[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 961 Placed on Calendar Senate (PCS)]





                                                       Calendar No. 132

104th CONGRESS

  1st Session

                                 S. 961

                          [Report No. 104-99]

_______________________________________________________________________

                                 A BILL

To amend the Foreign Assistance Act of 1961 and the Arms Export Control 
     Act to authorize reduced levels of appropriations for foreign 
   assistance programs for fiscal years 1996 and 1997, and for other 
                               purposes.

_______________________________________________________________________

                June 23 (legislative day, June 19), 1995

                 Read twice and placed on the calendar





                                                       Calendar No. 132
104th CONGRESS
  1st Session
                                 S. 961

                          [Report No. 104-99]

To amend the Foreign Assistance Act of 1961 and the Arms Export Control 
     Act to authorize reduced levels of appropriations for foreign 
   assistance programs for fiscal years 1996 and 1997, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 23 (legislative day, June 19), 1995

   Mr. Helms, from the Committee on Foreign Relations, reported the 
    following original bill; which was read twice and placed on the 
                                calendar

_______________________________________________________________________

                                 A BILL


 
To amend the Foreign Assistance Act of 1961 and the Arms Export Control 
     Act to authorize reduced levels of appropriations for foreign 
   assistance programs for fiscal years 1996 and 1997, and for other 
                               purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Congressional findings; statement of policy.
Sec. 4. Definition.
                TITLE I--DEFENSE AND SECURITY ASSISTANCE

            subchapter a--foreign military financing program
Sec. 101. Authorization of appropriations.
Sec. 102. Loans for Greece and Turkey.
Sec. 103. Loans for European countries emerging from communist 
                            domination.
Sec. 104. Terms of loans.
Sec. 105. Nonrepaymensubchapter b--other assistance
Sec. 111. Defense drawdown special authorities.
Sec. 112. Stockpiles of defense articles.
Sec. 113. Transfer of excess defense articles.
        Chapter 2--International Military Education and Training

Sec. 121. Authorization of appropriations.
Sec. 122. Additional requirements relating to international military 
                            education and training.
                  Chapter 3--Antiterrorism Assistance

Sec. 131. Authorization of appropriations.
Sec. 132. Antiterrorism training assistance.
                Chapter 4--Narcotics Control Assistance

Sec. 141. Authorization of appropriations.
                   Chapter 5--Peacekeeping Operations

Sec. 151. Peacekeeping operations.
                      Chapter 6--Other Provisions

Sec. 161. Standardization of congressional review procedures for arms 
                            transfers.
Sec. 162. Standardization of third country transfers of defense 
                            articles.
Sec. 163. Increased standardization, rationalization, and 
                            interoperability of assistance and sales 
                            programs.
Sec. 164. Repeal of price and availability reporting requirement 
                            relating to proposed sale of defense 
                            articles and services.
Sec. 165. Definition of significant military equipment.
Sec. 166. Designation of major non-NATO allies.
Sec. 167. Competitive pricing for sales of defense articles and 
                            services.
Sec. 168. Depleted uranium ammunition.
Sec. 169. Police training for certain foreign countries.
Sec. 170. Utilization of defense articles and services.
Sec. 171. Reports on arms sales.
Sec. 172. Elimination of the requirement for recoupment of nonrecurring 
                            cost charges.
Sec. 173. Reduction in valuation of defense articles not intended for 
                            replacement.
Sec. 174. Elimination of special defense acquisition fund annual 
                            report.
                 TITLE II--TRADE AND EXPORT DEVELOPMENT

Sec. 201. Trade and Development Agency.
Sec. 202. Countries in transition to a free market economy.
    TITLE III--PRIVATE SECTOR, ECONOMIC, AND DEVELOPMENT ASSISTANCE

               Chapter 1--Private Sector Enterprise Funds

Sec. 301. Support for private sector enterprise funds.
Sec. 302. Micro- and small-enterprise development credit program.
      Chapter 2--Development Assistance Fund and Other Authorities

Sec. 311. Development Assistance Fund.
Sec. 312. Economic Support Fund.
Sec. 313. Nonintervention concerning abortion.
Sec. 314. Host country cost-sharing.
Sec. 315. Private funding of private and voluntary organizations.
Sec. 316. Documentation requested of private and voluntary 
                            organizations.
Sec. 317. Prohibition on use of foreign assistance by private and 
                            voluntary organizations for office 
                            equipment in the United States.
Sec. 318. Prohibition on circumvention of aid restrictions.
Sec. 319. Foreign government parking fines.
Sec. 320. Limitation on waiver of sanctions against major drug 
                            producing and drug-transit countries.
Sec. 321. Engaging the United States private sector in development.
                         Chapter 3--Peace Corps

Sec. 331. Peace Corps.
Sec. 332. Deadlines for evaluation of and report on health care 
                            services provided to Peace Corps 
                            volunteers.
         Chapter 4--International Disaster Assistance Programs

Sec. 341. International disaster assistance.
            TITLE IV--PEACE AND SECURITY IN THE MIDDLE EAST

Sec. 401. Economic Support Fund assistance for Israel.
Sec. 402. Foreign Military Financing for Israel.
Sec. 403. Economic Support Fund assistance for Egypt.
Sec. 404. Foreign Military Financing for Egypt.
Sec. 405. Establishment of a free trade area for Taba, Elat, and Aqaba.
Sec. 406. Continuation of free trade treatment for Gaza and Jericho.
Sec. 407. Authorization for an industrial park on the border between 
                            the territories and Israel.
                     TITLE V--OTHER REGIONAL ISSUES

Sec. 501. Lending to the independent states of the former Soviet Union 
                            required to be secured by certain export 
                            earnings.
Sec. 502. Restrictions on assistance for Nicaragua.
Sec. 503. Restrictions on assistance to North Korea and the Korean 
                            Peninsula Energy Development Organization.
Sec. 504. Future of the United States military presence in Panama.
Sec. 505. Eligibility of Panama under the Arms Export Control Act.
Sec. 506. Certification requirements for Colombia with respect to 
                            illegal drug production and drug 
                            trafficking activity for fiscal years 1996 
                            and 1997.
Sec. 507. Report on Israeli debt.
Sec. 508. Report on involvement by senior Mexican government officials 
                            in illegal drug trafficking.
Sec. 509. Prohibition on anti-narcotics assistance to Burma.
Sec. 510. Clarification of restrictions under section 620E of the 
                            Foreign Assistance Act of 1961.
Sec. 511. Statement of policy and requirement for report on oil 
                            pipeline through Azerbaijan, Armenia, 
                            Georgia, and Turkey.
Sec. 512. Reports on eradication of production and trafficking in 
                            narcotic drugs and marijuana.
Sec. 513. Reports on commercial disputes with Pakistan.
Sec. 514. Nonproliferation and Disarmament Fund.
Sec. 515. Russian nuclear technology agreement with Iran.
Sec. 516. Supporting a resolution to the long-standing dispute 
                            regarding Cyprus.
Sec. 517. Reports on certain activities of the City of Moscow 
                            government.
Sec. 518. Statement of policy on Africa.
           TITLE VI--INTERNATIONAL ORGANIZATIONS AND PROGRAMS

Sec. 601. Voluntary contributions; United Nations Children's Fund.
Sec. 602. United Nations Fund for Population Activities.
Sec. 603. Withholding of United States proportionate share for programs 
                            of international organizations.
Sec. 604. Reports on voluntary contributions to international 
                            organizations by all United States 
                            Government agencies.
Sec. 605. Restrictions on funding for United Nations Development 
                            Program.
Sec. 606. Replenishment of the Asian Development Bank.
Sec. 607. Republic of China (Taiwan's) participation in the United 
                            Nations.
Sec. 608. Republic of China (Taiwan's) participation in the World Trade 
                            Organization.
         TITLE VII--SPECIAL AUTHORITIES AND GENERAL PROVISIONS

                   Chapter 1--Reporting Requirements

Sec. 701. Annual allocation reports.
Sec. 702. Report on expropriation of United States property.
                     Chapter 2--General Provisions

Sec. 711. National interest, economic freedom, and graduation 
                            requirements.
Sec. 712. Termination of assistance.
Sec. 713. Prohibition on assistance to foreign governments engaged in 
                            espionage against the United States.
Sec. 714. Foreign state support for acts of international terrorism.
Sec. 715. Restriction on assistance to nuclear proliferators.
Sec. 716. Prohibition on foreign assistance to foreign governments not 
                            implementing extradition treaties.
Sec. 717. Impact on jobs in the United States.
Sec. 718. Nonapplicability of cargo preference requirements.
Sec. 719. Prohibition on foreign assistance to foreign governments 
                            employing mercenary forces.
Sec. 720. Transportation expenses for delivery of humanitarian 
                            assistance.
Sec. 721. Prohibition on assistance to countries blocking or 
                            restricting humanitarian aid corridors.
                           Chapter 3--Repeals

Sec. 731. Repeal of obsolete provisions.
                       TITLE VIII--EFFECTIVE DATE

Sec. 801. Effective date.
SEC. 3. CONGRESSIONAL FINDINGS; STATEMENT OF POLICY.

    (a) Congressional Findings.--Congress finds the following:
            (1) The United States has been more generous than any other 
        country in providing assistance to other countries, as 
        evidenced by the following:
                    (A) Since 1945, American taxpayers have provided 
                more than $450,000,000,000 in foreign aid. Because 
                these foreign aid expenditures and the interest accrued 
                thereon have been financed by borrowing, the actual 
                cost to United States taxpayers has been nearly 
                $2,000,000,000,000.
                    (B) In fiscal year 1995, the United States provided 
                foreign aid to 148 countries.
                    (C) For fiscal year 1996, the President has 
                recommended assistance to 145 countries.
            (2) No country is entitled to United States foreign 
        assistance. Many recipients of United States foreign assistance 
        have received this assistance for 40 years and must recognize 
        that the United States does not have the luxury of providing 
        unlimited assistance.
            (3) Despite billions of dollars in assistance over more 
        than 40 years, many countries are economically worse off today 
        than they were before United States assistance began.
            (4) Foreign aid must be reduced by at least the same 
        percentage as domestic discretionary spending if the goal of 
        balancing the Federal budget by the year 2002 is to be 
        achieved.
    (b) Statement of Policy.--To further the national security and 
prosperity of the United States and to ensure that American tax dollars 
are wisely spent, United States assistance shall be provided only to 
achieve the following goals:
            (1) To enhance the security of the United States.
            (2) To promote United States trade and investment.
            (3) To combat transnational threats to United States 
        security, including terrorism, weapons proliferation, narcotics 
        trafficking, and organized crime.
            (4) To assist the process of privatization and economic 
        development in countries which have committed themselves to 
        democratic values and institutions, which respect human rights, 
        and which are undertaking free market economic reforms.
            (5) To provide urgent humanitarian assistance to countries 
        and people suffering from natural and man-made disasters.

SEC. 4. DEFINITION.

    (a) Amendment of the Foreign Assistance Act.--Section 644 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2403) is amended by adding at 
the end the following new subsection:
    ``(q) `Appropriate congressional committees' means, except as 
otherwise provided, 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.''.
    (b) Appropriate Congressional Committees.--Except as otherwise 
provided, as used in this Act, the term ``appropriate congressional 
committees'' has the same meaning given the term in section 644(q) of 
the Foreign Assistance Act of 1961.
                TITLE I--DEFENSE AND SECURITY ASSISTANCE

               CHAPTER 1--MILITARY AND RELATED ASSISTANCE

            Subchapter A--Foreign Military Financing Program

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for grant assistance under 
section 23 of the Arms Export Control Act (22 U.S.C. 2763) and for the 
subsidy cost, as defined in section 502(5) of the Federal Credit Reform 
Act of 1990, of direct loans under such section--
            (1) $3,185,000,000 for fiscal year 1996; and
            (2) $3,160,000,000 for fiscal year 1997.

SEC. 102. LOANS FOR GREECE AND TURKEY.

    Of the amounts made available for fiscal years 1996 and 1997 under 
section 23 of the Arms Export Control Act (22 U.S.C. 2763)--
            (1) $26,620,000 shall be made available each such fiscal 
        year for the subsidy cost, as defined in section 502(5) of the 
        Federal Credit Reform Act of 1990, of direct loans for Greece; 
        and
            (2) $37,800,000 shall be made available each such fiscal 
        year for the subsidy cost, as defined in section 502(5) of the 
        Federal Credit Reform Act of 1990, of direct loans for Turkey.

SEC. 103. LOANS FOR EUROPEAN COUNTRIES EMERGING FROM COMMUNIST 
              DOMINATION.

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

SEC. 104. TERMS OF LOANS.

    Section 31(c) of the Arms Export Control Act (22 U.S.C. 2771(c)) is 
amended to read as follows:
    ``(c) Loans available under section 23 shall be provided at rates 
of interest that are not less than the current average market yield on 
outstanding marketable obligations of the United States of comparable 
maturities.''.
SEC. 105. NONREPAYMENT OF GRANT ASSISTANCE.

    Section 23 of the Arms Export Control Act (22 U.S.C. 2763) is 
amended by adding at the end the following new subsection:
    ``(f) Notwithstanding any other provision of this section, the 
President shall not require repayment of any assistance provided on a 
grant basis under this section to a foreign country or international 
organization.''.

                     Subchapter B--Other Assistance

SEC. 111. DEFENSE DRAWDOWN SPECIAL AUTHORITIES.

    (a) Unforeseen Emergency Drawdown.--Section 506(a)(1) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2318(a)(1)) is amended by 
striking ``$75,000,000'' and inserting ``$100,000,000''.
    (b) Additional Drawdown.--Section 506 of such Act (22 U.S.C. 2318) 
is amended--
            (1) in subsection (a)(2)(A), by striking ``defense articles 
        from the stocks'' and all that follows and inserting the 
        following: ``articles and services from the inventory and 
        resources of any agency of the United States Government and 
        military education and training from the Department of Defense, 
        the President may direct the drawdown of such articles, 
        services, and military education and training--
                    ``(i) for the purposes and under the authorities 
                of--
                            ``(I) chapter 8 of part I (relating to 
                        international narcotics control assistance);
                            ``(II) chapter 9 of part I (relating to 
                        international disaster assistance); or
                            ``(III) the Migration and Refugee 
                        Assistance Act of 1962; or
                    ``(ii) for the purpose of providing such articles, 
                services, and military education and training to 
                Vietnam, Cambodia, and Laos as the President determines 
                are necessary--
                            ``(I) 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
                            ``(II) to ensure the safety of United 
                        States Government personnel engaged in such 
                        cooperative efforts and to support Department 
                        of Defense-sponsored humanitarian projects 
                        associated with such efforts.'';
            (2) in subsection (a)(2)(B), by striking ``$75,000,000'' 
        and all that follows and inserting ``$150,000,000 in any fiscal 
        year of such articles, services, and military education and 
        training may be provided pursuant to subparagraph (A) of this 
        paragraph--
                    ``(i) not more than $75,000,000 of which may be 
                provided from the drawdown from the inventory and 
                resources of the Department of Defense;
                    ``(ii) not more than $75,000,000 of which may be 
                provided pursuant to clause (i)(I) of such 
                subparagraph; and
                    ``(iii) not more than $15,000,000 of which may be 
                provided to Vietnam, Cambodia, and Laos pursuant to 
                clause (ii) of such subparagraph.''; and
            (3) in subsection (b)(1), by adding at the end the 
        following: ``In the case of drawdowns authorized by subclauses 
        (I) and (III) of subsection (a)(2)(A)(i), notifications shall 
        be provided to those committees at least 15 days in advance in 
        accordance with the procedures applicable to reprogramming 
        notifications under section 634A.''.
    (c) Notice to Congress of Exercise of Special Authorities.--Section 
652 of such Act (22 U.S.C. 2411) is amended by striking ``prior to the 
date'' and inserting ``before''.

SEC. 112. STOCKPILES OF DEFENSE ARTICLES.

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

SEC. 113. TRANSFER OF EXCESS DEFENSE ARTICLES.

