[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3540 Engrossed in House (EH)]


  2d Session

                               H. R. 3540

_______________________________________________________________________

                                 AN ACT

  Making appropriations for foreign operations, export financing, and 
related programs for the fiscal year ending September 30, 1997, and for 
                            other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
104th CONGRESS
  2d Session
                                H. R. 3540

_______________________________________________________________________

                                 AN ACT


 
  Making appropriations for foreign operations, export financing, and 
related programs for the fiscal year ending September 30, 1997, 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, 1997, 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, $726,000,000 to remain available until September 30, 
1998: 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 2012 for the disbursement of direct loans, loan guarantees, 
insurance and tied-aid grants obligated in fiscal years 1997 and 1998: 
Provided further, That up to $50,000,000 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, 
$47,614,000 (reduced by $1,000,000): 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, 1997.

       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 $30,000,000: 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 1997 and 1998: Provided further, That such sums shall 
remain available through fiscal year 2005 for the disbursement of 
direct and guaranteed loans obligated in fiscal year 1997, and through 
fiscal year 2006 for the disbursement of direct and guaranteed loans 
obligated in fiscal year 1998. 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, $38,000,000, to remain available 
for obligation until September 30, 1998: 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, 1998, 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, 1997, unless 
otherwise specified herein, as follows:

                  agency for international development

                child survival and disease programs fund

    For necessary expenses to carry out the provisions of part I and 
chapter 4 of part II of the Foreign Assistance Act of 1961, for child 
survival, basic education, assistance to combat tropical and other 
diseases, and related activities, in addition to funds otherwise 
available for such purposes, $600,000,000, to remain available until 
expended: 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, (7) not to exceed $98,000,000 for basic education programs 
for children, and (8) a contribution on a grant basis to the United 
Nations Children's Fund (UNICEF) pursuant to section 301 of the Foreign 
Assistance Act of 1961.

                         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, $1,150,000,000, to remain available until September 30, 1998: 
Provided, 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 the total 
amount of funds appropriated under this heading and under the heading 
``Child Survival and Disease Programs Fund'' should be made available 
for each of the sub-Saharan Africa and Latin America and Caribbean 
regions in at least the same proportion as the total amount identified 
in the fiscal year 1997 draft congressional presentation document for 
development assistance for each such region is to the total amount 
requested for development assistance for such fiscal year.

                  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, $190,000,000, to 
remain available until expended.

                           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: Provided, That none of the funds appropriated under this 
heading shall be obligated or expended except as provided through the 
regular notification procedures of the Committees on Appropriations.

         micro and small enterprise development program account

    For the 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, 1998.

                    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, $500,000, to remain available until 
September 30, 1998: 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, 
$6,000,000, 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 the 
benefit of South Africans disadvantaged by apartheid, section 223(j) of 
the Foreign Assistance Act of 1961: Provided further, That funds 
appropriated under this heading for the cost of guaranteed loans may be 
made available for obligation only for activities in South Africa.

     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, $43,826,000.

     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.

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

    For necessary expenses to carry out the provisions of section 667, 
$30,000,000, to remain available until September 30, 1998, 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, $2,336,000,000, to remain available until September 30, 1998: 
Provided, That any funds appropriated under this heading that are made 
available for Israel 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, 1996, whichever is later: 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 chapter 4 of 
part II of the Foreign Assistance Act of 1961, $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, 1998.

          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, $475,000,000, to remain available until 
September 30, 1998, 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.
    (d) None of the funds appropriated under this heading may be made 
available for new housing construction or repair or reconstruction of 
existing housing in Bosnia and Herzegovina unless directly related to 
the efforts of United States troops to promote peace in said country.
    (e) With regard to funds appropriated or otherwise made available 
under this heading for the economic revitalization program in Bosnia 
and Herzegovina, and local currencies generated by such funds 
(including the conversion of funds appropriated under this heading into 
currency used by Bosnia and Herzegovina as local currency and local 
currency returned or repaid under such program)--
            (1) the Administrator of the Agency for International 
        Development shall provide written approval for grants and loans 
        prior to the obligation and expenditure of funds for such 
        purposes, and prior to the use of funds that have been returned 
        or repaid to any lending facility or grantee; and
            (2) the provisions of section 531 of this Act shall apply.

