[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1563 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1563

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 3, 1995

  Mr. Gilman introduced the following bill; which was referred to the 
Committee on International Relations, and in addition to the Committee 
on Rules, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


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

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

             DIVISION C--FOREIGN ASSISTANCE AUTHORIZATIONS

SECTION 3001. SHORT TITLE.

    This Act may be cited as the ``Foreign Aid Reduction Act of 1995''.

SEC. 3002. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

             DIVISION C--FOREIGN ASSISTANCE AUTHORIZATIONS

Sec. 3001. Short title.
Sec. 3002. Table of contents.
Sec. 3003. Declaration of policy.
              TITLE XXXI--DEFENSE AND SECURITY ASSISTANCE

            subchapter a--foreign military financing program
Sec. 3101. Authorization of appropriations.
Sec. 3102. Assistance for Israel.
Sec. 3103. Assistance for Egypt.
Sec. 3104. Loans for Greece and Turkey.
Sec. 3105. Loans for the Czech Republic, Hungary, and Poland.
Sec. 3106. Terms of lsubchapter b--other assistance
Sec. 3121. Defense drawdown special authorities.
Sec. 3122. Stockpiles of defense articles.
Sec. 3123. Transfer of excess defense articles.
        Chapter 2--International Military Education and Training

Sec. 3141. Authorization of appropriations.
Sec. 3142. Assistance for Indonesia.
Sec. 3143. Test pilot exchange training.
                  Chapter 3--Antiterrorism Assistance

Sec. 3151. Authorization of appropriations.
Sec. 3152. Antiterrorism training assistance.
                Chapter 4--Narcotics Control Assistance

Sec. 3161. Authorization of appropriations.
Sec. 3162. Additional requirements relating to narcotics control 
                            assistance.
Sec. 3163. Notification requirement.
Sec. 3164. Waiver of restrictions for narcotics-related economic 
                            assistance.
            Chapter 5--Nonproliferation And Disarmament Fund

Sec. 3171. Nonproliferation and Disarmament Fund.
                      Chapter 6--Other Provisions

Sec. 3181. Standardization of congressional review procedures for arms 
                            transfers.
Sec. 3182. Standardization of third country transfers of defense 
                            articles.
Sec. 3183. Increased standardization, rationalization, and 
                            interoperability of assistance and sales 
                            programs.
Sec. 3184. Repeal of price and availability reporting requirement 
                            relating to proposed sale of defense 
                            articles and services.
Sec. 3185. Definition of significant military equipment.
Sec. 3186. Elimination of Special Defense Acquisition Fund annual 
                            report.
Sec. 3187. Cost of leased defense articles that have been lost or 
                            destroyed.
Sec. 3188. Designation of major non-NATO allies.
Sec. 3189. Certification thresholds.
Sec. 3190. Competitive pricing for sales of defense articles and 
                            services.
Sec. 3191. Depleted uranium ammunition.
                    TITLE XXXII--ECONOMIC ASSISTANCE

                 Chapter 1--Economic Support Assistance

Sec. 3201. Economic support fund.
Sec. 3202. Assistance for Israel.
Sec. 3203. Assistance for Egypt.
Sec. 3204. International Fund for Ireland.
Sec. 3205. Law enforcement assistance.
    Chapter 2--Assistance For Private Sector Programs and Activities

Sec. 3211. Private sector enterprise funds.
Sec. 3212. Trans-Caucasus enterprise funds.
Sec. 3213. Micro- and small enterprise development credits.
Sec. 3214. Microenterprise development grants.
            subchapter a--development assistance authorities
Sec. 3221. Authorizations of appropriations.
Sec. 3222. Assistance for family planning.
Sec. 3223. Assistance for the independent states of the former Soviet 
                            Union.
Sec. 3224. Effectivesubchapter b--operating expensest assistance.
Sec. 3231. Operating expenses generally.
Sec. 3232. Operating expenses of the office of the Inspector General.
                       Chapter 4--Public Law 480

Sec. 3241. Authorization of appropriations.
                  Chapter 5--Housing Guarantee Program

Sec. 3251. Authorization of appropriations for administrative expenses.
                         Chapter 6--Peace Corps

Sec. 3261. Peace Corps.
Sec. 3262. Activities of the Peace Corps in the former Soviet Union.
Sec. 3263. Prohibition on use of funds for abortions.
              Chapter 7--International Disaster Assistance

Sec. 3271. Authority to provide reconstruction assistance.
Sec. 3272. Authorizations of appropriations.
                      Chapter 8--Other Provisions

Sec. 3281. Exemption from restrictions on assistance through 
                            nongovernmental organizations.
Sec. 3282. Funding requirements relating to United States private and 
                            voluntary organizations.
Sec. 3283. Documentation requested of private and voluntary 
                            organizations.
Sec. 3284. Foreign government parking fines.
                   TITLE XXXIII--REGIONAL PROVISIONS

Sec. 3301. Prohibition on assistance to foreign governments providing 
                            assistance to Cuba.
Sec. 3302. Assistance for Nicaragua.
Sec. 3303. Eligibility of Panama under Arms Export Control Act.
Sec. 3304. Future of the United States military presence in Panama.
Sec. 3305. Peace and stability in the South China Sea.
Sec. 3306. Assistance for Zaire.
         TITLE XXXIV--SPECIAL AUTHORITIES AND OTHER PROVISIONS

                     Chapter 1--Special Authorities

Sec. 3401. Enhanced transfer authority.
Sec. 3402. Authority to meet unanticipated contingencies.
Sec. 3403. Special waiver authority.
Sec. 3404. Termination of assistance.
                      Chapter 2--Other Provisions

Sec. 3411. Congressional presentation documents.
Sec. 3412. Prohibition on assistance to foreign governments engaged in 
                            espionage against the United States.
Sec. 3413. Debt restructuring for foreign assistance.
Sec. 3414. Debt buybacks or sales for debt swaps.
Sec. 3415. Impact on jobs in the United States.
Sec. 3416. Prohibition on assistance to foreign governments that export 
                            lethal military equipment to countries 
                            supporting international terrorism.
                           Chapter 3--Repeals

Sec. 3421. Repeal of obsolete provisions.
                       TITLE XXXV--EFFECTIVE DATE

Sec. 3501. Effective date.

SEC. 3003. DECLARATION OF POLICY.

    The Congress declares the following:
            (1) United States leadership overseas must be maintained to 
        support our vital national security, economic, and humanitarian 
        interests.
            (2) As part of this leadership, United States foreign 
        assistance programs are essential to support these national 
        interests.
            (3) However, United States foreign assistance programs can 
        be responsibly reduced while maintaining United States 
        leadership overseas.

              TITLE XXXI--DEFENSE AND SECURITY ASSISTANCE

               CHAPTER 1--MILITARY AND RELATED ASSISTANCE

            Subchapter A--Foreign Military Financing Program

SEC. 3101. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for grant assistance under 
section 23 of the Arms Export Control Act (22 U.S.C. 2763) and for the 
subsidy cost, as defined in section 502(5) of the Federal Credit Reform 
Act of 1990, of direct loans under such section--
            (1) $3,341,440,000 for fiscal year 1996; and
            (2) $3,270,020,000 for fiscal year 1997.

SEC. 3102. ASSISTANCE FOR ISRAEL.

    (a) Minimum Allocation.--Of the amounts made available for fiscal 
years 1996 and 1997 for assistance under the ``Foreign Military 
Financing Program'' account under section 23 of the Arms Export Control 
Act (22 U.S.C. 2763), not less than $1,800,000,000 for each such fiscal 
year shall be available only for Israel.
    (b) Terms of Assistance.--
            (1) Grant basis.--The assistance provided for Israel for 
        each fiscal year under subsection (a) shall be provided on a 
        grant basis.
            (2) Expedited disbursement.--Such assistance shall be 
        disbursed--
                    (A) with respect to fiscal year 1996, not later 
                than 30 days after the date of the enactment of the 
                Foreign Operations, Export Financing, and Related 
                Programs Appropriations Act, 1996, or by October 31, 
                1995, whichever is later; and
                    (B) with respect to fiscal year 1997, not later 
                than 30 days after the date of the enactment of the 
                Foreign Operations, Export Financing, and Related 
                Programs Appropriations Act, 1997, or by October 31, 
                1996, whichever is later.
            (3) Advanced weapons systems.--To the extent that the 
        Government of Israel requests that funds be used for such 
        purposes, funds described in subsection (a) shall, as agreed by 
        the Government of Israel and the Government of the United 
        States, be available for advanced weapons systems, of which not 
        less than $475,000,000 for each fiscal year shall be available 
        only for procurement in Israel of defense articles and defense 
        services, including research and development.
    (c) Foreign Military Sales.--Section 21(h) of the Arms Export 
Control Act (22 U.S.C. 2761(h)) is amended--
            (1) in paragraph (1)(A), by inserting ``or ``the Government 
        of Israel after ``North Atlantic Treaty Organization''; and
            (2) in paragraph (2), by striking ``or to any member 
        government of that Organization if that Organization or member 
        government'' and inserting ``, any member government of that 
        Organization, or the Government of Israel, if the Organization, 
        member government, or Government of Israel, as the case may 
        be,''.

SEC. 3103. ASSISTANCE FOR EGYPT.

    (a) Minimum Allocation.--Of the amounts made available for fiscal 
years 1996 and 1997 for assistance under the ``Foreign Military 
Financing Program'' account under section 23 of the Arms Export Control 
Act (22 U.S.C. 2763), not less than $1,300,000,000 for each such fiscal 
year shall be available only for Egypt.
    (b) Terms of Assistance.--The assistance provided for Egypt for 
each fiscal year under subsection (a) shall be provided on a grant 
basis.

SEC. 3104. LOANS FOR GREECE AND TURKEY.

    Of the amounts made available for fiscal year 1996 under the 
``Foreign Military Financing Program'' account under section 23 of the 
Arms Export Control Act (22 U.S.C. 2763)--
            (1) not more than $26,620,000 shall be made available for 
        the subsidy cost, as defined in section 502(5) of the Federal 
        Credit Reform Act of 1990, of direct loans for Greece; and
            (2) not more than $37,800,000 shall be made available for 
        such subsidy cost of direct loans for Turkey.

SEC. 3105. LOANS FOR THE CZECH REPUBLIC, HUNGARY, AND POLAND.

    Of the amounts made available for fiscal years 1996 and 1997 under 
the ``Foreign Military Financing Program'' account under section 23 of 
the Arms Export Control Act (22 U.S.C. 2763), not more than $25,000,000 
for each such fiscal year shall be made available for the subsidy cost, 
as defined in section 502(5) of the Federal Credit Reform Act of 1990, 
of direct loans for the Czech Republic, Hungary, and Poland.

SEC. 3106. TERMS OF LOANS.

    Section 31(c) of the Arms Export Control Act (22 U.S.C. 2771(c)) is 
amended to read as follows:
    ``(c) Loans available under section 23 shall be provided at rates 
of interest that are not less than the current average market yield on 
outstanding marketable obligations of the United States of comparable 
maturities.''.

                     Subchapter B--Other Assistance

SEC. 3121. DEFENSE DRAWDOWN SPECIAL AUTHORITIES.

    (a) Military Assistance Drawdown.--Section 506(a)(1) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2318(a)(1)) is amended by striking 
``$75,000,000'' and inserting ``$100,000,000''.
    (b) Nonmilitary Assistance Drawdown.--Section 506 of such Act (22 
U.S.C. 2318) is amended--
            (1) in subsection (a)(2)(A), by striking ``direct--'' and 
        all that follows through the period and inserting the 
        following: ``direct the drawdown of such articles, services, 
        and education and training for the purposes and under the 
        authorities of--
            ``(i) chapter 8 of part I (relating to international 
        narcotics control assistance),
            ``(ii) chapter 9 of part I (relating to international 
        disaster assistance), or
            ``(iii) the Migration and Refugee Assistance Act of 
        1962.'';
            (2) in subsection (a)(2)(B)--
                    (A) by striking ``$75,000,000'' and inserting 
                ``$150,000,000''; and
                    (B) by striking ``of this paragraph'' and inserting 
                the following: ``of this paragraph--
                    ``(i) not more than $75,000,000 of which may be 
                provided from the drawdown from the inventory and 
                resources of the Department of Defense; and
                    ``(ii) not more than $75,000,000 of which may be 
                provided pursuant to clause (i) of such subparagraph''; 
                and
            (3) in subsection (b)(1), by adding at the end the 
        following: ``In the case of drawdowns authorized by clauses (i) 
        and (iii) of subsection (a)(2)(A), notifications shall be 
        provided to those committees at least 15 days in advance in 
        accordance with the procedures applicable to reprogramming 
        notifications under section 634A.''.
    (c) Notice to Congress of Exercise of Special Authorities.--Section 
652 of such Act (22 U.S.C. 2411) is amended by striking ``prior to the 
date'' and inserting ``before''.

SEC. 3122. STOCKPILES OF DEFENSE ARTICLES.

    (a) Limitation on Value of Additions.--Section 514(b)(1) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321h(b)(1)) is amended by 
inserting ``or in the implementation of agreements with Israel'' after 
``North Atlantic Treaty Organization''.
    (b) Additions in Fiscal Years 1996 and 1997.--Section 514(b)(2) of 
such Act (22 U.S.C. 2321h(b)(2)) is amended to read as follows:
    ``(2)(A) The value of such additions to stockpiles of defense 
articles in foreign countries shall not exceed $50,000,000 for each of 
the fiscal years 1996 and 1997.
    ``(B) Of the amount specified in subparagraph (A) for each of the 
fiscal years 1996 and 1997, not more than $40,000,000 may be made 
available for stockpiles in the Republic of Korea and not more than 
$10,000,000 may be made available for stockpiles in Thailand.''.
    (c) Location of Stockpiles of Defense Articles.--Section 514(c) of 
such Act (22 U.S.C. 2321h(c)) is amended to read as follows:
    ``(c) Location of Stockpiles of Defense Articles.--
            ``(1) Limitation.--Except as provided in paragraph (2), no 
        stockpile of defense articles may be located outside the 
        boundaries of a United States military base or a military base 
        used primarily by the United States.
            ``(2) Exceptions.--Paragraph (1) shall not apply with 
        respect to stockpiles of defense articles located in the 
        Republic of Korea, Thailand, any country that is a member of 
        the North Atlantic Treaty Organization, any country that is a 
        major non-NATO ally, or any other country the President may 
        designate. At least 15 days before designating a country 
        pursuant to the last clause of the preceding sentence, the 
        President shall notify the congressional committees specified 
        in section 634A(a) in accordance with the procedures applicable 
        to reprogramming notifications under that section.''.