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

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

    ``(a) Authorization.--The President is authorized to transfer 
excess defense articles under this section to countries for which 
receipt of such articles was justified pursuant to the annual 
congressional presentation documents for military assistance programs, 
or for programs under chapter 8 of part I of this Act, submitted under 
section 634 of this Act, or for which receipt of such articles was 
separately justified to Congress, for the fiscal year in which the 
transfer is authorized.
    ``(b) Limitations on Transfers.--The President may transfer excess 
defense articles under this section only if--
            ``(1) such articles are drawn from existing stocks of the 
        Department of Defense;
            ``(2) funds available to the Department of Defense for the 
        procurement of defense equipment are not expended in connection 
        with the transfer;
            ``(3) the transfer of such articles will not have an 
        adverse impact on the military readiness of the United States;
            ``(4) with respect to a proposed transfer of such articles 
        on a grant basis, such a transfer is preferable to a transfer 
        on a sales basis, after taking into account the potential 
        proceeds from, and likelihood of, such sales, and the 
        comparative foreign policy benefits that may accrue to the 
        United States as the result of a transfer on either a grant or 
        sales basis;
            ``(5) the President determines that the transfer of such 
        articles will not have an adverse impact on the national 
        technology and industrial base and, particularly, will not 
        reduce the opportunities of entities
         in the national technology and industrial base to sell new or 
used equipment to the countries to which such articles are transferred; 
and
            ``(6) the transfer of such articles is consistent with the 
        policy framework for the Eastern Mediterranean established 
        under section 620C of this Act.
    ``(c) Terms of Transfers.--
            ``(1) No cost to recipient country.--Excess defense 
        articles may be transferred under this section without cost to 
        the recipient country.
            ``(2) Priority.--Notwithstanding any other provision of 
        law, the delivery of excess defense articles under this section 
        to member countries of the North Atlantic Treaty Organization 
        (NATO) on the southern and southeastern flank of NATO and to 
        major non-NATO allies on such southern and southeastern flank 
        shall be given priority to the maximum extent feasible over the 
        delivery of such excess defense articles to other countries.
    ``(d) Waiver of Requirement for Reimbursement of Department of 
Defense Expenses.--Section 632(d) shall not apply with respect to 
transfers of excess defense articles (including transportation and 
related costs) under this section.
    ``(e) Transportation and Related Costs.--
            ``(1) In general.--Except as provided in paragraph (2), 
        funds available to the Department of Defense may not be 
        expended for crating, packing, handling, and transportation of 
        excess defense articles transferred under the authority of this 
        section.
            ``(2) Exception.--The President may provide for the 
        transportation of excess defense articles without charge to a 
        country for the costs of such transportation if--
                    ``(A) it is determined that it is in the national 
                interest of the United States to do so;
                    ``(B) the recipient is a developing country 
                receiving less than $10,000,000 of assistance under 
                chapter 5 of part II of this Act (relating to 
                international military education and training) or 
                section 23 of the Arms Export Control Act (22 U.S.C. 
                2763; relating to the Foreign Military Financing 
                program) in the fiscal year in which the transportation 
                is provided;
                    ``(C) the total weight of the transfer does not 
                exceed 25,000 pounds; and
                    ``(D) such transportation is accomplished on a 
                space available basis.
    ``(f) Advance Notification to Congress for Transfer of Certain 
Excess Defense Articles.--
            ``(1) In general.--The President may not transfer excess 
        defense articles that are significant military equipment (as 
        defined in section 47(9) of the Arms Export Control Act) or 
        excess defense articles valued (in terms of original 
        acquisition cost) at $7,000,000 or more, under this section or 
        under the Arms Export Control Act (22 U.S.C. 2751 et seq.) 
        until 15 days after the date on which the President has 
        provided notice of the proposed transfer to the congressional 
        committees specified in section 634A(a) in accordance with 
        procedures applicable to reprogramming notifications under that 
        section.
            ``(2) Contents.--Such notification shall include--
                    ``(A) a statement outlining the purposes for which 
                the article is being provided to the country, including 
                whether such article has been previously provided to 
                such country;
                    ``(B) an assessment of the impact of the transfer 
                on the military readiness of the United States;
                    ``(C) an assessment of the impact of the transfer 
                on the national technology and industrial base and, 
                particularly, the impact on opportunities of entities 
                in the national technology and industrial base to sell 
                new or used equipment to the countries to which such 
                articles are to be transferred; and
                    ``(D) a statement describing the current value of 
                such article and the value of such article at 
                acquisition.
    ``(g) Aggregate Annual Limitation.--The aggregate value of excess 
defense articles transferred to countries under this section in any 
fiscal year may not exceed $350,000,000.
    ``(h) Congressional Presentation Documents.--Documents described in 
subsection (a) justifying the transfer of excess defense articles shall 
include an explanation of the general purposes of providing excess 
defense articles as well as a table which provides an aggregate annual 
total of transfers of excess defense articles in the preceding year by 
country in terms of offers and actual deliveries and in terms of 
acquisition cost and current value. Such table shall indicate whether 
such excess defense articles were provided on a grant or sale basis.
    ``(i) Excess Coast Guard Property.--For purposes of this section, 
the term `excess defense articles' shall be deemed to include excess 
property of the Coast
 Guard, and the term `Department of Defense' shall be deemed, with 
respect to such excess property, to include the Coast Guard.''.
    (b) Conforming Amendments.--
            (1) Arms export control act.--Section 21(k) of the Arms 
        Export Control Act (22 U.S.C. 2761(k)) is amended by striking 
        ``the President shall'' and all that follows and inserting the 
        following: ``the President shall determine that the sale of 
        such articles will not have an adverse impact on the national 
        technology and industrial base and, particularly, will not 
        reduce the opportunities of entities in the national technology 
        and industrial base to sell new or used equipment to the 
        countries to which such articles are transferred.''.
            (2) Repeals.--The following provisions of law are hereby 
        repealed:
                    (A) Section 502A of the Foreign Assistance Act of 
                1961 (22 U.S.C. 2303).
                    (B) Sections 517 through 520 of the Foreign 
                Assistance Act of 1961 (22 U.S.C. 2321k through 2321n).
                    (C) Section 31(d) of the Arms Export Control Act 
                (22 U.S.C. 2771(d)).

        CHAPTER 2--INTERNATIONAL MILITARY EDUCATION AND TRAINING

SEC. 121. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated $27,000,000 for each of the 
fiscal years 1996 and 1997 to carry out chapter 5 of part II of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.).

SEC. 122. ADDITIONAL REQUIREMENTS RELATING TO INTERNATIONAL MILITARY 
              EDUCATION AND TRAINING.

    (a) General Authority.--Section 541 of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2347) is amended in the second sentence in the 
matter preceding clause (i) by inserting ``and individuals who are not 
members of the government'' after ``legislators''.
    (b) Test Pilot Exchange Training.--Section 544 of such Act (22 
U.S.C. 2347c) is amended--
            (1) by striking ``In carrying out this chapter'' and 
        inserting ``(a) In carrying out this chapter''; and
            (2) by adding at the end the following new subsection:
    ``(b) The President may provide for the attendance of foreign 
military and civilian defense personnel at test pilot flight schools in 
the United States without charge, and without charge to funds available 
to carry out this chapter (notwithstanding section 632(d) of this Act), 
if such attendance is pursuant to an agreement providing for the 
exchange of students on a one-for-one basis each fiscal year between 
those United States test pilot flight schools and comparable flight 
test pilot schools of foreign countries.''.

                  CHAPTER 3--ANTITERRORISM ASSISTANCE

SEC. 131. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated 
$15,000,000 for fiscal year 1996 and $15,000,000 for fiscal year 1997 
to carry out chapter 8 of part II of the Foreign Assistance Act of 1961 
(22 U.S.C. 2349aa et seq.).
    (b) Availability of Amounts.--Amounts authorized to be appropriated 
under subsection (a) are authorized to remain available until expended.

SEC. 132. ANTITERRORISM TRAINING ASSISTANCE.

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

                CHAPTER 4--NARCOTICS CONTROL ASSISTANCE

SEC. 141. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated 
$105,000,000 for each of the fiscal years 1996 and 1997 to carry out 
chapter 8 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 
2291 et seq.).
    (b) Availability of Amounts.--Amounts authorized to be appropriated 
under subsection (a) are authorized to remain available until expended.
                   CHAPTER 5--PEACEKEEPING OPERATIONS

SEC. 151. PEACEKEEPING OPERATIONS.

    Section 552(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2348a(a)) is amended to read as follows:
    ``(a) There are authorized to be appropriated to the President to 
carry out the purposes of this chapter, in addition to amounts 
otherwise available for such purposes, $40,000,000 for fiscal year 1996 
and $35,000,000 for fiscal year 1997.''.

                      CHAPTER 6--OTHER PROVISIONS

SEC. 161. STANDARDIZATION OF CONGRESSIONAL REVIEW PROCEDURES FOR ARMS 
              TRANSFERS.

    (a) Third Country Transfers Under FMS Sales.--Section 3(d)(2) of 
the Arms Export Control Act (22 U.S.C. 2753(d)(2)) is amended--
            (1) in subparagraph (A), by striking ``, as provided for in 
        sections 36(b)(2) and 36(b)(3) of this Act'';
            (2) in subparagraph (B), by striking ``law'' and inserting 
        ``joint resolution''; and
            (3) by adding at the end the following:
    ``(C) If the President states in his certification under 
subparagraph (A) or (B) that an emergency exists which requires that 
consent to the proposed transfer become effective immediately in the 
national security interests of the United States, thus waiving the 
requirements of that subparagraph, the President shall set forth in the 
certification a detailed justification for his determination, including 
a description of the emergency circumstances which necessitate 
immediate consent to the transfer and a discussion of the national 
security interests involved.
    ``(D)(i) Any joint resolution under this paragraph shall be 
considered in the Senate in accordance with the provisions of section 
601(b) of the International Security Assistance and Arms Export Control 
Act of 1976.
    ``(ii) For the purpose of expediting the consideration and 
enactment of joint resolutions under this paragraph, a motion to 
proceed to the consideration of any such joint resolution after it has 
been reported by the appropriate committee shall be treated as highly 
privileged in the House of Representatives.''.
    (b) Third Country Transfers Under Commercial Sales.--Section 
3(d)(3) of such Act (22 U.S.C. 2753(d)(3)) is amended--
            (1) by inserting ``(A)'' after ``(3)'';
            (2) in the first sentence--
                    (A) by striking ``at least 30 calendar days''; and
                    (B) by striking ``report'' and inserting 
                ``certification''; and
            (3) by striking the last sentence and inserting the 
        following: ``Such certification shall be submitted--
            ``(i) at least 15 calendar days before such consent is 
        given in the case of a transfer to a country which is a member 
        of the North Atlantic Treaty Organization or Australia, Japan, 
        or New Zealand; and
            ``(ii) at least 30 calendar days before such consent is 
        given in the case of a transfer to any other country,
unless the President states in his certification that an emergency 
exists which requires that consent to the proposed transfer become 
effective immediately in the national security interests of the United 
States. If the President states in his certification that such an 
emergency exists (thus waiving the requirements of clause (i) or (ii), 
as the case may be, and of subparagraph (B)) the President shall set 
forth in the certification a detailed justification for his 
determination, including a description of the emergency circumstances 
which necessitate that consent to the proposed transfer become 
effective immediately and a discussion of the national security 
interests involved.
    ``(B) Consent to a transfer subject to subparagraph (A) shall 
become effective after the end of the 15-day or 30-day period specified 
in subparagraph (A) (i) or (ii), as the case may be, only if the 
Congress does not enact, within that period, a joint resolution 
prohibiting the proposed transfer.
    ``(C)(i) Any joint resolution under this paragraph shall be 
considered in the Senate in accordance with the provisions of section 
601(b) of the International Security Assistance and Arms Export Control 
Act of 1976.
    ``(ii) For the purpose of expediting the consideration and 
enactment of joint resolutions under this paragraph, a motion to 
proceed to the consideration of any such joint resolution after it has 
been reported by the appropriate committee shall be treated as highly 
privileged in the House of Representatives.''.
    (c) Commercial Sales.--Section 36(c)(2) of such Act (22 U.S.C. 
2776(c)(2)) is amended by amending subparagraphs (A) and (B) to read as 
follows:
            ``(A) in the case of a license for an export to the North 
        Atlantic Treaty Organization, any member country of that 
        Organization or Australia, Japan, or New Zealand, shall not be 
        issued until at least 15 calendar days after the Congress 
        receives such certification, and shall not be issued then if 
        the Congress, within that 15-day period, enacts a joint 
        resolution prohibiting the proposed export; and
            ``(B) in the case of any other license, shall not be issued 
        until at least 30 calendar days after the Congress receives 
        such certification, and shall not be issued then if the 
        Congress, within that 30-day period, enacts a joint resolution 
        prohibiting the proposed export.''.
    (d) Commercial Manufacturing Agreements.--Section 36(d) of such Act 
(22 U.S.C. 2776(d)) is amended--
            (1) by inserting ``(1)'' after ``(d)'';
            (2) by striking ``for or in a country not a member of the 
        North Atlantic Treaty Organization''; and
            (3) by adding at the end the following:
    ``(2) A certification under this subsection shall be submitted--
            ``(A) at least 15 days before approval is given in the case 
        of an agreement for or in a country which is a member of the 
        North Atlantic Treaty Organization or Australia, Japan, or New 
        Zealand; and
            ``(B) at least 30 days before approval is given in the case 
        of an agreement for or in any other country;
unless the President states in his certification that an emergency 
exists which requires the immediate approval of the agreement in the 
national security interests of the United States.
    ``(3) If the President states in his certification that an 
emergency exists which requires the immediate approval of the agreement 
in the national security interests of the United States, thus waiving 
the requirements of paragraph (4), he shall set forth in the 
certification a detailed justification for his determination, including 
a description of the emergency circumstances which necessitate the 
immediate approval of the agreement and a discussion of the national 
security interests involved.
    ``(4) Approval for an agreement subject to paragraph (1) may not be 
given under section 38 if the Congress, within the 15-day or 30-day 
period specified in paragraph (2) (A) or (B), as the case may be, 
enacts a joint resolution prohibiting such approval.
    ``(5)(A) Any joint resolution under paragraph (4) shall be 
considered in the Senate in accordance with the provisions of section 
601(b) of the International Security Assistance and Arms Export Control 
Act of 1976.
    ``(B) For the purpose of expediting the consideration and enactment 
of joint resolutions under paragraph (4), a motion to proceed to the 
consideration of any such joint resolution after it has been reported 
by the appropriate committee shall be treated as highly privileged in 
the House of Representatives.''.
    (e) Government-to-Government Leases.--
            (1) Congressional review period.--Section 62 of such Act 
        (22 U.S.C. 2796a) is amended--
                    (A) in subsection (a), by striking ``Not less than 
                30 days before'' and inserting ``Before'';
                    (B) in subsection (b)--
                            (i) by striking ``determines, and 
                        immediately reports to the Congress'' and 
                        inserting ``states in his certification''; and
                            (ii) by adding at the end of the subsection 
                        the following: ``If the President states in his 
                        certification that such an emergency exists, he 
                        shall set forth in the certification a detailed 
                        justification for his determination, including 
                        a description of the emergency circumstances 
                        which necessitate that the lease be entered 
                        into immediately and a discussion of the 
                        national security interests involved.''; and
                    (C) by adding at the end of the section the 
                following:
    ``(c) The certification required by subsection (a) shall be 
transmitted--
            ``(1) not less than 15 calendar days before the agreement 
        is entered into or renewed in the case of an agreement with the 
        North Atlantic Treaty Organization, any member country of that 
        Organization or Australia, Japan, or New Zealand; and
            ``(2) not less than 30 calendar days before the agreement 
        is entered into or renewed in the case of an agreement with any 
        other organization or country.''.
            (2) Congressional disapproval.--Section 63(a) of such Act 
        (22 U.S.C. 2796b(a)) is amended--
                    (A) by striking ``(a)(1)'' and inserting ``(a)'';
                    (B) by striking out the ``30 calendar days after 
                receiving the certification with respect to that 
                proposed agreement pursuant to section 62(a),'' and 
                inserting in lieu thereof ``the 15-day or 30-day period 
                specified in section 62(c) (1) or (2), as the case may 
                be,''; and
                    (C) by striking paragraph (2).
    (f) Effective Date.--The amendments made by this section apply with 
respect to certifications required to be submitted on or after the date 
of the enactment of this Act.

SEC. 162. STANDARDIZATION OF THIRD COUNTRY TRANSFERS OF DEFENSE 
              ARTICLES.

    Section 3 of the Arms Export Control Act (22 U.S.C. 2753) is 
amended by inserting after subsection (a) the following new subsection:
    ``(b) The consent of the President under paragraph (2) of 
subsection (a) or under paragraph (1) of section 505(a) of the Foreign 
Assistance Act of 1961 (as it relates to subparagraph (B) of such 
paragraph) shall not be required for the transfer by a foreign country 
or international organization of defense articles sold by the United 
States under this Act if--
            ``(1) such articles constitute components incorporated into 
        foreign defense articles;
            ``(2) the recipient is the government of a member country 
        of the North Atlantic Treaty Organization, the Government of 
        Australia, the Government of Japan, or the Government of New 
        Zealand;
            ``(3) the recipient is not a country designated under 
        section 620A of the Foreign Assistance Act of 1961;
            ``(4) the United States-origin components are not--
                    ``(A) significant military equipment (as defined in 
                section 47(9));
                    ``(B) defense articles for which notification to 
                Congress is required under section 36(b); or
                    ``(C) identified by regulation as Missile 
                Technology Control Regime items; and
            ``(5) the foreign country or international organization 
        provides notification of the transfer of the defense articles 
        to the United States Government not later than 30 days after 
        the date of such transfer.''.

SEC. 163. INCREASED STANDARDIZATION, RATIONALIZATION, AND 
              INTEROPERABILITY OF ASSISTANCE AND SALES PROGRAMS.

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

SEC. 164. REPEAL OF PRICE AND AVAILABILITY REPORTING REQUIREMENT 
              RELATING TO PROPOSED SALE OF DEFENSE ARTICLES AND 
              SERVICES.

    (a) In General.--Section 28 of the Arms Export Control Act (22 
U.S.C. 2768) is hereby repealed.
    (b) Conforming Amendment.--Section 36(b) of such Act (22 U.S.C. 
2776(b)) is amended by striking paragraph (4) of such section.
SEC. 165. DEFINITION OF SIGNIFICANT MILITARY EQUIPMENT.

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

SEC. 166. DESIGNATION OF MAJOR NON-NATO ALLIES.

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

``SEC. 517. DESIGNATION OF MAJOR NON-NATO ALLIES.

    ``(a) Notice to Congress.--The President shall notify the Congress 
in writing at least 30 days before--
            ``(1) designating a country as a major non-NATO ally for 
        purposes of this Act and the Arms Export Control Act (22 U.S.C. 
        2751 et seq.); or
            ``(2) terminating such a designation.
    ``(b) Initial Designations.--Australia, Egypt, Israel, Japan, the 
Republic of Korea, and New Zealand shall be deemed to have been so 
designated by the President as of the effective date of this section, 
and the President is not required to notify the Congress of such 
designation of those countries.''.
            (2) Definition.--Section 644 of such Act (22 U.S.C. 2403), 
        as amended by section 4 of this Act, is further amended by 
        adding at the end the following:
    ``(r) `Major non-NATO ally' means a country which is designated in 
accordance with section 517 as a major non-NATO ally for purposes of 
this Act and the Arms Export Control Act (22 U.S.C. 2751 et seq.).''.
            (3) Existing definitions.--(A) The last sentence of section 
        21(g) of the Arms Export Control Act (22 U.S.C. 2761(g)) is 
        amended by striking ``for purposes of section 2350(a)(i)(3) of 
        title 10, United States Code'' and inserting ``in accordance 
        with section 517 of the Foreign Assistance Act of 1961''.
            (B) Section 65(d) of such Act (22 U.S.C. 2796d(d)) is 
        amended--
                    (i) by striking ``or major non-NATO''; and
                    (ii) by striking out ``or a'' and all that follows 
                through ``Code''.
    (b) Cooperative Training Agreements.--Section 21(g) of the Arms 
Export Control Act (22 U.S.C. 2761(g)) is amended in the first sentence 
by striking ``similar agreements'' and all that follows through ``other 
countries'' and inserting ``similar agreements with countries''.

