SECRETARY OF DEFENSE.

    (a) With respect to assistance under this Act administered through 
the Department of Defense, the Secretary of Defense shall have primary 
responsibility for--
            (1) the determination of military end-item requirements;
            (2) the procurement of military equipment in a manner which 
        permits its integration with service programs;
            (3) the monitoring of end-item use by the recipient 
        countries;
            (4) the supervision of the training of foreign military and 
        related civilian personnel;
            (5) the movement and delivery of military end-items; and
            (6) within the Department of Defense the performance of any 
        other functions with respect to the furnishing of assistance 
        administered through the Department of Defense under this Act.
    (b) The establishment of priorities in the procurement, delivery, 
and the allocation of military equipment shall be determined by the 
Secretary of Defense.

SEC. 8104. UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT.

    The United States Agency for International Development shall be an 
agency of the United States under the foreign policy guidance and 
subject to the supervision and direction of the Secretary of State.

SEC. 8105. THE DIRECTOR OF THE ARMS CONTROL AND DISARMAMENT AGENCY.

    Decisions to furnish assistance administered through the Department 
of Defense under subchapter A, chapter 1, title II, and chapter 3, 
title III shall be made in coordination with the Director of the United 
States Arms Control and Disarmament Agency and shall take into account 
the Director's opinion as to whether such assistance will--
            (1) contribute to an arms race;
            (2) increase the possibility of outbreak or escalation of 
        conflict; or
            (3) prejudice the development of bilateral or multilateral 
        arms control arrangements.

SEC. 8106. AUTHORITY TO ESTABLISH OFFICES ABROAD.

    The President may maintain offices or staffs outside the United 
States in such countries and for such periods of time as may be 
necessary to carry out this Act.

SEC. 8107. PRESIDENTIAL FINDINGS AND DETERMINATIONS.

    (a) Findings and Determinations To Be Written and Signed.--In any 
case in which the President is required to make a report by any 
provision of this Act, the Arms Export Control Act, or any annual or 
periodic foreign assistance authorizing or appropriations legislation, 
to the Congress or to any committee or officer of either House of 
Congress concerning any finding or determination, that finding or 
determination shall be reduced to writing and signed by the President.
    (b) Restriction.--No action shall be taken pursuant to any such 
finding or determination prior to the date on which that finding or 
determination is reduced to writing and signed by the President.
    (c) Publication in Federal Register.--Each such finding or 
determination shall be published in the Federal Register as soon as 
practicable after it has been reduced to writing and signed by the 
President. In any case in which the President concludes that such 
publication would be harmful to the national security of the United 
States, only a statement that a determination or finding has been made 
by the President, including the name and section of the Act under which 
it was made, shall be published.

                 Chapter 2--Administrative Authorities

                   Subchapter A--General Authorities

SEC. 8201. ALLOCATION OF FUNDS AND REIMBURSEMENT AMONG AGENCIES.

    (a) Allocations or Transfers to Agencies.--The President, or with 
respect to funds appropriated to any agency, the head of such agency, 
as the case may be, may allocate or transfer to any agency of the 
United States Government any funds available for providing assistance 
under this or any other Act, including any advance to the United States 
Government by any country or international organization for the 
procurement of articles or services. Such funds shall be available for 
obligation and expenditure for the purposes for which authorized, in 
accordance with the authority pursuant to which they were made 
available or the authority governing the activities of the agency to 
which such funds are allocated or transferred.
    (b) Procurement From Other Agencies.--
            (1) Authority.--Any officer of the United States Government 
        carrying out functions under this Act may utilize the services 
        and the facilities of, or procure articles from, any agency of 
        the United States Government as the President shall direct, or 
        with the consent of the head of such agency.
            (2) Separate account.--Funds allocated pursuant to this 
        subsection to any such agency may be established in separate 
        appropriation accounts on the books of the Treasury.
    (c) Reimbursement to Agencies.--
            (1) General.--In the case of any article, service, or 
        facility procured from any agency of the United States 
        Government to carry out any provision of this Act (except with 
        respect to assistance under sections 3103, 3204 and 7111, 
        7115(b)), reimbursement or payment shall be made to such agency 
        from funds available to carry out that provision.
            (2) Amount of reimbursement.--Such reimbursement or payment 
        shall be at--
                    (A) replacement cost,
                    (B) if required by law, actual cost,
                    (C) in the case of defense articles procured from 
                the Department of Defense, value as defined in section 
                8551(20), or, if required by law, actual costs,
                    (D) in the case of services procured from the 
                Department of Defense, the amount of the additional 
                costs incurred by the Department of Defense in 
                providing such services, or, if required by law, actual 
                costs, or
                    (E) at any other cost agreed to by the owning or 
                disposing agency.
            (3) Crediting of reimbursement.--The amount of any such 
        reimbursement or payment shall either be credited to current 
        applicable appropriations, funds, or accounts of such agency, 
        to be available for the same purposes and for the same time 
        period as the appropriation, fund or account to which 
        transferred, or any such credited funds shall remain available 
        for such purposes until expended.
            (4) Limitation on department of defense drawdowns.--During 
        any fiscal year, the aggregate value of articles and services 
        of which the President may direct the drawdown from the 
        inventory and resources of the Department of Defense may not 
        exceed--
                    (A) $50,000,000 under section 3103,
                    (B) $15,000,000 under section 3204,
                    (C) $75,000,000 under section 7111(b), and
                    (D) $5,000,000 under section 7115(b).
    (d) Reimbursement to the Department of Defense.--Reimbursement or 
payment to the Department of Defense under subsection (c) shall exclude 
salaries of members of the Armed Forces (other than the Coast Guard) 
and unfunded estimated costs of civilian retirement and other benefits, 
unless otherwise required by law.
    (e) Establishment of Accounts.--
            (1) Authority to establish; uses.--In furnishing assistance 
        under this or any other Act, accounts may be established on the 
        books of any agency of the United States Government or, on 
        terms and conditions approved by the Secretary of the Treasury, 
        in banking institutions in the United States--
                    (A) against which letters of commitment may be 
                issued which shall constitute recordable obligations of 
                the United States Government, and moneys due or to 
                become due under such letters of commitment shall be 
                assignable under the last sentence of section 3727(b) 
                and section 3727(c) of title 31, United States Code, 
                and the second and third paragraphs of section 3737 of 
                the Revised Statutes of the United States (41 U.S.C. 
                15); and
                    (B) from which disbursements may be made to, or 
                withdrawals may be made by, recipient countries or 
                agencies, organizations, or persons upon presentation 
                of contracts, invoices, or other appropriate 
                documentation.
            (2) Accounting for expenditures.--Expenditure of funds 
        which have been made available through accounts established 
        under paragraph (1) shall be accounted for on standard 
        documentation required for expenditure of funds of the United 
        States Government.
    (f) Charging to Appropriations.--
            (1) Initial charging.--Any appropriation or account 
        available to carry out provisions of this Act may initially be 
        charged in any fiscal year, within the limit of available 
        funds, to finance expenses for which funds are available in 
        other appropriations or accounts under that title.
            (2) Final charging.--As of the end of such fiscal year, 
        such expenses shall be finally charged to applicable 
        appropriations or accounts with proper credit to the 
        appropriations or accounts initially utilized for financing 
        purposes, except that such final charges shall not be required 
        in the case of expenses (other than those provided under 
        sections 8509 and 8510) incurred in furnishing assistance where 
        it is determined that the accounting costs of identifying the 
        applicable appropriation or account to which such expenses 
        should be charged would be disproportionate to the advantage to 
        be gained.
            (3) Application to programs administered through dod.--This 
        subsection shall not apply to assistance administered through 
        the Department of Defense under this Act.
    (g) Responsibility of Agencies.--The agency receiving the funds 
pursuant to the authority of subsections (a) or (b) shall be the agency 
responsible for the management and use of such funds.

SEC. 8202. GENERAL AUTHORITIES.

    (a) Terms of Assistance.--Except as otherwise specifically 
prohibited in this Act, assistance under this Act may be furnished on a 
grant, loan, or guaranty basis, or on such terms, including cash, 
credit, or other terms of repayment (including repayment in foreign 
currencies or by transfer to the United States Government of articles), 
or as a contribution to an international organization or arrangement, 
as may be determined to be best suited to the achievement of the 
purposes of this Act.
    (b) Terms and Conditions.--The President may furnish assistance 
under this Act on such terms and conditions (consistent with other 
provisions of law) as the President deems appropriate, and, consistent 
with the provisions of this Act, may charge such fees for guarantees 
and loans under this Act as the President deems appropriate. Credit 
assistance shall be consistent with the provisions of the Federal 
Credit Reform Act of 1990. In the case of contributions or other 
assistance provided for an international organization or arrangement 
under this or any other Act, such organization or arrangement may 
utilize its own procurement, administrative, accounting, and audit 
rules and procedures.
    (c) Advances, Contracts, Etc.--In furtherance of the purposes and 
subject to the limitations of this Act, the President in providing 
assistance under this or any other Act may make loans (in conformity 
with the provisions of the Federal Credit Reform Act of 1990), 
advances, and grants to, make and perform agreements and contracts 
with, or enter into other transactions with, any person, corporation, 
or other body of persons, any government or government agency, and any 
international organization or arrangement.
    (d) Gifts.--The President may accept and use in furtherance of the 
purposes of this Act, money, funds, property, and services of any kind 
made available by gift, devise, bequest, grant, or otherwise for such 
purpose.
    (e) Insurance.--
            (1) Foreign participants.--Any agency of the United States 
        Government is authorized to pay the cost of health and accident 
        insurance for foreign participants in any program of furnishing 
        assistance administered by such agency while such participants 
        are absent from their homes for the purpose of participation in 
        such program.
            (2) Foreign employees.--Any agency of the United States 
        Government is authorized to pay the cost of health and accident 
        insurance for foreign employees of that agency while those 
        employees are absent from their places of employment abroad for 
        purposes of training or other official duties.
    (f) Admission to United States.--Alien participants in any program 
of furnishing assistance under this Act may be admitted to the United 
States if otherwise qualified as nonimmigrants under section 101(a)(15) 
of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)), for such 
time and under such conditions as may be prescribed by regulations 
promulgated by the Secretary of State and the Attorney General.
    (g) Assistance Authorities.--In furnishing and administering 
assistance under this Act, the President--
            (1) may issue letters of credit and letters of commitment;
            (2) may collect, compromise, reschedule or otherwise settle 
        any obligations assigned to, or held by, and any legal or 
        equitable rights accruing to, the President and may (as the 
        President deems appropriate) refer any such obligations or 
        rights to the Attorney General for suit or collection;
            (3) may--
                    (A) acquire and dispose of (upon such terms and 
                conditions as the President deems appropriate) any 
                property, including any instrument evidencing 
                indebtedness or ownership, and
                    (B) guarantee payment against any such instrument;
            (4) may establish the character of, and decide the 
        necessity for, obligations and expenditures of funds used in 
        furnishing and administering such assistance and the manner in 
        which such obligations and expenditures shall be incurred, 
        allowed, and paid, subject to provisions of law specifically 
        applicable to corporations of the United States Government;
            (5) shall cause to be maintained an integral set of 
        accounts which shall be audited by the General Accounting 
        Office in accordance with principles and procedures applicable 
        to commercial corporate transactions as provided by chapter 91 
        of title 31, United States Code;
            (6) may transfer such of the funds appropriated or 
        otherwise made available under titles II and III of this Act as 
        the President may determine for assistance to a recipient 
        country to the account in which funds for the procurement of 
        defense articles and defense services under section 21 and 
        section 22 of the Arms Export Control Act have been deposited 
        for such recipient, to be merged with such deposited funds, and 
        to be used solely to meet obligations of the recipient for 
        payment for sales under that Act. Sales which are wholly paid 
        from funds made available on a nonrepayable basis and 
        transferred under this paragraph, from funds made available 
        under the former authority of section 503(a)(3) of the Foreign 
        Assistance Act of 1961, or from funds made available on a non-
        repayable basis under the former authority of section 23 of the 
        Arms Export Control Act shall be priced to exclude the costs of 
        salaries of members of the Armed Forces of the United States 
        (other than the Coast Guard).
    (h) Guarantees.--Guarantees issued to carry out the purposes of 
this Act shall be subject to the following:
            (1) Full faith and credit.--The full faith and credit of 
        the United States may be pledged for the full payment and 
        performance of guarantees issued under this Act or predecessor 
        legislation.
            (2) Charges.--The President may charge appropriate fees 
        and/or interest in connection with the activities carried out 
        under such authority.
            (3) Relationship to other provisions of law.--Guarantees 
        may be provided under this Act without regard to section 8402 
        of this Act.
            (4) Denomination of liability.--The losses guaranteed may 
        be in dollars or in other currencies. In the case of losses 
        guaranteed in currencies other than dollars, the guarantees 
        issued shall be subject to an overall payment limitation 
        expressed in dollars.
    (i) Subsidy Cost of Guarantees and Loans.--The President may use 
funds made available under this Act to pay the cost (as defined in 
section 13201 of the Budget Enforcement Act of 1990) of direct loans 
and loan guarantees made or entered into (and associated administrative 
costs) in furtherance of the purposes of this Act. Funds appropriated 
to pay the cost (as defined in section 13201 of the Budget Enforcement 
Act of 1990) of direct loans and loan guarantees made or entered into 
to carry out the provisions of this Act shall be provided in conformity 
with section 504(b)(1) of the Federal Credit Reform Act of 1990.
    (j) Claims Relating to Guarantees.--Claims arising as a result of 
any guarantee program authorized by this Act may be settled, and 
disputes arising as the result thereof may be arbitrated with the 
consent of the parties, on such terms and conditions as the President 
may direct. Payment made pursuant to any such settlement, or as a 
result of an arbitration award, shall be final and conclusive 
notwithstanding any other provision of law.
    (k) Financial Transactions With Foreign Governments in Default of 
Obligations to the United States.--Section 955 of title 18, United 
States Code, shall not apply to any person--
            (1) who acts for or participates in any operation or 
        transaction arising under this Act, or
            (2) who acquires any obligation issued in connection with 
        any operation or transaction arising under this Act.
    (l) Educational Institutions.--Any cost-type contract or agreement 
(including grants) entered into with an institution of higher education 
for the purpose of carrying out programs authorized by this Act may 
provide for the payment of the reimbursable indirect costs of that 
institution on the basis of predetermined fixed-percentage rates 
applied to the total or an element thereof, of the reimbursable direct 
costs incurred.
    (m) Training Working Capital Fund.--The head of any agency 
administering assistance under this Act is authorized to establish, 
with funds made available for assistance under this Act (or predecessor 
legislation) administered by such agency, a working capital fund, which 
shall be available without fiscal year limitation, for expenses and 
equipment necessary to the maintenance and operation of a program of 
providing short-term and long-term training and training-related 
services of foreign nationals in the United States or third countries, 
including such expenses as (1) tuition and fees, (2) room, board, and 
maintenance allowances, and (3) contracts and the cost of administering 
contracts entered into in furtherance of the program.
    (n) Multiyear Commitments.--A contract or agreement which entails 
commitments for the expenditure of funds under this Act may, subject to 
any future action of the Congress, extend at any time for not more than 
5 years.