SEC. 3123. TRANSFER OF EXCESS DEFENSE ARTICLES.

    (a) In General.--Section 516 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2321j) is amended to read as follows:

``SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES.

    ``(a) Authorization.--The President is authorized to transfer 
excess defense articles under this section to countries for which 
receipt of such articles was justified pursuant to the annual 
congressional presentation documents for military assistance programs 
submitted under section 634 of this Act, or for which receipt of such 
articles was separately justified, for the fiscal year in which the 
transfer is authorized.
    ``(b) Limitations on Transfers.--The President may transfer excess 
defense articles under this section only if--
            ``(1) such articles are drawn from existing stocks of the 
        Department of Defense;
            ``(2) funds available to the Department of Defense for the 
        procurement of defense equipment are not expended in connection 
        with the transfer;
            ``(3) the transfer of such articles will not have an 
        adverse impact on the military readiness of the United States;
            ``(4) with respect to a proposed transfer of such articles 
        on a grant basis, such a transfer is preferable to a transfer 
        on a sales basis, 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 a transfer on either a grant or 
        sales basis;
            ``(5) the President first considers the effects of the 
        transfer of such articles on the national technology and 
        industrial base, particularly the extent, if any, to which the 
        transfer reduces the opportunities of entities in the national 
        technology and industrial base to sell new equipment to the 
        countries to which such articles are transferred; and
            ``(6) the transfer of such articles is consistent with the 
        policy framework for the Eastern Mediterranean established 
        under section 620C of this Act.
    ``(c) Terms of Transfers.--Excess defense articles may be 
transferred under this section without cost to the recipient country.
    ``(d) Waiver of Requirement for Reimbursement of Department of 
Defense Expenses.--Section 632(d) shall not apply with respect to 
transfers of excess defense articles under this section.
    ``(e) Transportation and Related Costs.--
            ``(1) In general.--Except as provided in paragraph (2), 
        funds available to the Department of Defense may not be 
        expended for crating, packing, handling, and transportation of 
        excess defense articles transferred under the authority of this 
        section.
            ``(2) Exception.--The President may provide for the 
        transportation of excess defense articles without charge to a 
        country for the costs of such transportation if--
                    ``(A) it is determined that it is in the national 
                interest of the United States to do so;
                    ``(B) the recipient is a developing country 
                receiving less than $10,000,000 of assistance under 
                chapter 5 of part II of this Act (relating to 
                international military education and training) or 
                section 23 of the Arms Export Control Act (22 U.S.C. 
                2763; relating to the Foreign Military Financing 
                program) in the fiscal year in which the transportation 
                is provided;
                    ``(C) the total weight of the transfer does not 
                exceed 25,000 pounds; and
                    ``(D) such transportation is accomplished on a 
                space available basis.
    ``(f) Advance Notification to Congress for Transfer of Certain 
Excess Defense Articles.--
            ``(1) In general.--The President may not transfer excess 
        defense articles that are significant military equipment (as 
        defined in section 47(9) of the Arms Export Control Act) or 
        excess defense articles valued (in terms of original 
        acquisition cost) at $7,000,000 or more, under this section or 
        under the Arms Export Control Act (22 U.S.C. 2751 et seq.) 
        until 15 days after the date on which the President has 
        provided notice of the proposed transfer to the congressional 
        committees specified in section 634A(a) in accordance with 
        procedures applicable to reprogramming notifications under that 
        section.
            ``(2) Contents.--Such notification shall include--
                    ``(A) a statement outlining the purposes for which 
                the article is being provided to the country, including 
                whether such article has been previously provided to 
                such country;
                    ``(B) an assessment of the impact of the transfer 
                on the military readiness of the United States; and
                    ``(C) a statement describing the current value of 
                such article and the value of such article at 
                acquisition.
    ``(g) Aggregate Annual Limitation.--The aggregate value of excess 
defense articles transferred to countries under this section in any 
fiscal year may not exceed $350,000,000.
    ``(h) Congressional Presentation Documents.--Documents described in 
subsection (a) justifying the transfer of excess defense articles shall 
include an explanation of the general purposes of providing excess 
defense articles as well as a table which provides an aggregate annual 
total of transfers of excess defense articles in the preceding year by 
country in terms of offers and actual deliveries and in terms of 
acquisition cost and current value. Such table shall indicate whether 
such excess defense articles were provided on a grant or sale basis.
    ``(i) Excess Coast Guard Property.--For purposes of this section, 
the term `excess defense articles' shall be deemed to include excess 
property of the Coast Guard, and the term `Department of Defense' shall 
be deemed, with respect to such excess property, to include the Coast 
Guard.''.
    (b) Repeals.--The following provisions of law are hereby repealed:
            (1) Section 502A of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2303).
            (2) Sections 517 through 520 of the Foreign Assistance Act 
        of 1961 (22 U.S.C. 2321k through 2321n).
            (3) Section 31(d) of the Arms Export Control Act (22 U.S.C. 
        2771(d)).

        CHAPTER 2--INTERNATIONAL MILITARY EDUCATION AND TRAINING

SEC. 3141. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated $28,500,000 for each of the 
fiscal years 1996 and 1997 to carry out chapter 5 of part II of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.).

SEC. 3142. ASSISTANCE FOR INDONESIA.

    Funds made available for fiscal years 1996 and 1997 to carry out 
chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 
2347 et seq.; relating to the international military education and 
training program) may be obligated for Indonesia only for expanded 
military and education training that meets the requirements of clauses 
(i) through (iv) of the second sentence of section 541 of such Act (22 
U.S.C. 2347).

SEC. 3143. TEST PILOT EXCHANGE TRAINING.

    Section 544 of the Foreign Assistance Act of 1961 (22 U.S.C. 2347c) 
is amended--
            (1) by striking ``In carrying out this chapter'' and 
        inserting ``(a) In carrying out this chapter''; and
            (2) by adding at the end the following new subsection:
    ``(b) The President may provide for the attendance of foreign 
military and civilian defense personnel at test pilot flight schools in 
the United States without charge if such attendance is pursuant to an 
agreement providing for the exchange of students on a one-for-one basis 
each fiscal year between those United States test pilot flight schools 
and comparable flight test pilot schools of foreign countries.''.

                  CHAPTER 3--ANTITERRORISM ASSISTANCE

SEC. 3151. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated 
$25,000,000 for fiscal year 1996 and $30,000,000 for fiscal year 1997 
to carry out chapter 8 of part II of the Foreign Assistance Act of 1961 
(22 U.S.C. 2349aa et seq.).
    (b) Availability of Amounts.--Amounts authorized to be appropriated 
under subsection (a) are authorized to remain available until expended.

SEC. 3152. ANTITERRORISM TRAINING ASSISTANCE.

    (a) In General.--Section 571 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2349aa) is amended by striking ``Subject to the provisions 
of this chapter'' and inserting ``Notwithstanding any other provision 
of law that restricts assistance to foreign countries (other than 
sections 502B and 620A of this Act)''.
    (b) Limitations.--Section 573 of such Act (22 U.S.C. 2349aa-2) is 
amended--
            (1) in the heading, by striking ``specific authorities 
        and'';
            (2) by striking subsection (a);
            (3) by redesignating subsections (b) through (f) as 
        subsections (a) through (e), respectively; and
            (4) in subsection (c) (as redesignated)--
                    (A) by striking paragraphs (1) and (2);
                    (B) by redesignating paragraphs (3) through (5) as 
                paragraphs (1) through (3), respectively; and
                    (C) by amending paragraph (2) (as redesignated) to 
                read as follows:
            ``(2)(A) Except as provided in subparagraph (B), funds made 
        available to carry out this chapter shall not be made available 
        for the procurement of weapons and ammunition.
            ``(B) Subparagraph (A) shall not apply to small arms and 
        ammunition in categories I and III of the United States 
        Munitions List that are integrally and directly related to 
        antiterrorism training provided under this chapter if, at least 
        15 days before obligating those funds, the President notifies 
        the appropriate congressional committees in accordance with the 
        procedures applicable to reprogramming notifications under 
        section 634A.
            ``(C) The value (in terms of original acquisition cost) of 
        all equipment and commodities provided under this chapter in 
        any fiscal year may not exceed 25 percent of the funds made 
        available to carry out this chapter for that fiscal year.''.
    (c) Annual Report.--Section 574 of such Act (22 U.S.C. 2349aa-3) is 
hereby repealed.
    (d) Technical Corrections.--Section 575 (22 U.S.C. 2349aa-4) and 
section 576 (22 U.S.C. 2349aa-5) of such Act are redesignated as 
sections 574 and 575, respectively.

                CHAPTER 4--NARCOTICS CONTROL ASSISTANCE

SEC. 3161. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated 
$213,000,000 for each of the fiscal years 1996 and 1997 to carry out 
chapter 8 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 
2349aa et seq.).
    (b) Availability of Amounts.--Amounts authorized to be appropriated 
under subsection (a) are authorized to remain available until expended.

SEC. 3162. ADDITIONAL REQUIREMENTS RELATING TO NARCOTICS CONTROL 
              ASSISTANCE.

    (a) Policy and General Authorities.--Section 481(a) of the Foreign 
Assistance Act (22 U.S.C. 2291(a)) is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (D) through (F) 
                as subparagraphs (E) through (G), respectively; and
                    (B) by inserting after subparagraph (C) the 
                following new subparagraph:
            ``(D) International criminal activities, particularly 
        international narcotics trafficking, money laundering, and 
        corruption, endanger political and economic stability and 
        democratic development, and assistance for the prevention and 
        suppression of international criminal activities should be a 
        priority for the United States.''; and
            (2) in paragraph (4), by adding before the period at the 
        end the following: ``, or for other related anticrime 
        purposes''.
    (b) Contributions and Reimbursement.--Section 482(c) of that Act 
(22 U.S.C. 2291a(c)) is amended--
            (1) by striking ``Contribution by Recipient Country.--To'' 
        and inserting ``Contributions and Reimbursement.--(1) To''; and
            (2) by adding at the end the following new paragraphs:
    ``(2)(A) The President is authorized to accept contributions from 
other foreign governments to carry out the purposes of this chapter. 
Such contributions shall be deposited as an offsetting collection to 
the applicable appropriation account and may be used under the same 
terms and conditions as funds appropriated pursuant to this chapter.
    ``(B) At the time of submission of the annual congressional 
presentation documents required by section 634(a), the President shall 
provide a detailed report on any contributions received in the 
preceding fiscal year, the amount of such contributions, and the 
purposes for which such contributions were used.
    ``(3) The President is authorized to provide assistance under this 
chapter on a reimbursable basis. Such reimbursements shall be deposited 
as an offsetting collection to the applicable appropriation and may be 
used under the same terms and conditions as funds appropriated pursuant 
to this chapter.''.
    (c) Implementation of Law Enforcement Assistance.--Section 482 of 
such Act (22 U.S.C. 2291a) is amended by adding at the end the 
following new subsections:
    ``(f) Treatment of Funds.--Funds transferred to and consolidated 
with funds appropriated pursuant to this chapter may be made available 
on such terms and conditions as are applicable to funds appropriated 
pursuant to this chapter. Funds so transferred or consolidated shall be 
apportioned directly to the bureau within the Department of State 
responsible for administering this chapter.
    ``(g) Excess Property.--For purposes of this chapter, the Secretary 
of State may use the authority of section 608, without regard to the 
restrictions of such section, to receive nonlethal excess property from 
any agency of the United States Government for the purpose of providing 
such property to a foreign government under the same terms and 
conditions as funds authorized to be appropriated for the purposes of 
this chapter.''.
    (d) Reporting Requirements.--(1) Section 489 of such Act (22 U.S.C. 
2291h) is amended--
            (A) in the section heading, by striking ``for fiscal year 
        1995''; and
            (B) by striking subsections (b) and (c).
    (2) Section 489A of such Act (22 U.S.C. 2291i) is hereby repealed.
    (e) Certification Requirements.--(1) Section 490 of such Act (22 
U.S.C. 2291j) is amended--
            (A) in the section heading by striking ``for fiscal year 
        1995''; and
            (B) by striking subsection (i).
    (2) Section 490A of such Act (22 U.S.C. 2291k) is hereby repealed.

SEC. 3163. NOTIFICATION REQUIREMENT.

    (a) In General.--The authority of section 1003(d) of the National 
Narcotics Control Leadership Act of 1988 (21 U.S.C. 1502(d)) may be 
exercised with respect to funds authorized to be appropriated pursuant 
to the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) and with 
respect to the personnel of the Department of State only to the extent 
that the appropriate congressional committees have been notified 15 
days in advance in accordance with the reprogramming procedures 
applicable under section 634A of that Act (22 U.S.C. 2394-1).
    (b) Definition.--For purposes of this section, the term 
``appropriate congressional committees'' means the Committee on 
International Relations and the Committee on Appropriations of the 
House of Representatives and the Committee on Foreign Relations and the 
Committee on Appropriations of the Senate.

SEC. 3164. WAIVER OF RESTRICTIONS FOR NARCOTICS-RELATED ECONOMIC 
              ASSISTANCE.

    For each of the fiscal years 1996 and 1997, narcotics-related 
assistance under part I of the Foreign Assistance Act of 1961 (22 
U.S.C. 2151 et seq.) may be provided notwithstanding any other 
provision of law that restricts assistance to foreign countries (other 
than section 490(e) or section 502B of that Act (22 U.S.C. 2291j(e) and 
2304)) if, at least 15 days before obligating funds for such 
assistance, the President notifies the appropriate congressional 
committees (as defined in section 481(e) of that Act (22 U.S.C. 
2291(e))) in accordance with the procedures applicable to reprogramming 
notifications under section 634A of that Act (22 U.S.C. 2394).