SEC. 167. COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES AND 
              SERVICES.

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

SEC. 168. DEPLETED URANIUM AMMUNITION.

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

``SEC. 620G. DEPLETED URANIUM AMMUNITION.

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

SEC. 169. POLICE TRAINING FOR CERTAIN FOREIGN COUNTRIES.

    (a) In General.--Part II of the Foreign Assistance Act of 1961 is 
amended by adding at the end the following new chapter:

                      ``CHAPTER 9--POLICE TRAINING

    ``Sec. 581. Police Training for Certain Foreign Countries.--The 
President is authorized to provide, on such terms and conditions as he 
may determine, training, advice, financial support, and equipment for 
police, prisons, or other law enforcement forces of a foreign 
government, unless the President determines that--
            ``(1) such foreign government is not democratically 
        elected; or
            ``(2) notwithstanding paragraph (1)--
                    ``(A) such forces engage in a consistent pattern of 
                gross violations of internationally recognized human 
                rights; or
                    ``(B) such forces do not maintain an effective 
                policy against the trafficking or production of illegal 
                drugs by the members of the force or the participants 
                in the program.''.
    (b) Repeal.--Section 660 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2420) is repealed.

SEC. 170. UTILIZATION OF DEFENSE ARTICLES AND SERVICES.

    Section 502 of the Foreign Assistance Act of 1961 (22 U.S.C. 2302) 
is amended in the first sentence--
            (1) by striking ``solely'' after furnished; and
            (2) by inserting ``(including for law enforcement 
        purposes)'' after ``internal security''.

SEC. 171. REPORTS ON ARMS SALES.

    Section 36 of the Arms Export Control Act (22 U.S.C. 2776) is 
amended--
            (1) in subsection (a) (in the text following paragraph 
        (11))--
                    (A) by striking out ``and (iv)'' and inserting in 
                lieu thereof ``(iv)''; and
                    (B) by striking out the period at the end and 
                inserting in lieu thereof ``; (v) the comparable kinds 
                and amounts of similar major defense equipment or 
                defense articles or services that are available from 
                other countries; and (vi) the other countries, if any, 
                to which the United States has already offered the 
                major defense equipment or defense articles or 
                services.'';
            (2) in subsection (b)(1)--
                    (A) by striking out ``information specified in 
                clauses (i) through (iv)'' and inserting ``information 
                specified in clauses (i) through (vi)'';
                    (B) by striking out subparagraph (K); and
                    (C) by redesignating subparagraphs (L), (M), (N), 
                (O), and (P) as subparagraphs (K), (L), (M), (N), and 
                (O), respectively; and
            (3) in subsection (c)(1)--
                    (A) by striking out ``and (C)'' and inserting 
                ``(C)''; and
                    (B) by inserting before the period at the end of 
                the first sentence the following: ``, (D) a statement 
                on the extent to which comparable kinds and amounts of 
                similar major defense equipment or defense articles or 
                services are available from other countries, and (E) 
                the other countries, if any, to which the United States 
                has already offered the major defense equipment or 
                defense articles or services''.
SEC. 172. ELIMINATION OF THE REQUIREMENT FOR RECOUPMENT OF NONRECURRING 
              COST CHARGES.

    (a) Amendment of the Arms Export Control Act.--Section 21(e) of the 
Arms Export Control Act (22 U.S.C. 2761(e)) is amended--
            (1) by striking paragraph (1)(B);
            (2) by adding ``and'' at the end of paragraph (1)(A);
            (3) by redesignating paragraph (1)(C) as paragraph (1)(B);
            (4) by striking paragraph (2); and
            (5) by redesignating paragraph (3) as paragraph (2).
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to letters of offer issued on or after the date of enactment of 
this Act.

SEC. 173. REDUCTION IN VALUATION OF DEFENSE ARTICLES NOT INTENDED FOR 
              REPLACEMENT.

    (a) Authority.--Section 21(a) of the Arms Export Control Act (22 
U.S.C. 2761(a)) is amended by adding at the end the following new 
paragraph:
    ``(3) The President may reduce the price required to be paid under 
paragraph (1)(A) for the sale of a defense article if such sale would--
            ``(A) facilitate the sale of a similar or related new 
        defense article;
            ``(B) support the national defense industrial base; and
            ``(C) serve the national security interests of the United 
        States.''.
    (b) Conforming Amendment.--Section 21(a)(1)(A) of such Act (22 
U.S.C. 2761(a)(1)(A)) is amended by inserting ``, except as provided in 
paragraph (3)'' after ``actual value thereof''.
    (c) Availability of Appropriations.--The President may only 
exercise the authority contained in the amendment made by subsection 
(a) subject to the availability of appropriations.

SEC. 174. ELIMINATION OF SPECIAL DEFENSE ACQUISITION FUND ANNUAL 
              REPORT.

    (a) In General.--Section 53 of the Arms Export Control Act (22 
U.S.C. 2795b) is hereby repealed.
    (b) Conforming Amendment.--Section 51(a)(4) of such Act (22 U.S.C. 
2795(a)(4)) is amended--
            (1) by striking ``(A)'' immediately after ``(4)''; and
            (2) by striking subparagraph (B) of such section.
                 TITLE II--TRADE AND EXPORT DEVELOPMENT

SEC. 201. TRADE AND DEVELOPMENT AGENCY.

    (a) Authority To Provide Assistance.--Section 661(b) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2421(b)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``for'' after ``feasibility 
                studies'' and inserting ``and other activities related 
                to''; and
                    (B) by striking the second sentence; and
            (2) in paragraph (3)--
                    (A) by striking ``(A)''; and
                    (B) by striking subparagraph (B).
    (b) Annual Report.--Section 661(d) of such Act (22 U.S.C. 2421(d)) 
is amended by striking ``President'' and inserting ``Director of the 
Trade and Development Agency''.
    (c) Authorization of Appropriations.--Section 661(f)(1) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2421(f)(1)) is amended to 
read as follows: ``There are authorized to be appropriated to the 
President for purposes of this section, in addition to funds otherwise 
available for such purposes, $67,000,000 for fiscal year 1996 and 
$75,000,000 for fiscal year 1997.''.
    (d) Availability of Appropriations.--Section 661(f) of such Act (22 
U.S.C. 2421(f)) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) Availability of appropriations.--Amounts appropriated 
        pursuant to paragraph (1) are authorized to remain available 
        until expended.''.
SEC. 202. COUNTRIES IN TRANSITION TO A FREE MARKET ECONOMY.

    (a) Findings.--The Congress finds that--
            (1) many of the nations of Central and Eastern Europe in 
        transition from centrally planned economies to free market 
        economies have made important progress in reforming their 
        economic systems in a short time period;
            (2) as these countries continue to transition, long-term 
        economic growth for the region rests upon the successful 
        integration of these emerging free markets into western markets 
        and other world trading structures;
            (3) trade has been the key to rapid integration of the 
        markets of countries in transition to democracy; and
            (4) the success of United States efforts to expand the 
        ability of these nations in transition to trade with the West 
        has not rested solely upon traditional foreign assistance 
        programs, but has been greatly enhanced by the extension of the 
        generalized system of preferences for these countries.
    (b) Sense of Congress.--It is the sense of the Congress that--
            (1) the efforts of the United States to assist countries of 
        Central and Eastern Europe in transition from centrally planned 
        economies to free market economies should focus first on 
        efforts to effectively integrate them into the world trading 
        system;
            (2) the extension by the United States of trade benefits 
        under the generalized system of preferences has been of crucial 
        importance to the rapid economic transformation of countries of 
        Central and Eastern Europe in transition from centrally planned 
        economies to free market economies; and
            (3) the United States should continue to accord treatment 
        under the generalized system of preferences (GSP) for all 
        countries of Central and Eastern Europe in transition to a free 
        market economy, including but not limited to Poland, Hungary, 
        the Czech Republic, Slovakia, the Baltic countries, Romania, 
        and Bulgaria, if these countries are complying with all 
        applicable statutory requirements.
    TITLE III--PRIVATE SECTOR, ECONOMIC, AND DEVELOPMENT ASSISTANCE

               CHAPTER 1--PRIVATE SECTOR ENTERPRISE FUNDS
SEC. 301. SUPPORT FOR PRIVATE SECTOR ENTERPRISE FUNDS.

    Chapter 1 of part III of the Foreign Assistance Act of 1961 is 
amended by inserting after section 601 (22 U.S.C. 2351) the following 
new section:

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

    ``(a) Authority.--(1) The President may provide funds and support 
to Enterprise Funds designated in accordance with subsection (b) that 
are or have been established for the purposes of promoting--
            ``(A) development of the private sectors of eligible 
        countries, including small businesses, the agricultural sector, 
        and joint ventures with United States and host country 
        participants; and
            ``(B) policies and practices conducive to private sector 
        development in eligible countries;
on the same basis as funds and support may be provided with respect to 
Enterprise Funds for Poland and Hungary under the Support for East 
European Democracy (SEED) Act of 1989.
    ``(2) Funds may be made available under this section 
notwithstanding any other provision of law.
    ``(b) Countries Eligible for Enterprise Funds.--(1) Except as 
provided in paragraph (2), the President is authorized to designate a 
private, nonprofit organization as eligible to receive funds and 
support pursuant to this section with respect to any country eligible 
to receive assistance under part I of this Act in the same manner and 
with the same limitations as set forth in section 201(d) of the Support 
for East European Democracy (SEED) Act of 1989.
    ``(2)(A) Except as provided in subparagraph (B), the authority of 
paragraph (1) shall not apply to any country with respect to which the 
President is authorized to designate an enterprise fund under section 
498B(c) of this Act or section 201 of the Support for East European 
Democracy (SEED) Act of 1989.
    ``(B) The prohibition of subparagraph (A) shall not apply to the 
Trans-Caucasus Enterprise Fund established under subsection (c).
    ``(c) Trans-Caucasus Enterprise Fund.--The President shall 
designate a private, nonprofit organization under subsection (b) to 
carry out this section with respect to the Trans-Caucasus region of the 
former Soviet Union. Such organization shall be known as the `Trans-
Caucasus Enterprise Fund'.
    ``(d) Treatment Equivalent to Enterprise Funds for Poland and 
Hungary.--Except as otherwise specifically provided in this section, 
the provisions contained in section 201 of the Support for East 
European Democracy (SEED) Act of 1989 (excluding the authorizations of 
appropriations provided in subsection (b) of that section) shall apply 
to any Enterprise Fund that receives funds and support under this 
section. The officers, members, or employees of an Enterprise Fund that 
receive funds and support under this section shall enjoy the same 
status under law that is applicable to officers, members, or employees 
of the Enterprise Funds for Poland and Hungary under the Support for 
East European Democracy (SEED) Act of 1989.
    ``(e) Reporting Requirement.--Notwithstanding any other provision 
of this section, the requirement of section 201(p) of the Support for 
East European Democracy (SEED) Act of 1989, that an Enterprise Fund 
shall be required to publish an annual report not later than January 31 
each year shall not apply with respect to an Enterprise Fund that 
receives funds and support under this section for the first twelve 
months after it is designated as eligible to receive such funds and 
support.
    ``(f) Authorization of Appropriations.--(1) There are authorized to 
be appropriated to the President for purposes of this section, in 
addition to funds otherwise available for such purposes--
            ``(A) $12,000,000 for fiscal year 1996 to fund the Trans-
        Caucasus Enterprise Fund established under subsection (d); and
            ``(B) $52,000,000 for fiscal year 1996 to fund any 
        enterprise fund authorized to receive funds under this section 
        other than the Trans-Caucasus Enterprise Fund.
    ``(2) Funds appropriated under this subsection are authorized to 
remain available until expended.''.
SEC. 302. MICRO- AND SMALL-ENTERPRISE DEVELOPMENT CREDIT PROGRAM.

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

``SEC. 108. MICRO- AND SMALL-ENTERPRISE DEVELOPMENT CREDIT PROGRAM.

    ``(a) Findings and Policy.--The Congress finds and declares that--
            ``(1) the development of micro- and small enterprise, 
        including cooperatives, is a vital factor in the private sector 
        growth of developing countries and in the development and 
        stability of a free, open, and equitable international economic 
        system;
            ``(2) it is, therefore, in the best interests of the United 
        States to assist the development of the private sector in 
        developing countries and to engage the United States private 
        sector in that process; and
            ``(3) the support of private enterprise can be served by 
        programs providing credit, training, and technical assistance 
        for the benefit of micro- and small enterprises.
    ``(b) Program.--To carry out the policy set forth in subsection 
(a), the President is authorized to provide assistance to increase the 
availability of credit to micro- and small enterprises lacking full 
access to credit, including through--
            ``(1) loans and guarantees to credit institutions for the 
        purpose of expanding the availability of credit to micro- and 
        small enterprises;
            ``(2) training programs for lenders in order to enable them 
        to better meet the credit needs of micro- and small 
        entrepreneurs; and
            ``(3) training programs for micro- and small entrepreneurs 
        in order to enable them to make better use of credit and to 
        better manage their enterprises.''.

      CHAPTER 2--DEVELOPMENT ASSISTANCE FUND AND OTHER AUTHORITIES

SEC. 311. DEVELOPMENT ASSISTANCE FUND.

    (a) Single Authorization of Appropriations.--There are authorized 
to be appropriated to the President the total amount of $2,475,000,000 
for fiscal year 1996 and the total amount of $2,324,000,000 for fiscal 
year 1997 to carry out the following authorities in law:
            (1) Sections 103, 104, 105, 106, and 108 of the Foreign 
        Assistance Act of 1961 (relating to development assistance).
            (2) Chapter 10 of part I of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2294; relating to the Development Fund for 
        Africa).
            (3) Chapter 11 of part I of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2295 et seq.).
            (4) The Support for East European Democracy (SEED) Act of 
        1989 (Public Law 101-179).
            (5) Title III of chapter 2 of part I of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2181 et seq.; relating to 
        housing and other credit guaranty programs).
            (6) Section 214 of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2174; relating to American Schools and Hospitals 
        Abroad).
    (b) Popular Name.--Appropriations made pursuant to subsection (a) 
may be referred to as the ``Development Assistance Fund''.
    (c) Private and Voluntary Organizations and Cooperatives.--The 
President shall seek to ensure that, in each fiscal year, the 
percentage of funds made available under this section for the 
activities of private and voluntary organizations and cooperatives is 
at least equal to the percentage of funds made available pursuant to 
corresponding authorities in law for the activities of private and 
voluntary organizations and cooperatives in fiscal year 1995.
    (d) Proportional Assistance to Africa.--Of the funds authorized to 
be appropriated by subsection (a), not less than 25 percent each fiscal 
year shall be used to carry out chapter 10 of part I of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2294 et seq.; relating to the 
Development Fund for Africa).

SEC. 312. ECONOMIC SUPPORT FUND.

    Subsection (a) of section 532 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2346a) is amended to read as follows:
    ``(a)(1) There are authorized to be appropriated to the President 
to carry out the purposes of this chapter $2,375,000,000 for the fiscal 
year 1996 and $2,340,000,000 for the fiscal year 1997.
    ``(2) Of the amount authorized to be appropriated by paragraph (1) 
for each of the fiscal years 1996 and 1997, $15,000,000 shall be 
available only for Cyprus.
    ``(3) Of the amount authorized to be appropriated by paragraph (1) 
for fiscal year 1996, $15,000,000 shall be available only for the 
International Fund for Ireland.
    ``(4) Of the amount authorized to be appropriated by paragraph (1) 
for fiscal year 1996, $10,000,000 shall be available only for the rapid 
development of a prototype industrial park in the Gaza Strip.''.
SEC. 313. NONINTERVENTION CONCERNING ABORTION.

    Section 104(f) of the Foreign Assistance Act of 1961 (22 U.S.C. 
215b(f)) is amended by adding at the end the following new paragraph:
    ``(4)(A) None of the funds made available to carry out this part 
may be used for any program, project, or activity that violates the 
laws of a foreign country concerning the circumstances under which 
abortion is permitted, regulated, or prohibited, or which seeks to 
alter the laws or policies in effect in any foreign country concerning 
the circumstances under which abortion is permitted, regulated, or 
prohibited.
    ``(B) Subparagraph (A) shall not apply to activities in opposition 
to coercive abortion or involuntary sterilization.''.

SEC. 314. HOST COUNTRY COST-SHARING.

    Section 110 of the Foreign Assistance Act of 1961 (22 U.S.C. 2151h) 
is amended by striking ``25 per centum'' and inserting ``30 per 
centum''.

SEC. 315. PRIVATE FUNDING OF PRIVATE AND VOLUNTARY ORGANIZATIONS.

    Chapter 1 of part I of the Foreign Assistance Act of 1961 (relating 
to development assistance) is amended by adding at the end the 
following new section:

``SEC. 129. PRIVATE FUNDING OF PRIVATE AND VOLUNTRARY ORGANIZATIONS.

    ``(a) Restriction.--None of the funds made available to carry out 
this chapter may be made available to any United States private and 
voluntary organization, except any cooperative development 
organization, which obtains less than 25 per centum of its total annual 
funding for international activities from sources other than the United 
States Government.
    ``(b) Waiver.--The President may, on a case-by-case basis, waive 
the restriction established by subsection (a), after taking into 
account the effectiveness of the overseas development activities of the 
organization, its level of volunteer support, its financial viability 
and stability, and the degree of its dependence for its financial 
support on the United States Government.''.

SEC. 316. DOCUMENTATION REQUESTED OF PRIVATE AND VOLUNTARY 
              ORGANIZATIONS.

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

SEC. 317. PROHIBITION ON USE OF FOREIGN ASSISTANCE BY PRIVATE AND 
              VOLUNTARY ORGANIZATIONS FOR OFFICE EQUIPMENT IN THE 
              UNITED STATES.