SEC. 8203. AUTHORIZED ADMINISTRATIVE USES OF FUNDS.

    (a) Personnel, Printing, Procurement of Supplies, and Other 
Administrative Expenses.--Funds made available to carry out this Act 
may be used for the following:
            (1) Compensation, allowances, and travel of personnel, 
        including Foreign Service personnel, whose services are 
        utilized primarily for the purposes of this Act, and for other 
        administrative and operating expense purposes (other than 
        compensation of personnel) without regard to such laws and 
        regulations governing the obligation and expenditure of funds 
        of the United States Government as may be necessary to 
        accomplish the purposes of this Act.
            (2) Printing and binding without regard to the provisions 
        of any other law.
            (3) Expenditures outside the United States for the 
        procurement of supplies and services and for other 
        administrative and operating purposes (other than compensation 
        of personnel) without regard to the Claims Act, 31 U.S.C. 3721 
        and such laws and regulations governing the obligation and 
        expenditure of funds of the United States Government (other 
        than sections 1341, 1342, and 1517 of title 31, United States 
        Code) as may be necessary to accomplish the purposes of this 
        Act.
    (b) Uses of Assistance Funds.--
            (1) Authorized uses.--Funds described in paragraph (2) 
        shall be available for the following:
                    (A) Expenses of attendance at meetings concerned 
                with the purposes of this Act, including 
                (notwithstanding section 1346(a) and 1346(c) of title 
                31, United States Code), expenses in connection with 
                meetings of persons whose employment is authorized by 
                section 8503.
                    (B) Contracting with individuals for personal 
                services. Such individuals shall not be regarded as 
                employees of the United States Government for the 
                purpose of any law administered by the Office of 
                Personnel Management, except that the head of the 
                contracting agency may determine the applicability to 
                such individuals of any other law administered by such 
                agency concerning the employment of such individuals.
                    (C) Purchase, maintenance, operation, and hire of 
                aircraft, except that aircraft for administrative 
                purposes may be purchased only as specifically provided 
                for in an appropriation or other Act.
                    (D)(i) Purchase and hire of passenger motor 
                vehicles, subject to clause (ii).
                    (ii) Passenger motor vehicles other than one for 
                the official use of the Administrator of the United 
                States Agency for International Development may be 
                purchased for use in the United States only as may be 
                specifically provided in an appropriation or other Act.
                    (E) Entertainment and representation.
                    (F) Awards.
                    (G) Exchange of funds without regard to loss by 
                exchange.
                    (H) Expenditures (not to exceed $50,000 in any 
                fiscal year except as may otherwise be provided in an 
                appropriation or other Act) of a confidential character 
                other than entertainment. A certificate of the amount 
                of such expenditure, the nature of which it is 
                considered inadvisable to specify, shall be made by the 
                President, and every such certificate shall be deemed a 
                sufficient voucher for the amount therein specified.
                    (I) Insurance of official motor vehicles or 
                aircraft acquired for use in foreign countries.
                    (J) Expenses of--
                            (i) preparing and transporting to their 
                        former homes (or with respect to foreign 
                        participants engaged in any program under this 
                        Act to their former homes or places of burial), 
                        and
                            (ii) caring for and disposing of the 
                        remains of an individual, or the remains of a 
                        member of an individual's family, who may die 
                        while such individual is away from home 
                        participating in activities carried out with 
                        funds described in paragraph (2).
                    (K) Purchase of uniforms.
                    (L) Payment of per diem in lieu of subsistence to 
                foreign participants engaged in any program under this 
                Act while such participants are away from their homes 
                in countries other than the United States, at rates not 
                in excess of those prescribed by the standardized 
                Government travel regulations, notwithstanding any 
                other provision of law.
                    (M) Use in accordance with authorities of the 
                Foreign Service Act of 1980 (22 U.S.C. 3901 et seq.) 
                not otherwise provided for.
                    (N) Ice and drinking water for use outside the 
                United States.
                    (O) Services of commissioned officers of the 
                National Oceanic and Atmospheric Administration. For 
                the purposes of providing such services, the National 
                Oceanic and Atmospheric Administration may appoint not 
                to exceed 20 commissioned officers in addition to those 
                otherwise authorized.
                    (P) Expenses in connection with--
                            (i) travel of personnel outside the United 
                        States, including travel expenses of dependents 
                        (including expenses during necessary stopovers 
                        while engaged in such travel), and the 
                        transportation of personal effects, household 
                        goods, and automobiles of such personnel when 
                        any part of such travel or transportation 
                        begins in one fiscal year pursuant to travel 
                        orders issued in that fiscal year, 
                        notwithstanding the fact that such travel or 
                        transportation may not be completed during the 
                        same fiscal year; and
                            (ii) the costs of transporting automobiles 
                        to and from a place of storage, and the costs 
                        of storing automobiles of such personnel, when 
                        it is in the public interest or more economical 
                        to authorize storage.
                    (Q) Assistance for the implementation of programs 
                under the Agricultural Trade Development and Assistance 
                Act of 1954, the Agricultural Act of 1949, and the Food 
                for Progress Act of 1985.
                    (R) Other expenses determined by the President to 
                be necessary to carry out the purposes of this Act.
            (2) Funds which may be used.--Paragraph (1) applies to--
                    (A) appropriations to carry out this Act,
                    (B) allocations or transfers to or from any agency 
                of the United States Government, from other 
                appropriations, for functions directly related to the 
                purposes of this Act, and
                    (C) funds made available for other purposes to the 
                United States Agency for International Development.
    (c) Facilities.--
            (1) Living quarters, offices, schools, and hospitals.--
        Notwithstanding any other provision of law, funds available for 
        assistance under this Act may be used in any fiscal year (in 
        addition to funds available for such use under other 
        authorities in this Act)--
                    (A) to rent, lease, construct or otherwise acquire 
                essential living quarters, office space, and necessary 
                supporting facilities for use of personnel carrying out 
                activities authorized by this Act, including to 
                maintain, furnish, improve, and make necessary repairs 
                to such property, which may also include the cost of 
                fuel, water, and utilities for such properties;
                    (B) to construct or otherwise acquire outside the 
                United States schools (including dormitories and 
                boarding facilities) and hospitals for use of personnel 
                carrying out activities authorized by this Act, United 
                States Government personnel, and their dependents; and
                    (C) to staff, operate, and maintain such schools 
                and hospitals.
            (2) Disposal.--Property acquired under this subsection (or 
        predecessor provisions of this Act) may be disposed of, and the 
        proceeds of such disposal shall remain available until expended 
        for use for the purposes specified in paragraph (1).
    (d) Education of Dependents.--Funds available for assistance under 
this Act may be used in any fiscal year to provide assistance to 
schools established, or to be established, outside the United States 
whenever it is determined that such action would be more economical or 
would best serve the interests of the United States in providing for 
the education of dependents of personnel carrying out activities 
authorized by this Act and dependents of United States Government 
personnel, in lieu of acquisition or construction pursuant to 
subsection (c) of this section.
    (e) Training of Personnel.--
            (1) Payment of costs.--Funds available under this Act may 
        be used to pay costs of training United States citizen 
        personnel employed or assigned pursuant to section 8502(d), 
        through interchange or otherwise, at any State or local unit of 
        government, public or private nonprofit institution, trade, 
        labor, agricultural, or scientific association or organization, 
        or commercial firm.
            (2) Limitation on dual employment.--Such training shall not 
        be considered employment or holding of office under section 
        5533 of title 5, United States Code.
            (3) Acceptance of certain payments.--Any payments or 
        contributions in connection with such training may, as deemed 
        appropriate by the head of the agency of the United States 
        Government authorizing such training, be made by private or 
        public sources and be accepted by any trainee, or may be 
        accepted by and credited to the current applicable 
        appropriation of such agency. Any such payments or 
        contributions to any employee in the nature of compensation 
        shall be in lieu, or in reduction, of compensation received 
        from the United States Government.

      Subchapter B--Department of Defense Administrative Authories

SEC. 8211. ADMINISTRATIVE EXPENSES.

    Funds allocated to the Department of Defense for the purpose of 
providing assistance under this Act shall be available for the 
following:
            (1) Administrative, extraordinary (not to exceed $300,000 
        in any fiscal year), and operating expenses incurred in 
        furnishing assistance under this Act administered through the 
        Department of Defense, including the purchase of passenger 
        motor vehicles for replacement only for use outside of the 
        United States.
            (2) Reimbursement of actual expenses of military officers 
        detailed or assigned as tour directors in connection with 
        orientation visits of foreign military and related civilian 
        personnel, in accordance with the provisions of section 5702 of 
        title 5, United States Code, applicable to civilian officers 
        and employees.
            (3) Maintenance, repair, alteration, and furnishing of 
        United States-owned facilities in the District of Columbia or 
        elsewhere for the training of foreign military and related 
        civilian personnel without regard to the provisions of section 
        3733 of the Revised Statutes (41 U.S.C. 12) or other provision 
        of law requiring a specific authorization or specific 
        appropriation for such public contracts.

SEC. 8212. END USE AND RETRANSFER ASSURANCES.

    (a) Conditions.--Defense articles or defense services may not be 
made available under this Act to a foreign country, unless that country 
has agreed to the following (in addition to such other provisions as 
the President may require):
            (1) The country will not, without the consent of the 
        President--
                    (A) transfer title to, or possession of, any 
                defense articles or defense services so furnished to it 
                to anyone not an officer, employee, or agent of that 
                country, and
                    (B) use or permit the use of such articles or 
                services for purposes other than those for which 
                furnished.
            (2) The country will maintain the security of such articles 
        or services, and will provide substantially the same degree of 
        security protection afforded to such articles or services by 
        the United States Government.
    (b) Ineligibility.--
            (1) Termination of assistance for substantial violations.--
        Assistance administered by the Department of Defense under this 
        Act to any country and deliveries of defense articles and 
        defense services provided with such assistance shall be 
        terminated, and new commitments to provide such assistance to 
        that country shall not be made, as hereinafter provided if such 
        country uses defense articles or defense services described in 
        paragraph (2) in substantial violation (either in terms of 
        quantities or in terms of the gravity of the consequences 
        regardless of the quantities involved) of any agreement 
        pursuant to which those defense articles or defense services 
        were furnished--
                    (A) by using such articles or services for a 
                purpose not provided for in this Act or, if such 
                agreement provides that such articles or services may 
                only be used for purposes more limited, for a purpose 
                not authorized under such agreement;
                    (B) by transferring such articles or services to, 
                or permitting any use of such articles or services by, 
                anyone not an officer, employee, or agent of the 
                recipient country; or
                    (C) by failing to maintain the security of such 
                articles or services.
            (2) Defense articles and defense services subject to 
        requirements.--Paragraph (1) applies with respect to any 
        defense articles or defense services furnished (through 
        financing or otherwise) under this Act, or furnished under any 
        predecessor foreign assistance legislation.
    (c) Exception.--No prior consent shall be required under this 
subchapter and section 3 of the Arms Export Control Act for transfer by 
a foreign country of defense articles sold by the United States under 
that Act under the following circumstances--
            (1) such articles constitute components incorporated into a 
        foreign defense article;
            (2) the recipient is the government of a NATO country, or 
        the government of Australia or Japan;
            (3) the United States-origin components were not 
        significant military equipment, were not military defense 
        equipment for which notification to Congress was required by 
        section 36(b) of the Arms Export Control Act, and are not 
        identified by regulation as Missile Technology Control Regime 
        items; and
            (4) the foreign country or persons transferring the items 
        provide notification to the United States Government within 
        thirty days following such transfer.

SEC. 8213. APPROVAL OF THIRD COUNTRY TRANSFERS.

    (a) In General.--In considering a request for approval of any 
transfer of any weapon, weapons system, munitions, aircraft, military 
vessel, or other implement of war to another country, the President 
shall not give his consent under section 8212 to the transfer unless 
the United States itself would transfer the defense article under 
consideration to that country.
    (b) Significant Military Equipment.--In addition, the President 
shall not give consent under this subchapter to the transfer of any 
significant military equipment on the United States Munitions List 
unless the foreign country requesting consent to transfer agrees to 
demilitarize such equipment prior to transfer, or the proposed 
recipient provides a commitment in writing to the United States 
Government that it will not transfer such equipment if not 
demilitarized to any other foreign country or person without first 
obtaining the consent of the President.

SEC. 8214. EXCHANGE TRAINING.

    The President is authorized to provide for attendance of foreign 
military personnel at professional military education institutions in 
the United States (other than service academies) without charge, and 
without charge to funds available to carry out titles II and III 
notwithstanding section 8201, if such attendance is pursuant to an 
agreement providing for the exchange of students on a generally 
reciprocal basis each fiscal year between those United States 
professional military education institutions and comparable 
institutions of foreign countries and international organizations.

      Chapter 3--Special Requirements and Authorities Relating to 
                  Appropriations and Local Currencies

          Subchapter A--Provisions Relating to Appropriations

SEC. 8301. REQUIREMENT FOR AUTHORIZATION OF APPROPRIATIONS.

    (a) Requirement for Authorization.--Funds appropriated for foreign 
assistance under this Act shall not be available for obligation or 
expenditure--
            (1) unless the appropriation thereof has been specifically 
        authorized by law; or
            (2) in excess of an amount prescribed by law.
    (b) Subsequent Authorizations.--To the extent that legislation 
enacted after the making of an appropriation for foreign assistance 
under this Act authorizes the obligation or expenditure thereof, the 
limitation contained in subsection (a) shall not apply.
    (c) Relation to Other Provisions.--The provisions of this section 
shall not be superseded except by a provision of law that specifically 
repeals or modifies the provisions of this section.