  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, $590,000,000, to remain 
available until September 30, 1998: Provided, That the provisions of 
section 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 and reports to the Committees on Appropriations 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)(1) 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 
and reports to the Committees on Appropriations 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.
    (l) 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 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.
    (m)(1) Notwithstanding section 907 of the FREEDOM Support Act or 
any other provision of law, nongovernmental organizations and private 
voluntary organizations shall not be precluded from using facilities or 
vehicles of the Government of Azerbaijan to provide humanitarian 
assistance to refugees and internally displaced persons in Azerbaijan 
with funds made available under this heading, or from using such 
assistance to make necessary repairs to such facilities (such as health 
clinics and housing) or vehicles that are used to provide the 
assistance.
    (2) Humanitarian assistance may be provided with funds made 
available under this heading to refugees and internally displaced 
persons in Azerbaijan only if humanitarian assistance is also provided 
to refugees and internally displaced persons in Nagorno-Karabagh with 
funds made available under this heading, in accordance with paragraph 
(3).
    (3) Humanitarian assistance may be provided with funds made 
available under this heading to refugees and internally displaced 
persons in Azerbaijan and Nagorno-Karabagh only in the proportion that 
the number of refugees and internally displaced persons in Azerbaijan 
and Nagorno-Karabagh, respectively, bears to the total number of 
refugees and internally displaced persons in both Azerbaijan and 
Nagorno-Karabagh, but in no case more than $7 to Azerbaijan for every 
dollar to Nagorno-Karabagh.

                          Independent Agencies

                     african development foundation

    For necessary expenses to carry out the provisions of title V of 
the International Security and Development Cooperation Act of 1980, 
Public Law 96-533, and to make such contracts and commitments without 
regard to fiscal year limitations, as provided by 31 U.S.C. 9104, 
$11,500,000: Provided, That when, with the permission of the President 
of the Foundation, funds made available to a grantee are invested 
pending disbursement, the resulting interest is not required to be 
deposited in the United States Treasury if the grantee uses the 
resulting interest for the purpose for which the grant was made: 
Provided further, That this provision applies with respect to both 
interest earned before and interest earned after the enactment of this 
provision: Provided further, That notwithstanding section 505(a)(2) of 
the African Development Foundation Act, in exceptional circumstances 
the board of directors of the Foundation may waive the $250,000 
limitation contained in that section with respect to a project: 
Provided further, That the Foundation shall provide a report to the 
Committees on Appropriations after each time such waiver authority is 
exercised.

                       inter-american foundation

    For expenses necessary to carry out the functions of the Inter-
American Foundation in accordance with the provisions of section 401 of 
the Foreign Assistance Act of 1969, and to make such contracts and 
commitments without regard to fiscal year limitations, as provided by 
31 U.S.C. 9104, $20,000,000.

                              peace corps

    For expenses necessary to carry out the provisions of the Peace 
Corps Act (75 Stat. 612), $212,000,000, 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, 1998.

                          Department of State

                    international narcotics control

    For necessary expenses to carry out section 481 of the Foreign 
Assistance Act of 1961, $150,000,000: Provided, That during fiscal year 
1997, the Department of State may also use the authority of section 608 
of the Act, 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, $650,000,000: Provided, That not more than $12,000,000 shall be 
available for administrative expenses: Provided further, That 
obligations of funds to the United Nations High Commissioner for 
Refugees for support of refugees from Rwanda shall be subject to the 
regular notification procedures of the Committees on Appropriations.