    Section 620 of the Foreign Assistance Act of 1961 (22 U.S.C. 2370) 
is amended by inserting after subsection (v), as added by section 316, 
the following new subsection:
    ``(w) No assistance made available under chapter 1 (relating to 
development assistance), chapter 10 (relating to the Development Fund 
for Africa), or chapter 11 (relating to support for the independent 
states of the former Soviet Union) of part I of this Act or chapter 4 
of part II of this Act (relating to the Economic Support Fund), Support 
for East European Democracy (SEED) Act of 1989 may be used by any 
private and voluntary organization to pay for the purchase or lease of 
office equipment for use in the United States.''.

SEC. 318. PROHIBITION ON CIRCUMVENTION OF AID RESTRICTIONS.

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

``SEC. 620H. PROHIBITION ON CIRCUMVENTION OF AID RESTRICTIONS.

    ``(a) Prohibition.--No officer or employee of the United States may 
engage in any activity, or assist any person to engage in any activity, 
which is intended to circumvent a statutory prohibition or restriction 
in the provision of United States assistance.
    ``(b) Rule of Statutory Construction.--Nothing in this section may 
be construed to limit--
            ``(1) the ability of the President, the Vice President, or 
        any officer or employee of the United States to make statements 
        or otherwise express their views to any party on any subject;
            ``(2) the ability of an officer or employee of the United 
        States to express the policies of the President; or
            ``(3) the ability of an officer or employee of the United 
        States to communicate with any foreign country government, 
        group, or individual, either directly or through a third party, 
        with respect to the prohibitions or restriction under this Act, 
        including the reasons for any such prohibitions or restriction, 
        and the actions, terms, or conditions which might lead to the 
        removal of the prohibition or restriction.
    ``(c) Definition.--For purposes of this section, the term `United 
States assistance' includes--
            ``(1) assistance provided under this Act; and
            ``(2) grants and loan subsidies under the Arms Export 
        Control Act.
    ``(d) Criminal Penalty.--An officer or employee of the United 
States who knowingly and willfully violates subsection (a) shall be 
fined in accordance with title 18, imprisoned for not more than 2 
years, or both.''.
SEC. 319. FOREIGN GOVERNMENT PARKING FINES.

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

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

    ``(a) Withholding of Funds.--An amount equivalent to 110 percent of 
the total unpaid fully adjudicated parking fines and penalties owed to 
the District of Columbia, Virginia, and Maryland, by the government of 
a foreign country as of the end of a fiscal year, as certified to the 
President by the chief executive officer of each State or District, 
shall be withheld from obligation for such country out of funds 
available in the next fiscal year to carry out part I of this Act, 
until the requirement of subsection (b) is satisfied.
    ``(b) Certification Requirement.--The requirement of this 
subsection is satisfied when the Secretary of State determines and 
certifies to the appropriate congressional committees that such fines 
and penalties are fully paid to the governments of the District of 
Columbia, Virginia, and Maryland.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to fines certified as of the end of fiscal year 1995 
or any fiscal year thereafter.

SEC. 320. LIMITATION ON WAIVER OF SANCTIONS AGAINST MAJOR DRUG 
              PRODUCING AND DRUG-TRANSIT COUNTRIES.

    Section 490A(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2291k(b)) is amended--
            (1) in paragraph (1), by inserting ``and paragraph (6) of 
        this subsection'' after ``subsection (d)''; and
            (2) by adding at the end the following new paragraph:
            ``(6) Limitation.--Beginning with the annual certification 
        required on March 1, 1996, the President may not make a 
        certification under this paragraph with respect to a country in 
        any year which immediately follows a period of two consecutive 
        years in which such certifications have been made with respect 
        to that country.''.

SEC. 321. ENGAGING THE UNITED STATES PRIVATE SECTOR IN DEVELOPMENT.

    (a) Allocation of Resources.--(1) Of the funds authorized to be 
appropriated by section 311 of this Act, significant resources shall be 
made available to engage the United States private sector, including 
small- and medium-size businesses, farm groups, entrepreneurs, and 
others, with indigenous private enterprises in developing nations.
    (2) To the extent practicable, these funds shall be made available 
through intermediary development organizations committed to private 
enterprise.
    (3) The ratio of private sector investment to United States 
Government assistance in these projects shall be no less than a ratio 
of 2.5:1.
    (b) Reporting Requirement.--Beginning January 1, 1996, and annually 
thereafter, the Secretary of State shall report in writing to Congress 
regarding efforts by the Department of State and the Agency for 
International Development to meet the requirements of this section.

                         CHAPTER 3--PEACE CORPS

SEC. 331. PEACE CORPS.

    Section 3(b) of the Peace Corps Act (22 U.S.C. 2502(b)) is amended 
to read as follows:
    ``(b) There are authorized to be appropriated to carry out the 
purposes of this Act $234,000,000 for each of the fiscal years 1996 and 
1997.''.
SEC. 332. DEADLINES FOR EVALUATION OF AND REPORT ON HEALTH CARE 
              SERVICES PROVIDED TO PEACE CORPS VOLUNTEERS.

    (a) Evaluation Deadline.--Section 3(a) of the Act of October 28, 
1992 (Public Law 102-565) is amended by striking ``1997'' and inserting 
``1998''.
    (b) Report Deadline.--Section 3(c) of such Act is amended by 
striking ``1996'' and inserting ``1997''.

         CHAPTER 4--INTERNATIONAL DISASTER ASSISTANCE PROGRAMS

SEC. 341. INTERNATIONAL DISASTER ASSISTANCE.

    Section 492(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2292a) is amended to read as follows:
    ``(a) There are authorized to be appropriated to the President to 
carry out section 491, in addition to funds otherwise available for 
such purposes, $200,000,000 for fiscal year 1996 and $200,000,000 for 
fiscal year 1997.''.
            TITLE IV--PEACE AND SECURITY IN THE MIDDLE EAST

SEC. 401. ECONOMIC SUPPORT FUND ASSISTANCE FOR ISRAEL.

    (a) Minimum Allocation.--Of the amounts made available to carry out 
chapter 4 of part II of the Foreign Assistance Act of 1961 (relating to 
the Economic Support Fund) for fiscal years 1996 and 1997, not less 
than $1,200,000,000 for each such fiscal year shall be available only 
for Israel.
    (b) Terms of Assistance.--The total amount of funds allocated for 
Israel each fiscal year under subsection (a) shall be made available as 
a cash transfer on a grant basis. Such transfer shall be made on an 
expedited basis within 30 days after the beginning of the fiscal year 
or the date of enactment of the Act appropriating such funds, whichever 
is later. In exercising the authority of this subsection, the President 
shall ensure that the level of cash transfer made to Israel does not 
cause an adverse impact on the total level of nonmilitary exports from 
the United States to Israel.

SEC. 402. FOREIGN MILITARY FINANCING FOR ISRAEL.

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

SEC. 403. ECONOMIC SUPPORT FUND ASSISTANCE FOR EGYPT.

    Of the amounts made available to carry out chapter 4 of part II of 
the Foreign Assistance Act of 1961 (relating to the Economic Support 
Fund) for fiscal years 1996 and 1997, not less than $815,000,000 for 
each such fiscal year shall be available only for Egypt.

SEC. 404. FOREIGN MILITARY FINANCING FOR EGYPT.

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

SEC. 405. ESTABLISHMENT OF A FREE TRADE AREA FOR TABA, ELAT, AND AQABA.

    (a) Findings.--The Congress finds that--
            (1) the development of trading relationships that permit 
        the free flow of goods and services between Israel and 
        countries with which Israel is now at peace is essential to a 
        lasting peace in the Middle East;
            (2) the President's recent decision to establish a free 
        trade area that includes the Egyptian city of Taba, the Israeli 
        city of Elat and the Jordanian city of Aqaba will provide an 
        important beginning for regional cooperation and the 
        integration of regional commerce; and
            (3) the development of successful trading relationships 
        between the countries who have agreed to a warm peace with 
        Israel and the United States is a top priority of the United 
        States.
    (b) Sense of Congress.--It is the sense of the Congress that the 
President should extend duty free treatment to products of Taba, Egypt, 
and Aqaba, Jordan if--
            (1) such extension will significantly benefit the 
        development of regional economic development and integration in 
        the Middle East;
            (2) such extension will include only goods which have 
        experienced significant manufacturing change in Taba or Aqaba;
            (3) effective procedures exist to ensure that Taba and 
        Aqaba are not merely transshipment points for goods 
        manufactured outside of these two cities; and
            (4) Egypt, Israel, and Jordan are developing laws and 
        procedures to encourage the free flow of goods and people 
        between the cities of Taba, Elat, and Aqaba.
SEC. 406. CONTINUATION OF FREE TRADE TREATMENT FOR GAZA AND JERICHO.

    (a) Findings.--The Congress finds that--
            (1) the Congress approved a free trade agreement with 
        Israel on April 29, 1985;
            (2) when approved in 1985, eligibility under the free trade 
        agreement extended to the occupied territories of the West Bank 
        and Gaza;
            (3) the Declaration of Principles, signed by Israel and the 
        Palestinian Authority in 1993, is a significant step forward in 
        bringing peace to the region;
            (4) sending an unambiguous signal of United States support 
        for peace in the Middle East is a top United States priority;
            (5) removing free trade treatment for goods manufactured in 
        Gaza and Jericho after the signing of the Declaration of 
        Principles economically penalizes the Palestinian Authority for 
        entering into a peace agreement with Israel; and
            (6) goods manufactured in Gaza and Jericho after the 
        signing of the Declaration of Principles should not be 
        subjected to less favorable treatment than those manufactured 
        in Gaza and Jericho before the signing.
    (b) Sense of Congress.--It is the sense of the Congress that the 
United States should grant duty free access to the United States market 
for products of the West Bank and Gaza.

SEC. 407. AUTHORIZATION FOR AN INDUSTRIAL PARK ON THE BORDER BETWEEN 
              THE TERRITORIES AND ISRAEL.

    (a) Findings.--The Congress finds that--
            (1) extremists in Hamas and Islamic Jihad who reject the 
        gains made since the signing of the Declaration of Principles 
        have used terrorist tactics to force the closing of the 
        territories;
            (2) these terrorist acts have exacerbated existing problems 
        and Gaza is now experiencing staggering unemployment nearing 50 
        percent, increasing chaos and a downward spiral of dashed hopes 
        and deepening poverty;
            (3) Israel's legitimate security concerns necessitate 
        creative new methods of ensuring continued economic opportunity 
        for the Palestinians; and
            (4) the development of industrial parks along the border 
        between Gaza, the West Bank and Israel sponsored by individual 
        nations provides an important means of providing both 
        development for Palestinians while maintaining border security.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the United States should take prompt, visible action 
        before the coming elections in Gaza and Jericho that promises 
        hope and jobs to Palestinians;
            (2) the rapid development of an industrial park, closely 
        coordinated with private sector investors, will provide a clear 
        sign of opportunity resulting from peace with Israel;
            (3) the decision to site the industrial park should give 
        special consideration to the extremely difficult economic 
        conditions in Gaza;
            (4) the President should appoint a Special Coordinator to 
        coordinate the rapid development of an industrial park in Gaza 
        and to begin the recruitment of United States investors; and
            (5) the Secretary of State should direct a short-term 
        review and implementation of United States assistance plans to 
        assist in speeding the flow of goods and services between 
        Israel and Gaza while increasing security between the two 
        areas.
                     TITLE V--OTHER REGIONAL ISSUES

SEC. 501. LENDING TO THE INDEPENDENT STATES OF THE FORMER SOVIET UNION 
              REQUIRED TO BE SECURED BY CERTAIN EXPORT EARNINGS.

    (a) Restriction on Lending.--For fiscal years 1996 and 1997, in the 
case of an independent state of the former Soviet Union that does not 
satisfy the requirements of subsection (b)--
            (1) no loan or credit may be extended by the United States 
        under any provision of law to the government of such state, 
        including loans or credits extended under--
                    (A) the Foreign Assistance Act of 1961;
                    (B) the Arms Export Control Act;
                    (C) the Agricultural Trade Development and 
                Assistance Act of 1954 (Public Law 83-480);
                    (D) the Agricultural Trade Act of 1978;
                    (E) section 416(b) of the Agricultural Act of 1949;
                    (F) the Commodity Credit Corporation Charter Act; 
                and
                    (G) the Export-Import Bank Act of 1945; and
            (2) the Secretary of the Treasury shall instruct--
                    (A) the United States executive directors to the 
                International Bank for Reconstruction and Development, 
                the European Bank for Reconstruction and Development, 
                and the Asian Development Bank to vote against the 
                extension of any credit, or the issuance of any 
                guarantee with respect to any credit, by the Banks for 
                the purpose of assisting such state, and
                    (B) the United States executive director of the 
                International Monetary Fund to vote against any use of 
                the resources of the Fund, including any use of United 
                States currency under the Fund's General Arrangements 
                to Borrow (GAB) as part of any currency stabilization 
                fund or otherwise, for the purpose of assisting such 
                state.
    (b) Requirements.--The requirements of this section are that--
            (1) the President has certified that the independent state 
        of the former Soviet Union is adhering to the debt repayment 
        schedules of the multilateral lending institutions and the debt 
        repayment schedules of private lenders pursuant to agreements 
        with the multilateral development banks; or
            (2) the repayment by such state of the loan, credit, or 
        other financial resources of multilateral lending institutions, 
        as the case may be, is secured by the royalties or other 
        revenues, if any, earned by the state from the export of 
        petroleum products, minerals, or other commodities.
    (c) Multilateral Actions.--The Secretary of the Treasury shall 
instruct the United States executive directors of the International 
Bank for Reconstruction and Development, the European Bank for 
Reconstruction and Development, the Asian Development Bank, and the 
International Monetary Fund to propose that such institutions establish 
policies in opposition to the making of any loan, the extension of any 
credit, or the use of other financial resources of their respective 
institutions for the independent states of the former Soviet Union 
unless the repayment of such loans, credits, or other resources is 
secured in accordance with subsection (b)(2).
    (d) Definitions.--As used in this section:
            (1) Independent states of the former soviet union.--The 
        term ``independent states of the former Soviet Union'' has the 
        same meaning given
         to that term by section 3 of the FREEDOM Support Act (22 
U.S.C. 5801).
            (2) Petroleum product.--The term ``petroleum product'' 
        means crude oil, residual fuel oil, or any refined petroleum 
        product (including any natural liquid and any natural gas 
        liquid product).

SEC. 502. RESTRICTIONS ON ASSISTANCE FOR NICARAGUA.

    (a) Restrictions.--Amounts made available for fiscal years 1996 and 
1997 for assistance under chapter 1 of part I of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2151 et seq. relating to development assistance) 
or chapter 4 of part II of such Act (22 U.S.C. 2346 et seq. relating to 
economic support fund), including any unobligated balances of prior 
appropriations, may only be made available to the Government of 
Nicaragua if the Secretary of State, in consultation with the Secretary 
of Defense and the Director of Central Intelligence, determines and 
certifies to the appropriate congressional committees that the 
Government of Nicaragua--
            (1) has completed a full and independent investigation of 
        the May 23, 1993, Santa Rosa arms cache explosion, including an 
        investigation of passports, identity papers, and other 
        documents found at weapons sites indicating the existence of a 
        terrorist or kidnapping ring and whether the terrorist network 
        was involved in the February 1993 World Trade Center bombing;
            (2) has made substantial and tangible progress in meeting 
        the requirements of section 527 of the Foreign Relations 
        Authorization Act for Fiscal Years 1994 and 1995 (relating to 
        expropriation of United States property);
            (3) has removed from the military and security forces of 
        Nicaragua all individuals implicated in the murders of Jean 
        Paul Genie, Arges Sequeira, and Enrique Bermudez, and judicial 
        proceedings against those charged with these murders have been 
        initiated; and
            (4) is making significant and tangible progress in--
                    (A) prosecuting all individuals, including 
                government officials and members of the armed forces or 
                security forces of Nicaragua identified by the 
                Secretary of State or the Attorney General as being 
                part of a terrorist or kidnapping ring;
                    (B) implementing all recommendations made by the 
                Tripartite Commission with respect to individuals 
                responsible for assassinations, including the immediate 
                suspension of all individuals from the Nicaraguan 
                military and security forces who are named in such 
                recommendations and the expeditious prosecution of such 
                individuals;
                    (C) implementing specific changes which result in 
                verifiable civilian control over the Nicaraguan 
                military, security forces, and police; and
                    (D) making genuine, effective, and concrete reforms 
                in the Nicaraguan judicial system.
    (b) Denial of Waiver Authority.--The waiver authority provided for 
in section 527(g) of the Foreign Relations Authorization Act for Fiscal 
Years 1994 and 1995 (Public Law 103-236) shall not apply to Nicaragua 
for fiscal years 1996 and 1997.
    (c) Contents of Certification.--(1) A certification made pursuant 
to subsection (a) shall include a detailed accounting of all evidence 
in support of the determinations listed in paragraphs (1) through (4) 
of subsection (a).
    (2) A certification made pursuant to subsection (a) shall be 
submitted in unclassified form and, to the extent necessary to fulfill 
subsection (b)(1), classified form.
    (d) Exceptions.--Notwithstanding any other provision of this 
section, the President may support and provide assistance to the 
Government of Nicaragua for--
            (1) programs facilitating the resolution of United States 
        citizen property claims;
            (2) the International Commission for Support and 
        Verification of the Organization of American States for human 
        rights monitoring, related assistance programs or election 
        observation;
            (3) programs to facilitate free and fair elections in 1996;
            (4) programs in support of child survival, health, and 
        education;
            (5) democracy building programs administered through the 
        National Endowment for Democracy or related nongovernmental 
        groups; or
            (6) environmental programs.

SEC. 503. RESTRICTIONS ON ASSISTANCE TO NORTH KOREA AND THE KOREAN 
              PENINSULA ENERGY DEVELOPMENT ORGANIZATION.

    (a) In General.--Chapter 1 of part III of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2370 et seq.), as amended by this Act, is 
further amended by adding at the end the following new section:
``SEC. 620J. RESTRICTIONS ON ASSISTANCE TO NORTH KOREA AND THE KOREAN 
              PENINSULA ENERGY DEVELOPMENT ORGANIZATION.