SEC. 8302. AUTHORITY FOR EXTENDED PERIOD OF AVAILABILITY OF 
              APPROPRIATIONS.

    Amounts appropriated to carry out this Act are authorized--
            (1) to be made available, in appropriations Acts, until 
        expended; and
            (2) in addition to amounts otherwise available for such 
        purposes.

SEC. 8303. REDUCTION IN EARMARKS.

    (a) Proportional Reductions.--If--
            (1) the amount appropriated for a fiscal period to carry 
        out any provision of this Act is less than the amount 
        authorized to be appropriated to carry out such provision, and
            (2) the provision or provisions authorizing such 
        appropriations provides that a specified amount of the amount 
        authorized to be appropriated to carry out that provision for 
        that fiscal period shall be available only for a particular 
        country, organization, or purpose,
then the amount so specified shall be deemed to be reduced to the 
amount which bears the same ratio to the specified amount as the amount 
appropriated bears to the amount authorized to be appropriated.
    (b)(1) Funds may be made available notwithstanding any provision of 
law described in paragraph (2) if--
            (A) compliance with such provision is made impossible by 
        operation of law, or
            (B) the President determines that the country or 
        organization for whom such funds would have been made available 
        has significantly reduced its military, political, or economic 
        cooperation with the United States during the preceding 12 
        month period.
    (2) The provisions of law to which this subsection applies are any 
provisions requiring that a specified amount of funds appropriated to 
carry out any provision of this Act shall be available only for a 
particular country, organization, or purpose.

SEC. 8304. OBLIGATION UPON APPORTIONMENT.

    Funds appropriated to carry out this Act may be obligated upon 
apportionment in accordance with title 31, section 1501(a)(5)(C), 
United States Code.

                     Subchapter B--Local Currencies

SEC. 8311. USE OF CERTAIN FOREIGN CURRENCIES.

    (a) Authority To Use Foreign Currencies for Assistance Programs.--
Except as otherwise provided in this Act or other provisions of law, 
foreign currencies described in subsection (b) are authorized to be 
appropriated for use in providing assistance under this Act.
    (b) Foreign Currencies Which May Be Used for Assistance.--The 
foreign currencies which may be used under subsection (a) are any 
foreign currencies received as a result of the furnishing of assistance 
under this Act (or any predecessor legislation authorizing nonmilitary 
assistance) other than assistance administered through the Department 
of Defense which are in excess of--
            (1) the amounts reserved under authority of section 105(d) 
        of the Mutual Educational and Cultural Exchange Act of 1961 or 
        any other Act relating to educational and cultural exchanges; 
        and
            (2) the amounts required for payment by the agencies of the 
        United States Government of their obligations outside the 
        United States, as such requirements may be established from 
        time to time by the President.
    (c) Payment of Obligations of Government Agencies.--Foreign 
currencies described in subsection (b) which are in excess of the 
amounts described in paragraph (1) of that subsection may be sold by 
the Secretary of the Treasury to agencies of the United States 
Government for payment of their obligations outside the United States.
    (d) Use of Foreign Currencies Not Owned by the United States 
Government.--With the concurrence of the relevant inspector general, 
the use of foreign currencies that accrue or are otherwise available as 
a result of assistance provided under this Act (including predecessor 
legislation) that are not owned by the United States Government, shall 
be the responsibility of the government owning such currencies to 
audit.

SEC. 8312. INTEREST ON U.S. OWNED FOREIGN CURRENCY PROCEEDS.

    (a) Requirement for Payment of Interest.--In cases where assistance 
is to be furnished to any recipient country under this Act on a basis 
which will result in the accrual of foreign currency proceeds to the 
United States, agreements with respect to such assistance should 
include provisions for the receipt of interest income on the foreign 
currency proceeds deposited in authorized depositories.
    (b) Waiver of Requirement.--The President may waive any requirement 
for receipt of such income if the President decides it would not be in 
the national interest to conclude arrangements for the receipt of 
interest income pursuant to subsection (a).

           Chapter 4--Procurement and Disposition of Articles

SEC. 8401. USE OF PRIVATE ENTERPRISE.

    (a) In General.--In order to encourage and facilitate participation 
by private enterprise to the maximum extent practicable in achieving 
any of the purposes of this Act, the President shall--
            (1) to the maximum extent practicable carry out programs of 
        assistance through private channels and, to the extent 
        practicable, in conjunction with local private or governmental 
        participation; and
            (2) utilize wherever practicable the products and services 
        of United States private enterprise to provide the necessary 
        equipment, supplies, and skills to develop and operate a 
        specific project or program of assistance in a developing 
        country or area in any case in which direct private investment 
        is not readily encouraged, and provide where appropriate for 
        the transfer of equity ownership in such project or program to 
        private investors at the earliest feasible time.
    (b) Technical Assistance.--In providing technical assistance under 
this Act, the President shall utilize, to the fullest extent 
practicable, goods and professional and other services from private 
enterprise on a contract basis. In such fields as education, health, 
housing, engineering, surveying, mapping, construction or agriculture, 
the facilities and resources of Federal agencies, which do not 
administer programs under this Act, may be utilized when such 
facilities are particularly or uniquely suitable for technical 
assistance, are not competitive with private enterprise, and can be 
made available without interfering unduly with domestic programs.
    (c) Assistance Provided Through the Department of Defense.--The 
President shall assure that there is made available to suppliers in the 
United States, and particularly to small independent enterprises, 
information with respect to purchases of defense articles and defense 
services made by the Department of Defense pursuant to this Act. Such 
information shall be furnished as far in advance as possible.

SEC. 8402. PROCUREMENT STANDARDS AND PROCEDURES.

    (a)(1) Limitations on Procurement Outside the United States.--Funds 
made available for programs under this Act may be used by the President 
for procurement--
            (A) only in the United States, the recipient country, or 
        developing countries; or
            (B) in any other country but only if--
                    (i) such program requires articles or services of a 
                type that are not produced in and available for 
                purchase in any country specified in subparagraph (A); 
                or
                    (ii) the President determines, on a case-by-case 
                basis, that procurement in such other country is 
                necessary--
                            (I) to meet unforeseen circumstances, such 
                        as emergency situations, where it is important 
                        to permit procurement in a country not 
                        specified in subparagraph (A); or
                            (II) to promote efficiency in the use of 
                        United States foreign assistance resources, 
                        including to avoid impairment of foreign 
                        assistance objectives.
    (2) For purposes of this subsection, the term ``developing 
countries'' shall not include advanced developing countries.
    (b) Bulk Commodities.--No funds made available under this Act shall 
be used for the purchase in bulk of any commodities at prices higher 
than the market price prevailing in the United States at the time of 
purchase, adjusted for differences in the cost of transportation to 
destination, quality, and terms of payment.
    (c) Procurement Method for Institutions of Higher Education.--The 
President may establish separate procurement standards and procedures 
for projects under this Act to limit competition to a selection among 
institutions of higher education when the projects would benefit 
substantially from the resources and special capabilities of such 
institutions.

SEC. 8403. SHIPPING ON UNITED STATES VESSELS.

    (a) Certain Laws Not Applicable.--The ocean transportation between 
foreign countries of articles purchased with foreign currencies made 
available or derived from funds made available under this Act or the 
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 
1691 and following), or any predecessor Acts, and transfers of fresh 
fruit and fresh fruit products under this Act, shall not be governed by 
section 901(b) of the Merchant Marine Act, 1936 (46 U.S.C. app. 
1241(b)), or any other law relating to the ocean transportation of 
commodities on United States flag vessels.
    (b) Shipping Differential.--For purposes of facilitating 
implementation of section 901(b) of the Merchant Marine Act, 1936 (46 
U.S.C. app. 1241(b)), funds made available for commodities and services 
under this Act may be used to make grants to recipients or otherwise 
pay all or any portion of such differential as is determined by the 
Secretary of Transportation to exist between United States and foreign-
flag vessel charter or freight rates. Grants made under this section 
shall be paid with United States-owned foreign currencies wherever 
feasible.

SEC. 8404. EXCESS AND OTHER AVAILABLE PROPERTY.

    (a) Policy Regarding Use of Excess and Other Available Property.--
In furnishing assistance under this Act--
            (1) excess personal property, or
            (2) if a substantial savings would occur, other property 
        already owned by an agency of the United States Government,
may be utilized wherever practicable in lieu of or supplementary to the 
procurement of new items for United States-assisted projects and 
programs.
    (b) Authority to Use Certain Property for Assistance Purposes.--The 
President is authorized to use funds made available under this Act to 
acquire--
            (1) property classified as domestic or foreign excess 
        pursuant to the Federal Property and Administrative Services 
        Act of 1949 (40 U.S.C. 471 and following);
            (2) any property available from an agency of the United 
        States Government; or
            (3) other property,
for use of such property as assistance in furtherance of the purposes 
of this Act. Property acquired pursuant to this section may be 
furnished pursuant to any provision of this Act for which funds are 
authorized for the furnishing of assistance.
    (c)(1) The President is also authorized for purposes described in 
subsection (b) to maintain in a separate account funds made available 
under this Act, free from fiscal year limitations (notwithstanding 
section 1535(d) of title 31, United States Code) to pay costs 
(including personnel costs) of acquisition and storage (including in 
advance of known requirements), renovation and rehabilitation, packing, 
crating, handling, transportation, and related costs of handling and 
providing such property as assistance.
    (2) The separate account established pursuant to this section may 
be repaid--
            (A) from funds made available pursuant to any provision of 
        this Act for which funds are authorized for the furnishing of 
        assistance for all costs incurred; or
            (B) pursuant to section 7110 for all costs incurred.
    (d) Conditions on Use of Excess Property.--
            (1) Limitation.--Government-owned excess property may not 
        be made available for use under this Act unless approval is 
        given and a determination is made in accordance with paragraph 
        (2)--
                    (A) before the shipment of such property for use in 
                a specified country, or
                    (B) if the property is already in such country, 
                before the transfer of the property.
            (2) Determination.--A shipment or transfer subject to 
        paragraph (1) may take place only after the President approves 
        the shipment or transfer and makes a written determination--
                    (A) that there is a need for such property in the 
                quantity requested and that such property is suitable 
                for the purpose requested;
                    (B) as to the status and responsibility of the 
                designated end-user and his ability effectively to use 
                and maintain such property; and
                    (C) that the residual value, serviceability, and 
                appearance of such property would not reflect 
                unfavorably on the image of the United States and would 
                justify the costs of packing, crating, handling, 
                transportation, and other accessorial costs, and that 
                the residual value at least equals the total of these 
                costs.
    (e) This Section Shall Not Apply.--
            (1) in the case of excess property of the Department of 
        Defense that is furnished as assistance under section 8405 of 
        this Act; and
            (2) in the case of funds made available for assistance 
        under this Act that is administered through the Department of 
        Defense.

SEC. 8405. GRANT TRANSFERS OF EXCESS DEFENSE ARTICLES.

    (a) Authority.--Notwithstanding any other provision of law, the 
President may transfer excess defense articles to countries for which 
receipt of such articles was separately justified in the fiscal year in 
which the transfer is authorized, such excess defense articles as may 
be necessary to carry out the purposes of titles II or III of this Act.
    (b) Generally Applicable Provisions.--
            (1) Definition.--For purposes of this section, excess 
        property of the Coast Guard may be transferred on the same 
        basis as excess defense articles otherwise authorized to be 
        transferred by this section.
            (2) Terms of transfers.--Excess defense articles may be 
        transferred under this section without cost to the recipient 
        country or international organization.
            (3) Limitations on transfers.--The President may transfer 
        excess defense articles under this section only if--
                    (A) they are drawn from existing stocks of the 
                Department of Defense (or the Coast Guard);
                    (B) funds available to the Department of Defense 
                (or the Coast Guard) for the procurement of defense 
                equipment are not expended in connection with the 
                transfer;
                    (C) the transfer of the excess defense articles 
                will not have an adverse impact on the military 
                readiness of the United States; and
                    (D) transferring the articles under the authority 
                of those sections is preferable to selling them, after 
                taking into account the potential proceeds from, and 
                likelihood of, such sales, and the comparative foreign 
                policy benefits that may accrue to the United States as 
                the result of either a transfer or sale.
            (4) Advance notification to congress.--The President may 
        not transfer excess defense articles that are significant 
        military equipment or an article valued (in terms of its 
        original acquisition cost) at $7,000,000 or more, under this 
        section until 15 days after the President has provided notice 
        of the proposed transfer to the Committee on Armed Services, 
        the Committee on Foreign Affairs, and the Committee on 
        Appropriations of the House of Representatives and the 
        Committee on Armed Services, the Committee on Foreign 
        Relations, and the Committee on Appropriations of the Senate.
            (5) Waiver of requirement for reimbursement of department 
        of defense expenses.--Section 8201 shall not apply with respect 
        to transfers of excess defense articles under this section.
            (6) Transportation and related costs.--Funds available to 
        the Department of Defense (or the Coast Guard) shall not be 
        expended for crating, packing, handling and transportation of 
        excess defense articles transferred under the authority of this 
        section, except under the following conditions:
                    (A) where it is determined that it is in the United 
                States national interest to do so,
                    (B) the recipient is an international organization 
                or is a developing country receiving less than 
                $10,000,000 of assistance described in subparagraphs 
                (A) and (B) of section 8551(21) of this Act in the 
                fiscal year in which the transportation is provided,
                    (C) the total weight of the transfer does not 
                exceed 25,000 pounds,
                    (D) such overseas transportation is accomplished on 
                a space available basis, and
                    (E) the recipient agrees to pay packing, crating, 
                and other handling costs incurred as a result of the 
                transfer.

SEC. 8406. STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES.

    (a) Removal From Stockpiling.--Defense articles in the inventory of 
the Department of Defense which are set aside, reserved, or in any way 
earmarked or intended for future use by any foreign country may not be 
made available to or for use by any foreign country unless--
            (1) such transfer is authorized under this Act or the Arms 
        Export Control Act; and
            (2) the value of such transfer is charged against funds 
        authorized to carry out the provisions of this Act or against 
        any limitations specified in such legislation, as appropriate, 
        for the fiscal period in which the defense articles are 
        transferred.
    (b) Value.--
            (1) Definition.--For purposes of subsection (a), `value' 
        means acquisition cost plus crating, packing, handling, and 
        transportation costs incurred in carrying out this section.
            (2) Limitation.--A defense article transferred from any 
        stockpile which is made available to or for use by any foreign 
        country may not be considered an excess defense article for the 
        purpose of determining the value of that defense article.

