[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2863 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 2863

  Making appropriations for foreign operations, export financing, and 
related programs for the fiscal year ending September 30, 1996, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 22, 1996

 Ms. McKinney introduced the following bill; which was referred to the 
                      Committee on Appropriations

_______________________________________________________________________

                                 A BILL


 
  Making appropriations for foreign operations, export financing, and 
related programs for the fiscal year ending September 30, 1996, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That the following sums 
are appropriated, out of any money in the Treasury not otherwise 
appropriated, for the fiscal year ending September 30, 1996, and for 
other purposes, namely:

               TITLE I--EXPORT AND INVESTMENT ASSISTANCE

                export-import bank of the united states

    The Export-Import Bank of the United States is authorized to make 
such expenditures within the limits of funds and borrowing authority 
available to such corporation, and in accordance with law, and to make 
such contracts and commitments without regard to fiscal year 
limitations, as provided by section 104 of the Government Corporation 
Control Act, as may be necessary in carrying out the program for the 
current fiscal year for such corporation: Provided, That none of the 
funds available during the current fiscal year may be used to make 
expenditures, contracts, or commitments for the export of nuclear 
equipment, fuel, or technology to any country other than a nuclear-
weapon State as defined in Article IX of the Treaty on the Non-
Proliferation of Nuclear Weapons eligible to receive economic or 
military assistance under this Act that has detonated a nuclear 
explosive after the date of enactment of this Act.

                         subsidy appropriation

    For the cost of direct loans, loan guarantees, insurance, and tied-
aid grants as authorized by section 10 of the Export-Import Bank Act of 
1945, as amended, $786,551,000 to remain available until September 30, 
1997: Provided, That such costs, including the cost of modifying such 
loans, shall be as defined in section 502 of the Congressional Budget 
Act of 1974: Provided further, That such sums shall remain available 
until 2010 for the disbursement of direct loans, loan guarantees, 
insurance and tied-aid grants obligated in fiscal years 1996 and 1997: 
Provided further, That up to $100,000,000 of funds appropriated by this 
paragraph shall remain available until expended and may be used for 
tied-aid grant purposes: Provided further, That none of the funds 
appropriated by this paragraph may be used for tied-aid credits or 
grants except through the regular notification procedures of the 
Committees on Appropriations: Provided further, That funds appropriated 
by this paragraph are made available notwithstanding section 2(b)(2) of 
the Export-Import Bank Act of 1945, in connection with the purchase or 
lease of any product by any East European country, any Baltic State, or 
any agency or national thereof.

                        administrative expenses

    For administrative expenses to carry out the direct and guaranteed 
loan and insurance programs (to be computed on an accrual basis), 
including hire of passenger motor vehicles and services as authorized 
by 5 U.S.C. 3109, and not to exceed $20,000 for official reception and 
representation expenses for members of the Board of Directors, 
$45,614,000: Provided, That necessary expenses (including special 
services performed on a contract or fee basis, but not including other 
personal services) in connection with the collection of moneys owed the 
Export-Import Bank, repossession or sale of pledged collateral or other 
assets acquired by the Export-Import Bank in satisfaction of moneys 
owed the Export-Import Bank, or the investigation or appraisal of any 
property, or the evaluation of the legal or technical aspects of any 
transaction for which an application for a loan, guarantee or insurance 
commitment has been made, shall be considered nonadministrative 
expenses for the purposes of this heading: Provided further, That, 
notwithstanding subsection (b) of section 117 of the Export Enhancement 
Act of 1992, subsection (a) thereof shall remain in effect until 
October 1, 1996.

                overseas private investment corporation

                           noncredit account

    The Overseas Private Investment Corporation is authorized to make, 
without regard to fiscal year limitations, as provided by 31 U.S.C. 
9104, such expenditures and commitments within the limits of funds 
available to it and in accordance with law as may be necessary: 
Provided, That the amount available for administrative expenses to 
carry out the credit and insurance programs (including an amount for 
official reception and representation expenses which shall not exceed 
$35,000) shall not exceed $26,000,000: Provided further, That project-
specific transaction costs, including direct and indirect costs 
incurred in claims settlements, and other direct costs associated with 
services provided to specific investors or potential investors pursuant 
to section 234 of the Foreign Assistance Act of 1961, shall not be 
considered administrative expenses for the purposes of this heading.

                            program account

    For the cost of direct and guaranteed loans, $72,000,000, as 
authorized by section 234 of the Foreign Assistance Act of 1961: 
Provided, That such costs, including the cost of modifying such loans, 
shall be as defined in section 502 of the Congressional Budget Act of 
1974: Provided further, That such sums shall be available for direct 
loan obligations and loan guaranty commitments incurred or made during 
fiscal years 1996 and 1997: Provided further, That such sums shall 
remain available through fiscal year 2003 for the disbursement of 
direct and guaranteed loans obligated in fiscal year 1996, and through 
fiscal year 2004 for the disbursement of direct and guaranteed loans 
obligated in fiscal year 1997. In addition, such sums as may be 
necessary for administrative expenses to carry out the credit program 
may be derived from amounts available for administrative expenses to 
carry out the credit and insurance programs in the Overseas Private 
Investment Corporation Noncredit Account and merged with said account.

                  Funds Appropriated to the President

                      trade and development agency

    For necessary expenses to carry out the provisions of section 661 
of the Foreign Assistance Act of 1961, $40,000,000: Provided, That the 
Trade and Development Agency may receive reimbursements from 
corporations and other entities for the costs of grants for feasibility 
studies and other project planning services, to be deposited as an 
offsetting collection to this account and to be available for 
obligation until September 30, 1997, for necessary expenses under this 
paragraph: Provided further, That such reimbursements shall not cover, 
or be allocated against, direct or indirect administrative costs of the 
agency.

                TITLE II--BILATERAL ECONOMIC ASSISTANCE

                  funds appropriated to the president

    For expenses necessary to enable the President to carry out the 
provisions of the Foreign Assistance Act of 1961, and for other 
purposes, to remain available until September 30, 1996, unless 
otherwise specified herein, as follows:

                  Agency for International Development

                  child survival and disease programs

    Of the funds appropriated in title II of this Act, and under the 
heading ``International Organizations and Programs'' in title IV of 
this Act, not less than $484,000,000 shall be made available for 
programs for child survival, assistance to combat tropical and other 
diseases, and related activities: Provided, That this amount shall be 
made available for such activities as (1) immunization programs, (2) 
oral rehydration programs, (3) health and nutrition programs, and 
related education programs, which address the needs of mothers and 
children, (4) water and sanitation programs, (5) assistance for 
displaced and orphaned children, (6) programs for the prevention, 
treatment, and control of, and research on, tuberculosis, HIV/AIDS, 
polio, malaria and other diseases, and (7) a contribution on a grant 
basis to the United Nations Children's Fund (UNICEF).

                         development assistance

                     (including transfer of funds)

    For necessary expenses to carry out the provisions of sections 103 
through 106 and chapter 10 of part I of the Foreign Assistance Act of 
1961, title V of the International Security and Development Cooperation 
Act of 1980 (Public Law 96-533) and the provisions of section 401 of 
the Foreign Assistance Act of 1969, $1,675,000,000, to remain available 
until September 30, 1997: Provided, That of the amount appropriated 
under this heading, up to $20,000,000 may be made available for the 
Inter-American Foundation and shall be apportioned directly to that 
agency: Provided further, That of the amount appropriated under this 
heading, up to $11,500,000 may be made available for the African 
Development Foundation and shall be apportioned directly to that 
agency: Provided further, That of the funds appropriated under title II 
of this Act that are administered by the Agency for International 
Development and made available for family planning assistance, not less 
than 65 percent shall be made available directly to the agency's 
central Office of Population and shall be programmed by that office for 
family planning activities: Provided further, That the President shall 
seek to ensure that funds made available under this heading for sub-
Saharan Africa are in substantially the same proportion to the total 
amount appropriated and made available by this Act for development 
assistance as the proportion of funds made available for development 
assistance for sub-Saharan Africa was to the total amount appropriated 
for development assistance in Public Law 103-306: Provided further, 
That up to $25,000,000 of the funds appropriated under this heading may 
be made available for necessary expenses to carry out the provisions of 
section 667 of the Foreign Assistance Act: Provided further, That the 
President shall seek to ensure that the percentage of funds made 
available under this heading for the activities of private and 
voluntary organizations and cooperatives is at least equal to the 
percentage of funds made available pursuant to corresponding 
authorities in law for the activities of private and voluntary 
organizations and cooperatives in fiscal year 1995: Provided further, 
That none of the funds made available in this Act nor any unobligated 
balances from prior appropriations may be made available to any 
organization or program which, as determined by the President of the 
United States, supports or participates in the management of a program 
of coercive abortion or involuntary sterilization: Provided further, 
That none of the funds made available under this heading may be used to 
pay for the performance of abortion as a method of family planning or 
to motivate or coerce any person to practice abortions; and that in 
order to reduce reliance on abortion in developing nations, funds shall 
be available only to 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: Provided 
further, That in awarding grants for natural family planning under 
section 104 of the Foreign Assistance Act of 1961 no applicant shall be 
discriminated against because of such applicant's religious or 
conscientious commitment to offer only natural family planning; and, 
additionally, all such applicants shall comply with the requirements of 
the previous proviso: Provided further, That for purposes of this or 
any other Act authorizing or appropriating funds for foreign 
operations, export financing, and related programs, the term 
``motivate'', as it relates to family planning assistance, shall not be 
construed to prohibit the provision, consistent with local law, of 
information or counseling about all pregnancy options: Provided 
further, That nothing in this paragraph shall be construed to alter any 
existing statutory prohibitions against abortion under section 104 of 
the Foreign Assistance Act of 1961: Provided further, That, 
notwithstanding section 109 of the Foreign Assistance Act of 1961, of 
the funds appropriated under this heading not to exceed a total of 
$30,000,000 may be transferred to ``International Organizations and 
Programs'' for a contribution to the International Fund for 
Agricultural Development (IFAD), and that any such transfer of funds 
shall be subject to the regular notification procedures of the 
Committees on Appropriations: Provided further, That not less than 
$650,000 of the funds made available under this heading should be made 
available for support of the United States Telecommunications Training 
Institute.

                                 cyprus

    Of the funds appropriated under the headings ``Development 
Assistance'' and ``Economic Support Fund'', not less than $15,000,000 
shall be made available for Cyprus to be used only for scholarships, 
administrative support of the scholarship program, bicommunal projects, 
and measures aimed at reunification of the island and designed to 
reduce tensions and promote peace and cooperation between the two 
communities on Cyprus.

                                 burma

    Of the funds appropriated by this Act to carry out the provisions 
of chapter 8 of part I and chapter 4 of part II of the Foreign 
Assistance Act of 1961, not less than $2,380,000 shall be made 
available to support activities in Burma, along the Burma-Thailand 
border, and for activities of Burmese student groups and other 
organizations located outside Burma, for the purposes of fostering 
democracy in Burma, supporting the provision of medical supplies and 
other humanitarian assistance to Burmese located in Burma or displaced 
Burmese along the borders, and for other purposes: Provided, That of 
this amount, not less than $200,000 shall be made available to support 
newspapers, publications, and other media activities promoting 
democracy inside Burma: Provided further, That of this amount, not less 
than $380,000 shall be made available for crop substitution activities 
in cooperation with the Kachin people of Burma: Provided further, That 
funds made available under this heading may be made available 
notwithstanding any other provision of law: Provided further, That 
provision of such funds shall be made available subject to the regular 
notification procedures of the Committees on Appropriations.

                  private and voluntary organizations

    None of the funds appropriated or otherwise made available by this 
Act for development assistance may be made available to any United 
States private and voluntary organization, except any cooperative 
development organization, which obtains less than 20 per centum of its 
total annual funding for international activities from sources other 
than the United States Government: Provided, That the requirements of 
the provisions of section 123(g) of the Foreign Assistance Act of 1961 
and the provisions on private and voluntary organizations in title II 
of the ``Foreign Assistance and Related Programs Appropriations Act, 
1985'' (as enacted in Public Law 98-473) shall be superseded by the 
provisions of this section, except that the authority contained in the 
last sentence of section 123(g) may be exercised by the Administrator 
with regard to the requirements of this paragraph.
    Funds appropriated or otherwise made available under title II of 
this Act should be made available to private and voluntary 
organizations at a level which is equivalent to the level provided in 
fiscal year 1995. Such private and voluntary organizations shall 
include those which operate on a not-for-profit basis, receive 
contributions from private sources, receive voluntary support from the 
public and are deemed to be among the most cost-effective and 
successful providers of development assistance.

                   international disaster assistance

    For necessary expenses for international disaster relief, 
rehabilitation, and reconstruction assistance pursuant to section 491 
of the Foreign Assistance Act of 1961, as amended, $181,000,000, to 
remain available until expended.

            humanitarian assistance to the former yugoslavia

    Of the funds appropriated in title II of this Act, $40,000,000 
should be available only for emergency humanitarian assistance to the 
former Yugoslavia, of which amount not less than $6,000,000 shall be 
available only for humanitarian assistance to Kosova.