    ``(a) Restrictions.--No assistance may be provided under this Act 
or any other provision of law to the Democratic People's Republic of 
Korea unless--
            ``(1) such assistance is provided in accordance with all 
        requirements, limitations, and procedures otherwise applicable 
        to the provision of such assistance for such purposes; and
            ``(2) the President--
                    ``(A) notifies the congressional committees 
                specified in section 634(a) of this Act prior to 
                obligation of such assistance in accordance with the 
                procedures applicable to reprogramming notifications 
                under that section, irrespective of the amount of the 
                proposed obligation of such assistance; and
                    ``(B) determines and reports to such committees 
                that the provision of such assistance is vital to the 
                national interests of the United States.
    ``(b) Congressional Report.--Whenever the President notifies the 
congressional committees under the provisions of subsection (a)(2), he 
shall submit a report on--
            ``(1) the exact dollar amounts pledged by every country 
        contributing to the Korean Peninsula Energy Development 
        Organization, itemized by fiscal year, including those amounts 
        requested in budget documents for future fiscal years;
            ``(2) the exact dollar amount transferred to the Korean 
        Peninsula Energy Development Organization as of the date of 
        submission of the report, itemized by country and the purpose 
        for which the funds were donated; and
            ``(3) the extent to which North Korea has complied with all 
        aspects of the Agreed Framework up to the time the report is 
        submitted, including, but not limited to, the manner in which 
        deliveries of heavy fuel oil have been used and the extent to 
        which dialogue between the Republic of Korea and the Democratic 
        People's Republic of Korea has taken place.
    ``(c) Assistance to the Korean Peninsula Energy Development 
Organization.--For purposes of providing assistance under this Act or 
under any provision of law, the obligation of assistance to the Korean 
Peninsula Energy Development Organization shall be considered to be 
obligated under the same terms, conditions, and limitations as are 
applicable to United States assistance to the Democratic People's 
Republic of Korea.''.
    (b) Effective Date.--Section 620J of the Foreign Assistance Act of 
1961, as added by subsection (a), applies with respect to assistance 
provided to the Democratic People's Republic of Korea on or after the 
date of enactment of this Act.

SEC. 504. FUTURE OF THE UNITED STATES MILITARY PRESENCE IN PANAMA.

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

SEC. 505. ELIGIBILITY OF PANAMA UNDER THE ARMS EXPORT CONTROL ACT.

    The Republic of Panama shall be eligible to purchase defense 
articles and defense services under the Arms Export Control Act (22 
U.S.C. 2751 et seq.), except as otherwise specifically provided by law.
SEC. 506. CERTIFICATION REQUIREMENTS FOR COLOMBIA WITH RESPECT TO 
              ILLEGAL DRUG PRODUCTION AND DRUG TRAFFICKING ACTIVITY FOR 
              FISCAL YEARS 1996 AND 1997.

    Section 490A of the Foreign Assistance Act of 1961 (22 U.S.C. 
2291k) is amended as follows:
            (1) In subsection (a), by striking ``subsection (b)'' each 
        place it appears and inserting ``subsections (b) and (h)''.
            (2) In subsection (b)(1), as amended by section 320, by 
        inserting ``and except as provided for in subsection (h),'' 
        after ``this subsection,''.
            (3) In subsection (d), by inserting ``or subsection (h)'' 
        after ``subsection (b)''.
            (4) In subsection (e)--
                    (A) by inserting ``(1)'' after ``Decertified.--'',
                    (B) by striking ``(1) funds'' and inserting ``(A) 
                funds'',
                    (C) by striking ``(2) the'' and inserting ``(B) 
                the'', and
                    (D) by adding at the end the following new 
                paragraph:
    ``(2) If the President does not make a certification under 
subsection (h) with respect to Colombia or the Congress enacts a joint 
resolution disapproving such certification, then until such time as the 
conditions specified in subsection (f)(1)(B) are satisfied, 
subparagraphs (A) and (B) of paragraph (1) shall apply.''.
            (5) In subsection (f)(1)--
                    (A) by striking ``(A) the President'' and inserting 
                ``(A)(i) the President'',
                    (B) by striking ``(B) the President'' and inserting 
                ``(ii) the President'',
                    (C) by striking the period at the end of 
                subparagraph (B) and inserting ``; or'', and
                    (D) by adding at the end the following new 
                subparagraph:
                    ``(B) the President makes a certification under 
                subsection (h) with respect to Colombia, and the 
                Congress does not enact a joint resolution under 
                subsection (d) disapproving the determination of the 
                President contained in that certification.''.
            (6) At the end of the section, by adding the following new 
        subsections:
    ``(h) Special Determination and Certification Procedures for 
Colombia.--For fiscal years 1996 and 1997, the following certification 
procedures shall apply for Colombia in lieu of the procedures provided 
for in subsection (b)(1):
            ``(1) What must be certified.--Subject to subsection (d), 
        the assistance withheld from Colombia pursuant to subsection 
        (a)(1) may be obligated and expended, and the requirement of 
        subsection (a)(2) to vote against multilateral development bank 
        assistance to or for a country shall not apply with respect to 
        Colombia--
                    ``(A)(i) for fiscal year 1996 if the President 
                determines and certifies to the Congress by March 1, 
                1996, the matters set forth in paragraph (2), and
                    ``(ii) for fiscal year 1997 if the President 
                determines and certifies to the Congress by March 1, 
                1997, the matters set forth in paragraph (3); or
                    ``(B) for either fiscal year 1996 or fiscal year 
                1997, if the President determines and certifies to the 
                Congress by March 1 of the relevant fiscal year that 
                the vital national interests of the United States 
                require that the assistance withheld pursuant to 
                subsection (a)(1) be provided and that the United 
                States not vote against multilateral development bank 
                assistance for that country pursuant to subsection 
                (a)(2).
            ``(2) Matters required to be certified for fiscal year 
        1996.--The matters referred to in paragraph (1)(A) are:
                    ``(A) That the Government of Colombia has made 
                substantial progress in the following matters 
                specifically committed to by the President of Colombia:
                            ``(i) Investigating contributions by drug 
                        traffickers to political parties in Colombia.
                            ``(ii) Providing funding for a sustainable 
                        alternative development program to encourage 
                        Colombian farmers to grow legal crops.
                            ``(iii) Utilizing the law enforcement 
                        resources of Colombia to investigate, capture, 
                        convict, and imprison major drug lords in 
                        Colombia and their accomplices.
                            ``(iv) Implementing and funding a proposed 
                        plan for the improvement of the administration 
                        of the Ministry of Justice of Colombia.
                            ``(v) Acting effectively to confiscate 
                        profits from activities related to illegal 
                        drugs and drug trafficking.
                            ``(vi) Enacting legislation to implement 
                        the United Nations Convention Against Illicit 
                        Traffic in Narcotic Drugs and Psychotropic 
                        Substances.
                            ``(vii) Dismantling the infrastructure in 
                        Colombia that is used for processing illegal 
                        drugs, interdicting the chemicals used for such 
                        processing, and seizing or disabling vehicles 
                        (including airplanes and ships) used to 
                        transport processed illegal drugs.
                            ``(viii) Investing in technology to improve 
                        surveillance of airports, waterways, and 
                        seaports in Colombia.
                            ``(ix) Tightening the law enforcement 
                        capabilities and commencing construction of an 
                        installation for the Colombia Coast Guard on 
                        San Andres Island, Colombia, in order to 
                        provide effective surveillance of airplane and 
                        ship traffic that departs from the island.
                            ``(x) Improving the aircraft detection and 
                        interception systems of Colombia, including the 
                        purchase of aircraft detectors.
                            ``(xi) Encouraging the adoption of an 
                        Inter-American convention to ban the 
                        establishment of a financial safe haven in any 
                        country in the Western Hemisphere.
                    ``(B) That the Government of Colombia has 
                accomplished the following matters specifically 
                committed to by the President of Colombia:
                            ``(i) The implementation of necessary 
                        reforms to increase the sentences served by 
                        drug traffickers so that the penalties be 
                        commensurate with the serious nature of their 
                        crimes and to remove loopholes for such 
                        traffickers to enter into lenient plea 
                        bargaining arrangements.
                            ``(ii) The creation of an effective 
                        investigation unit to detect and bring to 
                        prosecution individuals in Colombia who engage 
                        in corrupt activities related to drugs and drug 
                        trafficking.
                            ``(iii) The implementation of legislation 
                        to prohibit money laundering.
                            ``(iv) Implementation of Plan Resplandor, 
                        which calls for the destruction of at least 
                        37,000 hectares of coca and poppy plants in 
                        Colombia by January 1, 1996.
            ``(3) Matters required to be certified for fiscal year 
        1997.--The matters referred to in paragraph (1)(B) are:
                    ``(A) That the Government of Colombia continues to 
                make substantial progress with respect to the following 
                matters specifically committed to by the President of 
                Colombia:
                            ``(i) Investigating contributions by drug 
                        traffickers to political parties in Colombia 
                        and prosecuting those found responsible for 
                        such contributions or the acceptance of the 
                        same.
                            ``(ii) Providing funding for a sustainable 
                        alternative development program to encourage 
                        Colombian farmers to grow legal crops.
                            ``(iii) Utilizing the law enforcement 
                        resources of Colombia to investigate, capture, 
                        convict, and imprison major drug lords in 
                        Colombia and their accomplices.
                            ``(iv) Implementing and funding fully a 
                        proposed plan for the improvement of the 
                        administration of the Ministry of Justice of 
                        Colombia.
                            ``(v) Acting effectively to confiscate 
                        profits from activities related to illegal 
                        drugs and drug trafficking.
                            ``(vi) Enforcing effectively a statute 
                        prohibiting money laundering.
                            ``(vii) Implementing necessary reforms to 
                        make drug traffickers' sentences commensurate 
                        with the nature of their crimes and to 
                        eliminate loopholes by which such traffickers 
                        enter into lenient plea bargaining 
                        arrangements.
                            ``(viii) Deploying an effective 
                        investigation unit to detect and bring to 
                        prosecution individuals in Colombia who engage 
                        in corrupt activities related to illegal drugs 
                        and drug trafficking.
                            ``(ix) Dismantling the infrastructure in 
                        Colombia that is used for processing illegal 
                        drugs, interdicting the chemicals used for such 
                        processing, and seizing or disabling vehicles 
                        (including airplanes and ships) used to 
                        transport processed illegal drugs.
                            ``(x) Investing in technology to improve 
                        surveillance of airports, waterways, and 
                        seaports in Colombia.
                            ``(xi) Improving the aircraft detection and 
                        interception systems of Colombia and utilizing 
                        such systems.
                            ``(xii) Encouraging the adoption of an 
                        Inter-American convention to ban the 
                        establishment of a financial safe haven in any 
                        country in the Western Hemisphere.
                    ``(B) That the Government of Colombia has 
                accomplished the following matters specifically 
                committed to by the President of Colombia:
                            ``(i) The enactment of legislation to 
                        implement the United Nations Convention Against 
                        Illicit Traffic in Narcotic Drugs and 
                        Psychotropic Substances.
                            ``(ii) The destruction of all illicit 
                        crops, estimated at 70,000 hectares.
                            ``(iii) The construction of an installation 
                        for the Colombia Coast Guard on San Andres 
                        Island, Colombia, in order to provide effective 
                        surveillance of airplane and ship traffic that 
                        departs from the island.
            ``(4) Reports.--The Secretary of State shall submit to the 
        appropriate congressional committees a report--
                    ``(A) not later than September 1, 1995, on the 
                progress and accomplishments made by the Government of 
                Colombia in the matters set forth in paragraph (2); and
                    ``(B) not later than September 1, 1996, on the 
                progress and accomplishments made by the Government of 
                Colombia in the matters set forth in paragraph (3).
    ``(i) Additional Sanctions.--
            ``(1) Applicability.--Notwithstanding any other provision 
        of law, and after transmitting the notice provided for in 
        paragraph (3), in any instance where the President does not 
        make a determination regarding a major illicit drug-producing 
        country or major drug-transit country pursuant to subsection 
        (b) or (h), or the Congress enacts a joint resolution 
        disapproving such certification, the President, in addition to 
        those actions required by subsection (a), may take any or all 
        of the following actions that the President deems appropriate 
        to achieve the objectives of this section:
                    ``(A) Suspension of bilateral assistance.--Suspend 
                all funds, or any combination of funds, activities, or 
                programs, authorized under the Foreign Assistance Act 
                of 1961 or the Arms Export Control Act.
                    ``(B) Export-import bank.--Suspend financing by the 
                Export-Import Bank of the United States under the 
                Export-Import Bank Act of 1945.
                    ``(C) Licenses for commercial arms exports.--
                Suspend the obligation or expenditure of all funds to 
                license the commercial export of items on the United 
                States Munitions List under section 38 of the Arms 
                Export Control Act.
                    ``(D) Military activities.--Suspend the obligation 
                and expenditure of all funds expended for purposes of 
                carrying out military activities in Colombia or that 
                benefit Colombia, including joint military activities.
                    ``(E) Exclusion from entry into the united 
                states.--Take all reasonable steps provided by law to 
                ensure that public officials of such country, 
                regardless of rank, who are implicated in drug-related 
                corruption, their immediate relatives, and their 
                business partners are not permitted entry into the 
                United States, consistent with the provisions of the 
                Immigration and Nationality Act (8 U.S.C. 1101 et 
                seq.), until the completion by the government of that 
                country of an investigation into the drug-related 
                corruption of the official that is satisfactory to the 
                Secretary of State and the Attorney General of the 
                United States.
                    ``(F) Trade preferences.--
                            ``(i) Andean trade preference act.--
                        Withdraw the designation of such country as a 
                        beneficiary country under section 203 of the 
                        Andean Trade Preference Act (19 U.S.C. 3202), 
                        if applicable, pursuant to the procedures set 
                        forth in subsection (e) of that section.
                            ``(ii) Trade act of 1974.--Terminate the 
                        designation of such country as a beneficiary 
                        developing country under section 502 of the 
                        Trade Act of 1974 (19 U.S.C. 2462), pursuant to 
                        the procedures set forth in subsection (a)(2) 
                        of that section.
                            ``(iii) Free trade agreements.--Deny such 
                        country participation in the discussion or 
                        implementation of a free trade agreement 
                        involving Western Hemisphere countries, if 
                        applicable.
            ``(2) Sense of the congress regarding participation in free 
        trade agreements.--It is the sense of the Congress that--
                    ``(A) the United States should not extend tariff or 
                quota treatment equivalent to that accorded to members 
                of the North American Free Trade Agreement, or extend 
                participation in the North American Free Trade 
                Agreement, to any major drug-producing country or major 
                drug-transit country not certified under subsection (b) 
                or (h); and
                    ``(B) such a country should not be allowed to 
                participate in the discussion or implementation of a 
                free trade agreement involving Western Hemisphere 
                countries.
            ``(3) Requirements for imposition and termination of 
        sanctions.--
                    ``(A) Imposition of sanctions.--
                            ``(i) Congressional notification.--The 
                        President shall impose sanctions under this 
                        subsection by transmitting to the appropriate 
                        congressional committees a notice setting forth 
                        the sanctions to be imposed.
                            ``(ii) Effective date.--Any sanctions 
                        selected by the President to be imposed under 
                        this subsection shall take effect 7 calendar 
                        days after the notice has been received by the 
                        Congress.
                    ``(B) Termination of sanctions.--(i) Sanctions 
                imposed under this subsection shall terminate 15 
                calendar days after the date on which the President 
                transmits to the appropriate congressional committees a 
                notice terminating the sanctions.
                    ``(ii) Upon the termination of sanctions under 
                paragraph (1)(F), any trade designation withdrawn or 
                terminated under paragraph (1)(F) shall be reinstated 
                pursuant to the provisions of the applicable law under 
                which the trade benefits were extended.''.

SEC. 507. REPORT ON ISRAELI DEBT.

    Not later than 90 days after the date of enactment of this Act, and 
on October 1 of each year thereafter, the Secretary of State, in 
consultation with the Secretary of the Treasury, the Secretary of 
Defense, and the Secretary of Agriculture, shall submit to the 
appropriate congressional committees a report itemizing all United 
States Government held and guaranteed debt owed by the Government of 
Israel to the United States, including but not limited to, an 
accounting of--
            (1) United States guaranteed debt held by commercial banks;
            (2) debt held by the Federal Financing Bank;
            (3) maturity dates of loans, the amount of annual interest 
        payments, and amounts of principal and interest; and
            (4) the estimated budgetary cost to the United States 
        Government of canceling Israeli government debt to the United 
        States held by the United States Government and the Federal 
        Financing Bank.

SEC. 508. REPORT ON INVOLVEMENT BY SENIOR MEXICAN GOVERNMENT OFFICIALS 
              IN ILLEGAL DRUG TRAFFICKING.

    (a) Report.--Not later than 30 days after the date of enactment of 
this Act, the President shall transmit a report to the appropriate 
congressional committees setting forth all information available to the 
United States Government with respect to the involvement, since March 
1, 1991, by senior officials of the Government of Mexico, their 
relatives, and close associates in the illegal trafficking in 
controlled substances (as defined in section 102(6) of the Controlled 
Substances Act (21 U.S.C. 802(6)) or in any act to aid or abet such 
illegal trafficking.
    (b) Definitions.--As used in this section:
            (1) Aid or abet.--The phrase ``aid or abet'' includes any 
        act to facilitate illegal trafficking in controlled substances, 
        including any solicitation or receipt of anything of value in 
        consideration of aiding a person to engage in illegal 
        trafficking of such substances.
            (2) Trafficking.--The term ``trafficking'' means 
        transporting, transferring, or otherwise disposing of, to 
        another, as consideration for anything of value, or making or 
        obtaining control of with the intent to so transport, transfer, 
        or dispose of.

SEC. 509. PROHIBITION ON ANTI-NARCOTICS ASSISTANCE TO BURMA.