SEC. 8407. LOCATION OF STOCKPILES.

    Except for stockpiles located in the Republic of Korea, Thailand, a 
country which is a member of the North Atlantic Treaty Organization, a 
country which is a major non-NATO ally, or such other countries as the 
President may designate, no stockpile may be located outside the 
boundaries of a United States military base or a military base used 
primarily by the United States.

SEC. 8408. ADDITIONS TO WAR RESERVE STOCKS.

    (a) Limitation.--The value of defense articles to be added to those 
set aside, earmarked, reserved, or intended for use as war reserve 
stocks for allied or other foreign countries (other than for purposes 
of the North Atlantic Treaty Organization) in stockpiles located in 
foreign countries may not exceed in any fiscal year an amount specified 
in legislation authorizing military assistance programs for that fiscal 
year.
    (b) Authorization of Additions.--The value of such additions to 
stockpiles in foreign countries shall not exceed such sums as may be 
authorized for a fiscal year.

SEC. 8409. RETENTION AND USE OF CERTAIN ITEMS AND FUNDS.

    (a) Retention and Use of Certain Articles.--
            (1) Authority to retain, transfer, and use.--Any articles 
        procured to carry out this Act shall be retained by, or (upon 
        reimbursement) transferred to and for the use of, such agency 
        of the United States Government as the President deems 
        appropriate in lieu of being disposed of to a foreign country 
        or international organization, whenever in the judgment of the 
        President the best interests of the United States will be 
        served thereby.
            (2) Laws governing disposal of government property.--Any 
        articles so retained may be disposed of without regard to 
        provisions of law relating to the disposal of property owned by 
        the United States Government, when necessary to prevent 
        spoilage or wastage of such articles or to conserve their 
        usefulness.
            (3) Proceeds credited to appropriations.--Funds realized 
        from any disposal or transfer shall revert to the respective 
        appropriation, fund, or account used to procure such articles 
        or to the appropriation, fund, or account currently available 
        for the same general purpose.
    (b) Articles Received as Payment.--Whenever articles are 
transferred to the United States Government as repayment of assistance 
under this Act or the former authority of the Foreign Assistance Act, 
such articles may be used in furtherance of the purposes and within the 
limitations of this Act.
    (c) Failed Transactions.--Funds realized as a result of any failure 
of a transaction financed under this Act to conform to the requirements 
of this Act, to applicable rules and regulations of the United States 
Government, or to the terms of any agreement or contract entered into 
under this Act, shall revert to the respective appropriation, fund, or 
account used to finance such transaction or to the appropriation, fund, 
or account currently available for the same general purpose.
    (d) Disposal of Defense Articles.--Funds realized by the United 
States Government from the sale, transfer, or disposal of defense 
articles furnished under the former authority of chapter 2 of part II 
of the Foreign Assistance Act of 1961, and no longer needed for the 
purposes for which furnished, shall be credited to the respective 
appropriation, fund, or account currently available for the same 
general purpose.

            Chapter 5--Personnel and Administrative Expenses

                         Subchapter A--General

SEC. 8501. STATUTORY OFFICERS IN THE UNITED STATES AGENCY FOR 
              INTERNATIONAL DEVELOPMENT.

    (a) Appointment.--The President may appoint, by and with the advice 
and consent of the Senate, 12 officers in the United States Agency for 
International Development.
    (b) Title.--The President may designate the title of any officer 
appointed under subsection (a).
    (c) Order of Succession.--The President may also fix the order of 
succession among the officers appointed under subsection (a) of this 
section in the event of the absence, death, resignation, or disability 
of one or more of those officers.

SEC. 8502. EMPLOYMENT OF PERSONNEL.

    (a) Authority.--Any agency or officer of the United States 
Government carrying out functions under this Act is authorized to 
employ such personnel as the President deems necessary to carry out the 
provisions and purposes of this Act.
    (b) Assistance Functions in the United States.--
            (1) Appointments without regard to certain civil service 
        laws.--Of the personnel employed in the United States by the 
        United States Agency for International Development, 110 may be 
        appointed or removed without regard to the provisions of title 
        5, United States Code, governing appointments in the 
        competitive service, and may be compensated without regard to 
        the provisions of chapter 51 or subchapter III of chapter 53 of 
        such title, subject to paragraph (2) of this subsection.
            (2) Compensation.--Of the personnel appointed under 
        paragraph (1), 51 may be compensated at rates higher than those 
        payable for GS-15 of the General Schedule under section 5332 of 
        title 5, United States Code, but not in excess of the highest 
        rate payable under section 5376 of such title.
            (3) Reinstatement rights.--Under such regulations as the 
        President may prescribe, any individual employed under 
        paragraph (1) may be entitled, upon removal (except for cause) 
        from the position to which the appointment was made, to 
        reinstatement to the position occupied by that individual at 
        the time of appointment or to a position of comparable grade 
        and pay.
    (c) Department of Defense Functions in the United States.--Of the 
personnel employed in the United States by the Department of Defense to 
carry out this Act or the Arms Export Control Act not to exceed 8 may 
be compensated at rates higher than those payable for GS-15 of the 
General Schedule under section 5332 of title 5 of the United States 
Code, but not in excess of the highest rate payable under section 5376 
of such title. Such positions shall be in addition to those authorized 
by law to be filled by Presidential appointment, and in addition to the 
number authorized by section 5108 of title 5, United States Code.
    (d) Performance of Functions Outside the United States.--
            (1) Authority to employ or assign.--For the purpose of 
        performing functions under this Act outside the United States, 
        the President may--
                    (A) employ or assign individuals, or
                    (B) authorize the employment or assignment of 
                officers or employees by agencies of the United States 
                Government which are not authorized to utilize the 
                Foreign Service personnel system.
            (2) Compensation.--Individuals employed or assigned under 
        paragraph (1) shall receive compensation at any of the rates 
        provided for under section 402 or section 403 of the Foreign 
        Service Act of 1980, or under chapter 53 of title 5, United 
        States Code, or at any other rate authorized by law, together 
        with allowances and benefits under the Foreign Service Act of 
        1980.
            (3) Reemployment rights.--Individuals so employed or 
        assigned shall be entitled to the same benefits as are provided 
        by section 310 of that Act for individuals appointed to the 
        Foreign Service, except to the extent that the President may 
        specify otherwise in cases in which the period of employment or 
        assignment exceeds 30 months.
    (e) Certain Funds Deemed Obligated for Certain Services.--Funds 
provided for in agreements with foreign countries for the furnishing of 
services under this Act with respect to specific projects shall be 
deemed to be obligated for the services of personnel employed by 
agencies of the United States Government (other than the United States 
Agency for International Development or the Department of Defense) as 
well as personnel not employed by the United States Government.

SEC. 8503. EXPERTS, CONSULTANTS, AND RETIRED OFFICERS.

    (a) Authority To Employ.--Experts and consultants or organizations 
thereof may, in accordance with section 3109 of title 5 of the United 
States Code, be employed for the performance of functions under this 
Act.
    (b) Mandatory Retirement Age Not Applicable.--Service of an 
individual as an expert or consultant under subsection (a) of this 
section shall not be considered as employment or holding of office or 
position bringing such individual within the provisions of section 
3323(a) of title 5 of the United States Code.
    (c) Employment of Certain Persons Without Compensation.--Persons of 
outstanding experience and ability may be employed without compensation 
by any agency of the United States Government for the performance of 
functions under this Act in accordance with the provisions of section 
710(b) of the Defense Production Act of 1950 (50 U.S.C. App. 2160(b)), 
and regulations issued thereunder.

SEC. 8504. DETAIL OF PERSONNEL TO FOREIGN GOVERNMENTS AND INTERNATIONAL 
              ORGANIZATIONS.

    (a) Details to Foreign Governments.--When consistent with and in 
furtherance of the purposes of this Act, the head of any agency of the 
United States Government is authorized to detail any officer or 
employee of that agency to any office or position with any foreign 
government or foreign government agency, where acceptance of such 
office or position does not involve the taking of an oath of allegiance 
to another government or acceptance of compensation or other benefits 
from any foreign country by such officer or employee.
    (b) Details to International Organizations.--When consistent with 
and in furtherance of the purposes of this Act, the head of any agency 
of the United States Government is authorized to detail to any 
international organization or arrangement, any officer or employee of 
that agency to serve with, or as a member of, the international staff 
of such organization, or to render any technical, scientific, or 
professional advice or service to, or in cooperation with, such 
organization.
    (c) Status of Personnel Detailed.--
            (1) Retention of benefits.--Any officer or employee, while 
        detailed under this section--
                    (A) shall be considered an officer or employee of 
                the United States Government and of the agency of the 
                United States Government from which detailed for the 
                purpose of preserving his or her allowances, 
                privileges, rights, seniority, and other benefits as 
                such; and
                    (B) shall continue to receive compensation, 
                allowances, and benefits from funds appropriated to 
                that agency or made available to that agency under this 
                Act, or may be detailed on a leave without pay status.
            (2) Allowances.--Any officer or employee assigned, 
        detailed, or appointed under this section, section 8503, 
        section 8505, or section 8506 may receive (under such 
        regulations as the President may prescribe) representation 
        allowances similar to those allowed under section 905 of the 
        Foreign Service Act of 1980. The authorization of such 
        allowances and other benefits and the payment thereof out of 
        any appropriations available therefor shall be considered as 
        meeting all the requirements of section 5536 of title 5, United 
        States Code.
    (d) Terms of Detail.--Details may be made under this section or 
section 408 of the Mutual Security Act of 1954 in accordance with any 
of the following paragraphs:
            (1) Without reimbursement to the United States Government 
        by the foreign government or international organization;
            (2) Upon agreement by the foreign government or 
        international organization to reimburse the United States 
        Government for compensation, travel expenses, benefits, and 
        allowances, or any part thereof, payable to the officer or 
        employee concerned during the period of detail. Such 
        reimbursements (including foreign currencies) shall be credited 
        to the appropriation, fund, or account utilized for paying such 
        compensation, travel expenses, benefits, or allowances, or to 
        the appropriation, fund, or account currently available for 
        such purposes;
            (3) Upon an advance of funds, property, or services by the 
        foreign government or international organization to the United 
        States Government accepted with the approval of the President 
        for specified uses in furtherance of the purposes of this Act. 
        Funds so advanced may be established as a separate fund in the 
        Treasury of the United States Government, to be available for 
        the specified uses, and to be used for reimbursement of 
        appropriations or direct expenditure subject to the provisions 
        of this Act, any unexpended balance of such account to be 
        returned to the foreign government or international 
        organization; or
            (4) Subject to the receipt by the United States Government 
        of a credit to be applied against the payment by the United 
        States Government of its share of the expenses of the 
        international organization to which the officer or employee is 
        detailed, such credit to be based upon the compensation, travel 
        expenses, benefits and allowances, or any part thereof, payable 
        to such officer or employee during the period of detail in 
        accordance with subsection (c).

SEC. 8505. HEAD OF OFFICES ABROAD.

    (a) Appointment.--The President may appoint a head and deputy head 
of each office or staff maintained under section 8106.
    (b) Compensation and Allowances.--Such head shall be entitled to 
receive such compensation and allowances as are authorized by the 
Foreign Service Act of 1980, not to exceed those authorized for a chief 
of mission (as defined in section 102(a)(3) of that Act), as the 
President deems appropriate.

SEC. 8506. CHAIRMAN OF OECD DEVELOPMENT ASSISTANCE COMMITTEE.

    (a) Appointment.--The President may--
            (1) appoint any United States citizen who is not an 
        employee of the United States Government, or
            (2) assign any United States citizen who is an employee of 
        the United States Government, to serve as Chairman of the 
        Development Assistance Committee (or any successor committee) 
        of the Organization for Economic Cooperation and Development, 
        upon election thereto by members of that Committee.
    (b) Compensation and Allowances.--An individual appointed or 
assigned under subsection (a) may receive such compensation and 
allowances as are authorized by the Foreign Service Act of 1980, not to 
exceed those authorized for a chief of mission (as defined in section 
102(a)(3) of that Act), as the President deems appropriate. Such 
individual, if appointed under subsection (a)(1), shall be deemed to be 
an employee of the United States Government for purposes of chapters 
81, 83, 84, 87, and 89 of title 5, United States Code. Such individual 
may also, in the President's discretion, receive any other benefits and 
perquisites available under this Act to heads of offices or staffs 
maintained under section 8106.

SEC. 8507. ASSIGNMENT OF DOD PERSONNEL TO CIVIL OFFICES.

    Notwithstanding section 973(b) of title 10, United States Code, 
personnel of the Department of Defense may be assigned or detailed to 
any civil office to carry out this Act.

SEC. 8508. DISCRIMINATION AGAINST UNITED STATES PERSONNEL PROVIDING 
              ASSISTANCE.

    It is the Sense of the Congress that--
            (1) the assignment of officers and employees of the United 
        States to carry out any assistance program funded under this 
        Act in any foreign country, should not take into account the 
        race, religion, national origin, or sex of any such officer or 
        employee, and such assignments should be made solely on the 
        basis of ability and relevant experience; and
            (2) assistance under this Act should not be furnished to 
        any foreign country, the laws, regulations, official policies, 
        or governmental practices of which prevent any United States 
        person (as defined in section 7701(a)(30) of the Internal 
        Revenue Code of 1954) from participating in the furnishing of 
        assistance under this Act on the basis of race, religion, 
        national origin, or sex.

SEC. 8509. AVAILABILITY OF FUNDS FOR OPERATING EXPENSES GENERALLY.

    (a) In General.--Funds shall be available to carry out the 
provisions of this section as authorized and appropriated to the 
President each fiscal year.
    (b) Additional Amounts.--There are authorized to be appropriated to 
the President such additional amounts as may be necessary for increases 
in salary, pay, retirement, and other employee benefits authorized by 
law, and for other nondiscretionary costs of such agency.

SEC. 8510. AVAILABILITY OF FUNDS FOR OPERATING EXPENSES OF THE 
              INSPECTOR GENERAL.

    (a) In General.--Funds shall be available to carry out the 
provisions of this section as authorized and appropriated to the 
President each fiscal year.
    (b) Additional Amounts.--There are authorized to be appropriated to 
the President such additional amounts as may be necessary for increases 
in salary, pay, retirement, and other employee benefits authorized by 
law, and for other nondiscretionary costs of such office.