                           debt restructuring

    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, of modifying direct loans and loan guarantees, as the 
President may determine, for which funds have been appropriated or 
otherwise made available for programs within the International Affairs 
Budget Function 150, including the cost of selling, reducing, or 
canceling amounts, through debt buybacks and swaps, owed to the United 
States as a result of concessional loans made to eligible Latin 
American and Caribbean countries, pursuant to part IV of the Foreign 
Assistance Act of 1961, $10,000,000, to remain available until 
expended.

         micro and small enterprise development program account

    For the subsidy cost of direct loans and loan guarantees, 
$1,500,000, as authorized by section 108 of the Foreign Assistance Act 
of 1961, as amended: Provided, That such costs shall be as defined in 
section 502 of the Congressional Budget Act of 1974: Provided further, 
That guarantees of loans made under this heading in support of 
microenterprise activities may guarantee up to 70 percent of the 
principal amount of any such loans notwithstanding section 108 of the 
Foreign Assistance Act of 1961. In addition, for administrative 
expenses to carry out programs under this heading, $500,000, all of 
which may be transferred to and merged with the appropriation for 
Operating Expenses of the Agency for International Development: 
Provided further, That funds made available under this heading shall 
remain available until September 30, 1997.

                    housing guaranty program account

    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, of guaranteed loans authorized by sections 221 and 222 of 
the Foreign Assistance Act of 1961, $4,000,000, to remain available 
until September 30, 1997: Provided, That these funds are available to 
subsidize loan principal, 100 percent of which shall be guaranteed, 
pursuant to the authority of such sections. In addition, for 
administrative expenses to carry out guaranteed loan programs, 
$7,000,000, all of which may be transferred to and merged with the 
appropriation for Operating Expenses of the Agency for International 
Development: Provided further, That commitments to guarantee loans 
under this heading may be entered into notwithstanding the second and 
third sentences of section 222(a) and, with regard to programs for 
Eastern Europe and programs for the benefit of South Africans 
disadvantaged by apartheid, section 223(j) of the Foreign Assistance 
Act of 1961: Provided further, That none of the funds appropriated 
under this heading shall be obligated except through the regular 
notification procedures of the Committees on Appropriations.

     payment to the foreign service retirement and disability fund

    For payment to the ``Foreign Service Retirement and Disability 
Fund'', as authorized by the Foreign Service Act of 1980, $43,914,000.

     operating expenses of the agency for international development

    For necessary expenses to carry out the provisions of section 667, 
$465,750,000: Provided, That of this amount not more than $1,475,000 
may be made available to pay for printing costs: Provided further, That 
none of the funds appropriated by this Act for programs administered by 
the Agency for International Development (AID) may be used to finance 
printing costs of any report or study (except feasibility, design, or 
evaluation reports or studies) in excess of $25,000 without the 
approval of the Administrator of the Agency or the Administrator's 
designee: Provided further, That notwithstanding any other provision of 
law, none of the funds appropriated or otherwise made available by this 
Act may be made available for expenses necessary to relocate the Agency 
for International Development, or any part of that agency, to the 
building at the Federal Triangle in Washington, District of Columbia.

 operating expenses of the agency for international development office 
                          of inspector general

    For necessary expenses to carry out the provisions of section 667, 
$30,200,000, to remain available until September 30, 1997, which sum 
shall be available for the Office of the Inspector General of the 
Agency for International Development.

                  Other Bilateral Economic Assistance

                         economic support fund

    For necessary expenses to carry out the provisions of chapter 4 of 
part II, $2,340,000,000, to remain available until September 30, 1997: 
Provided, That of the funds appropriated under this heading, not less 
than $1,200,000,000 shall be available only for Israel, which sum shall 
be available on a grant basis as a cash transfer and shall be disbursed 
within thirty days of enactment of this Act or by October 31, 1995, 
whichever is later: Provided further, That not less than $815,000,000 
shall be available only for Egypt, which sum shall be provided on a 
grant basis, and of which sum cash transfer assistance may be provided, 
with the understanding that Eygpt will undertake significant economic 
reforms which are additional to those which were undertaken in previous 
fiscal years, and of which not less than $200,000,000 shall be provided 
as Commodity Import Program assistance: Provided further, That the 
Egyptian pound equivalent of $85,000,000 generated from funds made 
available by this paragraph or generated from funds appropriated under 
this heading in prior appropriations Acts, may be made available to the 
United States pursuant to the United States-Egypt Economic, Technical 
and Related Assistance Agreements of 1978, for the following activities 
under such Agreements: the Egyptian pound equivalent of $50,000,000 may 
be made available to replenish the existing endowment for the American 
University in Cairo, and the Egyptian pound equivalent of $35,000,000 
may be made available for projects and programs, including 
establishment of an endowment, which promote the preservation and 
restoration of Egyptian antiquities: Provided further, That in 
exercising the authority to provide cash transfer assistance for Israel 
and Egypt, the President shall ensure that the level of such assistance 
does not cause an adverse impact on the total level of non-military 
exports from the United States to each such country: Provided further, 
That it is the sense of the Congress that the recommended levels of 
assistance for Egypt and Israel are based in great measure upon their 
continued participation in the Camp David Accords and upon the 
Egyptian-Israeli peace treaty: Provided further, That none of the funds 
appropriated under this heading shall be made available for Zaire.

                     international fund for ireland

    For necessary expenses to carry out the provisions of part I of the 
Foreign Assistance Act of 1961, up to $19,600,000, which shall be 
available for the United States contribution to the International Fund 
for Ireland and shall be made available in accordance with the 
provisions of the Anglo-Irish Agreement Support Act of 1986 (Public Law 
99-415): Provided, That such amount shall be expended at the minimum 
rate necessary to make timely payment for projects and activities: 
Provided further, That funds made available under this heading shall 
remain available until September 30, 1997.

          assistance for eastern europe and the baltic states

    (a) For necessary expenses to carry out the provisions of the 
Foreign Assistance Act of 1961 and the Support for East European 
Democracy (SEED) Act of 1989, $324,000,000, to remain available until 
September 30, 1997, which shall be available, notwithstanding any other 
provision of law, for economic assistance and for related programs for 
Eastern Europe and the Baltic States.
    (b) Funds appropriated under this heading or in prior 
appropriations Acts that are or have been made available for an 
Enterprise Fund may be deposited by such Fund in interest-bearing 
accounts prior to the Fund's disbursement of such funds for program 
purposes. The Fund may retain for such program purposes any interest 
earned on such deposits without returning such interest to the Treasury 
of the United States and without further appropriation by the Congress. 
Funds made available for Enterprise Funds shall be expended at the 
minimum rate necessary to make timely payment for projects and 
activities.
    (c) Funds appropriated under this heading shall be considered to be 
economic assistance under the Foreign Assistance Act of 1961 for 
purposes of making available the administrative authorities contained 
in that Act for the use of economic assistance.

  assistance for the new independent states of the former soviet union

    (a) For necessary expenses to carry out the provisions of chapter 
11 of part I of the Foreign Assistance Act of 1961 and the FREEDOM 
Support Act, for assistance for the new independent states of the 
former Soviet Union and for related programs, $641,000,000, to remain 
available until September 30, 1997: Provided, That the provisions of 
498B(j) of the Foreign Assistance Act of 1961 shall apply to funds 
appropriated by this paragraph.
    (b) None of the funds appropriated under this heading shall be 
transferred to the Government of Russia--
            (1) unless that Government is making progress in 
        implementing comprehensive economic reforms based on market 
        principles, private ownership, negotiating repayment of 
        commercial debt, respect for commercial contracts, and 
        equitable treatment of foreign private investment; and
            (2) if that Government applies or transfers United States 
        assistance to any entity for the purpose of expropriating or 
        seizing ownership or control of assets, investments, or 
        ventures.
    (c) Funds may be furnished without regard to subsection (b) if the 
President determines that to do so is in the national interest.
    (d) None of the funds appropriated under this heading shall be made 
available to any government of the new independent states of the former 
Soviet Union if that government directs any action in violation of the 
territorial integrity or national sovereignty of any other new 
independent state, such as those violations included in the Helsinki 
Final Act: Provided, That such funds may be made available without 
regard to the restriction in this subsection if the President 
determines that to do so is in the national security interest of the 
United States: Provided further, That the restriction of this 
subsection shall not apply to the use of such funds for the provision 
of assistance for purposes of humanitarian, disaster and refugee 
relief.
    (e) None of the funds appropriated under this heading for the new 
independent states of the former Soviet Union shall be made available 
for any state to enhance its military capability: Provided, That this 
restriction does not apply to demilitarization or nonproliferation 
programs.
    (f) Funds appropriated under this heading shall be subject to the 
regular notification procedures of the Committees on Appropriations.
    (g) Funds made available in this Act for assistance to the new 
independent states of the former Soviet Union shall be subject to the 
provisions of section 117 (relating to environment and natural 
resources) of the Foreign Assistance Act of 1961.
    (h) Funds appropriated under this heading may be made available for 
assistance for Mongolia.
    (i) Funds made available in this Act for assistance to the new 
independent states of the former Soviet Union shall be provided to the 
maximum extent feasible through the private sector, including small- 
and medium-size businesses, entrepreneurs, and others with indigenous 
private enterprises in the region, intermediary development 
organizations committed to private enterprise, and private voluntary 
organizations: Provided, That grantees and contractors should, to the 
maximum extent possible, place in key staff positions specialists with 
prior on the ground expertise in the region of activity and fluency in 
one of the local languages.
    (j) In issuing new task orders, entering into contracts, or making 
grants, with funds appropriated under this heading or in prior 
appropriations Acts, for projects or activities that have as one of 
their primary purposes the fostering of private sector development, the 
Coordinator for United States Assistance to the New Independent States 
and the implementing agency shall encourage the participation of and 
give significant weight to contractors and grantees who propose 
investing a significant amount of their own resources (including 
volunteer services and in-kind contributions) in such projects and 
activities.
    (k) Of the funds made available under this heading, not less than 
$225,000,000 shall be made available for Ukraine, with the 
understanding that Ukraine will undertake significant economic reforms 
which are additional to those which were undertaken in previous fiscal 
years, and of which not less than $50,000,000 (from this or any other 
Act) shall be made available to improve energy self-sufficiency and 
improve safety at nuclear reactors, and of which $2,000,000 should be 
made available to conduct or implement an assessment of the energy 
distribution grid that provides recommendations leading to increased 
access to power by industrial, commercial and residential users, and of 
which not less than $22,000,000 shall be made available to support the 
development of small and medium enterprises, including independent 
broadcast and print media.
    (l) Of the funds made available under this heading, $5,000,000 
should be made available for a project to screen, diagnose, and treat 
victims of breast cancer associated with the 1985 incident at the 
Chernobyl reactor in Ukraine.
    (m) Of the funds made available by this Act, not less than 
$85,000,000 shall be made available for Armenia.
    (n) Of the funds made available by this or any other Act, 
$30,000,000 should be made available for Georgia.
    (o)(1) Effective ninety days after the date of enactment of this 
Act, none of the funds appropriated under this heading may be made 
available for Russia unless the President determines and certifies in 
writing to the Committees on Appropriations that the Government of 
Russia has terminated implementation of arrangements to provide Iran 
with technical expertise, training, technology, or equipment necessary 
to develop a nuclear reactor or related nuclear research facilities or 
programs.
    (2) Subparagraph (1) shall not apply if the President determines 
that making such funds available is important to the national security 
interest of the United States. Any such determination shall cease to be 
effective six months after being made unless the President determines 
that its continuation is important to the national security interest of 
the United States.
    (p) Of the funds appropriated under this heading, $20,000,000 
should be provided for hospital partnership programs, medical 
assistance to directly reduce the incidence of infectious diseases such 
as diphtheria or tuberculosis, and a program to reduce the adverse 
impact of contaminated drinking water.
    (q) Of the funds appropriated under this heading and under the 
heading ``Assistance for Eastern Europe and the Baltic States'', not 
less than $12,600,000 shall be made available for law enforcement 
training and exchanges, and investigative and technical assistance 
activities related to international criminal activities.
    (r) Support should be provided from funds appropriated under this 
heading for a ballot security project to promote public review by 
Russian citizens over the conduct of parliamentary and presidential 
elections in Russia: Provided, That the Secretary of State may waive 
this provision with regard to any election upon notification to the 
Committees on Appropriations that the Government of Russia has blocked 
implementation of a ballot security project.
    (s) Of the funds appropriated under this heading, not less than 
$50,000,000 should be provided to the Western NIS and Central Asian 
Enterprise Funds: Provided, That obligation of these funds shall be 
consistent with sound business practices.
    (t) The President shall establish a Trans-Caucasus Enterprise Fund 
to encourage regional peace through economic cooperation: Provided, 
That the President shall seek other bilateral and multilateral 
investors in the Fund: Provided further, That of the funds made 
available under this heading, not less than $15,000,000 shall be made 
available for a United States investment in the Trans-Caucasus 
Enterprise Fund.
    (u) Funds appropriated under this heading or in prior 
appropriations Acts that are or have been made available for an 
Enterprise Fund may be deposited by such Fund in interest-bearing 
accounts prior to the disbursement of such funds by the Fund for 
program purposes. The Fund may retain for such program proposes any 
interest earned on such deposits without returning such interest to the 
Treasury of the United States and without further appropriation by the 
Congress. Funds made available for Enterprise Funds shall be expended 
at the minimum rate necessary to make timely payment for projects and 
activities.
    (v) Section 5421(d)(3)(B) of title 22, United States Code, is 
amended by adding at the end thereof the following: ``: Provided, That, 
as to Enterprise Funds established with respect to more than one host 
country, such Enterprise Fund may, in lieu of the appointment of 
citizens of the host countries to its Board of Directors, establish an 
advisory council for the host region comprised of citizens of each of 
the host countries or establish separate advisory councils for each of 
the host countries (hereinafter in this section referred to as the 
`Advisory Councils'), with which the Enterprise Fund's policies and 
proposed activities and such host country citizens shall satisfy the 
experience and expertise requirements of this clause.''.
    (w) Notwithstanding any other provision of law, assistance may be 
provided for the Government of Azerbaijan for humanitarian purposes, if 
the President determines that humanitarian assistance provided in 
Azerbaijan through nongovernmental organizations is not adequately 
addressing the suffering of refugees and internally displaced persons.

                           Independent Agency

                              peace corps

    For expenses necessary to carry out the provisions of the Peace 
Corps Act (75 Stat. 612), $205,000,000, including the purchase of not 
to exceed five passenger motor vehicles for administrative purposes for 
use outside of the United States: Provided, That none of the funds 
appropriated under this heading shall be used to pay for abortions: 
Provided further, That funds appropriated under this heading shall 
remain available until September 30, 1997.

                          Department of State

                    international narcotics control

    For necessary expenses to carry out the provisions of section 481 
of the Foreign Assistance Act of 1961, $115,000,000: Provided, That 
during fiscal year 1996, the Department of State may also use the 
authority of section 608 of the Foreign Assistance Act of 1961, without 
regard to its restrictions, to receive non-lethal excess property from 
an agency of the United States Government for the purpose of providing 
it to a foreign country under chapter 8 of part I of that Act subject 
to the regular notification procedures of the Committees on 
Appropriations.

                    migration and refugee assistance

    For expenses, not otherwise provided for, necessary to enable the 
Secretary of State to provide, as authorized by law, a contribution to 
the International Committee of the Red Cross, assistance to refugees, 
including contributions to the International Organization for Migration 
and the United Nations High Commissioner for Refugees, and other 
activities to meet refugee and migration needs; salaries and expenses 
of personnel and dependents as authorized by the Foreign Service Act of 
1980; allowances as authorized by sections 5921 through 5925 of title 
5, United States Code; purchase and hire of passenger motor vehicles; 
and services as authorized by section 3109 of title 5, United States 
Code, $671,000,000: Provided, That not more than $12,000,000 shall be 
available for administrative expenses: Provided further, That not less 
than $80,000,000 shall be made available for refugees from the former 
Soviet Union and Eastern Europe and other refugees resettling in 
Israel.

                    refugee resettlement assistance

    For necessary expenses for the targeted assistance program 
authorized by title IV of the Immigration and Nationality Act and 
section 501 of the Refugee Education Assistance Act of 1980 and 
administered by the Office of Refugee Resettlement of the Department of 
Health and Human Services, in addition to amounts otherwise available 
for such purposes, $5,000,000.

     united states emergency refugee and migration assistance fund

    For necessary expenses to carry out the provisions of section 2(c) 
of the Migration and Refugee Assistance Act of 1962, as amended (22 
U.S.C. 260(c)), $50,000,000, to remain available until expended: 
Provided, That the funds made available under this heading are 
appropriated notwithstanding the provisions contained in section 
2(c)(2) of the Migration and Refugee Assistance Act of 1962 which would 
limit the amount of funds which could be appropriated for this purpose.

                       anti-terrorism assistance

    For necessary expenses to carry out the provisions of chapter 8 of 
part II of the Foreign Assistance Act of 1961, $16,000,000.

                 nonproliferation and disarmament fund

    For necessary expenses for a ``Nonproliferation and Disarmament 
Fund'', $20,000,000, to remain available until expended, to promote 
bilateral and multilateral activities: Provided, That such funds may be 
used pursuant to the authorities contained in section 504 of the 
FREEDOM Support Act: Provided further, That such funds may also be used 
for such countries other than the new independent states of the former 
Soviet Union and international organizations when it is in the national 
security interest of the United States to do so: Provided further, That 
funds appropriated under this heading may be made available 
notwithstanding any other provision of law: Provided further, That 
funds appropriated under this heading shall be subject to the regular 
notification procedures of the Committees on Appropriations.