            CHAPTER 5--NONPROLIFERATION AND DISARMAMENT FUND

SEC. 3171. NONPROLIFERATION AND DISARMAMENT FUND.

    (a) In General.--There are authorized to be appropriated 
$25,000,000 for each of the fiscal years 1996 and 1997 to carry out 
section 504 of the Freedom for Russia and Emerging Eurasian Democracies 
and Open Markets Support Act of 1992 (22 U.S.C. 5854).
    (b) Availability of Amounts.--Amounts authorized to be appropriated 
under subsection (a) are authorized to remain available until expended.

                      CHAPTER 6--OTHER PROVISIONS

SEC. 3181. STANDARDIZATION OF CONGRESSIONAL REVIEW PROCEDURES FOR ARMS 
              TRANSFERS.

    (a) Third Country Transfers Under FMS Sales.--Section 3(d)(2) of 
the Arms Export Control Act (22 U.S.C. 2753(d)(2)) is amended--
            (1) in subparagraph (A), by striking ``, as provided for in 
        sections 36(b)(2) and 36(b)(3) of this Act'';
            (2) in subparagraph (B), by striking ``law'' and inserting 
        ``joint resolution''; and
            (3) by adding at the end the following:
    ``(C) If the President states in his certification under 
subparagraph (A) or (B) that an emergency exists which requires that 
consent to the proposed transfer become effective immediately in the 
national security interests of the United States, thus waiving the 
requirements of that subparagraph, the President shall set forth in the 
certification a detailed justification for his determination, including 
a description of the emergency circumstances which necessitate 
immediate consent to the transfer and a discussion of the national 
security interests involved.
    ``(D)(i) 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.
    ``(ii) For the purpose of expediting the consideration and 
enactment of joint resolutions under this paragraph, a motion to 
proceed to the consideration of any such joint resolution after it has 
been reported by the appropriate committee shall be treated as highly 
privileged in the House of Representatives.''.
    (b) Third Country Transfers Under Commercial Sales.--Section 
3(d)(3) of such Act (22 U.S.C. 2753(d)(3)) is amended--
            (1) by inserting ``(A)'' after ``(3)'';
            (2) in the first sentence--
                    (A) by striking ``at least 30 calendar days''; and
                    (B) by striking ``report'' and inserting 
                ``certification''; and
            (3) by striking the last sentence and inserting the 
        following: ``Such certification shall be submitted--
            ``(i) at least 15 calendar days before such consent is 
        given in the case of a transfer to a country which is a member 
        of the North Atlantic Treaty Organization or Australia, Japan, 
        or New Zealand; and
            ``(ii) at least 30 calendar days before such consent is 
        given in the case of a transfer to any other country,
unless the President states in his certification that an emergency 
exists which requires that consent to the proposed transfer become 
effective immediately in the national security interests of the United 
States. If the President states in his certification that such an 
emergency exists (thus waiving the requirements of clause (i) or (ii), 
as the case may be, and of subparagraph (B)) the President shall set 
forth in the certification a detailed justification for his 
determination, including a description of the emergency circumstances 
which necessitate that consent to the proposed transfer become 
effective immediately and a discussion of the national security 
interests involved.
    ``(B) Consent to a transfer subject to subparagraph (A) shall 
become effective after the end of the 15-day or 30-day period specified 
in subparagraph (A)(i) or (ii), as the case may be, only if the 
Congress does not enact, within that period, a joint resolution 
prohibiting the proposed transfer.
    ``(C)(i) 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.
    ``(ii) For the purpose of expediting the consideration and 
enactment of joint resolutions under this paragraph, a motion to 
proceed to the consideration of any such joint resolution after it has 
been reported by the appropriate committee shall be treated as highly 
privileged in the House of Representatives.''.
    (c) Commercial Sales.--Section 36(c)(2) of such Act (22 U.S.C. 
2753(c)(2)) is amended by amending subparagraphs (A) and (B) to read as 
follows:
            ``(A) in the case of a license for an export to the North 
        Atlantic Treaty Organization, any member country of that 
        Organization or Australia, Japan, or New Zealand, shall not be 
        issued until at least 15 calendar days after the Congress 
        receives such certification, and shall not be issued then if 
        the Congress, within that 15-day period, enacts a joint 
        resolution prohibiting the proposed export; and
            ``(B) in the case of any other license, shall not be issued 
        until at least 30 calendar days after the Congress receives 
        such certification, and shall not be issued then if the 
        Congress, within that 30-day period, enacts a joint resolution 
        prohibiting the proposed export.''.
    (d) Commercial Manufacturing Agreements.--Section 36(d) of such Act 
(22 U.S.C. 2753(d)) is amended--
            (1) by inserting ``(1)'' after ``(d)'';
            (2) by striking ``for or in a country not a member of the 
        North Atlantic Treaty Organization''; and
            (3) by adding at the end the following:
    ``(2) A certification under this subsection shall be submitted--
            ``(A) at least 15 days before approval is given in the case 
        of an agreement for or in a country which is a member of the 
        North Atlantic Treaty Organization or Australia, Japan, or New 
        Zealand; and
            ``(B) at least 30 days before approval is given in the case 
        of an agreement for or in any other country;
unless the President states in his certification that an emergency 
exists which requires the immediate approval of the agreement in the 
national security interests of the United States.
    ``(3) If the President states in his certification that an 
emergency exists which requires the immediate approval of the agreement 
in the national security interests of the United States, thus waiving 
the requirements of paragraph (4), he shall set forth in the 
certification a detailed justification for his determination, including 
a description of the emergency circumstances which necessitate the 
immediate approval of the agreement and a discussion of the national 
security interests involved.
    ``(4) Approval for an agreement subject to paragraph (1) may not be 
given under section 38 if the Congress, within the 15-day or 30-day 
period specified in paragraph (2)(A) or (B), as the case may be, enacts 
a joint resolution prohibiting such approval.
    ``(5)(A) Any joint resolution under paragraph (4) 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.
    ``(B) For the purpose of expediting the consideration and enactment 
of joint resolutions under paragraph (4), a motion to proceed to the 
consideration of any such joint resolution after it has been reported 
by the appropriate committee shall be treated as highly privileged in 
the House of Representatives.''.
    (e) Government-to-Government Leases.--
            (1) Congressional review period.--Section 62 of such Act 
        (22 U.S.C. 2796a) is amended--
                    (A) in subsection (a), by striking ``Not less than 
                30 days before'' and inserting ``Before'';
                    (B) in subsection (b)--
                            (i) by striking ``determines, and 
                        immediately reports to the Congress'' and 
                        inserting ``states in his certification,''; and
                            (ii) by adding at the end of the subsection 
                        the following: ``If the President states in his 
                        certification that such an emergency exists, he 
                        shall set forth in the certification a detailed 
                        justification for his determination, including 
                        a description of the emergency circumstances 
                        which necessitate that the lease be entered 
                        into immediately and a discussion of the 
                        national security interests involved.''; and
                    (C) by adding at the end of the section the 
                following:
    ``(c) The certification required by subsection (a) shall be 
transmitted--
            ``(1) not less than 15 calendar days before the agreement 
        is entered into or renewed in the case of an agreement with the 
        North Atlantic Treaty Organization, any member country of that 
        Organization or Australia, Japan, or New Zealand; and
            ``(2) not less than 30 calendar days before the agreement 
        is entered into or renewed in the case of an agreement with any 
        other organization or country.''.
            (2) Congressional veto.--Section 63(a) of such Act (22 
        U.S.C. 2796b(a)) is amended--
                    (A) by striking ``(a)(1)'' and inserting ``(a)'';
                    (B) by striking out the ``30 calendar days after 
                receiving the certification with respect to that 
                proposed agreement pursuant to section 62(a),'' and 
                inserting in lieu thereof ``the 15-day or 30-day period 
                specified in section 62(c) (1) or (2), as the case may 
                be,''; and
                    (C) by striking paragraph (2).
    (f) Effective Date.--The amendments made by this section apply with 
respect to certifications required to be submitted on or after the date 
of the enactment of this Act.

SEC. 3182. STANDARDIZATION OF THIRD COUNTRY TRANSFERS OF DEFENSE 
              ARTICLES.

    Section 3 of the Arms Export Control Act (22 U.S.C. 2753) is 
amended by inserting after subsection (a) the follow new subsection:
    ``(b) The consent of the President under paragraph (2) of 
subsection (a) or under the third sentence of such subsection shall not 
be required for the transfer by a foreign country or international 
organization of defense articles sold by the United States under this 
Act if--
            ``(1) such articles constitute components incorporated into 
        foreign defense articles;
            ``(2) the recipient is the government of a member country 
        of the North Atlantic Treaty Organization, the Government of 
        Australia, the Government of Japan, or the Government of New 
        Zealand;
            ``(3) the United States-origin components are not--
                    ``(A) significant military equipment (as defined in 
                section 47(9));
                    ``(B) defense articles for which notification to 
                Congress is required under section 36(b); and
                    ``(C) identified by regulation as Missile 
                Technology Control Regime items; and
            ``(4) the foreign country or international organization 
        provides notification of the transfer of the defense articles 
        to the United States Government not later than 30 days after 
        the date of such transfer.''.

SEC. 3183. INCREASED STANDARDIZATION, RATIONALIZATION, AND 
              INTEROPERABILITY OF ASSISTANCE AND SALES PROGRAMS.

    Paragraph (6) of section 515(a) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2321i(a)(6)) is amended by striking ``among members of 
the North Atlantic Treaty Organization and with the Armed Forces of 
Japan, Australia, and New Zealand''.

SEC. 3184. REPEAL OF PRICE AND AVAILABILITY REPORTING REQUIREMENT 
              RELATING TO PROPOSED SALE OF DEFENSE ARTICLES AND 
              SERVICES.

    (a) In General.--Section 28 of the Arms Export Control Act (22 
U.S.C. 2768) is hereby repealed.
    (b) Conforming Amendment.--Section 36(b) of such Act (22 U.S.C. 
2776(b)) is amended by striking paragraph (4) of such section.

SEC. 3185. DEFINITION OF SIGNIFICANT MILITARY EQUIPMENT.

    Section 47 of the Arms Export Control Act (22 U.S.C. 2794) is 
amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
    ``(9) `significant military equipment' means articles--
            ``(A) for which special export controls are warranted 
        because of the capacity of such articles for substantial 
        military utility or capability; and
            ``(B) identified as items on the United States Munitions 
        List.''.

SEC. 3186. ELIMINATION OF SPECIAL DEFENSE ACQUISITION FUND ANNUAL 
              REPORT.

    (a) In General.--Section 53 of the Arms Export Control Act (22 
U.S.C. 2795b) is hereby repealed.
    (b) Conforming Amendment.--Section 51(a)(4) of such Act (22 U.S.C. 
2795(a)(4)) is amended by striking subparagraph (B) of such section.

SEC. 3187. COST OF LEASED DEFENSE ARTICLES THAT HAVE BEEN LOST OR 
              DESTROYED.

    Section 61(a)(3) of the Arms Export Control Act (22 U.S.C. 2796(a)) 
is amended by striking ``and the replacement cost'' and all that 
follows and inserting the following: ``and, if the articles are lost or 
destroyed while leased--
                    ``(A) in the event the United States intends to 
                replace the articles lost or destroyed, the replacement 
                cost (less any depreciation in the value) of the 
                articles; or
                    ``(B) in the event the United States does not 
                intend to replace the articles lost or destroyed, an 
                amount not less than the actual value (less any 
                depreciation in the value) specified in the lease 
                agreement.''.

SEC. 3188. DESIGNATION OF MAJOR NON-NATO ALLIES.

    (a) Designation.--
            (1) Notice to Congress.--Chapter 2 of part II of the 
        Foreign Assistance Act of 1961 (22 U.S.C. 2311 et seq.) is 
        amended by adding at the end the following new section:

``SEC. 520. DESIGNATION OF MAJOR NON-NATO ALLIES.

    ``(a) Notice to Congress.--The President shall notify the Congress 
in writing at least 30 days before--
            ``(1) designating a country as a major non-NATO ally for 
        purposes of this Act and the Arms Export Control Act (22 U.S.C. 
        2751 et seq.); or
            ``(2) terminating such a designation.
    ``(b) Initial Designations.--Australia, Egypt, Israel, Japan, the 
Republic of Korea, and New Zealand shall be deemed to have been so 
designated by the President as of the effective date of this section, 
and the President is not required to notify the Congress of such 
designation of those countries.''.
            (2) Definition.--Section 644 of such Act (22 U.S.C. 2403) 
        is amended by adding at the end the following:
    ``(q) `Major non-NATO ally' means a country which is designated in 
accordance with section 520 as a major non-NATO ally for purposes of 
this Act and the Arms Export Control Act (22 U.S.C. 2751 et seq.).''.
            (3) Existing definitions.--(A) The last sentence of section 
        21(g) of the Arms Export Control Act (22 U.S.C. 2761(g)) is 
        repealed.
            (B) Section 65(d) of such Act is amended--
                    (i) by striking ``or major non-NATO''; and
                    (ii) by striking out ``or a'' and all that follows 
                through ``Code''.
    (b) Cooperative Training Agreements.--Section 21(g) of the Arms 
Export Control Act (22 U.S.C. 2761(g)) is amended in the first sentence 
by striking ``similar agreements'' and all that follows through ``other 
countries'' and inserting ``similar agreements with countries''.

SEC. 3189. CERTIFICATION THRESHOLDS.