                    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 Act which would limit the amount of funds which could be 
appropriated for this purpose.

    nonproliferation, anti-terrorism, demining and related programs

    For necessary expenses for nonproliferation, anti-terrorism and 
related programs and activities, $135,000,000, to carry out the 
provisions of chapter 8 of part II of the Foreign Assistance Act of 
1961 for anti-terrorism assistance, section 504 of the FREEDOM Support 
Act for the Nonproliferation and Disarmanent Fund, section 23 of the 
Arms Export Control Act for demining activities, notwithstanding any 
other provision of law, including activities implemented through 
nongovernmental and international organizations, section 301 of the 
Foreign Assistance Act of 1961 for a voluntary contribution to the 
International Atomic Energy Agency (IAEA) and a voluntary contribution 
to the Korean Peninsula Energy Development Organization (KEDO), and for 
the acquisition and provision of goods and services, or for grants to 
Israel necessary to support the eradication of terrorism in and around 
Israel: Provided, That of this amount not to exceed $15,000,000, to 
remain available until expended, may be made available for the 
Nonproliferation and Disarmament Fund, notwithstanding any other 
provision of law, to promote bilateral and multilateral activities 
relating to nonproliferation and disarmament: 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 such funds shall be 
subject to the regular notification procedures of the Committees on 
Appropriations: 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 not to exceed 
$13,000,000 may be made available to the Korean Peninsula Energy 
Development Organization (KEDO) only for administrative expenses and 
heavy fuel oil costs associated with the Agreed Framework: Provided 
further, That such funds 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, $45,000,000 (reduced by 
$1,525,000): Provided, 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 
international 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, 
$3,222,250,000: Provided, That funds appropriated by this paragraph 
that are made available for Israel and Egypt shall be made available 
only as grants: Provided further, That the funds appropriated by this 
paragraph that are made available for Israel shall be disbursed within 
thirty days of enactment of this Act or by October 31, 1996, 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 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, $35,000,000: 
Provided, That these funds are available to subsidize gross obligations 
for the principal amount of direct loans of not to exceed $323,815,000: 
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: $103,471,000 only for Greece and $147,816,000 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, Liberia, and Guatemala: 
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 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 1997 
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, $65,000,000: 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 
contribution to the Global Environment Facility (GEF), $30,000,000, to 
remain available until September 30, 1998.

       contribution to the international development association

    For payment to the International Development Association by the 
Secretary of the Treasury, $525,000,000, for the United States 
contribution to the tenth replenishment, to remain available until 
expended: Provided, That none of the funds made available for the 
International Development Association may be obligated until the 
Secretary of the Treasury submits a report to the Committees on 
Appropriations detailing the efforts made by United States officials, 
during discussions leading to an agreement to undertake the eleventh 
replenishment of the Association, to oppose the formation of an Interim 
Trust Fund, and fully describing the adverse impacts to the United 
States resulting from the Interim Trust Fund and other potential 
alternative funding structures for the Association during 1996 and 
1997.

         contribution to the international finance corporation

    For payment to the International Finance Corporation by the 
Secretary of the Treasury, $6,656,000, for the United States share of 
the increase in subscriptions to capital stock, to remain available 
until expended.

          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, $25,610,667, 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 $1,503,718,910.

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, $27,500,000 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, $11,916,447, for the United States 
share of the paid-in share portion of the initial capital subscription, 
to remain available until expended.

              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 $27,805,043.

                    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, $50,625,000, 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, $136,000,000: 
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 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 $25,000,000 of 
the funds appropriated under this heading may be made available to the 
UNFPA: Provided further, That none of the funds appropriated under this 
heading shall be made available to the UNFPA unless the Secretary of 
State determines and reports to the Congress that UNFPA programs in the 
People's Republic of China have ended and the United States has 
received assurances that the UNFPA will not resume such programs during 
fiscal year 1997: Provided further, That none of the funds appropriated 
under this heading may be made available to the Korean Peninsula Energy 
Development Organization (KEDO).