SEC. 8511. AVAILABILITY OF FUNDS.

    Notwithstanding any other provision of law, the United States 
Agency for International Development may obligate and expend funds in 
advance of appropriations in an amount sufficient to maintain 
operations at posts abroad for up to three days.

  Subchapter B--Overseas Management of Assistance and Sales Programs 
             Administered Through The Department of Defense

SEC. 8521. AUTHORIZED FUNCTIONS.

    (a) In General.--In order to carry out responsibilities for the 
management of assistance and sales programs administered through the 
Department of Defense under this Act and under the Arms Export Control 
Act, the President may assign members of the Armed Forces to a foreign 
country to perform one or more of the following functions:
            (1) Equipment and services case management.
            (2) Training management.
            (3) Program monitoring.
            (4) Evaluation and planning of the host government's 
        military capabilities and requirements.
            (5) Administrative support.
            (6) Promoting rationalization, standardization, 
        interoperability, and other defense cooperation measures.
            (7) Liaison functions exclusive of advisory and training 
        assistance.
    (b) Advisory and Training Assistance.--Advisory and training 
assistance conducted by members of the Armed Forces assigned for 
purposes of providing defense articles or defense services shall be 
kept to an absolute minimum. Advising and training assistance in 
countries to which members of the Armed Forces are assigned for such 
purposes should be provided primarily by other personnel who are not 
assigned for such purposes and who are detailed for limited periods to 
perform specific tasks.

SEC. 8522. COSTS.

    The entire costs (excluding salaries of members of the Armed Forces 
other than the Coast Guard) of overseas management of programs for 
providing defense articles and defense services under this Act shall be 
charged to or reimbursed from funds allocated to the Department of 
Defense, pursuant to the authorities of this Act, other than any such 
costs which are either--
            (1) paid directly for such defense services under section 
        21(a) of the Arms Export Control Act, or
            (2) reimbursed from charges for services collected from 
        foreign governments pursuant to section 21(e) and section 43(b) 
        of that Act.

SEC. 8523. ROLE OF CHIEF OF MISSION.

    Members of the Armed Forces assigned to a foreign country under 
section 8521 of this Act shall serve under the direction and 
supervision of the Chief of the United States Diplomatic Mission to 
that country.

 Subchapter C--Administrative Provisions for the Trade and Development 
                                 Agency

SEC. 8531. DIRECTOR AND PERSONNEL.

    (a) Director.--There shall be at the head of the Trade and 
Development Agency a Director who shall be appointed by the President, 
by and with the advice and consent of the Senate.
    (b) Officers and Employees.--
            (1) The Director may appoint such officers and employees of 
        the Trade and Development Agency as the Director considers 
        appropriate.
            (2) The officers and employees appointed under this 
        paragraph shall have such functions as the Director may 
        determine.
            (3) Of the officers and employees appointed under this 
        paragraph, two may be appointed without regard to the 
        provisions of title 5, United States Code, governing 
        appointments in the competitive service, and may be compensated 
        without regard to the provisions of chapter 51 or subchapter 
        III of chapter 53 of such title.
            (4) Under such regulations as the President may prescribe, 
        any individual appointed under subparagraph (C) may be 
        entitled, upon removal (except for cause) from the position to 
        which the appointment was made, to reinstatement to the 
        position occupied by that individual at the time of appointment 
        or to a position of comparable grade and pay.

SEC. 8532. AUDITS.

    (a) In General.--The Trade and Development Agency shall be subject 
to the provisions of chapter 35 of title 31, United States Code, except 
as otherwise provided in this section.
    (b) Independent Audit.--An independent certified public accountant 
shall perform a financial and compliance audit of the financial 
statements of the Trade and Development Agency each year, in accordance 
with generally accepted Government auditing standards for a financial 
and compliance audit, taking into consideration any standards 
recommended by the Comptroller General. The independent certified 
public accountant shall report the results of such audit to the 
Director of the Trade and Development Agency. The financial statements 
of the Trade and Development Agency shall be presented in accordance 
with generally accepted accounting principles. These financial 
statements and the report of the accountant shall be included in a 
report which contains, to the extent applicable, the information 
identified in section 3512 of title 31, United States Code, and which 
the Trade and Development Agency shall submit to the Congress not later 
than 6\1/2\ months after the end of the last fiscal year covered by the 
audit. The Comptroller General may review the audit conducted by the 
accountant and the report to the Congress in the manner and at such 
times as the Comptroller General considers necessary.
    (c) Audit by Comptroller General.--In lieu of the financial and 
compliance audit required by paragraph (2), the Comptroller General 
shall, if the Comptroller General considers it necessary or upon the 
request of the Congress, audit the financial statements of the Trade 
and Development Agency in the manner provided in paragraph (2).
    (d) Availability of Information.--All books, accounts, financial 
records, reports, files, workpapers, and property belonging to or in 
use by the Trade and Development Agency and the accountant who conducts 
the audit under paragraph (2), which are necessary for purposes of this 
subsection, shall be made available to the representatives of the 
General Accounting Office designated by the Comptroller General.

SEC. 8533. ANNUAL REPORT.

    The President shall, not later than December 31 of each year, 
submit to the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Foreign Relations of the Senate a 
report on the activities of the Trade and Development Agency in the 
preceding fiscal year.

   Subchapter D--Administrative Provisions for the Overseas Private 
                         Investment Corporation

SEC. 8541. STOCK OF THE CORPORATION.

    The Secretary of the Treasury shall hold the capital stock of the 
Corporation.

SEC. 8542. ORGANIZATION AND MANAGEMENT.

    (a) Structure of the Corporation.--The Corporation shall have a 
Board of Directors, a President, an Executive Vice President, and such 
other officers and staff as the Board of Directors may determine.
    (b) Board of Directors.--
            (1) In general.--All powers of the Corporation shall vest 
        in and be exercised by or under the authority of its Board of 
        Directors (hereafter in this subchapter referred to as `the 
        Board') which shall consist of 15 Directors (including the 
        Chair and Vice Chair), with 8 Directors constituting a quorum 
        for the transaction of business.
            (2) Composition of the board.--
                    (A) Chair.--The Chair of the Board shall be the 
                Administrator of the United States Agency for 
                International Development, ex officio.
                    (B) Vice chair.--The Vice Chair of the Board shall 
                be the United States Trade Representative, ex officio, 
                except that the United States Trade Representative may 
                designate the Deputy United States Trade Representative 
                to serve as Vice Chairman in place of the United States 
                Trade Representative.
                    (C) President of opic.--The President of the 
                Corporation shall serve as a Director, ex officio.
                    (D) Public sector directors.--(i) In addition to 
                the directors provided for in subparagraphs (A) through 
                (C), five Directors who are officers or employees of 
                the Government of the United States shall be designated 
                by the President of the United States, including an 
                officer or employee of the Department of Labor.
                    (ii) The Directors designated under this 
                subparagraph shall receive no additional compensation 
                by virtue of their service as such a Director.
                    (E) Private sector directors.--Eight Directors who 
                are not otherwise officers or employees of the 
                Government of the United States shall be appointed by 
                the President of the United States, by and with the 
                advice and consent of the Senate. Of these, at least--
                            (i) two shall be experienced in small 
                        business,
                            (ii) one shall be experienced in organized 
                        labor, and
                            (iii) one shall be experienced in 
                        cooperatives.
                    (F) Each Director appointed under subparagraph 
                (E)--
                            (i) shall be appointed for a term of not 
                        more than 3 years; the terms of not more than 
                        three such Directors shall expire in any 1 
                        year;
                            (ii) shall serve until their successors are 
                        appointed and qualified and may be reappointed 
                        to subsequent terms; and
                            (iii) shall be compensated at the daily 
                        equivalent of the annual rate of pay in effect 
                        for level IV of the Executive Schedule under 
                        section 5315 of title 5, United States Code, 
                        for each day (including travel time) during 
                        which such Director is actually engaged in the 
                        business of the Corporation, and may be paid 
                        travel or transportation expenses to the extent 
                        authorized for employees serving intermittently 
                        in the Government service under section 5703 of 
                        title 5, United States Code.
    (c) Appointment of the President.--The President of the Corporation 
shall be appointed by the President of the United States, by and with 
the advice and consent of the Senate. In making such appointment, the 
President shall take into account the private business experience of 
the appointee. The President of the Corporation shall be its Chief 
Executive Officer and shall be responsible for the operations and 
management of the Corporation, subject to bylaws and policies 
established by the Board.
    (d) Officers and Staff.--
            (1) Executive vice president.--The Executive Vice President 
        of the Corporation shall be appointed by the President of the 
        United States, by and with the advice and consent of the 
        Senate.
            (2) Other officers and staff.--(A) The Corporation may 
        appoint such other officers and such employees (including 
        attorneys) and agents as the Corporation considers appropriate.
            (B) The officers, employees, and agents appointed under 
        this subsection shall have such functions as the Corporation 
        may determine.
            (C) Of the officers, employees, and agents appointed under 
        this paragraph, 20 may be appointed, compensated or removed 
        without regard to civil service laws and regulations.
            (D) Under such regulations as the President of the United 
        States may prescribe, any individual appointed under 
        subparagraph (C) may be entitled, upon removal (except for 
        cause) from the position to which the appointment was made, to 
        reinstatement to the position occupied by that individual at 
        the time of appointment or to a position of comparable grade 
        and pay.

SEC. 8543. INCOME AND REVENUES.

    In order to carry out the purposes of the Corporation, all revenues 
and income transferred to or earned by the Corporation, from whatever 
source derived, except for payments to the financing account, shall be 
held by the Corporation and shall be available to carry out its 
purposes, including without limitation--
            (1) payment of all expenses of the Corporation, including 
        investment promotion expenses;
            (2) transfers and additions to the insurance reserve, 
        financing accounts and such other funds, accounts or reserves 
        as the Corporation may establish, at such time and in such 
        amounts as the Board may determine; and
            (3) payment of dividends, on capital stock, which shall 
        consist of and be paid from net earnings of the Corporation 
        after payments, transfers, and additions under paragraphs (1) 
        and (2).

SEC. 8544. GENERAL PROVISIONS RELATING TO INSURANCE AND FINANCING 
              PROGRAM.

    (a) Agreements With Countries.--Insurance, reinsurance, and 
guarantees issued under chapter 1 of title V shall not cover investment 
made in connection with projects in any country or area unless the 
President of the United States has agreed with the government of such 
country or area to institute a program for such insurance, reinsurance, 
or guarantees.
    (b) Protection of Interests of the Corporation.--The Corporation 
shall determine that suitable arrangements exist for protecting the 
interest of the Corporation in connection with any insurance, 
reinsurance, or guarantee issued under chapter 1 of title V, including 
arrangements concerning ownership, use, and disposition of the 
currency, credits, assets, or investments on account of which payment 
under such insurance, guarantee, or reinsurance is to be made, and any 
right, title, claim, or cause of action existing in connection 
therewith.
    (c) Full Faith and Credit Pledged.--All guarantees issued pursuant 
to predecessor guarantee authority, and all insurance, reinsurance, and 
guarantees issued pursuant to chapter 1 of title V shall constitute 
obligations, in accordance with the terms of such insurance, 
reinsurance, or guarantees, of the United States of America, and the 
full faith and credit of the United States of America is hereby pledged 
for the full payment and performance of such obligations.
    (d) Fees.--Fees may be charged for providing insurance, 
reinsurance, financing, and other services under chapter 1 of title V 
in amounts to be determined by the Corporation. Fees paid for project-
specific transaction costs and other transaction costs, including but 
not limited to project-related travel and expenses for legal 
representation, associated with services provided to specific investors 
or potential investors pursuant to section 5102, including financing, 
insurance, reinsurance, missions, seminars, conferences, and other pre-
investment services, shall be available for obligation for the purposes 
for which they were collected notwithstanding any other provision of 
law. Transaction costs relating to investment financing commitments 
entered into pursuant to section 5102(b) shall be considered cash flows 
from the Government resulting from financing commitments and shall be 
paid out of the appropriate financing account established pursuant to 
section 505(b) of the Federal Credit Reform Act of 1990.
    (e) Insurance, Reinsurance, and Financing Limited to 20 Years.--No 
insurance, reinsurance, or financing of any equity investment under 
chapter 1 of title V shall extend beyond 20 years from the date on 
which such insurance, reinsurance, or financing is issued.
    (f) Amount of Compensation Paid on Claims.--Compensation for any 
insurance, reinsurance, or financing issued under chapter 1 of title V 
shall not exceed the dollar value, as of the date of the investment, of 
the investment made in the project with the approval of the Corporation 
plus interest, earnings, or profits actually accrued on such investment 
to the extent provided by such insurance, reinsurance, or guarantee, 
except that the Corporation may provide that--
            (1) appropriate adjustments in the insured dollar value may 
        be made to reflect the replacement cost of project assets;
            (2) compensation for a claim of loss under insurance of an 
        equity investment may be computed on the basis of the net book 
        value attributable to such equity investment on the date of 
        loss; and
            (3) compensation for loss due to business interruption may 
        be computed on a basis to be determined by the Corporation 
        which reflects amounts lost.
Notwithstanding the preceding sentence, the Corporation shall limit the 
amount of direct insurance and reinsurance issued under section 5102 or 
5103 so that risk of loss as to at least 10 percent of the total 
investment of the insured and its affiliates in the project is borne by 
the insured and such affiliates, except that this limitation shall not 
apply to direct insurance or reinsurance of loans by banks or other 
financial institutions to unrelated parties.
    (g) Limitation With Respect to Foreign Credit Institutions.--
Insurance, guarantees, or reinsurance of a loan or equity investment of 
an eligible investor in a foreign bank, finance company, or other 
credit institution shall extend only to such loan or equity investment 
and not to any individual loan or equity investment made by such 
foreign bank, finance company, or other credit institution.
    (h) Settlement and Arbitration of Claims.--Claims arising as a 
result or insurance, reinsurance, or guarantee operations under chapter 
1 of title V or under predecessor guarantee authority may be settled, 
and disputes arising as a result thereof may be arbitrated with the 
consent of the parties, on such terms and conditions as the Corporation 
may determine. Payment made pursuant to any such settlement, or as a 
result of an arbitration award, shall be final and conclusive 
notwithstanding any other provision of law.
    (i) Contracts Presumed To Comply With Act.--Each insurance, 
reinsurance, or guarantee contract executed by such officer or officers 
as may be designated by the Board shall be conclusively presumed to be 
issued in compliance with the requirements of this Act.
    (j) Penalties for Fraud.--Whoever knowingly makes any false 
statement or report, or willfully overvalues any land, property, or 
security, for the purpose of influencing in any way the action of the 
Corporation with respect to any insurance, reinsurance, guarantee, 
loan, equity investment, or other activity of the Corporation under 
section 5102 or any change or extension of any such insurance, 
reinsurance, guarantee, loan, equity investment, or activity, by 
renewal, deferment of action or otherwise, or the acceptance, release, 
or substitution of security therefor, shall be fined not more than 
$1,000,000 or imprisoned not more than 30 years, or both.
    (k) Use of Local Currencies.--Direct loans or investments made in 
order to preserve the value of funds received in inconvertible foreign 
currency by the Corporation as a result of activities conducted 
pursuant to section 5102(a) shall not be considered in determining 
whether the Corporation has made or has outstanding loans, guaranties, 
or investments to the extent of any limitation on obligations, 
commitments, and equity investment imposed by or pursuant to chapter 1 
of title V. The provision of section 504(b) of the Federal Credit 
Reform Act of 1990 shall not apply to direct loan obligations made with 
funds described in this subsection.
    (l) Termination.--Provisions of this or any other Act requiring the 
termination of assistance under this or any other Act shall not be 
construed to require the termination of contracts or commitments that 
were entered or were being processed under chapter 1 of title V prior 
to the effective date of the termination of assistance.