    (a) Increase in Dollar Thresholds.--The Arms Export Control Act (22 
U.S.C. 2751 et seq.) is amended--
            (1) in section 3(d) (22 U.S.C. 2753(d))--
                    (A) in paragraphs (1) and (3), by striking 
                ``$14,000,000'' each place it appears and inserting 
                ``$25,000,000''; and
                    (B) in paragraphs (1) and (3), by striking 
                ``$50,000,000'' each place it appears and inserting 
                ``$75,000,000'';
            (2) in section 36 (22 U.S.C. 2776)--
                    (A) in subsections (b)(1), (b)(5)(C), and (c)(1), 
                by striking ``14,000,000'' each place it appears and 
                inserting ``25,000,000'';
                    (B) in subsections (b)(1), (b)(5)(C), and (c)(1), 
                by striking ``50,000,000'' each place it appears and 
                inserting ``75,000,000''; and
                    (C) in subsections (b)(1) and (b)(5)(C), by 
                striking ``200,000,000'' each place it appears and 
                inserting ``300,000,000''; and
            (3) in section 63(a)(1) (22 U.S.C. 2796b(a)(1))--
                    (A) by striking ``14,000,000'' and inserting 
                ``25,000,000''; and
                    (B) by striking ``$50,000,000'' and inserting 
                ``75,000,000''.
    (b) Effective Date.--The amendments made by subsection (a) apply 
with respect to certifications submitted on or after the date of the 
enactment of this Act.

SEC. 3190. COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES AND 
              SERVICES.

    (a) Costing Basis.--Section 22 of the Arms Export Control Act (22 
U.S.C. 2762) is amended by adding at the end the following:
    ``(d) Competitive Pricing.--Procurement contracts made in 
implementation of sales under this section for defense articles and 
defense services wholly paid from funds made available on a 
nonrepayable basis shall be priced on the same costing basis with 
regard to profit, overhead, independent research and development, bid 
and proposal, and other costing elements, as is applicable to 
procurements of like items purchased by the Department of Defense for 
its own use.''.
    (b) Effective Date and Implementing Regulations.--Section 22(d) of 
the Arms Export Control Act, as added by subsection (a)--
            (1) shall take effect on the 60th day following the date of 
        the enactment of this Act;
            (2) shall be applicable only to contracts made in 
        implementation of sales made after such effective date; and
            (3) shall be implemented by revised procurement 
        regulations, which shall be issued prior to such effective 
        date.

SEC. 3191. DEPLETED URANIUM AMMUNITION.

    Chapter 1 of part III of the Foreign Assistance Act of 1961 (22 
U.S.C. 2370 et seq.) is amended by adding at the end the following new 
section:

``SEC. 620G. DEPLETED URANIUM AMMUNITION.

    ``(a) Prohibition.--Except as provided in subsection (b), none of 
the funds made available to carry out this Act or any other Act may be 
made available to facilitate in any way the sale of M-833 antitank 
shells or any comparable antitank shells containing a depleted uranium 
penetrating component to any country other than--
            ``(1) a country that is a member of the North Atlantic 
        Treaty Organization;
            ``(2) a country that has been designated as a major non-
        NATO ally (as defined in section 644(q)); or
            ``(3) Taiwan.
    ``(b) Exception.--The prohibition contained in subsection (a) shall 
not apply with respect to the use of funds to facilitate the sale of 
antitank shells to a country if the President determines that to do so 
is in the national security interest of the United States.''.

                    TITLE XXXII--ECONOMIC ASSISTANCE

                 CHAPTER 1--ECONOMIC SUPPORT ASSISTANCE

SEC. 3201. ECONOMIC SUPPORT FUND.

    Section 532(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2346a(a)) is amended to read as follows:
    ``(a) There are authorized to be appropriated to the President to 
carry out the purposes of this chapter $2,346,378,000 for fiscal year 
1996 and $2,273,478,000 for fiscal year 1997.''.

SEC. 3202. ASSISTANCE FOR ISRAEL.

    (a) Minimum Allocation.--Of the amounts made available for fiscal 
years 1996 and 1997 for assistance under chapter 4 of part II of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2346 et seq.; relating to the 
economic support fund), not less than $1,200,000,000 for each such 
fiscal year shall be available only for Israel.
    (b) Terms of Assistance.--
            (1) Cash transfer.--The total amount of funds allocated for 
        Israel for each fiscal year under subsection (a) shall be made 
        available on a grant basis as a cash transfer.
            (2) Expedited disbursement.--Such funds shall be 
        disbursed--
                    (A) with respect to fiscal year 1996, not later 
                than 30 days after the date of the enactment of the 
                Foreign Operations, Export Financing, and Related 
                Programs Appropriations Act, 1996, or by October 31, 
                1995, whichever is later; and
                    (B) with respect to fiscal year 1997, not later 
                than 30 days after the date of the enactment of the 
                Foreign Operations, Export Financing, and Related 
                Programs Appropriations Act, 1997, or by October 31, 
                1996, whichever is later.
            (3) Additional requirement.--In exercising the authority of 
        this subsection, the President shall ensure that the amount of 
        funds provided as a cash transfer to Israel does not cause an 
        adverse impact on the total level of nonmilitary exports from 
        the United States to Israel.

SEC. 3203. ASSISTANCE FOR EGYPT.

    (a) Minimum Allocation.--Of the amounts made available for fiscal 
years 1996 and 1997 for assistance under chapter 4 of part II of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2346 et seq.; relating to the 
economic support fund), not less than $815,000,000 for each such fiscal 
year shall be available only for Egypt.
    (b) Additional Requirement.--In exercising the authority of this 
section, the President shall ensure that the amount of funds provided 
as a cash transfer to Egypt does not cause an adverse impact on the 
total level of nonmilitary exports from the United States to Egypt.

SEC. 3204. INTERNATIONAL FUND FOR IRELAND.

    (a) Funding.--
            (1) In general.--Of the amounts made available for fiscal 
        years 1996 and 1997 for assistance under chapter 4 of part II 
        of the Foreign Assistance Act of 1961 (22 U.S.C. 2346 et seq.; 
        relating to the economic support fund), not less than 
        $29,600,000 for fiscal year 1996 and not less than $19,600,000 
        for fiscal year 1997 shall be available for the United States 
        contribution to the International Fund for Ireland in 
        accordance with the Anglo-Irish Agreement Support Act of 1986 
        (Public Law 99-415).
            (2) Availability.--Amounts made available under paragraph 
        (1) are authorized to remain available until expended.
    (b) Additional Requirements.--
            (1) Purposes.--Section 2(b) of the Anglo-Irish Agreement 
        Support Act of 1986 (Public Law 99-415; 100 Stat. 947) is 
        amended by adding at the end the following new sentences: 
        ``United States contributions shall be used in a manner that 
        effectively increases employment opportunities in communities 
        with rates of unemployment significantly higher than the local 
        or urban average of unemployment in Northern Ireland. In 
        addition, such contributions shall be used to benefit 
        individuals residing in such communities.''.
            (2) Conditions and understandings.--Section 5(a) of such 
        Act is amended--
                    (A) in the first sentence--
                            (i) by striking ``The United States'' and 
                        inserting the following:
            ``(1) In general.--The United States'';
                            (ii) by striking ``in this Act may be 
                        used'' and inserting the following: ``in this 
                        Act--
                    ``(A) may be used'';
                            (iii) by striking the period and inserting 
                        ``; and''; and
                            (iv) by adding at the end the following:
                    ``(B) may be provided to an individual or entity in 
                Northern Ireland only if such individual or entity is 
                in compliance with the principles of economic 
                justice.''; and
                    (B) in the second sentence, by striking ``The 
                restrictions'' and inserting the following:
            ``(2) Additional requirements.--The restrictions''.
            (3) Prior certifications.--Section 5(c)(2) of such Act is 
        amended--
                    (A) in subparagraph (A), by striking ``principle of 
                equality'' and all that follows and inserting 
                ``principles of economic justice; and''; and
                    (B) in subparagraph (B), by inserting before the 
                period at the end the following: ``and will create 
                employment opportunities in regions and communities of 
                Northern Ireland suffering the highest rates of 
                unemployment''.
            (4) Annual reports.--Section 6 of such Act is amended--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) each individual or entity receiving assistance from 
        United States contributions to the International Fund has 
        agreed in writing to comply with the principles of economic 
        justice.''.
            (5) Definitions.--Section 8 of such Act is amended--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(3) the term `Northern Ireland' includes the counties of 
        Antrim, Armagh, Derry, Down, Tyrone, and Fermanagh; and
            ``(4) the term `principles of economic justice' means the 
        following principles:
                    ``(A) Increasing the representation of individuals 
                from underrepresented religious groups in the 
                workforce, including managerial, supervisory, 
                administrative, clerical, and technical jobs.
                    ``(B) Providing adequate security for the 
                protection of minority employees at the workplace.
                    ``(C) Banning provocative sectarian or political 
                emblems from the workplace.
                    ``(D) Providing that all job openings be advertised 
                publicly and providing that special recruitment efforts 
                be made to attract applicants from underrepresented 
                religious groups.
                    ``(E) Providing that layoff, recall, and 
                termination procedures do not favor a particular 
                religious group.
                    ``(F) Abolishing job reservations, apprenticeship 
                restrictions, and differential employment criteria 
                which discriminate on the basis of religion.
                    ``(G) Providing for the development of training 
                programs that will prepare substantial numbers of 
                minority employees for skilled jobs, including the 
                expansion of existing programs and the creation of new 
                programs to train, upgrade, and improve the skills of 
                minority employees.
                    ``(H) Establishing procedures to assess, identify, 
                and actively recruit minority employees with the 
                potential for further advancement.
                    ``(I) Providing for the appointment of a senior 
                management staff member to be responsible for the 
                employment efforts of the entity and, within a 
                reasonable period of time, the implementation of the 
                principles described in subparagraphs (A) through 
                (H).''.
            (6) Effective date.--The amendments made by this subsection 
        shall take effect 180 days after the date of the enactment of 
        this Act.

SEC. 3205. LAW ENFORCEMENT ASSISTANCE.

    (a) In General.--Of the amounts made available for fiscal years 
1996 and 1997 for assistance under chapter 4 of part II of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2346 et seq.; relating to the 
economic support fund), not more than $12,000,000 for each such fiscal 
year shall be available for law enforcement assistance under chapter 8 
of part I of such Act (22 U.S.C. 2291 et seq.).
    (b) Availability.--Amounts made available under subsection (a) are 
authorized to remain available until expended.

    CHAPTER 2--ASSISTANCE FOR PRIVATE SECTOR PROGRAMS AND ACTIVITIES

SEC. 3211. PRIVATE SECTOR ENTERPRISE FUNDS.

    The Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) is 
amended by inserting after section 601 the following new section:

``SEC. 601A. PRIVATE SECTOR ENTERPRISE FUNDS.

    ``(a) Authority.--(1) The President may provide funds and support 
to Enterprise Funds designated in accordance with subsection (b) that 
are or have been established for the purposes of promoting--
            ``(A) development of the private sectors of eligible 
        countries, including small businesses, the agricultural sector, 
        and joint ventures with United States and host country 
        participants; and
            ``(B) policies and practices conducive to private sector 
        development in eligible countries;
on the same basis as funds and support may be provided with respect to 
Enterprise Funds for Poland and Hungary under the Support for East 
European Democracy (SEED) Act of 1989 (22 U.S.C. 5401 et seq.).
    ``(2) Funds may be made available under this section 
notwithstanding any other provision of law.
    ``(b) Countries Eligible for Enterprise Funds.--(1) Except as 
provided in paragraph (2), the President is authorized to designate a 
private, nonprofit organization as eligible to receive funds and 
support pursuant to this section with respect to any country eligible 
to receive assistance under part I of this Act in the same manner and 
with the same limitations as set forth in section 201(d) of the Support 
for East European Democracy (SEED) Act of 1989 (22 U.S.C. 5421(d)).
    ``(2) The authority of paragraph (1) shall not apply to any country 
with respect to which the President is authorized to designate an 
enterprise fund under section 498B(c) or section 498C of this Act or 
section 201 of the Support for East European Democracy (SEED) Act of 
1989 (22 U.S.C. 5421).
    ``(c) Treatment Equivalent to Enterprise Funds for Poland and 
Hungary.--Except as otherwise specifically provided in this section, 
the provisions contained in section 201 of the Support for East 
European Democracy (SEED) Act of 1989 (22 U.S.C. 5421) (excluding the 
authorizations of appropriations provided in subsection (b) of that 
section) shall apply to any Enterprise Fund that receives funds and 
support under this section. The officers, members, or employees of an 
Enterprise Fund that receive funds and support under this section shall 
enjoy the same status under law that is applicable to officers, 
members, or employees of the Enterprise Funds for Poland and Hungary 
under section 201 of the Support for East European Democracy (SEED) Act 
of 1989 (22 U.S.C. 5421).
    ``(d) Reporting Requirement.--Notwithstanding any other provision 
of this section, the requirement of section 201(p) of the Support for 
East European Democracy (SEED) Act of 1989 (22 U.S.C. 5421(p)), that an 
Enterprise Fund shall be required to publish an annual report not later 
than January 31 each year, shall not apply with respect to an 
Enterprise Fund that receives funds and support under this section for 
the first twelve months after it is designated as eligible to receive 
such funds and support.
    ``(e) Funding.--
            ``(1) In general.--Amounts made available for a fiscal year 
        to carry out chapter 1 of part I of this Act (relating to 
        development assistance) and to carry out chapter 4 of part II 
        of this Act (relating to the economic support fund) shall be 
        available for such fiscal year to carry out this section, in 
        addition to amounts otherwise available for such purposes.
            ``(2) African development.--In addition to amounts 
        available under paragraph (1) for a fiscal year, amounts made 
        available for such fiscal year to carry out chapter 10 of part 
        I of this Act (relating to the Development Fund for Africa) 
        shall be available for such fiscal year to carry out this 
        section with respect to countries in Africa.''.

SEC. 3212. TRANS-CAUCASUS ENTERPRISE FUNDS.

    Chapter 11 of part I of the Foreign Assistance Act of 1961 (22 
U.S.C. 2295 et seq.) is amended--
            (1) by redesignating section 498C as section 498D; and
            (2) by inserting after section 498B the following new 
        section:

``SEC. 498C. TRANS-CAUCASUS ENTERPRISE FUNDS.