                      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 ``Nonproliferation, Anti-terrorism, Demining and Related 
Programs'') pursuant to this Act, for carrying out the Foreign 
Assistance Act of 1961, may be used, except for purposes of nuclear 
safety, to finance the export of nuclear equipment, fuel, or 
technology.

        prohibition against direct funding for certain countries

    Sec. 507. None of the funds appropriated or otherwise made 
available pursuant to this Act shall be obligated or expended to 
finance directly any assistance or reparations to Cuba, Iraq, Libya, 
North Korea, Iran, Sudan, or Syria: 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.

                  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, 1997, 
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 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 1997.

                         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 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 ``Child Survival and Disease Programs 
Fund'', ``Development Assistance'', ``Debt restructuring'', 
``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, anti-terrorism, demining and related programs'', 
``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 20 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 10 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 other Act, 
including any prior Act requiring notification in accordance with the 
regular notification procedures of the Committees on Appropriations, 
may be waived if failure to do so would pose a substantial risk to 
human health or welfare: 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, 1998.

              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.

               population assistance funding limitations

    Sec. 518A. (a) In General.--
            (1) Notwithstanding any other provision of this Act, funds 
        appropriated by this Act for population assistance activities 
        may be made available for a foreign private or nongovernmental 
        organization only if the organization certifies that it will 
        not during the period for which the funds are made available, 
        perform abortions in any foreign country, except where the life 
        of the mother would be endangered if the fetus were carried to 
        term or in cases of forcible rape or incest.
            (2) Paragraph (1) may not be construed to apply to the 
        treatment of injuries or illnesses caused by legal or illegal 
        abortions or to assistance provided directly to the government 
        of a country.
    (b) Lobbying Activities.--
            (1) None of the funds made available under this Act may be 
        used to lobby for or against abortion, and, notwithstanding any 
        other provision of this Act or other law, none of the funds 
        appropriated by this Act for population assistance activities 
        may be made available for any foreign private or 
        nongovernmental organization until the organization certifies 
        that it will not during the period for which the funds are made 
        available, violate the laws of any foreign country concerning 
        the circumstances under which abortion is permitted, regulated, 
        or prohibited, or engage in any activity or effort in a foreign 
        country to alter the laws or governmental policies of any 
        foreign country concerning the circumstances under which 
        abortion is permitted, regulated, or prohibited.
            (2) Notwithstanding any other provision of this Act, 
        paragraph (1) shall not apply to activities in opposition to 
        coercive abortion or involuntary sterilization.
    (c) Notwithstanding subsections (a)(1) and (b)(1), a foreign 
private or nongovernmental organization may receive funds appropriated 
by this Act for population assistance activities in the absence of the 
certifications required in said subsections, but funds made available 
for each such organization by this Act shall not exceed 50 percent of 
the funds made available to the organization during fiscal year 1995. 
Funds for population assistance activities may not be made available 
for any foreign private or nongovernmental organization that did not 
receive such funds during fiscal year 1995 unless the organization 
meets the certification requirements of subsections (a)(1) and (b)(1).
    (d) Funds made available pursuant to subsection (c) shall be 
apportioned on a monthly basis for the first four months of fiscal year 
1997 only, and monthly disbursements during such period to each 
organization covered by said subsection may not exceed 8.34 percent of 
the total each such organization could receive pursuant to said 
subsection.
    (e) Subsections (a), (b) and (c) apply to funds made available for 
a foreign organization either directly or as a subcontractor or sub-
grantee, and the required certifications apply to activities in which 
the organization engages either directly or through a subcontractor or 
sub-grantee.
    (f) Funds appropriated or otherwise made available in title II of 
this Act for population planning activities or other population 
assistance may be made available for obligation and expenditure in an 
amount not to exceed 65 percent of the total amount appropriated or 
otherwise made available by Public Law 103-306 and Public Law 104-19 
for such activities for fiscal year 1995.

                         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, Haiti, Liberia, 
Pakistan, Peru, Russia, Serbia, South Africa, Sudan, or Zaire except as 
provided through the regular notification procedures of the Committees 
on Appropriations.

              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 ``1996'' and inserting in lieu thereof ``1997''.