    (a) Prohibition.--None of the funds made available under this or 
any other Act may be used to provide assistance to the State Law Order 
Restoration Council (SLORC) to support efforts to combat illicit 
narcotics production and trafficking in Burma (Myanmar).
    (b) Exceptions.--Subsection (a) shall not apply to--
            (1) United States funded crop-substitution projects funded 
        through nongovernmental organizations in an area controlled by 
        a Burmese ethnic minority; or
            (2) antinarcotics training conducted by any agency of the 
        United States Government, as long as the training does not 
        involve the transfer of equipment, lethal, or nonlethal.
    (c) Intelligence Sharing.--None of the funds made available under 
this or any other Act may be used to provide intelligence information 
based on sensitive sources and methods of intelligence gathering to the 
State Law and Order Restoration Council (SLORC) in Burma (Myanmar).
SEC. 510. CLARIFICATION OF RESTRICTIONS UNDER SECTION 620E OF THE 
              FOREIGN ASSISTANCE ACT OF 1961.

    Section 620E of the Foreign Assistance Act of 1961 (22 U.S.C. 2375) 
is amended--
            (1) in subsection (e)--
                    (A) by striking ``No assistance'' and inserting 
                ``No military assistance'';
                    (B) by striking ``in which assistance is to be 
                furnished or military equipment or technology'' and 
                inserting ``in which military assistance is to be 
                furnished or military equipment or technology'';
                    (C) by striking ``the proposed United States 
                assistance'' and inserting ``the proposed United States 
                military assistance'';
                    (D) by inserting ``(1)'' immediately after ``(e)''; 
                and
                    (E) by adding at the end the following new 
                paragraph:
    ``(2) The prohibitions in this subsection do not apply to any 
assistance or transfer provided for the purposes of--
            ``(A) international narcotics control (including chapter 8 
        of part I of this Act) or any other provision of law available 
        for providing assistance for counternarcotics purposes;
            ``(B) facilitating military-to-military contact, training 
        (including chapter 5 of part II of this Act), or humanitarian 
        or civic assistance projects;
            ``(C) peacekeeping and other multilateral operations 
        (including chapter 6 of part II of this Act, relating to 
        peacekeeping) or any provisions of law available for providing 
        assistance for peacekeeping purposes, except that any lethal 
        military equipment provided under this subparagraph shall be 
        provided on a lease or loan basis only and shall be returned 
        upon completion of the operation for which it was provided; or
            ``(D) antiterrorism assistance (including chapter 8 of part 
        II of this Act, relating to antiterrorism assistance) or any 
        other provision of law available for antiterrorism assistance 
        purposes.''; and
            (2) by adding at the end the following new subsections:
    ``(f) Storage Costs.--The President may release the Government of 
Pakistan of its contractual obligation to pay the United States 
Government for the storage costs of items purchased prior to October 1, 
1990, but not delivered by the United States Government by virtue of 
the application of subsection (e) and may reimburse the Government of 
Pakistan for any such amounts paid, on such terms and conditions as the 
President may prescribe, if such payments would have no impact on the 
scoring of United States budget authority or outlays.
    ``(g) Return of Military Equipment.--The President may return to 
the Government of Pakistan military equipment paid for and delivered to 
Pakistan and subsequently transferred for repair or upgrade to the 
United States but not returned to Pakistan by virtue of the application 
of subsection (e). Such equipment or its equivalent may be returned to 
the Government of Pakistan if the President determines and so certifies 
to the appropriate congressional committees that such equipment or 
equivalent neither constitutes nor has received any significant 
qualitative upgrade since being transferred to the United States.
    ``(h) Sense of Congress; Report.--
            ``(1) Sense of congress.--It is the sense of the Congress 
        that--
                    ``(A) fundamental United States policy interests in 
                South Asia include--
                            ``(i) resolving underlying disputes that 
                        create the conditions for nuclear 
                        proliferation, missile proliferation, and the 
                        threat of regional catastrophe created by 
                        weapons of mass destruction;
                            ``(ii) achieving cooperation with the 
                        United States on counterterrorism, 
                        counternarcotics, international peacekeeping, 
                        and other United States international efforts; 
                        and
                            ``(iii) achieving mutually verifiable 
                        limitations on fissile material production, 
                        expansion and enhancement of the mutual `no 
                        first strike pledge', and a commitment to work 
                        with the United States to limit, rollback, and 
                        eliminate all nuclear weapons programs in South 
                        Asia;
                    ``(B) to create the conditions for lasting peace in 
                South Asia, United States policy toward the region must 
                be balanced and should not reward any country for 
                actions inimical to the United States interest;
                    ``(C) the President should initiate a regional 
                peace process in South Asia with both bilateral and 
                multilateral tracks that includes both India and 
                Pakistan; and
                    ``(D) the South Asian peace process should have on 
                its agenda the resolution of the following:
                            ``(i) South Asian nuclear proliferation, 
                        including mutually verifiable limitations on 
                        fissile material production, expansion, and 
                        enhancement of the mutual `no first strike' 
                        pledge, and a commitment to work with the 
                        United States to limit, rollback, and eliminate 
                        all nuclear weapons programs in South Asia.
                            ``(ii) South Asian missile proliferation.
                            ``(iii) Indian and Pakistani cooperation 
                        with Iran.
                            ``(iv) The resolution of existing 
                        territorial disputes, including Kashmir.
                            ``(v) Regional economic cooperation.
                            ``(vi) Regional threats, including threats 
                        posed by Russia and China.
            ``(2) Report.--Whenever a report is required to be 
        submitted under section 620F(c) of the Foreign Assistance Act 
        of 1961, the President shall submit a report to the appropriate 
        congressional committees on the progress of the South Asian 
        peace process described in paragraph (1). Each report shall 
        describe--
                    ``(A) whether South Asian countries are working to 
                further United States interests;
                    ``(B) proposed United States actions to further the 
                resolution of the conflict in South Asia as described 
                in paragraph (1) and to further United States 
                international interests;
                    ``(C) the degree and extent of cooperation by South 
                Asian countries with all United States international 
                efforts, including voting support within the United 
                Nations; and
                    ``(D) whether withholding of military assistance, 
                dual-use technology, economic assistance, and trade 
                sanctions would further United States interests.''.
SEC. 511. STATEMENT OF POLICY AND REQUIREMENT FOR REPORT ON OIL 
              PIPELINE THROUGH AZERBAIJAN, ARMENIA, GEORGIA, AND 
              TURKEY.

    (a) Policy.--It is the sense of the Senate that the United States 
should support the construction of an oil pipeline through Azerbaijan, 
Armenia, and Turkey.
    (b) Report.--Not later than 60 days after the date of the enactment 
of this Act, the President shall submit to the Committee on Foreign 
Relations of the Senate and the Committee on International Relations of 
the House of Representatives a report analyzing potential routes for 
the construction of an oil pipeline on and through the territories of 
Azerbaijan, Armenia, Georgia, and Turkey. The report shall include a 
discussion of the advantages and disadvantages of different routes for 
the pipeline, including--
            (1) the amount of oil that could be transported along each 
        route of the pipeline;
            (2) the cost of constructing the pipeline along each route;
            (3) options for commercial and public financing of 
        construction of each route of the pipeline; and
            (4) the impact on regional stability of the operation of 
        the pipeline along each route.

SEC. 512. REPORTS ON ERADICATION OF PRODUCTION AND TRAFFICKING IN 
              NARCOTIC DRUGS AND MARIJUANA.

    Chapter 8 of part I of the Foreign Assistance Act of 1961 (22 
U.S.C. 2291 et seq.) is amended by adding at the end the following:

``SEC. 490B. REPORTS ON ERADICATION OF PRODUCTION AND TRAFFICKING IN 
              NARCOTIC DRUGS AND MARIJUANA.

    ``(a) In General.--Not later than January 30 and June 30 of each 
year, the President shall submit to the appropriate congressional 
committees a report on the progress made by the United States in 
eradicating production of and trafficking in illicit drugs. The report 
shall be submitted in unclassified form with a classified annex, if 
required.
    ``(b) Report Elements.--Each report under subsection (a) shall 
include the following:
            ``(1) A description of the actions taken by the United 
        States during the 6-month period preceding the date of the 
        report--
                    ``(A) to assist countries in which illicit drugs 
                are produced in arresting, convicting, and imprisoning 
                individuals and groups that produce such drugs; and
                    ``(B) to assist countries through which illicit 
                drugs destined for the United States are shipped in 
                arresting, convicting, and imprisoning individuals and 
                groups that ship such drugs.
            ``(2) A description of other actions taken by the United 
        States during that period--
                    ``(A) to assist countries in which cocaine is 
                produced in eradicating the production of coca; and
                    ``(B) to decrease the flow of illicit drugs into 
                the United States.
            ``(3) An assessment of the effectiveness of the actions 
        covered by paragraphs (1) and (2).
            ``(4) A description of the major drug trafficking 
        organizations that operate in the United States and a plan that 
        sets forth the manner in which the law enforcement resources of 
        the United States will be utilized to dismantle such 
        organizations.
            ``(5) A statement of the number of deaths due to illicit 
        drugs (including deaths due to drug-related murders and deaths 
        by drug-induced overdoses) in the United States during that 
        period.
            ``(6) A statement of the number of arrests and 
        incarcerations related to illicit drugs in the United States 
        during that period.
    ``(c) Requirement for January 30, 1996, Report.--In addition to the 
matters set forth in subsection (b), the report submitted by the 
President under subsection (a) for January 30, 1996, shall include an 
assessment of the capability of the United States to eradicate coca 
production in the Western Hemisphere, including--
            ``(1) an assessment of whether or not complete eradication 
        of coca production in the Western Hemisphere is technologically 
        feasible; and
            ``(2) if eradication of such production is considered 
        feasible, an assessment of--
                    ``(A) the resources (including any herbicides and 
                aircraft) required for the eradication;
                    ``(B) the environmental consequences of the 
                utilization of any herbicide proposed for use in the 
                eradication;
                    ``(C) the time required for completion of the 
                eradication; and
                    ``(D) the cost of the eradication.
    ``(d) Definitions.--As used in this section--
            ``(1) The term `illicit drugs' means marihuana and narcotic 
        drugs.
            ``(2) The term `marijuana' has the meaning given such term 
        in section 102(16) of the Controlled Substances Act (21 U.S.C. 
        802(16)).
            ``(3) The term `narcotic drug' has the meaning given such 
        term in section 102(17) of such Act (21 U.S.C. 802(17)).''.

SEC. 513. REPORTS ON COMMERCIAL DISPUTES WITH PAKISTAN.

    (a) Reporting Requirement.--Thirty days after the date of enactment 
of this Act, and every 90 days thereafter, the Secretary of State, in 
consultation with the Secretary of Commerce, shall report to the 
Committee on Foreign Relations of the Senate and the Committee on 
International Relations of the House of Representatives on the status 
of disputes between the Government of Pakistan and United States 
persons with respect to cellular telecommunications, and on the 
progress of efforts to resolve such disputes.
    (b) Termination of Reporting Requirement.--The requirement of 
subsection (a) shall terminate upon certification by the Secretary of 
State to the Committee on International Relations of the House of 
Representatives and the Committee on Foreign Relations of the Senate 
that all significant disputes between the Government of Pakistan and 
United States persons with respect to cellular communications have been 
satisfactorily resolved.

SEC. 514. NONPROLIFERATION AND DISARMAMENT FUND.

    (a) In General.--There are authorized to be appropriated 
$25,000,000 for each of the fiscal years 1996 and 1997 to carry out 
bilateral and multilateral nonproliferation and disarmament activities 
for the independent states of the former Soviet Union, countries other 
than the independent states of the former Soviet Union, and 
international organizations under section 504 of the Freedom for Russia 
and Emerging Eurasian Democracies and Open Markets Support Act of 1992 
(22 U.S.C. 5854).
    (b) Supersedes Other Laws.--Funds made available for fiscal years 
1996 and 1997 under subsection (a) may be used notwithstanding any 
other provision of law.
    (c) Availability of Amounts.--Amounts authorized to be appropriated 
under subsection (a) are authorized to remain available until expended.
SEC. 515. RUSSIAN NUCLEAR TECHNOLOGY AGREEMENT WITH IRAN.

    (a) Findings.--The Congress finds that--
            (1) Iran is aggressively pursuing a program to acquire or 
        develop nuclear weapons, or both;
            (2) the Director of Central Intelligence, in September of 
        1994, confirmed that Iran is manufacturing and stockpiling 
        chemical weapons;
            (3) Iran has opposed the Middle East peace process and 
        continues to support the terrorist group Hezballah in Lebanon 
        and radical Palestinian groups;
            (4) Iran has asserted control over the Persian Gulf island 
        of Abu Musa, which it had been previously sharing with the 
        United Arab Emirates;
            (5) during the last few years Iran has reportedly acquired 
        several hundred improved Seud missiles from North Korea;
            (6) Iran has moved modern air defense missile systems, 
        tanks, additional troops, artillery, and surface-to-surface 
        missiles onto islands in the Persian Gulf, some of which are 
        disputed between Iran and the United Arab Emirates;
            (7) Iran has already taken delivery of as many as 30 modern 
        MiG-29 fighter aircraft from the Russian Federation;
            (8) the Russian Federation has sold modern conventionally 
        powered submarines to Iran, which increases Iran's capability 
        to blockade the Straits of Hormuz and the Persian Gulf; and
            (9) the Russian Federation has continued to pursue a 
        commercial agreement intended to provide Iran with nuclear 
        technology despite being provided with a detailed description 
        by the President of United States of Iran's nuclear weapons 
        program.
    (b) Sense of Congress.--It is the sense of Congress that the 
Russian Federation should be strongly condemned if it continues with a 
commercial agreement to provide Iran with nuclear technology which 
would assist that country in its development of nuclear weapons, and, 
if such transfer occurs, that the Russian Federation would be 
ineligible for assistance under the terms of the Freedom Support Act.
SEC. 516. SUPPORTING A RESOLUTION TO THE LONG-STANDING DISPUTE 
              REGARDING CYPRUS.

    (a) Findings.--The Congress finds that--
            (1) the long-standing dispute regarding Cyprus remains 
        unresolved;
            (2) the Turkish military presence in the territory of the 
        Republic of Cyprus has continued for more than 20 years;
            (3) the status quo on Cyprus remains unacceptable;
            (4) the United States attaches great importance to a just 
        and peaceful resolution of the dispute regarding Cyprus;
            (5) the United Nations and the United States are using 
        their good offices to resolve such dispute;
            (6) on January 5, 1995, President Clinton appointed a 
        Special Presidential Emissary for Cyprus;
            (7) the United Nations has adopted numerous resolutions 
        that set forth the basis of a solution for the dispute 
        regarding Cyprus;
            (8) paragraph (2) of United Nations Security Council 
        Resolution 939 of July 29, 1994, reaffirms that a solution must 
        be based on a state of Cyprus with a single sovereignty and 
        international personality, and a single citizenship, with its 
        independence and territorial integrity safeguarded, and 
        comprising two politically equal communities as described in 
        the relevant Security Council resolutions, in a bicommunal and 
        bizonal federation, and that such a settlement must exclude 
        union in whole or in part with any other country or any form of 
        partition or secession;
            (9) the United Nations Secretary General has described the 
        militarily occupied part of Cyprus as one of the most highly 
        militarized areas in the world;
            (10) the continued Turkish military presence on Cyprus 
        hampers the search for a freely negotiated solution to the 
        dispute regarding Cyprus;
            (11) the United Nations and the United States have called 
        for the withdrawal of all foreign troops from the territory of 
        the Republic of Cyprus; and
            (12) comprehensive plans for the demilitarization of the 
        Republic of Cyprus have been proposed.
    (b) Sense of Congress.--The Congress--
            (1) reaffirms that the status quo on Cyprus is 
        unacceptable;
            (2) welcomes the appointment of a Special Presidential 
        Emissary for Cyprus;
            (3) expresses its continued strong support for efforts by 
        the United Nations Secretary General and the United States 
        Government to help resolve the Cyprus problem in a just and 
        viable manner at the earliest possible time;
            (4) insists that all parties to the dispute regarding 
        Cyprus agree to seek a solution based upon the relevant United 
        Nations resolutions, including paragraph (2) of United Nations 
        Security Council Resolution 939 of July 29, 1994;
            (5) reaffirms the position that all foreign troops should 
        be withdrawn from the territory of the Republic of Cyprus;
            (6) considers that demilitarization of the Republic of 
        Cyprus would meet the security concerns of all parties 
        involved, would enhance prospects for a peaceful and lasting 
        resolution of the dispute regarding Cyprus, would benefit all 
        of the people of Cyprus, and merits international support; and
            (7) encourages the United Nations Security Council and the 
        United States Government to consider alternative approaches to 
        promote a resolution of the long-standing dispute regarding 
        Cyprus based upon relevant Security Council resolutions, 
        including incentives to encourage progress in negotiations or 
        effective measures against any recalcitrant party.

SEC. 517. REPORTS ON CERTAIN ACTIVITIES OF THE CITY OF MOSCOW 
              GOVERNMENT.

    (a) Reporting Requirement.--The Secretary of State, in consultation 
with the United States diplomatic chief of mission in Moscow, shall 
submit to the appropriate congressional committees an annual report on 
the activities of the government of the city of Moscow in taking over 
or seizing control of foreign joint ventures and joint stock companies.
    (b) Contents of Reports.--Each report submitted under subsection 
(a) shall contain the following information or answers to the following 
questions:
            (1) Has the Moscow City government increased its control 
        over a foreign joint venture or foreign joint stock company by 
        decrees or other unilateral governmental action since the last 
        report or, in the case of the initial report, since the date of 
        enactment of this Act?
            (2) Have there been any complaints during the past 12 
        months from American companies against the Moscow City 
        government with regard to interfering in legal day-to-day 
        management activities of foreign joint ventures or foreign 
        joint stock companies?
            (3) Has the Moscow City government refused to reregister 
        joint ventures or joint stock companies in order to renegotiate 
        already signed contracts and agreements?
            (4) Has the Moscow City government taken actions under its 
        ``governmental authority'' to abridge contracts or other legal 
        rights of foreign joint ventures and foreign stock companies?
            (5) Has the Moscow City government acted arbitrarily or 
        unilaterally to settle a business dispute by using its inherent 
        governmental powers rather than submitting the dispute to a 
        proper arbitration tribunal?
            (6) Is the Moscow City government's basis for taxation, 
        utilities, licensing, and fees and other city or region-
        oriented taxes or fees charged on the same basis for Russian-
        owned or city-owned enterprises as they are to foreign joint 
        ventures or joint stock companies?
            (7) The report shall include a general description of any 
        complaints made by American businesses to the United States 
        diplomatic mission in Moscow as to corruption in the city of 
        Moscow government or any other Russian governmental entity.