    ``(a) Authority.--The President may provide funds and support in 
accordance with section 498B(c) to Enterprise Funds that are or have 
been established for the purposes of promoting--
            ``(1) development of the private sectors of countries in 
        the Trans-Caucasus region of the former Soviet Union, including 
        small businesses, the agricultural sector, and joint ventures 
        with United States and host country participants; and
            ``(2) policies and practices conducive to private sector 
        development in countries in the Trans-Caucasus region of the 
        former Soviet Union.
    ``(b) Reporting Requirement.--Notwithstanding any other provision 
of this section, the requirement of section 201(p) of the Support for 
East European Democracy (SEED) Act of 1989 (22 U.S.C. 5421(p)), that an 
Enterprise Fund shall be required to publish an annual report not later 
than January 31 each year, shall not apply with respect to an 
Enterprise Fund that receives funds and support under this section for 
the first twelve months after it is designated as eligible to receive 
such funds and support.''.

SEC. 3213. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.

    (a) In General.--Section 108 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2151f) is amended to read as follows:

``SEC. 108. MICRO- AND SMALL ENTERPRISE DEVELOPMENT CREDITS.

    ``(a) Findings and Policy.--The Congress finds and declares that--
            ``(1) the development of micro- and small enterprise, 
        including cooperatives, is a vital factor in the stable growth 
        of developing countries and in the development and stability of 
        a free, open, and equitable international economic system;
            ``(2) it is, therefore, in the best interests of the United 
        States to assist the development of the private sector in 
        developing countries and to engage the United States private 
        sector in that process;
            ``(3) the support of private enterprise can be served by 
        programs providing credit, training, and technical assistance 
        for the benefit of micro- and small enterprises; and
            ``(4) programs that provide credit, training, and technical 
        assistance to private institutions can serve as a valuable 
        complement to grant assistance provided for the purpose of 
        benefiting micro- and small private enterprise.
    ``(b) Program.--To carry out the policy set forth in subsection 
(a), the President is authorized to provide assistance to increase the 
availability of credit to micro- and small enterprises lacking full 
access to credit, including through--
            ``(1) loans and guarantees to credit institutions for the 
        purpose of expanding the availability of credit to micro- and 
        small enterprises;
            ``(2) training programs for lenders in order to enable them 
        to better meet the credit needs of micro- and small 
        entrepreneurs; and
            ``(3) training programs for micro- and small entrepreneurs 
        in order to enable them to make better use of credit and to 
        better manage their enterprises.''.
    (b) Authorization of Appropriations.--
            (1) In general.--(A) There is authorized to be appropriated 
        to carry out section 108 of the Foreign Assistance Act of 1961, 
        in addition to funds otherwise available for such purposes, 
        $2,000,000 for each of the fiscal years 1996 and 1997. Funds 
        authorized to be appropriated under this subsection shall be 
        made available for the subsidy cost, as defined in section 
        502(5) of the Federal Credit Reform Act of 1990, for activities 
        under section 108 of the Foreign Assistance Act of 1961.
            (B) In addition, there are authorized to be appropriated 
        $500,000 for each of the fiscal years 1996 and 1997 for the 
        cost of training programs and administrative expenses to carry 
        out such section.
            (2) Availability of amounts.--Amounts authorized to be 
        appropriated under paragraph (1) are authorized to remain 
        available until expended.

SEC. 3214. MICROENTERPRISE DEVELOPMENT GRANTS.

    Chapter 1 of part I of the Foreign Assistance Act of 1961 (22 
U.S.C. 2151 et seq.) is amended by adding at the end the following new 
section:
    ``Sec. 129. Microenterprise Development Grants.--(a)(1) In carrying 
out this part, the administrator of the agency primarily responsible 
for administering this part is authorized to provide grant assistance 
for programs of credit and other assistance for microenterprises in 
developing countries.
    ``(2) Assistance authorized under paragraph (1) shall be provided 
through the following organizations that have a capacity to develop and 
implement microenterprise programs:
            ``(A) United States and indigenous private and voluntary 
        organizations.
            ``(B) United States and indigenous credit unions and 
        cooperative organizations.
            ``(C) Other indigenous governmental and nongovernmental 
        organizations.
    ``(3) A significant portion of assistance authorized under 
paragraph (1) shall be used for poverty lending programs which--
            ``(A) meet the needs of the very poor members of society, 
        particularly poor women; and
            ``(B) provide loans of $300 or less in 1995 United States 
        dollars to such poor members of society.
    ``(4) The administrator of the agency primarily responsible for 
administering this part shall strengthen appropriate mechanisms, 
including mechanisms for central microenterprise programs, for the 
purpose of--
            ``(A) providing technical support for field missions;
            ``(B) strengthening the institutional development of the 
        intermediary organizations described in paragraph (2); and
            ``(C) sharing information relating to the provision of 
        assistance authorized under paragraph (1) between such field 
        missions and intermediary organizations.
    ``(b) In order to maximize the sustainable development impact of 
the assistance authorized under subsection (a)(1), the administrator of 
the agency primarily responsible for administering this part shall 
establish a monitoring system that--
            ``(1) establishes performance goals for such assistance and 
        expresses such goals in an objective and quantifiable form, to 
        the extent feasible;
            ``(2) establishes performance indicators to be used in 
        measuring or assessing the achievement of the goals and 
        objectives of such assistance; and
            ``(3) provides a basis for recommendations for adjustments 
        to such assistance to enhance the sustainable development 
        impact of such assistance, particularly the impact of such 
        assistance on the very poor, particularly poor women.''.

                   CHAPTER 3--DEVELOPMENT ASSISTANCE

            Subchapter A--Development Assistance Authorities

SEC. 3221. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated the 
following amounts for the following purposes (in addition to amounts 
otherwise available for such purposes):
            (1) Development assistance fund.--$858,000,000 for each of 
        the fiscal years 1996 and 1997 to carry out sections 103 
        through 106 of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2151a through 2151d).
            (2) Development fund for africa.--$529,000,000 for each of 
        the fiscal years 1996 and 1997 to carry out chapter 10 of part 
        I of the Foreign Assistance Act of 1961 (22 U.S.C. 2293 et 
        seq.).
            (3) Assistance for the independent states of the former 
        soviet union.--$700,000,000 for fiscal year 1996 and 
        $650,000,000 for fiscal year 1997 to carry out chapter 11 of 
        part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2295 et 
        seq.).
            (4) Assistance for east european countries.--$300,000,000 
        for fiscal year 1996 and $250,000,000 for fiscal year 1997 for 
        economic assistance for Eastern Europe and the Baltic states 
        under the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et 
        seq.) and the Support for East European Democracy (SEED) Act of 
        1989 (22 U.S.C. 5401 et seq.).
            (5) Inter-american foundation.--$20,000,000 for fiscal year 
        1996 and $10,000,000 for fiscal year 1997 to carry out section 
        401 of the Foreign Assistance Act of 1969 (22 U.S.C. 290f).
            (6) African development foundation.--$10,000,000 for fiscal 
        year 1996 and $5,000,000 for fiscal year 1997 to carry out the 
        African Development Foundation Act (22 U.S.C. 290h et seq.).
    (b) Availability of Amounts.--Amounts authorized to be appropriated 
under subsection (a) are authorized to remain available until expended.

SEC. 3222. ASSISTANCE FOR FAMILY PLANNING.

    (a) Restriction on Use of Funds for Voluntary Population 
Planning.--Section 104(b) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2151b(b)) is amended by inserting after the first sentence the 
following new sentence: ``Such assistance shall be available only for 
voluntary family planning projects which offer, either directly or 
through referral to, or information about access to, a broad range of 
family planning methods and services.''.
    (b) Prohibition on Use of Funds for Voluntary Population Planning 
to Organizations or Programs Supporting or Participating in the 
Management of Abortion of Involuntary Sterilization Programs.--Section 
104(b) of such Act (22 U.S.C. 2151b(b)), as amended by subsection (a), 
is further amended--
            (1) in the first sentence, by striking ``In order to'' and 
        inserting ``(1) In order to''; and
            (2) by adding at the end the following new paragraph:
    ``(2) None of the funds made available to carry out this subsection 
may be made available to any organization or program which, as 
determined by the President, supports or participates in the management 
of a program or coercive abortion or involuntary sterilization.''.
    (c) Prohibition on Discrimination With Respect to Grants for 
Natural Family Planning.--Section 104(b) of such Act (22 U.S.C. 
2151b(b)), as amended by subsections (a) and (b), is further amended by 
adding at the end the following new paragraph:
    ``(3) In providing grants for natural family planning under this 
subsection, the administrator of the agency primarily responsible for 
administering this part shall not discriminate against applicants 
because of any religious or conscientious commitment by such applicants 
to offer only natural family planning services.''.
    (d) Clarification With Respect to Prohibition on Use of Funds for 
Abortions.--Section 104(f)(1) of such Act (22 U.S.C. 2151b(f)(1)) is 
amended--
            (1) by striking ``None of the funds'' and inserting ``(A) 
        None of the funds''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) For purposes of this paragraph, the term `motivate' shall not 
be construed to prohibit the provision, consistent with local law, of 
information and counseling concerning all pregnancy options, including 
abortion.''.

SEC. 3223. ASSISTANCE FOR THE INDEPENDENT STATES OF THE FORMER SOVIET 
              UNION.

    (a) Conditions on Assistance .--Section 498A(b) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2295a(b)) is amended--
            (1) in paragraph (4), by striking ``or'' at the end;
            (2) by redesignating paragraph (5) as paragraph (8); and
            (3) by inserting after paragraph (4) the following new 
        paragraphs:
            ``(5) for the government of any independent state that the 
        President determines directs any action in violation of the 
        territorial integrity or national sovereignty of any other new 
        independent state, such as those violations included in 
        Principle Six of the Helsinki Final Act of the Conference on 
        Security and Cooperation in Europe, except that this paragraph 
        shall not apply to the provision of such assistance for 
        purposes of--
                    ``(A) humanitarian, disaster, and refugee relief; 
                or
                    ``(B) assisting democratic political reform and the 
                creation of private sector nongovernmental 
                organizations that are independent of government 
                ownership and control;
            ``(6) for the purpose of enhancing the military capability 
        of any independent state, except that this paragraph shall not 
        apply to demilitarization, defense conversion or 
        nonproliferation programs, or programs to support troop 
        withdrawal including through the support of an officer 
        resettlement program, and technical assistance for the housing 
        sector;
            ``(7) for the Government of Russia if the President 
        determines that Government--
                    ``(A) is not making progress in implementing 
                comprehensive economic reforms based on market 
                principles, including fostering private ownership, the 
                repayment of commercial debt, the respect of commercial 
                contracts, the equitable treatment of foreign private 
                investment; or
                    ``(B) applies or transfers assistance provided 
                under this chapter to any entity for the purpose of 
                expropriating or seizing ownership or control of 
                assets, investments, or ventures; or''.
    (b) Assistance Through the Private Sector.--Section 498B(a) of such 
Act (22 U.S.C. 2295b(a)) is amended to read as follows:
    ``(a) Assistance Through the Private Sector.--Assistance under this 
chapter shall be provided, to the maximum extent feasible, through the 
private sector, including private and voluntary organizations and other 
nongovernmental organizations functioning in the independent states of 
the former Soviet Union.''.
    (c) Waiver of Certain Provisions.--Section 498B(j)(1) of such Act 
(22 U.S.C. 2295b(j)(1)) is amended in the matter preceding subparagraph 
(A)--
            (1) by striking ``for fiscal year 1993 by this chapter'' 
        and inserting ``to carry out this chapter''; and
            (2) by striking ``appropriated for fiscal year 1993''.

SEC. 3224. EFFECTIVENESS OF UNITED STATES DEVELOPMENT ASSISTANCE.

    Chapter 1 of part I of the Foreign Assistance Act of 1961 (22 
U.S.C. 2251 et seq.), as amended by section 3214, is further amended by 
adding at the end the following new section:

``SEC. 130. EFFECTIVENESS OF UNITED STATES DEVELOPMENT ASSISTANCE.

    ``(a) Reports.--Not later than December 31, 1996, and December 31 
of each third year thereafter, the President shall transmit to the 
Congress a report which analyzes, on a country-by-country basis, the 
impact and effectiveness of the United States development assistance 
provided during the preceding three fiscal years. Each report shall 
include the following for each recipient country:
            ``(1) An analysis of the impact of United States 
        development assistance during the preceding three fiscal years 
        on development in that country, with a discussion of the United 
        States interests that were served by the assistance. This 
        analysis shall be done on a sector-by-sector basis to the 
        extent possible and shall identify any economic policy reforms 
        which were promoted by the assistance. This analysis shall--
                    ``(A) include a description, quantified to the 
                extent practicable, of the specific objectives the 
                United States sought to achieve in providing 
                development assistance for that country; and
                    ``(B) specify the extent to which those objectives 
                were not achieved, with an explanation of why they were 
                not achieved.
            ``(2) A description of the amount and nature of development 
        assistance provided by other donors during the preceding three 
        fiscal years, set forth by development sector to the extent 
        possible.
            ``(3) A discussion of the commitment of the host government 
        to addressing the country's needs in each development sector, 
        including a description of the resources devoted by that 
        government to each development sector during the preceding 
        three fiscal years.
            ``(4) A description of the trends, both favorable and 
        unfavorable, in each development sector.
            ``(5) Statistical and other information necessary to 
        evaluate the impact and effectiveness of United States 
        development assistance on development in the country.
    ``(b) Listing of Most and Least Successful Assistance Programs.--
Each report required by this section shall identify--
            ``(1) those five countries in which United States 
        development assistance has been most successful; and
            ``(2) those five countries in which United States 
        development assistance has been least successful.
For each country listed pursuant to paragraph (2), the report shall 
explain why the assistance was not more successful and shall specify 
what the United States has done as a result.
    ``(c) Report To Be a Separate Document.--Each report required by 
this section shall be submitted to the Congress as a separate document.
    ``(d) Definition.--As used in this section, the terms `United 
States development assistance' and `development assistance' means 
assistance under this chapter.''.

                    Subchapter B--Operating Expenses

SEC. 3231. OPERATING EXPENSES GENERALLY.

    Section 667(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2427(a)(1)) is amended to read as follows:
            ``(1) $465,774,000 for fiscal year 1996 and $419,196,000 
        for fiscal year 1997 for necessary operating expenses of the 
        agency primarily responsible for administering part I of this 
        Act (other than the office of the inspector general of such 
        agency); and''.