                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.

       prohibition on bilateral assistance to terrorist countries

    Sec. 527. (a) Funds appropriated for bilateral assistance under any 
heading of this Act and funds appropriated under any such heading in a 
provision of law enacted prior to enactment of this Act, shall not be 
made available to any country which the President determines--
            (1) grants sanctuary from prosecution to any individual or 
        group which has committed an act of international terrorism, or
            (2) otherwise supports international terrorism.
    (b) The President may waive the application of subsection (a) to a 
country if the President determines that national security or 
humanitarian reasons justify such waiver. The President shall publish 
each waiver in the Federal Register and, at least 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 procedures of the Committees on 
Appropriations, the authority of section 23(a) of the Arms Export 
Control Act may be used to provide financing to Israel, Egypt and NATO 
and major non-NATO allies for the procurement by leasing (including 
leasing with an option to purchase) of defense articles from United 
States commercial suppliers, not including Major Defense Equipment 
(other than helicopters and other types of aircraft having possible 
civilian application), if the President determines that there are 
compelling foreign policy or national security reasons for those 
defense articles being provided by commercial lease rather than by 
government-to-government sale under such Act.

                         competitive insurance

    Sec. 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 
shall be used for the purpose for which the assistance was provided to 
that organization.

                           separate accounts

    Sec. 531. (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 necessary steps to ensure that the 
equivalent of the local currencies disbursed pursuant to subsection 
(a)(2)(A) from the separate account established pursuant to subsection 
(a)(1) are used for the purposes agreed upon pursuant to subsection 
(a)(2).
    (4) Termination of Assistance Programs.--Upon termination of 
assistance to a country under 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.
    (6) Reporting Requirement.--The Administrator of the Agency for 
International Development shall report on an annual basis as part of 
the justification documents submitted to the Committees on 
Appropriations on the use of local currencies for the administrative 
requirements of the United States Government as authorized in 
subsection (a)(2)(B), and such report shall include the amount of local 
currency (and United States dollar equivalent) used and/or to be used 
for such purpose in each applicable country.
    (b) Separate Accounts for Cash Transfers.--(1) If assistance is 
made available to the government of a foreign country, under 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 
                         financing institutions

    Sec. 532. (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. 533. (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. 534. (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 1997, 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. 535. For the four-year period beginning on October 1, 1996, 
the President shall ensure that excess defense articles will be made 
available under section 516 and 519 of the Foreign Assistance Act of 
1961 consistent with the manner in which the President made available 
excess defense articles under those sections during the four-year 
period that began on October 1, 1992, pursuant to section 573(e) of the 
Foreign Operations, Export Financing, Related Programs Appropriations 
Act, 1990.

                          cash flow financing

    Sec. 536. 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. 537. Unless expressly provided to the contrary, provisions of 
this or any other Act, including provisions contained in prior Acts 
authorizing or making appropriations for foreign operations, export 
financing, and related programs, shall not be construed to prohibit 
activities authorized by or conducted under the Peace Corps Act, the 
Inter-American Foundation Act, or the African Development Foundation 
Act. The appropriate agency shall promptly report to the Committees on 
Appropriations whenever it is conducting activities or is proposing to 
conduct activities in a country for which assistance is prohibited.

                  impact on jobs in the united states

    Sec. 538. 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 and herzegovina

    Sec. 539. (a) The President is authorized to direct the transfer, 
subject to notification of the Committees on Appropriations, to the 
government of Bosnia and Herzegovina, without reimbursement, of defense 
articles from the stocks of the Department of Defense and defense 
services of the Department of Defense, of an aggregate value that 
equals the difference between $100,000,000 and the aggregate value of 
any such articles and services that were transferred under the 
authority of Section 540 of Public Law 104-107, the Foreign Operations, 
Export Financing, and Related Programs Appropriations Act, 1996: 
Provided, That the President certifies in a timely fashion to the 
Congress that the transfer of such defense articles would assist that 
nation in self-defense and thereby promote the security and stability 
of the region.
    (b) 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.
    (c) 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. 540. (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 and Herzegovina that is acceptable 
to the parties.