SEC. 8545. GENERAL PROVISIONS AND POWERS.

    (a) Principal Office.--The Corporation shall have its principal 
office in the District of Columbia and shall be deemed, for purposes of 
venue in civil actions, to be a resident of the District of Columbia.
    (b) Audits.--
            (1) In general.--The Corporation shall be subject to the 
        applicable provisions of chapter 91 of title 31, United States 
        Code, except as otherwise provided in this Act.
            (2) Independent audit.--An independent certified public 
        accountant shall perform a financial and compliance audit of 
        the financial statements of the Corporation each year, in 
        accordance with generally accepted Government auditing 
        standards for a financial and compliance audit. The independent 
        certified public accountant shall report the results of such 
        audit to the Board. The financial statements of the Corporation 
        shall be presented in accordance with generally accepted 
        accounting principles. These financial statements and the 
        report of the accountant shall be included in a report which 
        contains, to the extent applicable, the information identified 
        in section 9106 of title 31, United States Code, and which the 
        Corporation shall submit to the Congress not later than 6\1/2\ 
        months after the end of the last fiscal year covered by the 
        audit. The Comptroller General may review the audit conducted 
        by the accountant and report to the Congress in the manner and 
        at such times as the Comptroller General considers necessary.
            (3) Audit by comptroller general.--The Comptroller General 
        shall, if the Comptroller General considers it necessary or 
        upon the request of the Congress, audit the financial 
        statements of the Corporation in the manner provided in 
        paragraph (2).
            (4) Availability of information.--All books, accounts, 
        financial records, reports, files, work papers, and property 
        belonging to or in use by the Corporation and the accountant 
        who conducts the audit under paragraph (2), which are necessary 
        for purposes of this subsection, shall be made available to the 
        representatives of the General Accounting Office designated by 
        the Comptroller General.
    (c) Powers.--To carry out the purposes of chapter 1 of title V, the 
Corporation is authorized--
            (1) to adopt and use a corporate seal, which shall be 
        judicially noticed;
            (2) to sue and be sued in its corporate name;
            (3) to adopt, amend, and repeal bylaws governing the 
        conduct of its business and the performance of the powers and 
        duties granted to or imposed upon it by law;
            (4) to acquire, hold, or dispose of, upon such terms and 
        conditions as the Corporation may determine, any property, 
        real, personal, or mixed, tangible or intangible, or any 
        interest therein;
            (5) to invest funds derived from fees and other revenues in 
        obligations of the United States and to use the proceeds 
        therefrom, including earnings and profits, as it considers 
        appropriate;
            (6) to indemnify directors, officers, employees, and agents 
        of the Corporation for liabilities and expenses incurred in 
        connection with their Corporation activities;
            (7) to require bonds of officers, employees, and agents and 
        to pay the premiums therefor;
            (8) notwithstanding any other provision of law, to 
        represent itself or to contract for representation in all legal 
        and arbitral proceedings;
            (9) to enter into limited-term contracts with nationals of 
        the United States for personal services to carry out activities 
        in the United States and abroad under section 5102;
            (10) to purchase, discount, rediscount, sell, and 
        negotiate, with or without its endorsement or guarantee, and 
        guarantee notes, participation certificates, and other evidence 
        of indebtedness (except that the Corporation shall not issue 
        its own securities, except participation certificates for the 
        purpose of carrying out section 5101(c)(3), participation 
        certificates in connection with transactions authorized by 
        5102(b), or participation certificates as evidence of 
        indebtedness held by the Corporation in connection with 
        settlement of claims under section 8544(h));
            (11) to make and carry out such contracts and agreements as 
        are necessary and advisable in the conduct of its business;
            (12) to exercise any priority of the government of the 
        United States in collecting debts from the estates of bankrupt, 
        insolvent, or decedent parties;
            (13) to determine the character of and the necessity for 
        its obligations and expenditures, and the manner in which they 
        shall be incurred, allowed, and paid, subject to provisions of 
        law specifically applicable to Government corporations;
            (14) to collect or compromise any obligations assigned to 
        or held by the Corporation, including any legal or equitable 
        rights accruing to the Corporation; and
            (15) to take such actions as may be necessary or 
        appropriate to carry out the powers of the Corporation.
    (d) Inspector General.--
            (1) Authority.--The Inspector General of the United States 
        Agency for International Development may conduct audits, 
        investigations, and inspections of all phases of the 
        Corporation's operations and activities.
            (2) Relation to president of corporation.--The Inspector 
        General shall report to and be under the general supervision of 
        the President of the Corporation with respect to activities 
        undertaken pursuant to this subsection, except that the 
        President of the Corporation shall not prevent or prohibit the 
        Inspector General from initiating, carrying out, or completing 
        any such activity in accordance with the duties, authorities, 
        and responsibilities contained in the Inspector General Act of 
        1978 and any other applicable law or regulation.
            (3) Expenses.--The Inspector General shall be reimbursed by 
        the Corporation for all expenses incurred by the Inspector 
        General in connection with the Inspector General's 
        responsibilities under this subsection.
            (4) Inspector general act.--For purposes of the Inspector 
        General Act of 1978, the Corporation shall continue to be 
        considered a Federal entity and the President of the 
        Corporation shall be considered the head of the Federal entity.
            (5) Semiannual report.--The semiannual report required 
        under section 5 of the Inspector General Act of 1978 shall 
        include information relating to activities of the Inspector 
        General undertaken pursuant to this subsection.
    (e) Exemption From State and Local Taxation.--The Corporation 
(including its franchise, capital, reserves, surplus, advances, 
intangible property, and income) shall be exempt from all taxation at 
any time imposed by any State, the District of Columbia, or any county, 
municipality, or local taxing authority.

SEC. 8546. ANNUAL REPORT; MAINTENANCE OF INFORMATION.

    (a) Annual Report.--After the end of each fiscal year, the 
President shall submit to the Congress a complete and detailed report 
of the Corporation's operations during such fiscal year. Such report 
shall include--
            (1) an assessment, based upon the development impact 
        profiles required by section 5105(a), of the economic and 
        social development impact and benefits of the projects with 
        respect to which such profiles are prepared, and of the extent 
        to which the operations of the Corporation complement or are 
        compatible with the development assistance programs of the 
        United States and other donors; and
            (2) a description of any project for which the Corporation 
        refused to provide any insurance, reinsurance, financing, or 
        other financial support, on account of violations of human 
        rights referred to in section 8543(d).
    (b) Projections of Effects on Employment.--
            (1) In general.--Each annual report required by subsection 
        (a) shall contain projections of the effects on employment in 
        the United States of all projects for which, during the fiscal 
        year covered by the report, the Corporation initially issued 
        any insurance, reinsurance, or guarantee or provided financing. 
        Each such report shall include projections of--
                    (A) the amount of United States exports to be 
                generated by those projects, both during the start-up 
                phase and over a period of years;
                    (B) the final destination of the products to be 
                produced as a result of those projects; and
                    (C) the impact such production will have on the 
                production of similar products in the United States 
                with regard to both domestic sales and exports.
            (2) Information in aggregate form.--The projections 
        required by this subsection shall be based on an analysis of 
        each of the projects described in paragraph (1). Such 
        projections may, however, present information and analysis in 
        aggregate form, but only if--
                    (A) those projects which are projected to have a 
                positive effect on employment in the United States and 
                those projects which are projected to have a negative 
                effect on employment in the United States are grouped 
                separately; and
                    (B) there is set forth for each such grouping the 
                key characteristics of the projects within that 
                grouping, including the number of projects in each 
                economic sector, the countries in which the projects in 
                each economic sector are located, and the projected 
                level of the impact of the projects in each economic 
                sector on employment in the United States and on United 
                States trade.
    (c) Maintenance of Information.--The Corporation shall maintain as 
part of its records--
            (1) all information collected in preparing the report 
        required by section 240A(c) of the Foreign Assistance Act of 
        1961 (as in effect before the enactment of the Overseas Private 
        Investment Corporation Amendments Act of 1988), whether the 
        information was collected by the Corporation itself or by a 
        contractor; and
            (2) a copy of the analysis of each project analyzed in 
        preparing the projections required by subsection (b) of this 
        section or the report required by section 240A(c) of the 
        Foreign Assistance Act of 1961 (as in effect before the 
        enactment of the Overseas Private Investment Corporation 
        Amendments Act of 1988).
    (d) Protection of Certain Information.--Subsection (b) does not 
require the inclusion in any information submitted pursuant to that 
subsection of any information which would not be required to be made 
available to the public pursuant to section 552 of title 5, United 
States Code (relating to freedom of information).

SEC. 8547. DEFINITIONS.

    As used in chapter 1 of title V and this subchapter, the following 
terms have the following meanings:
            (1) Board.--The term ``Board'' means the Board of Directors 
        of the Overseas Private Investment Corporation.
            (2) Corporation.--The term ``Corporation'' means the 
        Overseas Private Investment Corporation.
            (3) Eligible investor.--(A) The term ``eligible investor'' 
        means--
                    (i) a United States citizen;
                    (ii) a corporation, partnership, or other 
                association, including a nonprofit association, which 
                is created under the laws of the United States, any 
                State, the District of Columbia, or any commonwealth, 
                territory, or possession of the United States, and 
                which is substantially beneficially owned by United 
                States citizens; and
                    (iii) a foreign corporation, partnership, or other 
                association which is wholly owned by one or more United 
                States citizens or corporations, partnerships, or other 
                associations described in clause (ii), except that the 
                eligibility of any such foreign corporation shall be 
                determined without regard to any shares held by other 
                than United States citizens or corporations, 
                partnerships, or other associations described in clause 
                (ii) if, in the aggregate, such shares equal less than 
                5 percent of the total issued and subscribed share 
                capital of such foreign corporation.
            (B) For purposes of subparagraph (A)--
                    (i) in the case of insurance or a guarantee for any 
                loan investment, a final determination of whether a 
                person is an eligible investor may be made at the time 
                the insurance or guarantee is issued; and
                    (ii) in the case of insurance or a guarantee for 
                any other investment, an investor must be an eligible 
                investor at the time a claim arises as well as the time 
                the insurance or guarantee is issued.
            (4) Expropriation.--The term ``expropriation'' includes any 
        abrogation, repudiation, or impairment by a foreign government 
        of its own contract with an investor with respect to a project, 
        where such abrogation, repudiation, or impairment is not caused 
        by the investor's own fault or misconduct, and materially 
        adversely affects the continued operation of the project.
            (5) Investment.--The term ``investment'' includes any 
        contribution or commitment of funds, commodities, services, 
        patents, processes, or techniques, in the form of--
                    (A) a loan or loans to an approved project,
                    (B) the purchase of a share of ownership in any 
                such project,
                    (C) participation in royalties, earnings, or 
                profits of any such project, and
                    (D) the furnishing of commodities or services 
                pursuant to a lease or other contract.
            (6) Predecessor guarantee authority.--The term 
        ``predecessor guarantee authority'' means prior guarantee 
        authorities (other than housing guarantee authorities) repealed 
        by the Foreign Assistance Act of 1969, sections 202(b) and 
        413(b) of the Mutual Security Act of 1954, and section 
        111(b)(3) of the Economic Cooperation Act of 1948 (exclusive of 
        authority relating to informational media guarantees).

         Subchapter E--Definitions and Miscellaneous Provisions

SEC. 8551. DEFINITIONS.