SEC. 3232. OPERATING EXPENSES OF THE OFFICE OF THE INSPECTOR GENERAL.

    Section 667(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2427(a)), as amended by section 317, is further amended--
            (1) by redesignating paragraph (2) as paragraph (3);
            (2) by striking ``and'' at the end of paragraph (1); and
            (3) by inserting after paragraph (1) the following:
            ``(2) $35,206,000 for fiscal year 1996 and $31,685,000 for 
        fiscal year 1997 for necessary operating expenses of the office 
        of the inspector general of such agency; and''.

                       CHAPTER 4--PUBLIC LAW 480

SEC. 3241. AUTHORIZATION OF APPROPRIATIONS.

    (a) Title II.--
            (1) In general.--There is authorized to be appropriated 
        $821,000,000 for each of the fiscal years 1996 and 1997 for the 
        provision of agricultural commodities under title II of the 
        Agricultural Trade Development and Assistance Act of 1954 (7 
        U.S.C. 1721 et seq.).
            (2) Availability of amounts.--Amounts authorized to be 
        appropriated under paragraph (1) are authorized to remain 
        available until expended.
    (b) Title III.--No funds are authorized to be appropriated for 
either of the fiscal years 1996 and 1997 for the provision of 
agricultural commodities under title III of such Act (7 U.S.C. 1727 et 
seq.).

                  CHAPTER 5--HOUSING GUARANTEE PROGRAM

SEC. 3251. AUTHORIZATION OF APPROPRIATIONS FOR ADMINISTRATIVE EXPENSES.

    (a) In General.--There are authorized to be appropriated $7,000,000 
for fiscal year 1996 and $6,000,000 for fiscal year 1997 for 
administrative expenses to carry out guaranteed loan programs under 
sections 221 and 222 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2181 and 2182).
    (b) Availability.--Amounts authorized to be appropriated under 
subsection (a) are authorized to remain available until expended.

                         CHAPTER 6--PEACE CORPS

SEC. 3261. PEACE CORPS.

    Section 3(b) of the Peace Corps Act (22 U.S.C. 2502(b)) is amended 
to read as follows:
    ``(b) There are authorized to be appropriated to carry out the 
purposes of this Act $219,745,000 for each of the fiscal years 1996 and 
1997.''.

SEC. 3262. ACTIVITIES OF THE PEACE CORPS IN THE FORMER SOVIET UNION.

    (a) In General.--Of the amounts made available for fiscal years 
1996 and 1997 to carry out chapter 11 of part I of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2295 et seq.; relating to assistance 
for the independent states of the former Soviet Union), not more than 
$11,600,000 for each such fiscal year shall be available for activities 
of the Peace Corps in the independent states of the former Soviet 
Union.
    (b) Availability.--Amounts made available under subsection (a)--
            (1) with respect to fiscal year 1996 are authorized to 
        remain available until September 30, 1997; and
            (2) with respect to fiscal year 1997 are authorized to 
        remain available until September 30, 1998.

SEC. 3263. PROHIBITION ON USE OF FUNDS FOR ABORTIONS.

    Section 15 of the Peace Corps Act (22 U.S.C. 2514) is amended by 
adding at the end the following new subsection:
    ``(e) Funds made available for the purposes of this Act may not be 
used to pay for abortions.''.

              CHAPTER 7--INTERNATIONAL DISASTER ASSISTANCE

SEC. 3271. AUTHORITY TO PROVIDE RECONSTRUCTION ASSISTANCE.

    Section 491 of the Foreign Assistance Act of 1961 (22 U.S.C. 2292) 
is amended--
            (1) in subsection (b), by striking ``and rehabilitation'' 
        and inserting ``, rehabilitation, and reconstruction''; and
            (2) in subsection (c), by striking ``and rehabilitation'' 
        and inserting ``, rehabilitation, and reconstruction''.

SEC. 3272. AUTHORIZATIONS OF APPROPRIATIONS.

    Section 492(a) of such Act (22 U.S.C. 2292a(a)) is amended to read 
as follows:
    ``(a) There are authorized to be appropriated to the President to 
carry out section 491, in addition to funds otherwise available for 
such purposes, $200,000,000 for each of the fiscal years 1996 and 
1997.''.

                      CHAPTER 8--OTHER PROVISIONS

SEC. 3281. EXEMPTION FROM RESTRICTIONS ON ASSISTANCE THROUGH 
              NONGOVERNMENTAL ORGANIZATIONS.

    Section 123(e) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151u(e)) is amended to read as follows:
    ``(e)(1) Subject to paragraph (3), restrictions contained in this 
Act or any other provision of law with respect to assistance for a 
country shall not be construed to restrict assistance under this 
chapter or chapter 10 of this part in support of programs of 
nongovernmental organizations.
    ``(2) The President shall take into consideration, in any case in 
which a restriction on assistance for a country would be applicable but 
for this subsection, whether assistance for programs of nongovernmental 
organizations is in the national interest of the United States.
    ``(3) Whenever the authority of this subsection is used to furnish 
assistance for a program of a nongovernmental organization, the 
President shall notify the congressional committees specified in 
section 634A(a) of this Act in accordance with procedures applicable to 
reprogramming notifications under that section. Such notification shall 
describe the program assisted, the assistance provided, and the reasons 
for furnishing such assistance.''.

SEC. 3282. FUNDING REQUIREMENTS RELATING TO UNITED STATES PRIVATE AND 
              VOLUNTARY ORGANIZATIONS.

    (a) In General.--Section 123(g) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2151u(g)) is amended to read as follows:
    ``(g) Funds made available to carry out this chapter and chapter 10 
of this part may not be made available to any United States private and 
voluntary organization, except any cooperative development 
organization, that obtains less than 20 percent of its total annual 
financial support for its international activities from sources other 
than the United States Government.''.
    (b) Effective Date.--The amendment made by subsection (a) apply 
with respect to funds made available for programs of any United States 
private and voluntary organization on or after the date of the 
enactment of this Act.

SEC. 3283. DOCUMENTATION REQUESTED OF PRIVATE AND VOLUNTARY 
              ORGANIZATIONS.

    Section 620 of the Foreign Assistance Act of 1961 (22 U.S.C. 2370) 
is amended by inserting after subsection (u) the following new 
subsection:
    ``(v) None of the funds made available to carry out this Act shall 
be available to any private and voluntary organization which--
            ``(1) fails to provide upon timely request any document, 
        file, or record necessary to the auditing requirements of the 
        agency primarily responsible for administering part I of this 
        Act; or
            ``(2) is not registered with the agency primarily 
        responsible for administering part I of this Act.''.

SEC. 3284. FOREIGN GOVERNMENT PARKING FINES.

    (a) In General.--Chapter 1 of part III of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2351 et seq.), as amended by this Act, is 
further amended by adding at the end the following new section:

``SEC. 620H. FOREIGN GOVERNMENT PARKING FINES.

    ``(a) In General.--An amount equivalent to 110 percent of the total 
unpaid fully adjudicated parking fines and penalties owed to the 
District of Columbia, Virginia, Maryland, and New York by the 
government of a foreign country as of the end of a fiscal year, as 
certified to the President by the chief executive officer of each State 
or District, shall be withheld from obligation for such country out of 
funds available in the next fiscal year to carry out part I of this 
Act, until the requirement of subsection (b) is satisfied.
    ``(b) Requirement.--The requirement of this subsection is satisfied 
when the Secretary of State determines and certifies to the appropriate 
congressional committees that such fines and penalties are fully paid 
to the governments of the District of Columbia, Virginia, Maryland, and 
New York.
    ``(c) Appropriate Congressional Committees Defined.--For purposes 
of this section, the term `appropriate congressional committees' means 
the Committee on International Relations and the Committee on 
Appropriations of the House of Representatives and the Committee on 
Foreign Relations and the Committee on Appropriations of the Senate.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to fines certified as of the end of fiscal year 1995 
or any fiscal year thereafter.

                   TITLE XXXIII--REGIONAL PROVISIONS

SEC. 3301. PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS PROVIDING 
              ASSISTANCE TO CUBA.

    (a) In General.--Section 620 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2370) is amended by inserting after subsection (v) (as added 
by section 3283) the following new subsection:
    ``(w)(1) No assistance may be provided under this Act (other than 
humanitarian assistance and assistance for refugees) for a fiscal year 
to any foreign government that the President determines has provided 
economic assistance to or engaged in nonmarket-based trade with the 
Government of Cuba or any entity controlled by such Government in the 
preceding fiscal year.
    ``(2) The President may waive the requirements of paragraph (1) 
if--
            ``(A) the President certifies to the congressional 
        committees specified in section 634A of this Act (in accordance 
        with procedures applicable to reprogramming of funds under that 
        section) that the provision of such assistance is vital to the 
        national security of the United States; or
            ``(B) the President determines and reports to the Congress 
        that the Government of Cuba has met the requirements contained 
        in section 1708 of the Cuban Democracy Act of 1992 (22 U.S.C. 
        6001 et seq.).
    ``(3) Not later than February 1st each year, the President shall 
prepare and transmit to the appropriate congressional committees a 
report containing a list of all foreign governments that the President 
has determined have provided economic assistance to or engaged in 
nonmarket-based trade with the Government of Cuba in the preceding 
fiscal year.
    ``(4) For purposes of this subsection--
            ``(A) the term `appropriate congressional committees' means 
        the Committee on International Relations and the Committee on 
        Appropriations of the House of Representatives and the 
        Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate;
            ``(B) the term `humanitarian assistance' means food 
        (including the monetization of food), clothing, medicine, and 
        medical supplies; and
            ``(C) the term `nonmarket-based trade' includes exports, 
        imports, exchanges, or other trade arrangements under which 
        goods or services are provided on terms more favorable than 
        those generally available in applicable markets or for 
        comparable commodities, including--
                    ``(i) exports to the Government of Cuba on terms 
                that involve a grant, concessional price, guaranty, 
                insurance, or subsidy;
                    ``(ii) imports from the Government of Cuba at 
                preferential tariff rates; and
                    ``(iii) exchange arrangements that include advance 
                delivery of commodities, arrangements in which the 
                Government of Cuba is not held accountable for 
                unfulfilled exchange contracts, and arrangements under 
                which such Government does not pay appropriate 
                transportation, insurance, or finance costs.''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        prohibition on assistance to a foreign government contained in 
        section 620(w) of the Foreign Assistance Act of 1961, as added 
        by subsection (a), shall apply only with respect to assistance 
        provided in fiscal years beginning on or after the date of the 
        enactment of this Act.
            (2) Exception.--In the case of the fiscal year in which 
        this Act is enacted, such prohibition shall apply with respect 
        to the obligation or expenditure of assistance on or after the 
        date of the enactment of this Act.

SEC. 3302. ASSISTANCE FOR NICARAGUA.

    (a) Restrictions.--Amounts made available for fiscal years 1996 and 
1997 for assistance under chapter 1 of part I of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2151 et seq.; relating to development 
assistance) or chapter 4 of part II of such Act (22 U.S.C. 2346 et 
seq.; relating to the economic support fund), including any unobligated 
balances of prior appropriations, may only be made available to the 
Government of Nicaragua if the Secretary of State, in consultation with 
the Secretary of Defense and the Director of the Central Intelligence, 
determines and certifies to the appropriate congressional committees 
that--
            (1) a full and independent investigation has been completed 
        of the weapons caches discovered after the May 23, 1993, Santa 
        Rosa arms cache explosion, including an investigation of 
        passports, identity papers, and other documents found at 
        weapons sites indicating the existence of a terrorist or 
        kidnapping ring and that the terrorist network was not involved 
        with the February 1993 World Trade Center bombing;
            (2) all individuals, including government officials and 
        members of the armed forces or security forces of Nicaragua, 
        identified by the President as part of a terrorist or 
        kidnapping ring, have been prosecuted;
            (3) Nicaragua has met the requirements set forth in section 
        527 of the Foreign Relations Authorization Act, Fiscal Years 
        1994 and 1995 (relating to expropriation of United States 
        property);
            (4) the timely implementation of all recommendations made 
        by the Tripartite Commission with respect to individuals 
        responsible for assassinations has been made, including the 
        immediate suspension of all individuals from the Sandinista 
        Army and security forces who were named in such 
        recommendations, and the expeditious prosecution of such 
        individuals;
            (5) all individuals implicated in the murders of Jean Paul 
        Genie, Arges Sequeira, and Enrique Bermudez have been removed 
        from the military and security forces of Nicaragua, and 
        judicial proceedings against these individuals have been 
        completed;
            (6) specific changes have been implemented which have 
        resulted in verifiable civilian control over the Sandinista 
        military, security forces, and police; and
            (7) there have been genuine, effective, and concrete 
        reforms in the Nicaraguan judicial system.
    (b) Contents of Certification.--
            (1) In general.--A certification made pursuant to 
        subsection (a) shall include a detailed accounting of all 
        evidence in support of the determinations listed in paragraphs 
        (1) through (7) of such subsection.
            (2) Form.--A certification made pursuant to subsection (a) 
        shall be submitted in unclassified form, and, to the extent 
        necessary, classified form.
    (c) Appropriate Congressional Committees Defined.--For purposes of 
this section, the term ``appropriate congressional committees'' means 
the Committee on International Relations and the Committee on 
Appropriations of the House of Representatives and the Committee on 
Foreign Relations and the Committee on Appropriations of the Senate.

SEC. 3303. ELIGIBILITY OF PANAMA UNDER ARMS EXPORT CONTROL ACT.

    The Government of the Republic of Panama shall be eligible to 
purchase defense articles and defense services under the Arms Export 
Control Act (22 U.S.C. 2751 et seq.), except as otherwise specifically 
provided by law.

SEC. 3304. FUTURE OF THE UNITED STATES MILITARY PRESENCE IN PANAMA.