                     TITLE III--MILITARY ASSISTANCE

                  Funds Appropriated to the President

             international military education and training

    For necessary expenses to carry out the provisions of section 541 
of the Foreign Assistance Act of 1961, $39,000,000: Provided, That up 
to $100,000 of the funds appropriated under this heading may be made 
available for grant financed military education and training for any 
high income country on the condition that that country agrees to fund 
from its own resources the transportation cost and living allowances of 
its students: Provided further, That the civilian personnel for whom 
military education and training may be provided under this heading may 
also include members of national legislatures who are responsible for 
the oversight and management of the military, and may also include 
individuals who are not members of a government: Provided further, That 
none of the funds appropriated under this heading shall be available 
for Zaire and Guatemala: Provided further, That funds appropriated 
under this heading for grant financed military education and training 
for Indonesia may only be available for expanded military education and 
training.

                   foreign military financing program

    For expenses necessary for grants to enable the President to carry 
out the provisions of section 23 of the Arms Export Control Act, 
$3,208,390,000: Provided, That of the funds appropriated by this 
paragraph not less than $1,800,000,000 shall be available for grants 
only for Israel, and not less than $1,300,000,000 shall be available 
for grants only for Egypt: Provided further, That the funds 
appropriated by this paragraph for Israel shall be disbursed within 
thirty days of enactment of this Act or by October 31, 1995, whichever 
is later: Provided further, That to the extent that the Government of 
Israel requests that funds be used for such purposes, grants made 
available for Israel by this paragraph shall, as agreed by Israel and 
the United States, be available for advanced weapons systems, of which 
not less than $475,000,000 shall be available for the procurement in 
Israel of defense articles and defense services, including research and 
development: Provided further, That funds made available under this 
paragraph shall be nonrepayable notwithstanding any requirement in 
section 23 of the Arms Export Control Act: Provided further, That, for 
the purpose only of providing support for the Warsaw Initiative 
Program, of the funds appropriated by this Act under the headings 
``Assistance for Eastern Europe and the Baltic States'' and 
``Assistance for the New Independent States of the Former Soviet 
Union'', up to a total of $20,000,000 may be transferred, 
notwithstanding any other provision of law, to the funds appropriated 
under this paragraph: Provided further, That none of the funds made 
available under this heading shall be available for any non-NATO 
country participating in the Partnership for Peace Program except 
through the regular notification procedures of the Committees on 
Appropriations.
    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, of direct loans authorized by section 23 of the Arms 
Export Control Act as follows: cost of direct loans, $64,400,000: 
Provided, That these funds are available to subsidize gross obligations 
for the principal amount of direct loans of not to exceed $544,000,000: 
Provided further, That the rate of interest charged on such loans shall 
be not less than the current average market yield on outstanding 
marketable obligations of the United States of comparable maturities: 
Provided further, That funds appropriated under this heading shall be 
made available for Greece and Turkey only on a loan basis, and the 
principal amount of direct loans for each country shall not exceed the 
following: $224,000,000 only for Greece and $320,000,000 only for 
Turkey.
    None of the funds made available under this heading shall be 
available to finance the procurement of defense articles, defense 
services, or design and construction services that are not sold by the 
United States Government under the Arms Export Control Act unless the 
foreign country proposing to make such procurements has first signed an 
agreement with the United States Government specifying the conditions 
under which such procurements may be financed with such funds: 
Provided, That all country and funding level increases in allocations 
shall be submitted through the regular notification procedures of 
section 515 of this Act: Provided further, That funds made available 
under this heading shall be obligated upon apportionment in accordance 
with paragraph (5)(C) of title 31, United States Code, section 1501(a): 
Provided further, That none of the funds appropriated under this 
heading shall be available for Zaire, Sudan, Peru, Liberia, and 
Guatemala: Provided further, That none of the funds appropriated or 
otherwise made available for use under this heading may be made 
available for Colombia or Bolivia until the Secretary of State 
certifies that such funds will be used by such country primarily for 
counternarcotics activities: Provided further, That funds made 
available under this heading may be used, notwithstanding any other 
provision of law, for demining activities, and may include activities 
implemented through nongovernmental and international organizations: 
Provided further, That not more than $100,000,000 of the funds made 
available under this heading shall be available for use in financing 
the procurement of defense articles, defense services, or design and 
construction services that are not sold by the United States Government 
under the Arms Export Control Act to countries other than Israel and 
Egypt: Provided further, That only those countries for which assistance 
was justified for the ``Foreign Military Sales Financing Program'' in 
the fiscal year 1989 congressional presentation for security assistance 
programs may utilize funds made available under this heading for 
procurement of defense articles, defense services or design and 
construction services that are not sold by the United States Government 
under the Arms Export Control Act: Provided further, That, subject to 
the regular notification procedures of the Committees on 
Appropriations, funds made available under this heading for the cost of 
direct loans may also be used to supplement the funds available under 
this heading for grants, and funds made available under this heading 
for grants may also be used to supplement the funds available under 
this heading for the cost of direct loans: Provided further, That funds 
appropriated under this heading shall be expended at the minimum rate 
necessary to make timely payment for defense articles and services: 
Provided further, That the Department of Defense shall conduct during 
the current fiscal year nonreimbursable audits of private firms whose 
contracts are made directly with foreign governments and are financed 
with funds made available under this heading (as well as subcontractors 
thereunder) as requested by the Defense Security Assistance Agency: 
Provided further, That not more than $23,250,000 of the funds 
appropriated under this heading may be obligated for necessary 
expenses, including the purchase of passenger motor vehicles for 
replacement only for use outside of the United States, for the general 
costs of administering military assistance and sales: Provided further, 
That not more than $355,000,000 of funds realized pursuant to section 
21(e)(1)(A) of the Arms Export Control Act may be obligated for 
expenses incurred by the Department of Defense during fiscal year 1996 
pursuant to section 43(b) of the Arms Export Control Act, except that 
this limitation may be exceeded only through the regular notification 
procedures of the Committees on Appropriations.

                        peacekeeping operations

    For necessary expenses to carry out the provisions of section 551 
of the Foreign Assistance Act of 1961, $70,000,000: Provided, That none 
of the funds appropriated under this paragraph shall be obligated or 
expended except as provided through the regular notification procedures 
of the Committees on Appropriations.

               TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE

                  funds appropriated to the president

                  International Financial Institutions

     contribution to the international bank for reconstruction and 
                              development

    For payment to the International Bank for Reconstruction and 
Development by the Secretary of the Treasury, for the United States 
share of the paid-in share portion of the increases in capital stock 
for the General Capital Increase, $28,189,963, to remain available 
until expended: Provided, That not more than twenty-one days prior to 
the obligation of each such sum, the Secretary shall submit a 
certification to the Committees on Appropriations that the Bank has not 
approved any loans to Iran since October 1, 1994, or the President of 
the United States certifies that withholding of these funds is contrary 
to the national interest of the United States.
    For payment to the International Bank for Reconstruction and 
Development by the Secretary of the Treasury, for the United States 
contribution to the Global Environment Facility (GEF), $35,000,000, to 
remain available until September 30, 1997.

              limitation on callable capital subscriptions

    The United States Governor of the International Bank for 
Reconstruction and Development may subscribe without fiscal year 
limitation to the callable capital portion of the United States share 
of increases in capital stock in an amount not to exceed $911,475,013.

       contribution to the international development association

    For payment to the International Development Association by the 
Secretary of the Treasury, $700,000,000, for the United States 
contribution to the tenth replenishment, to remain available until 
expended.

         contribution to the international finance corporation

    For payment to the International Finance Corporation by the 
Secretary of the Treasury, $60,900,000, for the United States share of 
the increase in subscriptions to capital stock, to remain available 
until expended: Provided, That of the amount appropriated under this 
heading not more than $5,269,000 may be expended for the purchase of 
such stock in fiscal year 1996.

          contribution to the inter-american development bank

    For payment to the Inter-American Development Bank by the Secretary 
of the Treasury, for the United States share of the paid-in share 
portion of the increase in capital stock, $25,952,110, and for the 
United States share of the increase in the resources of the Fund for 
Special Operations, $10,000,000, to remain available until expended.

              limitation on callable capital subscriptions

    The United States Governor of the Inter-American Development Bank 
may subscribe without fiscal year limitation to the callable capital 
portion of the United States share of such capital stock in an amount 
not to exceed $1,523,767,142.

contribution to the enterprise for the americas multilateral investment 
                                  fund

    For payment to the Enterprise for the Americas Multilateral 
Investment Fund by the Secretary of the Treasury, for the United States 
contribution to the Fund to be administered by the Inter-American 
Development Bank, $53,750,000 to remain available until expended.

               contribution to the asian development bank

    For payment to the Asian Development Bank by the Secretary of the 
Treasury for the United States share of the paid-in portion of the 
increase in capital stock, $13,221,596, to remain available until 
expended.

              limitation on callable capital subscriptions

    The United States Governor of the Asian Development Bank may 
subscribe without fiscal year limitation to the callable capital 
portion of the United States share of such capital stock in an amount 
not to exceed $647,858,204.

               contribution to the asian development fund

    For the United States contribution by the Secretary of the Treasury 
to the increases in resources of the Asian Development Fund, as 
authorized by the Asian Development Bank Act, as amended (Public Law 
89-369), $100,000,000, to remain available until expended.

  contribution to the european bank for reconstruction and development

    For payment to the European Bank for Reconstruction and Development 
by the Secretary of the Treasury, $70,000,000, for the United States 
share of the paid-in share portion of the initial capital subscription, 
to remain available until expended: Provided, That of the amount 
appropriated under this heading not more than $54,600,000 may be 
expended for the purchase of such stock in fiscal year 1996.

              limitation on callable capital subscriptions

    The United States Governor of the European Bank for Reconstruction 
and Development may subscribe without fiscal year limitation to the 
callable capital portion of the United States share of such capital 
stock in an amount not to exceed $163,333,333.

                    North American Development Bank

    For payment to the North American Development Bank by the Secretary 
of the Treasury, for the United States share of the paid-in portion of 
the capital stock, $56,250,000, to remain available until expended.

              limitation on callable capital subscriptions

    The United States Governor of the North American Development Bank 
may subscribe without fiscal year limitation to the callable capital 
portion of the United States share of the capital stock of the North 
American Development Bank in an amount not to exceed $318,750,000.

                international organizations and programs

    For necessary expenses to carry out the provisions of section 301 
of the Foreign Assistance Act of 1961, and of section 2 of the United 
Nations Environment Program Participation Act of 1973, $285,000,000: 
Provided, That none of the funds appropriated under this heading shall 
be made available for the United Nations Fund for Science and 
Technology: Provided further, That funds appropriated under this 
heading may be made available for the International Atomic Energy 
Agency only if the Secretary of State determines (and so reports to the 
Congress) that Israel is not being denied its right to participate in 
the activities of that Agency: Provided further, That none of the funds 
appropriated under this heading that are made available to the United 
Nations Population Fund (UNFPA) shall be made available for activities 
in the People's Republic of China: Provided further, That not more than 
$30,000,000 of the funds appropriated under this heading may be made 
available to the UNFPA: Provided further, That not more than one-half 
of this amount may be provided to UNFPA before March 1, 1996, and that 
no later than February 15, 1996, the Secretary of State shall submit a 
report to the Committees on Appropriations indicating the amount UNFPA 
is budgeting for the People's Republic of China in 1996: Provided 
further, That any amount UNFPA plans to spend in the People's Republic 
of China in 1996 above $7,000,000, shall be deducted from the amount of 
funds provided to UNFPA after March 1, 1996 pursuant to the previous 
provisos: Provided further, That with respect to any funds appropriated 
under this heading that are made available to UNFPA, UNFPA shall be 
required to maintain such funds in a separate account and not commingle 
them with any other funds: Provided further, That funds may be made 
available to the Korean Peninsula Energy Development Organization 
(KEDO) for administrative expenses and heavy fuel oil costs associated 
with the Agreed Framework: Provided further, That no funds may be 
provided for KEDO for funding for administrative expenses and heavy 
fuel oil costs beyond the total amount included for KEDO in the fiscal 
year 1996 congressional presentation: Provided further, That no funds 
may be made available under this Act to KEDO unless the President 
determines and certifies in writing to the Committees on Appropriations 
that (a) in accordance with section 1 of the Agreed Framework, KEDO has 
designated a Republic of Korea company, corporation or entity for the 
purpose of negotiating a prime contract to carry out construction of 
the light water reactors provided for in the Agreed Framework; and (b) 
the Democratic People's Republic of Korea is maintaining the freeze on 
its nuclear facilities as required in the Agreed Framework; and (c) the 
United States is taking steps to assure that progress is made on (1) 
the North-South dialogue, including efforts to reduce barriers to trade 
and investment, such as removing restrictions on travel, 
telecommunications services and financial transactions; and (2) 
implementation of the January 1, 1992, Joint Declaration on the 
Denuclearization of the Korean Peninsula: Provided further, That a 
report on the specific efforts with regard to subsections (a), (b) and 
(c) of the preceding proviso shall be submitted by the President to the 
Committees on Appropriations six months after the date of enactment of 
this Act, and every six months thereafter.