SEC. 518. STATEMENT OF POLICY ON AFRICA.

    (a) Findings.--The Congress makes the following findings:
            (1) The Sub-Saharan African continent comprises one-quarter 
        of the world's land mass, and includes 800,000,000 people.
            (2) Consistent with section 3(b) of this Act, United States 
        assistance to Africa can--
                    (A) enhance the security of the United States;
                    (B) promote United States trade and investment;
                    (C) combat transnational threats to United States 
                security, including health, environment, population, 
                and migration;
                    (D) aid the process of private sector economic 
                development; and
                    (E) provide urgent humanitarian assistance to 
                countries and people suffering from natural disasters.
            (3) The United States was engaged militarily and 
        financially in some African countries during the Cold War for 
        national security purposes and, therefore, has demonstrated 
        that Africa is important for American strategic interests.
            (4) The African continent is rich in natural resources, and 
        is the final development frontier for the United States. With 
        the support of the United States, many African countries have 
        taken steps to lift people out of poverty, such as 
        restructuring their economies, beginning to consolidate 
        democratic reforms, implementing literacy programs, promoting 
        the growth of capitalism, and encouraging free trade and 
        investment. These factors will benefit United States investors 
        and trade.
            (5) Transnational threats such as narcotics trafficking, 
        weapons proliferation, the spread of HIV/AIDS and other 
        diseases, environmental degradation, population explosions, and 
        terrorism, cannot be combatted if Africa is not a willing and 
        able partner.
            (6) Many humanitarian and natural disasters have occurred 
        in Africa and have cost the United States in money and troops, 
        but with a small investment in conflict resolution capacities 
        as well as adequate responses to early warning systems, large 
        expenses and crises in Africa may be avoided.
            (7) Assistance programs focusing on health care, child 
        survival, population, education and training, natural resource 
        management, market reform, and human rights education are 
        necessary components of sustainable development, and will 
        benefit American business relationships, political 
        partnerships, and humanitarian conditions.
    (b) Policy.--It shall be the policy of the United States that the 
African continent is relevant to United States security, economic, 
political, and humanitarian interests, and that long-term development 
assistance to African nations directly complements United States 
foreign policy goals and national security interests.
           TITLE VI--INTERNATIONAL ORGANIZATIONS AND PROGRAMS
SEC. 601. VOLUNTARY CONTRIBUTIONS; UNITED NATIONS CHILDREN'S FUND.

    Section 302(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2222(a)) is amended to read as follows:
    ``(a)(1) There are authorized to be appropriated to the President, 
in addition to funds otherwise available for such purpose, $225,000,000 
for fiscal year 1996, and $225,000,000 for fiscal year 1997, for 
voluntary contributions under this chapter to international 
organizations and programs, of which amounts not less than $103,000,000 
for each fiscal year shall be available only for the United Nations 
Children's Fund (UNICEF).
    ``(2) Funds appropriated pursuant to paragraph (1) are authorized 
to remain available until expended.''.

SEC. 602. UNITED NATIONS FUND FOR POPULATION ACTIVITIES.

    (a) Limitation.--(1) Subject to subsections (b), (c), and (d)(2), 
of the amounts made available for each of the fiscal years 1996 and 
1997 to carry out part I of the Foreign Assistance Act of 1961, not 
more than $35,000,000 shall be available each such fiscal year for the 
United Nations Fund for Population Activities.
    (2) Amounts made available to the Fund for each of the fiscal years 
1996 and 1997 under part I of the Foreign Assistance Act of 1961 shall 
be available for expenditure without fiscal year limitation.
    (b) Prohibition on Use of Funds for China.--None of the funds made 
available under this section shall be made available for activities in 
the People's Republic of China.
    (c) Conditions on Availability of Funds.--Amounts made available 
for each of the fiscal years 1996 and 1997 under part I of the Foreign 
Assistance Act of 1961 for the United Nations Fund for Population 
Activities may not be made available to the Fund unless--
            (1) the Fund maintains amounts made available to the Fund 
        under this section in an account separate from accounts of the 
        Fund for other funds; and
            (2) the Fund does not commingle amounts made available to 
        the Fund under this section with other funds.
    (d) Reports.--(1) Not later than February 15, 1996, and February 
15, 1997, the Secretary of State shall submit to the appropriate 
congressional committees a report indicating the amount of funds in the 
United Nations Fund for Population Activities that will be used in the 
year in which the report is submitted for activities in the People's 
Republic of China.
    (2) If a report under paragraph (1) indicates that the amount of 
funds in the United Nations Fund for Population Activities that will be 
used for activities in the People's Republic of China in the year 
covered by the report exceeds $7,000,000, then the amount of funds in 
the Fund available for obligation for the remainder of the fiscal year 
in which the report is submitted shall be reduced by $7,000,000.

SEC. 603. WITHHOLDING OF UNITED STATES PROPORTIONATE SHARE FOR PROGRAMS 
              OF INTERNATIONAL ORGANIZATIONS.

    Section 307 of the Foreign Assistance Act of 1961 (22 U.S.C. 2227) 
is amended to read as follows:

``SEC. 307. WITHHOLDING OF UNITED STATES PROPORTIONATE SHARE FOR 
              PROGRAMS OF INTERNATIONAL ORGANIZATIONS.

    ``(a) Requirement To Withhold.--Funds authorized to be appropriated 
by this chapter shall not be available for the United States 
proportionate share for programs, projects, or activities for countries 
or organizations described in subsection (d). This prohibition applies 
notwithstanding any provision of law that earmarks funds under this 
chapter for a specified international organization or program.
    ``(b) Use of Funds Withheld.--Funds returned or not made available 
for programs or projects pursuant to subsection (a) shall be returned 
to the miscellaneous receipts account of the Treasury of the United 
States.
    ``(c) Obligations.--The President--
            ``(1) shall review, at least annually, the budgets and 
        accounts of all international organizations receiving payments 
        of any funds authorized to be appropriated by this chapter; and
            ``(2) shall report to the appropriate congressional 
        committees the amounts of funds expended by each such 
        organization for programs or projects described in subsection 
        (d) and the amount contributed by the United States to each 
        such organization.
    ``(d) Programs and Projects Covered.--Subsection (a) applies with 
respect to programs, projects, or activities for Cuba, Iran, Libya, 
Iraq, North Korea, Sudan, Syria, and Burma.''.

SEC. 604. REPORTS ON VOLUNTARY CONTRIBUTIONS TO INTERNATIONAL 
              ORGANIZATIONS BY ALL UNITED STATES GOVERNMENT AGENCIES.

    Section 306 of the Foreign Assistance Act of 1961 (22 U.S.C. 2226) 
is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking out the first 
                three sentences and inserting in lieu thereof the 
                following: ``Not later than January 31 of each year, 
                the President shall transmit a report to the 
                appropriate congressional committees listing all 
                voluntary contributions by the United States Government 
                to international organizations during the preceding 
                fiscal year.''; and
                    (B) in paragraph (2)--
                            (i) by striking out ``promptly''; and
                            (ii) by inserting ``on a quarterly basis'' 
                        after ``Budget''; and
            (2) by adding at the end the following new subsection:
    ``(c) Justification of National Interest.--The President shall 
transmit as part of each report required by subsection (b)(1) a 
justification of the manner in which United States voluntary 
contributions to international organizations benefit United States 
national security or other national interests. This justification shall 
include, for each organization, the purpose and objectives of the 
United States contribution, a description of the benefits to United 
States national security or other national interests.
SEC. 605. RESTRICTIONS ON FUNDING FOR UNITED NATIONS DEVELOPMENT 
              PROGRAM.

    (a) Funds for Fiscal Year 1996.--(1) Of the funds allocated to the 
United Nations Development Program (UNDP) for fiscal year 1996, 20 
percent shall be withheld from disbursement until the President 
certifies to the appropriate Congressional committees that UNDP has 
terminated its activities in Burma.
    (2) Upon making a certification under paragraph (1), the funds 
withheld under that paragraph are authorized to be made available.
    (b) Funds for Fiscal Year 1997.--Funds allocated to the United 
Nations Development Program for fiscal year 1997 shall be withheld from 
disbursement by the amount of funds that the United Nations Development 
Program made available for activities in Burma in the fiscal year 1996, 
unless the President has made the certification under subsection (a)(1) 
that the United Nations Development Program has terminated its 
activities in Burma in fiscal year 1996.
SEC. 606. REPLENISHMENT OF THE ASIAN DEVELOPMENT BANK.

    The Asian Development Bank Act (22 U.S.C. 285-285aa) is amended by 
adding at the end the following new section:

``SEC. 31. FOURTH REPLENISHMENT.

    ``(a) Subscription Authority.--
            ``(1) In general.--The United States Governor of the Bank 
        may, on behalf of the United States, subscribe to 276,105 
        shares of the increase in the capital stock of the Bank--
                    ``(A) 5,522 of which shall be shares of paid-in 
                capital stock; and
                    ``(B) 270,583 of which shall be shares of callable 
                capital stock.
            ``(2) Subject to appropriations.--The authority provided by 
        paragraph (1) shall be effective only to such extent or in such 
        amounts as are provided in advance in appropriations Acts.
    ``(b) Limitations on Authorization of Appropriations.--For the 
subscription authorized by subsection (a), there are authorized to be 
appropriated to the Secretary of the Treasury $13,320,000 for each of 
the fiscal years 1996 and 1997.''.
SEC. 607. REPUBLIC OF CHINA (TAIWAN'S) PARTICIPATION IN THE UNITED 
              NATIONS.

    (a) Findings.--The Congress finds that--
            (1) the Republic of China was the first signatory to the 
        Charter of the United Nations in 1945 and remained an active 
        member of that world body until 1971;
            (2) China was divided in 1949, and the Republic of China 
        (hereinafter referred to as ``Taiwan'') and the People's 
        Republic of China (hereinafter referred to as ``Mainland 
        China'') have exercised exclusive jurisdiction over their 
        respective areas since then;
            (3) Taiwan has the 19th largest gross national product in 
        the world, a strong and vibrant economy, and one of the largest 
        foreign exchange reserves of any nation;
            (4) Taiwan has dramatically improved its record on human 
        rights and routinely holds free and fair elections in a 
        multiparty system, as evidenced most recently by the December 
        3, 1994, balloting for local and provincial officials;
            (5) the 21,000,000 people in Taiwan have not been 
        represented in the United Nations since 1971 and their human 
        rights as citizens of the world have therefor been severely 
        abridged;
            (6) Taiwan has in recent years repeatedly expressed its 
        strong desire to participate in the United Nations;
            (7) Taiwan has much to contribute to the work and funding 
        of the United Nations;
            (8) Taiwan has demonstrated its commitment to the world 
        community by responding to the international disasters and 
        crises such as environmental destruction in the Persian Gulf 
        and famine in Rwanda by providing financial donations, medical 
        assistance, and other forms of aid;
            (9) the world community has reacted positively to Taiwan's 
        desire for international participation, as shown by Taiwan's 
        continued membership in the Asian Development Bank, the 
        admission of Taiwan into the Asia-Pacific Economic Cooperation 
        Group as a full member, and the accession of Taiwan as an 
        observer at the General Agreement on Tariffs and Trade as the 
        first step toward becoming a contracting party to that 
        organization;
            (10) the United States has supported Taiwan's participation 
        in these bodies and indicated, in its policy review of 
        September 1994, a stronger and more active policy of support 
        for Taiwan's participation in other international 
        organizations;
            (11) Taiwan has repeatedly stated that its participation in 
        international organizations is one of parallel representation 
        without prejudice to the current status of Mainland China in 
        the international community and does not represent a challenge 
        to that status;
            (12) the United Nations and other international 
        organizations have established precedents concerning parallel 
        representation, such as the cases of South Korea and North 
        Korea and the two former Germanies;
            (13) the decision of the United States to establish 
        diplomatic relations with Mainland China, as expressed in the 
        Taiwan Relations Act (Public Law 96-8), is based ``upon the 
        expectation that the future of Taiwan will be determined by 
        peaceful means''; and
            (14) Taiwan's participation in international organizations 
        would not prevent or imperil the eventual resolution of 
        disputes between Taiwan and Mainland China any more than 
        participation in international organizations by the former West 
        Germany and the former East Germany prevented the eventual 
        settlement of Germany's national status by peaceful and 
        democratic means.
    (b) Sense of Congress.--It is the sense of the Congress that the 
Government of the United States should immediately encourage the United 
Nations to take action by considering the unique situation of Taiwan in 
the international community and adopting a comprehensive solution to 
accommodate Taiwan in the United Nations and its related agencies.
SEC. 608. REPUBLIC OF CHINA (TAIWAN'S) PARTICIPATION IN THE WORLD TRADE 
              ORGANIZATION.

    (a) Findings.--The Congress finds that--
            (1) the purpose of the General Agreement on Tariffs and 
        Trade (hereafter in this section referred to as the ``GATT'') 
        and the World Trade Organization (hereafter in this section 
        referred to as the ``WTO'') is to enable member countries to 
        conduct trade based upon free market principles, by limiting 
        government intervention in the form of state subsidies, by 
        limiting nontariff barriers, and by encouraging reciprocal 
        reductions in tariffs among members;
            (2) the GATT and the WTO are based on the assumption that 
        the import and export of goods are conducted by independent 
        enterprises responding to profit incentives and market forces;
            (3) the GATT and the WTO require that nonmarket economies 
        implement significant reforms to change centralized and planned 
        economic systems before becoming a full GATT or WTO member and 
        the existence of a decentralized and a free market
         economy is considered a precondition to fair trade among GATT 
and WTO members;
            (4) the People's Republic of China (hereinafter referred to 
        as ``China'') and the Republic of China on Taiwan (hereinafter 
        referred to as ``Taiwan'') applied for membership in the GATT 
        in 1986 and 1991, respectively, and Working Parties have been 
        established by the GATT to review their applications;
            (5) China insists that Taiwan's membership in the GATT or 
        the WTO be granted only after China becomes a full member of 
        the GATT or the WTO;
            (6) Taiwan has a free market economy that has existed for 
        more than 3 decades, and is currently the 14th largest trading 
        nation in the world;
            (7) Taiwan has a gross national product that is the world's 
        20th largest, its foreign exchange reserves are among the 
        largest in the world, and it has become the world's 7th largest 
        outbound investor;
            (8) Taiwan has made substantive progress in agreeing to 
        reduce upon accession to the GATT or the WTO the tariff level 
        of many products, and nontariff barriers;
            (9) Taiwan has also made significant progress in other 
        aspects of international trade, such as in intellectual 
        property protection and opening its financial services market;
            (10) despite some progress in reforming its economic 
        system, China still retains legal and institutional practices 
        that restrict free market competition and are incompatible with 
        GATT and WTO principles;
            (11) China still uses an intricate system of tariff and 
        nontariff administrative controls to implement its industrial 
        and trade policies, and China's tariffs on foreign goods, such 
        as automobiles, can be as high as 150 percent, even though 
        China has made commitments in the market access memorandum of 
        understanding to reform significant parts of its import regime;
            (12) China continues to use direct and indirect subsidies 
        to promote exports;
            (13) China often manipulates its exchange rate to impede 
        balance of payments adjustments and gain unfair competitive 
        advantages in trade; and
            (14) Taiwan's and China's accession to the GATT and the WTO 
        have important implications for the United States and the world 
        trading system.
    (b) Sense of Congress.--It is the sense of the Congress that--
            (1) the United States should separate Taiwan's application 
        for membership in the GATT and the WTO from China's application 
        for membership in those organizations;
            (2) the United States should support Taiwan's earliest 
        membership in the GATT and the WTO;
            (3) the United States should support the membership of 
        China in the GATT and the WTO only if a sound bilateral 
        commercial agreement is reached between the United States and 
        China, and that China makes significant progress in making its 
        economic system compatible with GATT and WTO principles; and
            (4) China's application for membership in the GATT and the 
        WTO should be reviewed strictly in accordance with the rules, 
        guidelines, principles, precedents, and practices of the GATT 
        and the WTO.
         TITLE VII--SPECIAL AUTHORITIES AND GENERAL PROVISIONS

                   CHAPTER 1--REPORTING REQUIREMENTS

SEC. 701. ANNUAL ALLOCATION REPORTS.

    Section 653(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2395(b)) is amended by inserting ``for a period of less than 90 days'' 
after ``continuing appropriations''.

SEC. 702. REPORT ON EXPROPRIATION OF UNITED STATES PROPERTY.

    (a) Reporting Requirement.--At the beginning of each fiscal year, 
the President shall transmit to the appropriate congressional 
committees a report containing the following:
            (1) A list of every country in which the United States 
        Government is aware that a United States person has an 
        outstanding expropriation claim.
            (2) The total number of such outstanding expropriation 
        claims made by United States persons against each such country.
            (3) The period of time in which each such claim has been 
        outstanding.
            (4) The status of each case and efforts made by the United 
        States Government and the government of the country in which 
        such claim has been made, to take one or more of the steps 
        described in section 527(a)(2) of the Foreign Relations 
        Authorization Act, Fiscal Years 1994 and 1995 (22 U.S.C. 
        2370a(a)(2)).
            (5) Each project a United States Executive Director voted 
        against as a result of the action described in section 527(b) 
        of the Foreign Relations Authorization Act, Fiscal Years 1994 
        and 1995 (22 U.S.C. 2370a(b)).
    (b) Definition.--For purposes of this section, the term ``United 
States person'' means a United States citizen or corporation, 
partnership, or association at least 50 percent beneficially owned by 
United States citizens.