    (a) For purposes of this Act, the following terms have the 
following meanings:
            (1) Agency of the united states government.--The term 
        ``agency of the United States Government'' includes any agency, 
        department, board, wholly or partly owned corporation, 
        instrumentality, commission, or establishment of the United 
        States Government.
            (2) Country.--The term ``country'' includes area.
            (3) Developing country.--The term ``developing country'' 
        includes advanced developing country.
            (4) Function.--The term ``function'' includes any duty, 
        obligation, power, authority, responsibility, right, privilege, 
        discretion, or activity.
            (5) Gross violations of internationally recognized human 
        rights.--The term ``gross violations of internationally 
        recognized human rights'' includes torture or cruel, inhuman, 
        or degrading treatment or punishment, prolonged detention 
        without charges and trial, causing the disappearance of persons 
        by the abduction and clandestine detention of those persons, 
        and other flagrant denial of the right to life, liberty, or the 
        security of person.
            (6) Includes.--The term ``includes'' means includes but is 
        not limited to.
            (7) Notwithstanding.--The terms ``notwithstanding any other 
        provision of law'' and ``notwithstanding any provision of this 
        or any other Act'' shall not apply to title 31, United States 
        Code, the Congressional Budget and Impoundment Control Act of 
        1974, the Balanced Budget and Emergency Deficit Control Act of 
        1985, and the Budget Enforcement Act of 1990.
            (8) Officer or employee.--The term ``officer or employee'' 
        means civilian personnel of the United States Government and 
        members of the Armed Forces.
            (9) Nonnuclear-weapon state.--The term ``nonnuclear-weapon 
        state'' means any country which is not a nuclear-weapon state, 
        as defined in article IX(3) of the Treaty on the Non-
        Proliferation of Nuclear Weapons.
            (10) United states.--The term ``United States'', when used 
        in the geographic sense, includes the Commonwealth of Puerto 
        Rico, the Commonwealth of the Northern Mariana Islands, Guam, 
        American Samoa, the Virgin Islands, and any other territory or 
        possession of the United States.
            (11) Major illicit drug producing country.--The term 
        ``major illicit drug producing country'' means a country 
        producing five metric tons or more of opium or opium derivative 
        during a fiscal year or producing five hundred metric tons or 
        more of coca or marijuana (as the case may be) during a fiscal 
        year.
            (12) Major drug transit country.--The term ``major drug 
        transit country'' means a country--
                    (A) that is a significant direct source of illicit 
                narcotic or psychotropic drugs or other controlled 
                substances significantly affecting the United States;
                    (B) through which are transported such drugs or 
                substances; or
                    (C) through which significant sums of drug-related 
                profits or monies are laundered with the knowledge or 
                complicity of the government.
            (13) Narcotic and psychotropic drugs and other controlled 
        substances.--The term ``narcotic and psychotropic drugs and 
        other controlled substances'' has the same meaning as is given 
        by any applicable international narcotics control agreement or 
        domestic law of the country or countries concerned.
            (14) Agriculture.--The term ``agriculture'' includes 
        aquaculture and fisheries.
            (15) Farmers.--The term ``farmers'' includes fishermen and 
        other persons employed in cultivating and harvesting food 
        resources from salt and fresh waters.
            (16) Institution of higher education.--The term 
        ``institution of higher education'' has the same meaning that 
        term is given by section 1201(a) of the Higher Education Act of 
        1965.
            (17) Armed forces.--The term ``Armed Forces'' means the 
        Army, Navy, Air Force, Marine Corps, and Coast Guard of the 
        United States.
            (18) Defense article and related terms.--The terms 
        ``defense article'', ``significant military equipment'' and 
        ``major defense equipment'' shall have the same meaning as in 
        the Arms Export Control Act. The term ``defense service'' 
        includes any service (including education and training), test, 
        inspection, repair, publication, or technical or other 
        assistance or defense information used for the purpose of 
        furnishing assistance administered through the Department of 
        Defense under this Act.
            (19) Excess defense articles.--The term ``excess defense 
        articles'' means the quantity of defense articles owned by the 
        United States Government, and not procured in anticipation of 
        defense assistance or sales requirements, or pursuant to a 
        defense assistance or sales order, which is in excess of the 
        Approved Acquisition Objective of all Department of Defense 
        Components at the time such articles are dropped from inventory 
        by the supplying agency for delivery to countries or 
        international organizations under this Act.
            (20) Value.--The term ``value'' means--
                    (A) with respect to an excess defense article, the 
                actual value of the article plus the gross cost 
                incurred by the United States Government in repairing, 
                rehabilitating, or modifying the article, except that 
                for purposes of section 8201(c) such actual value shall 
                not be taken into account;
                    (B) with respect to a nonexcess defense article 
                delivered from inventory to a foreign country or 
                international organization under this Act, the 
                acquisition cost to the United States Government, 
                adjusted as appropriate for condition and market value;
                    (C) with respect to a nonexcess defense article 
                delivered from new procurement to a foreign country or 
                international organization under this Act, the contract 
                or production costs of such article.
            (21) Assistance administered through the department of 
        defense.--The term ``assistance administered through the 
        Department of Defense'' means--
                    (A) the financing (including the guarantee of 
                financing) of sales of defense articles (including 
                excess defense articles) and defense services 
                (including education and training) made or licensed 
                pursuant to sections 21, 22, 29, and 38 of the Arms 
                Export Control Act and the lease of defense articles 
                made pursuant to chapter 6 of that Act;
                    (B) the provision of education or training through 
                the Department of Defense under this Act;
                    (C) the provision of excess defense articles 
                through the Department of Defense under section 8405 of 
                this Act; or
                    (D) the provision of assistance through the 
                Department of Defense under sections 3103, 3204, 7111 
                and 7115(b) of this Act.

SEC. 8552. ACTIVITIES UNDER OTHER LAWS NOT AFFECTED.

    Unless expressly provided to the contrary, provisions of this Act 
and other provisions of law applicable to foreign assistance shall not 
be construed to prohibit (or, with respect to the Export-Import Bank of 
the United States, apply to) activities authorized by or conducted 
under the Peace Corps Act, the United States Information and 
Educational Exchange Act of 1948, the Mutual Educational and Cultural 
Exchange Act of 1961, the Export-Import Bank Act of 1945, the 
Agricultural Act of 1949, the Agricultural Trade Development and 
Assistance Act of 1954, the Food for Progress Act of 1985, the Inter-
American Foundation Act, the African Development Foundation Act, 
commercial export promotion activities of the Department of Agriculture 
(including the Commodity Credit Corporation), or to programs for which 
funds are made available outside Budget Function 150.

             TITLE IX--TECHNICAL AND CONFORMING PROVISIONS

SEC. 9101. EFFECTIVE DATE.

    Except as otherwise provided in this Act, the provisions of this 
Act shall take effect on October 1, 1994.

SEC. 9102. SAVINGS PROVISIONS.

    (a) In General.--(1) Except as may be expressly provided to the 
contrary in this Act, all determinations, authorizations, regulations, 
orders, contracts, agreements, and other actions issued, undertaken, or 
entered into under authority of any provision of law repealed by this 
Act shall continue in full force and effect until modified by 
appropriate authority.
    (2) Wherever provisions of this Act establish conditions which must 
be complied with before use may be made of authority contained in, or 
funds made available to carry out the provisions of, this Act, 
compliance with, or satisfaction of, substantially similar conditions 
under provisions repealed by this Act shall be deemed to constitute 
compliance with the conditions established by this Act.
    (3) Funds made available pursuant to provisions of law repealed by 
this Act shall, unless otherwise authorized or provided by law, remain 
available for their original purposes in accordance with the provisions 
of law originally applicable thereto, or in accordance with the 
provisions of law currently applicable to those purposes.
    (4) References in law to provisions repealed by this Act may 
hereafter be deemed to be references to corresponding provisions of 
this Act, on a case-by-case basis as may be appropriate.
    (b) Certain Presidential Appointees.--The repeal by this Act of any 
provision of the Foreign Assistance Act of 1961 providing for the 
appointment of an individual to a position by the President, by and 
with the advice and consent of the Senate, and the reenactment by this 
Act of that provision in substantively identical form does not require 
the reappointment of the individual holding that position on the 
effective date specified in section 9101.
    (c) Section 124(c) Authority.--Section 124(c) of the Foreign 
Assistance Act of 1961, as in effect before the effective date 
specified in section 9101 of this Act, shall be deemed to remain in 
effect on and after that date. For purposes of this section, references 
in section 124(c) to sections 101 and 102 of the Foreign Assistance Act 
of 1961 shall be deemed to be references to sections 1101 and 1102 of 
this Act, respectively.
    (d) Guarantees and Loans Under Former Authority.--Guarantees 
committed or outstanding under the former authorities of sections 108, 
222, and 222A of the Foreign Assistance Act of 1961, as in effect 
before the effective date specified in section 9101 of this Act, loans 
obligated under section 108 on or before such date, the fees and 
interest collected in connection with such guarantees and loans, and 
income on claims receivable with respect to such guarantees and loans, 
shall continue to be subject to provisions of such Act originally 
applicable to those guarantees and loans and the Federal Credit Reform 
Act of 1990.

SEC. 9103. MISCELLANEOUS PROVISIONS.

    (a) Federal Act of State Doctrine.--
            (1) In general.--Notwithstanding any other provision of 
        law, no court in the United States shall decline on the ground 
        of the federal act of state doctrine to make a determination on 
        the merits giving effect to the principles of international law 
        in a case in which claim of title or other right to property is 
        asserted by any party, including a foreign state (or a party 
        claiming through such state), based upon (or traced through) a 
        confiscation or other taking after January 1, 1959, by an act 
        of that state in violation of the principles of international 
        law, including the principles of compensation and the other 
        standards set out in section 620(e)(1) of the Foreign 
        Assistance Act of 1961 as in effect before the effective date 
        of this section.
            (2) Exceptions.--This subsection shall not be applicable--
                    (A) in any case in which an act of a foreign state 
                is not contrary to international law or with respect to 
                a claim of title or other right to property acquired 
                pursuant to an irrevocable letter of credit of not more 
                than 180 days duration issued in good faith prior to 
                the time of the confiscation or other taking; or
                    (B) in any case with respect to which the President 
                determines that application of the act of state 
                doctrine is required in that particular case by the 
                foreign policy interests of the United States and a 
                suggestion to this effect is filed on his behalf in 
                that case with the court.
    (b) Accounting and Valuation of Foreign Currencies.--
            (1) Under the direction of the President, the Secretary of 
        the Treasury shall have responsibility for valuation and 
        central accounting with respect to foreign credits (including 
        currencies) owed to or owned by the United States. In order to 
        carry out such responsibility, the Secretary shall issue 
        regulations binding upon all agencies of the United States 
        Government.
            (2) The Secretary of the Treasury shall have sole authority 
        to establish for all foreign currencies or credits the exchange 
        rates at which such currencies are to be reported by all 
        agencies of the Government.
    (c) Valuation of Expropriated Property.--
            (1) Valuation.--If the President requests such an 
        evaluation, the Foreign Claims Settlement Commission is 
        authorized to evaluate the value of the property which is the 
        subject of an action described in section 7201(a)(3) of this 
        Act and render an advisory report with respect to the value of 
        such property to the President.
            (2) Definition of united states person.--For purposes of 
        section (a)(3), the term `United States person' means a United 
        States citizen or a corporation, partnership, or association at 
        least 50 percent beneficially owned by United States citizens.
    (d) Participation in Foreign Police Actions.--
            (1) Prohibition on effecting an arrest.--No officer or 
        employee of the United States may directly effect an arrest in 
        any foreign country as part of any foreign police action with 
        respect to narcotics control efforts, notwithstanding any other 
        provision of law.
            (2) Exceptions.--Paragraph (1) does not prohibit an officer 
        or employee of the United States--
                    (A) with the approval of the United States chief of 
                mission, from being present when foreign officers are 
                effecting an arrest or from assisting foreign officers 
                who are effecting an arrest.
                    (B) from taking direct action to protect life or 
                safety if exigent circumstances arise which are 
                unanticipated and which pose an immediate threat to 
                United States officers or employees, officers or 
                employees of a foreign government, or members of the 
                public.
            (3) Maritime law enforcement.--With the agreement of a 
        foreign country, paragraph (1) does not apply with respect to 
        maritime law enforcement operations in the territorial sea of 
        that country.
            (4) Interrogations.--No officer or employee of the United 
        States may interrogate or be present during the interrogation 
        of any United States person arrested in any foreign country 
        with respect to narcotics control efforts without the written 
        consent of such person.
            (5) Exception for status of forces arrangements.--This 
        section does not apply to the activities of the United States 
        Armed Forces in carrying out their responsibilities under 
        applicable Status of Forces arrangements.
            (6) Definition.--For purposes of this subsection, the term 
        ``legal and law enforcement measures'' means--
                    (A) the enactment and implementation of laws and 
                regulations or the implementation of existing laws and 
                regulations to provide for the progressive control, 
                reduction, and gradual elimination of the illicit 
                cultivation, production, processing, transportation, 
                and distribution of narcotic drugs and other controlled 
                substances; and
                    (B) the effective organization, staffing, 
                equipping, funding, and activation of those 
                governmental authorities responsible for narcotics 
                control.

SEC. 9104. CONFORMING AND OTHER AMENDMENTS.