                      TITLE V--GENERAL PROVISIONS

             obligations during last month of availability

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

     prohibition of bilateral funding for international financial 
                              institutions

    Sec. 502. None of the funds contained in title II of this Act may 
be used to carry out the provisions of section 209(d) of the Foreign 
Assistance Act of 1961.

                    limitation on residence expenses

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

                         limitation on expenses

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

               limitation on representational allowances

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

                 prohibition on financing nuclear goods

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

        prohibition against direct funding for certain countries

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

                             military coups

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

                       transfers between accounts

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

                  deobligation/reobligation authority

    Sec. 510. (a) Amounts certified pursuant to section 1311 of the 
Supplemental Appropriations Act, 1955, as having been obligated against 
appropriations heretofore made under the authority of the Foreign 
Assistance Act of 1961 for the same general purpose as any of the 
headings under title II of this Act are, if deobligated, hereby 
continued available for the same period as the respective 
appropriations under such headings or until September 30, 1996, 
whichever is later, and for the same general purpose, and for countries 
within the same region as originally obligated: Provided, That the 
Appropriations Committees of both Houses of the Congress are notified 
fifteen days in advance of the deobligation and reobligation of such 
funds in accordance with regular notification procedures of the 
Committees on Appropriations.
    (b) Obligated balances of funds appropriated to carry out section 
23 of the Arms Export Control Act as of the end of the fiscal year 
immediately preceding the current fiscal year are, if deobligated, 
hereby continued available during the current fiscal year for the same 
purpose under any authority applicable to such appropriations under 
this Act: Provided, That the authority of this subsection may not be 
used in fiscal year 1996.

                         availability of funds

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

            limitation on assistance to countries in default

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

                           commerce and trade

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

                          surplus commodities

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

                       notification requirements

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

limitation on availability of funds for international organizations and 
                                programs

    Sec. 516. Notwithstanding any other provision of law or of this 
Act, none of the funds provided for ``International Organizations and 
Programs'' shall be available for the United States proportionate 
share, in accordance with section 307(c) of the Foreign Assistance Act 
of 1961, for any programs identified in section 307, or for Libya, 
Iran, or, at the discretion of the President, Communist countries 
listed in section 620(f) of the Foreign Assistance Act of 1961, as 
amended: Provided, That, subject to the regular notification procedures 
of the Committees on Appropriations, funds appropriated under this Act 
or any previously enacted Act making appropriations for foreign 
operations, export financing, and related programs, which are returned 
or not made available for organizations and programs because of the 
implementation of this section or any similar provision of law, shall 
remain available for obligation through September 30, 1997.

              economic support fund assistance for israel

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

   prohibition on funding for abortions and involuntary sterilization

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

                         reporting requirement

    Sec. 519. The President shall submit to the Committees on 
Appropriations the reports required by section 25(a)(1) of the Arms 
Export Control Act.

                   special notification requirements

    Sec. 520. None of the funds appropriated in this Act shall be 
obligated or expended for Colombia, Dominican Republic, Guatemala, 
Haiti, Liberia, Nicaragua, Peru, Russia, Sudan, or Zaire except as 
provided through the regular notification procedures of the Committees 
on Appropriations: Provided, That this section shall not apply to funds 
appropriated by this Act to carry out the provisions of chapter 1 of 
part I of the Foreign Assistance Act of 1961 that are made available 
for Nicaragua.

              definition of program, project, and activity

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

                   child survival and aids activities

    Sec. 522. Up to $8,000,000 of the funds made available by this Act 
for assistance for family planning, health, child survival, and AIDS, 
may be used to reimburse United States Government agencies, agencies of 
State governments, institutions of higher learning, and private and 
voluntary organizations for the full cost of individuals (including for 
the personal services of such individuals) detailed or assigned to, or 
contracted by, as the case may be, the Agency for International 
Development for the purpose of carrying out family planning activities, 
child survival activities and activities relating to research on, and 
the treatment and control of, acquired immune deficiency syndrome in 
developing countries: Provided, That funds appropriated by this Act 
that are made available for child survival activities or activities 
relating to research on, and the treatment and control of, acquired 
immune deficiency syndrome may be made available notwithstanding any 
provision of law that restricts assistance to foreign countries: 
Provided further, That funds appropriated by this Act that are made 
available for family planning activities may be made available 
notwithstanding section 512 of this Act and section 620(q) of the 
Foreign Assistance Act of 1961.

       prohibition against indirect funding to certain countries

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

                           reciprocal leasing

    Sec. 524. Section 61(a) of the Arms Export Control Act is amended 
by striking out ``1995'' and inserting in lieu thereof ``1996''.

                notification on excess defense equipment

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

                       authorization requirement

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

   opposition to assistance to terrorist countries by international 
                         financial institutions

    Sec. 527. (a) Instructions for United States Executive Directors.--
The Secretary of the Treasury shall instruct the United States 
Executive Director of each international financial institution 
designated in subsection (b), and the Administrator of the Agency for 
International Development shall instruct the United States Executive 
Director of the International Fund for Agriculture Development, to use 
the voice and vote of the United States to oppose any loan or other use 
of the funds of the respective institution to or for a country for 
which the Secretary of State has made a determination under section 
6(j) of the Export Administration Act of 1979.
    (b) Definition.--For purposes of this section, the term 
``international financial institution'' includes--
            (1) the International Bank for Reconstruction and 
        Development, the International Development Association, and the 
        International Monetary Fund; and
            (2) wherever applicable, the Inter-American Development 
        Bank, the Asian Development Bank, the African Development Bank, 
        the African Development Fund, and the European Bank for 
        Reconstruction and Development.

       prohibition on bilateral assistance to terrorist countries

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

                 commercial leasing of defense articles

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

                         competitive insurance

    Sec. 528A. All Agency for International Development contracts and 
solicitations, and subcontracts entered into under such contracts, 
shall include a clause requiring that United States insurance companies 
have a fair opportunity to bid for insurance when such insurance is 
necessary or appropriate.

                  stingers in the persian gulf region

    Sec. 529. Except as provided in section 581 of the Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1990, the United States may not sell or otherwise make available any 
Stingers to any country bordering the Persian Gulf under the Arms 
Export Control Act or chapter 2 of part II of the Foreign Assistance 
Act of 1961.

                          debt-for-development

    Sec. 530. In order to enhance the continued participation of 
nongovernmental organizations in economic assistance activities under 
the Foreign Assistance Act of 1961, including endowments, debt-for-
development and debt-for-nature exchanges, a nongovernmental 
organization which is a grantee or contractor of the Agency for 
International Development may place in interest bearing accounts funds 
made available under this Act or prior Acts or local currencies which 
accrue to that organization as a result of economic assistance provided 
under title II of this Act and any interest earned on such investment 
may be used for the purpose for which the assistance was provided to 
that organization.

           competitive pricing for sales of defense articles

    Sec. 531A. (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 for 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.
    (c) Direct Costs Allowable.--Direct costs associated with meeting a 
foreign customer's additional or unique requirements will continue to 
be allowable under such contracts. Loadings applicable to such direct 
costs shall be permitted at the same rates applicable to procurement of 
like items purchased by the Department of Defense for its own use.

                     stockpiles of defense articles

    Sec. 531B. (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 Authorities.--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.''.

                           separate accounts

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

  compensation for united states executive directors to international 
                         financial institutions

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

         compliance with united nations sanctions against iraq

    Sec. 534. (a) Denial of Assistance.--None of the funds appropriated 
or otherwise made available pursuant to this Act to carry out the 
Foreign Assistance Act of 1961 (including title IV of chapter 2 of part 
I, relating to the Overseas Private Investment Corporation) or the Arms 
Export Control Act may be used to provide assistance to any country 
that is not in compliance with the United Nations Security Council 
sanctions against Iraq, Serbia or Montenegro unless the President 
determines and so certifies to the Congress that--
            (1) such assistance is in the national interest of the 
        United States;
            (2) such assistance will directly benefit the needy people 
        in that country; or
            (3) the assistance to be provided will be humanitarian 
        assistance for foreign nationals who have fled Iraq and Kuwait.
    (b) Import Sanctions.--If the President considers that the taking 
of such action would promote the effectiveness of the economic 
sanctions of the United Nations and the United States imposed with 
respect to Iraq, Serbia, or Montenegro, as the case may be, and is 
consistent with the national interest, the President may prohibit, for 
such a period of time as he considers appropriate, the importation into 
the United States of any or all products of any foreign country that 
has not prohibited--
            (1) the importation of products of Iraq, Serbia, or 
        Montenegro into its customs territory, and
            (2) the export of its products to Iraq, Serbia, or 
        Montenegro, as the case may be.

                       pow/mia military drawdown

    Sec. 535. (a) Notwithstanding any other provision of law, the 
President may direct the drawdown, without reimbursement by the 
recipient, of defense articles from the stocks of the Department of 
Defense, defense services of the Department of Defense, and military 
education and training, of an aggregate value not to exceed $15,000,000 
in fiscal year 1996, as may be necessary to carry out subsection (b).
    (b) Such defense articles, services and training may be provided to 
Vietnam, Cambodia and Laos, under subsection (a) as the President 
determines are necessary to support efforts to locate and repatriate 
members of the United States Armed Forces and civilians employed 
directly or indirectly by the United States Government who remain 
unaccounted for from the Vietnam War, and to ensure the safety of 
United States Government personnel engaged in such cooperative efforts 
and to support United States Department of Defense-sponsored 
humanitarian projects associated with the POW/MIA efforts. Any aircraft 
shall be provided under this section only to Laos and only on a lease 
or loan basis, but may be provided at no cost notwithstanding section 
61 of the Arms Export Control Act and may be maintained with defense 
articles, services and training provided under this section.
    (c) The President shall, within sixty days of the end of any fiscal 
year in which the authority of subsection (a) is exercised, submit a 
report to the Congress which identifies the articles, services, and 
training drawn down under this section.

                 mediterranean excess defense articles

    Sec. 536. During fiscal year 1996, the provisions of section 573(e) 
of the Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1990, shall be applicable, for the period specified 
therein, to excess defense articles made available under sections 516 
and 519 of the Foreign Assistance Act of 1961.

                          cash flow financing

    Sec. 537. For each country that has been approved for cash flow 
financing (as defined in section 25(d) of the Arms Export Control Act, 
as added by section 112(b) of Public Law 99-83) under the Foreign 
Military Financing Program, any Letter of Offer and Acceptance or other 
purchase agreement, or any amendment thereto, for a procurement in 
excess of $100,000,000 that is to be financed in whole or in part with 
funds made available under this Act shall be submitted through the 
regular notification procedures to the Committees on Appropriations.

authorities for the peace corps, the inter-american foundation and the 
                     african development foundation

    Sec. 538. Unless expressly provided to the contrary, provisions of 
this or any other Act, including provisions contained in prior Acts 
authorizing or making appropriations for foreign operations, export 
financing, and related programs, shall not be construed to prohibit 
activities authorized by or conducted under the Peace Corps Act, the 
Inter-American Foundation Act, or the African Development Foundation 
Act. The appropriate agency shall promptly report to the Committees on 
Appropriations whenever it is conducting activities or is proposing to 
conduct activities in a country for which assistance is prohibited.

                  impact on jobs in the united states

    Sec. 539. None of the funds appropriated by this Act may be 
obligated or expended to provide--
            (a) any financial incentive to a business enterprise 
        currently located in the United States for the purpose of 
        inducing such an enterprise to relocate outside the United 
        States if such incentive or inducement is likely to reduce the 
        number of employees of such business enterprise in the United 
        States because United States production is being replaced by 
        such enterprise outside the United States;
            (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) assistance for any project or activity that contributes 
        to the violation of internationally recognized workers rights, 
        as defined in section 502(a)(4) of the Trade Act of 1974, of 
        workers in the recipient country, including any designated zone 
        or area in that country: Provided, That in recognition that the 
        application of this subsection should be commensurate with the 
        level of development of the recipient country and sector, the 
        provisions of this subsection shall not preclude assistance for 
        the informal sector in such country, micro and small-scale 
        enterprise, and smallholder agriculture.

                 authority to assist bosnia-hercegovina

    Sec. 540. (a) Congress finds as follows:
            (1) The United Nations has imposed an embargo on the 
        transfer of arms to any country on the territory of the former 
        Yugoslavia.
            (2) The federated states of Serbia and Montenegro have a 
        large supply of military equipment and ammunition and the 
        Serbian forces fighting the government of Bosnia-Hercegovina 
        have more than one thousand battle tanks, armored vehicles, and 
        artillery pieces.
            (3) Because the United Nations arms embargo is serving to 
        sustain the military advantage of the aggressor, the United 
        Nations should exempt the government of Bosnia-Hercegovina from 
        its embargo.
    (b) Pursuant to a lifting of the United Nations arms embargo, or to 
a unilateral lifting of the arms embargo by the President of the United 
States, against Bosnia-Hercegovina, the President is authorized to 
transfer, subject to prior notification of the Committees on 
Appropriations, to the government of that nation, without 
reimbursement, defense articles from the stocks of the Department of 
Defense and defense services of the Department of Defense of an 
aggregate value not to exceed $100,000,000 in fiscal year 1996: 
Provided, That the President certifies in a timely fashion to the 
Congress that the transfer of such articles would assist that nation in 
self-defense and thereby promote the security and stability of the 
region.
    (c) Within 60 days of any transfer under the authority provided in 
subsection (b), and every 60 days thereafter, the President shall 
report in writing to the Speaker of the House of Representatives and 
the President pro tempore of the Senate concerning the articles 
transferred and the disposition thereof.
    (d) There are authorized to be appropriated to the President such 
sums as may be necessary to reimburse the applicable appropriation, 
fund, or account for defense articles provided under this section.

    restrictions on the termination of sanctions against serbia and 
                               montenegro

    Sec. 540A. (a) Restrictions.--Notwithstanding any other provision 
of law, no sanction, prohibition, or requirement described in section 
1511 of the National Defense Authorization Act for Fiscal Year 1994 
(Public Law 103-160), with respect to Serbia or Montenegro, may cease 
to be effective, unless--
            (1) the President first submits to the Congress a 
        certification described in subsection (b); and
            (2) the requirements of section 1511 of that Act are met.
    (b) Certification.--A certification described in this subsection is 
a certification that--
            (1) there is substantial progress toward--
                    (A) the realization of a separate identity for 
                Kosova and the right of the people of Kosova to govern 
                themselves; or
                    (B) the creation of an international protectorate 
                for Kosova;
            (2) there is substantial improvement in the human rights 
        situation in Kosova;
            (3) international human rights observers are allowed to 
        return to Kosova; and
            (4) the elected government of Kosova is permitted to meet 
        and carry out its legitimate mandate as elected representatives 
        of the people of Kosova.
    (c) Waiver Authority.--The President may waive the application in 
whole or in part, of subsection (a) if the President certifies to the 
Congress that the President has determined that the waiver is necessary 
to meet emergency humanitarian needs or to achieve a negotiated 
settlement of the conflict in Bosnia-Herzegovina that is acceptable to 
the parties.
    (d) Expanded Authority.--Section 660(b) of the Foreign Assistance 
Act of 1961 is amended--
            (1) in paragraph (3), by striking ``or'';
            (2) in paragraph (4), by striking the period at the end 
        thereof and inserting ``; or'';
            (3) adding the following new paragraphs:
            ``(5) with respect to assistance, including training, 
        relating to sanctions monitoring and enforcement;
            ``(6) with respect to assistance provided to reconstitute 
        civilian police authority and capability in the post-conflict 
        restoration of host nation infrastructure for the purposes of 
        supporting a nation emerging from instability, and the 
        provision of professional public safety training, to include 
        training in internationally recognized standards of human 
        rights, the rule of law, anti-corruption, and the promotion of 
        civilian police roles that support democracy.''.