    (a) Findings.--The Congress makes the following findings:
            (1) The Panama Canal is a vital strategic asset to the 
        United States, its allies, and the world.
            (2) The Treaty on the Permanent Neutrality and Operation of 
        the Panama Canal signed on September 7, 1977, provides that 
        Panama and the United States have the responsibility to assure 
        that the Panama Canal will remain open and secure.
            (3) Such Treaty also provides that each of the two 
        countries shall, in accordance with their respective 
        constitutional processes, defend the Canal against any threat 
        to the regime of neutrality, and consequently shall have the 
        right to act against any aggression or threat directed against 
        the Canal or against the peaceful transit of vessels through 
        the Canal.
            (4) The United States instrument of ratification of such 
        Treaty includes specific language that the two countries should 
        consider negotiating future arrangements or agreements to 
        maintain military forces necessary to fulfill the 
        responsibility of the two countries of maintaining the 
        neutrality of the Canal after 1999.
            (5) The Government of Panama, in the bilateral Protocol of 
        Exchange of instruments of ratification, expressly ``agreed 
        upon'' such arrangements or agreements.
            (6) The United States Navy depends upon the Panama Canal 
        for rapid transit in times of emergency, as demonstrated during 
        World War II, the Korean War, the Vietnam conflict, the Cuban 
        Missile Crisis, and the Persian Gulf conflict.
            (7) Drug trafficking and money laundering have proliferated 
        in the Western Hemisphere since the Treaty on the Permanent 
        Neutrality and Operation of the Panama Canal was signed on 
        September 7, 1977, and such trafficking and laundering poses a 
        grave threat to peace and security in the region.
            (8) Certain facilities now utilized by the United States 
        Armed Forces in Panama are critical to combat the trade in 
        illegal drugs.
            (9) The United States and Panama share common policy goals 
        such as strengthening democracy, expanding economic trade, and 
        combating illegal narcotics throughout Latin America.
            (10) The Government of Panama has dissolved its military 
        forces and has maintained only a civilian police organization 
        to defend the Panama Canal against aggression.
            (11) Certain public opinion polls in Panama suggest that 
        many Panamanians desire a continued United States military 
        presence in Panama.
    (b) Sense of the Congress.--It is the sense of the Congress that--
            (1) the President should negotiate a new base rights 
        agreement with the Government of Panama--
                    (A) to allow the stationing of United States Armed 
                Forces in Panama beyond December 31, 1999; and
                    (B) to ensure that the United States will be able 
                to act appropriately, consistent with the Panama Canal 
                Treaty, the Treaty Concerning the Permanent Neutrality 
                and Operation of the Panama Canal, and the resolutions 
                of ratification thereto, for the purpose of assuring 
                that the Panama Canal shall remain open, neutral, 
                secure, and accessible; and
            (2) the President should consult with the Congress 
        throughout the negotiations described in paragraph (1).

SEC. 3305. PEACE AND STABILITY IN THE SOUTH CHINA SEA.

    (a) Findings.--The Congress finds the following:
            (1) The South China Sea is a critically important waterway 
        through which 25 percent of the world's ocean freight and 70 
        percent of Japan's energy supplies transit.
            (2) The South China Sea serves as a crucial sea lane for 
        United States Navy ships moving between the Pacific and Indian 
        Oceans, particularly in time of emergency.
            (3) There are a number of competing claims to territory in 
        the South China Sea.
            (4) The 1992 Manila Declaration adhered to by the 
        Association of South East Asian Nations, the Socialist Republic 
        of Vietnam, and the People's Republic of China calls for all 
        claimants to territory in the South China Sea to resolve 
        questions of boundaries through peaceful negotiations.
            (5) The legislature of the People's Republic of China has 
        declared the entire South China Sea to be Chinese territorial 
        waters.
            (6) The armed forces of the People's Republic of China have 
        asserted China's claim to the South China Sea through the 
        kidnapping of citizens of the Republic of the Philippines and 
        the construction of military bases on territory claimed by the 
        Philippines.
            (7) These acts of aggression committed by the armed forces 
        of the People's Republic of China against citizens of the 
        Philippines are contrary to both international law and to peace 
        and stability in East Asia.
    (b) Policy Declarations.--The Congress--
            (1) declares the right of free passage through the South 
        China Sea to be vital to the national security interests of the 
        United States, its friends, and allies;
            (2) declares that any attempt by a nondemocratic power to 
        assert, through the use of force or intimidation, its claims to 
        territory in the South China Sea to be a matter of grave 
        concern to the United States;
            (3) calls upon the Government of the People's Republic of 
        China to adhere faithfully to its commitment under the Manila 
        Declaration of 1992; and
            (4) calls upon the President to review the defense needs of 
        democratic countries with claims to territory in the South 
        China Sea.

SEC. 3306. ASSISTANCE FOR ZAIRE.

    (a) Security Assistance.--Assistance may not be provided for the 
Government of Zaire for each of the fiscal years 1996 and 1997--
            (1) under chapter 4 of part II of the Foreign Assistance 
        Act of 1961 (22 U.S.C. 2346 et seq.; relating to the economic 
        support fund);
            (2) under chapter 5 of part II of that Act (22 U.S.C. 2347 
        et seq.; relating to international military education and 
        training); or
            (3) from the ``Foreign Military Financing Program'' account 
        under section 23 of the Arms Export Control Act (22 U.S.C. 
        2763).
    (b) Development Assistance.--Assistance under chapter 1 of part I 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.; relating 
to development assistance) or chapter 10 of such part (22 U.S.C. 2293 
et seq.; relating to the Development Fund for Africa) for each of the 
fiscal years 1996 and 1997 shall not be provided to the Government of 
Zaire.

         TITLE XXXIV--SPECIAL AUTHORITIES AND OTHER PROVISIONS

                     CHAPTER 1--SPECIAL AUTHORITIES

SEC. 3401. ENHANCED TRANSFER AUTHORITY.

    Section 610 of the Foreign Assistance Act of 1961 (22 U.S.C. 2360) 
is amended to read as follows:

``SEC. 610. TRANSFER BETWEEN ACCOUNTS.

    ``(a) General Authority.--Whenever the President determines it to 
be necessary for the purposes of this Act or the Arms Export Control 
Act (22 U.S.C. 2751 et seq.), not to exceed 20 percent of the funds 
made available to carry out any provision of this Act (except funds 
made available pursuant to title IV of chapter 2 of part I) or section 
23 of the Arms Export Control Act (22 U.S.C. 2763)--
            ``(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 purpose for which funds in that 
        account or fund may be used.
    ``(b) Limitation on Amount of Increase.--The total amount in the 
account or fund for the benefit of which transfer is made under 
subsection (a) during any fiscal year may not be increased by more than 
20 percent of the amount of funds otherwise made available.
    ``(c) Notification.--The President shall notify in writing the 
congressional committees specified in section 634A at least fifteen 
days in advance of each such transfer between accounts in accordance 
with procedures applicable to reprogramming notifications under such 
section.''.

SEC. 3402. AUTHORITY TO MEET UNANTICIPATED CONTINGENCIES.

    (a) In General.--Chapter 1 of part III of the Foreign Assistance 
Act of 1961 is amended by inserting after section 610 (22 U.S.C. 2360) 
the following new section:

``SEC. 610A. AUTHORITY TO MEET UNANTICIPATED CONTINGENCIES.

    ``(a) Authority.--
            ``(1) In general.--In order to provide for any 
        unanticipated contingency in the programs, projects, or 
        activities for which assistance is provided under this Act, the 
        President is authorized to use funds made available to carry 
        out any provision of this Act for the purpose of providing 
        assistance authorized by any other provision of this Act in 
        accordance with the provisions applicable to the furnishing of 
        such assistance.
            ``(2) Limitation.--The authority of paragraph (1) may not 
        be used to authorize the use of more than $40,000,000 in any 
        fiscal year.
    ``(b) Supersedes Other Laws.--Funds authorized to be appropriated 
under this section are authorized to be made available notwithstanding 
any other provision of law.
    ``(c) Notification of Congress.--
            ``(1) Notification.--Except as provided in paragraph (2), 
        the President shall notify the congressional committees 
        specified in section 634A(a) at least 15 days before obligating 
        any funds under this section in accordance with the procedures 
        applicable to reprogramming notifications under section 
        634A(a).
            ``(2) Exception.--The President may waive the requirement 
        contained in paragraph (1) if the President determines that 
        complying with such requirement would pose a substantial risk 
        to human health or welfare. If the President exercises the 
        waiver under the preceding sentence, the President shall notify 
        the congressional committees specified in section 634A(a) as 
        early as practicable, but in no event later than 3 days after 
        the date on which the President took the action to which such 
        notification requirement was applicable.''.
    (b) Repeal.--Chapter 5 of part I of the Foreign Assistance Act of 
1961 (22 U.S.C. 2261; relating to contingencies) is hereby repealed.

SEC. 3403. SPECIAL WAIVER AUTHORITY.

    Section 614 of the Foreign Assistance Act of 1961 (22 U.S.C. 2364) 
is amended to read as follows:

``SEC. 614. SPECIAL WAIVER AUTHORITY.

    ``(a) Authority.--The President may provide assistance and make 
loans under the provisions of law described in subsection (b), 
notwithstanding any other provision of law, if the President determines 
that to do so is vital to the national interests of the United States.
    ``(b) Laws Which May Be Waived.--The provisions of law described in 
this subsection are--
            ``(1) this Act;
            ``(2) the Arms Export Control Act (22 U.S.C. 2751 et seq.);
            ``(3) any provision of law authorizing the provision of 
        assistance to foreign countries or making appropriations for 
        such assistance;
            ``(4) any other provision of law that restricts the 
        authority to provide assistance or make loans under a provision 
        of law described in paragraph (1), (2), or (3).
    ``(c) Consultation With Congress.--Before exercising the authority 
under subsection (a), the President shall consult with, and shall 
provide a written policy justification to the Committee on 
International Relations and the Committee on Appropriations of the 
House of Representatives and the Committee on Foreign Relations and the 
Committee on Appropriations of the Senate.
    ``(d) Notification to Congress.--A determination under subsection 
(a) shall be effective only if the President notifies the congressional 
committees specified in subsection (c) in writing of that 
determination.
    ``(e) Annual Ceilings.--
            ``(1) In general.--The authority of this section may not be 
        used in any fiscal year to authorize--
                    ``(A) more than $750,000,000 in sales or leases to 
                be made under the Arms Export Control Act (22 U.S.C. 
                2751 et seq.);
                    ``(B) the use of more than $250,000,000 of funds 
                made available under this Act or the Arms Export 
                Control Act; or
                    ``(C) the use of more than $100,000,000 of foreign 
                currencies accruing under this Act or any other 
                provision of 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 $75,000,000 of the 
        $250,000,000 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 $500,000,000 of the aggregate 
        limitation of $1,000,000,000 provided in paragraph (1)(A) and 
        (1)(B) may be allocated to any one country in any fiscal 
        year.''.

SEC. 3404. TERMINATION OF ASSISTANCE.

    Section 617 of the Foreign Assistance Act of 1961 (22 U.S.C. 2364) 
is amended to read as follows:

``SEC. 617. TERMINATION OF ASSISTANCE.

    ``(a) In General.--(1) In order to ensure the effectiveness of 
assistance provided under this Act, funds made available under this Act 
to carry out any program, project, or activity of assistance shall 
remain available for obligation for a period not to exceed 8 months 
after the date of termination of such assistance for the necessary 
expenses of winding up such programs, projects, or activities and, 
notwithstanding any other provision of law, funds so obligated may 
remain available until expended.
    ``(2) Funds obligated to carry out any program, project, or 
activity of assistance before the effective date of the termination of 
such assistance are authorized to be available for expenditure for the 
necessary expenses of winding up such programs, projects, and 
activities, notwithstanding any provision of law restricting the 
expenditure of funds, and may be reobligated to meet any other 
necessary expenses arising from the termination of such assistance.
    ``(3) The necessary expenses of winding up programs, projects, and 
activities of assistance 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 to carry out 
any program, project, or activity of assistance under this Act that was 
subsequently terminated pursuant to law.
    ``(c) Guarantee Programs.--Provisions of this or any other Act 
requiring the termination of assistance under this Act shall not be 
construed to require the termination of guarantee commitments that were 
entered into before the effective date of the termination of 
assistance.''.

                      CHAPTER 2--OTHER PROVISIONS

SEC. 3411. CONGRESSIONAL PRESENTATION DOCUMENTS.

    Section 634 of the Foreign Assistance Act of 1961 (22 U.S.C. 2394) 
is amended to read as follows:

``SEC. 634. CONGRESSIONAL PRESENTATION DOCUMENTS.

    ``(a) Requirement for Submission.--As part of the annual requests 
for enactment of authorizations and appropriations for foreign 
assistance programs for each fiscal year, the President shall prepare 
and transmit to the Congress annual congressional presentation 
documents for the programs authorized under this Act and the Arms 
Export Control Act (22 U.S.C. 2751 et seq.).
    ``(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 organization, as the case may be;
            ``(2) a description of how each such program or 
        contribution supports the objectives of this Act or the Arms 
        Export Control Act, as the case may be;
            ``(3) a description of planned country, regional, or 
        centrally funded programs or contributions to international 
        organizations and programs for the coming fiscal year; and
            ``(4) for each country for which assistance is requested 
        under this Act or the Arms Export Control Act--
                    ``(A) the total number of years since 1946 that the 
                United States has provided assistance;
                    ``(B) the total amount of bilateral assistance 
                provided by the United States since 1946, including the 
                principal amount of all loans, credits, and guarantees; 
                and
                    ``(C) the total amount of assistance provided to 
                such country from all multilateral organizations to 
                which the United States is a member, including all 
                international financial institutions, the United 
                Nations, and other international organizations.
    ``(c) Graduation From Development Assistance.--
            ``(1) Determination.--As part of the congressional 
        presentation documents transmitted to the Congress under this 
        section, the Secretary of State shall make a separate 
        determination for each country identified in such documents for 
        which bilateral development assistance is requested, estimating 
        the year in which each such country will no longer be receiving 
        bilateral development assistance.
            ``(2) Development assistance defined.--For purposes of this 
        section, the term `development assistance' means assistance 
        under--
                    ``(A) chapter 1 of part I of this Act;
                    ``(B) chapter 10 of part I of this Act;
                    ``(C) chapter 11 of part I of this Act; and
                    ``(D) the Support for East European Democracy 
                (SEED) Act of 1989 (22 U.S.C. 5401 et seq.).''.