                          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 and 
Herzegovina, 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 1997, the President may use up to 
$50,000,000 under the authority of section 451 of the Foreign 
Assistance Act of 1961, notwithstanding the funding ceiling contained 
in subsection (a) of that section.
    (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 and in other regions consistent with the 
provisions of section 534(b) of the Foreign Assistance Act of 1961, 
except that programs to enhance protection of participants in judicial 
cases may be conducted notwithstanding section 660 of that Act.
    (b) Funds made available pursuant to this section may be made 
available notwithstanding section 534(c) and the second and third 
sentences of section 534(e) of the Foreign Assistance Act of 1961. 
Funds made available pursuant to subsection (a) for Bolivia, Colombia 
and Peru may be made available notwithstanding section 534(c) and the 
second sentence of section 534(e) of the Foreign Assistance Act of 
1961.

                       eligibility for assistance

    Sec. 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 1997, 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.

                 prohibition on publicity or propaganda

    Sec. 546. No part of any appropriation contained in this Act shall 
be used for publicity or propaganda purposes within the United States 
not authorized before the date of enactment of this Act by the 
Congress: Provided, That not to exceed $750,000 may be made available 
to carry out the provisions of section 316 of Public Law 96-533.

                       use of american resources

    Sec. 547. 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. 548. 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. 549. 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. 550. 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. 551. (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. 552. (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. 553. None of the funds appropriated by this Act may be 
obligated for assistance for the Palestine Liberation Organization for 
the West Bank and Gaza unless the President has exercised the authority 
under section 604(a) of the Middle East Peace Facilitation Act of 1995 
(title VI of Public Law 104-107) or any other legislation to suspend or 
make inapplicable section 307 of the Foreign Assistance Act of 1961 and 
that suspension is still in effect: Provided, That if the President 
fails to make the certification under section 604(b)(2) of the Middle 
East Peace Facilitation Act of 1995 or to suspend the prohibition under 
other legislation, funds appropriated by this Act may not be obligated 
for assistance for the Palestine Liberation Organization for the West 
Bank and Gaza.

                 export financing transfer authorities

    Sec. 554. Not to exceed 5 percent of any appropriation other than 
for administrative expenses made available for fiscal year 1997 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. 555. If the President determines that doing so will contribute 
to a just resolution of charges regarding genocide or other violations 
of international humanitarian law, the President may direct a drawdown 
pursuant to section 552(c) of the Foreign Assistance Act of 1961, as 
amended, of up to $50,000,000 of commodities and services for the 
United Nations War Crimes Tribunal established with regard to the 
former Yugoslavia by the United Nations Security Council or such other 
tribunals or commissions as the Council may establish to deal with such 
violations, without regard to the ceiling limitation contained in 
paragraph (2) thereof: Provided, That the determination required under 
this section shall be in lieu of any determinations otherwise required 
under section 552(c): Provided further, That 60 days after the date of 
enactment of this Act, and every 180 days thereafter, the Secretary of 
State shall submit a report to the Committees on Appropriations 
describing the steps the United States Government is taking to collect 
information regarding allegations of genocide or other violations of 
international law in the former Yugoslavia and to furnish that 
information to the United Nations War Crimes Tribunal for the former 
Yugoslavia.

                               landmines

    Sec. 556. 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.

           restrictions concerning the palestinian authority

    Sec. 557. 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. 558. 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.