                          special authorities

    Sec. 541. (a) Funds appropriated in title II of this Act that are 
made available for Afghanistan, Lebanon, and Cambodia, and for victims 
of war, displaced children, displaced Burmese, humanitarian assistance 
for Romania, and humanitarian assistance for the peoples of Bosnia-
Hercegovina, Croatia, and Kosova, may be made available notwithstanding 
any other provision of law: Provided, That any such funds that are made 
available for Cambodia shall be subject to the provisions of section 
531(e) of the Foreign Assistance Act of 1961 and section 906 of the 
International Security and Development Cooperation Act of 1985: 
Provided further, That the President shall terminate assistance to any 
country or organization that he determines is cooperating, tactically 
or strategically, with the Khmer Rouge in their military operations, or 
to the military of any country which the President determines is not 
taking steps to prevent a pattern or practice of commercial relations 
between its members and the Khmer Rouge.
    (b) Funds appropriated by this Act to carry out the provisions of 
sections 103 through 106 of the Foreign Assistance Act of 1961 may be 
used, notwithstanding any other provision of law, for the purpose of 
supporting tropical forestry and energy programs aimed at reducing 
emissions of greenhouse gases, and for the purpose of supporting 
biodiversity conservation activities: Provided, That such assistance 
shall be subject to sections 116, 502B, and 620A of the Foreign 
Assistance Act of 1961.
    (c) During fiscal year 1996, the President may use up to 
$40,000,000 under the authority of section 451 of the Foreign 
Assistance Act of 1961, notwithstanding the funding ceiling contained 
in subsection (a) of that section.
    (d) The Agency for International Development may employ personal 
services contractors, notwithstanding any other provision of law, for 
the purpose of administering programs for the West Bank and Gaza.

        policy on terminating the arab league boycott of israel

    Sec. 542. It is the sense of the Congress that--
            (1) the Arab League countries should immediately and 
        publicly renounce the primary boycott of Israel and the 
        secondary and tertiary boycott of American firms that have 
        commercial ties with Israel; and
            (2) the President should--
                    (A) take more concrete steps to encourage 
                vigorously Arab League countries to renounce publicly 
                the primary boycotts of Israel and the secondary and 
                tertiary boycotts of American firms that have 
                commercial relations with Israel as a confidence-
                building measure;
                    (B) take into consideration the participation of 
                any recipient country in the primary boycott of Israel 
                and the secondary and tertiary boycotts of American 
                firms that have commercial relations with Israel when 
                determining whether to sell weapons to said country;
                    (C) report to Congress on the specific steps being 
                taken by the President to bring about a public 
                renunciation of the Arab primary boycott of Israel and 
                the secondary and tertiary boycotts of American firms 
                that have commercial relations with Israel; and
                    (D) encourage the allies and trading partners of 
                the United States to enact laws prohibiting businesses 
                from complying with the boycott and penalizing 
                businesses that do comply.

                       anti-narcotics activities

    Sec. 543. (a) Of the funds appropriated or otherwise made available 
by this Act for ``Economic Support Fund'', assistance may be provided 
to strengthen the administration of justice in countries in Latin 
America and the Caribbean in accordance with the provisions of section 
534 of the Foreign Assistance Act of 1961, except that programs to 
enhance protection of participants in judicial cases may be conducted 
notwithstanding section 660 of that Act.
    (b) Funds made available pursuant to this section may be made 
available notwithstanding the third sentence of section 534(e) of the 
Foreign Assistance Act of 1961. Funds made available pursuant to 
subsection (a) for Bolivia, Colombia and Peru may be made available 
notwithstanding section 534(c) and the second sentence of section 
534(e) of the Foreign Assistance Act of 1961.

                       eligibility for assistance

    Sec. 544. (a) Assistance Through Nongovernmental Organizations.--
Restrictions contained in this or any other Act with respect to 
assistance for a country shall not be construed to restrict assistance 
in support of programs of nongovernmental organizations from funds 
appropriated by this Act to carry out the provisions of chapters 1 and 
10 of part I of the Foreign Assistance Act of 1961: Provided, That the 
President shall take into consideration, in any case in which a 
restriction on assistance would be applicable but for this subsection, 
whether assistance in support of programs of nongovernmental 
organizations is in the national interest of the United States: 
Provided further, That before using the authority of this subsection to 
furnish assistance in support of programs of nongovernmental 
organizations, the President shall notify the Committees on 
Appropriations under the regular notification procedures of those 
committees, including a description of the program to be assisted, the 
assistance to be provided, and the reasons for furnishing such 
assistance: Provided further, That nothing in this subsection shall be 
construed to alter any existing statutory prohibitions against abortion 
or involuntary sterilizations contained in this or any other Act.
    (b) Public Law 480.--During fiscal year 1996, restrictions 
contained in this or any other Act with respect to assistance for a 
country shall not be construed to restrict assistance under the 
Agricultural Trade Development and Assistance Act of 1954: Provided, 
That none of the funds appropriated to carry out title I of such Act 
and made available pursuant to this subsection may be obligated or 
expended except as provided through the regular notification procedures 
of the Committees on Appropriations.
    (c) Exception.--This section shall not apply--
            (1) with respect to section 620A of the Foreign Assistance 
        Act or any comparable provision of law prohibiting assistance 
        to countries that support international terrorism; or
            (2) with respect to section 116 of the Foreign Assistance 
        Act of 1961 or any comparable provision of law prohibiting 
assistance to countries that violate internationally recognized human 
rights.

                                earmarks

    Sec. 544A. (a) Funds appropriated by this Act which are earmarked 
may be reprogrammed for other programs within the same account 
notwithstanding the earmark if compliance with the earmark is made 
impossible by operation of any provision of this or any other Act or, 
with respect to a country with which the United States has an agreement 
providing the United States with base rights or base access in that 
country, if the President determines that the recipient for which funds 
are earmarked has significantly reduced its military or economic 
cooperation with the United States since enactment of the Foreign 
Operations, Export Financing, and Related Programs Appropriations Act, 
1991; however, before exercising the authority of this subsection with 
regard to a base rights or base access country which has significantly 
reduced its military or economic cooperation with the United States, 
the President shall consult with, and shall provide a written policy 
justification to the Committees on Appropriations: Provided, That any 
such reprogramming shall be subject to the regular notification 
procedures of the Committees on Appropriations: Provided further, That 
assistance that is reprogrammed pursuant to this subsection shall be 
made available under the same terms and conditions as originally 
provided.
    (b) In addition to the authority contained in subsection (a), the 
original period of availability of funds appropriated by this Act and 
administered by the Agency for International Development that are 
earmarked for particular programs or activities by this or any other 
Act shall be extended for an additional fiscal year if the 
Administrator of such agency determines and reports promptly to the 
Committees on Appropriations that the termination of assistance to a 
country or a significant change in circumstances makes it unlikely that 
such earmarked funds can be obligated during the original period of 
availability: Provided, That such earmarked funds that are continued 
available for an additional fiscal year shall be obligated only for the 
purpose of such earmark.

                         ceilings and earmarks

    Sec. 545. Ceilings and earmarks contained in this Act shall not be 
applicable to funds or authorities appropriated or otherwise made 
available by any subsequent Act unless such Act specifically so 
directs.

                        excess defense articles

    Sec. 546. (a) The authority of section 519 of the Foreign 
Assistance Act of 1961, as amended, may be used in fiscal year 1996 to 
provide nonlethal excess defense articles to countries for which United 
States foreign assistance has been requested and for which receipt of 
such articles was separately justified for the fiscal year, without 
regard to the restrictions in subsection (a) of section 519.
    (b) The authority of section 516 of the Foreign Assistance Act of 
1961, as amended, may be used in fiscal year 1996 to provide defense 
articles to Jordan, Estonia, Latvia, and Lithuania.

                 prohibition on publicity or propaganda

    Sec. 547. No part of any appropriation contained in this Act shall 
be used for publicity or propaganda purposes within the United States 
not authorized before the date of enactment of this Act by the 
Congress: Provided, That none of the funds appropriated by this Act may 
be made available to carry out the provisions of section 316 of Public 
Law 96-533.

                       use of american resources

    Sec. 548. To the maximum extent possible, assistance provided under 
this Act should make full use of American resources, including 
commodities, products, and services.

           prohibition of payments to united nations members

    Sec. 549. None of the funds appropriated or made available pursuant 
to this Act for carrying out the Foreign Assistance Act of 1961, may be 
used to pay in whole or in part any assessments, arrearages, or dues of 
any member of the United Nations.

                          consulting services

    Sec. 550. The expenditure of any appropriation under this Act for 
any consulting service through procurement contract, pursuant to 
section 3109 of title 5, United States Code, shall be limited to those 
contracts where such expenditures are a matter of public record and 
available for public inspection, except where otherwise provided under 
existing law, or under existing Executive order pursuant to existing 
law.

             private voluntary organizations--documentation

    Sec. 551. None of the funds appropriated or made available pursuant 
to this Act shall be available to a private voluntary organization 
which fails to provide upon timely request any document, file, or 
record necessary to the auditing requirements of the Agency for 
International Development.

  prohibition on assistance to foreign governments that export lethal 
   military equipment to countries supporting international terrorism

    Sec. 552. (a) None of the funds appropriated or otherwise made 
available by this Act may be available to any foreign government which 
provides lethal military equipment to a country the government of which 
the Secretary of State has determined is a terrorist government for 
purposes of section 40(d) of the Arms Export Control Act. The 
prohibition under this section with respect to a foreign government 
shall terminate 12 months after that government ceases to provide such 
military equipment. This section applies with respect to lethal 
military equipment provided under a contract entered into after the 
date of enactment of this Act.
    (b) Assistance restricted by subsection (a) or any other similar 
provision of law, may be furnished if the President determines that 
furnishing such assistance is important to the national interests of 
the United States.
    (c) Whenever the waiver of subsection (b) is exercised, the 
President shall submit to the appropriate congressional committees a 
report with respect to the furnishing of such assistance. Any such 
report shall include a detailed explanation of the assistance to be 
provided, including the estimated dollar amount of such assistance, and 
an explanation of how the assistance furthers United States national 
interests.

 withholding of assistance for parking fines owed by foreign countries

    Sec. 553. (a) In General.--Of the funds made available for a 
foreign country under part I of the Foreign Assistance Act of 1961, an 
amount equivalent to 110 percent of the total unpaid fully adjudicated 
parking fines and penalties owed to the District of Columbia by such 
country as of the date of enactment of this Act shall be withheld from 
obligation for such country until the Secretary of State certifies and 
reports in writing to the appropriate congressional committees that 
such fines and penalties are fully paid to the government of the 
District of Columbia.
    (b) Definition.--For purposes of this section, the term 
``appropriate congressional committees'' means the Committee on Foreign 
Relations and the Committee on Appropriations of the Senate and the 
Committee on International Relations and the Committee on 
Appropriations of the House of Representatives.

    limitation on assistance for the plo for the west bank and gaza

    Sec. 554. None of the funds appropriated by this Act may be 
obligated for assistance for the Palestine Liberation Organization for 
the West Bank and Gaza unless the President has exercised the authority 
under section 583(a) of the Middle East Peace Facilitation Act of 1994 
(part E of title V of Public Law 103-236) or any other legislation to 
suspend or make inapplicable section 307 of the Foreign Assistance Act 
of 1961 and that suspension is still in effect: Provided, That if the 
President fails to make the certification under section 583(b)(2) of 
the Middle East Peace Facilitation Act or to suspend the prohibition 
under other legislation, funds appropriated by this Act may not be 
obligated for assistance for the Palestine Liberation Organization for 
the West Bank and Gaza.

                 export financing transfer authorities

    Sec. 555. Not to exceed 5 percent of any appropriation other than 
for administrative expenses made available for fiscal year 1996 for 
programs under title I of this Act may be transferred between such 
appropriations for use for any of the purposes, programs and activities 
for which the funds in such receiving account may be used, but no such 
appropriation, except as otherwise specifically provided, shall be 
increased by more than 25 percent by any such transfer: Provided, That 
the exercise of such authority shall be subject to the regular 
notification procedures of the Committees on Appropriations.

                          war crimes tribunals

    Sec. 556. If the President determines that doing so will contribute 
to a just resolution of charges regarding genocide or other violations 
of international humanitarian law, the authority of section 552(c) of 
the Foreign Assistance Act of 1961, as amended, may be used to provide 
up to $25,000,000 of commodities and services to the United Nations War 
Crimes Tribunal established with regard to the former Yugoslavia by the 
United Nations Security Council or such other tribunals or commissions 
as the Council may establish to deal with such violations, without 
regard to the ceiling limitation contained in paragraph (2) thereof: 
Provided, That the determination required under this section shall be 
in lieu of any determinations otherwise required under section 552(c):  
Provided further, That 60 days after the date of enactment of this Act, 
and every 180 days thereafter, the Secretary of State shall submit a 
report to the Committees on Appropriations describing the steps the 
United States Government is taking to collect information regarding 
allegations of genocide or other violations of international law in the 
former Yugoslavia and to furnish that information to the United Nations 
War Crimes Tribunal for the former Yugoslavia.

                   nonlethal excess defense articles

    Sec. 557. Notwithstanding section 519(f) of the Foreign Assistance 
Act of 1961, during fiscal year 1996, funds available to the Department 
of Defense may be expended for crating, packing, handling and 
transportation of nonlethal excess defense articles transferred under 
the authority of section 519 to countries eligible to participate in 
the Partnership for Peace and to receive assistance under Public Law 
101-179.