                     CHAPTER 2--GENERAL PROVISIONS

SEC. 711. NATIONAL INTEREST, ECONOMIC FREEDOM, AND GRADUATION 
              REQUIREMENTS.

    (a) Policy.--It shall be United States assistance policy to 
recognize that--
            (1) no amount of foreign assistance can provide sustainable 
        development for the people of a country which is not committed 
        to free market principles and economic freedom; and
            (2) Congress and the American taxpayers have a right to 
        know how foreign assistance benefits United States national 
        interests, how it supports economic growth in recipient 
        countries, and when United States bilateral assistance to each 
        foreign assistance recipient will cease.
    (b) Inclusion in Congressional Presentation Documents.--The 
President shall include in the congressional presentation materials on 
United States bilateral assistance submitted to the appropriate 
congressional committees for a fiscal year the following information:
            (1) Justification of national interest.--The manner in 
        which programs, projects, or activities benefit the national 
        interests of the United States and the qualitative and 
        quantitative indicators for measuring these benefits.
            (2) Conditions supportive of economic growth.--Efforts 
        taken by countries receiving United States bilateral assistance 
        to limit the size of the State sector, including--
                    (A) an assessment of policies regarding wage and 
                price controls, State ownership of production and 
                distribution, and control of financial institutions;
                    (B) encouraging trade and foreign investment, 
                including an assessment of tariff levels, quotas, and 
                the opportunity to repatriate capital and profits; and
                    (C) protection of the private sector, including an 
                assessment of tax policies and rights of ownership and 
                property.
            (3) Progress toward graduation.--A determination on a 
        country-by-country basis estimating the year in which each 
        foreign country receiving assistance during the preceding 
        calendar year will graduate from United States bilateral 
        assistance. This determination shall include--
                    (A) the number of years the United States has 
                provided assistance to each country;
                    (B) the total amount of United States assistance 
                provided to each country, including all grants, loans, 
                credits, and guarantees; and
                    (C) the total amount of assistance provided to that 
                country from all multilateral organizations, including 
                all international financial institutions, the United 
                Nations, and other international organizations.
    (c) Definitions.--For purposes of this section, the term ``United 
States bilateral assistance'' includes--
                    (A) assistance provided under this Act; and
                    (B) assistance made available pursuant to section 
                23 of the Arms Export Control Act.
SEC. 712. TERMINATION OF ASSISTANCE.

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

``SEC. 617. TERMINATION OF ASSISTANCE.

    ``(a) In General.--(1) In order to ensure the effectiveness of 
assistance provided under this Act, funds made available under this Act 
to carry out any program, project, or activity of assistance shall 
remain available for obligation for a period not to exceed 8 months 
after the date of termination of such assistance for the necessary 
expenses of winding up such programs, projects, or activities and, 
notwithstanding any other provision of law, funds so obligated may 
remain available until expended.
    ``(2) Funds obligated to carry out any program, project, or 
activity of assistance before the effective date of the termination of 
such assistance are authorized to be available for expenditure for the 
necessary expenses of winding up such programs, projects, and 
activities, notwithstanding any provision of law restricting the 
expenditure of funds, and may be reobligated to meet any other 
necessary expenses arising from the termination of such assistance.
    ``(3) The necessary expenses of winding up programs, projects, and 
activities of assistance include the obligation and expenditure of 
funds to complete the training or studies outside their countries of 
origin of students whose course of study or training program began 
before assistance was terminated.
    ``(b) Liability to Contractors.--For the purpose of making an 
equitable settlement of termination claims under extraordinary 
contractual relief standards, the President is authorized to adopt as a 
contract or other obligation of the United States Government, and 
assume (in whole or in part) any liabilities arising thereunder, any 
contract with a United States or third-country contractor to carry out 
any program, project, or activity of assistance under this Act that was 
subsequently terminated pursuant to law.
    ``(c) Guarantee Programs.--Provisions of this or any other Act 
requiring the termination of assistance under this Act shall not be 
construed to require the termination of guarantee commitments that were 
entered into before the effective date of the termination of 
assistance.''.

SEC. 713. PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS ENGAGED IN 
              ESPIONAGE AGAINST THE UNITED STATES.

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

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

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

SEC. 714. FOREIGN STATE SUPPORT FOR ACTS OF INTERNATIONAL TERRORISM.

    Section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371) 
is amended--
            (1) by adding ``and'' at the end of subsection (c)(1)(B);
            (2) in subsection (c)(2)(A), by striking ``6-month period'' 
        and inserting ``one-year period'';
            (3) in subsection (d), in the text above paragraph (1), by 
        striking ``to a country'' and inserting ``to the people of a 
        country'';
            (4) in subsection (d)(1), by striking ``national security'' 
        and inserting ``vital national security'';
            (5) in subsection (d)(2)(B), by striking ``national 
        security'' and inserting ``vital national security''; and
            (6) by adding at the end the following new subsection:
    ``(e) Definition.--As used in this section, the phrases ``provided 
support for acts of international terrorism'' and ``provided any 
support for international terrorism'' mean--
            ``(1) to have knowingly assisted, supported, ordered, 
        planned, executed, or otherwise facilitated individual acts of 
        international terrorism;
            ``(2) to have knowingly provided or facilitated the 
        provision of assistance or support to a group or to members of 
        a group that have committed an act or acts of international 
        terrorism; or
            ``(3) to have knowingly provided safe haven or refuge 
        within any area under its direct or indirect control to a group 
        or to members of a group that have committed an act or acts of 
        international terrorism.''.

SEC. 715. RESTRICTION ON ASSISTANCE TO NUCLEAR PROLIFERATORS.

    (a) Policy.--It is the sense of the Congress that the President 
should instruct the United States Permanent Representative to the 
United Nations to enhance the role of that institution in the 
enforcement of nonproliferation treaties and global non-proliferation. 
It is further the sense of the Congress that the United States should 
pursue other bilateral and multilateral arrangements to regulate and, 
ultimately, to end the production of special nuclear material (as 
defined in section 11aa. of the Atomic Energy Act of 1954 (42 U.S.C. 
2014aa.)), subject to verification and enforcement by the International 
Atomic Energy Agency, and to impose sanctions on those states producing 
such material without the benefit of full-scope safeguards.
    (b) Prohibition.--Notwithstanding any other provision of law, no 
military assistance shall be made available under this or any other 
Act, and no military equipment, technology or services shall be sold, 
transferred, or licensed under the Arms Export Control Act, pursuant to 
the authorities contained in this Act or any other Act, to any non-
nuclear weapon state that is found by the President to be diverting 
unsafeguarded special nuclear material from a civilian to a military 
use.
    (c) Waiver.--The President may waive the application of subsection 
(b) for successive 180-day periods if he determines and so certifies to 
the appropriate congressional committees that--
            (1) the termination of such assistance would have a serious 
        adverse effect on vital United States interests; and
            (2) he has received reliable assurances that the country in 
        question will not acquire or develop nuclear weapons or assist 
        other nations in doing so.
Such certification shall set forth the reasons supporting such 
determination in each particular case.
    (d) Definition.--As used in this section, the term ``unsafeguarded 
special nuclear material'' means special nuclear material (as defined 
in section 11aa of the Atomic Energy Act of 1954 (42 U.S.C. 2014aa)) 
which is produced in violation of IAEA safeguards or is not subject to 
IAEA safeguards, and does not include any quantity of material that 
could, if it were exported from the United States, be exported under a 
general license by the Nuclear Regulatory Commission.

SEC. 716. PROHIBITION ON FOREIGN ASSISTANCE TO FOREIGN GOVERNMENTS NOT 
              IMPLEMENTING EXTRADITION TREATIES.

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

``SEC. 620L. PROHIBITION ON FOREIGN ASSISTANCE TO FOREIGN GOVERNMENTS 
              NOT IMPLEMENTING EXTRADITION TREATIES.

    ``(a) Prohibition.--The President may not provide foreign 
assistance to the government of a country that the President determines 
is not effectively implementing a treaty entered into by such country 
with the United States relating to the extradition of individuals who 
have been charged with or who have committed felony offenses.
    ``(b) Definitions.--As used in this section:
            ``(1) Felony offense.--The term `felony offense' means an 
        offense punishable by death or imprisonment for a term 
        exceeding 1 year.
            ``(2) Foreign assistance.--The term `foreign assistance' 
        means any funds made available to carry out any program, 
        project, or activity funded under major functional budget 
        category 150 (relating to international affairs).''.
    (b) Effective Date.--The prohibition contained in the amendment 
made by subsection (a) applies with respect to the provision of foreign 
or military assistance on or after the date of the enactment of this 
Act.

SEC. 717. IMPACT ON JOBS IN THE UNITED STATES.

    Section 636 of the Foreign Assistance Act of 1961 (22 U.S.C. 2396) 
is amended by adding at the end the following new subsection:
    ``(j)(1) Funds made available to carry out the provisions of this 
Act may not be made available to provide--
            ``(A) any financial incentive to a business enterprise 
        located in the United States for the purpose of inducing that 
        enterprise to relocate outside the United States if such 
        incentive or inducement is likely to reduce the number of 
        individuals employed in the United States by that enterprise 
        because that enterprise would replace production in the United 
        States with production outside the United States;
            ``(B) assistance for the purpose of establishing or 
        developing in a foreign country any export processing zone or 
        designated area in which the tax, tariff, labor, environment, 
        and safety laws of that country do not apply, in part or in 
        whole, to activities carried out within that zone or area, 
        unless the President determines and certifies that such 
        assistance is not likely to cause a loss of jobs within the 
        United States; or
            ``(C) subject to paragraph (2), assistance for any project 
        or activity that contributes to the violation of 
        internationally recognized workers rights (as defined in 
        section 502(a)(4) of the Trade Act of 1974) of workers in the 
        foreign country, including in any designated zone or area in 
        that country.
    ``(2) Paragraph (1) shall not apply with respect to the provision 
of assistance for microenterprises and small-scale enterprises, or for 
small-holder agriculture in the informal sector of the foreign 
country.''.

SEC. 718. NONAPPLICABILITY OF CARGO PREFERENCE REQUIREMENTS.

    Sections 901(b) and 901b of the Merchant Marine Act of 1936 shall 
not apply to the transportation of agricultural commodities as part of 
any United States Government-administered program of food assistance to 
foreign countries.
SEC. 719. PROHIBITION ON FOREIGN ASSISTANCE TO FOREIGN GOVERNMENTS 
              EMPLOYING MERCENARY FORCES.

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

``SEC. 620M. PROHIBITION ON FOREIGN ASSISTANCE TO FOREIGN GOVERNMENTS 
              EMPLOYING MERCENARY FORCES.

    ``(a) Reduction of Assistance.--The President should reduce United 
States foreign assistance to the government of any country that employs 
mercenary forces by an amount equal to the sum paid by that government 
to employ mercenary forces.
    ``(b) Definitions.--As used in this section:
            ``(1) Mercenary.--The term `mercenary' has the meaning 
        given such term in Protocol I Additional to the Geneva 
        Conventions of 1949 (1125 U.N.T.S. 3, adopted on June 8, 1977, 
        at Geneva), namely any person who--
                    ``(A) is specially recruited locally or abroad in 
                order to fight in an armed conflict;
                    ``(B) does, in fact, take a direct part in the 
                hostilities;
                    ``(C) is motivated to take part in the hostilities 
                essentially by the desire for private gain and, in 
                fact, is promised, by or on behalf of a party to the 
                conflict, material compensation substantially in excess 
                of that promised or paid to combatants of similar ranks 
                and functions in the armed forces of that party;
                    ``(D) is neither a national of a party to the 
                conflict nor a resident of the territory controlled by 
                a party to the conflict;
                    ``(E) is not a member of the armed forces of a 
                party to the conflict; and
                    ``(F) has not been sent by a state which is not a 
                party to the conflict on official duty as a member of 
                its armed forces.
            ``(2) Foreign assistance.--The term `foreign assistance' 
        means any funds made available to carry out any program, 
        project, or activity funded under major functional budget 
        category 150 (relating to international affairs).''.
    (b) Effective Date.--The prohibition contained in the amendment 
made by subsection (a) applies with respect to the provision of foreign 
assistance on or after the date of the enactment of this Act.
SEC. 720. TRANSPORTATION EXPENSES FOR DELIVERY OF HUMANITARIAN 
              ASSISTANCE.

    Chapter 3 of part III of the Foreign Assistance Act of 1961 is 
amended by inserting after section 667 (22 U.S.C. 2427) the following 
new section:

``SEC. 668. TRANSPORTATION EXPENSES FOR DELIVERY OF HUMANITARIAN 
              ASSISTANCE.

    ``(a) Authority.--The President is authorized to pay the expenses 
incurred in the transport of humanitarian assistance which has been 
privately donated in the United States to the independent states of the 
former Soviet Union, the Baltic states, and the independent states of 
the former Yugoslavia (excluding Serbia), with the consent of the 
relevant government.
    ``(b) Authorization of Appropriations.--(1) There are authorized to 
be appropriated to the President such sums as may be necessary to carry 
out this section.
    ``(2) Amounts appropriated pursuant to paragraph (1) are authorized 
to remain available until expended.
    ``(c) Definitions.--As used in this section:
            ``(1) Humanitarian assistance.--The term `humanitarian 
        assistance' includes the provision of food, medicine, medical 
        supplies, and clothing. The term does not include construction 
        equipment, including tractors, scrapers, loaders, graders, 
        bulldozers, dump trucks, generators, and compressors.
            ``(2) Independent states of the former soviet union.--The 
        term `independent states of the former Soviet Union' has the 
        same meaning given the term in section 3 of the FREEDOM Support 
        Act (22 U.S.C. 5801).''.
SEC. 721. PROHIBITION ON ASSISTANCE TO COUNTRIES BLOCKING OR 
              RESTRICTING HUMANITARIAN AID CORRIDORS.

    (a) Findings.--The Congress makes the following findings:
            (1) The United States Federal budget deficit and spending 
        constraints require the maximum efficiency in the usage of 
        United States foreign assistance.
            (2) The delivery of humanitarian assistance to people in 
        need is consistent with the fundamental values of our Nation 
        and is an important component of United States foreign policy.
            (3) As a matter of principle and in furtherance of fiscal 
        prudence, the United States should seek to promote the delivery 
        of humanitarian assistance to people in need in a manner that 
        is both timely and cost effective.
            (4) Recipients of United States assistance should not 
        hinder or delay the transport or delivery of United States 
        humanitarian assistance to other countries.
    (b) Limitation on Assistance to Countries That Restrict the 
Transport or Delivery of United States Humanitarian Assistance.--
            (1) Prohibition on assistance.--Notwithstanding any other 
        provision of law, funds appropriated or otherwise made 
        available for United States assistance may not be made 
        available for any country whose government prohibits or 
        otherwise restricts, directly or indirectly, the transport or 
        delivery of United States humanitarian assistance.
            (2) Waiver.--The prohibition on United States assistance 
        contained in paragraph (1) shall not apply if the President 
        determines and notifies Congress in writing that providing such 
        assistance to a country is in the national interest of the 
        United States.
            (3) Resumption of assistance.--A suspension or termination 
        of United States assistance for any country under paragraph (1) 
        shall cease to be effective when the President certifies in 
        writing to the Speaker of the House of Representatives and the 
        Committee on Foreign Relations of the Senate that such country 
        is no longer prohibiting or otherwise restricting, either 
        directly or indirectly, the transport or delivery of United 
        States humanitarian assistance.
    (c) Report.--
            (1) In general.--At the time of the annual budget 
        submission to Congress, the President shall submit a report to 
        Congress describing any information available to the President 
        concerning prohibitions or restrictions, direct or indirect, on 
        the transport or delivery of United States humanitarian 
        assistance by the government of any country receiving or 
        eligible to receive United States foreign assistance during the 
        current or preceding fiscal year.
            (2) Applicability of law.--The President shall include in 
        the report required by paragraph (1) a statement as to whether 
        the prohibition in subsection (b)(1) is being applied to each 
        country for which the President has information available to 
        him concerning prohibitions or restrictions, direct or 
        indirect, on the transport or delivery of United States 
        humanitarian assistance.
    (d) Definition.--As used in this section, the term ``United States 
assistance'' has the same meaning given that term in section 481(e)(4) 
of the Foreign Assistance Act of 1961.

                           CHAPTER 3--REPEALS

SEC. 731. REPEAL OF OBSOLETE PROVISIONS.

    (a) 1986 Assistance Act.--The Special Foreign Assistance Act of 
1986 (Public Law 99-529) is repealed except for section 1 and section 
204.
    (b) 1985 Assistance Act.--The International Security and 
Development Cooperation Act of 1985 (Public Law 99-83) is repealed 
except for section 1(a), section 131, section 132, section 504, section 
505, part B of title V (other than sections 558 and 559), section 1302, 
section 1303, and section 1304.
    (c) 1985 Jordan Supplemental Act.--The Jordan Supplemental Economic 
Assistance Authorization Act of 1985 (title IV of Public Law 99-88) is 
repealed.
    (d) 1985 African Famine Act.--The African Famine Relief and 
Recovery Act of 1985 (22 U.S.C. 2292q note) is repealed.
    (e) 1983 Assistance Act.--The International Security and 
Development Assistance Authorization Act of 1983 (as contained in 
section 101(b)(2) of Public Law 98-151) is repealed.
    (f) 1983 Lebanon Assistance Act.--The Lebanon Emergency Assistance 
Act of 1983 (Public Law 98-43) is repealed.
    (g) 1981 Assistance Act.--The International Security and 
Development Cooperation Act of 1981 (Public Law 97-113) is repealed 
except for section 1, section 709, and section 714.
    (h) Savings Provision.--Except as otherwise provided in this Act, 
the repeal by this Act of any provision of law that amended or repealed 
another provision of law does not affect in any way that amendment or 
repeal.

                       TITLE VIII--EFFECTIVE DATE

SEC. 801. EFFECTIVE DATE.

    Except as otherwise provided, this Act, and the amendments made by 
this Act, shall take effect on October 1, 1995.
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