                        humanitarian assistance

    Sec. 559. (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 (other than funds appropriated in this Act 
under the heading ``Economic Support Fund'') may be made available 
without 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. 560. (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) support for 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).

                     equitable allocation of funds

    Sec. 561. Not more than 20 percent of the funds appropriated by 
this Act to carry out the provisions of sections 103 through 106 and 
chapter 4 of part II of the Foreign Assistance Act of 1961, that are 
made available for Latin America and the Caribbean region may be made 
available, through bilateral and Latin America and the Caribbean 
regional programs, to provide assistance for any country in such 
region.

            purchase of american-made equipment and products

    Sec. 562. (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 of funds for north american development bank

    Sec. 563. 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.

                 international development association

    Sec. 564. 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, 
$525,000,000 for payment by the Secretary of the Treasury.

                  special debt relief for the poorest

    Sec. 565. (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. 566. (a) Loans Eligible for Sale, Reduction, or 
Cancellation.--
            (1) Authority to sell, reduce, or cancel certain loans.--
        Notwithstanding any other provision of law, the President may, 
        in accordance with this section, sell to any eligible purchaser 
        any concessional loan or portion thereof made before January 1, 
        1995, pursuant to the Foreign Assistance Act of 1961, to the 
        government of any eligible country as defined in section 702(6) 
        of that Act or on receipt of payment from an eligible 
        purchaser, reduce or cancel such loan or portion thereof, only 
        for the purpose of facilitating--
                    (A) debt-for-equity swaps, debt-for-development 
                swaps, or debt-for-nature swaps; or
                    (B) a debt buyback by an eligible country of its 
                own qualified debt, only if the eligible country uses 
                an additional amount of the local currency of the 
                eligible country, equal to not less than 40 percent of 
                the price paid for such debt by such eligible country, 
                or the difference between the price paid for such debt 
                and the face value of such debt, to support activities 
                that link conservation and sustainable use of natural 
                resources with local community development, and child 
                survival and other child development, in a manner 
                consistent with sections 707 through 710 of the Foreign 
                Assistance Act of 1961, if the sale, reduction, or 
                cancellation would not contravene any term or condition 
                of any prior agreement relating to such loan.
            (2) Terms and conditions.--Notwithstanding any other 
        provision of law, the President shall, in accordance with this 
        section, establish the terms and conditions under which loans 
        may be sold, reduced, or canceled pursuant to this section.
            (3) Administration.--The Facility, as defined in section 
        702(8) of the Foreign Assistance Act of 1961, shall notify the 
        administrator of the agency primarily responsible for 
        administering part I of the Foreign Assistance Act of 1961 of 
        purchasers that the President has determined to be eligible, 
        and shall direct such agency to carry out the sale, reduction, 
        or cancellation of a loan pursuant to this section. Such agency 
        shall make an adjustment in its accounts to reflect the sale, 
        reduction, or cancellation.
            (4) Limitation.--The authorities of this subsection shall 
        be available only to the extent that appropriations for the 
        cost of the modification, as defined in section 502 of the 
        Congressional Budget Act of 1974, are made in advance.
    (b) Deposit of Proceeds.--The proceeds from the sale, reduction, or 
cancellation of any loan sold, reduced, or canceled pursuant to this 
section shall be deposited in the United States Government account or 
accounts established for the repayment of such loan.
    (c) Eligible Purchasers.--A loan may be sold pursuant to subsection 
(a)(1)(A) only to a purchaser who presents plans satisfactory to the 
President for using the loan for the purpose of engaging in debt-for-
equity swaps, debt-for-development swaps, or debt-for-nature swaps.
    (d) Debtor Consultations.--Before the sale to any eligible 
purchaser, or any reduction or cancellation pursuant to this section, 
of any loan made to an eligible country, the President should consult 
with the country concerning the amount of loans to be sold, reduced, or 
canceled and their uses for debt-for-equity swaps, debt-for-development 
swaps, or debt-for-nature swaps.
    (e) Availability of Funds.--The authority provided by subsection 
(a) may be used only with regard to funds appropriated by this Act 
under the heading ``Debt restructuring''.

                                liberia

    Sec. 567. 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.