                               landmines

    Sec. 558. Notwithstanding any other provision of law, demining 
equipment available to any department or agency and used in support of 
the clearing of landmines for humanitarian purposes may be disposed of 
on a grant basis in foreign countries, subject to such terms and 
conditions as the President may prescribe: Provided, That section 
1365(c) of the National Defense Authorization Act for Fiscal Year 1993 
(Public Law 102-484; 22 U.S.C., 2778 note) is amended by striking out 
``During the four-year period beginning on October 23, 1992'' and 
inserting in lieu thereof ``During the five-year period beginning on 
October 23, 1992''.

                     clarification of restrictions

    Sec. 559. (a) In General.--Section 620E of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2375) is amended--
            (1) in subsection (e)--
                    (A) by striking the words ``No assistance'' and 
                inserting the words ``No military assistance'';
                    (B) by striking the words ``in which assistance is 
                to be furnished or military equipment or technology'' 
                and inserting the words ``in which military assistance 
                is to be furnished or military equipment or 
                technology'';
                    (C) by striking the words ``the proposed United 
                States assistance'' and inserting the words ``the 
                proposed United States military assistance'';
                    (D) by inserting ``(1)'' immediately after ``(e)''; 
                and
                    (E) by adding the following new paragraphs:
            ``(2) The prohibitions in this section do not apply to any 
        assistance or transfer provided for the purposes of:
                    ``(A) International narcotics control (including 
                chapter 8 of part I of this Act) or any provision of 
                law available for providing assistance for 
                counternarcotics purposes.
                    ``(B) Facilitating military-to-military contact, 
                training (including chapter 5 of part II of this Act) 
                and humanitarian and civic assistance projects.
                    ``(C) Peacekeeping and other multilateral 
                operations (including chapter 6 of part II of this Act 
                relating to peacekeeping) or any provision of law 
                available for providing assistance for peacekeeping 
                purposes, except that lethal military equipment 
                provided under this subparagraph shall be provided on a 
                lease or loan basis only and shall be returned upon 
                completion of the operation for which it was provided.
                    ``(D) Antiterrorism assistance (including chapter 8 
                of part II of this Act relating to antiterrorism 
                assistance) or any provision of law available for 
                antiterrorism assistance purposes.
            ``(3) The restrictions of this subsection shall continue to 
        apply to contracts for the delivery of F-16 aircraft to 
        Pakistan.
            ``(4) Notwithstanding the restrictions contained in this 
        subsection, military equipment, technology, or defense 
        services, other than F-16 aircraft, may be transferred to 
        Pakistan pursuant to contracts or cases entered into before 
        October 1, 1990.''; and
            (2) by adding at the end the following new subsections:
    ``(f) Storage Costs.--The President may release the Government of 
Pakistan of its contractual obligation to pay the United States 
Government for the storage costs of items purchased prior to October 1, 
1990, but not delivered by the United States Government pursuant to 
subsection (e) and may reimburse the Government of Pakistan for any 
such amount paid, on such terms and conditions as the President may 
prescribe: Provided, That such payments have no budgetary impact.
    ``(g) Inapplicability of Restrictions to Previously Owned Items.--
Section 620E(e) does not apply to broken, worn or unupgraded items or 
their equivalent which Pakistan paid for and took possession of prior 
to October 1, 1990 and which the Government of Pakistan sent to the 
United States for repair or upgrade. Such equipment or its equivalent 
may be returned to the Government of Pakistan: Provided, That the 
President determines and so certifies to the appropriate congressional 
committees that such equipment or equivalent neither constitutes nor 
has received any significant qualitative upgrade since being 
transferred to the United States and that its total value does not 
exceed $25,000,000.
    ``(h) Ballistic Missile Sanctions Not Affected.--Nothing contained 
herein shall affect sanctions for transfers of missile equipment or 
technology required under section 11B of the Export Administration Act 
of 1979 or section 73 of the Arms Export Control Act.''.

           restrictions concerning the palestinian authority

    Sec. 560. None of the funds appropriated by this Act may be 
obligated or expended to create in any part of Jerusalem a new office 
of any department or agency of the United States Government for the 
purpose of conducting official United States Government business with 
the Palestinian Authority over Gaza and Jericho or any successor 
Palestinian governing entity provided for in the Israel-PLO Declaration 
of Principles: Provided, That this restriction shall not apply to the 
acquisition of additional space for the existing Consulate General in 
Jerusalem: Provided further, That meetings between officers and 
employees of the United States and officials of the Palestinian 
Authority, or any successor Palestinian governing entity provided for 
in the Israel-PLO Declaration of Principles, for the purpose of 
conducting official United States Government business with such 
authority should continue to take place in locations other than 
Jerusalem. As has been true in the past, officers and employees of the 
United States Government may continue to meet in Jerusalem on other 
subjects with Palestinians (including those who now occupy positions in 
the Palestinian Authority), have social contacts, and have incidental 
discussions.

               prohibition of payment of certain expenses

    Sec. 561. None of the funds appropriated or otherwise made 
available by this Act under the heading ``international military 
education and training'' or ``foreign military financing program'' for 
Informational Program activities may be obligated or expended to pay 
for--
            (1) alcoholic beverages;
            (2) food (other than food provided at a military 
        installation) not provided in conjunction with Informational 
        Program trips where students do not stay at a military 
        installation; or
            (3) entertainment expenses for activities that are 
        substantially of a recreational character, including entrance 
        fees at sporting events and amusement parks.
    Sec. 562. (a) In General.--None of the funds made available in this 
Act may be used for assistance in support of any country when it is 
made known to the President that the government of such country 
prohibits or otherwise restricts, directly or indirectly, the transport 
or delivery of United States humanitarian assistance.
    (b) Exception.--Funds may be made available with regard to the 
restriction in subsection (a) if the President determines that to do so 
is in the national security interest of the United States.

withholding of assistance to countries supporting nuclear plant in cuba

    Sec. 563. (a) Withholding.--The President shall withhold from 
assistance made available with funds appropriated or made available 
pursuant to this Act an amount equal to the sum of assistance and 
credits, if any, provided on or after the date of the enactment of this 
Act by that country, or any entity in that country, in support of the 
completion of the Cuban nuclear facility at Juragua, near Cienfuegos, 
Cuba.
    (b) Exceptions.--The requirement of subsection (a) to withhold 
assistance shall not apply with respect to--
            (1) assistance to meet urgent humanitarian needs including 
        disaster and refugee relief;
            (2) democratic political reform and rule of law activities;
            (3) the creation of private sector and nongovernmental 
        organizations that are independent of government control;
            (4) the development of a free market economic system; and
            (5) assistance for the purposes described in the 
        Cooperative Threat Reduction Act of 1993 (title XII of Public 
        Law 103-160).

                     limitation on funds for haiti

    Sec. 564. Effective March 1, 1996, none of the funds appropriated 
in this Act may be made available to the Government of Haiti when it is 
made known to the President that such Government is controlled by a 
regime holding power through means other than the democratic elections 
scheduled for calendar year 1995 and held in substantial compliance 
with the requirements of the 1987 Constitution of Haiti.

            purchase of american-made equipment and products

    Sec. 565. (a) Sense of Congress.--It is the sense of the Congress 
that, to the greatest extent practicable, all equipment and products 
purchased with funds made available in this Act should be American-
made.
    (b) Notice Requirement.--In providing financial assistance to, or 
entering into any contract with, any entity using funds made available 
in this Act, the head of each Federal agency, to the greatest extent 
practicable, shall provide to such entity a notice describing the 
statement made in subsection (a) by the Congress.

                   limitation on assistance to turkey

    Sec. 566. Not more than $33,500,000 of the funds appropriated in 
this Act under the heading ``Economic Support Fund'' may be made 
available to the Government of Turkey.

        limitation of funds for north american development bank

    Sec. 566A. None of the funds appropriated in this Act under the 
heading ``North American Development Bank'' and made available for the 
Community Adjustment and Investment Program shall be used for purposes 
other than those set out in the binational agreement establishing the 
Bank.

                     limitation on funds for burma

    Sec. 567. None of the funds made available in this Act may be used 
for International Narcotics Control or Crop Substitution Assistance for 
the Government of Burma.

                         asian development bank

    Sec. 568. The Secretary of the Treasury may, to fulfill commitments 
of the United States, subscribe to and make payments for shares of the 
Asian Development Bank in connection with the fourth general capital 
increase of the Bank. The amount authorized to be appropriated for 
paid-in shares of the Bank is limited to $66,614,647; the amount 
authorized to be appropriated for payment for callable shares of the 
Bank is limited to $3,264,178,021. The amount to be paid in respect of 
each subscription is authorized to be appropriated without fiscal year 
limitation. Any subscription by the United States to the capital stock 
of the Bank shall be effective only to such extent or in such amounts 
as are provided in advance in appropriations Acts.

                 international development association

    Sec. 569. In order to pay for the United States contribution to the 
tenth replenishment of the resources of the International Development 
Association authorized in section 526 of Public Law 103-87, there is 
authorized to be appropriated, without fiscal year limitation, 
$700,000,000 for payment by the Secretary of the Treasury.

                  special debt relief for the poorest

    Sec. 570. (a) Authority To Reduce Debt.--The President may reduce 
amounts owed to the United States (or any agency of the United States) 
by an eligible country as a result of--
            (1) guarantees issued under sections 221 and 222 of the 
        Foreign Assistance Act of 1961; or
            (2) credits extended or guarantees issued under the Arms 
        Export Control Act.
    (b) Limitations.--
            (1) The authority provided by subsection (a) may be 
        exercised only to implement multilateral official debt relief 
        and referendum agreements, commonly referred to as ``Paris Club 
        Agreed Minutes''.
            (2) The authority provided by subsection (a) may be 
        exercised only in such amounts or to such extent as is provided 
        in advance by appropriations Acts.
            (3) The authority provided by subsection (a) may be 
        exercised only with respect to countries with heavy debt 
        burdens that are eligible to borrow from the International 
        Development Association, but not from the International Bank 
        for Reconstruction and Development, commonly referred to as 
``IDA-only'' countries.
    (c) Conditions.--The authority provided by subsection (a) may be 
exercised only with respect to a country whose government--
            (1) does not have an excessive level of military 
        expenditures;
            (2) has not repeatedly provided support for acts of 
        international terrorism;
            (3) is not failing to cooperate on international narcotics 
        control matters;
            (4) (including its military or other security forces) does 
        not engage in a consistent pattern of gross violations of 
        internationally recognized human rights; and
            (5) is not ineligible for assistance because of the 
        application of section 527 of the Foreign Relations 
        Authorization Act, fiscal years 1994 and 1995.
    (d) Availability of Funds.--The authority provided by subsection 
(a) may be used only with regard to funds appropriated by this Act 
under the heading ``Debt Restructuring''.
    (e) Certain Prohibitions Inapplicable.--A reduction of debt 
pursuant to subsection (a) shall not be considered assistance for 
purposes of any provision of law limiting assistance to a country. The 
authority provided by subsection (a) may be exercised notwithstanding 
section 620(r) of the Foreign Assistance Act of 1961.

             authority to engage in debt buybacks or sales

    Sec. 571. (a) Loans Eligible for Sale, Reduction, or 
Cancellation.--
            (1) Authority to sell, reduce, or cancel certain loans.--
        Notwithstanding any other provision of law, the President may, 
        in accordance with this section, sell to any eligible purchaser 
        any concessional loan or portion thereof made before January 1, 
        1995, pursuant to the Foreign Assistance Act of 1961, to the 
        government of any eligible country as defined in section 702(6) 
        of that Act or on receipt of payment from an eligible 
        purchaser, reduce or cancel such loan or portion thereof, only 
        for the purpose of facilitating--
                    (A) debt-for-equity swaps, debt-for-development 
                swaps, or debt-for-nature swaps; or
                    (B) a debt buyback by an eligible country of its 
                own qualified debt, only if the eligible country uses 
                an additional amount of the local currency of the 
                eligible country, equal to not less than 40 percent of 
                the price paid or 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 section 707 through 710 of the Foreign 
                Assistance Act of 1961, if the sale, reduction, or 
                cancellation would not contravene any term or condition 
                of any prior agreement relating to such loan.
            (2) Terms and conditions.--Notwithstanding any other 
        provision of law, the President shall, in accordance with this 
        section, establish the terms and conditions under which loans 
        may be sold, reduced, or canceled pursuant to this section.
            (3) Administration.--The Facility, as defined in section 
        702(8) of the Foreign Assistance Act of 1961, shall notify the 
        administrator of the agency primarily responsible for 
        administering part I of the Foreign Assistance Act of 1961 of 
        purchasers that the President has determined to be eligible, 
        and shall direct such agency to carry out the sale, reduction, 
        or cancellation of a loan pursuant to this section. Such agency 
        shall make an adjustment in its accounts to reflect the sale, 
        reduction, or cancellation.
            (4) Limitation.--The authorities of this subsection shall 
        be available only to the extent that appropriations for the 
        cost of the modification, as defined in section 502 of the 
        Congressional Budget Act of 1974, are made in advance.
    (b) Deposit of Proceeds.--The proceeds from the sale, reduction, or 
cancellation of any loan sold, reduced, or canceled pursuant to this 
section shall be deposited in the United States Government account or 
accounts established for the repayment of such loan.
    (c) Eligible Purchasers.--A loan may be sold pursuant to subsection 
(a)(1)(A) only to a purchaser who presents plans satisfactory to the 
President for using the loan for the purpose of engaging in debt-for-
equity swaps, debt-for-development swaps, or debt-for-nature swaps.
    (d) Debtor Consultations.--Before the sale to any eligible 
purchaser, or any reduction or cancellation pursuant to this section, 
of any loan made to an eligible country, the President 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) Availability of Funds.--The authority provided by subsection 
(a) may be used only with regard to funds appropriated by this Act 
under the heading ``Debt Restructuring''.

                     drawdown authority for jordan

    Sec. 572. During fiscal year 1996, the President may direct, for 
the purposes of part II of the Foreign Assistance Act of 1961, the 
drawdown for Jordan of defense articles from the stocks of the 
Department of Defense, defense services of the Department of Defense, 
and military education and training of up to an aggregate of 
$100,000,000: Provided, That--
            (a) within six months of the last drawdown under subsection 
        (a), the President shall submit a report to the Committee on 
        Appropriations identifying the articles, services, training or 
        education provided;
            (b) section 506(c) of the Foreign Assistance Act of 1961 
        shall apply to the drawdown authority in this section; and
            (c) section 632(d) of the Foreign Assistance Act of 1961 
        shall not apply with respect to drawdowns under this section.