    (a) Title 5, United States Code.--Subchapter II of chapter 53 of 
title 5, United States Code, is amended--
            (1) in section 5314, by striking out ``Director, Institute 
        for Scientific and Technological Cooperation.'';
            (2) in section 5315, by striking out ``Deputy Director, 
        Institute for Scientific and Technological Cooperation.''; and
            (3) in section 5316, by striking out ``Additional officers, 
        Institute for Scientific and Technological Cooperation (2).''.
    (b) Title 15, United States Code.--Section 638(e)(1) of title 15, 
United States Code is amended by striking out ``for the Agency'' 
through ``countries'' and inserting in lieu thereof ``the provisions of 
this section shall not be applicable to the programs administered by 
the United States Agency for International Development''.
    (c) Arms Export Control Act--The Arms Export Control Act is amended 
as follows:
            (1) Section 2(b) is amended by striking out--
                    (A) ``or financing for'' in paragraph (1); and
                    (B) ``financing,'' both other places it appears.
            (2) Section 3(c) is amended--
                    (A) in paragraph (1), by striking out ``(1)(A) No'' 
                and all that follows through ``(B) No cash'' and 
                inserting in lieu thereof ``(1) No'';
                    (B) in paragraph (1), as amended by subparagraph 
                (A), by striking out ``under this Act, or any 
                predecessor Act,'' and inserting in lieu thereof ``, 
                through sale, financing or otherwise, under this Act or 
                the Peace, Prosperity, and Democracy Act of 1994 (or 
                under any predecessor military sales or foreign 
                assistance legislation)'';
                    (C) in paragraph (3)(A), by striking out 
                ``subparagraph (A)'' and all that follows through 
                ``such paragraphs,'' and inserting in lieu thereof 
                ``paragraph (1)''; and
                    (D) in paragraph (3)(B), by striking out 
                ``subparagraph (B) of''.
            (3) Section 3 is amended--
                    (A) in subsection (d), by striking out ``section 
                505(a)(1) or 505(a)(4) of the Foreign Assistance Act of 
                1961'' and inserting in lieu thereof ``section 
                8212(a)(1) of the Peace, Prosperity, and Democracy Act 
                of 1994''; and
                    (B) in subsection (e), by striking out ``section 
                505 of the Foreign Assistance Act of 1961'' and 
                inserting in lieu thereof ``section 8212(a)(1) of the 
                Peace, Prosperity, and Democracy Act of 1994''.
            (4) Section 4 is amended by inserting after ``such friendly 
        countries'' ``or, if financed with assistance furnished under 
        the Peace, Prosperity, and Democracy Act of 1994, for such 
        other purposes as are provided for under that Act''.
            (5) Section 5(a) is amended by striking out ``, and no 
        credits (including participations in credits) or guaranties 
        extended to or for'' and inserting in lieu thereof ``to''.
            (6) Section 6 is amended--
                    (A) by striking out ``, no credits or guarantees 
                may be extended,''; and
                    (B) by inserting ``and no assistance administered 
                through the Department of Defense may be furnished 
                under the Peace, Prosperity, and Democracy Act of 
                1994'' after ``this Act''.
            (7) Section 21 is amended--
                    (A) by amending (a)(1)(c) to read as follows, ``in 
                the case of the sale of a defense service, the full 
                cost to the United States Government of furnishing such 
                service, except that in the case of training sold to a 
                purchaser that is concurrently receiving assistance 
                under the Peace, Prosperity, and Democracy Act of 1994 
                or is separately justified for the fiscal year in which 
                the associated letter of offer is issued, only those 
                additional costs that are incurred by the United States 
                in furnishing such training'';
                    (B) by amending subsection (c)(1) to read as 
                follows:
                    ``(A) Members of the Armed Forces assigned or 
                detailed to provide defense services under this Act may 
                not perform duties of a combatant nature, including any 
                duty related to training and advising that may engage 
                United States Armed Forces personnel in combat 
                activities, outside the United States in connection 
                with the performance of those defense services.
                    ``(B) Subparagraph (A) shall not apply if the 
                President determines, and reports to the Congress, that 
                its application would not be in the national interest 
                of the United States.''; and
                    (C) in subsection (e)--
                            (i) by deleting subparagraph (1)(B);
                            (ii) by deleting ``(C)'' in subparagraph 
                        (1)(c) and inserting in lieu thereof ``(D)'';
                            (iii) by deleting paragraph (2); and
                            (iv) by deleting ``(3'' and inserting in 
                        lieu thereof ``(2)''.
            (8) Section 23 is repealed.
            (9) Section 24 is amended--
                    (A) by amending the section caption to read 
                ``Provisions Relating to Former Credit and Guaranty 
                Authorities'';
                    (B) in subsection (a), by striking out ``The'' in 
                the first sentence and inserting in lieu thereof ``To 
                the extent necessary to carry out the provisions under 
                the heading ``Foreign Military Sales Debt Reform'' in 
                title III of the Foreign Operations, Export Financing, 
                and Related Programs Appropriations Act, 1988 (as 
                contained in section 101(e) of Public Law 100-202), 
                the'';
                            (C) in subsection (b) by inserting ``before 
                        the effective date of the Peace, Prosperity, 
                        and Democracy Act of 1994'' after ``section 
                        23''; and
                            (D) by striking out subsection (c) and 
                        inserting in lieu thereof the following:
    ``(c) The single reserve established under this section for the 
payment of claims under guarantees issued under the authority of this 
section may be referred to as the `Foreign Military Loan Liquidating 
Account'.
    ``(d) Any guarantees issued under the authority of this section are 
backed by the full faith and credit of the United States.''.
            (10) Section 25(a) is amended--
                    (A) in paragraph (5)(A) by striking out ``military 
                education'' and all that follows through 
                ``guarantees,'' and inserting in lieu thereof ``and 
                assistance administered through the Department of 
                Defense under the Peace, Prosperity, and Democracy Act 
                of 1994,'';
                    (B) in paragraph (5)(B) by striking out ``credits 
                or guaranties under this Act'' and inserting in lieu 
                thereof ``assistance administered through the 
                Department of Defense under the Peace, Prosperity, and 
                Democracy Act of 1994''; and
                    (C) in paragraph (11) by inserting before the 
                semicolon at the end of the paragraph the following: 
                ``, and the status of each provision of assistance 
                administered through the Department of Defense for the 
                procurement of defense articles or defense services 
                under the Peace, Prosperity, and Democracy Act of 1994 
                with respect to which there remains outstanding any 
                unpaid obligation or potential liability''.
            (11) Section 25(d), as added by 112(b) of the International 
        Security and Development Cooperation Act of 1985, is amended by 
        striking out ``under this Act or under section 503(a)(3) of the 
        Foreign Assistance Act of 1961'' and inserting in lieu thereof 
        ``with assistance administered through the Department of 
        Defense under the Peace, Prosperity, and Democracy Act of 
        1994''.
            (12) Section 31 is amended--
                    (A) by striking out ``Authorization and Aggregate 
                Ceiling on Foreign Military Sales Credits.'' and all 
                that follows through ``(d)'' and inserting in lieu 
                thereof ``Aggregate Costs''; and
                    (B) by striking out ``of chapter 2 of part II of 
                the Foreign Assistance Act of 1961'' and inserting in 
                lieu thereof ``the Peace, Prosperity, and Democracy Act 
                of 1994''.
            (13) Section 36(a) is amended--
                    (A) in paragraph (7), by striking out ``under 
                chapters 2, 5, 6 or 8 of part II of the Foreign 
                Assistance Act of 1961'' and inserting in lieu thereof 
                ``assistance administered through the Department of 
                Defense under the Peace, Prosperity, and Democracy Act 
                of 1994''; and
                    (B) in paragraph (10), by striking out ``section 
                505(a)(1)(B) of the Foreign Assistance Act of 1961'' 
                and inserting in lieu thereof ``sections 8212 and 8213 
                of the Peace, Prosperity, and Democracy Act of 1994''.
            (14) Section 37 is amended--
                    (A) in the section caption by striking out 
                ``Relating to Foreign Military Sales Credits'';
                    (B) in subsection (a), by striking out ``section 
                23'' and inserting in lieu thereof ``the former 
                authority of section 23 or under the authority of the 
                Peace, Prosperity, and Democracy Act of 1994''; and
                    (C) in subsection (b), by inserting ``the former 
                authority of'' after ``extended pursuant to''.
            (15) Section 42 is amended--
                    (A) in subsection (a) by striking out ``, but 
                subject to subsection (b) of this section,'' in the 
                first sentence and inserting in lieu thereof ``;'';
                    (B) in subsection (b), by striking out ``No credit 
                sale shall be extended under section 23, and no 
                guarantee shall be issued under section 24'' and 
                inserting in lieu thereof ``No assistance shall be 
                furnished under the Peace, Prosperity, and Democracy 
                Act of 1994 to be administered through the Department 
                of Defense for the financing of sales of defense 
                articles or services''; and
                    (C) in subsection (d)(1), by striking out ``and 
                guaranties under sections 21, 22, 23, 24,'' and 
                inserting in lieu thereof ``under sections 21, 22,''.
            (16) Section 47(1) is amended by deleting ``section 644(g) 
        of the Foreign Assistance Act of 1991'' and inserting in lieu 
        thereof, ``section 8551(19) of the Peace, Prosperity, and 
        Democracy Act of 1994''.
    (d) United States Agency for International Development.--References 
in any Act to the ``Agency for International Development'' shall be 
deemed to be a reference to the United States Agency for International 
Development.

SEC. 9105. TRANSITION RULES FOR MILITARY ASSISTANCE.

    (a) Disposition of Certain Previously Provided Military 
Equipment.--The President may waive requirements imposed pursuant to 
sections 505(a)(4) and (f) of the Foreign Assistance Act of 1961, as in 
effect before the effective date of this title, with respect to defense 
articles or related training or other defense services furnished before 
that date.
    (b) Commitment of Prior Year Military Assistance.--If the President 
at any time notifies Congress that no further sales will be made 
pursuant to the Arms Export Control Act after the date of such 
notification to a specified country under circumstances then 
prevailing, any uncommitted funds allocated for such country that were 
transferred under the authority of section 8202(g)(6) of this Act, the 
former authority of section 23 of the Arms Export Control Act, and the 
former authority of section 503(a)(3) of the Foreign Assistance Act of 
1961 for the purpose of financing such sales may be committed to 
finance such sales to other eligible countries subject to advance 
notification to the Committees on Appropriations and Foreign Relations 
of the Senate and the Committees on Appropriations and Foreign Affairs 
of the House of Representatives.
    (c) Sales.--Sales under the Arms Export Control Act which are 
wholly paid from funds that, prior to the effective date of this Act, 
were transferred under the former authority of section 503(a)(3) of the 
Foreign Assistance Act of 1961 or were made available on a nonrepayable 
or grant basis under section 23 of the Arms Export Control Act, shall 
be priced on the same basis as described in section 8201(d).

SEC. 9106. REPEAL OF OBSOLETE PROVISIONS.

    (a) 1992 Jobs Through Exports Act.--Title III of the Jobs Through 
Exports Act of 1992 is repealed.
    (b) 1988 OPIC Act.--The Overseas Private Investment Corporation 
Amendments Act of 1988 (as enacted by reference by section 555 of the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1989) is repealed.
    (c) 1988 International Narcotics Control Act.--The International 
Narcotics Control Act of 1988 is repealed.
    (d) 1988 Foreign Operations Appropriations Act.--Section 537(h)(2) 
of the Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1988, as included in Public Law 100-202, is 
repealed.
    (e) Narcotics Control Trade Act.--Sections 802(e) and 804 of the 
Narcotics Control Trade Act (which is title VIII of the Trade Act of 
1974) are repealed.
    (f) 1987 Foreign Assistance Appropriations Act.--Section 539(g)(2) 
of the Foreign Assistance and Related Programs Appropriations Act, 
1987, as included in Public Law 99-591, is repealed.
    (g) 1986 Drug Act.--The International Narcotics Control Act of 1986 
(which is title II of the Anti-Drug Abuse Act of 1986) is repealed.
    (h) 1986 Assistance Act.--The Special Foreign Assistance Act of 
1986 is repealed except for section 1 and section 204.
    (i) 1986 Anglo-Irish Agreement Support Act.--Section 6 of the 
Anglo-Irish Agreement Support Act of 1986 is repealed.
    (j) 1985 Assistance Act.--The International Security and 
Development Cooperation Act of 1985 is repealed except for section 1, 
section 131, section 132, section 504, section 505, part B of title V 
(other than section 558 and section 559), section 1302, section 1303, 
and section 1304.
    (k) 1985 Jordan Supplemental Act.--The Jordan Supplemental Economic 
Assistance Authorization Act of 1985 is repealed.
    (l) 1985 African Famine Act.--The African Famine Relief and 
Recovery Act of 1985 is repealed.
    (m) 1983 Assistance Act.--The International Security and 
Development Assistance Authorization Act of 1983 is repealed.
    (n) 1983 Lebanon Assistance Act.--The Lebanon Emergency Assistance 
Act of 1983 is repealed.
    (o) 1981 Assistance Act.--The International Security and 
Development Cooperation Act of 1981 is repealed except for section 1, 
section 709, section 714.
    (p) 1981 OPIC Amendments Act.--The OPIC Amendments Act of 1981 is 
repealed.
    (q) 1980 Assistance Act.--The International Security and 
Development Cooperation Act of 1980 is repealed except for section 1, 
section 110, section 315, and title V.
    (r) 1979 Development Assistance Act.--The International Development 
Cooperation Act of 1979 is repealed.
    (s) 1979 Security Assistance Act.--The International Security 
Assistance Act of 1979 is repealed.
    (t) 1979 Special Security Assistance Act.--The Special 
International Security Assistance Act of 1979 is repealed.
    (u) 1978 Development Assistance Act.--The International Development 
and Food Assistance Act of 1978 is repealed, except for section 1, 
title IV, and section 603(a)(2).
    (v) 1978 Security Assistance Act.--The International Security 
Assistance Act of 1978 is repealed.
    (w) 1977 Development Assistance Act.--The International Development 
and Food Assistance Act of 1977 is repealed except for section 1, 
section 132(b), and section 133.
    (x) 1977 Security Assistance Act.--The International Security 
Assistance Act of 1977 is repealed.
    (y) 1976 Security Assistance Act.--The International Security 
Assistance and Arms Export Control Act is repealed except for section 
1, section 201(b), section 212(b), section 601, and section 608.
    (z) 1975 Development Assistance Act.--The International Development 
and Food Assistance Act of 1975 is repealed.
    (aa) 1975 BIB Act.--Public Law 94-104 is repealed.
    (bb) 1974 Assistance Act.--The Foreign Assistance Act of 1974 is 
repealed.
    (cc) 1973 Emergency Assistance Act.--The Emergency Security 
Assistance Act of 1973 is repealed.
    (dd) 1973 Assistance Act.--The Foreign Assistance Act of 1973 is 
repealed.
    (ee) 1973 Department of State Appropriations AuthorizationAct.--
Section 13 of the Department of State Appropriations Authorization Act 
of 1973 is repealed.
    (ff) 1971 Assistance Act.--The Foreign Assistance Act of 1971 is 
repealed.
    (gg) 1971 Special Assistance Act.--The Special Foreign Assistance 
Act of 1971 is repealed.
    (hh) 1971 FMS Act.--The Act entitled ``An Act to amend the Foreign 
Military Sales Act, and for other purposes'', approved January 12, 1971 
(Public Law 91-672), is repealed.
    (ii) 1969 Assistance Act.--The Foreign Assistance Act of 1969 is 
repealed except for the first section and part IV.
    (jj) 1968 Assistance Act.--The Foreign Assistance Act of 1968 is 
repealed.
    (kk) 1964 Assistance Act.--The Foreign Assistance Act of 1964 is 
repealed.
    (ll) Foreign Assistance Act of 1961.--The Foreign Assistance Act of 
1961, as amended, is repealed except for the first section, section 
226, chapter 11 of part I, and part IV.
    (mm) Latin American Development Act.--The Latin American 
Development Act is repealed.
    (nn) 1959 Mutual Security Act.--The Mutual Security Act of 1959 is 
repealed.
    (oo) 1954 Mutual Security Act.--Section 402 and section 417 of the 
Mutual Security Act of 1954 are repealed.
    (pp) 1979 Reorganization Plan.--Reorganization Plan No. 2 of 1979 
is repealed.
    (qq) FREEDOM Support Act.--Section 907 of the FREEDOM Support Act 
is repealed.
    (rr) Migration and Refugee Assistance Act.--The Migration and 
Refugee Assistance Act of 1962 is repealed.
    (ss) 1982-3 State Authorization Act.--Section 109 of the Department 
of State Authorization Act, Fiscal Years 1982 and 1983, is repealed.
    (tt) 1984-5 Department of State Authorization Act.--Sections 1004 
and 1005(a) of the Department of State Authorization Act, Fiscal Years 
1984 and 1985, are repealed.
    (uu) Savings Provision.--Except as otherwise provided in this Act, 
the repeal by this Act of any provision of law that amended or repealed 
another provision of law does not affect in any way that amendment or 
repeal.

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