                               guatemala

    Sec. 568. (a) Funds provided in this Act may be made available for 
the Guatemalan military 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 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 ceasefire 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.

          sanctions against countries harboring war criminals

    Sec. 569. (a) Bilateral Assistance.--The President is authorized to 
withhold funds appropriated by this Act under the Foreign Assistance 
Act of 1961 or the Arms Export Control Act for any country described in 
subsection (c).
    (b) Multilateral Assistance.--The Secretary of the Treasury should 
instruct the United States executive directors of the international 
financial institutions to work in opposition to, and vote against, any 
extension by such institutions of financing or financial or technical 
assistance to any country described in subsection (c).
    (c) Sanctioned Countries.--A country described in this subsection 
is a country the government of which knowingly grants sanctuary to 
persons in its territory for the purpose of evading prosecution, where 
such persons--
            (1) have been indicted by the International Criminal 
        Tribunal for 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. 570. (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, including the murders of 
        Mireille Bertin, Michel Gonzalez, and Jean Hubert Feuille; 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 on a 
quarterly basis if he determines and certifies to the appropriate 
committees of Congress that it is in the national interest of the 
United States.
    (d) The authority contained in the previous subsection to make such 
a determination may be exercised by the President only and may not be 
delegated.

                   limitation of assistance to turkey

    Sec. 571. Not more than $25,000,000 of the funds appropriated in 
this Act under the heading ``Economic Support Fund'' may be made 
available to the Government of Turkey.

                      reports regarding hong kong

    Sec. 572. (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, 1997,'' after ``March 31, 1996,''.
    (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) Beijing's plans to replace the elected legislature with 
        an appointed body;
            (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.

limitation on use of funds for purchase of products not made in america

    Sec. 573. None of the funds appropriated in this Act may be made 
available to the government of any foreign country when it is made 
known to the Federal official having authority to obligate or expend 
such funds that--
            (1) the funds are to be used to purchase any equipment or 
        product made in a country other than such foreign country or 
        the United States; and
            (2) substantially similar equipment or products are made in 
        the United States and available for purchase at a price that is 
        not more than 10 percent higher.

                   limitation on assistance to turkey

    Sec. 574. Not more than $22,000,000 of the funds appropriated in 
this Act under the heading ``Economic Support Fund'' may be made 
available to the Government of Turkey, except when it is made known to 
the Federal official having authority to obligate or expend such funds 
that the Government of Turkey has (1) joined the United States in 
acknowledging the atrocity committed against the Armenian population of 
the Ottoman Empire from 1915 to 1923; and (2) taken all appropriate 
steps to honor the memory of the victims of the Armenian genocide.

                limitation on foreign military financing

    Sec. 575. None of the funds made available under the heading 
``Foreign Military Financing Program'' may be made available for any 
country when it is made known to the President that the government of 
such country has not agreed to the Department of Defense conducting 
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.

                limitation under arms export control act

    Sec. 576. Not more than $100,000,000 of the funds made available 
under the heading ``Foreign Military Financing Program'' may be made 
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.

                   limitation on assistance to mexico

    Sec. 577. None of the funds appropriated or otherwise made 
available by this Act may be obligated or expended for the Government 
of Mexico, except if it is made known to the Federal entity or official 
to which funds are appropriated under this Act that--
            (1) the Government of Mexico is taking actions to reduce 
        the amount of illegal drugs entering the United States from 
        Mexico; and
            (2) the Government of Mexico--
                    (A) is taking effective actions to apply vigorously 
                all law enforcement resources to investigate, track, 
                capture, incarcerate, and prosecute individuals 
                controlling, supervising, or managing international 
                narcotics cartels or other similar entities and the 
                accomplices of such individuals, individuals 
                responsible for, or otherwise involved in, corruption, 
                and individuals involved in money-laundering;
                    (B) is pursuing international anti-drug trafficking 
                initiatives;
                    (C) is cooperating fully with international efforts 
                at narcotics interdiction; and
                    (D) is cooperating fully with requests by the 
                United States for assistance in investigations of 
                money-laundering violations and is making progress 
                toward implementation of effective laws to prohibit 
                money-laundering.
    This Act may be cited as the ``Foreign Operations, Export 
Financing, and Related Programs Appropriations Act, 1997''.

            Passed the House of Representatives June 11, 1996.

            Attest:

                                                                 Clerk.