                                liberia

    Sec. 573. (a) Public Law 102-270 is amended--
            (1) in subsection (b) by striking ``Notwithstanding section 
        620(q) of the Foreign Assistance Act of 1961 or any other 
        similar provision, the'' and inserting ``The''; and
            (2) in subsection (b)(2) by striking ``to implement the 
        Yamoussoukro peace accord''.
    (b) Funds appropriated by this Act may be made available for 
assistance for Liberia notwithstanding section 620(q) of the Foreign 
Assistance Act of 1961 and section 512 of this Act.

              annual report on economic and social growth

    Sec. 574. (a) Reporting Requirement.--The President shall submit to 
the appropriate congressional committees an annual report providing a 
concise overview of the prospects for economic and social growth on a 
broad, equitable, and sustainable basis in the countries receiving 
economic assistance under title II of this Act. For each country, the 
report shall discuss the laws, policies and practices of that country 
that most contribute to or detract from the achievement of this kind of 
growth. The report should address relevant macroeconomic, 
microeconomic, social, legal, environmental, and political factors and 
include criteria regarding wage and price controls, State ownership of 
production and distribution, State control of financial institutions, 
trade and foreign investment, capital and profit repatriation, tax and 
private property protections and a country's commitment to stimulate 
education, health and human development.
    (b) Countries.--The countries referred to in subsection (a) are 
countries--
            (1) for which in excess of $5,000,000 has been obligated 
        during the previous fiscal year for assistance under sections 
        103 through 106, chapters 10 and 11 of part I, and chapter 4 of 
        part II of the Foreign Assistance of 1961, and under the 
        Support for East European Democracy Act of 1989; or
            (2) for which in excess of $1,000,000 has been obligated 
        during the previous fiscal year by the Overseas Private 
        Investment Corporation.
    (c) Consultation.--The Secretary of State shall submit the report 
required by subsection (a) in consultation with the Secretary of the 
Treasury, the Administrator of the Agency for International 
Development, and the President of the Overseas Private Investment 
Corporation. The report shall be submitted with the annual 
congressional presentation for appropriations.
    Sec. 575. To the maximum extent possible, the funds provided by 
this Act shall be used to provide surveying and mapping related 
services through contracts entered into through competitive bidding to 
qualified United States contractors.

                      reports regarding hong kong

    Sec. 576. (a) Section 301 of the United States-Hong Kong Policy Act 
of 1992 (22 U.S.C. 5731) is amended in the text above paragraph (1) by 
inserting ``March 31, 1996,'' after ``March 31, 1995,''.
    (b) In light of the deficiencies in reports submitted to the 
Congress pursuant to section 301 of the United States-Hong Kong Policy 
Act (22 U.S.C. 5731), the Congress directs that the additional report 
required to be submitted under such section by subsection (a) of this 
section include detailed information on the status of, and other 
developments affecting, implementation of the Sino-British Joint 
Declaration on the Question of Hong Kong, including--
                    (1) the Basic Law and its consistency with the 
                Joint Declaration;
                    (2) the openness and fairness of elections to the 
                legislature;
                    (3) the openness and fairness of the election of 
                the chief executive and the executive's accountability 
                to the legislature;
                    (4) the treatment of political parties;
                    (5) the independence of the judiciary and its 
                ability to exercise the power of final judgment over 
                Hong Kong law; and
                    (6) the Bill of Rights.
    Sec. 577. Notwithstanding any other provision of this Act, 
$20,000,000 of the funds made available under the headings 
``Development Assistance'' and/or ``Economic Support Fund'' may be 
transferred to, and merged with, the appropriations account entitled 
``International Narcotics Control'' and may be available for the same 
purposes for which funds in such account are available.

                               guatemala

    Sec. 578. (a) Funds provided in this Act may be made available for 
the Guatemalan military or security forces, and the restrictions on 
Guatemala under the headings ``International Military Education and 
Training'' and ``Foreign Military Financing Program'' shall not apply, 
only if the President determines and certifies to the Congress that the 
Guatemalan military is cooperating with efforts to resolve human rights 
abuses which elements of the Guatemalan military or security forces are 
alleged to have committed, ordered or attempted to thwart the 
investigation of.
    (b) The prohibition contained in subsection (a) shall not apply to 
funds made available to implement a cease-fire or peace agreement.
    (c) Any funds made available pursuant to subsections (a) or (b) 
shall be subject to the regular notification procedures of the 
Committees on Appropriations.
    (d) Any funds made available pursuant to subsections (a) and (b) 
for international military education and training may only be for 
expanded international military education and training.

                  extension of tied aid credit program

    Sec. 579. (a) Section 10(c)(2) of the Export-Import Bank Act of 
1945 (12 U.S.C. 635i-3(c)(2)) is amended by striking ``1995'' and 
inserting ``1997''.
    (b) Section 10(e) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635i-3(e)) is amended by striking ``1993, 1994, and 1995'' and 
inserting ``1996 and 1997''.

              moratorium on use of antipersonnel landmines

    Sec. 580. (a) United States Moratorium.--For a period of one year 
beginning three years after the date of enactment of this Act, the 
United States shall not use antipersonnel landmines except along 
internationally recognized national borders or in demilitarized zones 
within a perimeter marked area that is monitored by military personnel 
and protected by adequate means to ensure the exclusion of civilians.
    (b) Definition and Exemptions.--For the purposes of this section:
            (1) Antipersonnel landmine.--The term ``antipersonnel 
        landmine'' means any munition placed under, on, or near the 
        ground or other surface area, delivered by artillery, rocket, 
        mortar, or similar means, or dropped from an aircraft and which 
        is designed, constructed or adapted to be detonated or exploded 
        by the presence, proximity, or contact of a person.
            (2) Exemptions.--The term ``antipersonnel landmine'' does 
        not include command detonated Claymore munitions.

                     extension of au pair programs

    Sec. 581. Section 8 of the Eisenhower Exchange Fellowship Act of 
1990 is amended in the last sentence by striking ``fiscal year 1995'' 
and inserting ``fiscal year 1996''.

          sanctions against countries harboring war criminals

    Sec. 582. (a) Bilateral Assistance.--Funds appropriated by this Act 
under the Foreign Assistance Act of 1961 or the Arms Export Control Act 
may not be provided for any country described in subsection (c).
    (b) Multilateral Assistance.--The Secretary of the Treasury shall 
instruct the United States executive directors of the international 
financial institutions to work in opposition to, and vote against, any 
extension by such institutions of financing or financial or technical 
assistance to any country described in subsection (c).
    (c) Sanctioned Countries.--A country described in this subsection 
is a country the government of which knowingly grants sanctuary to 
persons in its territory for the purpose of evading prosecution, where 
such persons--
            (1) have been indicted by the International Criminal 
        Tribunal for the former Yugoslavia, the International Criminal 
        Tribunal for Rwanda, or any other international tribunal with 
        similar standing under international law, or
            (2) have been indicted for war crimes or crimes against 
        humanity committed during the period beginning March 23, 1933 
        and ending on May 8, 1945 under the direction of, or in 
        association with--
                    (A) the Nazi government of Germany;
                    (B) any government in any area occupied by the 
                military forces of the Nazi government of Germany;
                    (C) any government which was established with the 
                assistance or cooperation of the Nazi government; or
                    (D) any government which was an ally of the Nazi 
                government of Germany.

                   limitation on assistance for haiti

    Sec. 583. (a) Limitation.--None of the funds appropriated or 
otherwise made available by this Act, may be provided to the Government 
of Haiti until the President reports to Congress that--
            (1) the Government is conducting thorough investigations of 
        extrajudicial and political killings; and
            (2) the Government is cooperating with United States 
        authorities in the investigations of political and 
        extrajudicial killings.
    (b) Nothing in this section shall be construed to restrict the 
provision of humanitarian or electoral assistance.
    (c) The President may waive the requirements of this section if he 
determines and certifies to the appropriate committees of Congress that 
it is in the national interest of the United States or necessary to 
assure the safe and timely withdrawal of American forces from Haiti.

 limitation on funds to the territory of the bosniac-croat federation.

    Sec. 584. Funds appropriated by this Act for activities in the 
internationally-recognized borders of Bosnia and Herzegovina (other 
than refugee and disaster assistance and assistance for restoration of 
infrastructure, to include power grids, water supplies and natural gas) 
may only be made available for activities in the territory of the 
Bosniac-Croat Federation.

                           nato participation

    Sec. 585. Revisions to Program To Facilitate Transition to NATO 
Membership.--
    (a) Eligible Countries.--(1) Subsection (d) of section 203 of the 
NATO Participation Act of 1994 (title II of Public Law 103-447; 22 
U.S.C. 1928 note) is amended to read as follows:
    ``(d) Designation of Eligible Countries.--
            ``(1) Initial presidential review and designation.--Within 
        60 days of the enactment of the NATO Participation Act 
        Amendments of 1995, the President should evaluate the degree to 
        which any country emerging from communist domination which has 
        expressed its interest in joining NATO meets the criteria set 
        forth in paragraph (3), and may designate one or more of these 
        countries as eligible to receive assistance under the program 
        established under subsection (a). The President shall, at the 
        time of designation of any country pursuant to this paragraph, 
        determine and report to the Committees on International 
        Relations and Appropriations of the House of Representatives 
        and the Committees on Foreign Relations and Appropriations of 
        the Senate with respect to each country so designated that such 
        country meets the criteria set forth in paragraph (3).
            ``(2) Other european countries emerging from communist 
        domination.--In addition to the countries designated pursuant 
        to paragraph (1), the President may at any time designate other 
        European countries emerging from communist domination as 
        eligible to receive assistance under the program established 
        under subsection (a). The President shall, at the time of 
        designation of any country pursuant to this paragraph, 
        determine and report to the Committees on International 
        Relations and Appropriations of the House of Representatives 
        and the Committees on Foreign Relations and Appropriations of 
        the Senate with respect to each country so designated that such 
        country meets the criteria set forth in paragraph (3).
            ``(3) Criteria.--The criteria referred to in paragraphs (1) 
        and (2) are, with respect to each country, that the country--
                    ``(A) has made significant progress toward 
                establishing--
                            ``(i) shared values and interests;
                            ``(ii) democratic governments;
                            ``(iii) free market economies;
                            ``(iv) civilian control of the military, of 
                        the police, and of intelligence services, so 
                        that these organizations do not pose a threat 
                        to democratic institutions, neighboring 
                        countries, or the security of NATO or the 
                        United States;
                            ``(v) adherence to the rule of law and to 
                        the values, principles, and political 
                        commitments set forth in the Helsinki Final Act 
                        and other declarations by the members of the 
                        Organization on Security and Cooperation in 
                        Europe;
                            ``(vi) commitment to further the principles 
                        of NATO and to contribute to the security of 
                        the North Atlantic area;
                            ``(vii) commitment to protecting the rights 
                        of all their citizens and respecting the 
                        territorial integrity of their neighbors;
                            ``(viii) commitment and ability to accept 
                        the obligations, responsibilities, and costs of 
                        NATO membership; and
                            ``(ix) commitment and ability to implement 
                        infrastructure development activities that will 
                        facilitate participation in and support for 
                        NATO military activities;
                    ``(B) is likely, within five years of such 
                determination, to be in a position to further the 
                principles of the North Atlantic Treaty and to 
                contribute to the security of the North Atlantic area; 
                and
                    ``(C) is not ineligible to receive assistance under 
                section 552 of the Foreign Operations, Export 
                Financing, and Related Programs Appropriations Act, 
                1996, with respect to transfers of equipment to a 
                country the government of which the Secretary of State 
                has determined is a terrorist government for purposes 
                of section 40(d) of the Arms Export Control Act.''.
    (2) Conforming Amendments.--
            (A) Subsections (b) and (c) of section 203 of such Act are 
        amended by striking ``countries described in such subsection'' 
        each of the two places it appears and inserting ``countries 
        designated under subsection (d)''.
            (B) Subsection (e) of section 203 of such Act is amended by 
        inserting ``(22 U.S.C. 2394-1), and shall include with such 
        notification a memorandum of justification with respect to the 
        proposed designation'' before the period at the end.
    (b) Types of Assistance.--Section 203(c) of such Act is amended by 
inserting after paragraph (4) the following new paragraphs:
            ``(5) Assistance under chapter 4 of part II of the Foreign 
        Assistance Act of 1961 (relating to the Economic Support Fund).
            ``(6) Funds appropriated under the ``Nonproliferation and 
        Disarmament Fund'' account.
            ``(7) Assistance under chapter 6 of part II of the Foreign 
        Assistance Act of 1961 (relating to peacekeeping operations and 
        other programs).
            ``(8) Notwithstanding any other provision of law, including 
        any restrictions in sections 516 and 519 of the Foreign 
        Assistance Act of 1961, as amended, the President may direct 
        the crating, packing, handling, and transportation of excess 
        defense articles provided pursuant to paragraphs (1) and (2) of 
        this subsection without charge to the recipient of such 
        articles.''.
    (c) Effect on Other Authorities.--Section 203 of the NATO 
Participation Act of 1994 (title II of Public Law 103-447, 22 U.S.C. 
1928 note), is amended to add a new subsection (g) to read as follows:
    ``(g) Effect on Other Authorities.--Nothing in this Act shall 
affect the eligibility of countries to participate under other 
provisions of law in programs described in this Act.''.
    (d) Annual Report.--Section 205 of the NATO Participation Act of 
1994 (title II of Public Law 103-447; 22 U.S.C. 1928 note) is amended:
            (1) by inserting ``ANNUAL'' in the section heading before 
        the first word;
            (2) by inserting ``annual'' after ``include in the'' in the 
        matter preceding paragraph (1); and
            (3) in paragraphs (1) and (2), by striking ``and other'' 
        and all that follows through the period at the end and in both 
        instances inserting in lieu thereof ``and any other country 
        designated by the President pursuant to section 203(d).''.

          TITLE VI--MIDDLE EAST PEACE FACILITATION ACT OF 1995

                              short title

    Sec. 601. This title may be cited as the ``Middle East Peace 
Facilitation Act of 1995''.