SEC. 3412. PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS ENGAGED IN 
              ESPIONAGE AGAINST THE UNITED STATES.

    Chapter 1 of part III of the Foreign Assistance Act of 1961 (22 
U.S.C. 2370 et seq.), as amended by this Act, is further amended by 
adding at the end the following new section:

``SEC. 620I. PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS ENGAGED 
              IN ESPIONAGE AGAINST THE UNITED STATES.

    ``(a) Prohibition.--None of the funds made available to carry out 
this Act or the Arms Export Control Act (22 U.S.C. 2751 et seq.) (other 
than humanitarian assistance or assistance for refugees) may be 
provided to any foreign government which the President determines is 
engaged in intelligence activities within the United States harmful to 
the national security of the United States.
    ``(b) Periodic Reports.--Beginning one year after the date of 
enactment of this section, and annually thereafter, the President shall 
prepare and transmit to the Committee on Foreign Relations and the 
Select Committee on Intelligence of the Senate and the Committee on 
International Relations and the Permanent Select Committee on 
Intelligence of the House of Representatives a report, in classified 
and unclassified forms, listing all foreign governments which the 
President determines are conducting intelligence activities within the 
United States harmful to the national security of the United States.
    ``(c) Definition.--As used in this section, the term `humanitarian 
assistance' means food (including the monetization of food), clothing, 
medicine, and medical supplies.''.

SEC. 3413. DEBT RESTRUCTURING FOR FOREIGN ASSISTANCE.

    Chapter 1 of part III of the Foreign Assistance Act of 1961 (22 
U.S.C. 2370 et seq.), as amended by this Act, is further amended by 
adding at the end the following new section:

``SEC. 620J. SPECIAL DEBT RELIEF FOR POOR COUNTRIES.

    ``(a) Authority To Reduce Debt.--The President may reduce amounts 
owed to the United States Government by a country described in 
subsection (b) as a result of--
            ``(1) loans or guarantees issued under this Act; or
            ``(2) credits extended or guarantees issued under the Arms 
        Export Control Act (22 U.S.C. 2751 et seq.).
    ``(b) Country Described.--A country described in this subsection is 
a country--
            ``(1) with a heavy debt burden that is eligible to borrow 
        from the International Development Association but not from the 
        International Bank for Reconstruction and Development (commonly 
        referred to as an `IDA-only' country); and
            ``(2) the government of which--
                    ``(A) does not have an excessive level of military 
                expenditures;
                    ``(B) has not repeatedly provided support for acts 
                of international terrorism;
                    ``(C) is cooperating with the United States on 
                international narcotics control matters;
            ``(4) (including the military or other security forces of 
        such government) does not engage in a consistent pattern of 
        gross violations of internationally recognized human rights; 
        and
            ``(5) is not prohibited from receiving assistance described 
        in section 527(a) of the Foreign Relations Authorization Act, 
        Fiscal Years 1994 and 1995 by reason of such section.
    ``(c) Limitations.--The authority under subsection (a) may be 
exercised--
            ``(1) only to implement multilateral official debt relief 
        ad referendum agreements (commonly referred to as `Paris Club 
        Agreed Minutes'); and
            ``(2) only to the extent that appropriations for the cost 
        of the modification, as defined in section 502 of the 
        Congressional Budget Act of 1974, are made in advance.
    ``(d) Certain Prohibitions Inapplicable.--A reduction of debt 
pursuant to the exercise of authority under subsection (a)--
            ``(1) shall not be considered assistance for purposes of 
        any provision of law limiting assistance to a country; and
            ``(2) may be exercised notwithstanding section 620(r) of 
        this Act or any comparable provision of law.
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to the President for the purpose of carrying out this section 
        $7,000,000 for each of the fiscal years 1996 and 1997.
            ``(2) Availability.--Amounts authorized to be appropriated 
        under paragraph (1) are authorized to remain available until 
        expended.''.

SEC. 3414. DEBT BUYBACKS OR SALES FOR DEBT SWAPS.

    Part IV of the Foreign Assistance Act of 1961 (22 U.S.C. 2430 et 
seq.) is amended by adding at the end the following new section:

``SEC. 711. AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES.

    ``(a) Loans Eligible for Sale, Reduction, or Cancellation.--
            ``(1) Authority to sell, reduce, or cancel certain loans.--
        Notwithstanding any other provision of law, the President may, 
        in accordance with this section, sell to any eligible purchaser 
        any concessional loan or portion thereof made before January 1, 
        1995, to the government of any eligible country pursuant to 
        this Act, or on receipt of payment from an eligible purchaser, 
        reduce or cancel such loan or portion thereof, only for the 
        purpose of facilitating--
                    ``(A) debt-for-equity swaps, debt-for-development 
                swaps, or debt-for-nature swaps; or
                    ``(B) a debt buyback by an eligible country of its 
                own qualified debt, only if the eligible country uses 
                an additional amount of the local currency of the 
                eligible country, equal to not less than 40 percent of 
                the price paid for such debt by such eligible country, 
                or the difference between the price paid for such debt 
                and the face value of such debt, to support activities 
                that link conservation and sustainable use of natural 
                resources with local community development, and child 
                survival and other child development, in a manner 
                consistent with sections 707 through 710, if the sale, 
                reduction, or cancellation would not contravene any 
                term or condition of any prior agreement relating to 
                such loan.
            ``(2) Terms and conditions.--Notwithstanding any other 
        provision of law, the President shall, in accordance with this 
        section, establish the terms and conditions under which loans 
        may be sold, reduced, or canceled pursuant to this section.
            ``(3) Administration.--The Facility shall notify the 
        administrator of the agency primarily responsible for 
        administering part I of this Act of purchasers that the 
        President has determined to be eligible, and shall direct such 
        agency to carry out the sale, reduction, or cancellation of a 
        loan pursuant to this section. Such agency shall make an 
        adjustment in its accounts to reflect the sale, reduction, or 
        cancellation.
            ``(4) Limitation.--The authorities of this subsection shall 
        be available only to the extent that appropriations for the 
        cost of the modification, as defined in section 502 of the 
        Congressional Budget Act of 1974, are made in advance.
    ``(b) Deposit of Proceeds.--The proceeds from the sale, reduction, 
or cancellation of any loan sold, reduced, or canceled pursuant to this 
section shall be deposited in an account or accounts established in the 
Treasury for the repayment of such loan.
    ``(c) Eligible Purchasers.--A loan may be sold pursuant to 
subsection (a)(1)(A) only to a purchaser who presents plans 
satisfactory to the President for using the loan for the purpose of 
engaging in debt-for-equity swaps, debt-for-development swaps, or debt-
for-nature swaps.
    ``(d) Debtor Consultations.--Before the sale to any eligible 
purchaser, or any reduction or cancellation pursuant to this section, 
of any loan made to an eligible country, the President shall consult 
with the country concerning the amount of loans to be sold, reduced, or 
canceled and their uses for debt-for-equity swaps, debt-for-development 
swaps, or debt-for-nature swaps.
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--For the sale, reduction, and 
        cancellation of loans or portions thereof pursuant to this 
        section, there are authorized to be appropriated to the 
        President $3,000,000 for each of the fiscal years 1996 and 
        1997.
            ``(2) Availability.--Amounts authorized to be appropriated 
        under paragraph (1) are authorized to remain available until 
        expended.''.

SEC. 3415. IMPACT ON JOBS IN THE UNITED STATES.

    Section 636 of the Foreign Assistance Act of 1961 (22 U.S.C. 2396) 
is amended by adding at the end the following new subsection:
    ``(j)(1) Funds made available to carry out the provisions of this 
Act may not be made available to provide--
            ``(A) 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;
            ``(B) 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
            ``(C) subject to paragraph (2), 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 
        foreign country, including in any designated zone or area in 
        that country.
    ``(2) Paragraph (1) shall not apply with respect to the provision 
of assistance for microenterprises and small-scale enterprises, or for 
small-holder agriculture in the informal sector of the foreign 
country.''.

SEC. 3416. PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS THAT EXPORT 
              LETHAL MILITARY EQUIPMENT TO COUNTRIES SUPPORTING 
              INTERNATIONAL TERRORISM.

    (a) In General.--Section 620 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2370) is amended by adding at the end the following new 
subsection:
    ``(y)(1) No assistance may be provided under this Act or the Arms 
Export Control Act to any foreign government that provides lethal 
military equipment to a country, the government of which the Secretary 
of State has determined pursuant to section 40(d) of the Arms Export 
Control Act is a government that has repeatedly provided support for 
acts of international terrorism.
    ``(2) The prohibition under paragraph (1) with respect to a foreign 
government shall terminate 12 months after the date on which that 
government ceases to provide such lethal military equipment.
    ``(3) The President may waive the requirements of paragraph (1) if 
the President determines that the provision of such assistance is 
important to the national security interests of the United States.
    ``(4) Whenever the waiver of paragraph (3) is exercised, the 
President shall prepare and transmit to the appropriate congressional 
committees a report with respect to the furnishing of such assistance. 
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 furthers the national 
interests of the United States.
    ``(5) For purposes of this subsection, the term `appropriate 
congressional committees' means the Committee on International 
Relations and the Committee on Appropriations of the House of 
Representatives and the Committee on Foreign Relations and the 
Committee on Appropriations of the Senate.''.
    (b) Effective Date.--Section 620(y) of the Foreign Assistance Act 
of 1961, as added by subsection (a), applies with respect to lethal 
military equipment provided pursuant to a contract entered into on or 
after the date of enactment of this Act.

                           CHAPTER 3--REPEALS

SEC. 3421. REPEAL OF OBSOLETE PROVISIONS.

    (a) 1992 Jobs Through Exports Act.--Title III of the Jobs Through 
Exports Act of 1992 is hereby 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 hereby repealed.
    (c) 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 hereby 
repealed.
    (d) 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 hereby repealed.
    (e) 1986 Assistance Act.--The Special Foreign Assistance Act of 
1986 is hereby repealed except for section 1 and section 204.
    (f) 1985 Assistance Act.--The International Security and 
Development Cooperation Act of 1985 is hereby 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.
    (g) 1985 Jordan Supplemental Act.--The Jordan Supplemental Economic 
Assistance Authorization Act of 1985 is hereby repealed.
    (h) 1985 African Famine Act.--The African Famine Relief and 
Recovery Act of 1985 is hereby repealed.
    (i) 1983 Assistance Act.--The International Security and 
Development Assistance Authorization Act of 1983 is hereby repealed.
    (j) 1983 Lebanon Assistance Act.--The Lebanon Emergency Assistance 
Act of 1983 is hereby repealed.
    (k) 1981 Assistance Act.--The International Security and 
Development Cooperation Act of 1981 is hereby repealed except for 
section 1, section 709, and section 714.
    (l) 1981 OPIC Amendments Act.--The OPIC Amendments Act of 1981 is 
hereby repealed.
    (m) 1980 Assistance Act.--The International Security and 
Development Cooperation Act of 1980 is hereby repealed except for 
section 1, section 110, section 316, and title V.
    (n) 1979 Development Assistance Act.--The International Development 
Cooperation Act of 1979 is hereby repealed.
    (o) 1979 Security Assistance Act.--The International Security 
Assistance Act of 1979 is hereby repealed.
    (p) 1979 Special Security Assistance Act.--The Special 
International Security Assistance Act of 1979 is hereby repealed.
    (q) 1978 Development Assistance Act.--The International Development 
and Food Assistance Act of 1978 is hereby repealed, except for section 
1, title IV, and section 603(a)(2).
    (r) 1978 Security Assistance Act.--The International Security 
Assistance Act of 1978 is hereby repealed.
    (s) 1977 Development Assistance Act.--The International Development 
and Food Assistance Act of 1977 is hereby repealed except for section 
1, section 132(b), and section 133.
    (t) 1977 Security Assistance Act.--The International Security 
Assistance Act of 1977 is hereby repealed.
    (u) 1976 Security Assistance Act.--The International Security 
Assistance and Arms Export Control Act of 1976 is hereby repealed 
except for section 1, section 201(b), section 212(b), section 601, and 
section 608.
    (v) 1975 Development Assistance Act.--The International Development 
and Food Assistance Act of 1975 is hereby repealed.
    (w) 1975 BIB Act.--Public Law 94-104 is hereby repealed.
    (x) 1974 Assistance Act.--The Foreign Assistance Act of 1974 is 
hereby repealed.
    (y) 1973 Emergency Assistance Act.--The Emergency Security 
Assistance Act of 1973 is hereby repealed.
    (z) 1973 Assistance Act.--The Foreign Assistance Act of 1973 is 
hereby repealed.
    (aa) 1971 Assistance Act.--The Foreign Assistance Act of 1971 is 
hereby repealed.
    (bb) 1971 Special Assistance Act.--The Special Foreign Assistance 
Act of 1971 is hereby repealed.
    (cc) 1969 Assistance Act.--The Foreign Assistance Act of 1969 is 
hereby repealed except for the first section and part IV.
    (dd) 1968 Assistance Act.--The Foreign Assistance Act of 1968 is 
hereby repealed.
    (ee) 1964 Assistance Act.--The Foreign Assistance Act of 1964 is 
hereby repealed.
    (ff) Latin American Development Act.--The Latin American 
Development Act is hereby repealed.
    (gg) 1959 Mutual Security Act.--The Mutual Security Act of 1959 is 
hereby repealed.
    (hh) 1954 Mutual Security Act.--Sections 402 and 417 of the Mutual 
Security Act of 1954 are hereby repealed.
    (ii) Department of State Authorization Act, Fiscal Years 1982 and 
1983.--Section 109 of the Department of State Authorization Act, Fiscal 
Years 1982 and 1983, is hereby repealed.
    (jj) Department of State Authorization Act, Fiscal Years 1984 and 
1985.--Sections 1004 and 1005(a) of the Department of State 
Authorization Act, Fiscal Years 1984 and 1985, are hereby repealed.
    (kk) 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.

                       TITLE XXXV--EFFECTIVE DATE

SEC. 3501. EFFECTIVE DATE.

    Except as otherwise provided in this Act, this division, and the 
amendments made by this division, shall take effect on the date of the 
enactment of this Act or October 1, 1995, whichever occurs later.
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