                                findings

    Sec. 602. The Congress finds that--
            (1) the Palestine Liberation Organization (hereafter the 
        ``P.L.O.'') has recognized the State of Israel's right to exist 
        in peace and security, accepted United Nations Security Council 
        Resolutions 242 and 338, committed itself to the peace process 
        and peaceful coexistence with Israel, free from violence and 
        all other acts which endanger peace and stability, and assumed 
        responsibility over all P.L.O. elements and personnel in order 
        to assure their compliance, prevent violations, and discipline 
        violators;
            (2) Israel has recognized the P.L.O. as the representative 
        of the Palestinian people;
            (3) Israel and the P.L.O. signed a Declaration of 
        Principles on Interim Self-Government Arrangements (hereafter 
        the ``Declaration of Principles'') on September 13, 1993 at the 
        White House;
            (4) Israel and the P.L.O. signed an Agreement on the Gaza 
        Strip and the Jericho Area (hereafter the ``Gaza-Jericho 
        Agreement'') on May 4, 1994 which established a Palestinian 
        Authority for the Gaza and Jericho areas;
            (5) Israel and the P.L.O. signed an Agreement on 
        Preparatory Transfer of Powers and Responsibilities (hereafter 
        the ``Early Empowerment Agreement'') on August 29, 1994 which 
        provided for the transfer to the Palestinian Authority of 
        certain powers and responsibilities in the West Bank outside of 
        the Jericho Area;
            (6) under the terms of the Israeli-Palestinian Interim 
        Agreement on the West Bank and Gaza (hereafter the ``Interim 
        Agreement) signed on September 28, 1995, the Declaration of 
        Principles, the Gaza-Jericho Agreement and the Early 
        Empowerment Agreement, the powers and responsibilities of the 
        Palestinian Authority are to be assumed by an elected 
        Palestinian Council with jurisdiction in the West Bank and Gaza 
        Strip in accordance with the Interim Agreement;
            (7) permanent status negotiations relating to the West Bank 
        and Gaza Strip are scheduled to begin by May 1996;
            (8) the Congress has, since the conclusion of the 
        Declaration of Principles and the P.L.O.'s renunciation of 
        terrorism, provided authorities to the President to suspend 
        certain statutory restrictions relating to the P.L.O., subject 
        to Presidential certifications that the P.L.O. has continued to 
        abide by commitments made in and in connection with or 
        resulting from the good faith implementation of, the 
        Declaration of Principles;
            (9) the P.L.O. commitments relevant to Presidential 
        certifications have included commitments to renounce and 
        condemn terrorism, to submit to the Palestinian National 
        Council for former approval the necessary changes to those 
        articles of the Palestinian Covenant which call for Israel's 
        destruction, and to prevent acts of terrorism and hostilities 
        against Israel; and
            (10) the United States is resolute in its determination to 
        ensure that in providing assistance to Palestinians living 
        under the jurisdiction of the Palestinian Authority or 
        elsewhere, the beneficiaries of such assistance shall be held 
        to the same standard of financial accountability and management 
        control as any other recipient of United States assistance.

                           sense of congress

    Sec. 603. It is the sense of the Congress that the P.L.O. must do 
far more to demonstrate an irrevocable denunciation of terrorism and 
ensure a peaceful settlement of the Middle East dispute, and in 
particular it must--
            (1) submit to the Palestinian National Council for formal 
        approval the necessary changes to those articles of the 
        Palestinian National Covenant which call for Israel's 
        destruction;
            (2) make greater efforts to pre-empt acts of terror, 
        discipline violators and contribute to stemming the violence 
        that has resulted in the deaths of over 140 Israeli and United 
        States citizens since the signing of the Declaration of 
        Principles;
            (3) prohibit participation in its activities and in the 
        Palestinian Authority and its successors by any groups or 
        individuals which continue to promote and commit acts of 
        terrorism;
            (4) cease all anti-Israel rhetoric, which potentially 
        undermines the peace process;
            (5) confiscate all unlicensed weapons;
            (6) transfer and cooperate in transfer proceedings relating 
        to any person accused by Israel to acts of terrorism; and
            (7) respect civil liberties, human rights and democratic 
        norms.

                authority to suspend certain provisions

    Sec. 604. (a) In General.--Subject to subsection (b), beginning on 
the date of enactment of this Act and for eighteen months thereafter, 
the President may suspend for a period of not more than 6 months at a 
time any provision of law specified in subsection (d). Any such 
suspension shall cease to be effective after 6 months, or at such 
earlier date as the President may specify.
    (b) Conditions.--
            (1) Consultations.--Prior to each exercise of the authority 
        provided in subsection (a) or certification pursuant to 
        subsection (c), the President shall consult with the relevant 
        congressional committees. The President may not exercise that 
        authority or make such certification until 30 days after a 
        written policy justification is submitted to the relevant 
        congressional committees.
            (2) Presidential certification.--The President may exercise 
        the authority provided in subsection (a) only if the President 
        certifies to the relevant congressional committees each time he 
        exercises such authority that--
                    (A) it is in the national interest of the United 
                States to exercise such authority;
                    (B) the P.L.O., the Palestinian Authority, and 
                successor entities are complying with all the 
                commitments described in paragraph (4); and
                    (C) funds provided pursuant to the exercise of this 
                authority and the authorities under section 583(a) of 
                Public Law 103-236 and section 3(a) of Public Law 103-
                125 have been used for the purposes for which they were 
                intended.
            (3) Requirement for continuing p.l.o. compliance.--
                    (A) The President shall ensure that P.L.O. 
                performance is continuously monitored and if the 
                President at any time determines that the P.L.O. has 
                not continued to comply with all the commitments 
                described in paragraph (4), he shall so notify the 
                relevant congressional committees and any suspension 
                under subsection (a) of a provision of law specified in 
                subsection (d) shall cease to be effective.
                    (B) Beginning six months after the date of 
                enactment of this Act, if the President on the basis of 
                the continuous monitoring of the P.L.O.'s performance 
                determines that the P.L.O. is not complying with the 
                requirements described in subsection (c), he shall so 
                notify the relevant congressional committees and no 
                assistance shall be provided pursuant to the exercise 
                by the President of the authority provided by 
                subsection (a) until such time as the President makes 
                the certification provided for in subsection (c).
            (4) P.L.O. commitments described.--The commitments referred 
        to in paragraphs (2)(B) and (3)(A) are the commitments made by 
        the P.L.O.--
                    (A) in its letter of September 9, 1993, to the 
                Prime Minister of Israel; in its letter of September 9, 
                1993, to the Foreign Minister of Norway to--
                            (i) recognize the right of the State of 
                        Israel to exist in peace and security;
                            (ii) accept United Nations Security Council 
                        Resolutions 242 and 338;
                            (iii) renounce the use of terrorism and 
                        other acts of violence;
                            (iv) assume responsibility over all P.L.O. 
                        elements and personnel in order to assure their 
                        compliance, prevent violations and discipline 
                        violators;
                            (v) call upon the Palestinian people in the 
                        West Bank and Gaza Strip to take part in the 
                        steps leading to the normalization of life, 
                        rejecting violence and terrorism, and 
                        contributing to peace and stability; and
                            (vi) submit to the Palestine National 
                        Council for formal approval the necessary 
                        changes to the Palestinian National Covenant 
                        eliminating calls for Israel's destruction, and
                    (B) in, and resulting from, the good faith 
                implementation of the Declaration of Principles, 
                including good faith implementation of subsequent 
                agreements with Israel, with particular attention to 
                the objective of preventing terrorism, as reflected in 
                the provisions of the Interim Agreement concerning--
                            (i) prevention of acts of terrorism and 
                        legal measures against terrorists, including 
                        the arrest and prosecution of individuals 
                        suspected of perpetrating acts of violence and 
                        terror;
                            (ii) abstention from and prevention of 
                        incitement, including hostile propaganda;
                            (iii) operation of armed forces other than 
                        the Palestinian Police;
                            (iv) possession, manufacture, sale, 
                        acquisition or importation of weapons;
                            (v) employment of police who have been 
                        convicted of serious crimes or have been found 
                        to be actively involved in terrorist activities 
                        subsequent to their employment;
                            (vi) transfers to Israel of individuals 
                        suspected of, charged with, or convicted of an 
                        offense that falls within Israeli criminal 
                        jurisdiction;
                            (vii) cooperation with the government of 
                        Israel in criminal matters, including 
                        cooperation in the conduct of investigations; 
                        and
                            (viii) exercise of powers and 
                        responsibilities under the agreement with due 
                        regard to internationally accepted norms and 
                        principles of human rights and the rule of law.
            (5) Policy justification.--As part of the President's 
        written policy justification to be submitted to the relevant 
        Congressional Committees pursuant to paragraph (1), the 
        President will report on--
                    (A) the manner in which the P.L.O. has complied 
                with the commitments specified in paragraph (4), 
                including responses to individual acts of terrorism and 
                violence, actions to discipline perpetrators of terror 
                and violence, and actions to preempt acts of terror and 
                violence;
                    (B) the extent to which the P.L.O. has fulfilled 
                the requirements specified in subsection (c);
                    (C) actions that the P.L.O. has taken with regard 
                to the Arab League boycott of Israel;
                    (D) the status and activities of the P.L.O. office 
                in the United States;
                    (E) all United States assistance which benefits, 
                directly or indirectly, the projects, programs, or 
                activities of the Palestinian Authority in Gaza, 
                Jericho, or any other area it may control, since 
                September 13, 1993, including--
                            (i) the obligation and disbursal of such 
                        assistance, by project, activity, and date, as 
                        well as by prime contractor and all 
                        subcontractors;
                            (ii) the organizations or individuals 
                        responsible for the receipt and obligation of 
                        such assistance;
                            (iii) the intended beneficiaries of such 
                        assistance; and
                            (iv) the amount of international donor 
                        funds that benefit the P.L.O. or the 
                        Palestinian Authority in Gaza, Jericho, or any 
                        other area the P.L.O. or the Palestinian 
                        Authority may control, and to which the United 
                        States is a contributor; and
                    (F) statements by senior officials of the P.L.O., 
                the Palestinian Authority, and successor entities that 
                question the right of Israel to exist or urge armed 
                conflict with or terrorism against Israel or its 
                citizens, including an assessment of the degree to 
                which such statements reflect official policy of the 
                P.L.O., the Palestinian Authority, or successor 
                entities.
    (c) Requirement for Continued Provision of Assistance.--Six months 
after the enactment of this Act, United States assistance shall not be 
provided pursuant to the exercise by the President of the authority 
provided by subsection (a), unless and until the President determines 
and so certifies to the Congress that--
            (1) if the Palestinian Council has been elected and assumed 
        its responsibilities, it has, within 2 months, effectively 
        disavowed and thereby nullified the articles of the Palestine 
        National Covenant which call for Israel's destruction, unless 
        the necessary changes to the Covenant have already been 
        approved by the Palestine National Council;
            (2) the P.L.O., the Palestinian Authority, and successor 
        entities have exercised their authority resolutely to establish 
        the necessary enforcement institutions; including laws, police, 
        and a judicial system, for apprehending, transferring, 
        prosecuting, convicting, and imprisoning terrorists;
            (3) the P.L.O., has limited participation in the 
        Palestinian Authority and its successors to individuals and 
        groups that neither engage in nor practice terrorism or 
        violence in the implementation of their political goals;
            (4) the P.L.O., the Palestinian Authority, and successor 
        entities have not provided any financial or material assistance 
        or training to any group, whether or not affiliated with the 
        P.L.O., to carry out actions inconsistent with the Declaration 
        of Principles, particularly acts of terrorism against Israel;
            (5) the P.L.O., the Palestinian Authority, or successor 
        entities have cooperated in good faith with Israeli authorities 
        in--
                    (A) the preemption of acts of terrorism;
                    (B) the apprehension, trial, and punishment of 
                individuals who have planned or committed terrorist 
                acts subject to the jurisdiction of the Palestinian 
                Authority or any successor entity; and
                    (C) the apprehension of and transfer to Israeli 
                authorities of individuals suspected of, charged with, 
                or convicted of, planning or committing terrorist acts 
                subject to Israeli jurisdiction in accordance with the 
                specific provisions of the Interim Agreement;
            (6) the P.L.O., the Palestinian Authority, and successor 
        entities have exercised their authority resolutely to enact and 
        implement laws requiring the disarming of civilians not 
        specifically licensed to possess or carry weapons;
            (7) the P.L.O., the Palestinian Authority, and successor 
        entities have not funded, either partially or wholly, or have 
        ceased funding, either partially or wholly, any office, or 
        other presence of the Palestinian Authority in Jerusalem unless 
        established by specific agreement between Israel and the 
        P.L.O., the Palestinian Authority, or successor entities;
            (8) the P.L.O., the Palestinian Authority, and successor 
        entities are cooperating fully with the Government of the 
        United States on the provision of information on United States 
        nationals known to have been held at any time by the P.L.O. or 
        factions thereof; and
            (9) the P.L.O., the Palestinian Authority, and successor 
        entities have not, without the agreement of the Government of 
        Israel, taken any steps that will change the status of 
        Jerusalem or the West Bank and Gaza Strip, pending the outcome 
        of the permanent status negotiations.
    (d) Provisions That May Be Suspended.--The provisions that may be 
suspended under the authority of subsection (a) are the following:
            (1) Section 307 of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2227) as it applies with respect to the P.L.O. or 
        entities associated with it.
            (2) Section 114 of the Department of State Authorization 
        Act, fiscal years 1984 and 1985 (22 U.S.C. 287e note) as it 
        applies with respect to the P.L.O. or entities associated with 
        it.
            (3) Section 1003 of the Foreign Relations Authorization 
        Act, fiscal years 1988 and 1989 (22 U.S.C. 5202).
            (4) Section 37 of the Bretton Woods Agreement Act (22 
        U.S.C. 286W) as it applies on the granting to the P.L.O. of 
        observer status or other official status at any meeting 
        sponsored by or associated with the International Monetary 
        Fund. As used in this paragraph, the term ``other official 
        status'' does not include membership in the International 
        Monetary Fund.
    (e) Definitions.--As used in this title:
            (1) Relevant congressional committees.--The term ``relevant 
        congressional committees'' mean--
                    (A) the Committee on International Relations, the 
                Committee on Banking and Financial Services, and the 
                Committee on Appropriations of the House of 
                Representatives; and
                    (B) the Committee on Foreign Relations and the 
                Committee on Appropriations of the Senate.
            (2) United states assistance.--The term ``United States 
        assistance'' means any form of grant, loan, loan guarantee, 
        credit, insurance, in kind assistance, or any other form of 
        assistance.

                          transition provision

    Sec. 605. (a) In General.--Section 583(a) of the Foreign Relations 
Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103-236) is 
amended by striking ``November 1, 1995'' and insert ``January 1, 
1996''.
    (b) Consultation.--For purposes of any exercise of the authority 
provided in section 583(a) of the Foreign Relations Authorization Act, 
Fiscal Years 1994 and 1995 (Public Law 103-236) prior to November 15, 
1995, the written policy justification dated June 1, 1995, and 
submitted to the Congress in accordance with section 583(b)(1) of such 
Act, and the consultations associated with such policy justification, 
shall be deemed to satisfy the requirements of section 583(b)(1) of 
such Act.

                         reporting requirement

    Sec. 606. Section 804(b) of the P.L.O. Commitments Compliance Act 
of 1989 (title VIII of Public Law 101-246) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``section (3)(b)(1) of the Middle East Peace Facilitation Act 
        of 1994'' and inserting ``section 604(b)(1) of the Middle East 
        Peace Facilitation Act of 1995''; and
            (2) in paragraph (1), by striking ``section (4)(a) of the 
        Middle East Peace Facilitation Act of 1994 (Oslo commitments)'' 
        and inserting ``section 604(b)(4) of the Middle East Peace 
        Facilitation Act of 1995''.
    This Act may be cited as the ``Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1996''.
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